Derivatives and Hedging Activities (Tables)
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9 Months Ended |
Sep. 30, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Schedule of Derivative Instruments in Statement of Financial Position |
The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in other assets or other liabilities in the Consolidated Balance Sheets, as indicated in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2016 | | December 31, 2015 | | September 30, 2015 | | | | Fair Value | | | | Fair Value | | | | Fair Value | | Notional Amount | | Derivative Assets | | Derivative Liabilities | | Notional Amount | | Derivative Assets | | Derivative Liabilities | | Notional Amount | | Derivative Assets | | Derivative Liabilities | | (in thousands) | Derivatives designated as hedging instruments: | | | | | | | | | | | | | | | Fair value hedges | | | | | | | | | | | | | | | | | | Interest rate swaps | $ | 988,337 |
| | $ | 4,350 |
| | $ | 100,067 |
| | $ | 800,478 |
| | $ | 3,569 |
| | $ | 64,785 |
| | $ | 805,073 |
| | $ | 4,009 |
| | $ | 70,391 |
| Total | 988,337 |
| | 4,350 |
| | 100,067 |
| | 800,478 |
| | 3,569 |
| | 64,785 |
| | 805,073 |
| | 4,009 |
| | 70,391 |
| Netting adjustments (1) | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Net derivatives in the balance sheet | $ | 988,337 |
| | $ | 4,350 |
| | $ | 100,067 |
| | $ | 800,478 |
| | $ | 3,569 |
| | $ | 64,785 |
| | $ | 805,073 |
| | $ | 4,009 |
| | $ | 70,391 |
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| | (1) | Netting adjustments represent the amounts recorded to convert derivative balances from a gross basis to a net basis in accordance with the applicable accounting guidance. |
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Gain (Loss) on Derivative Instruments |
The following table summarizes the gains (losses) on fair value hedges for the three and nine months ended September 30, 2016 and 2015, all of which are recorded in other non-interest income. | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2016 | | 2015 | | 2016 | | 2015 | | (in thousands) | Hedge of Fixed Rate Loans (1) | | | | | | | | Gain (loss) on "pay fixed" swap | $ | 7,225 |
| | $ | (21,345 | ) | | $ | (35,087 | ) | | $ | (12,572 | ) | (Loss) gain on receive fixed rate loans | (7,206 | ) | | 21,382 |
| | 35,113 |
| | 12,629 |
| Net ineffectiveness | $ | 19 |
| | $ | 37 |
| | $ | 26 |
| | $ | 57 |
| Hedge of Fixed Rate Subordinated Debt Issuances (1) | | | | | | | | (Loss) gain on "receive fixed" swap | $ | (3,793 | ) | | $ | 3,812 |
| | $ | 395 |
| | $ | 4,009 |
| Gain (loss) on subordinated debt | 3,793 |
| | (3,812 | ) | | (395 | ) | | (4,009 | ) | Net ineffectiveness | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
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| | (1) | The fair value of derivatives contracts are carried as other assets and other liabilities in the Consolidated Balance Sheets. The effective portion of hedging gains (losses) is recorded as basis adjustments to the underlying hedged asset or liability. Gains and losses on both the hedging derivative and hedged item are recorded through non-interest income with a resulting net income impact for the amount of ineffectiveness. |
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Largest Exposure To Individual Counterparty |
The following table summarizes the Company's largest exposure to an individual counterparty at the dates indicated for derivatives in net asset positions: | | | | | | | | | | | | | | | | September 30, 2016 | | December 31, 2015 | | September 30, 2015 | | | (in thousands) | Largest gross exposure (derivative asset) to an individual counterparty | | $ | 4,159 |
| | $ | 3,569 |
| | $ | 4,009 |
| Collateral posted by this counterparty | | 4,131 |
| | 4,680 |
| | — |
| Derivative liability with this counterparty | | — |
| | — |
| | — |
| Collateral pledged to this counterparty | | — |
| | 1,340 |
| | — |
| Net exposure after netting adjustments and collateral | | $ | 28 |
| | $ | 229 |
| | $ | 4,009 |
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