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Derivative Financial Instruments | 9 Months Ended
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Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments To manage, to varying degrees, risks associated with certain assets and liabilities on our consolidated balance sheets, we may enter into derivative contracts. We account for our derivative contracts, including loan purchase commitments ("LPCs") and interest rate lock commitments ("IRLCs") qualifying as derivatives under GAAP, at fair value. As discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, we consider counterparty risk as part of our fair value assessments of all derivative financial instruments at each quarter-end. At September 30, 2025, we assessed this risk as remote and did not record an associated specific valuation adjustment. At September 30, 2025, we were in compliance with our derivative counterparty ISDA agreements. The following table presents the fair value and notional amount of our derivatives at September 30, 2025 and December 31, 2024. Table 13.1 – Fair Value and Notional Amount of Derivatives
|  | September 30, 2025 |  | December 31, 2024
|  | Fair Value |  | Notional Amount |  | Fair Value |  | Notional Amount
(In Thousands) |  |  |  |
Assets - Risk Management Derivatives |  |  |  |  |  |  |  |
TBAs |  | $ | 25,583 |  |  | $ | 4,545,000 |  |  | $ | — |  |  | $ | — |
Interest rate futures |  | 2,573 |  |  | 589,500 |  |  | 16,446 |  |  | 712,500 |
Swaptions |  | 35,352 |  |  | 6,400,000 |  |  | 23,738 |  |  | 8,245,000 |
Assets - Other Derivatives |  |  |  |  |  |  |  |
LPCs and IRLCs |  | 34,440 |  |  | 2,761,105 |  |  | 5,819 |  |  | 919,888 |
Total Assets (1) |  | $ | 97,948 |  |  | $ | 14,295,605 |  |  | $ | 46,003 |  |  | $ | 9,877,388 |
Liabilities - Risk Management Derivatives |  |  |  |  |  |  |  |
TBAs |  | $ | (27,722) |  |  | $ | 6,365,000 |  |  | $ | (16,249) |  |  | $ | 1,350,000 |
Interest rate futures |  | (21,108) |  |  | 3,585,700 |  |  | (6,915) |  |  | 830,500 |
Liabilities - Other Derivatives |  |  |  |  |  |  |  |
LPCs |  | (8,217) |  |  | 1,271,788 |  |  | (496) |  |  | 157,985 |
Total Liabilities (1) |  | $ | (57,047) |  |  | $ | 11,222,488 |  |  | $ | (23,660) |  |  | $ | 2,338,485 |
Total Derivatives, Net (1) |  | $ | 40,901 |  |  | $ | 25,518,093 |  |  | $ | 22,343 |  |  | $ | 12,215,873 |
(1)For the purpose of this presentation, derivative assets and liabilities are presented on a gross and a net basis. The following table presents the market valuation gains and losses on our derivatives for the three and nine months ended September 30, 2025 and 2024. Table 13.2 – Market Valuation Gains (Losses) on Derivatives, net
|  | Three Months Ended September 30, 2025 |  | Three Months Ended September 30, 2024
(In Thousands) |  |
Risk Management Derivatives (1) |  | $ | (4,341) |  |  | $ | 27,419 |
LPCs and IRLCs (2) |  | 41,990 |  |  | 9,801 |
Market Valuation Gains (Losses) on Derivatives, net |  | $ | 37,649 |  |  | $ | 37,220 |
|  | Nine Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2024
(In Thousands) |  |
Risk Management Derivatives (1) |  | $ | 99,251 |  |  | $ | 27,556 |
LPCs and IRLCs (2) |  | 81,879 |  |  | 11,331 |
Market Valuation Gains on Derivatives, net |  | $ | 181,130 |  |  | $ | 38,887 |
(1)Market valuation (losses) gains on risk management derivatives used to manage the mark-to-market risks associated with our Mortgage Banking operations are recorded in Mortgage banking activities, net and market valuation gains (losses) on all other derivatives are recorded in Investment fair value changes, net on our consolidated statements of income. (2)Market valuation gains on LPCs and IRLCs are recorded in Mortgage banking activities, net on our consolidated statements of income. Derivatives Designated as Cash Flow Hedges For interest rate agreements previously designated as cash flow hedges, our total unrealized loss reported in Accumulated other comprehensive loss was $61 million and $64 million at September 30, 2025 and December 31, 2024, respectively. We are amortizing this loss into interest expense over the remaining term of our trust preferred securities and subordinated notes. For both of the three and nine months ended September 30, 2025 and 2024, we reclassified $1 million and $3 million, respectively, of realized net losses from Accumulated other comprehensive loss into Interest expense. As of September 30, 2025, we expect to amortize $4 million of realized losses related to terminated cash flow hedges into interest expense over the next twelve months.

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