v3.26.3
Derivative Instruments and Hedging Activities
 9 Months Ended
Sep. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities

NOTE 12 – Derivative Instruments and Hedging Activities

We manage the interest rate risk associated with our derivative transactions with customers by entering into offsetting positions with other derivative dealers, resulting in a substantially “matched book” portfolio. These interest rate contracts are not designated as hedging instruments for accounting purposes. Credit risk associated with its derivative transactions is managed through a variety of measures, including initial and ongoing periodic underwriting of its counterparties’ creditworthiness, establishment of customer credit limits, and collateral maintenance requirements for customer exposures that exceed certain preset thresholds.

Our policy is not to offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value executed with the same counterparty under master netting arrangements.

The following tables provide the notional values and fair values of our derivative instruments as of September 30, 2026 and December 31, 2025 (in thousands):

 

 

September 30, 2026

 

 

 

Derivative Assets

 

 

Derivative Liabilities

 

 

Notional value

 

Interest rate contracts

 

$

99,373

 

 

$

99,379

 

 

 

1,649,003

 

 

 

 

December 31, 2025

 

 

 

Derivative Assets

 

 

Derivative Liabilities

 

 

Notional value

 

Interest rate contracts

 

$

71,297

 

 

$

71,311

 

 

$

2,186,352

 

The scheduled maturities of our derivative instruments as of September 30, 2026, are as follows (in thousands):

Within one year

 

$

276,762

 

One to three years

 

 

444,194

 

Three to five years

 

 

490,511

 

Five to ten years

 

 

397,625

 

Ten to fifteen years

 

 

31,911

 

Fifteen years and thereafter

 

 

8,000

 

Total notional value

 

$

1,649,003

 

The following table presents the distribution of customer interest rate derivative transactions, by derivative product, as of September 30, 2026 and December 31, 2025 (in thousands):

 

 

September 30,
2026

 

 

December 31,
2025

 

Swaps

 

$

1,566,503

 

 

$

1,853,852

 

Written options

 

 

82,500

 

 

 

332,500

 

Total notional value

 

$

1,649,003

 

 

$

2,186,352