Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2016

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:

June 30, 2016
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	0.65	%	5.04	%	$	(547	)
25,000		16-Feb-06	28-Dec-06	28-Dec-16		3 Month LIBOR	0.65	%	5.04	%	(547		)
25,000		9-Dec-08	10-Dec-08	10-Dec-18		3 Month LIBOR	0.66	%	2.94	%	(1,345		)
25,000		1-Apr-16	17-Jan-17	15-Dec-21	(1)	3 Month LIBOR	TBD		1.36	%	(375		)
25,000		1-Apr-16	17-Jan-17	15-Dec-21	(1)	3 Month LIBOR	TBD		1.36	%	(374		)
$	125,000										$	(3,188	)
December 31, 2015
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	0.51	%	5.04	%	$	(1,054	)
25,000		16-Feb-06	28-Dec-06	28-Dec-16		3 Month LIBOR	0.51	%	5.04	%	(1,055		)
25,000		9-Dec-08	10-Dec-08	10-Dec-18		3 Month LIBOR	0.49	%	2.94	%	(1,164		)
$	75,000										$	(3,273	)

(1) In April 2016, the Company entered into two forward starting swaps with notional amounts of $25.0 million each, with the intention of hedging $50.0 million of existing junior subordinated debentures, as the current hedges on this borrowing expire in December 2016.

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
	June 30, 2016
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	194	$	25,764	$	36,089	$	61,431	$	77,242	$	555,329	$	755,855	$	46,820
Pay fixed, receive variable	179	$	25,764	$	36,089	$	61,431	$	77,242	$	555,329	$	755,855	$	(46,723	)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	32	$	54,095	$	—	$	—	$	—	$	—	$	54,095	$	87
Buys U.S. currency, sells foreign currency	32	$	54,095	$	—	$	—	$	—	$	—	$	54,095	$	(72	)
	December 31, 2015
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	171	$	37,732	$	34,424	$	29,629	$	77,041	$	488,110	$	666,936	$	22,467
Pay fixed, receive variable	165	$	37,732	$	34,424	$	29,629	$	77,041	$	488,110	$	666,936	$	(22,462	)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	21	$	38,416	$	—	$	—	$	—	$	—	$	38,416	$	(354	)
Buys U.S. currency, sells foreign currency	21	$	38,416	$	—	$	—	$	—	$	—	$	38,416	$	382

(1) The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

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
		Fair Value at		Fair Value at			Fair Value at		Fair Value at
	Balance Sheet Location	June 30 2016		December 31 2015		Balance Sheet Location	June 30 2016		December 31 2015
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	Other assets	$	—	$	—	Other liabilities	$	3,188	$	3,273
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	Other assets	$	46,820	$	22,470	Other liabilities	$	46,723	$	22,465
Foreign exchange contracts	Other assets	762		602		Other liabilities	747		574
Mortgage Derivatives
Interest rate lock commitments	Other assets	206		233		Other liabilities	—		—
Forward sales agreements	Other assets	330		—		Other liabilities	—		1
		$	48,118	$	23,305		$	47,470	$	23,040
Total		$	48,118	$	23,305		$	50,658	$	26,313

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						Six Months Ended
	June 30						June 30
	2016			2015			2016			2015
	(Dollars in thousands)
Derivatives designated as hedges
Gain (loss) in OCI on derivatives (effective portion), net of tax	$	(144	)	$	382		$	(21	)	$	464
Loss reclassified from OCI into interest expense (effective portion)	$	(640	)	$	(709	)	$	(1,301	)	$	(1,415	)
Loss recognized in income on derivatives (ineffective portion and 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	$	41		$	(4	)	$	113		$	17
Other expense	(18		)	(33		)	(34		)	(51		)
Changes in fair value of mortgage derivatives
Mortgage banking income	190			(299		)	$	304		$	(107	)
Total	$	213		$	(336	)	$	383		$	(141	)