Derivative and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Cumulative Basis Adjustment for Fair Value Hedges

As of September 30, 2019, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges. The Company did not have any derivative instruments at December 31, 2018:

(in thousands)	September 30, 2019
Line Item in the Consolidated Statements of Condition     in which the Hedge Item is Included	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets
Total loans and leases, net(1)	$	2,048,338	$	48,338

(1) These amounts include the amortized cost basis of closed portfolios used to designated hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At September 30, 2019, the amortized cost basis of the closed portfolios used in these hedging relationships was $4.6 billion; the cumulative basis adjustments associated with these hedging relationships was $48.3 million; and the amount of the designated hedged items was $2.0 billion.

Company's derivative financial instruments

The following table sets forth information regarding the Company’s derivative financial instruments at September 30, 2019. The Company had no derivative financial instruments at December 31, 2018.

	September 30, 2019
(in thousands)	Notional Amount		Fair Value
			Other Assets		Other Liabilities
Derivatives designated as hedging instruments:
Interest rate swap	$	2,000,000	$	—	$	—
Total derivatives designated as hedging instruments	$	2,000,000	$	—	$	—

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. The Company had no derivative financial instruments outstanding during 2018:

(in thousands)	For the Three Months Ended September 30, 2019			For the Nine Months Ended September 30, 2019
Derivative – interest rate swap:
Interest income	$	10,016		$	(48,338	)
Hedged item – loans:
Interest income	$	(10,016	)	$	48,338