XML 49 R37.htm IDEA: XBRL DOCUMENT v3.21.2

Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

As of September 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
						September 30,						December 31,						September 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 September 30, 2021 and December 31, 2020.

						September 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						$	32,905					Other liabilities						$	34,216
Interest rate caps						Other assets						150						Other liabilities						150
Credit contracts						Other assets						170						Other liabilities						207
Residential mortgage loan commitments						Other assets						163						Other liabilities						—
Total												$	33,388											$	34,573

						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 nine months ended September 30, 2021 and 2020.

									Amount of Income (Loss) Recognized in Earnings
									Three Months Ended September 30,												Nine Months Ended September 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						$	—					$	—					$	4,777					$	—
Recognized on hedged available for sale debt securities			Net interest income						—						—						(4,777)						—
Total									$	—					$	—					$	—					$	—
Derivatives not designated as hedging instruments:
Interest rate swaps			Other non-interest income						$	517					$	387					$	2,540					$	(6,191)
Interest rate caps			Other non-interest income						—						—						—						—
Credit contracts			Other non-interest income						7						162						81						1,436
Residential mortgage loan commitments			Mortgage banking income						(138)						403						(37)						376
Total									$	386					$	952					$	2,584					$	(4,379)

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, 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 September 30,																		Three Months Ended September 30,
(amounts in thousands)			2021						2020												2021						2020
Derivatives in cash flow hedging relationships:
Interest rate swaps			$	—					$	429					Interest expense						$	—					$	(4,400)

															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)															2021						2020																								2021						2020
Derivatives in cash flow hedging relationships:
Interest rate swaps															$	9,117					$	(24,602)					Interest expense																		$	(2,505)					$	(8,596)
															—						—						Other non-interest income																		(24,467)						—
Total															$	9,117					$	(24,602)																							$	(26,972)					$	(8,596)

(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
September 30, 2021
Interest rate derivative assets with institutional counterparties			$	—																	$	—					$	—					$	—
Interest rate derivative liabilities with institutional counterparties			$	31,693																	$	—					$	(31,693)					$	—

			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
September 30, 2021
Interest rate derivative assets with institutional counterparties			$	—																	$	—					$	—					$	—
Interest rate derivative liabilities with institutional counterparties			$	31,693																	$	—					$	(31,693)					$	—

			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://www.xbrl.org/2003/role/disclosureRef
-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:	dtr-types: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://www.xbrl.org/2003/role/disclosureRef
-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:	dtr-types: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:	dtr-types: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=125515794&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=125515794&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=125515794&loc=SL5624171-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types: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=125515794&loc=SL5624163-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration