Derivatives (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Notional And Gross Fair Values Of Derivatives

The following table presents the notional amounts and gross fair values of the Company’s derivatives, as well as the balance sheet netting adjustments on an aggregate basis as of June 30, 2022 and December 31, 2021. The derivative assets and liabilities are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after applicable variation margin payments with central clearing organizations have been applied as settlement. Total derivative assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of June 30, 2022 and December 31, 2021. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet.

($ in thousands)	June 30, 2022							December 31, 2021
	Notional Amount			Fair Value				Notional Amount			Fair Value
				Derivative Assets		Derivative  Liabilities					Derivative Assets		Derivative  Liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate contracts	$	1,525,000		$	586	$	96	$	275,000		$	—	$	57
Net investment hedges:
Foreign exchange contracts	84,832			2,765		—		86,531			—		225
Total derivatives designated as hedging instruments	$	1,609,832		$	3,351	$	96	$	361,531		$	—	$	282
Derivatives not designated as hedging instruments:
Interest rate contracts	$	17,570,112		$	260,740	$	359,578	$	17,575,420		$	240,222	$	179,905
Foreign exchange contracts	2,654,194			39,559		29,144		1,874,681			21,033		15,276
Credit contracts	121,784			—		76		72,560			—		141
Equity contracts	—		(1)	359		—		—		(1)	220		—
Commodity contracts	—		(2)	404,275		373,675		—		(2)	222,709		194,567
Total derivatives not designated as hedging instruments	$	20,346,090		$	704,933	$	762,473	$	19,522,661		$	484,184	$	389,889
Gross derivative assets/liabilities				$	708,284	$	762,569				$	484,184	$	390,171
Less: Master netting agreements				(126,414)		(126,414)					(58,679)		(58,679)
Less: Cash collateral received/paid				(125,304)		—					(42,274)		(174,048)
Net derivative assets/liabilities				$	456,566	$	636,155				$	383,231	$	157,444

(1)The Company held equity contracts in one public company and 13 private companies as of June 30, 2022. In comparison, the Company held equity contracts in one public company and 12 private companies as of December 31, 2021.

(2)The notional amount of the Company’s commodity contracts entered with its customers totaled 8,211 thousand barrels of crude oil and 83,113 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2022. In comparison, the notional amount of the Company’s commodity contracts entered with its customers totaled 7,519 thousand barrels of crude oil and 83,274 thousand MMBTUs of natural gas as of December 31, 2021. The Company simultaneously entered into the offsetting commodity contracts with mirrored terms with third-party financial institutions.

The following tables present the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of June 30, 2022 and December 31, 2021:

($ in thousands)	June 30, 2022
	Customer Counterparty						($ in thousands)	Financial Counterparty
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Assets		Liabilities					Assets		Liabilities
Purchased options	$	—	$	—	$	—	Purchased options	$	1,513,842	$	20,933	$	—
Written options	1,481,552		—		19,760		Written options	32,290		—		1,076
Sold collars and corridors	187,168		9		5,040		Collars and corridors	187,168		5,071		9
Swaps	7,069,901		8,482		326,853		Swaps	7,098,191		226,245		6,840
Total	$	8,738,621	$	8,491	$	351,653	Total	$	8,831,491	$	252,249	$	7,925

($ in thousands)	December 31, 2021
	Customer Counterparty						($ in thousands)	Financial Counterparty
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Assets		Liabilities					Assets		Liabilities
Written options	$	1,118,074	$	—	$	2,148	Purchased options	$	1,118,074	$	2,159	$	—
Sold collars and corridors	194,181		1,272		642		Collars and corridors	194,181		646		1,275
Swaps	7,460,836		211,727		39,650		Swaps	7,490,074		24,418		136,190
Total	$	8,773,091	$	212,999	$	42,440	Total	$	8,802,329	$	27,223	$	137,465

The following tables present the notional amounts and the gross fair values of foreign exchange derivative contracts outstanding as of June 30, 2022 and December 31, 2021:

