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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

As of June 30, 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
						June 30,						December 31,						June 30,						December 31,
(amounts in thousands)						2021						2020						2021						2020
Available for sale debt securities						$	80,500					$	272,159					$	846					$	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 June 30, 2021 and December 31, 2020.

						June 30, 2021
						Derivative Assets												Derivative Liabilities
(amounts in thousands)						Balance Sheet Location						Fair Value						Balance Sheet Location						Fair Value
Derivatives designated as fair value hedges:
Interest rate swaps						Other assets						$	846					Other liabilities						$	—
Total												$	846											$	—
Derivatives not designated as hedging instruments:
Interest rate swaps						Other assets						$	36,795					Other liabilities						$	38,367
Interest rate caps						Other assets						146						Other liabilities						146
Credit contracts						Other assets						201						Other liabilities						243
Residential mortgage loan commitments						Other assets						301						Other liabilities						—
Total												$	37,443											$	38,756

						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 and six months ended June 30, 2021 and 2020.

									Amount of Income (Loss) Recognized in Earnings
									Three Months Ended June 30,												Six Months Ended June 30,
(amounts in thousands)			Income Statement Location						2021						2020						2021						2020
Derivatives designated as fair value hedges:
Recognized on interest rate swaps			Net interest income						$	(130)					$	—					$	4,777					$	—
Recognized on hedged available for sale debt securities			Net interest income						130						—						(4,777)						—
Total									$	—					$	—					$	—					$	—
Derivatives not designated as hedging instruments:
Interest rate swaps			Other non-interest income						$	(376)					$	(5,563)					$	2,023					$	(6,578)
Interest rate caps			Other non-interest income						—						—						—						—
Credit contracts			Other non-interest income						(63)						1,405						74						1,274
Residential mortgage loan commitments			Mortgage banking income						105						(164)						101						(27)
Total									$	(334)					$	(4,322)					$	2,198					$	(5,331)

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 six months ended June 30, 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 June 30,																		Three Months Ended June 30,
(amounts in thousands)			2021						2020												2021						2020
Derivatives in cash flow hedging relationships:
Interest rate swaps			$	4					$	(4,685)					Interest expense						$	(1,046)					$	(2,718)

															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
															Six Months Ended June 30,																														Six Months Ended June 30,
(amounts in thousands)															2021						2020																								2021						2020
Derivatives in cash flow hedging relationships:
Interest rate swaps															$	9,117					$	(25,031)					Interest expense																		$	(2,505)					$	(4,196)
															—						—						Other non-interest income																		(24,467)						—
Total															$	9,117					$	(25,031)																							$	(26,972)					$	(4,196)

(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
June 30, 2021
Interest rate derivative assets with institutional counterparties			$	—																	$	—					$	—					$	—
Interest rate derivative liabilities with institutional counterparties			$	35,590																	$	—					$	(35,590)					$	—

			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
June 30, 2021
Interest rate derivative assets with institutional counterparties			$	—																	$	—					$	—					$	—
Interest rate derivative liabilities with institutional counterparties			$	35,590																	$	—					$	(35,590)					$	—

			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)					$	—

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