Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2025

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 March 31, 2025 and December 31, 2024 (in thousands):

	March 31, 2025
	Derivative Assets		Derivative Liabilities		Notional value
Interest rate contracts	$	91,048	$	91,061	$	2,050,846

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

The scheduled maturities of our derivative instruments as of March 31, 2025, are as follows (in thousands):

Within one year	$	519,519
One to three years		425,263
Three to five years		441,650
Five to ten years		601,220
Ten to fifteen years		47,369
Fifteen years and thereafter		15,825
	$	2,050,846

The following table presents the distribution of customer interest rate derivative transactions, by derivative product, as of March 31, 2025 and December 31, 2024 (in thousands):

	March 31, 2025		December 31, 2024
Swaps	$	1,760,846	$	1,819,608
Written options		290,000		165,000
	$	2,050,846	$	1,984,608