Derivatives (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule Of Notional And Gross Fair Values Of Derivatives

The following table presents the notional amounts and fair values of the Company’s derivatives as of June 30, 2023 and December 31, 2022. Certain derivative contracts are cleared though central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in the derivative asset and liability fair values by $24.6 million and $63.5 million, respectively, as of June 30, 2023. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values by $167.2 million and $81.3 million, respectively, as of December 31, 2022. Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. 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.

	June 30, 2023						December 31, 2022
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate contracts	$	5,250,000	$	2,430	$	51,862	$	3,450,000	$	13,455	$	19,687
Net investment hedges:
Foreign exchange contracts	81,480		3,646		—		84,832		5,590		—
Total derivatives designated as hedging instruments	$	5,331,480	$	6,076	$	51,862	$	3,534,832	$	19,045	$	19,687
Derivatives not designated as hedging instruments:
Interest rate contracts	$	17,885,894	$	527,805	$	539,585	$	16,932,414	$	426,828	$	564,829
Commodity contracts (1)	—		139,081		147,920		—		261,613		258,608
Foreign exchange contracts	4,724,615		91,936		72,342		2,982,891		47,519		44,117
Credit contracts (2)	109,370		—		16		140,950		—		23
Equity contracts (3)	—		263		—		—		323		—
Total derivatives not designated as hedging instruments	$	22,719,879	$	759,085	$	759,863	$	20,056,255	$	736,283	$	867,577
Gross derivative assets/liabilities			$	765,161	$	811,725			$	755,328	$	887,264
Less: Master netting agreements			(208,183)		(208,183)				(242,745)		(242,745)
Less: Cash collateral received			(264,245)		—				(372,038)		—
Net derivative assets/liabilities			$	292,733	$	603,542			$	140,545	$	644,519

(1)The notional amount of the Company’s commodity contracts totaled 16,446 thousand barrels of crude oil and 306,161 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2023. In comparison, the notional amount of the Company’s commodity contracts totaled 12,005 thousand barrels of crude oil and 247,704 thousand MMBTUs of natural gas as of December 31, 2022.

(2)The notional amount for credit contracts reflects the Company’s pro-rata share of the derivative instruments in RPAs.

(3)The Company held equity contracts in one public company and 10 private companies as of June 30, 2023. In comparison, the Company held equity contracts in one public company and 13 private companies as of December 31, 2022.

The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives entered into for customer-related positions and with third-party financial institutions, labeled as “other economic hedges”, as of June 30, 2023 and December 31, 2022:

	June 30, 2023						December 31, 2022
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Assets		Liabilities		Notional Amount		Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	6,900,309	$	2,117	$	503,261	$	6,656,491	$	1,438	$	521,719
Written options	1,621,207		—		24,166		1,548,158		—		30,904
Collars and corridors	296,585		12		8,743		215,773		—		8,924
Subtotal	8,818,101		2,129		536,170		8,420,422		1,438		561,547
Foreign exchange contracts:
Forwards and spot	1,410,862		23,596		31,829		993,588		17,009		18,090
Swaps	888,018		17,862		4,767		623,143		6,629		12,178
Other	129,000		5,939		—		121,631		2,070		245
Subtotal	2,427,880		47,397		36,596		1,738,362		25,708		30,513
Total	$	11,245,981	$	49,526	$	572,766	$	10,158,784	$	27,146	$	592,060
Other economic hedges:
Interest rate contracts:
Swaps	$	7,088,622	$	491,972	$	2,707	$	6,683,828	$	384,201	$	2,047
Purchased options	1,651,896		24,927		—		1,580,275		32,233		—
Written options	30,690		—		696		32,117		—		1,235
Collars and corridors	296,585		8,777		12		215,772		8,956		—
Subtotal	9,067,793		525,676		3,415		8,511,992		425,390		3,282
Foreign exchange contracts:
Forwards and spot	24,935		88		155		77,998		3,050		87
Swaps	2,142,800		44,451		29,652		1,044,900		18,516		11,447
Other	129,000		—		5,939		121,631		245		2,070
Subtotal	2,296,735		44,539		35,746		1,244,529		21,811		13,604
Total	$	11,364,528	$	570,215	$	39,161	$	9,756,521	$	447,201	$	16,886

The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions, labeled below as “other economic hedges” are used to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and other economic hedges as of June 30, 2023 and December 31, 2022:

