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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Financial Instruments

The following table presents the fair value of Customers’ derivative financial instruments as well as their presentation on the consolidated balance sheets at December 31, 2019 and 2018.


	December 31, 2019
	Derivative Assets				Derivative Liabilities
(amounts in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as cash flow hedges:
Interest rate swaps	Other assets	$	—	Other liabilities	$	21,374
Total		$	—		$	21,374
Derivatives not designated as hedging instruments:
Interest rate swaps	Other assets	$	23,301	Other liabilities	$	24,797
Interest rate caps	Other assets	9		Other liabilities	9
Credit contracts	Other assets	219		Other liabilities	(241)
Residential mortgage loan commitments	Other assets	79		Other liabilities	—
Total		$	23,608		$	24,565


	December 31, 2018
	Derivative Assets				Derivative Liabilities
(amounts in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as cash flow hedges:
Interest rate swaps	Other assets	$	256	Other liabilities	$	1,502
Total		$	256		$	1,502
Derivatives not designated as hedging instruments:
Interest rate swaps	Other assets	$	14,300	Other liabilities	$	14,730
Credit contracts	Other assets	68		Other liabilities	54
Residential mortgage loan commitments	Other assets	69		Other liabilities	—
Total		$	14,437		$	14,784

Effect of Derivative Instruments on Comprehensive Income

The following table presents amounts included in the consolidated statements of income related to derivatives not designated as hedges for the years ended December 31, 2019, 2018 and 2017.


		Amount of Income Recognized in Earnings For the Years Ended December 31,

(amounts in thousands)	Income Statement Location	2019		2018		2017

Derivatives not designated as hedging instruments:
Interest rate swaps ⁽¹⁾	Other non-interest income	$	2,549	$	3,409	$	604
Interest rate caps	Other non-interest income	24		—		—
Credit contracts	Other non-interest income	589		127		171
Residential mortgage loan commitments	Mortgage banking income	10		9		15
Total		$	3,172	$	3,545	$	790

(1)Includes income recognized from discontinued cash flow hedges for the year ended December 31, 2018.

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, 2019, 2018 and 2017.



	For the Year 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)	2019		2018		2017			2019		2018			2017
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(15,656)	$	1,477	$	406	Interest expense	$	(1,407)	$	95		$	(2,634)
							Other non-interest income ⁽²⁾	—		2,822			—
								$	(1,407)	$	2,917		$	(2,634)

(1)Amounts presented are net of taxes. See Note 4 - 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 income recognized from discontinued cash flow hedges.

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 table 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 table below. Customers has not made a policy election to offset its derivative positions.


					Gross Amounts Not Offset in the Consolidated Balance Sheet
(amounts in thousands)	Gross Amounts Recognized on the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/(Posted)		Net Amount
December 31, 2019
Interest rate derivative assets with institutional counterparties	$	432	$	—		$	—	$	432

Interest rate derivative liabilities with institutional counterparties	$	45,727	$	—		$	(45,727)	$	—


					Gross Amounts Not Offset in the Consolidated Balance Sheet
(amounts in thousands)	Gross Amounts Recognized on the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/(Posted)		Net Amount
December 31, 2018
Interest rate derivative assets with institutional counterparties	$	7,529	$	—		$	1,860	$	5,669

Interest rate derivative liabilities with institutional counterparties	$	9,077	$	—		$	(702)	$	8,375

Summary of Offsetting of Financial Liabilities and Derivative Liabilities


					Gross Amounts Not Offset in the Consolidated Balance Sheet
(amounts in thousands)	Gross Amounts Recognized on the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/(Posted)		Net Amount
December 31, 2019
Interest rate derivative assets with institutional counterparties	$	432	$	—		$	—	$	432

Interest rate derivative liabilities with institutional counterparties	$	45,727	$	—		$	(45,727)	$	—


					Gross Amounts Not Offset in the Consolidated Balance Sheet
(amounts in thousands)	Gross Amounts Recognized on the Consolidated Balance Sheets		Financial Instruments			Cash Collateral Received/(Posted)		Net Amount
December 31, 2018
Interest rate derivative assets with institutional counterparties	$	7,529	$	—		$	1,860	$	5,669

Interest rate derivative liabilities with institutional counterparties	$	9,077	$	—		$	(702)	$	8,375