XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.2
DERIVATIVE INSTRUMENTS
 6 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS
We use derivative instruments and other risk management techniques to reduce our exposure to adverse fluctuations in interest rates and foreign currency exchange rates in accordance with our risk management policies and to certain loan clients to allow them to hedge the risk of rising interest rates on their variable rate loans.
During the three and six months ended June 30, 2022, changes in fair value of interest rate swaps on loans and foreign exchange contracts were gains of $82 thousand and $185 thousand and were included in other income on the consolidated statements of operations. During the three and six months ended June 30, 2021, changes in fair value of interest rate swaps on loans and foreign exchange contracts were losses of $71 thousand and gains of $200 thousand.
The following table presents the notional amount and fair value of derivative instruments included in the consolidated statements of financial condition as of the dates indicated.
June 30, 2022December 31, 2021
($ in thousands)Notional Amount
Fair
Value(1)
Notional Amount
Fair
Value(1)
Derivative assets:
Interest rate swaps on loans$34,702 $1,074 $58,834 $3,390 
Foreign exchange contracts5,511 186 4,725 175 
Total$40,213 $1,260 $63,559 $3,565 
Derivative liabilities:
Interest rate swaps on loans$34,702 $1,082 $58,834 3,594 
Foreign exchange contracts5,511 168 4,725 146 
Total$40,213 $1,250 $63,559 $3,740 
(1)The fair value of interest rate swaps on loans and foreign exchange contracts are included in other assets and accrued expenses and other liabilities, respectively, in the accompanying consolidated statements of financial condition.
We have entered into agreements with counterparty financial institutions, which include master netting agreements that provide for the net settlement of all contracts with a single counterparty in the event of default. We elect, however, to account for all derivatives with counterparty institutions on a gross basis.