XML 46 R34.htm IDEA: XBRL DOCUMENT
v3.21.1

Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Assets at Fair Value | As of March 31, 2021, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges.
|  | Amortized Cost |  | Cumulative Amount of Fair Value Hedging Adjustment to Hedged Items
(amounts in thousands) |  | March 31, |  | December 31, |  | March 31, |  | December 31,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Available for sale debt securities |  | $ | 85,500 |  |  | $ | 272,159 |  |  | $ | 976 |  |  | $ | 741 |
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 March 31, 2021 and December 31, 2020.
|  | March 31, 2021
|  | 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 |  | $ | 1,034 |
Total |  |  |  | $ | — |  |  |  |  | $ | 1,034 |
Derivatives designated as fair value hedges: |  |  |  |  |  |  |  |
Interest rate swaps |  | Other assets |  | $ | 976 |  |  | Other liabilities |  | $ | — |
Total |  |  |  | $ | 976 |  |  |  |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps |  | Other assets |  | $ | 34,962 |  |  | Other liabilities |  | $ | 36,154 |
Interest rate caps |  | Other assets |  | 166 |  |  | Other liabilities |  | 166 |
Credit contracts |  | Other assets |  | 202 |  |  | Other liabilities |  | 182 |
Residential mortgage loan commitments |  | Other assets |  | 196 |  |  | Other liabilities |  | — |
Total |  |  |  | $ | 35,526 |  |  |  |  | $ | 36,502 |
|  | December 31, 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 |  | $ | 196 |  |  | Other liabilities |  | $ | 40,765 |
Total |  |  |  | $ | 196 |  |  |  |  | $ | 40,765 |
Derivatives designated as fair value hedges: |  |  |  |  |  |  |  |
Interest rate swaps |  | Other assets |  | $ | — |  |  | Other liabilities |  | $ | 741 |
Total |  |  |  | $ | — |  |  |  |  | $ | 741 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps |  | Other assets |  | $ | 53,455 |  |  | Other liabilities |  | $ | 56,209 |
Interest rate caps |  | Other assets |  | 46 |  |  | Other liabilities |  | 46 |
Credit contracts |  | Other assets |  | 326 |  |  | Other liabilities |  | 403 |
Residential mortgage loan commitments |  | Other assets |  | 200 |  |  | Other liabilities |  | — |
Total |  |  |  | $ | 54,027 |  |  |  |  | $ | 56,658 |
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 designated as fair value hedges and derivatives not designated as hedges for the three months ended March 31, 2021 and 2020.
|  |  | Amount of Income (Loss) Recognized in Earnings
|  |  | Three Months Ended March 31, |  |
(amounts in thousands) | Income Statement Location |  | 2021 |  | 2020 |  |  |  |
Derivatives designated as fair value hedges: |  |  |  |  |  |  |  |
Recognized on interest rate swaps | Net interest income |  | $ | 4,907 |  |  | $ | — |  |  |  |  |
Recognized on hedged available for sale debt securities | Net interest income |  | (4,907) |  |  | — |  |  |  |  |
Total |  |  | $ | — |  |  | $ | — |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps | Other non-interest income |  | $ | 2,399 |  |  | $ | (1,015) |  |  |  |  |
Interest rate caps | Other non-interest income |  | — |  |  | — |  |  |  |  |
Credit contracts | Other non-interest income |  | 137 |  |  | (132) |  |  |  |  |
Residential mortgage loan commitments | Mortgage banking income |  | (4) |  |  | 137 |  |  |  |  |
Total |  |  | $ | 2,532 |  |  | $ | (1,010) |  |  |  |  |
Effect of Derivative Instruments on Comprehensive Income The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2021 and 2020.
| 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 March 31, |  |  |  | Three Months Ended March 31,
(amounts in thousands) | 2021 |  | 2020 |  |  |  | 2021 |  | 2020
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 9,113 |  |  | $ | (20,346) |  |  | Interest expense |  | $ | (1,459) |  |  | $ | (1,478) |
| — |  |  | — |  |  | Other non-interest income |  | (24,467) |  |  | — |
Total | $ | 9,113 |  |  | $ | (20,346) |  |  |  |  | $ | (25,926) |  |  | $ | (1,478) |
(1) Amounts presented are net of taxes. See NOTE 5 - 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
March 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 98 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 98 |
Interest rate derivative liabilities with institutional counterparties | $ | 35,017 |  |  |  |  |  |  | $ | — |  |  | $ | (35,017) |  |  | $ | — |
| 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, 2020 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 199 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 199 |
Interest rate derivative liabilities with institutional counterparties | $ | 97,641 |  |  |  |  |  |  | $ | — |  |  | $ | (97,641) |  |  | $ | — |
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
March 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 98 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 98 |
Interest rate derivative liabilities with institutional counterparties | $ | 35,017 |  |  |  |  |  |  | $ | — |  |  | $ | (35,017) |  |  | $ | — |
| 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, 2020 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 199 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 199 |
Interest rate derivative liabilities with institutional counterparties | $ | 97,641 |  |  |  |  |  |  | $ | — |  |  | $ | (97,641) |  |  | $ | — |

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 Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative assets at fair value. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDerivativeAssetsAtFairValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=121590274&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration