Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes

The following table reflects the Company’s derivative positions for the periods indicated below for interest rate swaps which qualify as cash flow hedges for accounting purposes:

September 30, 2014
Notional Amount		Trade Date	Effective Date	Maturity Date	Receive (Variable) Index	Current  Rate Received		Pay Fixed Swap Rate		Fair Value
(Dollars in thousands)
$	25,000	16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.23	%	5.04	%	$	(2,318	)
25,000		16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.23	%	5.04	%	(2,319		)
25,000		9-Dec-08	10-Dec-08	10-Dec-18	3 Month LIBOR	0.23	%	2.94	%	(1,286		)
$	75,000									$	(5,923	)
December 31, 2013
Notional Amount		Trade Date	Effective Date	Maturity Date	Receive (Variable) Index	Current  Rate Received		Pay Fixed Swap Rate		Fair Value
				(Dollars in thousands)
$	25,000	16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.24	%	5.04	%	$	(3,151	)
25,000		16-Feb-06	28-Dec-06	28-Dec-16	3 Month LIBOR	0.24	%	5.04	%	(3,152		)
25,000		9-Dec-08	10-Dec-08	10-Dec-18	3 Month LIBOR	0.24	%	2.94	%	(1,493		)
50,000		17-Nov-09	20-Dec-10	20-Dec-14	3 Month LIBOR	0.25	%	3.04	%	(1,341		)
25,000		5-May-11	10-Jun-11	10-Jun-15	3 Month LIBOR	0.24	%	1.71	%	(493		)
$	150,000									$	(9,630	)

Summary of customer related derivative positions, not designated as hedging

The following table reflects the Company’s customer related derivative positions for the periods indicated below for those derivatives not designated as hedging:

		Notional Amount Maturing
	Number of  Positions (1)	Less than 1 year		Less than 2 years	Less than 3 years	Less than 4 years	Thereafter	Total		Fair Value
	September 30, 2014
	(Dollars in thousands)
Loan level derivatives
Receive fixed, pay variable	172	$	47,702	85,305	27,960	44,931	382,700	$	588,598	$	12,300
Pay fixed, receive variable	166	$	47,702	85,305	27,960	44,931	382,700	$	588,598	$	(12,309	)
Foreign exchange contracts
Buys foreign currency, sells US currency	27	$	64,914	—	—	—	—	$	64,914	$	4,040
Buys US currency, sells foreign currency	27	$	64,914	—	—	—	—	$	64,914	$	(4,012	)
	December 31, 2013
	(Dollars in thousands)
Loan level derivatives
Receive fixed, pay variable	168	$	48,882	97,975	42,957	42,116	329,554	$	561,484	$	9,484
Pay fixed, receive variable	162	$	48,882	97,975	42,957	42,116	329,554	$	561,484	$	(9,523	)
Foreign exchange contracts
Buys foreign currency, sells US currency	6	$	11,367	—	—	—	—	$	11,367	$	396
Buys US currency, sells foreign currency	6	$	11,367	—	—	—	—	$	11,367	$	(390	)

(1) The Company may enter

Fair value of derivative financial instruments as well as their classification on the balance sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet at the periods indicated:

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Fair Value at September 30, 2014		Fair Value at December 31, 2013		Balance Sheet Location	Fair Value at September 30, 2014		Fair Value at December 31, 2013
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	Other assets	$	—	$	—	Other liabilities	$	5,923	$	9,630
Derivatives not designated as hedges
Customer Related Positions:
Loan level derivatives	Other assets	$	14,820	$	16,301	Other liabilities	$	14,829	$	16,340
Foreign exchange contracts	Other assets	4,040		396		Other liabilities	4,012		390
Mortgage Derivatives:
Interest rate lock commitments	Other assets	280		204		Other liabilities	—		—
Forward TBA mortgage contracts	Other assets	—		64		Other liabilities	14		—
Forward sales agreements	Other assets	10		—		Other liabilities	—		35
Total		$	19,150	$	16,965		$	18,855	$	16,765

Effect of derivative financial instruments included in OCI and current earnings

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2014			2013			2014			2013
	(Dollars in thousands)						(Dollars in thousands)
Derivatives designated as hedges
Gain in OCI on derivatives (effective portion), net of tax	$	578		$	455		$	2,085		$	2,907
Loss reclassified from OCI into interest expense (effective portion)	$	726		$	1,464		$	2,937		$	4,322
Loss reclassified from OCI into noninterest expense (loss on termination)	$	—		$	—		$	1,121		$	—
Loss recognized in income on derivatives (ineffective portion & amount excluded from effectiveness testing)
Interest expense	$	—		$	—		$	—		$	—
Other expense	—			—			—			—
Total	$	—		$	—		$	—		$	—
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	10		$	1		$	54		$	27
Other expense	(1		)	(27		)	(3		)	(108		)
Changes in fair value of mortgage derivatives
Mortgage banking income	42			(1,101		)	43			247
Total	$	51		$	(1,127	)	$	94		$	166