This chapter presents a real-world application of interest rate swaps in consumer mortgage portfolio hedging, as implemented by a credit union. Facing a liability-sensitive balance sheet, the credit union uses pay-fixed swaps to reduce asset duration and align it with liability duration, thereby stabilizing equity during interest rate fluctuations. The case details the operational and accounting benefits of using the “last-of-layer” method under updated accounting standards, showcasing how derivatives can be strategically employed for balance sheet stability in community financial institutions.