Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 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:

September 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	0.25	%	5.04	%	$	(3,429	)
25,000		16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.25	%	5.04	%	(3,429		)
25,000		8-Dec-08	10-Dec-08	10-Dec-13	3 Month LIBOR	0.26	%	2.65	%	(116		)
25,000		9-Dec-08	10-Dec-08	10-Dec-13	3 Month LIBOR	0.26	%	2.59	%	(113		)
25,000		9-Dec-08	10-Dec-08	10-Dec-18	3 Month LIBOR	0.26	%	2.94	%	(1,771		)
50,000		17-Nov-09	20-Dec-10	20-Dec-14	3 Month LIBOR	0.25	%	3.04	%	(1,671		)
25,000		5-May-11	10-Jun-11	10-Jun-15	3 Month LIBOR	0.26	%	1.71	%	(562		)
$	200,000									$	(11,091	)
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				Nine Months Ended
	September 30				September 30
	2013		2012		2013		2012
	(Dollars in thousands)				(Dollars in thousands)
Net amortization income	$	61	$	61	$	183	$	183

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
	September 30, 2013
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	164	$	4,003	54,724	99,271	49,875	379,553	$	587,426	$	15,053
Pay fixed, receive variable	158	$	4,003	54,724	99,271	49,875	379,553	$	587,426	$	(15,096	)
Foreign exchange contracts
Buys foreign currency, sells US currency	7	$	6,621	7,221	—	—	—	$	13,842	$	447
Buys US currency, sells foreign currency	7	$	6,621	7,221	—	—	—	$	13,842	$	(440	)
	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 currency, sells US currency	16	$	42,516	—	—	—	—	$	42,516	$	1,748
Buys US currency, sells foreign currency	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 September 30,  2013		Fair Value at December 31, 2012		Balance Sheet Location	Fair Value at September 30,  2013		Fair Value at December 31, 2012
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate swaps	Other assets	$	—	$	—	Other liabilities	$	11,091	$	16,189
Derivatives not designated as hedges
Customer Related Positions:
Loan level swaps	Other assets	$	19,093	$	28,678	Other liabilities	$	19,136	$	28,663
Foreign exchange contracts	Other assets	447		1,748		Other liabilities	440		1,718
Total		$	19,540	$	30,426		$	19,576	$	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						Nine Months Ended
	September 30						September 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	$	(411	)	$	(929	)	$	350		$	(2,125	)
Loss reclassified from OCI into interest expense (effective portion)	$	(1,464	)	$	(1,370	)	$	(4,322	)	$	(4,008	)
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	$	1		$	12		$	27		$	85
Other expense	(27		)	(4		)	(108		)	(23		)
Total	$	(26	)	$	8		$	(81	)	$	62

Offsetting Assets

The following tables present the Company's asset and 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 Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments (1)		Cash Collateral Received		Net Amount
	(Dollars in thousands)
Derivative Assets	September 30, 2013
Interest rate swaps	$	—	$	—	$	—	$	—	$	—	$	—
Loan level swaps	19,093		—		19,093		2,020		—		17,073
Customer foreign exchange contracts	447		—		447		—		—		447
	$	19,540	$	—	$	19,540	$	2,020	$	—	$	17,520
Derivative Liabilities	September 30, 2013
Interest rate swaps	$	11,091	$	—	$	11,091	$	—	$	15,483	$	(4,392	)
Loan level swaps	19,136		—		19,136		2,020		15,736		1,380
Customer foreign exchange contracts	440		—		440		—		—		440
	$	30,667	$	—	$	30,667	$	2,020	$	31,219	$	(2,572	)

(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

							Gross Amounts Not Offset in the Statement of Financial Position
Description	Gross Amounts Recognized		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statement of Financial Position		Financial Instruments (1)		Cash Collateral Pledged		Net Amount
	(Dollars in thousands)
Derivative Assets	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
Derivative Liabilities	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:

	September 30, 2013			December 31, 2012
	(Dollars in thousands)
Interest rate lock commitments	$	587		$	102
Forward sales agreements	$	(461	)	$	(223	)
Loans held for sale fair value adjustments	$	395		$	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						Nine Months Ended
	September 30						September 30
	2013			2012			2013			2012
	(Dollars in thousands)						(Dollars in thousands)
Interest rate lock commitments	$	1,453		$	465		$	485		$	566
Forward sales agreements	(2,553		)	(1,141		)	(238		)	(1,354		)
Loans held for sale fair value adjustments	1,609			676			274			788
Total change in fair value	$	509		$	—		$	521		$	—