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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities
Information about derivative assets and liabilities at March 31, 2018, follows:
 
 
 
Weighted
 
Weighted Average Rate
 
Estimated
 
Notional
 
Average
 
 
 
Contract
 
Fair Value
 
Amount
 
Maturity
 
Received
 
pay rate
 
Asset (Liability)
 
(In thousands)
 
(In years)
 
 
 
 
 
(In thousands)
Cash flow hedges:
 

 
 
 
 

 
 

 
 

Interest rate swaps on FHLB borrowings
$
—

 
0
 
—
%
 
—
%
 
$
—

Total cash flow hedges
—

 
 
 
 

 
 

 
—

 
 
 
 
 
 
 
 
 
 
Economic hedges:
 

 
 
 
 

 
 

 
 

Interest rate swap on tax advantaged economic development bond
10,590

 
11.7
 
2.03
%
 
5.09
%
 
(1,338
)
Interest rate swaps on loans with commercial loan customers
1,006,921

 
5.8
 
3.54
%
 
4.33
%
 
11,474

Reverse interest rate swaps on loans with commercial loan customers
1,006,921

 
5.8
 
4.33
%
 
3.54
%
 
(11,228
)
Risk participation agreements with dealer banks
167,795

 
7.0
 
 

 
 

 
(10
)
Forward sale commitments
309,493

 
0.2
 
 

 
 

 
(909
)
Total economic hedges
2,501,720

 
 
 
 

 
 

 
(2,011
)
 
 
 
 
 
 
 
 
 
 
Non-hedging derivatives:
 

 
 
 
 

 
 

 
 

Commitments to lend
296,247

 
0.2
 
 

 
 

 
6,531

Total non-hedging derivatives
296,247

 
 
 
 

 
 

 
6,531

 
 
 
 
 
 
 
 
 
 
Total
$
2,797,967

 
 
 
 

 
 

 
$
4,520

Information about derivative assets and liabilities at December 31, 2017, follows:
 
 
 
Weighted
 
Weighted Average Rate
 
Estimated
 
Notional
 
Average
 
 
 
Contract
 
Fair Value
 
Amount
 
Maturity
 
Received
 
pay rate
 
Asset (Liability)
 
(In thousands)
 
(In years)
 
 
 
 
 
(In thousands)
Cash flow hedges:
 

 
 
 
 

 
 

 
 

Interest rate swaps on FHLB borrowings
$
—

 
0
 
—
%
 
—
%
 
$
—

Total cash flow hedges
—

 
 
 
 

 
 

 
—

 
 
 
 
 
 
 
 
 
 
Economic hedges:
 

 
 
 
 

 
 

 
 

Interest rate swap on tax advantaged economic development bond
10,755

 
11.9
 
1.73
%
 
5.09
%
 
(1,649
)
Interest rate swaps on loans with commercial loan customers
943,795

 
5.9
 
3.26
%
 
4.25
%
 
(3,195
)
Reverse interest rate swaps on loans with commercial loan customers
943,795

 
5.9
 
4.25
%
 
3.26
%
 
3,204

Risk participation agreements with dealer banks
142,054

 
8.4
 
 

 
 

 
(26
)
Forward sale commitments
276,572

 
0.2
 
 

 
 

 
(123
)
Total economic hedges
2,316,971

 
 
 
 

 
 

 
(1,789
)
 
 
 
 
 
 
 
 
 
 
Non-hedging derivatives:
 

 
 
 
 

 
 

 
 

Commitments to lend
193,966

 
0.2
 
 

 
 

 
5,259

Total non-hedging derivatives
193,966

 
 
 
 

 
 

 
5,259

 
 
 
 
 
 
 
 
 
 
Total
$
2,510,937

 
 
 
 

 
 

 
$
3,470
Schedule of Amounts Included in the Consolidated Statements of Income and in the Other Comprehensive Income Section of the Consolidated Statements of 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:
 
Three Months Ended March 31,
(In thousands)
2018
 
2017
Interest rate swaps on FHLB borrowings:
 

 
 

Unrealized (loss) recognized in accumulated other comprehensive loss
$
—

 
$
(449
)
Less: reclassification of unrealized (loss) from accumulated other comprehensive income to interest expense
—

 
(393
)
Less: reclassification of unrealized (loss) from accumulated other comprehensive income to other non-interest expense
—

 
(6,629
)
Net tax (expense) benefit on items recognized in accumulated other comprehensive income
—

 
(2,589
)
Other comprehensive gain (loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects
$
—

 
$
3,984
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:
 
Three Months Ended March 31,
(In thousands)
2018
 
2017
Economic hedges
 

 
 

Interest rate swap on industrial revenue bond:
 

 
 

Unrealized gain recognized in other non-interest income
$
311

 
$
122

 
 
 
 
Interest rate swaps on loans with commercial loan customers:
 

