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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company has entered into certain interest rate swap contracts that are not designated as hedging instruments. The following table presents the notional amounts and estimated fair values of interest rate derivative contracts outstanding at September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
Notional AmountsEstimated Fair ValueNotional AmountsEstimated Fair Value
(In thousands)
Non-hedging interest rate derivatives
Interest rate swap asset (1)
$296,709 $30,024 $221,436 $8,318 
Interest rate swap liability (1)
296,709 (30,460)221,436 (8,318)
 (1) The estimated fair value of derivatives with customers was $30.0 million and $8.1 million as of September 30, 2020 and December 31, 2019, respectively. The estimated fair value of derivatives with third parties was $(30.5) million and $(8.1) million as of September 30, 2020 and December 31, 2019, respectively.
The gains and losses due to changes in fair values on the Company's interest rate derivatives, including credit valuation adjustments to appropriately reflect nonperformance risk in the fair value measurement, are included in Other income on the Condensed Consolidated Statements of Income. Generally, the gains and losses of the interest rate derivatives offset due to the back-to-back nature of the contracts. However, as of September 30, 2020, the settlement values of the Bank's net derivative assets decreased due to the recognition of a credit valuation adjustment of $436,000 during both the three and nine months ended September 30, 2020. A credit valuation adjustment was not recorded on the Bank's net derivative assets as of December 31, 2019. Various factors impact changes in the credit valuation adjustments over time, including changes in the risk ratings of the parties to the contracts, as well as changes in market rates and volatilities, which affect the total expected exposure of the derivative instruments.