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Derivative Instruments and Hedging Activities (Tables)
9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Financial Instruments
The following tables present the fair value of Customers' derivative financial instruments as well as their presentation on the balance sheet as of September 30, 2018 and December 31, 2017.
 
 
 
September 30, 2018
 
 
Derivative Assets
 
Derivative Liabilities
 
 
Balance Sheet
Location
 
Fair Value
 
Balance Sheet
Location
 
Fair Value
(amounts in thousands)
 
 
 
 
 
 
 
 
Derivatives designated as cash flow hedges:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Other assets
 
$
3,859

 
Other liabilities
 
$

Total
 
 
 
$
3,859

 
 
 
$

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Other assets
 
$
18,596

 
Other liabilities
 
$
15,653

Credit contracts
 
Other assets
 
36

 
Other liabilities
 
31

Residential mortgage loan commitments
 
Other assets
 
122

 
Other liabilities
 

Total
 
 
 
$
18,754

 
 
 
$
15,684

 
 
December 31, 2017
 
 
Derivative Assets
 
Derivative Liabilities
 
 
Balance Sheet
 
 
 
Balance Sheet
 
 
 
 
Location
 
Fair Value
 
Location
 
Fair Value
(amounts in thousands)
 
 
 
 
 
 
 
 
Derivatives designated as cash flow hedges:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Other assets
 
$
816

 
Other liabilities
 
$
1,140

Total
 
 
 
$
816

 
 
 
$
1,140

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Other assets
 
$
8,776

 
Other liabilities
 
$
8,897

Credit contracts
 
Other assets
 
100

 
Other liabilities
 
37

Residential mortgage loan commitments
 
Other assets
 
60

 
Other liabilities
 

Total
 
 
 
$
8,936

 
 
 
$
8,934

Effect of Derivative Financial Instruments on Comprehensive Income
The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three and nine months ended September 30, 2018 and 2017.
 
Three Months Ended September 30, 2018
 
Income Statement Location
 
Amount of Income (Loss)
Recognized in Earnings
(amounts in thousands)
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Interest rate swaps
Other non-interest income
 
$
1,139

Credit contracts
Other non-interest income
 
156

Residential mortgage loan commitments
Mortgage banking income
 
(11
)
Total
 
 
$
1,284

 
Three Months Ended September 30, 2017
 
Income Statement Location
 
Amount of Income (Loss)
Recognized in Earnings
(amounts in thousands)
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Interest rate swaps
Other non-interest income
 
$
91

Credit contracts
Other non-interest income
 
(6
)
Residential mortgage loan commitments
Mortgage banking income
 
1

Total
 
 
$
86

 
Nine Months Ended September 30, 2018
 
Income Statement Location
 
Amount of Income
Recognized in Earnings
(amounts in thousands)
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Interest rate swaps
Other non-interest income
 
$
1,472

Credit contracts
Other non-interest income
 
119

Residential mortgage loan commitments
Mortgage banking income
 
62

Total
 
 
$
1,653

 
 
 
 
 
Nine Months Ended September 30, 2017
 
Income Statement Location
 
Amount of Income (Loss)
Recognized in Earnings
(amounts in thousands)
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Interest rate swaps
Other non-interest income
 
$
429

Credit contracts
Other non-interest income
 
(5
)
Residential mortgage loan commitments
Mortgage banking income
 
58

Total
 
 
$
482

 
 
 
 

 
Three Months Ended September 30, 2018
 
Amount of Gain (Loss)
Recognized in OCI on
Derivatives (1)
 
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income 
 
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income 
(amounts in thousands)
 
 
 
 
 
Derivatives in cash flow hedging relationships:
 
 
 
 
 
Interest rate swaps
$
3,006

 
Interest expense
 
$
(303
)



 
Other non-interest income (2)
 
2,822

Total


 
 
 
$
2,519

 
Three Months Ended September 30, 2017
 
Amount of Gain (Loss)
Recognized in OCI on
Derivatives (1)
 
