XML 27 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Derivative Instruments | 6 Months Ended
--- | ---
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments The Company enters into derivative transactions principally to protect against the risk of adverse price or interest rate movements on the value of certain assets and liabilities on future cash flows. As of June 30, 2018 and December 31, 2017, the Company has derivative financial instruments not included in hedge relationships. These derivatives consist of interest rate swaps and floors used for interest rate management purposes and derivatives executed with commercial banking customers to facilitate their interest rate management strategies. For the majority of these instruments the Company acts as an intermediary for its customers. Changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company's results of operations. The Company also has an interest rate swap that serves as a fair value hedge for changes in long term fixed interest rates related to commercial real estate loans. Hedge ineffectiveness is assessed quarterly and any ineffectiveness is recorded as non-interest expense. For the three and six months ended June 30, 2018 and 2017, hedge ineffectiveness was less than $0.1 million and the change in fair value was less than $0.1 million, for each respective period. The following table summarizes the notional and fair value of these derivative instruments (in thousands):
| June 30, 2018 | December 31, 2017
| Notional Amount | Fair Value | Notional Amount | Fair Value
Non-hedging interest rate derivatives: |  |  |  |
Customer counterparties: |  |  |  |
Loan interest rate swap - assets | $ | 114,729 |  | $ | 1,819 |  | $ | 225,480 |  | $ | 4,877 |
Loan interest rate swap - liabilities | 431,018 |  | 23,114 |  | 314,450 |  | 9,513 |
Financial institution counterparties: |  |  |  |
Loan interest rate swap - assets | 437,280 |  | 23,314 |  | 320,949 |  | 9,591 |
Loan interest rate swap - liabilities | 114,729 |  | 1,819 |  | 218,924 |  | 4,877 |
Derivatives designated as hedges of fair value: |  |  |  |
Financial institution counterparties: |  |  |  |
Loan interest rate swap - assets | 3,864 |  | 115 |  | 4,326 |  | 34 |
The following table summarizes the change in fair value of these derivative instruments (in thousands):
| Three months ended June 30, | Six months ended June 30,
2018 | 2017 | 2018 | 2017
Change in fair value non-hedging interest rate derivatives: |  |  |  |
Other expense (income) | $ | 32 |  | $ | (22 | ) | $ | 123 |  | $ | 24 |
Change in fair value hedging interest rate derivatives: |  |  |  |
Other income | 3 |  | 5 |  | 2 |  | 9 |
Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements. The Company's derivative transactions with financial institution counterparties are generally executed under International Swaps and Derivative Association ("ISDA") master agreements which include "right of setoff" provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Nonetheless, the Company does not generally offset financial instruments for financial reporting purposes. Information about financial instruments that are eligible for offset in the consolidated balance sheet as of June 30, 2018 is presented in the following tables (in thousands):
|  |  |  | Gross Amounts |  |
|  |  |  | Not Offset in the |  |
|  |  |  | Balance Sheet |  |
|  |  |  |  |  | Total |
|  |  |  |  |  | of Gross |
|  |  |  |  |  | Amounts |
|  |  |  |  |  | Not Offset in |
|  |  |  |  |  | the Statement |
|  |  |  |  |  | of Financial |
|  |  |  |  |  | Position |
|  |  |  | Netting |  | Including |
|  | Gross | Net Amounts | Adjustment |  | Applicable |
|  | Amounts | of Assets | per |  | Netting |
| Gross | Offset in the | Presented in | Applicable |  | Agreement |
| Amounts of | Statement of | the Statement | Master | Fair Value | and Fair |
| Recognized | Financial | of Financial | Netting | of Financial | Value of |
Description | Assets | Position | Position | Arrangements | Collateral | Collateral | Net Amount
| (a) | (b) | (c)=(a)-(b) |  |  | (d) | (c)-(d) *
Non-hedging derivative assets: |  |  |  |  |  |
Interest rate swap agreements - customer counterparties | $ | 1,819 |  | $ | — |  | $ | 1,819 |  | $ | — |  | $ | 1,819 |  | $ | 1,819 |  | $ | — |
Interest rate swap agreements - financial institution counterparties | 23,314 |  | — |  | 23,314 |  | — |  | — |  | — |  | 23,314 |
Hedging derivative assets: |  |  |  |  |  |
Interest rate swap agreements - financial institution counterparties | 115 |  | — |  | 115 |  | — |  | 69 |  | 69 |  | 46 |
Non-hedging derivative liabilities: |  |  |  |  |  |
Interest rate swap agreements - customer counterparties | 23,114 |  | — |  | 23,114 |  | — |  | 23,114 |  | 23,114 |  | — |
Interest rate swap agreements - financial institution counterparties | 1,819 |  | — |  | 1,819 |  | — |  | 13,962 |  | 13,962 |  | — |
* | For instances where the fair value of financial collateral meets or exceeds the amounts presented in the Consolidated Balance Sheets, no value is displayed to represent full collateralization.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration