Derivatives And Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional amount and fair value for derivatives

The notional amounts and fair values for derivatives consist of the following.



	At March 31, 2017
	Notional amount		Fair value derivatives
(in thousands)			Asset		Liability

Forward sale commitments	$	1,958,542	$	4,287	$	(7,527	)
Interest rate swaptions	70,000		31		—
Interest rate lock and purchase loan commitments	821,240		27,154		(18		)
Interest rate swaps	1,730,700		11,615		(25,904		)
Eurodollar futures	256,000		5		(24		)
Total derivatives before netting	$	4,836,482	43,092		(33,473		)
Netting adjustment/Cash collateral ⁽¹⁾			18,461		29,943
Carrying value on consolidated statements of financial condition			$	61,553	$	(3,530	)



	At December 31, 2016
	Notional amount		Fair value derivatives
(in thousands)			Asset		Liability

Forward sale commitments	$	3,596,677	$	24,623	$	(15,203	)
Interest rate swaptions	20,000		1		—
Interest rate lock and purchase loan commitments	746,102		19,586		(367		)
Interest rate swaps	1,689,850		15,016		(26,829		)
Total derivatives before netting	$	6,052,629	59,226		(42,399		)
Netting adjustment/Cash collateral ⁽¹⁾			10,174		37,836
Carrying value on consolidated statements of financial condition			$	69,400	$	(4,563	)


(1)	Includes cash collateral of $48.4 million and $48.0 million at March 31, 2017 and December 31, 2016 respectively, as part of netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security.

Fair value, concentration of risk

The following tables present gross and net information about derivative instruments.



	At March 31, 2017
(in thousands)	Gross fair value			Netting adjustments/ Cash collateral⁽¹⁾		Carrying value			Securities not offset in consolidated balance sheet (disclosure-only netting)		Net amount

Derivative assets	$	43,092		$	18,461	$	61,553		$	—	$	61,553
Derivative liabilities	$	(33,473	)	$	29,943	$	(3,530	)	$	2,759	$	(771	)



	At December 31, 2016
(in thousands)	Gross fair value			Netting adjustments/ Cash collateral⁽¹⁾		Carrying value			Securities not offset in consolidated balance sheet (disclosure-only netting)		Net amount

Derivative assets	$	59,226		$	10,174	$	69,400		$	—	$	69,400
Derivative liabilities	$	(42,399	)	$	37,836	$	(4,563	)	$	1,820	$	(2,743	)


(1)	Includes cash collateral of $48.4 million and $48.0 million at March 31, 2017 and December 31, 2016 respectively, as part of the netting adjustments which primarily consists of collateral transferred by the Company at the initiation of derivative transactions and held by the counterparty as security.

Net gains (losses) recognized on economic hedge derivatives

The following table presents the net gain (loss) recognized on derivatives, including economic hedge derivatives, within the respective line items in the statement of operations for the periods indicated.



	Three Months Ended March 31,
(in thousands)	2017			2016

Recognized in noninterest income:
Net gain (loss) on mortgage loan origination and sale activities ⁽¹⁾	$	(1,499	)	$	(1,092	)
Mortgage servicing income ⁽²⁾	379			31,707
Other ⁽³⁾	—			—
	$	(1,120	)	$	30,615


(1)	Comprised of interest rate lock commitments ("IRLCs") and forward contracts used as an economic hedge of IRLCs and single family mortgage loans held for sale.


(2)	Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of single family MSRs.


(3)	Comprised of interest rate swaps, interest rate swaptions and forward contracts used as an economic hedge of fair value option loans held for investment.

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

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