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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

As of March 31, 2023 and December 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, 2023						December 31, 2022						March 31, 2023						December 31, 2022
AFS debt securities						$	22,500					$	22,500					$	1,476					$	1,777
Deposits						300,000						—						2,487						—
FHLB advances						250,000						—						2,143						—

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, 2023 and December 31, 2022.

						March 31, 2023
						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						$	1,476					Other liabilities						$	—
Total												$	1,476											$	—
Derivatives not designated as hedging instruments:
Interest rate swaps and caps						Other assets						$	33,210					Other liabilities						$	32,956
Credit contracts						Other assets						—						Other liabilities						43
Residential mortgage loan commitments						Other assets						65						Other liabilities						—
Total												$	33,275											$	32,999

						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

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, 2023 and 2022.

									Amount of Income (Loss) Recognized in Earnings
									Three Months Ended March 31,
(amounts in thousands)			Income Statement Location						2023						2022
Derivatives designated as fair value hedges:
Recognized on interest rate swaps			Net interest income						$	(301)					$	2,521
Recognized on hedged AFS debt securities			Net interest income						301						(2,521)
Total									$	—					$	—
Derivatives not designated as hedging instruments:
Interest rate swaps and caps			Other non-interest income						$	(24)					$	961
Credit contracts			Other non-interest income						(28)						3
Residential mortgage loan commitments			Other non-interest income						11						(31)
Total									$	(41)					$	933

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 Sheet																		Gross Amounts Not Offset in the Consolidated Balance Sheet												Net Amount
(amounts in thousands)									Financial Instruments						Cash Collateral Received/Posted
March 31, 2023
Interest rate derivative assets with institutional counterparties			$	22,073																	$	(1,061)					$	(21,012)					$	—
Interest rate derivative liabilities with institutional counterparties			$	1,061																	$	(1,061)					$	—					$	—

			Gross Amounts Recognized on the Consolidated Balance Sheet																		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)					$	—					$	—

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 Sheet																		Gross Amounts Not Offset in the Consolidated Balance Sheet												Net Amount
(amounts in thousands)									Financial Instruments						Cash Collateral Received/Posted
March 31, 2023
Interest rate derivative assets with institutional counterparties			$	22,073																	$	(1,061)					$	(21,012)					$	—
Interest rate derivative liabilities with institutional counterparties			$	1,061																	$	(1,061)					$	—					$	—

			Gross Amounts Recognized on the Consolidated Balance Sheet																		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)					$	—					$	—

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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.

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