DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Notional Amounts and Gross Fair Values of Derivative Assets and Derivative Liabilities

The following table presents notional amounts and gross fair values of our derivative assets and derivative liabilities:

	June 30, 2017						December 31, 2016
	Notional		Fair Value				Notional		Fair Value
(in thousands)	Amount		Asset		Liability		Amount		Asset		Liability
Gross Derivatives
Subject to master netting arrangements:
Interest rate contracts – designated	$	705,000	$	862	$	1,194	$	450,000	$	9,256	$	1,171
Interest rate swaps – not designated	2,014,278		472		13,758		1,689,157		12,720		34,046
Equity contracts – not designated	1,180		26		—		1,180		61		—
Total subject to master netting arrangements	2,720,458		1,360		14,952		2,140,337		22,037		35,217
Not subject to master netting arrangements:
Interest rate swaps – not designated	2,014,278		36,762		10,393		1,689,157		32,170		11,866
Interest rate lock commitments – not designated	187,375		5,437		14		—		—		—
Forward delivery commitments – not designated	206,853		574		357		—		—		—
Credit risk contracts – not designated	207,566		26		115		174,538		13		123
Equity contracts – not designated	1,180		—		26		1,180		—		61
Total not subject to master netting arrangements	2,617,252		42,799		10,905		1,864,875		32,183		12,050
Total	$	5,337,710	$	44,159	$	25,857	$	4,005,212	$	54,220	$	47,267

Summary of Amounts Reclassified from Accumulated Other Comprehensive Income (AOCI)

The following table shows amounts reclassified from accumulated other comprehensive income (AOCI) for the six months ended June 30, 2017:

(in thousands)	Total		Net of Tax
Reclassified from AOCI to interest income	$	900	$	585
Reclassified from AOCI to interest expense	652		424

Derivative Assets

The following table presents information about derivative assets and derivative liabilities that are subject to enforceable master netting arrangements as well as those not subject to enforceable master netting arrangements:

(in thousands)	Gross Amount		Gross Amounts Offset in the Balance Sheet	Net Amount Presented in the Balance Sheet
June 30, 2017
Derivative Assets
Subject to master netting arrangements:
Interest rate contracts
Designated	$	862	—	$	862
Not designated	472		—	472
Equity contracts – not designated	26		—	26
Not subject to master netting arrangements:
Interest rate contracts – not designated	36,762		—	36,762
Interest rate lock commitments – not designated	5,437		—	5,437
Forward delivery commitments – not designated	574		—	574
Credit risk contracts – not designated	26		—	26
Total derivative assets	$	44,159	—	$	44,159

December 31, 2016
Derivative Assets
Subject to master netting arrangements:
Interest rate contracts
Designated	$	9,256	—	$	9,256
Not designated	12,720		—	12,720
Equity contracts – not designated	61		—	61
Not subject to master netting arrangements:
Interest rate contracts – not designated	32,170		—	32,170
Credit contracts – not designated	13		—	13
Total derivative assets	$	54,220	—	$	54,220

Derivative Liabilities

The following table presents information about derivative assets and derivative liabilities that are subject to enforceable master netting arrangements as well as those not subject to enforceable master netting arrangements:

(in thousands)	Gross Amount		Gross Amounts Offset in the Balance Sheet	Net Amount Presented in the Balance Sheet
June 30, 2017
Derivative Liabilities
Subject to master netting arrangements:
Interest rate contracts
Designated	$	1,194	—	$	1,194
Not designated	13,758		—	13,758
Not subject to master netting arrangements:
Interest rate contracts – not designated	10,393		—	10,393
Interest rate lock commitments – not designated	14		—	14
Forward delivery commitments – not designated	357		—	357
Credit risk contracts – not designated	115		—	115
Equity contracts – not designated	26		—	26
Total derivative liabilities	$	25,857	—	$	25,857

December 31, 2016
Derivative Liabilities
Subject to master netting arrangements:
Interest rate contracts
Designated	$	1,171	—	$	1,171
Not designated	34,046		—	34,046
Not subject to master netting arrangements:
Interest rate contracts – not designated	11,866		—	11,866
Credit contracts – not designated	123		—	123
Equity contracts – not designated	61		—	61
Total derivative liabilities	$	47,267	—	$	47,267

Effect of Derivative Financial Instruments on Income Statement

The following table presents the effect of certain derivative financial instruments on the income statement:

		Six Months Ended June 30,
(in thousands)	Income Statement Location	2017			2016
Interest Rate Contracts	Interest income - loans and leases	$	900		$	1,368
Interest Rate Contracts	Interest expense – short-term borrowings	652			286
Interest Rate Swaps	Other income	(465		)	(168		)
Credit Risk Contracts	Other income	21			(234		)

Interest rate contracts [Member]

Summary of Key Data Related to Interest Rate

Following is a summary of key data related to interest rate contracts:

(in thousands)	June 30, 2017		December 31, 2016
Notional amount	$	705,000	$	450,000
Fair value included in other assets	862		9,256
Fair value included in other liabilities	1,194		1,171

Interest rate swaps [Member]

Summary of Key Data Related to Interest Rate

Following is a summary of key data related to interest rate swaps:

(in thousands)	June 30, 2017		December 31, 2016
Notional amount	$	4,028,556	$	3,378,314
Fair value included in other assets	37,234		44,890
Fair value included in other liabilities	24,151		45,912

Collateral Held By Counterparty [Member]

Derivative Assets

The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the balance sheets to the net amounts that would result in the event of offset:

			Amount Not Offset in the Balance Sheet
(in thousands)	Net Amount Presented in the Balance Sheet		Financial Instruments		Cash Collateral	Net Amount
June 30, 2017
Derivative Assets
Interest rate contracts:
Designated	$	862	$	862	—	$	—
Not designated	472		405		—	67
Equity contracts – not designated	26		26		—	—
Total	$	1,360	$	1,293	—	$	67

December 31, 2016
Derivative Assets
Interest rate contracts:
Designated	$	9,256	$	843	$	8,413	$	—
Not designated	12,720		474		12,132		114
Equity contracts – not designated	61		61		—		—
Total	$	22,037	$	1,378	$	20,545	$	114

Derivative Liabilities

The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the balance sheets to the net amounts that would result in the event of offset:

			Amount Not Offset in the Balance Sheet
(in thousands)	Net Amount Presented in the Balance Sheet		Financial Instruments		Cash Collateral	Net Amount
June 30, 2017
Derivative Liabilities
Interest rate contracts:
Designated	$	1,194	$	1,194	—	$	—
Not designated	13,758		12,418		—	1,340
Total	$	14,952	$	13,612	—	$	1,340

December 31, 2016
Derivative Liabilities
Interest rate contracts:
Designated	$	1,171	$	1,171	$	—	$	—
Not designated	34,046		15,490		17,651		905
Total	$	35,217	$	16,661	$	17,651	$	905