XML 146 R50.htm IDEA: XBRL DOCUMENT v3.19.3
Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments

Derivative instruments, recognized at fair value within other assets or other liabilities were as follows:
 
At September 30, 2019
 
 
 
Fair Value
(In thousands)
Notional Amount(1)
 
Derivative Assets
 
Derivative Liabilities
Derivatives designated as hedging instruments
 
 
 
 
 
Interest rate contract
$
150,000

 
$
—

 
$
11

Forward foreign exchange contracts
171,075

 
1,252

 
—

Total derivatives designated as hedging instruments
$
321,075

 
$
1,252

 
$
11

Derivatives not designated as hedging instruments
 
 
 
 
 
Interest rate contracts
$
4,694,964

 
$
130,391

 
$
101,899

Forward foreign exchange contracts
291,999

 
414

 
315

Interest rate lock commitments
266,949

 
4,554

 
113

Forward loan sales commitments
218,061

 
166

 
253

Power Equity CDs
31,870

 
617

 
617

Swap agreement
12,644

 
—

 
356

Total derivatives not designated as hedging instruments
$
5,516,487

 
$
136,142

 
$
103,553

Total derivatives before netting
$
5,837,562

 
137,394

 
103,564

Netting(2)
 
 
(2,152
)
 
(93,785
)
Total derivatives, net
 
 
$
135,242

 
$
9,779

 
At December 31, 2018
 
 
 
Fair Value
(In thousands)
Notional Amount(1)
 
Derivative Assets
 
Derivative Liabilities
Derivatives designated as hedging instruments
 
 
 
 
 
Interest rate contract
$
150,000

 
$
393

 
$
—

Forward foreign exchange contracts
157,271

 
2,980

 
—

Total derivatives designated as hedging instruments
$
307,271

 
$
3,373

 
$
—

Derivatives not designated as hedging instruments
 
 
 
 
 
Interest rate contracts
$
1,095,449

 
$
7,516

 
$
3,732

Forward foreign exchange contracts
254,274

 
3,709

 
13

Interest rate lock commitments
28,007

 
652

 
28

Swap agreement
13,020

 
—

 
583

Total derivatives not designated as hedging instruments
$
1,390,750

 
$
11,877

 
$
4,356

Total derivatives before netting
 
 
15,250

 
4,356

Netting(2)
 
 
(6,982
)
 
(991
)
Total derivatives, net
 
 
$
8,268

 
$
3,365

(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 Condition.
(2)
Includes netting of derivative asset and liability balances and related cash collateral, where counterparty netting agreements are in place.

Schedule of Gross Amounts Recognized, Gross Amounts Offset and Net Amount Presented The gross amounts recognized, gross amounts offset and net amount presented of derivative instruments were as follows:
 
At September 30, 2019
(In thousands)
Gross Amounts Recognized
 
Gross Amounts
 Offset(1)
 
Net Amount Presented
Derivative assets
 
 
 
 
 
Interest rate contracts
$
130,391

 
$
(312
)
 
$
130,079

Forward foreign exchange contracts
1,666

 
(1,666
)
 
—

Interest rate lock commitments
4,554

 
(8
)
 
4,546

Forward loan sales commitments
166

 
(166
)
 
—

Power Equity CDs
617

 
—

 
617

Total derivative assets
$
137,394

 
$
(2,152
)
 
$
135,242

Derivative liabilities
 
 
 
 
 
Interest rate contracts
$
101,910

 
$
(93,099
)
 
$
8,811

Forward foreign exchange contracts
315

 
(156
)
 
159

Interest rate lock commitments
113

 
(8
)
 
105

Forward loan sales commitments
253

 
(166
)
 
87

Power Equity CDs
617

 
—

 
617

Other contracts
356

 
(356
)
 
—

Total derivative liabilities
$
103,564

 
$
(93,785
)
 
$
9,779

 
At December 31, 2018
(In thousands)
Gross Amounts Recognized
 
Gross Amounts
Offset(1)
 
Net Amount Presented
Derivative assets
 
 
 
 
 
Interest rate contracts
$
7,909

 
$
(395
)
 
