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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

As of December 31, 2022 and 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)						December 31,												December 31,
						2022						2021						2022						2021
AFS debt securities						$	22,500					$	80,500					$	1,777					$	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 at December 31, 2022 and 2021.

						December 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						$	1,777					Other liabilities						$	—
Total												$	1,777											$	—
Derivatives not designated as hedging instruments:
Interest rate swaps and caps						Other assets						$	42,589					Other liabilities						$	42,076
Credit contracts						Other assets						14						Other liabilities						30
Residential mortgage loan commitments						Other assets						55						Other liabilities						—
Total												$	42,658											$	42,106

						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 and caps						Other assets						$	25,235					Other liabilities						$	26,343
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 Instruments on 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 years ended December 31, 2022, 2021 and 2020.

									Amount of Income Recognized in Earnings For the Years Ended December 31,
(amounts in thousands)			Income Statement Location																					2022						2021						2020
Derivatives designated as fair value hedges:
Recognized on interest rate swaps			Net interest income						$	3,422					$	5,680					$	741
Recognized on hedged AFS debt securities			Net interest income						(3,422)						(5,680)						(741)
Total									$	—					$	—					$	—
Derivatives not designated as hedging instruments:
Interest rate swaps and caps			Non-interest income (1)						$	2,338					$	3,159					$	(5,482)
Credit contracts			Non-interest income (1)						53						48						1,531
Residential mortgage loan commitments			Non-interest income (2)						(124)						(20)						121
Total									$	2,267					$	3,187					$	(3,830)

(1)    Included in unrealized gain (loss) on derivatives.

(2)    Included in mortgage banking income.

Effect of Derivative Instruments on Comprehensive Income

The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the years ended December 31, 2022, 2021 and 2020.

						For the Years Ended December 31,
						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
(amounts in thousands)						2022						2021						2020												2022						2021						2020
Derivatives in cash flow hedging relationships:
Interest rate swaps						$	—					$	9,117					$	(23,227)					Interest expense						$	—					$	(2,505)					$	(13,092)
																								Non-interest income (2)						—						(24,467)						—
																								Total						$	—					$	(26,972)					$	(13,092)

(1)Amounts presented are net of taxes. Refer to 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												Net Amount
(amounts in thousands)																					Financial Instruments						Cash Collateral Received/Posted
December 31, 2022
Interest rate derivative assets with institutional counterparties			$	29,706																	$	(619)					$	(29,087)					$	—
Interest rate derivative liabilities with institutional counterparties			$	619																	$	(619)					$	—					$	—

			Gross Amounts Recognized on the Consolidated Balance Sheets																		Gross Amounts Not Offset in the Consolidated Balance Sheet												Net Amount
(amounts in thousands)																					Financial Instruments						Cash Collateral Received/Posted
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												Net Amount
(amounts in thousands)																					Financial Instruments						Cash Collateral Received/Posted
December 31, 2022
Interest rate derivative assets with institutional counterparties			$	29,706																	$	(619)					$	(29,087)					$	—
Interest rate derivative liabilities with institutional counterparties			$	619																	$	(619)					$	—					$	—

			Gross Amounts Recognized on the Consolidated Balance Sheets																		Gross Amounts Not Offset in the Consolidated Balance Sheet												Net Amount
(amounts in thousands)																					Financial Instruments						Cash Collateral Received/Posted
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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