Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015 were as follows:

		March 31, 2016										December 31, 2015
(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	$	2,400		$	—	$	2,400		$	45,964	$	2,768		$	—	$	2,768
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	17,808		306			—		306			49,287		809			—		809
Foreign exchange forwards	Other liabilities	78,440		(2,932		)	—		(2,932		)	6,586		(669		)	—		(669		)
Net exposure				(2,626		)	—		(2,626		)			140			—		140
Other derivative instruments:
Equity warrant assets	Other assets	207,504		130,670			—		130,670			210,102		137,105			—		137,105
Other derivatives:
Client foreign exchange forwards	Other assets	1,369,777		46,713			—		46,713			935,514		29,722			1,900		27,822
Client foreign exchange forwards	Other liabilities	1,160,600		(41,896		)	—		(41,896		)	841,182		(24,978		)	—		(24,978		)
Client foreign currency options	Other assets	30,568		600			—		600			46,625		706			—		706
Client foreign currency options	Other liabilities	30,568		(600		)	—		(600		)	46,625		(706		)	—		(706		)
Client interest rate derivatives	Other assets	299,750		6,432			—		6,432			422,741		3,973			—		3,973
Client interest rate derivatives	Other liabilities	339,685		(7,263		)	—		(7,263		)	422,741		(4,384		)	—		(4,384		)
Net exposure				3,986			—		3,986					4,333			1,900		2,433
Net				$	134,430		$	—	$	134,430				$	144,346		$	1,900	$	142,446

(1) Cash collateral received from our counterparties in relation to market value exposures of derivative contracts in our favor 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 March 31, 2016 remain at investment grade or higher and there were no material changes in their credit ratings during the three months endedMarch 31, 2016.

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 the three months endedMarch 31, 2016 and 2015 is as follows:

		Three months ended March 31,
(Dollars in thousands)	Statement of income location	2016			2015
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	609		$	638
Changes in fair value of interest rate swaps	Net (losses) gains on derivative instruments	(17		)	(3		)
Net gains associated with interest rate risk derivatives		$	592		$	635
Derivatives not designated as hedging instruments:
Currency exchange risks:
Gains (losses) on revaluations of foreign currency instruments	Other noninterest income	$	2,491		$	(20,159	)
(Losses) gains on internal foreign exchange forward contracts, net	Net (losses) gains on derivative instruments	(2,208		)	20,018
Net losses associated with currency risk		$	283		$	(141	)
Other derivative instruments:
Gains on revaluations of client foreign exchange forward contracts, net	Other noninterest income	$	3,653		$	624
Losses on client foreign exchange forward contracts, net	Net (losses) gains on derivative instruments	(5,654		)	(507		)
Net (losses) gains associated with client foreign exchange forward contracts		$	(2,001	)	$	117
Net gains on equity warrant assets	Net (losses) gains on derivative instruments	$	6,605		$	20,278
Net losses on other derivatives	Net (losses) gains on derivative instruments	$	(421	)	$	(57	)

Offsetting Assets

The following table summarizes our assets subject to enforceable master netting arrangements as of March 31, 2016 and December 31, 2015:

								Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements
(Dollars in thousands)	Gross Amounts of Recognized Assets		Gross Amounts offset in the Statement of Financial Position			Net Amounts of Assets Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Received			Net Amount
March 31, 2016
Derivative Assets:
Interest rate swaps	$	2,400	$	—		$	2,400	$	(2,400	)	$	—		$	—
Foreign exchange forwards	47,019		—			47,019		(20,366		)	—			26,653
Foreign currency options	600		—			600		(220		)	—			380
Client interest rate derivatives	6,432		—			6,432		(6,406		)	—			26
Total derivative assets:	56,451		—			56,451		(29,392		)	—			27,059
Reverse repurchase, securities borrowing, and similar arrangements	288,421		—			288,421		(288,421		)	—			—
Total	$	344,872	$	—		$	344,872	$	(317,813	)	$	—		$	27,059
December 31, 2015
Derivative Assets:
Interest rate swaps	$	2,768	$	—		$	2,768	$	(2,768	)	$	—		$	—
Foreign exchange forwards	30,531		—			30,531		(18,141		)	(1,900		)	10,490
Foreign currency options	711		(5		)	706		(706		)	—			—
Client interest rate derivatives	3,973		—			3,973		(3,973		)	—			—
Total derivative assets:	37,983		(5		)	37,978		(25,588		)	(1,900		)	10,490
Reverse repurchase, securities borrowing, and similar arrangements	125,391		—			125,391		(125,391		)	—			—
Total	$	163,374	$	(5	)	$	163,369	$	(150,979	)	$	(1,900	)	$	10,490

Offsetting Liabilities

The following table summarizes our liabilities subject to enforceable master netting arrangements as of March 31, 2016 and December 31, 2015:

								Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements
(Dollars in thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts offset in the Statement of Financial Position			Net Amounts of Liabilities Presented in the Statement of Financial Position		Financial Instruments			Cash Collateral Pledged		Net Amount
March 31, 2016
Derivative Liabilities:
Foreign exchange forwards	$	44,828	$	—		$	44,828	$	(32,507	)	$	—	$	12,321
Foreign currency options	600		—			600		(380		)	—		220
Client interest rate derivatives	7,263		—			7,263		(7,263		)	—		—
Total derivative liabilities:	52,691		—			52,691		(40,150		)	—		12,541
Repurchase, securities lending, and similar arrangements	—		—			—		—			—		—
Total	$	52,691	$	—		$	52,691	$	(40,150	)	$	—	$	12,541
December 31, 2015
Derivative Liabilities:
Foreign exchange forwards	$	25,647	$	—		$	25,647	$	(10,818	)	$	—	$	14,829
Foreign currency options	711		(5		)	706		—			—		706
Client interest rate derivatives	4,384		—			4,384		(4,384		)	—		—
Total derivative liabilities:	30,742		(5		)	30,737		(15,202		)	—		15,535
Repurchase, securities lending, and similar arrangements	—		—			—		—			—		—
Total	$	30,742	$	(5	)	$	30,737	$	(15,202	)	$	—	$	15,535