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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Swap Agreements and Non-hedging Derivative Assets and Liabilities
Information about interest rate swap agreements and non-hedging derivative assets and liabilities at December 31, 2016 follows:
 
 
Notional
Amount
 
Weighted
Average
Maturity
 
Weighted Average Rate
 
Estimated
Fair Value
Asset (Liability)
December 31, 2016
 
 
 
Received
 
Contract pay rate
 
 
 
(In thousands)
 
(In years)
 
 
 
 
 
(In thousands)
Cash flow hedges:
 
 

 
 
 
 

 
 

 
 

Interest rate swaps on FHLBB borrowings
 
300,000

 
2.3
 
0.63
%
 
2.29
%
 
(6,573
)
Total cash flow hedges
 
300,000

 
 
 
 

 
 

 
(6,573
)
 
 
 
 
 
 
 
 
 
 
 
Economic hedges:
 
 

 
 
 
 

 
 

 
 

Interest rate swap on tax advantaged economic development bond
 
11,386

 
12.9
 
0.98
%
 
5.09
%
 
(2,021
)
Interest rate swaps on loans with commercial loan customers
 
668,541

 
6.2
 
2.43
%
 
4.21
%
 
(6,752
)
Reverse interest rate swaps on loans with commercial loan customers
 
668,541

 
6.2
 
4.21
%
 
2.43
%
 
7,077

Risk participation agreements with dealer banks
 
83,360

 
11.6
 
 
 
 
 
5

Forward sale commitments
 
259,889

 
0.2
 
 

 
 

 
722

Total economic hedges
 
1,691,717

 
 
 
 

 
 

 
(969
)
 
 
 
 
 
 
 
 
 
 
 
Non-hedging derivatives:
 
 

 
 
 
 

 
 

 
 

Commitments to lend
 
208,145

 
0.2
 
 

 
 

 
4,738

Total non-hedging derivatives
 
208,145

 
 
 
 

 
 

 
4,738

Total
 
$
2,199,862

 
 
 
 

 
 

 
$
(2,804
)
Information about interest rate swap agreements and non-hedging derivative asset and liabilities at December 31, 2015 follows:
 
 
Notional
Amount
 
Weighted
Average
Maturity
 
Weighted Average Rate
 
Estimated
Fair Value
Asset (Liability)
December 31, 2015
 
 
 
Received
 
Contract pay rate
 
 
 
(In thousands)
 
(In years)
 
 
 
 
 
(In thousands)
Cash flow hedges:
 
 

 
 
 
 

 
 

 
 

Forward-starting interest rate swaps on FHLBB borrowings
 
300,000

 
3.3
 
0.14
%
 
2.29
%
 
(8,532
)
Total cash flow hedges
 
300,000

 
 
 
 

 
 

 
(8,532
)
 
 


 

 


 


 


Economic hedges:
 
 

 
 
 
 

 
 

 
 

Interest rate swap on tax advantaged economic development bond
 
11,984

 
13.9
 
0.61
%
 
5.09
%
 
(2,450
)
Interest rate swaps on loans with commercial loan customers
 
457,392

 
6.7
 
2.18
%
 
4.49
%
 
(17,143
)
Reverse interest rate swaps on loans with commercial loan customers
 
457,392

 
6.7
 
4.49
%
 
2.18
%
 
17,129

Risk participation agreements with dealer banks
 
59,016

 
15.0
 


 
 

 
(56
)
Forward sale commitments
 
44,840

 
0.2
 
 

 
 

 
53

Total economic hedges
 
1,030,624

 
 
 
 

 
 

 
(2,467
)
 
 


 
 
 
 
 
 
 


Non-hedging derivatives:
 
 

 
 
 
 

 
 

 
 

Commitments to lend
 
36,043

 
0.2
 
 

 
 

 
323

Total non-hedging derivatives
 
36,043

 
 
 
 

 
 

 
323

 
 


 
 
 
 
 
 
 


Total
 
$
1,366,667

 
 
 
 

 
 

 
$
(10,676
)
Schedule of Amounts Included in the Consolidated Statements of income and in Other Comprehensive Income
Amounts included in the Consolidated Statements of Income and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income (related to interest rate derivatives designated as hedges of cash flows), were as follows:
 
 
Years Ended December 31,
(In thousands)
 
2016
 
2015
Interest rate swaps on FHLBB borrowings:
 
 

 
 

Unrealized (loss) recognized in accumulated other comprehensive loss
 
$
(2,023
)
 
$
(5,232
)
Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense
 
(3,981
)
 
—

Net tax effect on items recognized in accumulated other comprehensive income
 
(835
)
 
2,094

Other comprehensive income recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects
 
$
1,123

 
$
(3,138
)
 
 
 
 
 
Net interest expense recognized in interest expense on hedged FHLBB borrowings
 
$
3,981

 
$
—
Schedule of Amounts Included in the Consolidated Statements of Income Related to Economic Hedges and Non-hedging Derivatives
Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows:
 
