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Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Notional Amounts and Estimated Fair Values of Oil and Gas Derivative Positions Outstanding

The Company utilizes dealer quotations and observable market data inputs to substantiate internal valuation models. The notional amounts and estimated fair values of oil and gas derivative positions outstanding are presented in the following table:

 

 

 

 

 

December 31,

 

 

 

 

 

2021

 

 

2020

 

Oil and Natural Gas Swaps and Options

 

Notional Units

 

Notional
Amount

 

 

Estimated
Fair Value

 

 

Notional
Amount

 

 

Estimated
Fair Value

 

 

 

 

 

(Notional amounts and dollars in thousands)

 

Oil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets

 

Barrels

 

 

2,585

 

 

$

6,563

 

 

 

50

 

 

$

53

 

Derivative liabilities

 

Barrels

 

 

(2,585

)

 

 

(6,129

)

 

 

(50

)

 

 

(43

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets

 

MMBTUs

 

 

19,752

 

 

 

2,383

 

 

 

4,663

 

 

 

938

 

Derivative liabilities

 

MMBTUs

 

 

(19,752

)

 

 

(2,108

)

 

 

(4,663

)

 

 

(829

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fair Value

 

Included in

 

 

 

 

 

 

 

 

 

 

 

 

Derivative assets

 

Other assets

 

 

 

 

 

8,946

 

 

 

 

 

 

991

 

Derivative liabilities

 

Other liabilities

 

 

 

 

 

(8,237

)

 

 

 

 

 

(872

)

 

Summary of Company's Recognized Income Related to Activity Included in Other Noninterest Income

The following table is a summary of the Company’s recognized income related to the activity, which was included in other noninterest income:

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(Dollars in thousands)

 

Derivative income

 

$

266

 

 

$

50

 

 

$

3

 

 

Summary of Company's Net Credit Exposure Relating to Oil and Gas Swaps and Options with Bank Counterparties

The following table is a summary of the Company’s net credit exposure relating to oil and gas swaps and options with bank counterparties:

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

 

(Dollars in thousands)

 

Credit exposure

 

$

 

 

$

965