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DERIVATIVES
 6 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
For additional information on the Company’s derivative instruments, see Note 1—“Organizations and Summary of Significant Accounting Policies”, Note 3—“Fair Value” and Note 6—“Derivatives” in the 2024 Form 10-K and Note 2—“Fair Value.”
The following table presents the notional amounts and fair values of the Company’s derivative instruments. While the notional amounts give an indication of the volume of the Company’s derivatives activity, the notional amounts significantly exceed, in the Company’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged, rather it is a reference amount used to calculate payments. As of June 30, 2024, there were no derivatives designated in hedge accounting relationships.
December 31, 2024
June 30, 2024
Fair ValueFair Value
(Dollars in thousands)Notional AmountDerivative AssetsDerivative LiabilitiesNotional AmountDerivative AssetsDerivative Liabilities
Derivatives designated as hedging instruments
Interest rate contracts$400,000 $7,428 $— $— $— $— 
Derivatives not designated as hedging instruments
Interest rate contracts1
2,593,540 8,935 83,957 2,435,874 106,796 102,949 
Total derivatives$2,993,540 $16,363 $83,957 $2,435,874 $106,796 $102,949 
1 Derivative assets are presented net of $78.0 million of variation margin on centrally-cleared derivatives as of December 31, 2024.
Derivatives designated as hedging instruments
The following table presents pre-tax gains/(losses) on derivative instruments used in cash flow hedge accounting relationships.
For the Three Months Ended December 31,
For the Six Months Ended December 31,
(Dollars in thousands)2024202320242023
Amounts recorded in OCI$8,073 $— $8,626 
Amounts reclassified from AOCI to income(1,478)— (1,478)
Total change in OCI for period$6,595 $— $7,148 $— 
The Company did not experience any forecasted transactions that failed to occur during the three and six months ended December 31, 2024 or 2023. There are no amounts excluded from the assessment of hedge effectiveness.
As of December 31, 2024, the Company expects that approximately $3.5 million of pre-tax net gain related to cash flow hedges recorded in AOCI will be recognized in income over the next 12 months. The maximum length of time over which forecasted transactions are hedged is approximately 2.7 years.
Derivatives not designated as hedging instruments
The following table presents the pre-tax gains/(losses) related to the Company’s derivative instrument activity recognized in the Condensed Consolidated Statements of Income:
For the Three Months Ended December 31,
For the Six Months Ended December 31,
(Dollars in thousands)
2024202320242023
Banking and service fees
$(185)$50 $(1,557)$390 
Mortgage banking and servicing rights income(134)231 (385)508