The notional amounts of the Company’s derivative instruments are shown in the table below. These contractual amounts, along with other terms of the derivative, are used to determine amounts to be exchanged between counterparties and are not a measure of loss exposure. With the exception of the interest rate floors (discussed below), the Company's derivative instruments are accounted for as free-standing derivatives, and changes in their fair value are recorded in current earnings.


	December 31
(In thousands)	2021		2020
Interest rate swaps	$	2,229,419	$	2,367,017

Interest rate caps	152,058		103,028
Credit risk participation agreements	485,633		381,170
Foreign exchange contracts	5,119		7,431
Mortgage loan commitments	21,787		67,543
Mortgage loan forward sale contracts	1,165		—
Forward TBA contracts	21,000		89,000
Total notional amount	$	2,916,181	$	3,015,189

The largest group of notional amounts relate to interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. Those customers are engaged in a variety of businesses, including real estate, manufacturing, retail product distribution, education, and retirement communities. These interest rate swap contracts with customers are offset by matching interest rate swap contracts purchased by the Company from other financial institutions (dealers). Contracts with dealers that require central clearing are novated to a clearing agency who becomes the Company's counterparty. Because of the matching terms of the offsetting contracts, in addition to collateral provisions which mitigate the impact of non-performance risk, changes in fair value subsequent to initial recognition have a minimal effect on earnings.

Many of the Company’s interest rate swap contracts with large financial institutions contain contingent features relating to debt ratings or capitalization levels. Under these provisions, if the Company’s debt rating falls below investment grade or if the Company ceases to be “well-capitalized” under risk-based capital guidelines, certain counterparties can require immediate and ongoing collateralization on interest rate swaps in net liability positions or instant settlement of the contracts. The Company maintains debt ratings and capital well above those minimum requirements.

During the year ended December 31, 2020, the Company monetized three interest rate floors that were previously classified as cash flow hedges with a combined notional balance of $1.5 billion and an asset fair value of $163.2 million. As of December 31, 2021, the total unrealized gains on the monetized cash flow hedges remaining in AOCI was $99.4 million (pre-tax). The unrealized gains will be reclassified into interest income as the underlying forecasted transactions impact earnings through the original maturity dates of the hedged forecasted transactions, or approximately within 5 years. The estimated amount of net gains related to the cash flow hedges remaining in AOCI at December 31, 2021 that is expected to be reclassified into income within the next 12 months is $24.5 million.

The Company also contracts with other financial institutions, as a guarantor or beneficiary, to share credit risk associated with certain interest rate swaps through risk participation agreements. The Company’s risks and responsibilities as guarantor are further discussed in Note 21 on Commitments, Contingencies and Guarantees. In addition, the Company enters into foreign exchange contracts, which are mainly comprised of contracts with customers to purchase or deliver specific foreign currencies at specific future dates.

Under its program to sell residential mortgage loans in the secondary market, the Company designates certain newly-originated residential mortgage loans as held for sale. Derivative instruments arising from this activity include mortgage loan commitments and forward loan sale contracts. Changes in the fair values of the loan commitments and funded loans prior to sale that are due to changes in interest rates are economically hedged with forward contracts to sell residential mortgage-backed securities in the to-be-announced (TBA) market. These forward TBA contracts are also considered to be derivatives and are settled in cash at the security settlement date.

The fair values of the Company’s derivative instruments, whose notional amounts are listed above, are shown in the table below. Information about the valuation methods used to determine fair value is provided in Note 17 on Fair Value Measurements.


