Derivative Instruments and Balance Sheet Offsetting (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule reflecting the amount and fair value of risk management derivatives and mortgage banking and customer initiated derivatives

The following table presents the notional amount and fair value of the Corporation’s derivative instruments held or issued in connection with customer-initiated and mortgage banking activities. 

	September 30, 2017						December 31, 2016
			Fair Value						Fair Value
(Dollars in thousands)	Notional Amount (1)		Gross Derivative Assets (2)		Gross Derivative Liabilities (2)		Notional Amount (1)		Gross Derivative Assets (2)		Gross Derivative Liabilities (2)
Risk management purposes:
Derivatives designated as hedging instruments:
Interest rate swaps	$	520,000	$	1,174	$	109	$	—	$	—	$	—
Total risk management purposes	520,000		1,174		109		—		—		—
Customer-initiated and mortgage banking derivatives:
Customer-initiated derivatives	1,059,921		8,719		9,274		600,598		4,406		4,141
Foreign exchange forwards	4,000		60		55		—		—		—
Forward contracts related to mortgage loans to be delivered for sale	180,961		660		—		140,155		635		—
Interest rate lock commitments	106,649		1,799		—		76,034		956		—
Power Equity CD	38,748		2,301		2,301		36,807		2,218		2,218
Total customer-initiated and mortgage banking derivatives	1,390,279		13,539		11,630		853,594		8,215		6,359
Total gross derivatives	$	1,910,279	$	14,713	$	11,739	$	853,594	$	8,215	$	6,359

(1) Notional or contract amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement.  These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Statements of Financial Position.

(2) Derivative assets are included within "Interest receivable and other assets" and derivative liabilities are included within "Interest payable and other liabilities" on the Consolidated Statements of Financial Position. Included in the fair value of the derivative assets are credit valuation adjustments for counterparty credit risk totaling $576 thousand at September 30, 2017 and $99 thousand at December 31, 2016.

Schedule reflecting the net gains (losses) relating to derivative instruments related to the changes in fair value

The following table presents the net gains (losses) recorded in accumulated other comprehensive income and the Consolidated Statements of Income relating to interest rate swaps designated as cash flow hedges for the three and nine months ended September 30, 2017.

(Dollars in thousands)	Amount of gain (loss) recognized in other comprehensive income (Effective portion)		Amount of gain (loss) reclassified from other comprehensive income to interest income or expense (Effective portion)			Amount of gain (loss) recognized in other noninterest income (Ineffective portion)
Three Months Ended September 30, 2017
Interest rate swaps designated as cash flow hedges	$	751	$	(575	)	$	(3	)
Nine Months Ended September 30, 2017
Interest rate swaps designated as cash flow hedges	$	694	$	(984	)	$	(3	)

The following table presents the net gains (losses) related to derivative instruments reflecting the changes in fair value.

		Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	Location of Gain (Loss)	2017			2016			2017			2016
Forward contracts related to mortgage loans to be delivered for sale	Net gain (loss) on sale of loans and other mortgage banking revenue	$	43		$	(156	)	$	25		$	(798	)
Interest rate lock commitments	Net gain (loss) on sale of loans and other mortgage banking revenue	(198		)	(179		)	843			307
Foreign exchange forwards	Other noninterest income	5			—			5			—
Customer-initiated derivatives	Other noninterest income	(39		)	(60		)	(820		)	(60		)
Total gain (loss) recognized in income		$	(189	)	$	(395	)	$	53		$	(551	)

Schedule of the Company's financial instruments eligible for offset, offsetting assets

The tables below present information about the Corporation’s financial instruments that are eligible for offset.

							Gross amounts not offset in the statements of financial position
(Dollars in thousands)	Gross amounts recognized		Gross amounts offset in the statements of financial condition		Net amounts presented in the statements of financial position		Financial instruments		Collateral (received)/posted		Net Amount
September 30, 2017
Offsetting derivative assets
Derivative assets	$	9,932	$	—	$	9,932	$	—	$	—	$	9,932
Offsetting derivative liabilities
Derivative liabilities	9,438		—		9,438		—		7,161		2,277
December 31, 2016
Offsetting derivative assets
Derivative assets	$	4,405	$	—	$	4,405	$	—	$	—	$	4,405
Offsetting derivative liabilities
Derivative liabilities	4,141		—		4,141		—		2,550		1,591

Schedule of the Company's financial instruments eligible for offset, offsetting liabilities

The tables below present information about the Corporation’s financial instruments that are eligible for offset.

							Gross amounts not offset in the statements of financial position
(Dollars in thousands)	Gross amounts recognized		Gross amounts offset in the statements of financial condition		Net amounts presented in the statements of financial position		Financial instruments		Collateral (received)/posted		Net Amount
September 30, 2017
Offsetting derivative assets
Derivative assets	$	9,932	$	—	$	9,932	$	—	$	—	$	9,932
Offsetting derivative liabilities
Derivative liabilities	9,438		—		9,438		—		7,161		2,277
December 31, 2016
Offsetting derivative assets
Derivative assets	$	4,405	$	—	$	4,405	$	—	$	—	$	4,405
Offsetting derivative liabilities
Derivative liabilities	4,141		—		4,141		—		2,550		1,591