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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Impact of Derivatives on the Consolidated Balance Sheet
Impact of Derivatives on the Consolidated Balance Sheet
 
 
 
Cash Flow Hedges
 
Fair Value Hedges
 
Trading
 
Total
 
 
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
Fair Values(1)
Hedged Risk Exposure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Assets:(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
Interest rate
 
$
—

 
$
—

 
$
655

 
$
6,335

 
$
279

 
$
426

 
$
934

 
$
6,761

 
Derivative Liabilities:(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
Interest rate
 
(3,464
)
 
—

 
(11,515
)
 
(6,149
)
 
(1,350
)
 
—

 
(16,329
)
 
(6,149
)
 
Total net derivatives
 
 
$
(3,464
)
 
$
—

 
$
(10,860
)
 
$
186

 
$
(1,071
)
 
$
426

 
$
(15,395
)
 
$
612

 
 
(1)
Fair values reported are exclusive of collateral held and pledged and accrued interest. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements, and classified in other assets or other liabilities depending on whether in a net positive or negative position.

(2)
The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification:
    
 
 
Other Assets
 
Other Liabilities
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
 
2014
 
2013
 
2014
 
2013
Gross position
 
$
934

 
$
6,761

 
$
(16,329
)
 
$
(6,149
)
Impact of master netting agreement
 
(934
)
 
(4,981
)
 
934

 
4,981

Derivative values with impact of master netting agreements (as carried on balance sheet)
 
—

 
1,780

 
(15,395
)
 
(1,168
)
Cash collateral (held) pledged(1)
 
(450
)
 
(5,190
)
 
46,377

 
40

Net position
 
$
(450
)
 
$
(3,410
)
 
$
30,982

 
$
(1,128
)

(1)
Cash collateral amount calculations include outstanding accrued interest payable/receivable.
Offsetting Assets
The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification:
    
 
 
Other Assets
 
Other Liabilities
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
 
2014
 
2013
 
2014
 
2013
Gross position
 
$
934

 
$
6,761

 
$
(16,329
)
 
$
(6,149
)
Impact of master netting agreement
 
(934
)
 
(4,981
)
 
934

 
4,981

Derivative values with impact of master netting agreements (as carried on balance sheet)
 
—

 
1,780

 
(15,395
)
 
(1,168
)
Cash collateral (held) pledged(1)
 
(450
)
 
(5,190
)
 
46,377

 
40

Net position
 
$
(450
)
 
$
(3,410
)
 
$
30,982

 
$
(1,128
)

(1)
Cash collateral amount calculations include outstanding accrued interest payable/receivable.
Offsetting Liabilities
 
 
Other Assets
 
Other Liabilities
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
 
2014
 
2013
 
2014
 
2013
Gross position
 
$
934

 
$
6,761

 
$
(16,329
)
 
$
(6,149
)
Impact of master netting agreement
 
(934
)
 
(4,981
)
 
934

 
4,981

Derivative values with impact of master netting agreements (as carried on balance sheet)
 
—

 
1,780

 
(15,395
)
 
(1,168
)
Cash collateral (held) pledged(1)
 
(450
)
 
(5,190
)
 
46,377

 
40

Net position
 
$
(450
)
 
$
(3,410
)
 
$
30,982

 
$
(1,128
)

(1)
Cash collateral amount calculations include outstanding accrued interest payable/receivable.
Schedule of Notional Amounts of Outstanding Derivative Positions
 
 
 
Cash Flow
 
Fair Value
 
Trading
 
Total
 
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Notional Values
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
 
$
1,100,226

 
$
—

 
$
2,448,023

 
$
2,089,624

 
$
678,967

 
$
575,131

 
$
4,227,216

 
$
2,664,755
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
Impact of Derivatives on the Consolidated Statements of Income

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
Fair Value Hedges
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
Hedge ineffectiveness gains (losses) recorded in earnings
 
$
1,238

 
$
(393
)
 
$
1,489

 
$
(71
)
Realized gains recorded in interest expense
 
3,835

 
6,804

 
14,081

 
22,311

Total
 
$
5,073

 
$
6,411

 
$
15,570

 
$
22,240

 
 
 
 
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
Hedge ineffectiveness losses recorded in earnings
 
(303
)
 
—

 
(303
)
 
—

Realized losses recorded in interest expense
 
(3,587
)
 
—

 
(3,587
)
 
—

Total
 
$
(3,890
)
 
$
—

 
$
(3,890
)
 
$
—

 
 
 
 
 
 
 
 
 
Trading
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
Interest reclassification
 
$
(1,170
)
 
$
346

 
$
(3,138
)
 
$
973

Change in fair value of future interest payments recorded in earnings
 
5,636

 
345

 
(2,870
)
 
(47
)
Total(1) 
 
4,466

 
691

 
(6,008
)
 
926

Total
 
$
5,649

 
$
7,102

 
$
5,672

 
$
23,166

    
Derivative Instruments, Gain (Loss)
Impact of Derivatives on the Consolidated Statements of Income

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2014
 
2013
 
2014
 
2013
 
 
 
 
 
 
 
 
 
Fair Value Hedges
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
Hedge ineffectiveness gains (losses) recorded in earnings
 
$
1,238

 
$
(393
)
 
$
1,489

 
$
(71
)
Realized gains recorded in interest expense
 
3,835

 
6,804

 
14,081

 
22,311

Total
 
$
5,073

 
$
6,411

 
$
15,570

 
$
22,240

 
 
 
 
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
Hedge ineffectiveness losses recorded in earnings
 
(303
)
 
—

 
(303
)
 
—

Realized losses recorded in interest expense
 
(3,587
)
 
—

 
(3,587
)
 
—

Total
 
$
(3,890
)
 
$
—

 
$
(3,890
)
 
$
—

 
 
 
 
 
 
 
 
 
Trading
 
 
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
 
 
Interest reclassification
 
$
(1,170
)
 
$
346

 
$
(3,138
)
 
$
973

Change in fair value of future interest payments recorded in earnings
 
5,636

 
345

 
(2,870
)
 
(47
)
Total(1) 
 
4,466

 
691

 
(6,008
)
 
926

Total
 
$
5,649

 
$
7,102

 
$
5,672

 
$
23,166

    
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
Impact of Derivatives on the Statements of Changes in Stockholders' Equity
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2014
 
2013
 
2014
 
2013
Amount of loss recognized in other comprehensive income
 
$
(5,470
)
 
$
—

 
$
(5,470
)
 
$
—

Amount of loss reclassified in interest expense(1)
 
3,587

 
—

 
3,587

 
—

Total change in other comprehensive income for unrealized losses on derivatives
 
$
(1,883
)
 
$
—

 
$
(1,883
)
 
$
—



(1) Amounts included in “realized gains (losses) recorded in interest expense” in the “Impact of Derivatives on the Consolidated
Statements of Income” table.