	Asset Derivatives				Liability Derivatives
	December 31				December 31
	2021		2020		2021		2020
(In thousands)	Fair Value				Fair Value



Derivatives not designated as hedging instruments:
Interest rate swaps *	$	40,752	$	86,389	$	(11,606)	$	(17,199)
Interest rate caps	147		1		(147)		(1)
Credit risk participation agreements	84		216		(277)		(701)
Foreign exchange contracts	77		57		(45)		(103)
Mortgage loan commitments	764		3,226		—		—
Mortgage loan forward sale contracts	5		—		(1)		—
Forward TBA contracts	13		—		(25)		(671)
Total derivatives not designated as hedging instruments	$	41,842	$	89,889	$	(12,101)	$	(18,675)
Total	$	41,842	$	89,889	$	(12,101)	$	(18,675)

*Certain collateral was posted to and from the Company's clearing party and has been applied to the fair values of the cleared swaps. As a result, these values are net of variation margin of $587 thousand and $0 for interest rate swaps in an asset position, and $29.7 million and $69.2 million for interest rate swaps in a liability position, at December 31, 2021 and 2020, respectively.


	Amount of Gain or (Loss) Recognized in OCI						Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
(In thousands)	Total		Included Component		Excluded Component		(In thousands)	Total		Included Component		Excluded Component
For the Year Ended December 31, 2021
Derivatives in cash flow hedging relationships:
Interest rate floors	$	—	$	—	$	—	Interest and fees on loans	$	24,160	$	30,310	$	(6,150)
Total	$	—	$	—	$	—	Total	$	24,160	$	30,310	$	(6,150)
For the Year Ended December 31, 2020
Derivatives in cash flow hedging relationships:
Interest rate floors	$	93,497	$	120,140	$	(26,643)	Interest and fees on loans	$	10,319	$	15,257	$	(4,938)
Total	$	93,497	$	120,140	$	(26,643)	Total	$	10,319	$	15,257	$	(4,938)
For the Year Ended December 31, 2019
Derivatives in cash flow hedging relationships:
Interest rate floors	$	27,481	$	50,327	$	(22,846)	Interest and fees on loans	$	(3,793)	$	—	$	(3,793)
Total	$	27,481	$	50,327	$	(22,846)	Total	$	(3,793)	$	—	$	(3,793)


	Location of Gain/(Loss) Recognized in the Consolidated Statements of Income	Amount of Gain/(Loss) Recognized in Income on Derivative
		For the Years Ended December 31
(In thousands)		2021		2020		2019



Derivative instruments:
Interest rate swaps	Other non-interest income	$	3,170	$	317	$	4,732
Interest rate caps	Other non-interest income	15		20		—
Credit risk participation agreements	Other non-interest income	(187)		413		(16)
Foreign exchange contracts	Other non-interest income	78		(111)		53
Mortgage loan commitments	Loan fees and sales	(2,463)		2,768		(77)
Mortgage loan forward sale contracts	Loan fees and sales	4		(4)		(3)
Forward TBA contracts	Loan fees and sales	1,777		(1,440)		(837)
Total		$	2,394	$	1,963	$	3,852

The following table shows the extent to which assets and liabilities relating to derivative instruments have been offset in the consolidated balance sheets. It also provides information about these instruments which are subject to an enforceable master netting arrangement, irrespective of whether they are offset, and the extent to which the instruments could potentially be offset. Also shown is collateral received or pledged in the form of other financial instruments, which is generally cash or marketable securities. The collateral amounts in this table are limited to the outstanding balances of the related asset or liability (after netting is applied); thus amounts of excess collateral are not shown. Most of the derivatives in the following table were transacted under master netting arrangements that contain a conditional right of offset, such as close-out netting, upon default.

While the Company is party to master netting arrangements with most of its swap counterparties, the Company does not offset derivative assets and liabilities under these arrangements on its consolidated balance sheets. Collateral exchanged between the Company and dealer bank counterparties is generally subject to thresholds and transfer minimums, and usually consist of marketable securities. By contract, this collateral may be sold or re-pledged by the secured party until recalled at a subsequent valuation date by the pledging party. For those swap transactions requiring central clearing, the Company posts cash or securities to its clearing agent. Collateral positions are valued daily, and adjustments to amounts received and pledged by the Company are made as appropriate to maintain proper collateralization for these transactions. Swap derivative transactions with customers are generally secured by rights to non-financial collateral, such as real and personal property, which is not shown in the table below.