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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

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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