v3.26.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Forward contracts are contracts for delayed delivery of loans or mortgage-backed securities in which the seller agrees to make delivery at a future date of a specified instrument, at a specified price or yield. Risks arise from the possible inability of the Company to compile a portfolio of loans and from movements in interest rates. These contracts are used primarily to reduce the exposure to interest rate fluctuations for loans in progress and in loan inventory held for sale to investors. Most forward contracts are for terms of 30 days to 90 days. The Company had outstanding forward contracts of approximately $134.8 million and $184.6 million at March 31, 2026 and December 31, 2025, respectively. Forward commitments represent forward contracts, closed held for sale loans with a committed investor, and pair-off contracts.
Interest rate lock commitments, which are included in the commitments to extend credit in other assets and other liabilities in the consolidated balance sheets with the income offset recorded to gain on sale of loans, net in the consolidated statements of income, represent commitments to lend to customers at predetermined interest rates.
The following table presents the recorded gain/(loss) on derivative financial instruments at period end (dollars in thousands):
March 31, 2026December 31, 2025
Interest rate-lock commitments$3,941 $2,706 
Forward commitments2,030 (538)
The following tables provide details on the Company’s derivative financial instruments at March 31, 2026 and December 31, 2025 (dollars in thousands):
March 31, 2026
Notional AmountAssetLiability
Interest rate-lock commitments$201,148 $4,109 $168 
Forward commitments373,072 2,227 197 
Total$574,220 $6,336 $365 
December 31, 2025
Notional AmountAssetLiability
Interest rate-lock commitments$144,154 $2,712 $6 
Forward commitments231,015 52 590 
Total$375,169 $2,764 $596 
There was no counterparty collateral asset balance as of March 31, 2026. As of December 31, 2025, the counterparty collateral asset balance was $42,000 and was included in other assets in the consolidated balance sheets. As of March 31, 2026, the counterparty collateral liability balance was $901,000 and was included in other liabilities in the consolidated balance sheets. There was no counterparty collateral liability balance as of December 31, 2025.