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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Impact of derivatives on the consolidated balance sheet
The following tables summarize the fair values and notional amounts of all derivative instruments at December 31, 2019 and 2018, and their impact on earnings and other comprehensive income for the years ended December 31, 2019, 2018 and 2017.

Impact of Derivatives on the Consolidated Balance Sheets
 
 
 
 
Cash Flow Hedges
 
Fair Value Hedges
 
Trading
 
Total
 
 
 
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
 
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Fair Values(1)
 
Hedged Risk Exposure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative Assets:(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
Interest rate
 
$
715

 
$
—

 
$
—

 
$
2,000

 
$
—

 
$
90

 
$
715

 
$
2,090

Derivative Liabilities:(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
Interest rate
 
—

 
(2,032
)
 
(896
)
 
—

 
(268
)
 
—

 
(1,164
)
 
(2,032
)
Total net derivatives
 
 
 
$
715

 
$
(2,032
)
 
$
(896
)
 
$
2,000

 
$
(268
)
 
$
90

 
$
(449
)
 
$
58

  __________
(1)
Fair values reported include variation margin as legal settlement of the derivative contract. 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:
Offsetting assets
The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification:
    
 
 
Other Assets
 
Other Liabilities
 
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Gross position(1)
 
$
715

 
$
2,090

 
$
(1,164
)
 
$
(2,032
)
Impact of master netting agreement
 
(519
)
 
(1,389
)
 
519

 
1,389

Derivative values with impact of master netting agreements (as carried on balance sheet)
 
196

 
701

 
(645
)
 
(643
)
Cash collateral pledged(2)
 
52,564

 
27,151

 
—

 
—

Net position
 
$
52,760

 
$
27,852

 
$
(645
)
 
$
(643
)

__________
(1)
Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract.
(2)
Cash collateral pledged excludes amounts that represent legal settlement of the derivative contracts.
Offsetting liabilities
 
 
Other Assets
 
Other Liabilities
 
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Gross position(1)
 
$
715

 
$
2,090

 
$
(1,164
)
 
$
(2,032
)
Impact of master netting agreement
 
(519
)
 
(1,389
)
 
519

 
1,389

Derivative values with impact of master netting agreements (as carried on balance sheet)
 
196

 
701

 
(645
)
 
(643
)
Cash collateral pledged(2)
 
52,564

 
27,151

 
—

 
—

Net position
 
$
52,760

 
$
27,852

 
$
(645
)
 
$
(643
)

__________
(1)
Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract.
(2)
Cash collateral pledged excludes amounts that represent legal settlement of the derivative contracts.





Schedule of notional amounts of outstanding derivative positions
 
 
 
Cash Flow
 
Fair Value
 
Trading
 
Total
 
 
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Notional Values
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
 
$
1,150,518

 
$
1,280,367

 
$
5,031,429

 
$
3,137,965

 
$
3,744,917

 
$
1,577,978

 
$
9,926,864

 
$
5,996,310
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
As of December 31, 2019 and 2018, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:
Line Item in the Balance Sheet in Which the Hedged Item is Included:
 
Carrying Amount of the Hedged Assets/(Liabilities)
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
 
 
December 31,
 
December 31,
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Deposits
 
$
(5,085,426
)
 
$
(3,114,304
)
 
$
(63,148
)
 
$
14,202
Schedule of derivative instruments performance and location

Impact of Derivatives on the Consolidated Statements of Income

 
 
Years Ended December 31,
 
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
Fair Value Hedges
 
 
 
 
 
 
Interest rate swaps:
Interest recognized on derivatives
 
$
(8,806
)
 
$
(11,642
)
 
$
8,286

Hedged items recorded in interest expense
 
(77,350
)
 
(7,966
)
 
16,155

Derivatives recorded in interest expense
 
77,177

 
8,123

 
(20,115
)
Total
 
$
(8,979
)
 
$
(11,485
)
 
$
4,326

 
 
 
 
 
 
 
Cash Flow Hedges
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense
 
$
2,299

 
$
(1,455
)
 
$
(11,187
)
Total
 
$
2,299

 
$
(1,455
)
 
$
(11,187
)
 
 
 
 
 
 
 
Trading
 
 
 
 
 
 
Interest rate swaps:
 
 
 
 
 
 
Change in fair value of future interest payments recorded in earnings
 
$
19,469

 
$
(1,400
)
 
$
(3,693
)
Total
 
19,469

 
(1,400
)
 
(3,693
)
Total
 
$
12,789

 
$
(14,340
)
 
$
(10,554
)
Schedule of derivative instruments, effect on other comprehensive income (loss)

Impact of Derivatives on the Statements of Changes in Stockholders’ Equity
 
 
Years Ended December 31,
 
 
2019
 
2018
 
2017
Amount of gain (loss) recognized in other comprehensive income (loss)
 
$
(36,115
)
 
$
10,452

 
$
8,008

Amount of gain (loss) reclassified in interest expense
 
2,299

 
(1,455
)
 
(11,187
)
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit
 
$
(38,414
)
 
$
11,907

 
$
19,195