Derivative Instruments and Other Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Outstanding Derivative Instruments

Information pertaining to outstanding derivative instruments is as follows:



		Asset Derivatives Fair Value					Liability Derivatives Fair Value
(Dollars in thousands)	Balance Sheet Location	March 31, 2016		December 31, 2015		Balance Sheet Location	March 31, 2016		December 31, 2015
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	—	$	58	Other liabilities	$	6,292	$	—
Total derivatives designated as hedging instruments under ASC Topic 815		$	—	$	58		$	6,292	$	—
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	33,248	$	18,077	Other liabilities	$	33,248	$	18,077
Foreign exchange contracts	Other assets	102		156		Other liabilities	86		134
Forward sales contracts	Other assets	44		1,588		Other liabilities	2,282		474
Written and purchased options	Other assets	15,200		10,607		Other liabilities	6,864		6,254
Total derivatives not designated as hedging instruments under ASC Topic 815		48,594		30,428			42,480		24,939
Total		$	48,594	$	30,486		$	48,772	$	24,939

Offsetting Assets

The following table reconciles the gross amounts presented in the consolidated balance sheets to the net amounts that would result in the event of offset.



	March 31, 2016
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
(Dollars in thousands)	Gross Amounts Presented in the Balance Sheet		Derivatives			Collateral ⁽¹⁾			Net
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	—	$	—		$	—		$	—
Interest rate contracts not designated as hedging instruments	33,247		—			—			33,247
Written and purchased options	6,790		(1,967		)	—			4,823
Total derivative assets subject to master netting arrangements	$	40,037	$	(1,967	)	$	—		$	38,070
Derivative liabilities
Interest rate contracts designated as hedging instruments	$	6,292	$	(1,967	)	$	(2,663	)	$	1,662
Interest rate contracts not designated as hedging instruments	33,248		—			(9,515		)	23,733
Written and purchased options	—		—			—			—
Total derivative liabilities subject to master netting arrangements	$	39,540	$	(1,967	)	$	(12,178	)	$	25,395


⁽¹⁾	Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.



	December 31, 2015
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
(Dollars in thousands)	Gross Amounts Presented in the Balance Sheet		Derivatives		Collateral ⁽¹⁾			Net
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	58	$	—	$	(45	)	$	13
Interest rate contracts not designated as hedging instruments	18,058		—		—			18,058
Written and purchased options	6,277		—		—			6,277
Total derivative assets subject to master netting arrangements	$	24,393	$	—	$	(45	)	$	24,348
Derivative liabilities
Interest rate contracts designated as hedging instruments	$	—	$	—	$	—		$	—
Interest rate contracts not designated as hedging instruments	18,058		—		(9,428		)	8,630
Total derivative liabilities subject to master netting arrangements	$	18,058	$	—	$	(9,428	)	$	8,630


⁽¹⁾	Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.

Offsetting Liabilities

The following table reconciles the gross amounts presented in the consolidated balance sheets to the net amounts that would result in the event of offset.



	March 31, 2016
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
(Dollars in thousands)	Gross Amounts Presented in the Balance Sheet		Derivatives			Collateral ⁽¹⁾			Net
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	—	$	—		$	—		$	—
Interest rate contracts not designated as hedging instruments	33,247		—			—			33,247
Written and purchased options	6,790		(1,967		)	—			4,823
Total derivative assets subject to master netting arrangements	$	40,037	$	(1,967	)	$	—		$	38,070
Derivative liabilities
Interest rate contracts designated as hedging instruments	$	6,292	$	(1,967	)	$	(2,663	)	$	1,662
Interest rate contracts not designated as hedging instruments	33,248		—			(9,515		)	23,733
Written and purchased options	—		—			—			—
Total derivative liabilities subject to master netting arrangements	$	39,540	$	(1,967	)	$	(12,178	)	$	25,395


⁽¹⁾	Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.



	December 31, 2015
	Gross Amounts Presented in the Balance Sheet		Gross Amounts Not Offset in the Balance Sheet
(Dollars in thousands)	Gross Amounts Presented in the Balance Sheet		Derivatives		Collateral ⁽¹⁾			Net
Derivatives subject to master netting arrangements
Derivative assets
Interest rate contracts designated as hedging instruments	$	58	$	—	$	(45	)	$	13
Interest rate contracts not designated as hedging instruments	18,058		—		—			18,058
Written and purchased options	6,277		—		—			6,277
Total derivative assets subject to master netting arrangements	$	24,393	$	—	$	(45	)	$	24,348
Derivative liabilities
Interest rate contracts designated as hedging instruments	$	—	$	—	$	—		$	—
Interest rate contracts not designated as hedging instruments	18,058		—		(9,428		)	8,630
Total derivative liabilities subject to master netting arrangements	$	18,058	$	—	$	(9,428	)	$	8,630


⁽¹⁾	Consists of cash collateral recorded at cost, which approximates fair value, and investment securities.

Effect of Derivatives on Consolidated Financial Statements

At March 31, 2016 and 2015, and for the three months then ended, information pertaining to the effect of the hedging instruments on the consolidated financial statements is as follows:



												Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing	Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
			Amount of Gain (Loss) Recognized in OCI net of taxes (Effective Portion)				Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)


(Dollars in thousands)
		For the Three Months Ended March 31
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships		2016			2015			2016		2015			2016		2015
	Interest rate contracts	$	(4,127	)	$	—	Other income (expense)	$	—	$	—	Other income (expense)	$	—	$	—
Total		$	(4,127	)	$	—		$	—	$	—		$	—	$	—

Information pertaining to the effect of derivatives not designated as hedging instruments on the consolidated financial statements for the three months ended March 31 is as follows:



		Amount of Gain (Loss) Recognized in Income on Derivatives
	Location of Gain (Loss) Recognized in Income on Derivatives	For the Three Months Ended March 31
(Dollars in thousands)	Location of Gain (Loss) Recognized in Income on Derivatives	2016			2015
Interest rate contracts ⁽¹⁾	Other income	$	2,962		$	1,005
Foreign exchange contracts	Other income	1			—
Forward sales contracts	Mortgage income	(5,343		)	(253		)
Written and purchased options	Mortgage income	3,982			768
Total		$	1,602		$	1,520

⁽¹⁾Includes fees associated with customer interest rate contracts.