Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2016 and December 31, 2015 were as follows:

		June 30, 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	$	1,918		$	—	$	1,918		$	45,964	$	2,768		$	—	$	2,768
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	41,845		1,546			1,230		316			49,287		809			—		809
Foreign exchange forwards	Other liabilities	111,614		(1,028		)	—		(1,028		)	6,586		(669		)	—		(669		)
Net exposure				518			1,230		(712		)			140			—		140
Other derivative instruments:
Equity warrant assets	Other assets	208,551		129,800			—		129,800			210,102		137,105			—		137,105
Other derivatives:
Client foreign exchange forwards	Other assets	1,468,046		49,685			1,989		47,696			935,514		29,722			1,900		27,822
Client foreign exchange forwards	Other liabilities	1,151,920		(42,898		)	—		(42,898		)	841,182		(24,978		)	—		(24,978		)
Client foreign currency options	Other assets	102,017		1,614			—		1,614			46,625		706			—		706
Client foreign currency options	Other liabilities	102,017		(1,614		)	—		(1,614		)	46,625		(706		)	—		(706		)
Client interest rate derivatives	Other assets	349,123		8,554			—		8,554			422,741		3,973			—		3,973
Client interest rate derivatives	Other liabilities	389,079		(9,655		)	—		(9,655		)	422,741		(4,384		)	—		(4,384		)
Net exposure				5,686			1,989		3,697					4,333			1,900		2,433
Net				$	137,922		$	3,219	$	134,703				$	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 June 30, 2016 remain at investment grade or higher and there were no material changes in their credit ratings during the three and six months endedJune 30, 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 and six months endedJune 30, 2016 and 2015 is as follows:

		Three months ended June 30,						Six months ended June 30,
(Dollars in thousands)	Statement of income location	2016			2015			2016			2015
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	590		$	634		$	1,199		$	1,272
Changes in fair value of interest rate swaps	Gains on derivative instruments, net	(13		)	(11		)	(30		)	(14		)
Net gains associated with interest rate risk derivatives		$	577		$	623		$	1,169		$	1,258
Derivatives not designated as hedging instruments:
Currency exchange risks:
(Losses) gains on revaluations of internal foreign currency instruments, net	Other noninterest income	$	(5,307	)	$	8,306		$	(2,816	)	$	(11,853	)
Gains (losses) on internal foreign exchange forward contracts, net	Gains on derivative instruments, net	3,923			(8,174		)	1,715			11,844
Net (losses) gains associated with internal currency risk		$	(1,384	)	$	132		$	(1,101	)	$	(9	)
Other derivative instruments:
(Losses) gains on revaluations of client foreign currency instruments, net	Other noninterest income	$	(133	)	$	(802	)	$	3,521		$	(178	)
Gains (losses) on client foreign exchange forward contracts, net	Gains on derivative instruments, net	68			787			(5,586		)	280
Net (losses) gains associated with client currency risk		$	(65	)	$	(15	)	$	(2,065	)	$	102
Net gains on equity warrant assets	Gains on derivative instruments, net	$	5,089		$	23,616		$	11,694		$	43,894
Net (losses) gains on other derivatives	Gains on derivative instruments, net	$	(269	)	$	99		$	(690	)	$	42

Offsetting Assets

The following table summarizes our assets subject to enforceable master netting arrangements as of June 30, 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
June 30, 2016
Derivative Assets:
Interest rate swaps	$	1,918	$	—		$	1,918	$	(1,918	)	$	—		$	—
Foreign exchange forwards	51,231		—			51,231		(22,301		)	(3,219		)	25,711
Foreign currency options	1,614		—			1,614		(786		)	—			828
Client interest rate derivatives	8,554		—			8,554		(8,530		)	—			24
Total derivative assets:	63,317		—			63,317		(33,535		)	(3,219		)	26,563
Reverse repurchase, securities borrowing, and similar arrangements	316,059		—			316,059		(316,059		)	—			—
Total	$	379,376	$	—		$	379,376	$	(349,594	)	$	(3,219	)	$	26,563
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 June 30, 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
June 30, 2016
Derivative Liabilities:
Foreign exchange forwards	$	43,926	$	—		$	43,926	$	(25,658	)	$	—	$	18,268
Foreign currency options	1,614		—			1,614		(1,307		)	—		307
Client interest rate derivatives	9,655		—			9,655		(9,655		)	—		—
Total derivative liabilities:	55,195		—			55,195		(36,620		)	—		18,575
Repurchase, securities lending, and similar arrangements	—		—			—		—			—		—
Total	$	55,195	$	—		$	55,195	$	(36,620	)	$	—	$	18,575
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