Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2013

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, 2013 and 2012 were as follows:

		December 31, 2013										December 31, 2012
(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	$	6,492		$	5,080	$	1,412		$	45,964	$	9,005		$	6,110	$	2,895
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	140,760		1,423			—		1,423			51,010		488			—		488
Foreign exchange forwards	Other liabilities	62,649		(634		)	—		(634		)	102,956		(1,728		)	—		(1,728		)
Net exposure				789			—		789					(1,240		)	—		(1,240		)
Other derivative instruments:
Equity warrant assets	Other assets	179,934		103,513			—		103,513			164,332		74,272			—		74,272
Other derivatives:
Client foreign exchange forwards	Other assets	424,983		13,673			—		13,673			385,470		11,864			—		11,864
Client foreign exchange forwards	Other liabilities	367,079		(11,549		)	—		(11,549		)	356,026		(9,930		)	—		(9,930		)
Client foreign currency options	Other assets	91,854		434			—		434			132,237		1,189			—		1,189
Client foreign currency options	Other liabilities	91,854		(434		)	—		(434		)	132,237		(1,189		)	—		(1,189		)
Loan conversion options	Other assets	3,455		314			—		314			9,782		890			—		890
Client interest rate derivatives	Other assets	216,773		1,265			—		1,265			144,950		558			—		558
Client interest rate derivatives	Other liabilities	216,773		(1,396		)	—		(1,396		)	144,950		(590		)	—		(590		)
Net exposure				2,307			—		2,307					2,792			—		2,792
Net				$	113,101		$	5,080	$	108,021				$	84,829		$	6,110	$	78,719

(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, 2013 remain at investment grade or higher and there were no material changes in their credit ratings for the year ended December 31, 2013

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 2013, 2012 and 2011 is as follows:

		Year ended December 31,
(Dollars in thousands)	Statement of income location	2013			2012			2011
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	2,536		$	5,154		$	14,486
Changes in fair value of interest rate swaps	Net gains on derivative instruments	14			603			(470		)
Net gains associated with interest rate risk derivatives		$	2,550		$	5,757		$	14,016
Derivatives not designated as hedging instruments:
Currency exchange risks:
Gains (losses) on revaluations of foreign currency instruments	Other noninterest income	$	3,016		$	1,677		$	(2,096	)
(Losses) gains on internal foreign exchange forward contracts, net	Net gains on derivative instruments	(4,213		)	(103		)	1,973
Net (losses) gains associated with currency risk		$	(1,197	)	$	1,574		$	(123	)
Other derivative instruments:
Net gains on equity warrant assets	Net gains on derivative instruments	$	46,101		$	19,385		$	37,439
(Losses) gains on client foreign exchange forward contracts, net	Net gains on derivative instruments	$	(452	)	$	460		$	376
Net gains (losses) on other derivatives (1)	Net gains on derivative instruments	$	734		$	(1,666	)	$	(2,520	)

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

Offsetting Assets

The following table summarizes our assets subject to enforceable master netting arrangements as of December 31, 2013 and 2012:

								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
December 31, 2013
Derivative Assets:
Interest rate swaps	$	6,492	$	—		$	6,492	$	(1,412	)	$	(5,080	)	$	—
Foreign exchange forwards	15,096		—			15,096		(6,735		)	—			8,361
Foreign currency options	504		(70		)	434		(155		)	—			279
Client interest rate derivatives	1,265		—			1,265		(256		)	—			1,009
Total derivative assets:	23,357		(70		)	23,287		(8,558		)	(5,080		)	9,649
Reverse repurchase, securities borrowing, and similar arrangements	172,989		—			172,989		(172,989		)	—			—
Total	$	196,346	$	(70	)	$	196,276	$	(181,547	)	$	(5,080	)	$	9,649
December 31, 2012
Derivative Assets:
Interest rate swaps	$	9,005	$	—		$	9,005	$	(2,895	)	$	(6,110	)	$	—
Foreign exchange forwards	12,352		—			12,352		(7,363		)	—			4,989
Foreign currency options	1,411		(222		)	1,189		(556		)	—			633
Client interest rate derivatives	558		—			558		(24		)	—			534
Total derivative assets:	23,326		(222		)	23,104		(10,838		)	(6,110		)	6,156
Reverse repurchase, securities borrowing, and similar arrangements	133,357		—			133,357		(133,357		)	—			—
Total	$	156,683	$	(222	)	$	156,461	$	(144,195	)	$	(6,110	)	$	6,156

Offsetting Liabilities

The following table summarizes our liabilities subject to enforceable master netting arrangements as of December 31, 2013 and 2012:

								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
December 31, 2013
Derivative Liabilities:
Foreign exchange forwards	$	12,183	$	—		$	12,183	$	(8,282	)	$	—	$	3,901
Foreign currency options	504		(70		)	434		(279		)	—		155
Client interest rate derivatives	1,396		—			1,396		(1,087		)	—		309
Total derivative liabilities:	14,083		(70		)	14,013		(9,648		)	—		4,365
Repurchase, securities lending, and similar arrangements	—		—			—		—			—		—
Total	$	14,083	$	(70	)	$	14,013	$	(9,648	)	$	—	$	4,365
December 31, 2012
Derivative Liabilities:
Foreign exchange forwards	$	11,658	$	—		$	11,658	$	(5,720	)	$	—	$	5,938
Foreign currency options	1,411		(222		)	1,189		(633		)	—		556
Client interest rate derivatives	590		—			590		(567		)	—		23
Total derivative assets:	13,659		(222		)	13,437		(6,920		)	—		6,517
Repurchase, securities lending, and similar arrangements	—		—			—		—			—		—
Total	$	13,659	$	(222	)	$	13,437	$	(6,920	)	$	—	$	6,517