Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2011

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, 2011 and 2010, were as follows:

		December 31, 2011										December 31, 2010
(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	$	187,393	$	11,441		$	—	$	11,441		$	500,000	$	52,017		$	37,245	$	14,772
Derivatives not designated as hedging instruments:
Currency exchange risks:
Foreign exchange forwards	Other assets		68,518		514					514			33,046		459			—		459
Foreign exchange forwards	Other liabilities		6,822		(199	)		—		(199	)		26,764		(280	)		—		(280	)
Net exposure					315			—		315					179			—		179
Other derivative instruments:
Equity warrant assets	Other assets		144,586		66,953			—		66,953			126,062		47,565			—		47,565
Other derivatives:
Foreign exchange forwards	Other assets		387,714		17,541			—		17,541			291,243		9,408			—		9,408
Foreign exchange forwards	Other liabilities		366,835		(16,346	)		—		(16,346	)		267,218		(8,505	)		—		(8,505	)
Foreign currency options	Other assets		75,600		271			—		271			118,133		1,482			—		1,482
Foreign currency options	Other liabilities		75,600		(271	)		—		(271	)		118,133		(1,482	)		—		(1,482	)
Loan conversion options	Other assets		14,063		923			—		923			10,175		4,291					4,291
Client interest rate derivatives	Other assets		39,713		50			—		50			—		—			—		—
Client interest rate derivatives	Other liabilities		39,713		(52	)		—		(52	)		—		—			—		—
Net exposure					2,116			—		2,116					5,194			—		5,194
Net				$	80,825		$	—	$	80,825				$	104,955		$	37,245	$	67,710

(1) Cash collateral received from counterparties for our interest rate swap agreements 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, 2011 remain at investment grade or higher and there were no material changes in their credit ratings for the year ended December 31, 2011.

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 2011, 2010 and 2009 is as follows:

(Dollars in thousands)	Statement of Income Location	Year ended December 31,
		2011			2010			2009
Derivatives designated as hedging instruments:
Interest rate risks:
Net cash benefit associated with interest rate swaps	Interest expense—borrowings	$	14,486		$	24,682		$	20,967
Changes in fair value of interest rate swap	Net gains (losses) on derivative instruments		(470	)		—			(170	)
Net gains associated with interest rate risk derivatives		$	14,016		$	24,682		$	20,797
Derivatives not designated as hedging instruments:
Currency exchange risks:
(Losses) gains on revaluation of foreign currency loans, net	Other noninterest income	$	(1,821	)	$	(427	)	$	1,945
Gains (losses) on internal foreign exchange forward contracts, net	Net gains (losses) on derivative instruments		1,973			710			(2,258	)
Net gains (losses) associated with currency risk		$	152		$	283		$	(313	)
Other derivative instruments:
Gains (losses) on equity warrant assets	Net gains (losses) on derivative instruments	$	37,439		$	6,556		$	(55	)
Gains on client foreign exchange forward contracts, net	Net gains (losses) on derivative instruments	$	2,259		$	1,914		$	1,730
Net (losses) gains on other derivatives (1)	Net gains (losses) on derivative instruments	$	(2,520	)	$	342		$	—

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