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Derivatives and Hedging Activities | 12 Months Ended
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Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES The notional amounts and estimated fair values of the Company’s derivatives are presented in the following table. Fair value estimates are obtained from third parties and are based on pricing models.
| December 31, 2018 |  | December 31, 2017
| Notional Amount | Estimated Fair Value |  | Notional Amount | Estimated Fair Value
Derivative Assets (included in other assets on the consolidated balance sheets) |  |  |
Non-hedging interest rate derivatives: |  |  |  |  |
Interest rate swap contracts | $ | 403.3 |  | $ | 8.8 |  |  | $ | 344.2 |  | $ | 7.5 |
Interest rate lock commitments | 51.0 |  | 1.3 |  |  | 60.7 |  | 1.3 |
Total derivative assets | $ | 454.3 |  | $ | 10.1 |  |  | $ | 404.9 |  | $ | 8.8 |
Derivative Liabilities (included in accounts payable and accrued expenses on the consolidated balance sheets)
Non-hedging interest rate derivatives: |  |  |  |  |
Interest rate swap contracts | $ | 403.3 |  | $ | 8.8 |  |  | $ | 344.2 |  | $ | 7.8 |
Forward loan sales contracts | 64.6 |  | 0.6 |  |  | 88.8 |  | 0.1 |
Total derivative liabilities | $ | 467.9 |  | $ | 9.4 |  |  | $ | 433.0 |  | $ | 7.9 |
On September 6, 2017, the Company paid $1.1 million to terminate an existing interest rate swap contract designated as a cash flow hedge, originally entered into on September 22, 2015, with a notional amount of $100 million. Under the terms of the interest rate swap contract, the Company would have paid a fixed interest rate of 1.94% and the counterparty would have paid to the Company a variable interest rate equal to the three-month LIBOR. As the contract was terminated prior to the effective date of September 15, 2017, no cash was exchanged outside of the termination payment. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not record any hedge ineffectiveness at December 31, 2018 and 2017. Derivative assets and liabilities are recorded at fair value on the balance sheet and do not take into account the effects of master netting arrangements. Master netting arrangements allow the Company to settle all contracts held with a single counterparty on a net basis and to offset net contract position with related collateral where applicable. The following table illustrates the potential effect of the Company’s master netting arrangements, by type of financial instrument, on the Company’s consolidated balance sheets as of December 31, 2018 and December 31, 2017:
| December 31, 2018
| Gross Amounts Recognized |  | Gross Amounts Offset in the Balance Sheet |  | Net Amounts in the Balance Sheet |  | Financial Instruments |  | Fair Value of Financial Collateral in the Balance Sheet |  | Net Amount
Financial Assets |  |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts | $ | 8.8 |  |  | $ | — |  |  | $ | 8.8 |  |  | $ | 2.7 |  |  | $ | 2.4 |  |  | $ | 3.7 |
Mortgage related derivatives | 1.3 |  |  | — |  |  | 1.3 |  |  | — |  |  | — |  |  | 1.3 |
Total derivatives | 10.1 |  |  | — |  |  | 10.1 |  |  | 2.7 |  |  | 2.4 |  |  | 5.0 |
Total assets | $ | 10.1 |  |  | $ | — |  |  | $ | 10.1 |  |  | $ | 2.7 |  |  | $ | 2.4 |  |  | $ | 5.0 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts | $ | 8.8 |  |  | $ | — |  |  | $ | 8.8 |  |  | $ | 2.7 |  |  | $ | 4.1 |  |  | $ | 2.0 |
Mortgage related derivatives | 0.6 |  |  | — |  |  | 0.6 |  |  | — |  |  | — |  |  | 0.6 |
Total derivatives | 9.4 |  |  | — |  |  | 9.4 |  |  | 2.7 |  |  | 4.1 |  |  | 2.6 |
Repurchase agreements | 712.4 |  |  | — |  |  | 712.4 |  |  | — |  |  | 712.4 |  |  | — |
Total liabilities | $ | 721.8 |  |  | $ | — |  |  | $ | 721.8 |  |  | $ | 2.7 |  |  | $ | 716.5 |  |  | $ | 2.6 |
| December 31, 2017
| Gross Amounts Recognized |  | Gross Amounts Offset in the Balance Sheet |  | Net Amounts in the Balance Sheet |  | Financial Instruments |  | Fair Value of Financial Collateral in the Balance Sheet |  | Net Amount
Financial Assets
Interest rate swap contracts | $ | 7.5 |  |  | $ | — |  |  | $ | 7.5 |  |  | $ | 2.4 |  |  | $ | — |  |  | $ | 5.1 |
Mortgage related derivatives | 1.3 |  |  | — |  |  | 1.3 |  |  | — |  |  | — |  |  | 1.3 |
Total derivatives | 8.8 |  |  | — |  |  | 8.8 |  |  | 2.4 |  |  | — |  |  | 6.4 |
Total assets | $ | 8.8 |  |  | $ | — |  |  | $ | 8.8 |  |  | $ | 2.4 |  |  | $ | — |  |  | $ | 6.4 |
Financial Liabilities
Interest rate swap contracts | $ | 7.8 |  |  | $ | — |  |  | $ | 7.8 |  |  | $ | 2.4 |  |  | $ | 3.3 |  |  | $ | 2.1 |
Mortgage related derivatives | 0.1 |  |  | — |  |  | 0.1 |  |  | — |  |  | — |  |  | 0.1 |
Total derivatives | 7.9 |  |  | — |  |  | 7.9 |  |  | 2.4 |  |  | 3.3 |  |  | 2.2 |
Repurchase agreements | 643.0 |  |  | — |  |  | 643.0 |  |  | — |  |  | 643.0 |  |  | — |
Total liabilities | $ | 650.9 |  |  | $ | — |  |  | $ | 650.9 |  |  | $ | 2.4 |  |  | $ | 646.3 |  |  | $ | 2.2 |
The following table presents the pre-tax gains or losses related to derivative contracts that were recorded in accumulated other comprehensive income and other non-interest income in the Company’s statements of income:
As of or For The Year Ended December 31, | 2018 |  | 2017 |  | 2016
Derivatives designated as hedges: |  |  |  |  |
Amount of loss recognized in other comprehensive income (effective portion) | $ | — |  |  | $ | (1.1 | ) |  | $ | (0.2 | )
Reclassification adjustment for derivative net (gains) losses included in income | — |  |  | 1.1 |  |  | — |
Non-hedging interest rate derivatives: |  |  |  |  |
Amount of gain (loss) recognized in other non-interest income | 0.3 |  |  | — |  |  | 0.1 |
Amount of net fee income recognized in other non-interest income | 1.3 |  |  | 0.8 |  |  | 0.9 |
Amount of net gains (losses) recognized in mortgage banking revenues | (0.5 | ) |  | (1.7 | ) |  | 1.4 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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