 
 

Unrealized gain recognized in other non-interest income
14,669

 
1,098

 
 
 
 
Reverse interest rate swaps on loans with commercial loan customers:
 

 
 

Unrealized gain recognized in other non-interest income
(14,669
)
 
(1,098
)
(Unfavorable) Favorable change in credit valuation adjustment recognized in other non-interest income
237

 
(162
)
 
 
 
 
Risk participation agreements:
 

 
 

Unrealized gain recognized in other non-interest income
16

 
(18
)
 
 
 
 
Forward commitments:
 

 
 

Unrealized gain (loss) recognized in other non-interest income
(909
)
 
(1,251
)
Realized gain (loss) in other non-interest income
3,922

 
(2,906
)
 
 
 
 
Non-hedging derivatives
 

 
 

Commitments to lend
 

 
 

Unrealized gain recognized in other non-interest income
$
6,531

 
$
8,061

Realized gain in other non-interest income
603

 
8,774
Schedule of Assets Subject to an Enforceable Master Netting Arrangement
Offsetting of Financial Assets and Derivative Assets
 
 
Gross
Amounts of
 
Gross Amounts
Offset in the
 
Net Amounts
of Assets
Presented in the
 
Gross Amounts Not Offset in
the Statements of Condition
 
 
 
 
Recognized
 
Statements of
 
Statements of
 
Financial
 
Cash
 
 
(In thousands)
 
Assets
 
Condition
 
Condition
 
Instruments
 
Collateral Received
 
Net Amount
March 31, 2018
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
 
 

 
 

 
 

 
 

 
 

 
 

Institutional counterparties
 
$
14,510

 
$
(2,286
)
 
$
12,224

 
$
—

 
$
—

 
$
12,224

Commercial counterparties
 
4,067

 
—

 
4,067

 
—

 
—

 
4,067

Total
 
$
18,577

 
$
(2,286
)
 
$
16,291

 
$
—

 
$
—

 
$
16,291

Offsetting of Financial Assets and Derivative Assets
 
 
Gross
Amounts of
 
Gross Amounts
Offset in the
 
Net Amounts
of Assets
Presented in the
 
Gross Amounts Not Offset in
the Statements of Condition
 
 
 
 
Recognized
 
Statements of
 
Statements of
 
Financial
 
Cash
 
 
(In thousands)
 
Assets
 
Condition
 
Condition
 
Instruments
 
Collateral Received
 
Net Amount
December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
 
 

 
 

 
 

 
 

 
 

 
 

Institutional counterparties
 
$
2,692

 
$
(1,622
)
 
$
1,070

 
$
—

 
$
—

 
$
1,070

Commercial counterparties
 
8,577

 
—

 
8,577

 
—

 
—

 
8,577

Total
 
$
11,269

 
$
(1,622
)
 
$
9,647

 
$
—

 
$
—

 
$
9,647
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement
Offsetting of Financial Liabilities and Derivative Liabilities
 
 
Gross
Amounts of
 
Gross Amounts
Offset in the
 
Net Amounts
of Liabilities
Presented in the
 
Gross Amounts Not Offset in
the Statements of Condition
 
 
 
 
Recognized
 
Statements of
 
Statements of
 
Financial
 
Cash
 
 
(In thousands)
 
Liabilities
 
Condition
 
Condition
 
Instruments
 
Collateral Pledged
 
Net Amount
March 31, 2018
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
 
 

 
 

 
 

 
 

 
 

 
 

Institutional counterparties
 
$
(3,359
)
 
$
1,262

 
$
(2,097
)
 
$
—

 
$
2,097

 
$
—

Commercial counterparties
 
(15,453
)
 
157

 
(15,296
)
 
—

 
—

 
(15,296
)
Total
 
$
(18,812
)
 
$
1,419

 
$
(17,393
)
 
$
—

 
$
2,097

 
$
(15,296
)
Offsetting of Financial Liabilities and Derivative Liabilities
 
 
Gross
Amounts of
 
Gross Amounts
Offset in the
 
Net Amounts
of Liabilities
Presented in the
 
Gross Amounts Not Offset in
the Statements of Condition
 
 
 
 
Recognized
 
Statements of
 
Statements of
 
Financial
 
Cash
 
 
(In thousands)
 
Liabilities
 
Condition
 
Condition
 
Instruments
 
Collateral Pledged
 
Net Amount
December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
 
 

 
 

 
 

 
 

 
 

 
 

Institutional counterparties
 
$
(8,777
)
 
$
2,835

 
$
(5,942
)
 
$
3,982

 
$
1,960

 
$
—

Commercial counterparties
 
(5,375
)
 
2

 
(5,373
)
 
—

 
—

 
(5,373
)
Total
 
$
(14,152
)
 
$
2,837

 
$
(11,315
)
 
$
3,982

 
$
1,960

 
$
(5,373
)