Derivative Instruments and Other Hedging Activities (Tables)

6 Months Ended

Jun. 30, 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	June 30, 2016		December 31, 2015		Balance Sheet Location	June 30, 2016		December 31, 2015
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	—	$	58	Other liabilities	$	9,872	$	—
Total derivatives designated as hedging instruments under ASC Topic 815		$	—	$	58		$	9,872	$	—
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts	Other assets	$	43,569	$	18,077	Other liabilities	$	43,569	$	18,077
Foreign exchange contracts	Other assets	10		156		Other liabilities	—		134
Forward sales contracts	Other assets	51		1,588		Other liabilities	4,322		474
Written and purchased options	Other assets	17,968		10,607		Other liabilities	7,144		6,254
Total derivatives not designated as hedging instruments under ASC Topic 815		61,598		30,428			55,035		24,939
Total		$	61,598	$	30,486		$	64,907	$	24,939



	Asset Derivatives Notional Amount				Liability Derivatives Notional Amount
(Dollars in thousands)	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Derivatives designated as hedging instruments under ASC Topic 815:
Interest rate contracts	$	—	$	108,500	$	108,500	$	—
Total derivatives designated as hedging instruments under ASC Topic 815	$	—	$	108,500	$	108,500	$	—
Derivatives not designated as hedging instruments under ASC Topic 815:
Interest rate contracts	$	825,745	$	590,334	$	825,745	$	590,334
Foreign exchange contracts	1,994		4,392		1,994		4,392
Forward sales contracts	15,471		223,841		462,381		173,430
Written and purchased options	463,497		328,210		181,150		181,949
Total derivatives not designated as hedging instruments under ASC Topic 815	1,306,707		1,146,777		1,471,270		950,105
Total	$	1,306,707	$	1,255,277	$	1,579,770	$	950,105

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.



	June 30, 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 not designated as hedging instruments	$	43,569	$	—		$	—		$	43,569
Written and purchased options	7,144		(3,784		)	—			3,360
Total derivative assets subject to master netting arrangements	$	50,713	$	(3,784	)	$	—		$	46,929
Derivative liabilities
Interest rate contracts designated as hedging instruments	$	9,872	$	(3,784	)	$	(3,072	)	$	3,016
Interest rate contracts not designated as hedging instruments	43,569		—			(11,125		)	32,444
Total derivative liabilities subject to master netting arrangements	$	53,441	$	(3,784	)	$	(14,197	)	$	35,460


⁽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 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.



	June 30, 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 not designated as hedging instruments	$	43,569	$	—		$	—		$	43,569
Written and purchased options	7,144		(3,784		)	—			3,360
Total derivative assets subject to master netting arrangements	$	50,713	$	(3,784	)	$	—		$	46,929
Derivative liabilities
Interest rate contracts designated as hedging instruments	$	9,872	$	(3,784	)	$	(3,072	)	$	3,016
Interest rate contracts not designated as hedging instruments	43,569		—			(11,125		)	32,444
Total derivative liabilities subject to master netting arrangements	$	53,441	$	(3,784	)	$	(14,197	)	$	35,460


⁽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 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 June 30, 2016 and 2015, and for the three and six 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 June 30
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships			2016		2015			2016		2015			2016		2015
	Interest rate contracts	$	(2,328	)	$	3,038	Other income (expense)	$	—	$	—	Other income (expense)	$	—	$	—
Total		$	(2,328	)	$	3,038		$	—	$	—		$	—	$	—

												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 Six Months Ended June 30
Derivatives in ASC Topic 815 Cash Flow Hedging Relationships			2016		2015			2016		2015			2016		2015
	Interest rate contracts	$	(6,455	)	$	3,038	Other income (expense)	$	—	$	—	Other income (expense)	$	—	$	—
Total		$	(6,455	)	$	3,038		$	—	$	—		$	—	$	—

At June 30, 2016 and 2015, and for the three and six months then ended, information pertaining to the effect of derivatives not designated as hedging instruments on the consolidated financial statements 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 June 30						For the Six Months Ended June 30
(Dollars in thousands)	Location of Gain (Loss) Recognized in Income on Derivatives	2016			2015			2016			2015
Interest rate contracts ⁽¹⁾	Other income	$	2,332		$	934		$	5,294		$	1,939
Foreign exchange contracts	Other income	2			—			3			—
Forward sales contracts	Mortgage income	(4,787		)	8,303			(10,130		)	8,050
Written and purchased options	Mortgage income	2,488			(1,953		)	6,470			(1,185		)
Total		$	35		$	7,284		$	1,637		$	8,804

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