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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Notional Amounts and Estimated Fair Values of Oil and Gas Derivative Positions Outstanding

The Company utilizes dealer quotations and observable market data inputs to substantiate internal valuation models. The notional amounts and estimated fair values of oil and gas derivative positions outstanding are presented in the following table:


				September 30, 2023								December 31, 2022
Oil and Natural Gas Swaps and Options		Notional Units		Notional Amount				Estimated Fair Value				Notional Amount				Estimated Fair Value
				(Notional amounts and dollars in thousands)
Oil
Derivative assets		Barrels			4,041			$	12,352				2,698			$	8,868
Derivative liabilities		Barrels			(4,041	)			(11,204	)			(2,698	)			(8,259	)

Gas/Natural Gas Liquids
Derivative assets		MMBTUs/Gallons			54,266				9,334				25,059				11,877
Derivative liabilities		MMBTUs/Gallons			(54,266	)			(8,354	)			(25,059	)			(11,424	)

Total Fair Value		Included in
Derivative assets		Other assets							21,686								20,745
Derivative liabilities		Other liabilities							(19,558	)							(19,683	)

Summary of Company's Recognized Income Related to Activity Included in Other Noninterest Income

The following table is a summary of the Company's recognized income related to the activity, which was included in other noninterest income:


		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
		(Dollars in thousands)								(Dollars in thousands)
Derivative income		$	115			$	118			$	464			$	406

Summary of Company's Net Credit Exposure Relating to Oil and Gas Swaps and Options with Bank Counterparties

The following table is a summary of the Company's net credit exposure relating to oil and gas swaps and options with bank counterparties:


		September 30, 2023				December 31, 2022
		(Dollars in thousands)
Credit exposure		$	—			$	6,560

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

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