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income 
 
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income 
(amounts in thousands)
 
 
 
 
 
Derivatives in cash flow hedging relationships:
 
 
 
 
 
Interest rate swaps
$
104

 
Interest expense
 
$
(572
)
 
Nine Months Ended September 30, 2018
 
Amount of Gain (Loss)
Recognized in OCI on
Derivatives (1)
 
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
 
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
(amounts in thousands)
 
 
 
 
 
Derivative in cash flow hedging relationships:
 
 
 
 
 
Interest rate swaps
$
5,055

 
Interest expense
 
$
(175
)



 
Other non-interest income (2)
 
2,822

Total


 
 
 
$
2,647

 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
Amount of Gain (Loss)
Recognized in OCI on
Derivatives (1)
 
Location of Gain (Loss)
Reclassified from
Accumulated OCI into
Income
 
Amount of Gain (Loss)
Reclassified from
Accumulated OCI into
Income 
(amounts in thousands)
 
 
 
 
 
Derivative in cash flow hedging relationships:
 
 
 
 
 
Interest rate swaps
$
(115
)
 
Interest expense
 
$
(2,166
)
 
 
 
 
 
 

(1) Amounts presented are net of taxes. See NOTE 4 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges for the periods presented.
Summary of Offsetting of Financial Assets and Derivative Assets
Offsetting of Financial Assets and Derivative Assets
At December 31, 2017
 
Gross
Amount of
Recognized
Assets
 
Gross
Amounts
Offset in the
Consolidated
Balance
Sheet
 
Net
Amounts of
Assets
Presented
in the
Consolidated
Balance
Sheet
 
Gross Amounts
Not Offset in the
Consolidated
Balance Sheet
 
Net
Amount
 
Financial
Instruments
 
Cash
Collateral
Received
 
(amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
Description
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap derivatives with institutional counterparties
$
5,930

 
$

 
$
5,930

 
$

 
$
5,070

 
$
860

Offsetting of Financial Assets and Derivative Assets
At September 30, 2018
 
Gross
Amount of
Recognized
Assets
 
Gross
Amounts
Offset in the
Consolidated
Balance
Sheet
 
Net
Amounts of
Assets
Presented
in the
Consolidated
Balance
Sheet
 
Gross Amounts
Not Offset in the
Consolidated
Balance Sheet
 
Net
Amount
 
Financial
Instruments
 
Cash
Collateral
Received
 
(amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
Description
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap derivatives with institutional counterparties
$
20,688

 
$

 
$
20,688

 
$

 
$
19,330

 
$
1,358

Summary of Offsetting of Financial Liabilities and Derivative Liabilities
Offsetting of Financial Liabilities and Derivative Liabilities
At December 31, 2017
 
Gross
Amount of
Recognized
Liabilities
 
Gross
Amounts
Offset in the
Consolidated
Balance
Sheet
 
Net
Amounts of
Liabilities
Presented
in the
Consolidated
Balance
Sheet
 
Gross Amounts
Not Offset in the
Consolidated
Balance Sheet
 
Net
Amount
 
Financial
Instruments
 
Cash
Collateral
Pledged
 
(amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
Description
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap derivatives with institutional counterparties
$
5,058

 
$

 
$
5,058

 
$

 
$
4,872

 
$
186

Offsetting of Financial Liabilities and Derivative Liabilities
At September 30, 2018
 
Gross
Amount of
Recognized
Liabilities
 
Gross
Amounts
Offset in the
Consolidated
Balance
Sheet
 
Net
Amounts of
Liabilities
Presented
in the
Consolidated
Balance
Sheet
 
Gross Amounts
Not Offset in the
Consolidated
Balance Sheet
 
 
 
Financial
Instruments
 
Cash
Collateral
Pledged
 
Net
Amount
(amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
Description
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap derivatives with institutional counterparties
$
1,924

 
$

 
$
1,924

 
$

 
$
2

 
$
1,922