DERIVATIVE FINANCIAL INSTRUMENTS AND BALANCE SHEET OFFSETTING (Tables)

9 Months Ended

Sep. 30, 2014

DERIVATIVE FINANCIAL INSTRUMENTS AND BALANCE SHEET OFFSETTING

Notional and fair values of derivative instruments

	Fair Values of Derivative Instruments
	September 30, 2014						December 31, 2013
	Notional		Derivative		Derivative		Notional		Derivative		Derivative
	Amount		Assets (1)		Liabilities (1)		Amount		Assets (1)		Liabilities (1)
	(In thousands)
Derivatives designated as hedging instruments:
Interest rate swaps on certificates of deposit—fair value	$	135,000	$	—	$	12,824	$	135,000	$	—	$	16,906
Total derivatives designated as hedging instruments	$	135,000	$	—	$	12,824	$	135,000	$	—	$	16,906
Derivatives not designated as hedging instruments:
Foreign exchange options	$	85,614	$	6,155	$	—	$	85,614	$	6,290	$	—
Embedded derivative liabilities	47,968		—		3,426		51,505		—		3,655
Interest rate swaps and caps	4,677,429		29,170		28,238		3,834,072		28,078		26,352
Foreign exchange contracts	715,209		9,204		9,598		635,428		6,181		3,349
Total derivatives not designated as hedging instruments	$	5,526,220	$	44,529	$	41,262	$	4,606,619	$	40,549	$	33,356

⁽¹⁾ Derivative assets are included in other assets. Derivative liabilities are included in other liabilities and deposits.

Gains (losses) on derivative instruments

	Location in	Three Months Ended						Nine Months Ended
	Consolidated	September 30,						September 30,
	Statements of Income	2014			2013			2014			2013
					(In thousands)
Derivatives designated as hedging instruments
Interest rate swaps on certificates of deposit—fair value	Interest expense	$	(1,668	)	$	(1,481	)	$	4,082		$	(6,196	)
	Total net (loss) gain	$	(1,668	)	$	(1,481	)	$	4,082		$	(6,196	)
Derivatives not designated as hedging instruments
Foreign exchange options	Noninterest income	$	37		$	234		$	91		$	472
Foreign exchange options	Noninterest expense	(5		)	7			(2		)	13
Interest rate swaps and caps	Noninterest income	272			(968		)	(794		)	1,112
Foreign exchange contracts	Noninterest income	(597		)	2,568			(3,226		)	1,806
	Total net (loss) gain	$	(293	)	$	1,841		$	(3,931	)	$	3,403

Schedule of gross derivatives, resale agreements, repurchase agreements and the respective collateral received or pledged in the form of other financial instruments, which are generally marketable securities

	As of September 30, 2014
	(In thousands)
						Net Amounts of
			Gross Amounts			Assets Presented		Gross Amounts Not Offset on the
	Gross Amounts		Offset on the			on the		Consolidated Balance Sheets
Assets	of Recognized Assets		Consolidated Balance Sheets			Consolidated Balance Sheets		Financial Instruments			Collateral Received			Net Amount
Derivatives	$	17,556	$	—		$	17,556	$	(12,812	)(1)	$	(933	)(3)	$	3,811
Resale Agreements	$	1,675,000	$	(200,000	)	$	1,475,000	$	(350,000	)(2)	$	(1,092,575	)(4)	$	32,425
						Net Amounts of
			Gross Amounts			Liabilities		Gross Amounts Not Offset on the
	Gross Amounts		Offset on the			Presented on the		Consolidated Balance Sheets
Liabilities	of Recognized Liabilities		Consolidated Balance Sheets			Consolidated Balance Sheets		Financial Instruments			Collateral Posted			Net Amount
Derivatives	$	42,432	$	—		$	42,432	$	(12,812	)(1)	$	(29,607	)(5)	$	13
Repurchase Agreements	$	1,005,106	$	(200,000	)	$	805,106	$	(350,000	)(2)	$	(455,106	)(6)	$	—
	As of December 31, 2013
	(In thousands)
						Net Amounts of
			Gross Amounts			Assets Presented		Gross Amounts Not Offset on the
	Gross Amounts		Offset on the			on the		Consolidated Balance Sheets
Assets	of Recognized Assets		Consolidated Balance Sheets			Consolidated Balance Sheets		Financial Instruments			Collateral Received			Net Amount
Derivatives	$	16,043	$	—		$	16,043	$	(11,363	)(1)	$	(4,680	)(3)	$	—
Resale Agreements	$	1,400,000	$	—		$	1,400,000	$	(495,000	)(2)	$	(905,000	)(4)	$	—
						Net Amounts of
			Gross Amounts			Liabilities		Gross Amounts Not Offset on the
	Gross Amounts		Offset on the			Presented on the		Consolidated Balance Sheets
Liabilities	of Recognized Liabilities		Consolidated Balance Sheets			Consolidated Balance Sheets		Financial Instruments			Collateral Posted			Net Amount
Derivatives	$	33,849	$	—		$	33,849	$	(11,363	)(1)	$	(22,486	)(5)	$	—
Repurchase Agreements	$	995,000	$	—		$	995,000	$	(495,000	)(2)	$	(500,000	)(6)	$	—

⁽¹⁾ Represents the netting of derivative receivable and payable balance for the same counterparty under enforceable master netting arrangements if the Company has elected to net.

⁽²⁾ Includes financial instruments subject to enforceable master netting arrangements that are not permitted to be offset under ASC 210-20-45 but would be eligible for offsetting to the extent an event of default has occurred.

⁽³⁾ Represents cash and securities received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements. Includes approximately $933 thousand of cash collateral received as of September 30, 2014.

⁽⁴⁾ Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty.

⁽⁵⁾ Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements. Includes approximately $6.5 million and $187 thousand of cash collateral posted as of September 30, 2014 and December 31, 2013, respectively.

⁽⁶⁾ Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability owed to each counterparty.