Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

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, 2015 and 2014 were as follows:

		December 31, 2015										December 31, 2014
(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	$	2,768		$	—	$	2,768		$	45,964	$	4,609		$	2,970	$	1,639
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	49,287		809			—		809			200,957		5,050			2,441		2,609
Foreign exchange forwards	Other liabilities	6,586		(669		)	—		(669		)	6,226		(489		)	—		(489		)
Net exposure				140			—		140					4,561			2,441		2,120
Other derivative instruments:
Equity warrant assets	Other assets	210,102		137,105			—		137,105			197,878		116,604			—		116,604
Other derivatives:
Client foreign exchange forwards	Other assets	935,514		29,722			1,900		27,822			801,487		28,954			2,370		26,584
Client foreign exchange forwards	Other liabilities	841,182		(24,978		)	—		(24,978		)	774,355		(27,647		)	—		(27,647		)
Client foreign currency options	Other assets	46,625		706			—		706			34,926		227			—		227
Client foreign currency options	Other liabilities	46,625		(706		)	—		(706		)	34,926		(227		)	—		(227		)
Client interest rate derivatives	Other assets	422,741		3,973			—		3,973			387,410		2,546			—		2,546
Client interest rate derivatives	Other liabilities	422,741		(4,384		)	—		(4,384		)	387,410		(2,748		)	—		(2,748		)
Net exposure				4,333			1,900		2,433					1,105			2,370		(1,265		)
Net				$	144,346		$	1,900	$	142,446				$	126,879		$	7,781	$	119,098

(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, 2015 remain at investment grade or higher and there were no material changes in their credit ratings for the year ended December 31, 2015

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 2015, 2014 and 2013 is as follows:

		Year ended December 31,
(Dollars in thousands)	Statement of income location	2015			2014			2013
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	2,526		$	2,553		$	2,536
Changes in fair value of interest rate swaps	Net gains on derivative instruments	(20		)	(50		)	14
Net gains associated with interest rate risk derivatives		$	2,506		$	2,503		$	2,550
Derivatives not designated as hedging instruments:
Currency exchange risks:
(Losses) gains on revaluations of foreign currency instruments	Other noninterest income	$	(12,735	)	$	(21,636	)	$	3,016
Gains (losses) on internal foreign exchange forward contracts, net	Net gains on derivative instruments	12,377			21,598			(4,213		)
Net (losses) associated with currency risk		$	(358	)	$	(38	)	$	(1,197	)
Other derivative instruments:
Net gains on equity warrant assets	Net gains on derivative instruments	$	70,963		$	71,012		$	46,101
Gains (losses) on client foreign exchange forward contracts, net	Net gains on derivative instruments	$	694		$	5,081		$	(452	)
Net (losses) gains on other derivatives (1)	Net gains on derivative instruments	$	(209	)	$	(796	)	$	734

(1) Derivative activity in 2014 and 2013 primarily represents the change in fair value of loan conversion options. We did not have any loan conversion options in 2015.

Offsetting Assets

The following table summarizes our assets subject to enforceable master netting arrangements as of December 31, 2015 and 2014:

								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, 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
December 31, 2014
Derivative Assets:
Interest rate swaps	$	4,609	$	—		$	4,609	$	(1,639	)	$	(2,970	)	$	—
Foreign exchange forwards	34,004		—			34,004		(17,843		)	(4,811		)	11,350
Foreign currency options	501		(274		)	227		(144		)	—			83
Client interest rate derivatives	2,546		—			2,546		(2,546		)	—			—
Total derivative assets:	41,660		(274		)	41,386		(22,172		)	(7,781		)	11,433
Reverse repurchase, securities borrowing, and similar arrangements	95,611		—			95,611		(95,611		)	—			—
Total	$	137,271	$	(274	)	$	136,997	$	(117,783	)	$	(7,781	)	$	11,433

Offsetting Liabilities

The following table summarizes our liabilities subject to enforceable master netting arrangements as of December 31, 2015 and 2014:

								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, 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
December 31, 2014
Derivative Liabilities:
Foreign exchange forwards	$	28,136	$	—		$	28,136	$	(16,808	)	$	—	$	11,328
Foreign currency options	501		(274		)	227		(83		)	—		144
Client interest rate derivatives	2,748		—			2,748		(2,748		)	—		—
Total derivative liabilities:	31,385		(274		)	31,111		(19,639		)	—		11,472
Repurchase, securities lending, and similar arrangements	—		—			—		—			—		—
Total	$	31,385	$	(274	)	$	31,111	$	(19,639	)	$	—	$	11,472