Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts and Fair Values of Derivatives Outstanding

The table below provides a summary of the notional amounts and fair values (presented on a gross basis) of derivatives outstanding:

						Fair Values (1)
		Notional Amounts				Assets				Liabilities
(in millions)	Type of Hedge	March 31, 2020		Dec 31, 2019		March 31, 2020		Dec 31, 2019		March 31, 2020		Dec 31, 2019
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	9,207.6	$	8,847.7	$	905.4	$	320.5	$	—	$	13.9
Institutional counterparties	N/A	9,211.4		8,851.8		27.5		17.1		184.5		78.2
Interest rate caps:
Commercial customers	N/A	253.4		246.0		3.6		1.6		—		0.1
Institutional counterparties	N/A	253.4		246.0		—		0.1		3.6		1.6
Risk participation agreements	N/A	910.3		882.8		—		—		0.5		0.1
Foreign exchange contracts	N/A	237.7		180.4		8.6		1.2		9.2		1.8
Forward commitments to sell residential mortgage loans	N/A	77.7		23.3		0.6		0.5		—		—
Interest rate-lock commitments on residential mortgage loans	N/A	53.8		33.6		—		—		0.7		0.5
Total						945.7		341.0		198.5		96.2
Derivatives Designated as Hedging Instruments:
Interest rate swaps:
FHLB advances	Cash flow	550.0		—		—		—		—		—
Subordinated notes	Fair value	375.0		375.0		—		—		—		—
Loans	Cash flow	210.0		210.0		—		—		—		—
Total						—		—		—		—
Total fair value of derivatives						$	945.7	$	341.0	$	198.5	$	96.2

(1)Assets are recorded in other assets and liabilities are recorded in other liabilities.

Impact of Derivatives on Pre-Tax Income and Accumulated Other Comprehensive Loss

The following table summarizes the impact of People’s United’s derivatives on pre-tax income and AOCL:

	Type of Hedge	Amount of Pre-Tax Gain (Loss) Recognized in Earnings (1)				Amount of Pre-Tax Gain (Loss) Recognized in AOCL
Three months ended March 31 (in millions)		2020		2019		2020		2019
Derivatives Not Designated as Hedging Instruments:
Interest rate swaps:
Commercial customers	N/A	$	613.6	$	111.6	$	—	$	—
Institutional counterparties	N/A	(603.7)		(108.8)		—		—
Interest rate caps:
Commercial customers	N/A	2.0		1.1		—		—
Institutional counterparties	N/A	(2.0)		(1.2)		—		—
Foreign exchange contracts	N/A	0.1		0.2		—		—
Risk participation agreements	N/A	(0.6)		0.1		—		—
Forward commitments to sell residential mortgage loans	N/A	0.2		—		—		—
Interest rate-lock commitments on residential mortgage loans	N/A	(0.2)		—		—		—
Total		9.4		3.0		—		—
Derivatives Designated as Hedging Instruments:
Interest rate swaps	Fair value	0.4		(0.3)		—		—
Interest rate swaps	Cash flow	—		(0.4)		0.1		0.6
Interest rate locks (2)	Cash flow	—		—		—		—
Total		0.4		(0.7)		0.1		0.6
Total		$	9.8	$	2.3	$	0.1	$	0.6

(1)Amounts recognized in earnings are recorded in interest income, interest expense or other non-interest income for derivatives designated as hedging instruments and in other non-interest income for derivatives not designated as hedging instruments.

(2)Income totaled less than $0.1 million for both periods.