Mortgage Banking Derivatives

9 Months Ended

Sep. 30, 2025

Mortgage Banking [Abstract]

Mortgage Banking Derivatives

11. Mortgage Banking Derivatives

Commitments to fund certain mortgage loans (interest rate locks, or “IRLs”) to be sold into the secondary market and forward commitments (“Forwards”) for the future delivery of residential mortgage bonds are considered derivatives. The Company enters into Forwards for the future delivery of residential mortgage bonds when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge accounting relationships. Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. The net change in fair market value of IRLs are recorded in other non-interest income. The net change in fair market value and the cost to close Forwards are recorded as hedging activity in non-interest expenses.

The net gains (losses) relating to these free-standing derivative instruments used for risk management are summarized below:

		For nine months ended September 30,
	Revenue Classification	2025			2024
IRLs	Gain (Loss) on sale of mortgage loans	$	88		$	(39	)
Forwards	Hedging activity, net		(948	)		(581	)
Total		$	(860	)	$	(620	)

The following table reflects the amount and market value of mortgage banking derivatives included in the statements of financial condition:

	September 30, 2025					December 31, 2024
	Notional		Fair			Notional		Fair
	Amount		Value			Amount		Value
IRLs	$	14,445	$	451		$	15,085	$	363
Forwards		37,000		(104	)		28,500		76
Total	$	51,445	$	347		$	43,585	$	439