$
7,514

Forward foreign exchange contracts
6,689

 
(6,587
)
 
102

Interest rate lock commitments
652

 
—

 
652

Total derivative assets
$
15,250

 
$
(6,982
)
 
$
8,268

Derivative liabilities
 
 
 
 
 
Interest rate contracts
$
3,732

 
$
(395
)
 
$
3,337

Forward foreign exchange contracts
13

 
(13
)
 
—

Interest rate lock commitments
28

 
—

 
28

Swap agreement
583

 
(583
)
 
—

Total derivative liabilities
$
4,356

 
$
(991
)
 
$
3,365


(1)
Includes the amounts with counterparties subject to enforceable master netting arrangements that have been offset in the Consolidated Statements of Financial Condition.
Amounts Recorded in the Consolidated Statements of Financial Condition Related to the Cumulative Basis Adjustment for the Fair Value Hedge The carrying amount of the hedged subordinated debt, including the cumulative basis adjustment related to the application of fair value hedge accounting, is recorded in long-term borrowings on the Consolidated Statements of Financial Condition and was as follows:
 
Carrying Amount
 of the Hedged Liability
 
Cumulative Amount of
Fair Value Hedging Adjustments
Included in the Carrying Amount
of the Hedged Liability
(In thousands)
At September 30, 2019
 
At December 31, 2018
 
At September 30, 2019
 
At December 31, 2018
Subordinated bank note - 2025
$
153,307

 
$
144,296

 
$
4,682

 
$
(4,165
)
Summary of Gains and Losses Related to the Fair Value Hedge of the Interest Rate Swap and the Offsetting Changes in the Fair Value of the Hedged Debt
The following table summarizes the effect of fair value hedge accounting on the Consolidated Statements of Income for the three and nine months ended September 30, 2019 and 2018.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
2019
 
2018
 
2019
 
2018
Statement of income line where the gain (loss) on the fair value hedge was recorded:
 
 
 
 
 
 
 
Interest expense on borrowings
$
17,115

 
$
10,726

 
$
48,050

 
$
31,850

Gain (loss) on interest rate contract (fair value hedge)
 
 
 
 
 
 
 
Hedged item
$
(2,100
)
 
$
1,206

 
$
(8,847
)
 
$
6,337

Derivative designated as a hedging instrument
2,195

 
(1,165
)
 
8,938

 
(6,621
)
Net income (expense) recognized on fair value hedge in interest expense on borrowings
$
95

 
$
41

 
$
91

 
$
(284
)
Effect of Net Investment Hedges on Accumulated Other Comprehensive Income The effect of net investment hedges on accumulated other comprehensive income was as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
2019
 
2018
 
2019
 
2018
Forward foreign exchange contracts
$
2,170

 
$
(2,537
)
 
$
(3,761
)
 
$
4,637
Summary of Effects of Derivatives not Designated as Hedging Instruments on the Consolidated Statements of Income Certain other interest rate contracts, forward foreign exchange contracts, interest rate lock commitments, Power Equity CDs and other contracts have not been designated as hedging instruments. The effect of these derivatives on the Consolidated Statements of Income was as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
Location of Gain (Loss)
2019
 
2018
 
2019
 
2018
Interest rate contracts(1)
Other noninterest income
$
(19,764
)
 
$
51

 
$
(21,307
)
 
$
157

Forward foreign exchange contracts
Other noninterest expense
3,307

 
(3,706
)
 
(5,302
)
 
8,050

Interest rate lock commitments
Net (losses) gains on sales of loans and leases
337

 
(244
)
 
1,117

 
798

Forward loan sales commitments
Net (losses) gains on sales of loans and leases
(11
)
 
—

 
(11
)
 
—

Swap agreement
Other noninterest income
4

 
(292
)
 
4

 
(274
)
Net gain (loss) recognized
 
$
(16,127
)
 
$
(4,191
)
 
$
(25,499
)
 
$
8,731


(1)
Included in both the three and nine months ended September 30, 2019 is a loss of $17.3 million related to the termination of $1.1 billion of interest rate swaps.