Derivative Financial Instruments (Tables)
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12 Months Ended |
Dec. 31, 2014
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Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Summary of Notion Amoutns and Fair Values of Derivative Financial Instruments |
The following table presents the notional amounts and fair values of derivative financial instruments as of December 31: | | | | | | | | | | | | | | | | | | 2014 | | 2013 | | Notional Amount | | Asset (Liability) Fair Value | | Notional Amount | | Asset (Liability) Fair Value | | (in thousands) | Interest Rate Locks with Customers | | | | | | | | Positive fair values | $ | 89,655 |
| | $ | 1,391 |
| | $ | 75,217 |
| | $ | 867 |
| Negative fair values | 301 |
| | (6 | ) | | 11,393 |
| | (59 | ) | Net interest rate locks with customers | | | 1,385 |
| | | | 808 |
| Forward Commitments | | | | | | | | Positive fair values | — |
| | — |
| | 87,904 |
| | 1,263 |
| Negative fair values | 93,802 |
| | (1,164 | ) | | 2,373 |
| | (5 | ) | Net forward commitments | | | (1,164 | ) | | | | 1,258 |
| Interest Rate Swaps with Customers | | | | | | | | Positive fair values | 468,080 |
| | 19,716 |
| | 111,899 |
| | 2,105 |
| Negative fair values | 25,418 |
| | (198 | ) | | 105,673 |
| | (2,993 | ) | Net interest rate swaps with customers | | | 19,518 |
| | | | (888 | ) | Interest Rate Swaps with Dealer Counterparties | | | | | | | | Positive fair values | 25,418 |
| | 198 |
| | 105,673 |
| | 2,993 |
| Negative fair values | 468,080 |
| | (19,716 | ) | | 111,899 |
| | (2,105 | ) | Net interest rate swaps with dealer counterparties | | | (19,518 | ) | | | | 888 |
| Foreign Exchange Contracts with Customers | | | | | | | | Positive fair values | 11,616 |
| | 810 |
| | 2,150 |
| | 24 |
| Negative fair values | 5,250 |
| | (441 | ) | | 12,775 |
| | (343 | ) | Net foreign exchange contracts with customers | | | 369 |
| | | | (319 | ) | Foreign Exchange Contracts with Correspondent Banks | | | | | | | | Positive fair values | 5,287 |
| | 446 |
| | 17,348 |
| | 498 |
| Negative fair values | 13,572 |
| | (876 | ) | | 5,872 |
| | (48 | ) | Net foreign exchange contracts with correspondent banks | | | (430 | ) | | | | 450 |
| Net derivative fair value asset | | | $ | 160 |
| | | | $ | 2,197 |
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Summary of Fair Value Gains and Losses on Derivative Financial Instruments |
The following table presents the fair value gains and losses on derivative financial instruments for the years ended December 31: | | | | | | | | | | | | | | | | 2014 | | 2013 | | 2012 | | Statements of Income Classification | | (in thousands) | | | Interest rate locks with customers | $ | 577 |
| | $ | (5,949 | ) | | $ | 2,879 |
| | Mortgage banking income | Forward commitments | (2,422 | ) | | 1,466 |
| | 2,503 |
| | Mortgage banking income | Interest rate swaps with customers | 20,406 |
| | (7,978 | ) | | 4,346 |
| | Other non-interest expense | Interest rate swaps with counterparties | (20,406 | ) | | 7,978 |
| | (4,346 | ) | | Other non-interest expense | Foreign exchange contracts with customers | 688 |
| | (108 | ) | | (1,487 | ) | | Other service charges and fees | Foreign exchange contracts with correspondent banks | (880 | ) | | 507 |
| | 1,648 |
| | Other service charges and fees | Net fair value (losses) gains on derivative financial instruments | $ | (2,037 | ) | | $ | (4,084 | ) | | $ | 5,543 |
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Fair Value, Option, Qualitative Disclosures Related to Election |
The Corporation has elected to record mortgage loans held for sale at fair value. The following table presents a summary of mortgage loans held for sale and the impact of the fair value election on the consolidated financial statements as of and for the years ended December 31, 2014 and 2013: | | | | | | | | | | | | | | | | | | Cost (1) | | Fair Value | | Balance Sheet Classification | | Fair Value (Loss) Gain | | Statements of Income Classification | | (in thousands) | December 31, 2014: | | | | | | | | | | Mortgage loans held for sale | $ | 17,080 |
| | $ | 17,522 |
| | Loans held for sale | | $ | 263 |
| | Mortgage banking income | December 31, 2013: | | | | | | | | | | Mortgage loans held for sale | 21,172 |
| | 21,351 |
| | Loans held for sale | | (1,975 | ) | | Mortgage banking income |
| | (1) | Cost basis of mortgage loans held for sale represents the unpaid principal balance. |
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Offsetting Assets and Liabilities |
The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the consolidated balance sheets as of December 31: | | | | | | | | | | | | | | | | | | Gross Amounts | | Gross Amounts Not Offset | | | | Recognized | | on the Consolidated | | | | on the | | Balance Sheets | | | | Consolidated | | Financial | | Cash | | Net | | Balance Sheets | | Instruments (1) | | Collateral (2) | | Amount | | (in thousands) | 2014 | | | | | | | | Interest rate swap assets | $ | 19,914 |
| | $ | (206 | ) | | $ | — |
| | $ | 19,708 |
| | | | | | | | | Interest rate swap liabilities | $ | 19,914 |
| | $ | (206 | ) | | $ | (19,210 | ) | | $ | 498 |
| | | | | | | | | 2013 | | | | | | | | Interest rate swap assets | $ | 5,098 |
| | $ | (2,104 | ) | | $ | — |
| | $ | 2,994 |
| | | | | | | | | Interest rate swap liabilities | $ | 5,098 |
| | $ | (2,104 | ) | | $ | (730 | ) | | $ | 2,264 |
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| | (1) | For interest rate swap assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default. For interest rate swap liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default. |
| | (2) | Amounts represent cash collateral posted on interest rate swap transactions with financial institution counterparties. Interest rate swaps with customers are collateralized by the underlying loans to those borrowers. |
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