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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Financial Instruments

The following tables present the fair value of Customers' derivative financial instruments as well as their presentation on the balance sheet as of September 30, 2020 and December 31, 2019.

						September 30, 2020
						Derivative Assets												Derivative Liabilities
(amounts in thousands)						Balance Sheet Location						Fair Value						Balance Sheet Location						Fair Value
Derivatives designated as cash flow hedges:
Interest rate swaps						Other assets						$	—					Other liabilities						$	46,785
Total												$	—											$	46,785
Derivatives not designated as hedging instruments:
Interest rate swaps						Other assets						$	59,962					Other liabilities						$	63,340
Interest rate caps						Other assets						9						Other liabilities						9
Credit contracts						Other assets						384						Other liabilities						515
Residential mortgage loan commitments						Other assets						455						Other liabilities						—
Total												$	60,810											$	63,864

						December 31, 2019
						Derivative Assets												Derivative Liabilities
(amounts in thousands)						Balance Sheet Location						Fair Value						Balance Sheet Location						Fair Value
Derivatives designated as cash flow hedges:
Interest rate swaps						Other assets						$	—					Other liabilities						$	21,374
Total												$	—											$	21,374
Derivatives not designated as hedging instruments:
Interest rate swaps						Other assets						$	23,301					Other liabilities						$	24,797
Interest rate caps						Other assets						9						Other liabilities						9
Credit contracts						Other assets						219						Other liabilities						(241)
Residential mortgage loan commitments						Other assets						79						Other liabilities						—
Total												$	23,608											$	24,565

Effect of Derivative Financial Instruments on Net Income and Comprehensive Income

The following tables present amounts included in the consolidated statements of income related to derivatives not designated as hedges for the three and nine months ended September 30, 2020 and 2019.

									Amount of Income (Loss) Recognized in Earnings
									Three Months Ended September 30,												Nine Months Ended September 30,
(amounts in thousands)			Income Statement Location						2020						2019						2020						2019
Derivatives not designated as hedging instruments:
Interest rate swaps			Other non-interest income						$	387					$	(35)					$	(6,191)					$	63
Interest rate caps			Other non-interest income						—						—						—						—
Credit contracts			Other non-interest income						162						85						1,436						228
Residential mortgage loan commitments			Mortgage banking income						403						5						376						82
Total									$	952					$	55					$	(4,379)					$	373

Effect of Derivative Instruments on Comprehensive Income

The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the three and nine months ended September 30, 2020 and 2019.

			Amount of Gain (Loss) Recognized in OCI on Derivatives (1)												Location of Gain (Loss) Reclassified from Accumulated OCI into Income						Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
			Three Months Ended September 30,																		Three Months Ended September 30,
(amounts in thousands)			2020						2019												2020						2019
Derivatives in cash flow hedging relationships:
Interest rate swaps			$	429					$	(3,821)					Interest expense						$	(4,400)					$	(764)

															Amount of Gain (Loss) Recognized in OCI on Derivatives (1)												Location of Gain (Loss) Reclassified from Accumulated OCI into Income																		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
															Nine Months Ended September 30,																														Nine Months Ended September 30,
(amounts in thousands)															2020						2019																								2020						2019
Derivatives in cash flow hedging relationships:
Interest rate swaps															$	(24,602)					$	(19,391)					Interest expense																		$	(8,596)					$	(355)

(1) Amounts presented are net of taxes. See NOTE 4 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for the total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges for the periods presented.

Summary of Offsetting of Financial Assets and Derivative Assets

The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps and interest rate caps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the table below. Customers has not made a policy election to offset its derivative positions.

			Gross Amounts Recognized on the Consolidated Balance Sheets																		Gross Amounts Not Offset in the Consolidated Balance Sheet
(amounts in thousands)									Financial Instruments						Cash Collateral Received/(Posted)						Net Amount
September 30, 2020
Interest rate derivative assets with institutional counterparties			$	—																	$	—					$	—					$	—
Interest rate derivative liabilities with institutional counterparties			$	110,039																	$	—					$	(110,039)					$	—

			Gross Amounts Recognized on the Consolidated Balance Sheets																		Gross Amounts Not Offset in the Consolidated Balance Sheet
(amounts in thousands)									Financial Instruments						Cash Collateral Received/(Posted)						Net Amount
December 31, 2019
Interest rate derivative assets with institutional counterparties			$	432																	$	—					$	—					$	432
Interest rate derivative liabilities with institutional counterparties			$	45,727																	$	—					$	(45,727)					$	—

Summary of Offsetting of Financial Liabilities and Derivative Liabilities

The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps and interest rate caps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the table below. Customers has not made a policy election to offset its derivative positions.

			Gross Amounts Recognized on the Consolidated Balance Sheets																		Gross Amounts Not Offset in the Consolidated Balance Sheet
(amounts in thousands)									Financial Instruments						Cash Collateral Received/(Posted)						Net Amount
September 30, 2020
Interest rate derivative assets with institutional counterparties			$	—																	$	—					$	—					$	—
Interest rate derivative liabilities with institutional counterparties			$	110,039																	$	—					$	(110,039)					$	—

			Gross Amounts Recognized on the Consolidated Balance Sheets																		Gross Amounts Not Offset in the Consolidated Balance Sheet
(amounts in thousands)									Financial Instruments						Cash Collateral Received/(Posted)						Net Amount
December 31, 2019
Interest rate derivative assets with institutional counterparties			$	432																	$	—					$	—					$	432
Interest rate derivative liabilities with institutional counterparties			$	45,727																	$	—					$	(45,727)					$	—

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