Derivatives (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional and gross fair values of derivatives

The following table presents the total notional and gross fair value of the Company’s derivatives as of June 30, 2018 and December 31, 2017. The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting arrangements, as included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet.

($ in thousands)	June 30, 2018							December 31, 2017
	Notional Amount			Fair Value				Notional Amount			Fair Value
				Derivative Assets		Derivative  Liabilities					Derivative Assets		Derivative  Liabilities
Derivatives designated as hedging instruments:
Fair value hedges:
Interest rate swaps	$	35,811		$	—	$	8,647	$	35,811		$	—	$	6,799
Net investment hedges:
Foreign exchange forwards	95,515			2,316		—		—			—		—
Total derivatives designated as hedging instruments	$	131,326		$	2,316	$	8,647	$	35,811		$	—	$	6,799
Derivatives not designated as hedging instruments:
Interest rate swaps and options	$	11,217,468		$	64,225	$	91,378	$	9,333,860		$	58,633	$	57,958
Foreign exchange forwards, spot and swaps	959,645			9,408		11,281		770,215			5,840		10,170
RPAs	118,024			1		77		49,033			1		8
Equity warrants	—		(1)	1,878		—		—		(1)	1,672		—
Commodity swaps and options	—		(2)	3,628		3,159		—			—		—
Total derivatives not designated as hedging instruments	$	12,295,137		$	79,140	$	105,895	$	10,153,108		$	66,146	$	68,136

(1) The Company held warrants in four public companies and 14 private companies as of June 30, 2018. In comparison, the Company held warrants in four public companies and 11 private companies as of December 31, 2017.

(2) The notional amount of the Company’s commodity contracts entered with its customers totaled 1.8 million barrels of oil and 5.2 million units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2018. The Company entered into the same notional amounts of commodity contracts with mirrored terms with third party financial institutions to mitigate its exposure.

Schedule of net gains (losses) recognized on the Consolidated Statement of Income related to derivatives designated as fair value hedge

The following table presents the net (losses) gains recognized on the Consolidated Statement of Income related to the derivatives designated as fair value hedges for the three and six months ended June 30, 2018 and 2017:

($ in thousands)	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
(Losses) gains recorded in interest expense:
Recognized on interest rate swaps	$	(396	)	$	(706	)	$	(1,848	)	$	(1,523	)
Recognized on certificates of deposit	$	440		$	664		$	1,719		$	1,352

Schedule of the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of the hedged certificates of deposit

The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of the hedged certificates of deposit as of June 30, 2018:

($ in thousands)	June 30, 2018
	Hedged Items Currently Designated
	Carrying Amount of the Hedged Assets (Liabilities) (1)			Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities)
Certificates of deposit	$	(29,339	)	$	6,464

(1) Represents the full carrying amount of the hedged certificates of deposit as of June 30, 2018.

Schedule of notional amounts and gross fair values of outstanding derivative positions

The following tables represent the notional amounts and the gross fair values of foreign exchange derivative contracts outstanding as of June 30, 2018 and December 31, 2017, respectively:

($ in thousands)	June 30, 2018
	Customer Counterparty						Financial Counterparty
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Assets		Liabilities				Assets		Liabilities
Forwards and spot	$	353,439	$	5,298	$	3,778	$	77,152	$	47	$	462
Swaps	19,031		2		874		510,023		4,061		6,167
Total	$	372,470	$	5,300	$	4,652	$	587,175	$	4,108	$	6,629

($ in thousands)	December 31, 2017
	Customer Counterparty						Financial Counterparty
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Assets		Liabilities				Assets		Liabilities
Forwards and spot	$	163,389	$	2,189	$	752	$	155,872	$	662	$	7,800
Swaps	4,318		—		98		446,636		2,989		1,520
Total	$	167,707	$	2,189	$	850	$	602,508	$	3,651	$	9,320

The notional amounts and fair values of the commodity derivative positions outstanding as of June 30, 2018 are presented in the following table. The Company did not have any commodity contracts in 2017.

($ in thousands)	June 30, 2018
	Customer Counterparties							Financial Counterparties
	Notional		Fair Value					Notional		Fair Value
	Unit	Amount	Assets		Liabilities			Unit	Amount	Assets		Liabilities
Crude oil:							Crude oil:
Written options	Barrels	736,500	$	576	$	271	Purchased options	Barrels	736,500	$	—	$	510
Collars	Barrels	812,100	1,720		—		Collars	Barrels	812,100	—		1,499
Swaps	Barrels	292,811	925		—		Swaps	Barrels	292,811	—		863
Total		1,841,411	$	3,221	$	271	Total		1,841,411	$	—	$	2,872
Natural gas:							Natural gas:
Collars	MMBTUs	1,540,000	$	85	$	—	Collars	MMBTUs	1,540,000	$	—	$	4
Swaps	MMBTUs	3,650,000	322		—		Swaps	MMBTUs	3,650,000	—		12
Total		5,190,000	$	407	$	—	Total		5,190,000	$	—	$	16
Total			$	3,628	$	271	Total			$	—	$	2,888

The following tables represent the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of June 30, 2018 and December 31, 2017, respectively.

