|
DERIVATIVE FINANCIAL INSTRUMENTS AND BALANCE SHEET OFFSETTING (Tables)
|
9 Months Ended |
|
Sep. 30, 2013
|
| DERIVATIVE FINANCIAL INSTRUMENTS AND BALANCE SHEET OFFSETTING |
|
| Fair values of derivative instruments |
|
|
|
Fair Values of Derivative Instruments |
|
|
|
|
September 30, 2013 |
|
December 31, 2012 |
|
|
|
|
Notional
Amount |
|
Derivative
Assets (1) |
|
Derivative
Liabilities (1) |
|
Notional
Amount |
|
Derivative
Assets (1) |
|
Derivative
Liabilities (1) |
|
|
|
|
(In thousands) |
|
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps on certificates of deposit—fair value |
|
$ |
105,000 |
|
$ |
— |
|
$ |
8,312 |
|
$ |
50,000 |
|
$ |
— |
|
$ |
1,521 |
|
|
Total derivatives designated as hedging instruments |
|
$ |
105,000 |
|
$ |
— |
|
$ |
8,312 |
|
$ |
50,000 |
|
$ |
— |
|
$ |
1,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange options |
|
$ |
85,614 |
|
$ |
5,955 |
|
$ |
3,511 |
|
$ |
85,614 |
|
$ |
5,011 |
|
$ |
3,052 |
|
|
Interest rate swaps |
|
1,496,204 |
|
25,931 |
|
24,675 |
|
1,190,793 |
|
36,943 |
|
36,799 |
|
|
Short-term foreign exchange contracts |
|
291,876 |
|
4,068 |
|
2,054 |
|
112,459 |
|
896 |
|
688 |
|
|
Total derivatives not designated as hedging instruments |
|
$ |
1,873,694 |
|
$ |
35,954 |
|
$ |
30,240 |
|
$ |
1,388,866 |
|
$ |
42,850 |
|
$ |
40,539 |
|
(1) Derivative assets, which are a component of other assets, include the estimated settlement of the derivative asset position. Derivative liabilities, which are a component of other liabilities and deposits, include the estimated settlement of the derivative liability position.
|
| Gains (losses) on derivative instruments |
|
|
|
Location in |
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
Condensed Consolidated |
|
September 30, |
|
September 30, |
|
|
|
|
Statements of Income |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
(In thousands) |
|
|
Derivatives designated as hedging instruments |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps on certificates of deposit—fair value |
|
Interest expense |
|
$ |
(1,481 |
) |
$ |
(741 |
) |
$ |
(6,196 |
) |
$ |
(399 |
) |
|
|
|
Total net (expense) income |
|
$ |
(1,481 |
) |
$ |
(741 |
) |
$ |
(6,196 |
) |
$ |
(399 |
) |
|
Derivatives not designated as hedging instruments |
|
|
|
|
|
|
|
|
|
|
|
|
Equity swap agreements |
|
Noninterest expense |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
2 |
|
|
Foreign exchange options |
|
Noninterest income |
|
234 |
|
(28 |
) |
472 |
|
83 |
|
|
Foreign exchange options |
|
Noninterest expense |
|
7 |
|
16 |
|
13 |
|
90 |
|
|
Interest rate swaps |
|
Noninterest income |
|
(968 |
) |
296 |
|
1,112 |
|
(12 |
) |
|
Short-term foreign exchange contracts |
|
Noninterest income |
|
2,568 |
|
(20 |
) |
1,806 |
|
131 |
|
|
|
|
Total net income (expense) |
|
$ |
1,841 |
|
$ |
264 |
|
$ |
3,403 |
|
$ |
294 |
|
|
| Schedule of gross derivatives, resale agreements, repurchase agreements and the respective collateral received or pledged in the form of other financial instruments, which are generally marketable securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2013 |
|
|
|
|
(In thousands) |
|
|
|
|
|
|
Gross Amounts Offset in
the Condensed |
|
Net Amounts of Assets |
|
Gross Amounts Not Offset in the
Condensed Consolidated Balance
Sheets |
|
|
|
|
|
|
Gross Amounts of
Recognized Assets |
|
Consolidated
Balance Sheets |
|
Presented in the Condensed
Consolidated Balance Sheets |
|
Financial
Instruments |
|
Collateral
Received |
|
Net
Amount |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
$ |
8,224 |
|
$ |
— |
|
$ |
8,224 |
|
$ |
(5,363 |
) |
$ |
(2,861 |
) |
$ |
— |
|
|
Resale Agreements |
|
$ |
1,400,000 |
|
$ |
— |
|
$ |
1,400,000 |
|
$ |
(545,000 |
) |
$ |
(855,000 |
) |
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Amounts of |
|
Gross Amounts Offset in
the Condensed |
|
Net Amounts of Liabilities |
|
Gross Amounts Not Offset in the
Condensed Consolidated Balance
Sheets |
|
|
|
|
|
|
Recognized
Liabilities |
|
Consolidated
Balance Sheets |
|
Presented in the Condensed
Consolidated Balance Sheets |
|
Financial
Instruments |
|
Collateral
Posted |
|
Net
Amount |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
$ |
29,722 |
|
$ |
— |
|
$ |
29,722 |
|
$ |
(5,363 |
) |
$ |
(24,359) |
|
$ |
— |
|
|
Repurchase Agreements |
|
$ |
995,000 |
|
$ |
— |
|
$ |
995,000 |
|
$ |
(545,000 |
) |
$ |
(450,000 |
) |
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012 |
|
|
|
|
(In thousands) |
|
|
|
|
|
|
Gross Amounts Offset in
the Condensed |
|
Net Amounts of Assets |
|
Gross Amounts Not Offset in the
Condensed Consolidated Balance
Sheets |
|
|
|
|
|
|
Gross Amounts of
Recognized Assets |
|
Consolidated
Balance Sheets |
|
Presented in the Condensed
Consolidated Balance Sheets |
|
Financial
Instruments |
|
Collateral
Received |
|
Net
Amount |
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
$ |
992 |
|
$ |
— |
|
$ |
992 |
|
$ |
(366 |
) |
$ |
(626 |
) |
$ |
— |
|
|
Resale Agreements |
|
$ |
1,750,000 |
|
$ |
— |
|
$ |
1,750,000 |
|
$ |
(545,000 |
) |
$ |
(1,205,000 |
) |
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Amounts of |
|
Gross Amounts Offset in
the Condensed |
|
Net Amounts of Liabilities |
|
Gross Amounts Not Offset in the
Condensed Consolidated Balance
Sheets |
|
|
|
|
|
|
Recognized
Liabilities |
|
Consolidated
Balance Sheets |
|
Presented in the Condensed
Consolidated Balance Sheets |
|
Financial
Instruments |
|
Collateral
Posted |
|
Net
Amount |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives |
|
$ |
38,513 |
|
$ |
— |
|
$ |
38,513 |
|
$ |
(366 |
) |
$ |
(38,147 |
) |
$ |
— |
|
|
Repurchase Agreements |
|
$ |
995,000 |
|
$ |
— |
|
$ |
995,000 |
|
$ |
(545,000 |
) |
$ |
(450,000 |
) |
$ |
— |
|
|