Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes

The following table reflects the Company’s derivative positions for the periods indicated below for interest rate swaps which qualify as cash flow hedges for accounting purposes:

June 30, 2013
Notional Amount		Trade Date	Effective Date	Maturity Date	Receive (Variable) Index	Current  Rate Received		Pay Fixed Swap Rate		Fair Value
(Dollars in thousands)
$	25,000	16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.27	%	5.04	%	$	(3,562	)
25,000		16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.27	%	5.04	%	(3,563		)
25,000		8-Dec-08	10-Dec-08	10-Dec-13	3 Month LIBOR	0.27	%	2.65	%	(264		)
25,000		9-Dec-08	10-Dec-08	10-Dec-13	3 Month LIBOR	0.27	%	2.59	%	(258		)
25,000		9-Dec-08	10-Dec-08	10-Dec-18	3 Month LIBOR	0.27	%	2.94	%	(1,719		)
50,000		17-Nov-09	20-Dec-10	20-Dec-14	3 Month LIBOR	0.27	%	3.04	%	(1,955		)
25,000		5-May-11	10-Jun-11	10-Jun-15	3 Month LIBOR	0.27	%	1.71	%	(600		)
$	200,000									$	(11,921	)
December 31, 2012
Notional Amount		Trade Date	Effective Date	Maturity Date	Receive (Variable) Index	Current  Rate Received		Pay Fixed Swap Rate		Fair Value
				(Dollars in thousands)
$	25,000	16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.31	%	5.04	%	$	(4,416	)
25,000		16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.31	%	5.04	%	(4,417		)
25,000		8-Dec-08	10-Dec-08	10-Dec-13	3 Month LIBOR	0.31	%	2.65	%	(553		)
25,000		9-Dec-08	10-Dec-08	10-Dec-13	3 Month LIBOR	0.31	%	2.59	%	(539		)
25,000		9-Dec-08	10-Dec-08	10-Dec-18	3 Month LIBOR	0.31	%	2.94	%	(2,819		)
50,000		17-Nov-09	20-Dec-10	20-Dec-14	3 Month LIBOR	0.31	%	3.04	%	(2,647		)
25,000		5-May-11	10-Jun-11	10-Jun-15	3 Month LIBOR	0.31	%	1.71	%	(798		)
$	200,000									$	(16,189	)

Summary of net amortization income recognized

The table below presents the net amortization income recognized as an offset to interest expense related to previously terminated swaps for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2013		2012		2013		2012
	(Dollars in thousands)				(Dollars in thousands)
Net amortization income	$	61	$	61	$	122	$	122

Summary of customer related derivative positions, not designated as hedging

The following table reflects the Company’s customer related derivative positions for the periods indicated below for those derivatives not designated as hedging:

		Notional Amount Maturing
	# of Positions (1)	2013		2014	2015	2016	Thereafter	Total		Fair Value
	June 30, 2013
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	158	$	4,058	55,271	100,565	43,966	327,855	$	531,715	$	13,519
Pay fixed, receive variable	152	$	4,058	55,271	100,565	43,966	327,855	$	531,715	$	(13,543	)
Foreign exchange contracts
Buys foreign exchange, sells US currency	13	$	25,073	7,221	—	—	—	$	32,294	$	(64	)
Buys US currency, sells foreign exchange	13	$	25,073	7,221	—	—	—	$	32,294	$	78
	December 31, 2012
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	143	$	16,766	65,344	105,939	45,267	268,932	$	502,248	$	28,678
Pay fixed, receive variable	137	$	16,766	65,344	105,939	45,267	268,932	$	502,248	$	(28,663	)
Foreign exchange contracts
Buys foreign exchange, sells US currency	16	$	42,516	—	—	—	—	$	42,516	$	1,748
Buys US currency, sells foreign exchange	16	$	42,516	—	—	—	—	$	42,516	$	(1,718	)

(1) The Company may enter into one swap agreement which offsets multiple reverse swap agreements. The positions will offset and the terms will be identical.

