Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2016 and 2015 were as follows:

		December 31, 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	$	810		$	89	$	721		$	45,964	$	2,768		$	—	$	2,768
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets	219,950		3,057			—		3,057			49,287		809			—		809
Foreign exchange forwards	Other liabilities	54,338		(968		)	—		(968		)	6,586		(669		)	—		(669		)
Net exposure				2,089			—		2,089					140			—		140
Other derivative instruments:
Equity warrant assets	Other assets	211,434		131,123			—		131,123			210,102		137,105			—		137,105
Other derivatives:
Client foreign exchange forwards	Other assets	1,251,308		54,587			12,579		42,008			935,514		29,722			1,900		27,822
Client foreign exchange forwards	Other liabilities	1,068,991		(43,317		)	—		(43,317		)	841,182		(24,978		)	—		(24,978		)
Client foreign currency options	Other assets	775,000		10,383			—		10,383			46,625		706			—		706
Client foreign currency options	Other liabilities	775,000		(10,383		)	—		(10,383		)	46,625		(706		)	—		(706		)
Client interest rate derivatives	Other assets	583,511		10,110			—		10,110			422,741		3,973			—		3,973
Client interest rate derivatives	Other liabilities	627,639		(9,770		)	—		(9,770		)	422,741		(4,384		)	—		(4,384		)
Net exposure				11,610			12,579		(969		)			4,333			1,900		2,433
Net				$	145,632		$	12,668	$	132,964				$	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 December 31, 2016 remain at investment grade or higher and there were no material changes in their credit ratings for the year ended December 31, 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 2016, 2015 and 2014 is as follows:

		Year ended December 31,
(Dollars in thousands)	Statement of income location	2016			2015			2014
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	2,341		$	2,526		$	2,553
Changes in fair value of interest rate swaps	Gains on derivative instruments, net	(35		)	(20		)	(50		)
Net gains associated with interest rate risk derivatives		$	2,306		$	2,506		$	2,503
Derivatives not designated as hedging instruments:
Currency exchange risks:
Losses on revaluations of internal foreign currency instruments, net	Other noninterest income	$	(16,676	)	$	(12,735	)	$	(21,636	)
Gains on internal foreign exchange forward contracts, net	Gains on derivative instruments, net	16,136			12,377			21,598
Net losses associated with internal currency risk		$	(540	)	$	(358	)	$	(38	)
Other derivative instruments:
Gains (losses) on revaluations of client foreign currency instruments, net	Other noninterest income	$	4,215		$	115		$	(4,078	)
(Losses) gains on client foreign exchange forward contracts, net	Gains on derivative instruments, net	(5,674		)	694			5,081
Net (losses) gains associated with client currency risk		$	(1,459	)	$	809		$	1,003
Net gains on equity warrant assets	Gains on derivative instruments, net	$	37,892		$	70,963		$	71,012
Net gains (losses) on other derivatives (1)	Gains on derivative instruments, net	$	262		$	(209	)	$	(796	)

(1) Derivative activity in 2014 primarily represents the change in fair value of loan conversion options. We did not have any loan conversion options in 2016 or 2015.

Offsetting Assets

The following table summarizes our assets subject to enforceable master netting arrangements as of December 31, 2016 and 2015:

(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, 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
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 December 31, 2016 and 2015:

(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, 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
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