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DERIVATIVES AND HEDGING ACTIVITIES
 6 Months Ended
Jun. 30, 2025
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 June 30, 2025
Notional amountFair value derivatives
(in thousands) AssetLiability
Forward sale commitments$149,516 $426 $(657)
Interest rate lock commitments39,722 918 (2)
Interest rate swaps204,450 6,583 (6,583)
Total derivatives before netting$393,688 7,927 (7,242)
Netting adjustment/Cash collateral (1)
(6,932)230 
Carrying value on consolidated balance sheet$995 $(7,012)

At December 31, 2024
Notional amountFair value derivatives
(in thousands) AssetLiability
Forward sale commitments$87,912 $237 $(402)
Interest rate lock commitments16,757 175 (49)
Interest rate swaps222,917 10,250 (10,250)
Futures5,200 1 — 
Options5,800 3 — 
Total derivatives before netting$338,586 10,666 (10,701)
Netting adjustment/Cash collateral (1)
(10,388)219 
Carrying value on consolidated balance sheet$278 $(10,482)
(1)    Includes net cash collateral received of $6.7 million and $10.2 million at June 30, 2025 and December 31, 2024, 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 June 30, 2025
Derivative assets$7,927 $(6,932)$995 
Derivative liabilities(7,242)230 (7,012)
At December 31, 2024
Derivative assets$10,666 $(10,388)$278 
Derivative liabilities(10,701)219 (10,482)
(1)    Includes net cash collateral received of $6.7 million and $10.2 million at June 30, 2025 and December 31, 2024, 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 June 30, 2025 and December 31, 2024, the Company had liabilities of $6.9 million and $10.4 million, respectively, in cash collateral received from counterparties and receivables of $0.2 million and $0.2 million, 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 June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Recognized in noninterest income:
Net gain (loss) on loan origination and sale activities (1)
$285 $226 $346 $312 
Loan servicing income (loss) (2)
(272)(225)(81)(725)
Other (3)
— — — 3 
(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 $0.5 million and $0.3 million for quarters ended June 30, 2025 and 2024, respectively and were $0.9 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively.
The notional amount of open interest rate swap agreements executed with commercial banking customers and broker dealer counterparties at June 30, 2025 and December 31, 2024 were $204 million and $223 million, respectively.