Derivative and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Notional Amounts and Gross Fair Values of Derivative Assets and Derivative Liabilities

The following table presents notional amounts and gross fair values of all derivative assets and derivative liabilities held by the Corporation:

	June 30, 2016						December 31, 2015
	Notional		Fair Value				Notional		Fair Value
(in thousands)	Amount		Asset		Liability		Amount		Asset		Liability
Gross Derivatives
Subject to master netting arrangements:
Interest rate contracts – designated	$	450,000	$	10,022	$	1,669	$	250,000	$	3,178	$	962
Interest rate swaps – not designated		1,470,266		—		98,682		1,262,964		1		50,491
Equity contracts – not designated		1,180		59		—		1,180		18		—
Total subject to master netting arrangements		1,921,446		10,081		100,351		1,514,144		3,197		51,453
Not subject to master netting arrangements:
Interest rate swaps – not designated		1,470,266		98,021		—		1,262,964		49,998		1
Credit risk contracts – not designated		169,973		47		407		114,753		7		133
Equity contracts – not designated		1,180		—		59		1,180		—		18
Total not subject to master netting arrangements		1,641,419		98,068		466		1,378,897		50,005		152
Total	$	3,562,865	$	108,149	$	100,817	$	2,893,041	$	53,202	$	51,605

Summary of Amounts Reclassified from Accumulated Other Comprehensive Income (AOCI)

The following table shows amounts reclassified from accumulated other comprehensive income (AOCI) for the six months ended June 30, 2016:

(in thousands)	Total		Net of Tax
Reclassified from AOCI to interest income	$	1,368	$	889
Reclassified from AOCI to interest expense		286		186

Derivative Assets

The following table presents information about derivative assets and derivative liabilities that are subject to enforceable master netting arrangements as well as those not subject to enforceable master netting arrangements:

(in thousands)	Gross Amount		Gross Amounts Offset in the Balance Sheet		Net Amount Presented in the Balance Sheet
June 30, 2016
Derivative Assets
Subject to master netting arrangements:
Interest rate contracts
Designated	$	10,022		—	$	10,022
Not designated		—		—		—
Equity contracts – not designated		59		—		59
Not subject to master netting arrangements:
Interest rate contracts – not designated		98,021		—		98,021
Credit contracts – not designated		47		—		47
Total derivative assets	$	108,149		—	$	108,149

December 31, 2015
Derivative Assets
Subject to master netting arrangements:
Interest rate contracts
Designated	$	3,178	—	$	3,178
Not designated		1	—		1
Equity contracts – not designated		18	—		18
Not subject to master netting arrangements:
Interest rate contracts – not designated		49,998	—		49,998
Credit contracts – not designated		7			7
Total derivative assets	$	53,202	—	$	53,202

Derivative Liabilities

The following table presents information about derivative assets and derivative liabilities that are subject to enforceable master netting arrangements as well as those not subject to enforceable master netting arrangements:

(in thousands)	Gross Amount	Gross Amounts Offset in the Balance Sheet	Net Amount Presented in the Balance Sheet
June 30, 2016

Derivative Liabilities
Subject to master netting arrangements:
Interest rate contracts
Designated	$	1,669	—	$	1,669
Not designated		98,682	—		98,682
Not subject to master netting arrangements:
Interest rate contracts – not designated		—	—		—
Credit contracts – not designated		407	—		407
Equity contracts – not designated		59	—		59
Total derivative liabilities	$	100,817	—	$	100,817

                   December 31, 2015                                     

Derivative Liabilities
Subject to master netting arrangements:
Interest rate contracts
Designated	$	962	—	$	962
Not designated		50,491	—		50,491
Not subject to master netting arrangements:
Interest rate contracts – not designated		1	—		1
Credit contracts – not designated		133			133
Equity contracts – not designated		18	—		18
	$	51,605	—	$	51,605

Effect of Corporation's Derivative Financial Instruments on Income Statement

The following table presents the effect of certain of the Corporation’s derivative financial instruments on the income statement:

		Six Months Ended
		June 30,
(in thousands)	Income Statement Location	2016			2015
Interest Rate Contracts	Interest income - loans and leases	$	1,368		$	1,623
Interest Rate Contracts	Interest expense – short-term borrowings		286			—
Interest Rate Swaps	Other income		(168	)		(123	)
Credit Risk Contracts	Other income		(234	)		(105	)

Interest Rate Contracts [Member]

Summary of Key Data Related to Interest Rate

Following is a summary of key data related to interest rate contracts:

(in thousands)	June 30, 2016		December 31, 2015
Notional amount	$	450,000	$	250,000
Fair value included in other assets		10,022		3,178
Fair value included in other liabilities		1,669		962

Interest Rate Swap [Member]

Summary of Key Data Related to Interest Rate

Following is a summary of key data related to interest rate swaps:

(in thousands)	June 30, 2016		December 31, 2015
Notional amount	$	1,470,266	$	1,262,964
Fair value included in other assets		98,021		49,999
Fair value included in other liabilities		98,682		50,492

Collateral Held By Counterparty [Member]

Derivative Assets

The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the balance sheet to the net amounts that would result in the event of offset:

			Amount Not Offset in the Balance Sheet
(in thousands)	Net Amount Presented in the Balance Sheet		Financial Instruments		Cash Collateral		Net Amount
June 30, 2016
Derivative Assets
Interest rate contracts:
Designated	$	10,022	$	6,770	$	3,252		—
Not designated		—		—		—		—
Equity contracts – not designated		59		59		—		—
Total	$	10,081	$	6,829	$	3,252		—

December 31, 2015
Derivative Assets
Interest rate contracts:
Designated	$	3,178	$	1,516	$	1,662	—
Not designated		1		1		—	—
Equity contracts – not designated		18		18		—	—
Total	$	3,197	$	1,535	$	1,662	—

Derivative Liabilities

The following table presents a reconciliation of the net amounts of derivative assets and derivative liabilities presented in the balance sheet to the net amounts that would result in the event of offset:

		Amount Not Offset in the Balance Sheet
(in thousands)	Net Amount Presented in the Balance Sheet	Financial Instruments	Cash Collateral	Net Amount
June 30, 2016

Derivative Liabilities
Interest rate contracts:
Designated	$	1,669	$	—	$	1,669	$	—
Not designated		98,682		34,305		62,887		1,490
Total	$	100,351	$	34,305	$	64,556	$	1,490
December 31, 2015

Derivative Liabilities
Interest rate contracts:
Designated	$	962	$	792	$	170	$	—
Not designated		50,491		24,579		24,632		1,280
Total	$	51,453	$	25,371	$	24,802	$	1,280