Derivative Instruments and Balance Sheet Offsetting (Tables)

6 Months Ended

Jun. 30, 2019

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. 

	June 30, 2019						December 31, 2018
			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	$	1,145,000	$	606	$	25,060	$	820,000	$	10,148	$	3,278
Total risk management purposes	1,145,000		606		25,060		820,000		10,148		3,278
Customer-initiated and mortgage banking derivatives:
Customer-initiated derivatives	2,908,127		69,024		70,707		2,477,640		26,680		27,664
Forward contracts related to mortgage loans to be delivered for sale	165,772		—		661		127,159		—		719
Interest rate lock commitments	149,084		2,687		—		54,848		1,049		—
Power Equity CD	35,295		751		751		36,771		718		718
Total customer-initiated and mortgage banking derivatives	3,258,278		72,462		72,119		2,696,418		28,447		29,101
Total gross derivatives	$	4,403,278	$	73,068	$	97,179	$	3,516,418	$	38,595	$	32,379

⁽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 $1.5 million at June 30, 2019 and $901 thousand at December 31, 2018.

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 June 30,						Six Months Ended June 30,
(Dollars in thousands)	Location of Gain (Loss)	2019			2018			2019			2018
Forward contracts related to mortgage loans to be delivered for sale	Net gain on sale of loans and other mortgage banking revenue	$	(8	)	$	(21	)	$	58		$	(391	)
Interest rate lock commitments	Net gain on sale of loans and other mortgage banking revenue	929			211			1,638			763
Power Equity CD	Other noninterest income	—			—			—			—
Customer-initiated derivatives	Other noninterest income	(409		)	39			(699		)	366
Total gain (loss) recognized in income		$	512		$	229		$	997		$	738

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 six months ended June 30, 2019 and 2018.

(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 June 30, 2019
Interest rate swaps designated as cash flow hedges	$	(21,229	)	$	1,256
Three Months Ended June 30, 2018
Interest rate swaps designated as cash flow hedges	4,102			589
Six Months Ended June 30, 2019
Interest rate swaps designated as cash flow hedges	$	(28,781	)	$	2,544
Six Months Ended June 30, 2018
Interest rate swaps designated as cash flow hedges	12,065			347

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
June 30, 2019
Offsetting derivative assets
Derivative assets (1)	$	69,553	$	—	$	69,553	$	—	$	—		$	69,553
Offsetting derivative liabilities
Derivative liabilities (1)	95,492		—		95,492		—		37,291			58,201
December 31, 2018
Offsetting derivative assets
Derivative assets (1)	$	36,791	$	—	$	36,791	$	—	$	(16,120	)	$	20,671
Offsetting derivative liabilities
Derivative liabilities	30,822		—		30,822		—		430			30,392

⁽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
June 30, 2019
Offsetting derivative assets
Derivative assets (1)	$	69,553	$	—	$	69,553	$	—	$	—		$	69,553
Offsetting derivative liabilities
Derivative liabilities (1)	95,492		—		95,492		—		37,291			58,201
December 31, 2018
Offsetting derivative assets
Derivative assets (1)	$	36,791	$	—	$	36,791	$	—	$	(16,120	)	$	20,671
Offsetting derivative liabilities
Derivative liabilities	30,822		—		30,822		—		430			30,392

⁽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.