Derivatives

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

DERIVATIVES

The Company enters into interest rate lock commitments (“IRLCs”) to originate residential mortgage loans at specified interest rates and terms within a specified period of time with customers who have applied for a loan and may meet certain credit and underwriting criteria. To determine the fair value of the IRLCs, each contract is evaluated based upon its stage in the application, approval and origination process for its likelihood of consummating the transaction (or “pullthrough”). Pullthrough is estimated based on changes in market conditions, loan stage, and actual borrower behavior using a historical analysis of IRLC closing rates. Generally, the further into the process the more likely that the IRLC will convert to a loan. The blended average pullthrough rate was 77% and 80% as of June 30, 2025 and December 31, 2024, respectively. The Company primarily uses forward loan sale commitments (“FLSCs”) to economically hedge its pipeline of IRLCs and mortgage loans at fair value.

From time to time, the Company enters into other interest rate derivatives as part of its overall interest rate risk mitigation strategy. These other derivative financial instruments are measured at estimated fair value with changes in fair value recorded in the condensed consolidated statements of operations within the "Gain on other interest rate derivatives" line item in the "Other gains (losses)" section. There were no interest rate swap futures contracts outstanding as of June 30, 2025 or December 31, 2024.

The notional amounts and fair values of derivative financial instruments not designated as hedging instruments were as follows (in thousands):

	June 30, 2025							December 31, 2024
	Fair value							Fair value
	Derivative assets		Derivative liabilities		Notional Amount			Derivative assets		Derivative liabilities		Notional Amount
IRLCs	$	54,747	$	1,562	$	9,568,158	(a)	$	6,729	$	33,685	$	7,669,392	(a)
FLSCs	4,609		75,121		14,038,250			93,235		2,280		14,842,453
Total	$	59,356	$	76,683				$	99,964	$	35,965

(a)Notional amounts have been adjusted for pullthrough rates of 77% and 80% as of June 30, 2025 and December 31, 2024, respectively.