Derivatives (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Derivatives |
|
| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated statements of financial condition as of June 30, 2026 and December 31, 2025. Information about the valuation methods used to measure fair value is provided in note 17. | | | | | | | | | | | | | | | | | | | | | Asset derivatives fair value | | | | Liability derivatives fair value | | | Balance Sheet | | June 30, | | December 31, | | Balance Sheet | | June 30, | | December 31, | | | location | | 2026 | | 2025 | | location | | 2026 | | 2025 | Derivatives designated as hedging instruments: | | | | | | | | | | | | | | | | | Interest rate products | | Other assets | | $ | 24,473 | | $ | 21,929 | | Other liabilities | | $ | 862 | | $ | 1,866 | Total derivatives designated as hedging instruments | | | | $ | 24,473 | | $ | 21,929 | | | | $ | 862 | | $ | 1,866 | | | | | | | | | | | | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | | | | | | | | | | | Interest rate products | | Other assets | | $ | 5,825 | | $ | 7,221 | | Other liabilities | | $ | 5,833 | | $ | 7,227 | Interest rate lock commitments | | Other assets | | | 349 | | | 283 | | Other liabilities | | | 3 | | | 1 | Forward contracts | | Other assets | | | 3 | | | — | | Other liabilities | | | 69 | | | 87 | Total derivatives not designated as hedging instruments | | | | $ | 6,177 | | $ | 7,504 | | | | $ | 5,905 | | $ | 7,315 |
|
| Schedule of derivative instruments |
| | | | | | | | | | | | | | | | | | | | | Cumulative amount of fair value | | | | | | | | | hedging adjustment included in the | | | Carrying amount of hedged assets | | carrying amount of hedged assets(1) | Line item in the consolidated statements of financial | | June 30, | | December 31, | | June 30, | | December 31, | condition in which the hedged item is included | | 2026 | | 2025 | | 2026 | | 2025 | Loans receivable | | $ | 406,238 | | $ | 457,658 | | $ | (23,179) | | $ | (18,812) |
| | | (1) | | Fair value hedge adjustments included basis adjustments on terminated positions to be amortized through the contractual maturity date of each respective hedged item. Excluding those terminated positions, the fair value hedge adjustments consisted of losses totaling $24.8 million and $20.7 million as of June 30, 2026 and December 31, 2025, respectively. |
|
| Derivative Instruments, Gain (Loss) |
The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three and six months ended June 30, 2026 and 2025: | | | | | | | | | | | | | | | | | Location of gain (loss) | | Amount of gain (loss) recognized in income on derivatives | | | recognized in income on | | For the three months ended June 30, | | For the six months ended June 30, | Derivatives in hedging relationships | | derivatives | | 2026 | | 2025 | | 2026 | | 2025 | Fair value hedging relationships - Interest rate products | | Interest and fees on loans | | $ | 3,733 | | $ | (1,264) | | $ | 5,620 | | $ | (6,107) | Cash flow hedging relationships - Interest rate products | | Interest and fees on loans | | | (77) | | | (366) | | | (197) | | | (721) | Total | | | | $ | 3,656 | | $ | (1,630) | | $ | 5,423 | | $ | (6,828) |
| | | | | | | | | | | | | | | | | Location of gain (loss) | | Amount of (loss) gain recognized in income on derivatives | | | recognized in income on | | For the three months ended June 30, | | For the six months ended June 30, | Hedged items | | hedged items | | 2026 | | 2025 | | 2026 | | 2025 | Interest rate products | | Interest and fees on loans | | $ | (3,108) | | $ | 2,759 | | $ | (4,366) | | $ | 9,084 |
| | | | | | | | | | | | | | | | | Location of gain (loss) | | Amount of gain (loss) recognized in income on derivatives | Derivatives not designated | | recognized in income on | | For the three months ended June 30, | | For the six months ended June 30, | as hedging instruments | | derivatives | | 2026 | | 2025 | | 2026 | | 2025 | Interest rate products | | Other non-interest expense | | $ | 128 | | $ | 1 | | $ | (3) | | $ | (1) | Interest rate lock commitments | | Mortgage banking income | | | (92) | | | (175) | | | 102 | | | 359 | Forward contracts | | Mortgage banking income | | | (241) | | | (164) | | | 21 | | | (342) | Total | | | | $ | (205) | | $ | (338) | | $ | 120 | | $ | 16 |
|
| Summary of effect of fair value cash flow hedge accounting on accumulated other comprehensive income |
The tables below present the effect of cash flow hedge accounting on AOCI as of the dates presented. | | | | | | | | | | | | | | | | | | | | | | | | For the three months ended June 30, 2026 | | | Loss recognized in OCI on derivatives | | Loss recognized in OCI included component | | Loss recognized in OCI excluded component | | | Location of loss recognized from AOCI into income | | Loss reclassified from AOCI into income | | Loss reclassified from AOCI into income included component | | Loss reclassified from AOCI into income excluded component | Derivatives in cash flow hedging relationships: | | | | | | | | | | | | | | | | | | | | | | Interest rate products | | $ | (43) | | $ | (5) | | $ | (38) | | | Interest income | | $ | (77) | | $ | — | | $ | (77) |
| | | | | | | | | | | | | | | | | | | | | | | | For the six months ended June 30, 2026 | | | Loss recognized in OCI on derivatives | | Loss recognized in OCI included component | | Gain recognized in OCI excluded component | | | Location of loss recognized from AOCI into income | | Loss reclassified from AOCI into income | | Loss reclassified from AOCI into income included component | | Loss reclassified from AOCI into income excluded component | Derivatives in cash flow hedging relationships: | | | | | | | | | | | | | | | | | | | | | | Interest rate products | | $ | (65) | | $ | (87) | | $ | 22 | | | Interest income | | $ | (197) | | $ | (29) | | $ | (168) |
| | | | | | | | | | | | | | | | | | | | | | | | For the three months ended June 30, 2025 | | | Loss recognized in OCI on derivatives | | Loss recognized in OCI included component | | Loss recognized in OCI excluded component | | | Location of loss recognized from AOCI into income | | Loss reclassified from AOCI into income | | Loss reclassified from AOCI into income included component | | Loss reclassified from AOCI into income excluded component | Derivatives in cash flow hedging relationships: | | | | | | | | | | | | | | | | | | | | | | Interest rate products | | $ | (65) | | $ | (51) | | $ | (14) | | | Interest income | | $ | (366) | | $ | (248) | | $ | (118) |
| | | | | | | | | | | | | | | | | | | | | | | | For the six months ended June 30, 2025 | | | Loss recognized in OCI on derivatives | | Loss recognized in OCI included component | | Loss recognized in OCI excluded component | | | Location of loss recognized from AOCI into income | | Loss reclassified from AOCI into income | | Loss reclassified from AOCI into income included component | | Loss reclassified from AOCI into income excluded component | Derivatives in cash flow hedging relationships: | | | | | | | | | | | | | | | | | | | | | | Interest rate products | | $ | (46) | | $ | (36) | | $ | (10) | | | Interest income | | $ | (721) | | $ | (487) | | $ | (234) |
|