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Derivatives (Tables)
 12 Months Ended
Dec. 31, 2019
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Fair Values of Derivative Financial Instruments

The table below presents the notional or contractual amounts and fair values of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets at December 31, 2019 and 2018.

 

 

 

 

 

December 31, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

Derivative (1)

 

 

 

 

 

 

 

Derivative (1)

 

(in thousands)

 

Type of Hedge

 

Notional or Contractual Amount

 

 

Assets

 

 

Liabilities

 

 

Notional or Contractual Amount

 

 

 

Assets

 

 

 

Liabilities

 

Derivatives designated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps - variable rate loans

 

Cash Flow

 

$

 

1,175,000

 

 

$

 

24,172

 

 

$

 

337

 

 

$

 

875,000

 

 

$

 

3,954

 

 

$

 

9,173

 

Interest rate swaps - securities

 

Fair Value

 

 

 

441,400

 

 

 

 

1,474

 

 

 

 

1,759

 

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

Interest rate swaps - brokered deposits

 

Fair Value

 

 

 

43,000

 

 

 

 

—

 

 

 

 

9

 

 

 

 

483,110

 

 

 

 

—

 

 

 

 

2,089

 

 

 

 

 

$

 

1,659,400

 

 

$

 

25,646

 

 

$

 

2,105

 

 

$

 

1,358,110

 

 

$

 

3,954

 

 

$

 

11,262

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

N/A

 

$

 

3,759,232

 

 

$

 

54,512

 

 

$

 

55,664

 

 

$

 

2,554,808

 

 

$

 

23,670

 

 

$

 

24,669

 

Risk participation agreements

 

N/A

 

 

 

254,825

 

 

 

 

21

 

 

 

 

45

 

 

 

 

171,222

 

 

 

 

10

 

 

 

 

131

 

Forward commitments to sell  residential mortgage loans

 

N/A

 

 

 

145,623

 

 

 

 

651

 

 

 

 

744

 

 

 

 

77,208

 

 

 

 

110

 

 

 

 

664

 

Interest rate-lock commitments on residential mortgage loans

 

N/A

 

 

 

83,224

 

 

 

 

369

 

 

 

 

375

 

 

 

 

59,119

 

 

 

 

464

 

 

 

 

67

 

Foreign exchange forward contracts

 

N/A

 

 

 

64,632

 

 

 

 

303

 

 

 

 

366

 

 

 

 

37,749

 

 

 

 

751

 

 

 

 

718

 

Visa Class B derivative contract

 

N/A

 

 

 

43,753

 

 

 

 

—

 

 

 

 

5,704

 

 

 

 

43,753

 

 

 

 

—

 

 

 

 

7,304

 

 

 

 

 

$

 

4,351,289

 

 

$

 

55,856

 

 

$

 

62,898

 

 

$

 

2,943,859

 

 

$

 

25,005

 

 

$

 

33,553

 

Total derivatives

 

 

 

$

 

6,010,689

 

 

$

 

81,502

 

 

$

 

65,003

 

 

$

 

4,301,969

 

 

$

 

28,959

 

 

$

 

44,815

 

Less: netting adjustments (2)

 

 

 

 

 

 

 

 

 

 

(27,056

)

 

 

 

(43,914

)

 

 

 

 

 

 

 

 

(11,979

)

 

 

 

(22,588

)

Total derivate assets/liabilities

 

 

 

 

 

 

 

 

$

 

54,446

 

 

$

 

21,089

 

 

 

 

 

 

 

$

 

16,980

 

 

 

$

22,227

 

 

(1)

Derivative assets and liabilities are reported in other assets or other liabilities, respectively, in the consolidated balance sheets.

(2)

Represents balance sheet netting of derivative assets and liabilities for variation margin collateral held or placed with the same central clearing counterparty. See offsetting assets and liabilities for further information.
Effects of Derivative Instruments on the Statement of Income

The effects of derivative instruments on the consolidated statements of income for the years ended December 31, 2019, 2018 and 2017 are presented in the table below. For the years ended December 31, 2019 and 2018, the reduction of interest income attributable to cash flow hedges includes amortization of accumulated other comprehensive loss that resulted from termination of certain interest rate swap contracts.

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

Derivative Instruments:

 

Location of Gain (Loss) Recognized in the Statement of Income:

 

2019

 

2018

 

2017

Fair value hedges- securities

 

Interest income

 

$

1

 

$

—

 

$

—

Cash flow hedges - variable rate loans

 

Interest income

 

 

(4,255)

 

 

(4,497)

 

 

(280)

Fair value hedges - brokered deposits

 

Interest expense

 

 

(1,752)

 

 

(2,343)

 

 

829

All other instruments

 

Other noninterest income

 

 

12,958

 

 

5,368

 

 

5,870

Total

 

 

 

$

6,952

 

$

(1,472)

 

$

6,419
Offsetting Derivative Assets and Liabilities Subject to Master Netting Arrangements Offsetting information in regards to all derivative assets and liabilities, including accrued interest subject to these master netting agreements at December 31, 2019 and 2018 is presented in the following tables:

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Amounts

Offset in the

 

 

Net Amounts

Presented in

the

 

 

Gross Amounts Not Offset in the

Statement of Financial Position

 

(in thousands)

 

Gross

Amounts

Recognized

 

 

Statement of

Financial

Position

 

 

Statement of

Financial

Position

 

 

Financial

Instruments

 

 

Cash

Collateral

 

 

Net

Amount

 

Derivative Assets

 

$

 

27,938

 

 

$

 

(27,915

)

 

$

 

23

 

 

$

 

23

 

 

$

 

-

 

 

$

 

-

 

Derivative Liabilities

 

$

 

56,523

 

 

$

 

(44,570

)

 

$

 

11,953

 

 

$

 

23

 

 

$

 

35,113

 

 

$

 

(23,183

)

 

As of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Amounts

Offset in the

 

 

Net Amounts

Presented in

the

 

 

Gross Amounts Not Offset in the

Statement of Financial Position

 

(in thousands)

 

Gross

Amounts

Recognized

 

 

Statement of

Financial

Position

 

 

Statement of

Financial

Position

 

 

Financial

Instruments

 

 

Cash

Collateral

 

 

Net

Amount

 

Derivative Assets

 

$

 

16,167

 

 

$

 

(12,842

)

 

$

 

3,325

 

 

$

 

1,846

 

 

$

 

—

 

 

$

 

1,479

 

Derivative Liabilities

 

$

 

23,811

 

 

$

 

(21,651

)

 

$

 

2,160

 

 

$

 

1,846

 

 

$

 

2,871

 

 

$

 

(2,557

)