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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Financial Instruments

The following table sets forth information regarding the Company’s derivative financial instruments at September 30, 2016:

 

     September 30, 2016  
     Notional      Unrealized (1)  
(in thousands)    Amount      Gain      Loss  

Treasury options

    $ 440,000       $ —         $ 378   

Eurodollar futures

      175,000         12         46   

Swaps

      250,000         1,917         —     

Forward commitments to sell loans/mortgage-backed securities

      1,255,010         56         5,175   

Forward commitments to buy loans/mortgage-backed securities

      950,010         2,886         —     

Interest rate lock commitments

      671,702         6,934         —     
  

 

 

     

 

 

     

 

 

  

Total derivatives

    $ 3,741,722       $ 11,805       $ 5,599   
  

 

 

     

 

 

     

 

 

  

 

(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:

 

     (Loss) Gain Included in Mortgage Banking Income  
     For the Three Months Ended
September 30,		      For the Nine Months Ended
September 30,		  
(in thousands)    2016      2015      2016      2015  

Treasury options

    $ (6,245 )     $ 2,485       $ 3,619       $ (2,589 ) 

Treasury and Eurodollar futures

      17         1,134         (38 )       1,495   

Swaps

      (1,751 )       —           2,427         —     

Forward commitments to buy/sell loans/mortgage-backed securities

      1,768         294         48         4,084   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total (loss) gain

    $ (6,211 )     $ 3,913       $ 6,056       $ 2,990   
  

 

 

     

 

 

     

 

 

     

 

 

  

 
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, 2016  
(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		      Gross Amounts Not
Offset in the
Consolidated Statement
of Condition		      Net
Amount		  
            Financial
Instruments		      Cash
Collateral
Received		     

Derivatives

    $ 14,467       $ 2,864       $ 11,603       $ —         $ —         $ 11,603   

 

(1) Includes $2.7 million to purchase Treasury options.

 

     December 31, 2015  
(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		      Gross Amounts Not
Offset in the
Consolidated Statement
of Condition		      Net
Amount		  
            Financial
Instruments		      Cash
Collateral
Received		     

Derivatives

    $ 5,743       $ 1,024       $ 4,719       $ —         $ —         $ 4,719   

 

(1) Includes $1.9 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, 2016  
(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		      Gross Amounts Not
Offset in the
Consolidated Statement
of Condition		      Net
Amount		  
            Financial
Instruments		      Cash
Collateral
Pledged		     

Derivatives

    $ 5,599       $ 5,386       $ 213       $ —         $ —         $ 213   
     December 31, 2015  
(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		      Gross Amounts Not
Offset in the
Consolidated Statement
of Condition		      Net
Amount		  
            Financial
Instruments		      Cash
Collateral
Pledged		     

Derivatives

    $ 4,322       $ 3,986       $ 336       $ —         $ —         $ 336