Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

NOTE 14 – 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 December 31, 2024 and 2023 (in thousands):

	December 31, 2024
	Derivative Assets		Derivative Liabilities		Notional value
Interest rate contracts	$	110,814	$	110,825	$	1,984,608

	December 31, 2023
	Derivative Assets		Derivative Liabilities		Notional value
Interest rate contracts	$	118,668	$	118,651	$	1,994,919

The scheduled maturities of our derivative instruments as of December 31, 2024, are as follows (in thousands):

Within one year	$	219,766
One to three years		876,090
Three to five years		478,716
Five to ten years		375,303
Ten to fifteen years		20,374
Fifteen years and thereafter		14,359
	$	1,984,608

The following table presents the distribution of customer interest rate derivative transactions, by derivative product, as of December 31, 2024 and 2023 (in thousands):

	December 31,
	2024		2023
Swaps	$	1,819,608	$	1,824,919
Written options		165,000		170,000
	$	1,984,608	$	1,994,919