Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2012

Text Block [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 September 30, 2012 and December 31, 2011 were as follows:

		September 30, 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	$	9,508		$	6,170	$	3,338		$	187,393	$	11,441		$	—	$	11,441
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	23,441		548			—		548			68,518		514			—		514
Foreign exchange forwards	Other liabilities	38,593		(1,373		)	—		(1,373		)	6,822		(199		)	—		(199		)
Net exposure				(825		)	—		(825		)			315			—		315
Other derivative instruments:
Equity warrant assets	Other assets	162,471		70,478			—		70,478			144,586		66,953			—		66,953
Other derivatives:
Foreign exchange forwards	Other assets	419,005		11,581			—		11,581			387,714		17,541			—		17,541
Foreign exchange forwards	Other liabilities	393,426		(10,116		)	—		(10,116		)	366,835		(16,346		)	—		(16,346		)
Foreign currency options	Other assets	127,379		987			—		987			75,600		271			—		271
Foreign currency options	Other liabilities	127,379		(987		)	—		(987		)	75,600		(271		)	—		(271		)
Loan conversion options	Other assets	9,778		1,240			—		1,240			14,063		923			—		923
Client interest rate derivatives	Other assets	62,120		236			—		236			39,713		50			—		50
Client interest rate derivatives	Other liabilities	62,120		(247		)	—		(247		)	39,713		(52		)	—		(52		)
Net exposure				2,694			—		2,694					2,116			—		2,116
Net				$	81,855		$	6,170	$	75,685				$	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.

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 and nine months ended September 30, 2012 and 2011 is as follows:

		Three months ended September 30,						Nine months ended September 30,
(Dollars in thousands)	Statement of income location	2012			2011			2012			2011
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	612		$	2,337		$	4,537		$	12,205
Changes in fair value of interest rate swaps	Net gains on derivative instruments	74			(400		)	571			(467		)
Net gains associated with interest rate risk derivatives		$	686		$	1,937		$	5,108		$	11,738
Derivatives not designated as hedging instruments:
Currency exchange risks:
Gains (losses) on revaluations of foreign currency instruments	Other noninterest income	$	1,578		$	(3,931	)	$	96		$	(733	)
Gains on internal foreign exchange forward contracts, net	Net gains on derivative instruments	220			3,591			1,162			540
Net gains (losses) associated with currency risk		$	1,798		$	(340	)	$	1,258		$	(193	)
Other derivative instruments:
Gains on equity warrant assets	Net gains on derivative instruments	$	547		$	5,518		$	12,358		$	23,375
Gains on client foreign exchange forward contracts, net	Net gains on derivative instruments	$	607		$	658		$	3,002		$	1,448
Net (losses) gains on other derivatives (1)	Net gains on derivative instruments	$	(337	)	$	584		$	(1,293	)	$	(743	)

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