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Derivatives
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company utilizes derivative financial instruments as part of its ongoing efforts to manage its interest rate risk exposure as well as interest rate exposure for its customers. Derivative financial instruments are included in the consolidated balance sheets line item other assets or other liabilities at fair value in accordance with ASC 815, “Derivatives and Hedging.” See Note 1, “Basis of presentation and summary of significant accounting policies,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for additional information on the Company’s accounting policies related to derivative instruments and hedging activities.
As of June 30, 2026 and December 31, 2025, the Company did not have any derivatives designated as fair value or cash flow hedges.
Derivatives not designated as hedging instruments
Derivatives not designated under hedge accounting rules include those that are entered into as either economic hedges as part of the Company’s overall risk management strategy or to facilitate client needs. Economic hedges are those that are not designated as a fair value or cash flow hedge for accounting purposes but are necessary to economically manage the risk exposure associated with the assets and liabilities of the Company.
The Company enters into derivative instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with customer contracts, the Company enters into an offsetting derivative contract. The Company manages its credit risk, or potential risk of default by its commercial customers through credit limit approval and monitoring procedures.
The Company enters into interest rate-lock commitments on residential loan commitments that will be held for resale. These are considered derivative instruments with no hedge accounting designation, and the interest rate exposure on these commitments is economically hedged primarily with forward contracts. Gains and losses arising from changes in the valuation of the interest rate-lock commitments are recognized currently in earnings and are reflected under the line-item mortgage banking income in the consolidated statements of income.
The Company also enters into forwards, futures and option contracts to economically hedge the change in fair value of mortgage servicing rights. Gains and losses associated with these instruments are included in earnings and are reflected under the line-item mortgage banking income in the consolidated statements of income.
The following tables provide details on the Company’s non-designated derivative financial instruments as of the dates presented:
June 30, 2026
Notional AmountAssetLiability
  Interest rate contracts$652,102 $19,841 $19,853 
  Forward commitments307,000 554 — 
  Interest rate-lock commitments103,853 1,847 — 
  Futures contracts179,700 1,202 — 
    Total$1,242,655 $23,444 $19,853 
December 31, 2025
Notional AmountAssetLiability
  Interest rate contracts$654,705 $23,020 $23,080 
  Forward commitments240,500 — 168 
  Interest rate-lock commitments86,586 1,296 — 
  Futures contracts185,000 — 261 
    Total$1,166,791 $24,316 $23,509 
(Losses) gains included in the consolidated statements of income related to the Company’s non-designated derivative financial instruments were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026 2025 2026 2025 
Included in mortgage banking income:
  Interest rate lock commitments$(61)$254 $551 $1,675 
  Forward commitments364 (114)582 (323)
  Futures contracts(824)(180)(1,038)2,131 
    Total$(521)$(40)$95 $3,483 
Netting of Derivative Instruments
Certain financial instruments, including derivatives, may be subject to master netting arrangements with counterparties. However, the Company does not offset derivative assets and liabilities on the consolidated balance sheets, as it has not established a legally enforceable right of offset.
The following table presents the Company’s gross derivative assets and liabilities recognized on the consolidated balance sheets and the potential effect of offsetting under master netting arrangements, including collateral pledged, for disclosure purposes only. Collateral is reflected only to the extent it would offset a derivative liability position.
Gross amounts not offset on the consolidated balance sheets
Gross amounts recognizedGross amounts offset on the consolidated balance sheetsNet amounts presented on the consolidated balance sheetsFinancial instrumentsFinancial collateral pledgedNet Amount
June 30, 2026
Derivative financial assets$18,614 $— $18,614 $1,268 $— $17,346 
Derivative financial liabilities$3,484 $— $3,484 $1,268 $2,216 $— 
December 31, 2025
Derivative financial assets$17,348 $— $17,348 $5,824 $— $11,524 
Derivative financial liabilities$7,696 $— $7,696 $5,824 $1,872 $— 
Collateral Requirements
Most derivative contracts are secured by collateral. Accordingly, pursuant to the interest rate agreements with derivative counterparties, the Company may be required to accept or post collateral with these derivative counterparties. As of June 30, 2026 and December 31, 2025, the Company had collateral posted of $31,829 and $30,675, respectively, against its obligations under these agreements. Cash pledged as collateral on derivative contracts is recorded in other assets on the consolidated balance sheets.