	June 30, 2023						December 31, 2022
			Fair Value						Fair Value
($ and unit in thousands)	Notional Units		Assets		Liabilities		Notional Units		Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	2,717	Barrels	$	9,106	$	14,142	2,465	Barrels	$	39,955	$	6,178
Collars	5,474	Barrels	1,824		7,375		3,011	Barrels	16,038		2,630
Written options	—	Barrels	—		—		—	Barrels	558		—
Subtotal	8,191	Barrels	10,930		21,517		5,476	Barrels	56,551		8,808
Natural gas:
Swaps	115,608	MMBTUs	39,171		59,359		92,590	MMBTUs	112,314		73,208
Collars	36,161	MMBTUs	524		17,545		32,072	MMBTUs	2,217		18,317
Written options	1,559	MMBTUs	—		179		—	MMBTUs	—		—
Subtotal	153,328	MMBTUs	39,695		77,083		124,662	MMBTUs	114,531		91,525
Total			$	50,625	$	98,600			$	171,082	$	100,333
Other economic hedges:
Commodity contracts:
Crude oil:
Swaps	2,781	Barrels	$	14,787	$	8,770	2,587	Barrels	$	6,935	$	36,060
Collars	5,474	Barrels	6,580		1,700		3,942	Barrels	1,378		12,856
Purchased options	—	Barrels	—		—		—	Barrels	—		516
Subtotal	8,255	Barrels	21,367		10,470		6,529	Barrels	8,313		49,432
Natural gas:
Swaps	115,453	MMBTUs	50,828		38,326		91,900	MMBTUs	69,767		106,883
Collars	35,821	MMBTUs	16,082		524		31,142	MMBTUs	12,451		1,960
Purchased options	1,559	MMBTUs	179		—		—	MMBTUs	—		—
Subtotal	152,833	MMBTUs	67,089		38,850		123,042	MMBTUs	82,218		108,843
Total			$	88,456	$	49,320			$	90,531	$	158,275

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, 2023 and 2022. The after-tax impact of cash flow hedges on AOCI is shown in Note 14 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-Q.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2023		2022		2023			2022
Losses recognized in AOCI:
Interest rate contracts	$	(96,457)	$	(7,837)	$	(66,614)		$	(40,446)
Gains (losses) reclassified from AOCI into earnings:
Interest expense (for cash flow hedges on borrowings)	—		308		696			135
Interest and dividend income (for cash flow hedges on loans)	(20,252)		812		(33,206)			3,085
Noninterest income	—		—		1,614		(1)	—
Total	$	(20,252)	$	1,120	$	(30,896)		$	3,220

(1)Represents the amounts in AOCI reclassified into earnings as a result that the forecasted cash flows were no longer probable to occur.

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

The following table presents the pre-tax gains recognized in AOCI on net investment hedges for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2023		2022		2023		2022
Gains recognized in AOCI	$	3,899	$	3,255	$	2,823	$	1,684

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, 2023 and 2022:

	Classification on Consolidated Statement of Income	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)		2023		2022		2023		2022
Derivatives not designated as hedging instruments:
Interest rate contracts	Interest rate contracts and other derivative income	$	1,222	$	5,984	$	(1,261)	$	13,569
Foreign exchange contracts	Foreign exchange income	19,898		(4,557)		30,340		2,765
Credit contracts	Interest rate contracts and other derivative income	12		(9)		7		65
Equity contracts	Lending fees	(14)		93		(60)		187
Commodity contracts	Interest rate contracts and other derivative income	160		344		166		295
Net gains		$	21,278	$	1,855	$	29,192	$	16,881

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 to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of over-collateralization are not shown:

($ in thousands)	As of June 30, 2023
	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	$	765,161	$	(208,183)	$	(264,245)	$	292,733	$	(258,757)	$	33,976
	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	$	811,725	$	(208,183)	$	—	$	603,542	$	—	$	603,542

($ in thousands)	As of December 31, 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	$	755,328	$	(242,745)	$	(372,038)	$	140,545	$	(60,567)	$	79,978
	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	$	887,264	$	(242,745)	$	—	$	644,519	$	(38,438)	$	606,081

(1)Includes $287 thousand and $2.1 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2023 and December 31, 2022, respectively.

(2)Includes $12 thousand and $566 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2023 and December 31, 2022, respectively.

(3)Gross cash collateral received under master netting arrangements or similar agreements was $275.7 million and $384.9 million as of June 30, 2023 and December 31, 2022, respectively. Of the gross cash collateral received, $264.2 million and $372.0 million were used to offset against derivative assets as of June 30, 2023 and December 31, 2022, respectively.

(4)Gross cash collateral pledged under master netting arrangements or similar agreements was zero and $490 thousand as of June 30, 2023 and December 31, 2022, respectively. No cash collateral was used to offset against derivative liabilities as of both June 30, 2023 and December 31, 2022.

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