Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016 were as follows:

		December 31, 2017										December 31, 2016
(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	$	810		$	89	$	721
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	50,889		414			39		375			219,950		3,057			—		3,057
Foreign exchange forwards	Other liabilities	425,055		(5,201		)	—		(5,201		)	54,338		(968		)	—		(968		)
Net exposure				(4,787		)	39		(4,826		)			2,089			—		2,089
Other derivative instruments:
Equity warrant assets	Other assets	211,253		123,763			—		123,763			211,434		131,123			—		131,123
Other derivatives:
Client foreign exchange forwards	Other assets	2,203,643		95,035			3,691		91,344			1,251,308		54,587			12,579		42,008
Client foreign exchange forwards	Other liabilities	2,092,207		(90,253		)	—		(90,253		)	1,068,991		(43,317		)	—		(43,317		)
Client foreign currency options	Other assets	102,678		1,187			—		1,187			775,000		10,383			—		10,383
Client foreign currency options	Other liabilities	102,678		(1,187		)	—		(1,187		)	775,000		(10,383		)	—		(10,383		)
Client interest rate derivatives	Other assets	726,984		11,753			—		11,753			583,511		10,110			—		10,110
Client interest rate derivatives	Other liabilities	782,586		(11,940		)	—		(11,940		)	627,639		(9,770		)	—		(9,770		)
Net exposure				4,595			3,691		904					11,610			12,579		(969		)
Net				$	123,571		$	3,730	$	119,841				$	145,632		$	12,668	$	132,964

(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 December 31, 2017 remain at investment grade or higher and there were no material changes in their credit ratings for the year ended December 31, 2017.

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 2017, 2016 and 2015 is as follows:

		Year ended December 31,
(Dollars in thousands)	Statement of income location	2017			2016			2015
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	1,053		$	2,341		$	2,526
Changes in fair value of interest rate swaps	Other noninterest income	(7		)	(35		)	(20		)
Net gains associated with interest rate risk derivatives		$	1,046		$	2,306		$	2,506
Derivatives not designated as hedging instruments:
Currency exchange risks:
Gains (losses) on revaluations of internal foreign currency instruments, net	Other noninterest income	$	33,161		$	(16,676	)	$	(12,735	)
(Losses) gains on internal foreign exchange forward contracts, net	Other noninterest income	(32,286		)	16,136			12,377
Net gains (losses) associated with internal currency risk		$	875		$	(540	)	$	(358	)
Other derivative instruments:
Gains on revaluations of client foreign currency instruments, net	Other noninterest income	$	10,882		$	4,215		$	115
(Losses) gains on client foreign exchange forward contracts, net	Other noninterest income	(9,969		)	(5,674		)	694
Net gains (losses) associated with client currency risk		$	913		$	(1,459	)	$	809
Net gains on equity warrant assets	Gains on equity warrant assets, net	$	54,555		$	37,892		$	70,963
Net (losses) gains on other derivatives	Other noninterest income	$	(564	)	$	262		$	(209	)

Offsetting Assets

The following table summarizes our assets subject to enforceable master netting arrangements as of December 31, 2017 and 2016:

(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		Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements						Net Amount
							Financial Instruments			Cash Collateral Received
December 31, 2017:
Derivative Assets:
Interest rate swaps	$	—	$	—	$	—	$	—		$	—		$	—
Foreign exchange forwards	95,449		—		95,449		(14,456		)	(3,730		)	77,263
Foreign currency options	1,187		—		1,187		(557		)	—			630
Client interest rate derivatives	11,753		—		11,753		(11,741		)	—			12
Total derivative assets:	108,389		—		108,389		(26,754		)	(3,730		)	77,905
Reverse repurchase, securities borrowing, and similar arrangements	247,876		—		247,876		(247,876		)	—			—
Total	$	356,265	$	—	$	356,265	$	(274,630	)	$	(3,730	)	$	77,905
December 31, 2016:
Derivative Assets:
Interest rate swaps	$	810	$	—	$	810	$	(721	)	$	(89	)	$	—
Foreign exchange forwards	57,644		—		57,644		(22,738		)	(12,579		)	22,327
Foreign currency options	10,383		—		10,383		(8,806		)	—			1,577
Client interest rate derivatives	10,110		—		10,110		(10,091		)	—			19
Total derivative assets:	78,947		—		78,947		(42,356		)	(12,668		)	23,923
Reverse repurchase, securities borrowing, and similar arrangements	64,028		—		64,028		(64,028		)	—			—
Total	$	142,975	$	—	$	142,975	$	(106,384	)	$	(12,668	)	$	23,923

Offsetting Liabilities

The following table summarizes our liabilities subject to enforceable master netting arrangements as of December 31, 2017 and 2016:

(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		Gross Amounts Not Offset in the Statement of Financial Position But Subject to Master Netting Arrangements					Net Amount
							Financial Instruments			Cash Collateral Pledged
December 31, 2017:
Derivative Liabilities:
Foreign exchange forwards	$	95,454	$	—	$	95,454	$	(80,107	)	$	—	$	15,347
Foreign currency options	1,187		—		1,187		(631		)	—		556
Client interest rate derivatives	11,940		—		11,940		(11,924		)	—		16
Total derivative liabilities:	108,581		—		108,581		(92,662		)	—		15,919
Repurchase, securities lending, and similar arrangements	—		—		—		—			—		—
Total	$	108,581	$	—	$	108,581	$	(92,662	)	$	—	$	15,919
December 31, 2016:
Derivative Liabilities:
Foreign exchange forwards	$	44,285	$	—	$	44,285	$	(17,964	)	$	—	$	26,321
Foreign currency options	10,383		—		10,383		(1,585		)	—		8,798
Client interest rate derivatives	9,770		—		9,770		(9,770		)	—		—
Total derivative liabilities:	64,438		—		64,438		(29,319		)	—		35,119
Repurchase, securities lending, and similar arrangements	—		—		—		—			—		—
Total	$	64,438	$	—	$	64,438	$	(29,319	)	$	—	$	35,119