Derivative Financial Instruments

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative financial instruments

8. Derivative Financial Instruments

Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates related to originations. Derivative instruments utilized by the Company primarily include interest rate lock commitments (“IRLCs”), loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”) purchase commitments, Eurodollar and Treasury futures and interest rate swap agreements.

The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments:

		September 30, 2020				Nine Months Ended September 30, 2020
Derivative Financial Instruments	Expiration Dates	Outstanding Notional		Fair Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments	2020	$	1,908	$	75	$	43
Derivative financial instruments
IRLCs	2020-2021	10,967		414		279
LPCs	2020	5,217		38		26
Forward MBS trades	2020-2021	11,452		23		17
Total derivative financial instruments - assets		$	27,636	$	475	$	322
Liabilities
Derivative financial instruments
IRLCs	2020	$	2	$	—	$	—
LPCs	2020	598		2		(1)
Forward MBS trades	2020-2021	15,974		42		30
Total derivative financial instruments - liabilities		$	16,574	$	44	$	29

		September 30, 2019				Nine Months Ended September 30, 2019
Derivative Financial Instruments	Expiration Dates	Outstanding Notional		Fair Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments	2019	$	1,508	$	35	$	9
Derivative financial instruments
IRLCs	2019	4,964		144		84
LPCs	2019	1,397		18		17
Forward MBS trades	2019	3,054		8		6
Eurodollar futures	2019-2021	6		—		—
Total derivative financial instruments - assets		$	9,421	$	170	$	107
Liabilities
Derivative financial instruments
IRLCs	2019	$	15	$	—	$	—
LPCs	2019	547		3		3
Forward MBS trades	2019	5,667		16		(8)
Eurodollar futures	2019-2021	8		—		—
Total derivative financial instruments - liabilities		$	6,237	$	19	$	(5)

Associated with the Company’s derivatives are $14 and $6 in collateral deposits on derivative instruments recorded in other assets in the Company’s consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively. The Company does not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the consolidated balance sheets.