Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

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 and fair value of our derivative financial instruments at March 31, 2018 and December 31, 2017 were as follows:

	March 31, 2018						December 31, 2017
	Notional or Contractual Amount		Fair Value				Notional or Contractual Amount		Fair Value
(Dollars in thousands)			Derivative Assets (1)		Derivative Liabilities (1)				Derivative Assets (1)		Derivative Liabilities (1)
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	$	490,255	$	6,713	$	—	$	50,889	$	414	$	—
Foreign exchange forwards	393,082		—		10,244		425,055		—		5,201
Other derivative instruments:
Equity warrant assets	222,373		135,669		—		211,253		123,763		—
Client foreign exchange forwards	2,159,827		99,905		—		2,203,643		95,035		—
Client foreign exchange forwards	2,077,802		—		92,195		2,092,207		—		90,253
Client foreign currency options	146,954		1,886		—		102,678		1,187		—
Client foreign currency options	146,954		—		1,886		102,678		—		1,187
Client interest rate derivatives (2)	287,489		5,070		—		726,984		11,753		—
Client interest rate derivatives	770,653		—		13,369		782,586		—		11,940
Total Derivatives not designated as hedging instruments			$	249,243	$	117,694			$	232,152	$	108,581

(1) Derivative assets and liabilities are included in "other interest receivables and other assets" and "other liabilities", respectively, on our consolidated balance sheets.

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 months endedMarch 31, 2018 and 2017 is as follows:

		Three months ended March 31,
(Dollars in thousands)	Statement of income location	2018			2017
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	—		$	554
Changes in fair value of interest rate swaps	Other noninterest income	—			(1		)
Net gains associated with interest rate risk derivatives		$	—		$	553
Derivatives not designated as hedging instruments:
Currency exchange risks:
Gains on revaluations of internal foreign currency instruments, net	Other noninterest income	$	2,926		$	4,108
Losses on internal foreign exchange forward contracts, net	Other noninterest income	(3,512		)	(3,245		)
Net (losses) gains associated with internal currency risk		$	(586	)	$	863
Other derivative instruments:
Gains on revaluations of client foreign currency instruments, net	Other noninterest income	$	7,653		$	2,754
Losses on client foreign exchange forward contracts, net	Other noninterest income	(7,114		)	(2,289		)
Net gains associated with client currency risk		$	539		$	465
Net gains on equity warrant assets	Gains on equity warrant assets, net	$	19,191		$	6,690
Net gains (losses) on other derivatives	Other noninterest income	$	431		$	(276	)

Offsetting Assets

The following table summarizes our assets subject to enforceable master netting arrangements as of March 31, 2018 and December 31, 2017:

	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
(Dollars in thousands)							Financial Instruments			Cash Collateral Received (1)
March 31, 2018
Derivative Assets:
Foreign exchange forwards	$	106,618	$	—	$	106,618	$	(17,027	)	$	(5,264	)	$	84,327
Foreign currency options	1,886		—		1,886		(574		)	—			1,312
Client interest rate derivatives	5,070		—		5,070		(3,194		)	(1,876		)	—
Total derivative assets	113,574		—		113,574		(20,795		)	(7,140		)	85,639
Reverse repurchase, securities borrowing, and similar arrangements	375,180		—		375,180		(375,180		)	—			—
Total	$	488,754	$	—	$	488,754	$	(395,975	)	$	(7,140	)	$	85,639
December 31, 2017
Derivative Assets:
Foreign exchange forwards	$	95,449	$	—	$	95,449	$	(14,570	)	$	(3,616	)	$	77,263
Foreign currency options	1,187		—		1,187		(557		)	—			630
Client interest rate derivatives	11,753		—		11,753		(11,627		)	(114		)	12
Total derivative assets	108,389		—		108,389		(26,754		)	(3,730		)	77,905
Reverse repurchase, securities borrowing, and similar arrangements	247,876		—		247,876		(247,876		)	—			—
Total	$	356,265	$	—	$	356,265	$	(274,630	)	$	(3,730	)	$	77,905

Offsetting Liabilities

The following table summarizes our liabilities subject to enforceable master netting arrangements as of March 31, 2018 and December 31, 2017:

	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
(Dollars in thousands)							Financial Instruments			Cash Collateral Pledged (1)
March 31, 2018
Derivative Liabilities:
Foreign exchange forwards	$	102,439	$	—	$	102,439	$	(6,624	)	$	(82,502	)	$	13,313
Foreign currency options	1,886		—		1,886		(962		)	(434		)	490
Client interest rate derivatives	13,369		—		13,369		—			(13,278		)	91
Total derivative liabilities	117,694		—		117,694		(7,586		)	(96,214		)	13,894
Repurchase, securities lending, and similar arrangements	—		—		—		—			—			—
Total	$	117,694	$	—	$	117,694	$	(7,586	)	$	(96,214	)	$	13,894
December 31, 2017
Derivative Liabilities:
Foreign exchange forwards	$	95,454	$	—	$	95,454	$	(10,997	)	$	(69,110	)	$	15,347
Foreign currency options	1,187		—		1,187		(501		)	(130		)	556
Client interest rate derivatives	11,940		—		11,940		—			(11,924		)	16
Total derivative liabilities	108,581		—		108,581		(11,498		)	(81,164		)	15,919
Repurchase, securities lending, and similar arrangements	—		—		—		—			—			—
Total	$	108,581	$	—	$	108,581	$	(11,498	)	$	(81,164	)	$	15,919