Derivative Instruments and Other Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Derivative Instruments

Information pertaining to outstanding derivative instruments is as follows:



		Asset Derivatives Fair Value					Liability Derivatives Fair Value
(Dollars in thousands)	Balance Sheet Location	September 30, 2016		December 31, 2015		Balance Sheet Location	September 30, 2016		December 31, 2015
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	—	$	58	Other liabilities	$	9,649	$	—
Total derivatives designated as hedging instruments under ASC Topic 815		$	—	$	58		$	9,649	$	—
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	39,438	$	18,077	Other liabilities	$	39,563	$	18,077
Foreign exchange contracts	Other assets	44		156		Other liabilities	30		134
Forward sales contracts	Other assets	105		1,588		Other liabilities	1,680		474
Written and purchased options	Other assets	16,217		10,607		Other liabilities	8,017		6,254
Total derivatives not designated as hedging instruments under ASC Topic 815		55,804		30,428			49,290		24,939
Total		$	55,804	$	30,486		$	58,939	$	24,939



	Asset Derivatives Notional Amount				Liability Derivatives Notional Amount
(Dollars in thousands)	September 30, 2016		December 31, 2015		September 30, 2016		December 31, 2015
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	$	—	$	108,500	$	108,500	$	—
Total derivatives designated as hedging instruments under ASC Topic 815	$	—	$	108,500	$	108,500	$	—
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts	$	976,456	$	590,334	$	976,456	$	590,334
Foreign exchange contracts	4,644		4,392		4,644		4,392
Forward sales contracts	53,662		223,841		405,697		173,430
Written and purchased options	400,129		328,210		167,211		181,949
Total derivatives not designated as hedging instruments under ASC Topic 815	1,434,891		1,146,777		1,554,008		950,105
Total	$	1,434,891	$	1,255,277	$	1,662,508	$	950,105

Offsetting Assets

The following table reconciles the gross amounts presented in the consolidated balance sheets to the net amounts that would result in the event of offset.



	September 30, 2016
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
(Dollars in thousands)	Gross Amounts Presented in the Balance Sheet		Derivatives		Collateral ⁽¹⁾			Net
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts not designated as hedging instruments	$	39,438	$	—	$	—		$	39,438
Written and purchased options	7,998		—		—			7,998
Total derivative assets subject to master netting arrangements	$	47,436	$	—	$	—		$	47,436
Derivative liabilities
Interest rate contracts designated as hedging instruments	$	9,649	$	—	$	(12,752	)	$	(3,103	)
Interest rate contracts not designated as hedging instruments	39,563		—		(45,247		)	(5,684		)
Total derivative liabilities subject to master netting arrangements	$	49,212	$	—	$	(57,999	)	$	(8,787	)


⁽¹⁾	Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.



	December 31, 2015
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
(Dollars in thousands)	Gross Amounts Presented in the Balance Sheet		Derivatives		Collateral ⁽¹⁾			Net
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	58	$	—	$	—		$	58
Interest rate contracts not designated as hedging instruments	18,058		—		—			18,058
Written and purchased options	6,277		—		—			6,277
Total derivative assets subject to master netting arrangements	$	24,393	$	—	$	—		$	24,393
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	18,058	$	—	$	(20,104	)	$	(2,046	)
Total derivative liabilities subject to master netting arrangements	$	18,058	$	—	$	(20,104	)	$	(2,046	)


⁽¹⁾	Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.

Offsetting Liabilities

The following table reconciles the gross amounts presented in the consolidated balance sheets to the net amounts that would result in the event of offset.



	September 30, 2016
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
(Dollars in thousands)	Gross Amounts Presented in the Balance Sheet		Derivatives		Collateral ⁽¹⁾			Net
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts not designated as hedging instruments	$	39,438	$	—	$	—		$	39,438
Written and purchased options	7,998		—		—			7,998
Total derivative assets subject to master netting arrangements	$	47,436	$	—	$	—		$	47,436
Derivative liabilities
Interest rate contracts designated as hedging instruments	$	9,649	$	—	$	(12,752	)	$	(3,103	)
Interest rate contracts not designated as hedging instruments	39,563		—		(45,247		)	(5,684		)
Total derivative liabilities subject to master netting arrangements	$	49,212	$	—	$	(57,999	)	$	(8,787	)


⁽¹⁾	Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.



	December 31, 2015
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
(Dollars in thousands)	Gross Amounts Presented in the Balance Sheet		Derivatives		Collateral ⁽¹⁾			Net
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	58	$	—	$	—		$	58
Interest rate contracts not designated as hedging instruments	18,058		—		—			18,058
Written and purchased options	6,277		—		—			6,277
Total derivative assets subject to master netting arrangements	$	24,393	$	—	$	—		$	24,393
Derivative liabilities
Interest rate contracts not designated as hedging instruments	$	18,058	$	—	$	(20,104	)	$	(2,046	)
Total derivative liabilities subject to master netting arrangements	$	18,058	$	—	$	(20,104	)	$	(2,046	)


⁽¹⁾	Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.

Effect of Derivatives on Consolidated Financial Statements

At September 30, 2016 and 2015, and for the three and nine months then ended, information pertaining to the effect of the hedging instruments on the consolidated financial statements is as follows:



													Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
			Amount of Gain (Loss) Recognized in OCI net of taxes (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)


(Dollars in thousands)
			For the Three Months Ended September 30
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships			2016		2015				2016		2015			2016		2015
	Interest rate contracts	$	146		$	(3,412	)	Other income (expense)	$	—	$	—	Other income (expense)	$	—	$	—
Total		$	146		$	(3,412	)		$	—	$	—		$	—	$	—

													Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
			Amount of Gain (Loss) Recognized in OCI net of taxes (Effective Portion)					Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)


(Dollars in thousands)
			For the Nine Months Ended September 30
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships			2016		2015				2016		2015			2016		2015
	Interest rate contracts	$	(6,309	)	$	(374	)	Other income (expense)	$	—	$	—	Other income (expense)	$	—	$	—
Total		$	(6,309	)	$	(374	)		$	—	$	—		$	—	$	—

Information pertaining to the effect of derivatives not designated as hedging instruments on the consolidated financial statements is as follows:



		Amount of Gain (Loss) Recognized in Income on Derivatives
	Location of Gain (Loss) Recognized in Income on Derivatives	For the Three Months Ended September 30						For the Nine Months Ended September 30
(Dollars in thousands)	Location of Gain (Loss) Recognized in Income on Derivatives	2016			2015			2016			2015
Interest rate contracts ⁽¹⁾	Other income	$	2,215		$	1,130		$	7,509		$	3,069
Foreign exchange contracts	Other income	4			—			7			—
Forward sales contracts	Mortgage income	(2,590		)	(6,524		)	(12,720		)	1,526
Written and purchased options	Mortgage income	(2,624		)	(526		)	3,846			(1,711		)
Total		$	(2,995	)	$	(5,920	)	$	(1,358	)	$	2,884

⁽¹⁾Includes fees associated with customer interest rate contracts.