 
Years Ended December 31,
(In thousands)
 
2016
 
2015
Economic hedges
 
 

 
 

Interest rate swap on industrial revenue bond:
 
 

 
 

Unrealized gain (loss) recognized in other non-interest income
 
$
(75
)
 
$
(344
)
Interest rate swaps on loans with commercial loan customers:
 
 

 
 

Unrealized gain (loss) recognized in other non-interest income
 
1,312

 
(4,852
)
Reverse interest rate swaps on loans with commercial loan customers:
 
 

 
 

Unrealized (loss) gain recognized in other non-interest income
 
(1,312
)
 
4,852

Favorable (unfavorable) change in credit valuation adjustment recognized in other non-interest income
 
338

 
(51
)
Risk Participation Agreements:
 
 

 
 

Unrealized gain (loss) recognized in other non-interest income
 
(61
)
 
(36
)
Forward Commitments:
 
 

 
 

Unrealized (loss) recognized in other non-interest income
 
(1,176
)
 
(247
)
Realized (loss) gain in other non-interest income
 
(3,705
)
 
45

 
 
 
 
 
Non-hedging derivatives
 
 

 
 

Interest rate lock commitments:
 
 

 
 

Unrealized gain recognized in other non-interest income
 
$
8,373

 
$
2,436

Realized gain in other non-interest income
 
3,650

 
1,899
Schedule of Assets Subject to an Enforceable Master Netting Arrangement
The following table presents the assets and liabilities subject to an enforceable master netting arrangement as of December 31, 2016 and December 31, 2015:
 
Offsetting of Financial Assets and Derivative Assets
 
 
Gross
Amounts of
Recognized
Assets
 
Gross Amounts
Offset in the
Statements of
Condition
 
Net Amounts of Assets
Presented in the Statements of
Condition
 
Gross Amounts Not Offset in the Statements
of Condition
 
 
 
 
 
 
 
Financial
Instruments
 
Cash
Collateral Received
 
 
(in thousands)
 
 
 
 
 
 
Net Amount
As of December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
Institutional counterparties
 
$
49

 
$
—

 
$
49

 
$
—

 
$
—

 
$
49

Commercial counterparties
 
11,461

 
—

 
11,461

 
—

 
—

 
11,461

Total
 
$
11,510

 
$
—

 
$
11,510

 
$
—

 
$
—

 
$
11,510

Offsetting of Financial Assets and Derivative Assets
 
 
Gross
Amounts of
Recognized
Assets
 
Gross Amounts
Offset in the
Statements of
Condition
 
Net Amounts of Assets
Presented in the Statements of
Condition
 
Gross Amounts Not Offset in the Statements
of Condition
 
 
 
 
 
 
 
Financial
Instruments
 
Cash
Collateral Received
 
 
(in thousands)
 
 
 
 
 
 
Net Amount
As of December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
Institutional counterparties
 
$
40

 
$
—

 
$
40

 
$
—

 
$
—

 
$
40

Commercial counterparties
 
17,129

 
—

 
17,129

 
—

 
—

 
17,129

Total
 
$
17,169

 
$
—

 
$
17,169

 
$
—

 
$
—

 
$
17,169
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement
Offsetting of Financial Liabilities and Derivative Liabilities
 
 
Gross
Amounts of
Recognized
Liabilities
 
Gross Amounts
Offset in the
Statements of
Condition
 
Net Amounts of Liabilities
Presented in the Statement of
Condition
 
Gross Amounts Not Offset in the Statements
of Condition
 
 
 
 
 
 
 
Financial
Instruments
Cash
Collateral Received
 
 
(in thousands)
 
 
 
 
 
Net Amount
As of December 31, 2015
 
 

 
 

 
 

 
 

 

 
 

 
Institutional counterparties
 
$
(28,220
)
 
$
—

 
$
(28,220
)
 
$
18,500

$
9,720

 
$
—

Commercial counterparties
 
—

 
—

 
—

 
—

—

 
—

Total
 
$
(28,220
)
 
$
—

 
$
(28,220
)
 
$
18,500

$
9,720

 
$
—

Offsetting of Financial Liabilities and Derivative Liabilities
 
 
Gross
Amounts of
Recognized
Liabilities
 
Gross Amounts
Offset in the
Statements of
Condition
 
Net Amounts of Liabilities
Presented in the Statement of
Condition
 
Gross Amounts Not Offset in the Statements
of Condition
 
 
 
 
 
 
 
Financial
Instruments
 
Cash
Collateral Received
 
 
(in thousands)
 
 
 
 
 
 
Net Amount
As of December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
Institutional counterparties
 
$
(20,077
)
 
$
4,689

 
$
(15,388
)
 
$
14,738

 
$
650

 
$
—

Commercial counterparties
 
(4,407
)
 
23

 
(4,384
)
 
—

 
—

 
(4,384
)
Total
 
$
(24,484
)
 
$
4,712

 
$
(19,772
)
 
$
14,738

 
$
650

 
$
(4,384
)