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DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES: To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as single family mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges. The notional amounts and fair values for derivatives, all of which are economic hedges are included in other assets or accounts payable and other liabilities on the consolidated balance sheet, consist of the following:
| At September 30, 2024
| Notional amount |  | Fair value derivatives
(in thousands) |  |  | Asset |  | Liability
Forward sale commitments | $ | 139,676 |  |  | $ | 175 |  |  | $ | (338) |
Interest rate lock commitments | 49,009 |  |  | 655 |  |  | (59) |
Interest rate swaps | 224,940 |  |  | 7,925 |  |  | (7,928) |
Futures | 9,200 |  |  | — |  |  | (13) |
Options | 10,000 |  |  | 9 |  |  | — |
Total derivatives before netting | $ | 432,825 |  |  | $ | 8,764 |  |  | $ | (8,338) |
Netting adjustment/Cash collateral (1) |  |  | (7,579) |  |  | 393 |
Carrying value on consolidated balance sheet |  |  | $ | 1,185 |  |  | $ | (7,945) |
| At December 31, 2023
| Notional amount |  | Fair value derivatives
(in thousands) |  |  | Asset |  | Liability
Forward sale commitments | $ | 87,509 |  |  | $ | 151 |  |  | $ | (288) |
Interest rate lock commitments | 21,790 |  |  | 411 |  |  | — |
Interest rate swaps | 235,521 |  |  | 10,489 |  |  | (10,492) |
Futures | 12,200 |  |  | — |  |  | (3) |
Options | 9,300 |  |  | 132 |  |  | — |
Total derivatives before netting | $ | 366,320 |  |  | $ | 11,183 |  |  | $ | (10,783) |
Netting adjustment/Cash collateral (1) |  |  | (10,119) |  |  | 195 |
Carrying value on consolidated balance sheet |  |  | $ | 1,064 |  |  | $ | (10,588) |
(1) Includes net cash collateral received of $7.2 million and $9.9 million at September 30, 2024 and December 31, 2023, respectively. The following table presents gross fair value and net carrying value information for derivative instruments:
(in thousands) | Gross fair value |  | Netting adjustments/ Cash collateral (1) |  | Carrying value |  |  |  |
At September 30, 2024 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 8,764 |  |  | $ | (7,579) |  |  | $ | 1,185 |  |  |  |  |
Derivative liabilities | (8,338) |  |  | 393 |  |  | (7,945) |  |  |  |  |
At December 31, 2023 |  |  |  |  |  |  |  |  |
Derivative assets | $ | 11,183 |  |  | $ | (10,119) |  |  | $ | 1,064 |  |  |  |  |
Derivative liabilities | (10,783) |  |  | 195 |  |  | (10,588) |  |  |  |  |
(1) Includes net cash collateral received of $7.2 million and $9.9 million at September 30, 2024 and December 31, 2023, respectively. The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties are included in other assets. Payables related to cash collateral that has been received from counterparties are included in accounts payable and other liabilities. Interest is owed on amounts received from counterparties and we earn interest on cash paid to counterparties. Any securities pledged to counterparties as collateral remain on the consolidated balance sheets. At September 30, 2024 and December 31, 2023, the Company had liabilities of $7.4 million and $10.1 million, respectively, in cash collateral received from counterparties and receivables of $177 thousand and $218 thousand, respectively, in cash collateral paid to counterparties. The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Recognized in noninterest income: |  |  |  |  |  |  |
Net gain (loss) on loan origination and sale activities (1) | $ | (469) |  |  | $ | 513 |  |  | $ | (157) |  |  | $ | 780 |
Loan servicing income (loss) (2) | 330 |  |  | (247) |  |  | (395) |  |  | (1,475) |
Other (3) | (4) |  |  | 1 |  |  | (1) |  |  | — |
(1)Comprised of forward contracts used as an economic hedge of loans held for sale and interest rate lock commitments ("IRLCs") to customers. (2)Comprised of futures, US Treasury options and forward contracts used as economic hedges of single family MSRs. (3)Impact of interest rate swap agreements executed with commercial banking customers and broker dealer counterparties. The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, were $0.3 million for both quarters ended September 30, 2024 and 2023, and was $0.9 million and $1.1 million for the nine months ended September 30, 2024 and 2023, respectively. The notional amount of open interest rate swap agreements executed with commercial banking customers and broker dealer counterparties at September 30, 2024 and December 31, 2023 were $225 million and $236 million, respectively.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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