Huntington National Bank 2015 Annual Report Download - page 184

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176
Asset derivatives included in accrued income and other assets:
(dollar amounts in thousands) December 31, 2015 December 31, 2014
Interest rate contracts designated as hedging instruments $ 80,513 $ 53,114
Interest rate contracts not designated as hedging instruments 190,846 183,610
Foreign exchange contracts not designated as hedging instruments 37,727 32,798
Commodity contracts not designated as hedging instruments 117,894 180,218
Total contracts $ 426,980 $ 449,740
Liability derivatives included in accrued expenses and other liabilities:
(dollar amounts in thousands) December 31, 2015 December 31, 2014
Interest rate contracts designated as hedging instruments $ 15,215 $ 12,648
Interest rate contracts not designated as hedging instruments 121,815 110,627
Foreign exchange contracts not designated as hedging instruments 35,283 29,754
Commodity contracts not designated as hedging instruments 114,887 179,180
Total contracts $ 287,200 $ 332,209
The changes in fair value of the fair value hedges are, to the extent that the hedging relationship is effective, recorded through
earnings and offset against changes in the fair value of the hedged item.
The following table presents the change in fair value for derivatives designated as fair value hedges as well as the offsetting
change in fair value on the hedged item:
Year ended December 31,
(dollar amounts in thousands) 2015 2014 2013
Interest rate contracts
Change in fair value of interest rate swaps hedging deposits (1) $(996)$ (1,045) $ (4,006)
Change in fair value of hedged deposits (1) 992 1,025 4,003
Change in fair value of interest rate swaps hedging subordinated notes (2) (8,237) 476 (44,699)
Change in fair value of hedged subordinated notes (2) 8,237 (476) 44,699
Change in fair value of interest rate swaps hedging long-term debt (2) 3,903 1,990 (5,716)
Change in fair value of hedged other long-term debt (2) (3,602) 828 6,843
(1) Effective portion of the hedging relationship is recognized in Interest expense—deposits in the Consolidated Statements of
Income. Any resulting ineffective portion of the hedging relationship is recognized in noninterest income in the Consolidated
Statements of Income.
(2) Effective portion of the hedging relationship is recognized in Interest expense—subordinated notes and other long-term debt in
the Consolidated Statements of Income. Any resulting ineffective portion of the hedging relationship is recognized in
noninterest income in the Consolidated Statements of Income.
The following table presents the gains and (losses) recognized in OCI and the location in the Consolidated Statements of Income
of gains and (losses) reclassified from OCI into earnings for derivatives designated as effective cash flow hedges:
Derivatives in cash
flow hedging
relationships
Amount of gain or (loss)
recognized in OCI on
derivatives (effective portion)
Location of gain or (loss)
reclassified from accumulated OCI
into earnings (effective portion)
Amount of (gain) or loss
reclassified from accumulated OCI
into earnings (effective portion)
(pre-tax)
(dollar amounts in thousands) 2015 2014 2013 2015 2014 2013
Interest rate contracts
Loans $ 8,428 $ 9,192 $ (56,056) Interest and fee income—loans and leases $ (210) $ (4,064) $ (14,979)
Loans — — — Noninterest income - other income (10) 93 (209)
Total $ 8,428 $ 9,192 $ (56,056) $ (220) $ (3,971) $ (15,188)