Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

NOTE 14 – Derivative Instruments and Hedging Activities

We manage the interest rate risk associated with our derivative transactions with customers by entering into offsetting positions with other derivative dealers, resulting in a substantially “matched book” portfolio. Credit risk associated with its derivative transactions is managed through a variety of measures, including initial and ongoing periodic underwriting of its counterparties’ creditworthiness, establishment of customer credit limits, and collateral maintenance requirements for customer exposures that exceed certain preset thresholds.

Our policy is not to offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments recognized at fair value executed with the same counterparty under master netting arrangements.

The following tables provide the notional values and fair values of our derivative instruments as of December 31, 2023 and 2022 (in thousands):

	December 31, 2023
	Derivative Assets		Derivative Liabilities		Notional value
Interest rate contracts	$	118,668	$	118,651	$	1,994,919

	December 31, 2022
	Derivative Assets		Derivative Liabilities		Notional value
Interest rate contracts	$	142,042	$	142,028	$	1,395,135

The scheduled maturities of our derivative instruments as of December 31, 2023, are as follows (in thousands):

Within one year	$	59,925
One to three years		694,176
Three to five years		383,215
Five to ten years		747,395
Ten to fifteen years		91,136
Fifteen years and thereafter		19,072
	$	1,994,919

The following table presents the distribution of customer interest rate derivative transactions, by derivative product, as of December 31, 2023 and 2022 (in thousands):

	December 31,
	2023		2022
Swaps	$	1,824,919	$	1,375,135
Written options		170,000		20,000
	$	1,994,919	$	1,395,135