Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Total Notional or Contractual Amounts, Fair Value, Collateral and Net Exposure of Derivative Financial Instruments

The total notional or contractual amounts, fair value, collateral and net exposure of our derivative financial instruments at December 31, 2012 and 2011 were as follows:

		December 31, 2012										December 31, 2011
(Dollars in thousands)	Balance Sheet Location	Notional or Contractual Amount		Fair Value			Collateral (1)		Net Exposure (2)			Notional or Contractual Amount		Fair Value			Collateral (1)		Net Exposure (2)
Derivatives designated as hedging instruments:
Interest rate risks:
Interest rate swaps	Other assets	$	45,964	$	9,005		$	6,110	$	2,895		$	187,393	$	11,441		$	—	$	11,441
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	51,010		488			—		488			68,518		514			—		514
Foreign exchange forwards	Other liabilities	102,956		(1,728		)	—		(1,728		)	6,822		(199		)	—		(199		)
Net exposure				(1,240		)	—		(1,240		)			315			—		315
Other derivative instruments:
Equity warrant assets	Other assets	164,332		74,272			—		74,272			144,586		66,953			—		66,953
Other derivatives:
Client foreign exchange forwards	Other assets	385,470		11,864			—		11,864			387,714		17,541			—		17,541
Client foreign exchange forwards	Other liabilities	356,026		(9,930		)	—		(9,930		)	366,835		(16,346		)	—		(16,346		)
Client foreign currency options	Other assets	132,237		1,189			—		1,189			75,600		271			—		271
Client foreign currency options	Other liabilities	132,237		(1,189		)	—		(1,189		)	75,600		(271		)	—		(271		)
Loan conversion options	Other assets	9,782		890			—		890			14,063		923			—		923
Client interest rate derivatives	Other assets	144,950		558			—		558			39,713		50			—		50
Client interest rate derivatives	Other liabilities	144,950		(590		)	—		(590		)	39,713		(52		)	—		(52		)
Net exposure				2,792			—		2,792					2,116			—		2,116
Net				$	84,829		$	6,110	$	78,719				$	80,825		$	—	$	80,825

(1) Cash collateral received from our counterparty for our interest rate swap agreement is recorded as a component of “short-term borrowings” on our consolidated balance sheets.

(2) Net exposure for contracts in a gain position reflects the replacement cost in the event of nonperformance by all such counterparties. The credit ratings of our institutional counterparties as of December 31, 2012 remain at investment grade or higher and there were no material changes in their credit ratings for the year ended December 31, 2012

Summary of Derivative Activity and Related Impact on Consolidated Statements of Income

A summary of our derivative activity and the related impact on our consolidated statements of income for 2012, 2011 and 2010 is as follows:

		Year ended December 31,
(Dollars in thousands)	Statement of income location	2012			2011			2010
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	5,154		$	14,486		$	24,682
Changes in fair value of interest rate swaps	Net gains on derivative instruments	603			(470		)	—
Net gains associated with interest rate risk derivatives		$	5,757		$	14,016		$	24,682
Derivatives not designated as hedging instruments:
Currency exchange risks:
Gains (losses) on revaluations of foreign currency instruments	Other noninterest income	$	1,677		$	(2,096	)	$	(374	)
(Losses) gains on internal foreign exchange forward contracts, net	Net gains on derivative instruments	(103		)	1,973			710
Net gains (losses) associated with currency risk		$	1,574		$	(123	)	$	336
Other derivative instruments:
Gains on equity warrant assets	Net gains on derivative instruments	$	19,385		$	37,439		$	6,556
Gains on client foreign exchange forward contracts, net	Net gains on derivative instruments	$	3,901		$	2,259		$	1,914
Net (losses) gains on other derivatives (1)	Net gains on derivative instruments	$	(1,666	)	$	(2,520	)	$	342

(1) Primarily represents the change in fair value of loan conversion options.