Derivative Instruments

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

As of June 30, 2019 and December 31, 2018, the Company primarily utilizes non-hedging derivative financial instruments with commercial banking customers to facilitate their interest rate management strategies. For these instruments, the Company acts as an intermediary for its customers and has offsetting contracts with financial institution counterparties. Changes in the fair value of these underlying derivative contracts generally offset each other and do not significantly impact the Company's results of operations.

The following table summarizes the notional and fair value of these derivative instruments (in thousands):

	June 30, 2019				December 31, 2018
	Notional Amount		Fair Value		Notional Amount		Fair Value
Non-hedging interest rate derivatives:
Customer counterparties:
Loan interest rate swap - assets	$	384,643	$	16,275	$	132,146	$	3,131
Loan interest rate swap - liabilities	95,486		1,838		372,223		13,774
Non-hedging interest rate derivatives:
Financial institution counterparties:
Loan interest rate swap - assets	95,486		1,838		403,500		13,902
Loan interest rate swap - liabilities	390,054		16,303		132,146		3,131

The following table summarizes the change in fair value of these derivative instruments (in thousands):

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Change in Fair Value Non-Hedging Interest Rate Derivatives:
Other income - derivative assets	$	5,128		$	2,737		$	2,249		$	9,838
Other income - derivative liabilities	(5,128		)	(2,737		)	(2,249		)	(9,838		)
Other expense - derivative liabilities	97			33			154			123

Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements. The Company's derivative transactions with financial institution counterparties are generally executed under International Swaps and Derivative Association ("ISDA") master agreements which include "right of setoff" provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset financial instruments for financial reporting purposes.

Pursuant to the Company's agreements with certain of its derivative counterparties, the Company may receive collateral or post collateral, which may be in the form of cash or securities, based upon mark-to-mark positions.The Company has posted collateral with a market value of $15.6 million as of June 30, 2019.