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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 balance sheet as of March 31, 2020 and December 31, 2019.


	March 31, 2020
	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	$	578	Other liabilities	$	48,344
Total		$	578		$	48,344
Derivatives not designated as hedging instruments:
Interest rate swaps	Other assets	$	65,207	Other liabilities	$	69,259
Interest rate caps	Other assets	18		Other liabilities	18
Credit contracts	Other assets	431		Other liabilities	568
Residential mortgage loan commitments	Other assets	215		Other liabilities	—
Total		$	65,871		$	69,845


	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

Effect of Derivative Financial Instruments on Comprehensive Income

The following tables present amounts included in the consolidated statements of income related to derivatives not designated as hedges for the three months ended March 31, 2020 and 2019.


		Amount of Income (Loss) Recognized in Earnings
		Three Months Ended March 31,
(amounts in thousands)	Income Statement Location	2020		2019
Derivatives not designated as hedging instruments:
Interest rate swaps	Other non-interest income	$	(1,015)	$	(287)
Interest rate caps	Other non-interest income	—		—
Credit contracts	Other non-interest income	(132)		102
Residential mortgage loan commitments	Mortgage banking income	137		8
Total		$	(1,010)	$	(177)

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, 2020 and 2019.


	Three months ended March 31,								Three months ended March 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)	2020		2019				2020		2019
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(20,346)	$	(5,135)	Interest expense		$	(1,478)	$	413

(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.

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 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, 2020
Interest rate derivative assets with institutional counterparties	$	578	$	—	$	—	$	578

Interest rate derivative liabilities with institutional counterparties	$	117,602	$	—	$	(117,602)	$	—


	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, 2019
Interest rate derivative assets with institutional counterparties	$	432	$	—	$	—	$	432

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

Summary of Offsetting of Financial Liabilities and Derivative Liabilities


	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, 2020
Interest rate derivative assets with institutional counterparties	$	578	$	—	$	—	$	578

Interest rate derivative liabilities with institutional counterparties	$	117,602	$	—	$	(117,602)	$	—


	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, 2019
Interest rate derivative assets with institutional counterparties	$	432	$	—	$	—	$	432

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