($ in thousands)	June 30, 2022
	Customer Counterparty						($ in thousands)	Financial Counterparty
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Assets		Liabilities					Assets		Liabilities
Forwards and spots	$	954,101	$	13,188	$	19,119	Forwards and spots	$	310,784	$	10,139	$	2,014
Swaps	175,373		648		864		Swaps	1,163,410		15,061		6,624
Written options	20,000		170		312		Purchased options	20,000		312		170
Collars	5,263		—		41		Collars	5,263		41		—
Total	$	1,154,737	$	14,006	$	20,336	Total	$	1,499,457	$	25,553	$	8,808

($ in thousands)	December 31, 2021
	Customer Counterparty						($ in thousands)	Financial Counterparty
	Notional Amount		Fair Value					Notional Amount		Fair Value
			Assets		Liabilities					Assets		Liabilities
Forwards and spots	$	900,290	$	13,688	$	9,446	Forwards and spots	$	267,689	$	1,564	$	2,695
Swaps	66,474		1,034		17		Swaps	599,654		4,745		3,116
Written options	20,287		1		—		Purchased options	20,287		1		2
Total	$	987,051	$	14,723	$	9,463	Total	$	887,630	$	6,310	$	5,813

The following table presents the notional amounts and the gross fair values of RPAs sold outstanding as of June 30, 2022 and December 31, 2021:

($ in thousands)	June 30, 2022						December 31, 2021
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Assets		Liabilities				Assets		Liabilities
RPAs — protection sold	$	121,784	$	—	$	76	$	72,560	$	—	$	141

The following tables present the notional amounts and fair values of the commodity derivative positions outstanding as of June 30, 2022 and December 31, 2021:

($ and units in thousands)	June 30, 2022
	Customer Counterparty						($ and units in thousands)	Financial Counterparty
	Notional Unit		Fair Value					Notional Unit		Fair Value
			Assets		Liabilities					Assets		Liabilities
Crude oil:							Crude oil:
Written options	1,205	Barrels	$	1,330	$	—	Purchased options	1,205	Barrels	$	—	$	1,154
Collars	3,218	Barrels	70,802		817		Collars	3,223	Barrels	288		65,988
Swaps	3,788	Barrels	105,189		2,658		Swaps	5,935	Barrels	43,075		133,723
Total	8,211		$	177,321	$	3,475	Total	10,363		$	43,363	$	200,865
Natural gas:							Natural gas:
Collars	28,206	MMBTUs	29,062		3,815		Collars	30,122	MMBTUs	2,999		28,390
Swaps	54,907	MMBTUs	98,480		6,478		Swaps	91,869	MMBTUs	53,050		130,652
Total	83,113		$	127,542	$	10,293	Total	121,991		$	56,049	$	159,042
Total			$	304,863	$	13,768	Total			$	99,412	$	359,907

($ and units in thousands)	December 31, 2021
	Customer Counterparty						($ and units in thousands)	Financial Counterparty
	Notional Unit		Fair Value					Notional Unit		Fair Value
			Assets		Liabilities					Assets		Liabilities
Crude oil:							Crude oil:
Written options	—	Barrels	$	87	$	—	Purchased options	—	Barrels	$	—	$	81
Collars	2,837	Barrels	33,826		106		Collars	2,888	Barrels	—		33,399
Swaps	4,682	Barrels	71,242		60		Swaps	7,517	Barrels	27,524		82,723
Total	7,519		$	105,155	$	166	Total	10,405		$	27,524	$	116,203
Natural gas:							Natural gas:
Collars	24,315	MMBTUs	$	10,903	$	458	Collars	25,929	MMBTUs	$	1,136	$	10,936
Swaps	58,959	MMBTUs	49,188		3,775		Swaps	109,567	MMBTUs	28,803		63,029
Total	83,274		$	60,091	$	4,233	Total	135,496		$	29,939	$	73,965
Total			$	165,246	$	4,399	Total			$	57,463	$	190,168

Schedule Of Pre-Tax Changes In AOCI From Cash Flows Hedges

The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and six months ended June 30, 2022 and 2021. The after-tax impact of cash flow hedges on AOCI is discussed in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-Q.

