Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2017

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, 2017
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	9-Dec-08	10-Dec-08	10-Dec-18	3 Month LIBOR	1.32	%	2.94	%	$	(407	)
25,000		1-Apr-16	17-Jan-17	15-Dec-21	3 Month LIBOR	1.32	%	1.36	%	568
25,000		1-Apr-16	17-Jan-17	15-Dec-21	3 Month LIBOR	1.32	%	1.36	%	560
25,000		18-Jul-17	15-Aug-17	15-Aug-22	3 Month LIBOR	1.31	%	1.88	%	101
$	100,000									$	822
December 31, 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	9-Dec-08	10-Dec-08	10-Dec-18	3 Month LIBOR	0.95	%	2.94	%	$	(740	)
25,000		1-Apr-16	17-Jan-17	15-Dec-21	3 Month LIBOR	N/A		1.36	%	689
25,000		1-Apr-16	17-Jan-17	15-Dec-21	3 Month LIBOR	N/A		1.36	%	675
$	75,000									$	624

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, 2017
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	238	$	10,533	$	73,428	$	68,458	$	177,864	$	575,721	$	906,004	$	11,271
Pay fixed, receive variable	223	$	10,533	$	73,428	$	68,458	$	177,864	$	575,721	$	906,004	$	(11,272	)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	17	$	32,390	$	3,780	$	—	$	—	$	—	$	36,170	$	1,683
Buys U.S. currency, sells foreign currency	17	$	32,390	$	3,780	$	—	$	—	$	—	$	36,170	$	(1,668	)
	December 31, 2016
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	222	$	30,245	$	21,708	$	63,771	$	165,783	$	567,897	$	849,404	$	12,005
Pay fixed, receive variable	207	$	30,245	$	21,708	$	63,771	$	165,783	$	567,897	$	849,404	$	(12,008	)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	33	$	45,711	$	—	$	—	$	—	$	—	$	45,711	$	(2,250	)
Buys U.S. currency, sells foreign currency	33	$	45,711	$	—	$	—	$	—	$	—	$	45,711	$	2,277

(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	September 30 2017		December 31 2016		Balance Sheet Location	September 30 2017		December 31 2016
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	Other assets	$	1,229	$	1,364	Other liabilities	$	407	$	740
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	Other assets	$	16,991	$	18,629	Other liabilities	$	16,992	$	18,632
Foreign exchange contracts	Other assets	1,809		2,338		Other liabilities	1,794		2,311
Mortgage Derivatives
Interest rate lock commitments	Other assets	274		430		Other liabilities	—		—
Forward sales agreements	Other assets	—		—		Other liabilities	6		233
		$	19,074	$	21,397		$	18,792	$	21,176
Total		$	20,303	$	22,761		$	19,199	$	21,916

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
	2017			2016			2017			2016
	(Dollars in thousands)
Derivatives designated as hedges
Loss in OCI on derivatives (effective portion), net of tax	$	109		$	674		$	8		$	653
Loss reclassified from OCI into interest expense (effective portion)	$	(91	)	$	(648	)	$	(264	)	$	(1,949	)
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	$	7		$	(42	)	$	7		$	71
Other expense	(7		)	(12		)	(17		)	(46		)
Changes in fair value of mortgage derivatives
Mortgage banking income	(33		)	115			71			419
Total	$	(33	)	$	61		$	61		$	444