Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The following tables reflect the Company's derivative positions for the periods indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes:

June 30, 2019
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	2.68	2.45	%	1.53	%	$	337
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	400,000		4.01	2.37	%	2.47	%	13,743
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	350,000		3.99	2.36	%	2.87% - 2.32%		11,011
Total	$	825,000						$	25,091
December 31, 2018
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	3.18	2.74	%	1.53	%	$	2,282
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	250,000		4.52	2.57	%	2.67	%	2,938
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	250,000		4.17	2.47	%	3.02% - 2.51%		3,344
Total	$	575,000						$	8,564

Summary of customer related derivative positions, not designated as hedging

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

		Notional Amount Maturing
	Number of  Positions (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	June 30, 2019
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	302	$	112,642	$	209,727	$	77,125	$	159,751	$	978,497	$	1,537,742	$	49,459
Pay fixed, receive variable	293	$	112,642	$	209,727	$	77,125	$	159,751	$	978,497	$	1,537,742	$	(49,453	)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	36	$	74,431	$	—	$	—	$	—	$	—	$	74,431	$	(1,160	)
Buys U.S. currency, sells foreign currency	36	$	74,431	$	—	$	—	$	—	$	—	$	74,431	$	1,196
	December 31, 2018
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	235	$	50,702	$	124,222	$	97,904	$	47,308	$	631,471	$	951,607	$	(2,907	)
Pay fixed, receive variable	220	$	50,702	$	124,222	$	97,904	$	47,308	$	631,471	$	951,607	$	2,903
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	27	$	60,297	$	3,505	$	—	$	—	$	—	$	63,802	$	(1,404	)
Buys U.S. currency, sells foreign currency	27	$	60,297	$	3,505	$	—	$	—	$	—	$	63,802	$	1,434

 

(1)

The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

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
		Fair Value at		Fair Value at			Fair Value at		Fair Value at
	Balance Sheet Location	June 30 2019		December 31 2018		Balance Sheet Location	June 30 2019		December 31 2018
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	Other assets	$	25,216	$	8,955	Other liabilities	$	125	$	391
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	Other assets	$	51,417	$	15,580	Other liabilities	$	51,411	$	15,584
Foreign exchange contracts	Other assets	1,543		1,578		Other liabilities	1,507		1,548
Mortgage Derivatives
Interest rate lock commitments	Other assets	2,377		91		Other liabilities	—		—
Forward sale loan commitments	Other assets	3		106		Other liabilities	66		—
Forward sale hedge commitments	Other assets	—		—		Other liabilities	570		—
		$	55,340	$	17,355		$	53,554	$	17,132
Total		$	80,556	$	26,310		$	53,679	$	17,523

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
	2019			2018			2019			2018
	(Dollars in thousands)
Derivatives designated as hedges
Gain in OCI on derivatives (effective portion), net of tax	$	8,590		$	(112	)	$	11,875		$	103
Gain reclassified from OCI into interest income or interest expense (effective portion)	$	394		$	167		$	818		$	257
Loss recognized in income on derivatives (ineffective portion and 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		$	15		$	27		$	24
Other expense	(10		)	(5		)	(11		)	(18		)
Changes in fair value of mortgage derivatives
Mortgage banking income	1,488			141			1,547			153
Total	$	1,492		$	151		$	1,563		$	159