($ in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
(Losses) gains recognized in AOCI:
Interest rate contracts	$	(7,837)	$	(106)	$	(40,446)	$	320
Gains (losses) reclassified from AOCI into earnings:
Interest expense	$	308	$	(201)	$	135	$	(378)
Interest income	812		—		3,085		—
Total	$	1,120	$	(201)	$	3,220	$	(378)

Tabular Disclosure Of Gains and Losses On Derivative Instruments Qualified And Designated In Net Investment Hedges

The following table presents the after-tax gains (losses) recognized in AOCI on net investment hedges for the three and six months ended June 30, 2022 and 2021:

($ in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Gains (losses) recognized in AOCI	$	2,319	$	(1,643)	$	1,200	$	(1,543)

Schedule Of The Net (Losses) Gains Recognized On The Company’s Consolidated Statement of Income Related To Derivatives Not Designated as Hedging Instruments

The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three and six months ended June 30, 2022 and 2021:

($ in thousands)	Classification on Consolidated Statement of Income	Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021
Derivatives not designated as hedging instruments:
Interest rate contracts	Interest rate contracts and other derivative income (loss)	$	5,984	$	(5,338)	$	13,569	$	8,563
Foreign exchange contracts	Foreign exchange income	(4,557)		11,972		2,765		22,215
Credit contracts	Interest rate contracts and other derivative income (loss)	(9)		150		65		195
Equity contracts	Lending fees	93		74		187		385
Commodity contracts	Interest rate contracts and other derivative income (loss)	344		(188)		295		(19)
Net gains		$	1,855	$	6,670	$	16,881	$	31,339

Schedule Of Gross Derivative Fair Values, The Balance Sheet Netting Adjustments And The Resulting Net Fair Values Recorded On The Consolidated Balance Sheet, As Well As The Cash and Non-Cash Collateral Associated With Master Netting Arrangements

The following tables present the gross derivative fair values, the balance sheet netting adjustments and the resulting net fair values recorded on the consolidated balance sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements with central counterparties, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability, after the application of netting; therefore, instances of overcollateralization are not shown:

($ in thousands)	As of June 30, 2022
	Gross Amounts Recognized (1)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)
Derivative assets	$	708,284	$	(126,414)	$	(125,304)	$	456,566	$	—	$	456,566
	Gross Amounts Recognized (2)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)
Derivative liabilities	$	762,569	$	(126,414)	$	—	$	636,155	$	(118,694)	$	517,461

($ in thousands)	As of December 31, 2021
	Gross Amounts Recognized (1)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)
Derivative assets	$	484,184	$	(58,679)	$	(42,274)	$	383,231	$	—	$	383,231
	Gross Amounts Recognized (2)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)
Derivative liabilities	$	390,171	$	(58,679)	$	(174,048)	$	157,444	$	(106,598)	$	50,846

(1)Includes $1.1 million and $587 thousand of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2022 and December 31, 2021, respectively.

(2)Includes $517 thousand and $666 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2022 and December 31, 2021, respectively.

(3)Gross cash collateral received under master netting arrangements or similar agreements were $141.9 million and $47.0 million as of June 30, 2022 and December 31, 2021, respectively. Of the gross cash collateral received, $125.3 million and $42.3 million were used to offset against derivative assets as of June 30, 2022 and December 31, 2021, respectively.

(4)No cash collateral was pledged under master netting arrangements or similar agreements as of June 30, 2022. In comparison, cash collateral pledged under master netting arrangements or similar agreements was $176.5 million as of December 31, 2021, of which $174.0 million were used to offset against derivative liabilities as of December 31, 2021.

(5)Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of noncash collateral on the consolidated balance sheet but requires the disclosure of such amounts.