Derivative Instruments and Balance Sheet Offsetting (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018						December 31, 2017
			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	$	820,000	$	21,067	$	—	$	620,000	$	5,899	$	—
Total risk management purposes	820,000		21,067		—		620,000		5,899		—
Customer-initiated and mortgage banking derivatives:
Customer-initiated derivatives	1,960,013		21,390		21,703		1,365,119		9,376		10,139
Foreign exchange forwards	934		3		3		—		—		—
Forward contracts related to mortgage loans to be delivered for sale	169,554		760		—		115,996		—		34
Interest rate lock commitments	98,516		1,081		—		71,003		1,222		—
Power Equity CD	37,501		1,260		1,260		38,807		2,184		2,184
Total customer-initiated and mortgage banking derivatives	2,266,518		24,494		22,966		1,590,925		12,782		12,357
Total gross derivatives	$	3,086,518	$	45,561	$	22,966	$	2,210,925	$	18,681	$	12,357

⁽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 $272 thousand at September 30, 2018 and $809 thousand at December 31, 2017.

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) 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)	2018			2017			2018			2017
Forward contracts related to mortgage loans to be delivered for sale	Net gain on sale of loans and other mortgage banking revenue	$	1,185		$	43		$	794		$	25
Interest rate lock commitments	Net gain on sale of loans and other mortgage banking revenue	(904		)	(198		)	(141		)	843
Foreign exchange forwards	Other noninterest income	—			5			—			5
Customer-initiated derivatives	Other noninterest income	84			(39		)	450			(820		)
Total gain (loss) recognized in income		$	365		$	(189	)	$	1,103		$	53

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, 2018 and 2017.

(Dollars in thousands)	Amount of gain (loss) recognized in other comprehensive income		Amount of gain (loss) reclassified from other comprehensive income to interest income or expense
Three Months Ended September 30, 2018
Interest rate swaps designated as cash flow hedges	$	4,111	$	662
Three Months Ended September 30, 2017
Interest rate swaps designated as cash flow hedges	751		(575		)
Nine Months Ended September 30, 2018
Interest rate swaps designated as cash flow hedges	$	16,176	$	1,009
Nine months ended September 30, 2017
Interest rate swaps designated as cash flow hedges	694		(984		)

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, 2018
Offsetting derivative assets
Derivative assets (1)	$	21,376	$	—	$	21,376	$	—	$	(26,520	)	$	(5,144	)
Offsetting derivative liabilities
Derivative liabilities (1)	21,648		—		21,648		—		5,150			16,498
December 31, 2017
Offsetting derivative assets
Derivative assets (1)	$	15,228	$	—	$	15,228	$	—	$	—		$	15,228
Offsetting derivative liabilities
Derivative liabilities	10,139		—		10,139		—		1,081			9,058

⁽¹⁾  Amount does not include participated interest rate swaps, forward contracts, interest rate lock commitments and power equity CDs as these instruments are not subject to master netting or similar arrangements.

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, 2018
Offsetting derivative assets
Derivative assets (1)	$	21,376	$	—	$	21,376	$	—	$	(26,520	)	$	(5,144	)
Offsetting derivative liabilities
Derivative liabilities (1)	21,648		—		21,648		—		5,150			16,498
December 31, 2017
Offsetting derivative assets
Derivative assets (1)	$	15,228	$	—	$	15,228	$	—	$	—		$	15,228
Offsetting derivative liabilities
Derivative liabilities	10,139		—		10,139		—		1,081			9,058

⁽¹⁾  Amount does not include participated interest rate swaps, forward contracts, interest rate lock commitments and power equity CDs as these instruments are not subject to master netting or similar arrangements.