XML 45 R33.htm IDEA: XBRL DOCUMENT v3.19.2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2019
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 June 30, 2019, follows:
 
 
 
Weighted
 
Weighted Average Rate
 
Estimated
 
Notional
 
Average
 
 
 
Contract
 
Fair Value
 
Amount
 
Maturity
 
Received
 
pay rate
 
Asset (Liability)
 
(In thousands)
 
(In years)
 
 
 
 
 
(In thousands)
Economic hedges:
 

 
 
 
 

 
 

 
 

Interest rate swap on tax advantaged economic development bond
$
9,744

 
10.4
 
2.81
%
 
5.09
%
 
$
(1,583
)
Interest rate swaps on loans with commercial loan customers
1,546,563

 
6.7
 
4.47
%
 
3.89
%
 
75,114

Reverse interest rate swaps on loans with commercial loan customers
1,546,563

 
6.7
 
3.89
%
 
4.47
%
 
(76,909
)
Risk participation agreements with dealer banks
303,793

 
7.5
 
 

 
 

 
343

Forward sale commitments (1)
544,475

 
0.2
 
 

 
 

 
(1,144
)
Total economic hedges
3,951,138

 
 
 
 

 
 

 
(4,179
)
 
 
 
 
 
 
 
 
 
 
Non-hedging derivatives:
 

 
 
 
 

 
 

 
 

Commitments to lend (1)
471,456

 
0.2
 
 

 
 

 
9,005

Total non-hedging derivatives
471,456

 
 
 
 

 
 

 
9,005

 
 
 
 
 
 
 
 
 
 
Total
$
4,422,594

 
 
 
 

 
 

 
$
4,826

(1) Includes the impact of discontinued operations.
Information about derivative assets and liabilities at December 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)
Economic hedges:
 

 
 
 
 

 
 

 
 

Interest rate swap on tax advantaged economic development bond
$
10,090

 
10.9
 
2.72
%
 
5.09
%
 
$
(1,240
)
Interest rate swaps on loans with commercial loan customers
1,346,894

 
6.7
 
4.53
%
 
4.04
%
 
11,443

Reverse interest rate swaps on loans with commercial loan customers
1,346,894

 
6.7
 
4.04
%
 
4.53
%
 
(11,953
)
Risk participation agreements with dealer banks
243,806

 
5.7
 
 

 
 

 
237

Forward sale commitments (1)
190,807

 
0.2
 
 

 
 

 
(734
)
Total economic hedges
3,138,491

 
 
 
 

 
 

 
(2,247
)
 
 
 
 
 
 
 
 
 
 
Non-hedging derivatives:
 

 
 
 
 

 
 

 
 

Commitments to lend (1)
165,079

 
0.2
 
 

 
 

 
3,927

Total non-hedging derivatives
165,079

 
 
 
 

 
 

 
3,927

 
 
 
 
 
 
 
 
 
 
Total
$
3,303,570

 
 
 
 

 
 

 
$
1,680
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 June 30,
 
Six Months Ended June 30,
(In thousands)
2019
 
2018
 
2019
 
2018
Economic hedges
 

 
 

 
 

 
 

Interest rate swap on industrial revenue bond:
 

 
 

 
 

 
 

Unrealized (loss)/gain recognized in other non-interest income
$
(222
)
 
$
163

 
$
(343
)
 
$
474

 
 
 
 
 
 
 
 
Interest rate swaps on loans with commercial loan customers:
 

 
 

 
 

 
 

Unrealized (loss)/gain recognized in other non-interest income
42,967

 
(5,270
)
 
64,956

 
(19,939
)
(Unfavorable)/Favorable change in credit valuation adjustment recognized in other non-interest income
(1,146
)
 
95

 
(1,283
)
 
332

 
 
 
 
 
 
 
 
Reverse interest rate swaps on loans with commercial loan customers:
 

 
 

 
 

 
 

Unrealized gain/(loss) recognized in other non-interest income
(42,967
)
 
5,270

 
(64,956
)
 
19,939

 
 
 
 
 
 
 
 
Risk participation agreements:
 

 
 

 
 

 
 

Unrealized gain recognized in other non-interest income
(19
)
 
7

 
106

 
23

 
 
 
 
 
 
 
 
Forward commitments:
 

 
 

 
 

 
 

Unrealized (loss) recognized in discontinued operations
108

 
(658
)
 
(410
)
 
(1,567
)
Realized gain in discontinued operations
(4,083
)
 
1,077

 
(5,798
)
 
4,999

 
 
 
 
 
 
 
 
Non-hedging derivatives
 

 
 

 
 

 
 

Commitments to lend
 

 
 

 
 

 
 

Unrealized gain recognized in discontinued operations
$
2,687

 
$
7,285

 
$
5,078

 
$
13,816

Realized gain in discontinued operations
16,281

 
2,491

 
25,713

 
3,094
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
December 31, 2018
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
 
 

 
 

 
 

 
 

 
 

 
 

Institutional counterparties
 
$
9,485

 
$
(3,592
)
 
$
5,893

 
$
—

 
$
—

 
$
5,893

Commercial counterparties
 
21,345

 
(157
)
 
21,188

 
—

 
—

 
21,188

Total
 
$
30,830

 
$
(3,749
)
 
$
27,081

 
$
—

 
$
—

 
$
27,081


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
June 30, 2019
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
 
 

 
 

 
 

 
 

 
 

 
 

Institutional counterparties
 
$
543

 
$
(14
)
 
$
529

 
$
—

 
$
—

 
$
529

Commercial counterparties
 
75,883

 
(33
)
 
75,850

 
—

 
—

 
75,850

Total
 
$
76,426

 
$
(47
)
 
$
76,379

 
$
—

 
$
—

 
$
76,379
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
December 31, 2018
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
 
 

 
 

 
 

 
 

 
 

 
 

Institutional counterparties
 
$
(19,949
)
 
$
1,101

 
$
(18,848
)
 
$
—

 
$
25,412

 
$
6,564

Commercial counterparties
 
(9,932
)
 
187

 
(9,745
)
 
—

 
—

 
(9,745
)
Total
 
$
(29,881
)
 
$
1,288

 
$
(28,593
)
 
$
—

 
$
25,412

 
$
(3,181
)

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
June 30, 2019
 
 

 
 

 
 

 
 

 
 

 
 

Interest Rate Swap Agreements:
 
 

 
 

 
 

 
 

 
 

 
 

Institutional counterparties
 
$
(79,767
)
 
$
996

 
$
(78,771
)
 
$
11,992

 
$
78,896

 
$
12,117

Commercial counterparties
 
(740
)
 
5

 
(735
)
 
—

 
—

 
(735
)
Total
 
$
(80,507
)
 
$
1,001

 
$
(79,506
)
 
$
11,992

 
$
78,896

 
$
11,382