($ in thousands)	June 30, 2018
	Customer Counterparties							Financial Counterparties
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Assets		Liabilities					Assets		Liabilities
Written options	$	843,965	$	—	$	696	Purchased options	$	843,965	$	711	$	—
Sold collars and corridors	335,169		147		1,004		Collars and corridors	335,169		1,015		147
Swaps	4,425,902		15,902		76,297		Swaps	4,433,298		46,450		13,234
Total	$	5,605,036	$	16,049	$	77,997	Total	$	5,612,432	$	48,176	$	13,381

($ in thousands)	December 31, 2017
	Customer Counterparties							Financial Counterparties
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Assets		Liabilities					Assets		Liabilities
Written options	$	691,548	$	—	$	223	Purchased options	$	691,548	$	233	$	—
Sold collars and corridors	247,542		204		267		Collars and corridors	247,542		271		211
Swaps	3,724,295		32,241		24,879		Swaps	3,731,385		25,684		32,378
Total	$	4,663,385	$	32,445	$	25,369	Total	$	4,670,475	$	26,188	$	32,589

The following table represents the notional amounts and the gross fair values of RPAs purchased and sold outstanding as of June 30, 2018 and December 31, 2017, respectively:

($ in thousands)	June 30, 2018						December 31, 2017
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Assets		Liabilities				Assets		Liabilities
RPAs - protection sold	$	105,754	$	—	$	77	$	35,208	$	—	$	8
RPAs - protection purchased	12,270		1		—		13,825		1		—
Total RPAs	$	118,024	$	1	$	77	$	49,033	$	1	$	8

Schedule of the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments

The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three and six months ended June 30, 2018 and 2017:

($ in thousands)	Location in Consolidated Statement of Income	Three Months Ended June 30,						Six Months Ended June 30,
		2018			2017			2018			2017
Derivatives not designated as hedging instruments:
Interest rate swaps and options	Derivative fees and other income	$	88		$	(678	)	$	1,194		$	(1,744	)
Foreign exchange spot and forwards	Letters of credit fees and foreign exchange income	2,646			8,378			6,503			14,216
RPAs	Derivative fees and other income	(56		)	—			(69		)	1
Equity warrants	Ancillary loan fees and other income	598			786			439			786
Commodity swaps and options	Derivative fees and other income	40			—			40			—
Net gains		$	3,316		$	8,486		$	8,107		$	13,259

Schedule of gross derivatives on the Consolidated Balance Sheets and the respective collateral received or pledged in the form of other financial instruments

The following tables present gross derivatives on the Consolidated Balance Sheet and the respective collateral received or pledged in the form of other financial instruments, which are generally marketable securities and/or cash. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of overcollateralization are not shown:

($ in thousands)	As of June 30, 2018
	Total		Contracts Not Subject to Master Netting Arrangements		Contracts Subject to Master Netting Arrangements
	Gross Amounts Recognized		Gross Amounts Recognized		Gross Amounts Recognized		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
											Derivative Amount				Collateral Received				Net Amount
Derivative Assets	$	81,456	$	27,141	$	54,315	$	—	$	54,315	$	(18,672	)	(1)	$	(33,615	)	(2)	$	2,028
	Gross Amounts Recognized		Gross Amounts Recognized		Gross Amounts Recognized		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
											Derivative Amount				Collateral  Pledged				Net Amount
Derivative Liabilities	$	114,542	$	82,965	$	31,577	$	—	$	31,577	$	(18,672	)	(1)	$	(12,889	)	(3)	$	16

($ in thousands)	As of December 31, 2017
	Total		Contracts Not Subject to Master Netting Arrangements		Contracts Subject to Master Netting Arrangements
	Gross Amounts Recognized		Gross Amounts Recognized		Gross Amounts Recognized		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
											Derivative Amounts				Collateral Received				Net Amount
Derivative Assets	$	66,146	$	36,941	$	29,205	$	—	$	29,205	$	(18,955	)	(1)	$	(9,839	)	(2)	$	411
	Gross Amounts Recognized		Gross Amounts Recognized		Gross Amounts Recognized		Gross Amounts Offset on the Consolidated Balance Sheet		Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet
											Derivative Amounts				Collateral  Pledged				Net Amount
Derivative Liabilities	$	74,935	$	26,732	$	48,203	$	—	$	48,203	$	(18,955	)	(1)	$	(28,796	)	(3)	$	452

(1) Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable master netting arrangements if the Company has elected to net.

(2) Represents cash and securities received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements, including $10.1 million and $8.6 million of cash collateral received as of June 30, 2018 and December 31, 2017, respectively.

(3) Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements, including $4.1 million and $10.7 million of cash collateral posted as of June 30, 2018 and December 31, 2017, respectively.