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Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended
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Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Assets at Fair Value | As of March 31, 2022, 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, 2022 |  | December 31, 2021 |  | March 31, 2022 |  | December 31, 2021
AFS debt securities |  | $ | 64,000 |  |  | $ | 80,500 |  |  | $ | 3,653 |  |  | $ | 1,750 |
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 consolidated balance sheets as of March 31, 2022 and December 31, 2021.
|  | March 31, 2022
|  | 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 |  | $ | 3,653 |  |  | Other liabilities |  | $ | — |
Total |  |  |  | $ | 3,653 |  |  |  |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps |  | Other assets |  | $ | 16,007 |  |  | Other liabilities |  | $ | 16,158 |
Interest rate caps |  | Other assets |  | 2,090 |  |  | Other liabilities |  | 2,090 |
Credit contracts |  | Other assets |  | 55 |  |  | Other liabilities |  | 122 |
Residential mortgage loan commitments |  | Other assets |  | 149 |  |  | Other liabilities |  | — |
Total |  |  |  | $ | 18,301 |  |  |  |  | $ | 18,370 |
|  | December 31, 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 |  | $ | 1,750 |  |  | Other liabilities |  | $ | — |
Total |  |  |  | $ | 1,750 |  |  |  |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps |  | Other assets |  | $ | 24,747 |  |  | Other liabilities |  | $ | 25,855 |
Interest rate caps |  | Other assets |  | 488 |  |  | Other liabilities |  | 488 |
Credit contracts |  | Other assets |  | 131 |  |  | Other liabilities |  | 201 |
Residential mortgage loan commitments |  | Other assets |  | 179 |  |  | Other liabilities |  | — |
Total |  |  |  | $ | 25,545 |  |  |  |  | $ | 26,544 |
Effect of Derivative Financial Instruments on Net Income and Comprehensive Income | The following table presents 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, 2022 and 2021.
|  |  | Amount of Income (Loss) Recognized in Earnings
|  |  | Three Months Ended March 31, |  |
(amounts in thousands) | Income Statement Location |  | 2022 |  | 2021 |  |  |  |
Derivatives designated as fair value hedges: |  |  |  |  |  |  |  |
Recognized on interest rate swaps | Net interest income |  | $ | 2,521 |  |  | $ | 4,907 |  |  |  |  |
Recognized on hedged AFS debt securities | Net interest income |  | (2,521) |  |  | (4,907) |  |  |  |  |
Total |  |  | $ | — |  |  | $ | — |  |  |  |  |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps | Other non-interest income |  | $ | 961 |  |  | $ | 2,399 |  |  |  |  |
Interest rate caps | Other non-interest income |  | — |  |  | — |  |  |  |  |
Credit contracts | Other non-interest income |  | 3 |  |  | 137 |  |  |  |  |
Residential mortgage loan commitments | Mortgage banking income |  | (31) |  |  | (4) |  |  |  |  |
Total |  |  | $ | 933 |  |  | $ | 2,532 |  |  |  |  |
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, 2022 and 2021.
| 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) | 2022 |  | 2021 |  |  |  | 2022 |  | 2021
Derivatives in cash flow hedging relationships: |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | — |  |  | $ | 9,113 |  |  | Interest expense |  | $ | — |  |  | $ | (1,459) |
|  |  |  |  | Other non-interest income (2) |  | — |  |  | (24,467) |
|  |  |  |  |  |  | $ | — |  |  | $ | (25,926) |
(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. (2) Includes loss on cash flow hedge derivative terminations.
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 tables 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 tables 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, 2022 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 6,546 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 6,546 |
Interest rate derivative liabilities with institutional counterparties | $ | 4,115 |  |  |  |  |  |  | $ | — |  |  | $ | (4,115) |  |  | $ | — |
| 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, 2021 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | — |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest rate derivative liabilities with institutional counterparties | $ | 23,348 |  |  |  |  |  |  | $ | — |  |  | $ | (23,348) |  |  | $ | — |
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 tables 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 tables 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, 2022 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 6,546 |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 6,546 |
Interest rate derivative liabilities with institutional counterparties | $ | 4,115 |  |  |  |  |  |  | $ | — |  |  | $ | (4,115) |  |  | $ | — |
| 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, 2021 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | — |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest rate derivative liabilities with institutional counterparties | $ | 23,348 |  |  |  |  |  |  | $ | — |  |  | $ | (23,348) |  |  | $ | — |

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