Fair value of derivative financial instruments as well as their classification on the balance sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet at the periods indicated:

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Fair Value at June 30,  2013		Fair Value at December 31, 2012		Balance Sheet Location	Fair Value at June 30,  2013		Fair Value at December 31, 2012
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate swaps	Other assets	$	—	$	—	Other liabilities	$	11,921	$	16,189
Derivatives not designated as hedges
Customer Related Positions:
Loan level swaps	Other assets	$	18,413	$	28,678	Other liabilities	$	18,437	$	28,663
Foreign exchange contracts	Other assets	291		1,748		Other liabilities	277		1,718
Total		$	18,704	$	30,426		$	18,714	$	30,381

Effect of derivative financial instruments included in OCI and current earnings

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	Three Months Ended						Six Months Ended
	June 30						June 30
	2013			2012			2013			2012
	(Dollars in thousands)						(Dollars in thousands)
Derivatives designated as hedges
Gain (loss) in OCI on derivatives (effective portion), net of tax	$	765		$	(1,227	)	$	763		$	(1,196	)
Loss reclassified from OCI into interest expense (effective portion)	$	(1,443	)	$	(1,346	)	$	(2,859	)	$	(2,638	)
Loss recognized in income on derivatives (ineffective portion & amount excluded from effectiveness testing)
Interest expense	$	—		$	—		$	—		$	—
Other expense	—			—			—			—
Total	$	—		$	—		$	—		$	—
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	14		$	51		$	26		$	73
Other expense	(56		)	(9		)	(81		)	(19		)
Total	$	(42	)	$	42		$	(55	)	$	54

Offsetting Assets

The following table presents the Company's asset derivative positions and the potential effect of netting arrangements on its financial position, as of the periods indicated:

							Gross Amounts Not Offset in the Statement of Financial Position
Description	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Financial Instruments (1)		Cash Collateral Received		Net Amount
	(Dollars in thousands)
	June 30, 2013
Interest rate swaps	$	—	$	—	$	—	$	—	$	—	$	—
Loan level swaps	18,413		—		18,413		1,735		—		16,678
Customer foreign exchange contracts	291		—		291		108		—		183
	$	18,704	$	—	$	18,704	$	1,843	$	—	$	16,861
	December 31, 2012
Interest rate swaps	$	—	$	—	$	—	$	—	$	—	$	—
Loan level swaps	28,678		—		28,678		—		—		28,678
Customer foreign exchange contracts	1,748		—		1,748		—		—		1,748
	$	30,426	$	—	$	30,426	$	—	$	—	$	30,426

(1) Includes loan level swaps with customers which are not subject to a master netting arrangement and thus are not offset in the statement of financial position.

Offsetting Liabilities

The following table presents the Company's liability derivative positions and the potential effect of netting arrangements on its financial position, as of the periods indicated:

							Gross Amounts Not Offset in the Statement of Financial Position
Description	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Financial Instruments (1)		Cash Collateral Pledged		Net Amount
	(Dollars in thousands)
	June 30, 2013
Interest rate swaps	$	11,921	$	—	$	11,921	$	—	$	15,774	$	(3,853	)
Loan level swaps	18,437		—		18,437		1,735		15,797		905
Customer foreign exchange contracts	277		—		277		108		—		169
	$	30,635	$	—	$	30,635	$	1,843	$	31,571	$	(2,779	)
	December 31, 2012
Interest rate swaps	$	16,189	$	—	$	16,189	$	—	$	19,185	$	(2,996	)
Loan level swaps	28,663		—		28,663		—		31,772		(3,109		)
Customer foreign exchange contracts	1,718		—		1,718		—		—		1,718
	$	46,570	$	—	$	46,570	$	—	$	50,957	$	(4,387	)

(1) Includes loan level swaps with customers which are not subject to a master netting arrangement and thus are not offset in the statement of financial position.

Summary of fair value of residential mortgage loans commitments, forward sales agreements, and loans held for sale

The table below summarizes the fair value of residential mortgage loans commitments, forward sales agreements, and loans held for sale at the periods indicated:

	June 30, 2013			December 31, 2012
	(Dollars in thousands)
Interest rate lock commitments	$	(866	)	$	102
Forward sales agreements	$	2,092		$	(223	)
Loans held for sale fair value adjustments	$	(1,214	)	$	121

Summary of changes in fair value of residential mortgage loans commitments, forward sales agreements, and loans held for sale

The table below summarizes the changes in the fair value of residential mortgage loans commitments, forward sales agreements, and loans held for sale at the periods indicated:

	Three Months Ended						Six Months Ended
	June 30						June 30
	2013			2012			2013			2012
	(Dollars in thousands)						(Dollars in thousands)
Interest rate lock commitments	$	(997	)	$	385		$	(968	)	$	101
Forward sales agreements	2,204			(766		)	2,315			(213		)
Loans held for sale fair value adjustments	(1,195		)	381			(1,335		)	112
Total change in fair value	$	12		$	—		$	12		$	—