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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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:
 
2016
 
2015
 
Notional
Amount
 
Asset
(Liability)
Fair Value
 
Notional
Amount
 
Asset
(Liability)
Fair Value
 
(in thousands)
Interest Rate Locks with Customers
 
 
 
 
 
 
 
Positive fair values
$
87,119

 
$
863

 
$
87,781

 
$
1,291

Negative fair values
18,239

 
(227
)
 
267

 
(16
)
Net interest rate locks with customers
 
 
636

 
 
 
1,275

Forward Commitments
 
 
 
 
 
 
 
Positive fair values
70,031

 
2,223

 
69,045

 
205

Negative fair values
19,964

 
(112
)
 
16,193

 
(24
)
Net forward commitments
 
 
2,111

 
 
 
181

Interest Rate Swaps with Customers
 
 
 
 
 
 
 
Positive fair values
876,744

 
24,397

 
846,490

 
32,915

Negative fair values
583,060

 
(16,998
)
 
8,757

 
(55
)
Net interest rate swaps with customers
 
 
7,399

 
 
 
32,860

Interest Rate Swaps with Dealer Counterparties
 
 
 
 
 
 
 
Positive fair values
583,060

 
16,998

 
8,757

 
55

Negative fair values
876,744

 
(24,397
)
 
846,490

 
(32,915
)
Net interest rate swaps with dealer counterparties
 
 
(7,399
)
 
 
 
(32,860
)
Foreign Exchange Contracts with Customers
 
 
 
 
 
 
 
Positive fair values
11,674

 
504

 
4,897

 
114

Negative fair values
4,659

 
(221
)
 
8,050

 
(184
)
Net foreign exchange contracts with customers
 
 
283

 
 
 
(70
)
Foreign Exchange Contracts with Correspondent Banks
 
 
 
 
 
 
 
Positive fair values
7,040

 
241

 
9,728

 
428

Negative fair values
12,869

 
(447
)
 
6,899

 
(147
)
Net foreign exchange contracts with correspondent banks
 
 
(206
)
 
 
 
281

Net derivative fair value asset
 
 
$
2,824

 
 
 
$
1,667
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:
 
2016
 
2015
 
2014
 
Statement of Income Classification
 
(in thousands)
 
 
Interest rate locks with customers
$
(639
)
 
$
(110
)
 
$
577

 
Mortgage banking income
Forward commitments
1,930

 
1,345

 
(2,422
)
 
Mortgage banking income
Interest rate swaps with customers
(25,461
)
 
13,342

 
20,406

 
Other non-interest expense
Interest rate swaps with counterparties
25,461

 
(13,342
)
 
(20,406
)
 
Other non-interest expense
Foreign exchange contracts with customers
353

 
(439
)
 
688

 
Other service charges and fees
Foreign exchange contracts with correspondent banks
(487
)
 
711

 
(880
)
 
Other service charges and fees
Net fair value gains (losses) on derivative financial instruments
$
1,157

 
$
1,507

 
$
(2,037
)
 
 
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, 2016 and 2015:
 
Cost (1)
 
Fair Value
 
Balance Sheet
Classification
 
Fair Value Loss
 
Statement of Income Classification
 
(in thousands)
December 31, 2016:
 
 
 
 
 
 
 
 
 
Mortgage loans held for sale
$
28,708

 
$
28,697

 
Loans held for sale
 
$
(313
)
 
Mortgage banking income
December 31, 2015:
 
 
 
 
 
 
 
 
 
Mortgage loans held for sale
16,584

 
16,886

 
Loans held for sale
 
(140
)
 
Mortgage banking income
 
(1)
Cost basis of mortgage loans held for sale represents the unpaid principal balance.
Offsetting Assets and Liabilities
The following table presents the 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)
2016
 
 
 
 
 
 
 
Interest rate swap derivative assets
$
41,395

 
$
(15,117
)
 
$
—

 
$
26,278

Foreign exchange derivative assets with correspondent banks
241

 
(241
)
 
—

 
—

   Total
$
41,636

 
$
(15,358
)
 
$
—

 
$
26,278

 
 
 
 
 
 
 
 
Interest rate swap derivative liabilities
$
41,395

 
$
(15,117
)
 
$
(4,010
)
 
$
22,268

Foreign exchange derivative liabilities with correspondent banks
447

 
(241
)
 
(206
)
 
—

   Total
$
41,842

 
$
(15,358
)
 
$
(4,216
)
 
$
22,268

 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
Interest rate swap derivative assets
$
32,970

 
$
(55
)
 
$
—

 
$
32,915

Foreign exchange derivative assets with correspondent banks
428

 
(147
)
 
—

 
281

   Total
$
33,398

 
$
(202
)
 
$
—

 
$
33,196

 
 
 
 
 
 
 
 
Interest rate swap derivative liabilities
$
32,970

 
$
(55
)
 
$
(31,130
)
 
$
1,785

Foreign exchange derivative liabilities with correspondent banks
147

 
(147
)
 
—

 
—

   Total
$
33,117

 
$
(202
)
 
$
(31,130
)
 
$
1,785


(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 and foreign exchange contracts with financial institution counterparties. Interest rate swaps with customers are collateralized by the underlying loans to those borrowers. Cash and securities collateral amounts are included in the table only to the extent of the net derivative fair values.