Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

The following table sets forth information regarding the Company’s derivative financial instruments at September 30, 2015:


	September 30, 2015
	Notional		Unrealized ⁽¹⁾
(in thousands)	Amount		Gain		Loss
Treasury options	$	535,000	$	226	$	17
Treasury futures		125,000		879		--
Eurodollar futures		100,000		--		94
Forward commitments to sell loans/mortgage-backed securities		725,000		--		7,321
Forward commitments to buy loans/mortgage-backed securities		500,000		6,126		--
Interest rate lock commitments		484,634		5,244		--

Total derivatives	$	2,469,634	$	12,475	$	7,432

(1)	Derivatives in a net gain position are recorded as “Other assets” and derivatives in a net loss position are recorded as “Other liabilities” in the Consolidated Statements of Condition.

Effect of Derivative Instruments on Consolidated Statements of Income and Comprehensive Income

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the periods indicated:


	Gain (Loss) Included in Mortgage Banking Income
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2015		2014		2015		2014
Treasury options		$2,485		$(2,580)		$(2,589)		$(1,525)
Treasury and Eurodollar futures		1,134		(6)		1,495		100
Forward commitments to buy/sell loans/mortgage-backed securities		294		1,615		4,084		8,148

Total gain/(loss)		$3,913		$ (971)		$2,990		$6,723

Effect of Master Netting Arrangements on Presentation of Derivative Assets and Liabilities in Consolidated Statements of Financial Condition

The following tables present the effect of the master netting arrangements on the presentation of the derivative assets in the Consolidated Statements of Condition as of the dates indicated:

September 30, 2015

Gross Amounts Not
Offset in the
Consolidated Statement
of Condition

(in thousands)

Gross
Amount of
Recognized
Assets ⁽¹⁾

Gross Amount
Offset in the
Statement of
Condition

Net Amount of
Assets Presented
in the Statement
of Condition

Financial
Instruments

Cash
Collateral
Received

Net
Amount

Derivatives

$16,208

$6,971

$9,237

$--

$9,237

(1)	Includes $3.7 million to purchase Treasury options.

December 31, 2014

Gross Amounts Not
Offset in the
Consolidated Statement
of Condition

(in thousands)

Gross
Amount of
Recognized
Assets ⁽¹⁾

Gross Amount
Offset in the
Statement of
Condition

Net Amount of
Assets Presented
in the Statement
of Condition

Financial
Instruments

Cash
Collateral
Received

Net
Amount

Derivatives

$15,481

$7,198

$8,283

$--

$8,283

(1)	Includes $2.6 million to purchase Treasury options.

The following tables present the effect the master netting arrangements had on the presentation of the derivative liabilities in the Consolidated Statements of Condition as of the dates indicated:

September 30, 2015

Gross Amounts Not
Offset in the
Consolidated Statement
of Condition

(in thousands)

Gross
Amount of
Recognized
Liabilities

Gross Amount
Offset in the
Statement of
Condition

Net Amount of
Liabilities
Presented in the
Statement of
Condition

Financial
Instruments

Cash
Collateral
Pledged

Net
Amount

Derivatives

$7,432

$6,765

$667

$--

$667

December 31, 2014

Gross Amounts Not
Offset in the
Consolidated Statement
of Condition

(in thousands)

Gross
Amount of
Recognized
Liabilities

Gross Amount
Offset in the
Statement of
Condition

Net Amount of
Liabilities
Presented in the
Statement of
Condition

Financial
Instruments

Cash
Collateral
Pledged

Net
Amount

Derivatives

$8,208

$7,696

$512

$--

$512