Derivative financial instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Information about Interest Rate Swap Agreements

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:

					Weighted-						Estimated
	Notional		Average		Average Rate						Fair Value
	Amount		Maturity		Fixed			Variable			Gain (Loss) (a)
	(In thousands)		(In years)								(In thousands)
December 31, 2022
Fair value hedges:
Fixed rate long-term borrowings (b)	$	1,500,000		3.3		2.98	%		4.52	%	$	(833	)
Cash flow hedges:
Interest payments on variable rate commercial real estate loans (b) (c)		15,900,000		1.4		1.91	%		4.38	%		(7,059	)
Total	$	17,400,000		1.6							$	(7,892	)
December 31, 2021
Fair value hedges:
Fixed rate long-term borrowings (b)	$	1,650,000		2.3		2.86	%		0.74	%	$	41
Cash flow hedges:
Interest payments on variable rate commercial real estate loans (b) (d)		21,700,000		0.6		1.24	%		0.09	%		(248	)
Total	$	23,350,000		0.7							$	(207	)

(a)Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such payments for interest rate swap agreements designated as fair value hedges was a net settlement of losses of $65.0 million at December 31, 2022 and a net settlement of gains of $43.5 million at December 31, 2021. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of losses of $329.7 million at December 31, 2022 and a net settlement of gains of $88.2 million at December 31, 2021.

(b)Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

(c)Includes notional amount and terms of $4.7 billion of forward-starting interest rate swap agreements that become effective in 2023.

(d)Includes notional amount and terms of $8.4 billion of forward-starting interest rate swap agreements that became effective in 2022.

Notional Amount of Interest Rate Swap Agreements Outstanding Maturity

The notional amount of interest rate swap agreements entered into for risk management purposes that were outstanding at December 31, 2022 mature as follows:

	(In thousands)
Year ending December 31:
2023	$	7,350,000
2025		9,050,000
2027		1,000,000
	$	17,400,000

Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet

Information about the fair values of derivative instruments in the Company’s consolidated balance sheet and consolidated statement of income follows:

	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
	December 31,		December 31,		December 31,		December 31,
	2022		2021		2022		2021
	(In thousands)
Derivatives designated and qualifying as    hedging instruments (a)
Interest rate swap agreements	$	1,202	$	258	$	9,094	$	465
Commitments to sell real estate loans		3,037		4,044		9		548
		4,239		4,302		9,103		1,013
Derivatives not designated and qualifying as    hedging instruments (a)
Mortgage banking:
Mortgage-related commitments to originate real estate loans      for sale		452		11,728		46,025		5,288
Commitments to sell real estate loans		51,410		8,137		14		4,108
Other:
Interest rate contracts (b)		355,806		410,056		1,278,180		76,278
Foreign exchange and other option and futures contracts		24,062		8,230		22,004		7,156
		431,730		438,151		1,346,223		92,830
Total derivatives	$	435,969	$	442,453	$	1,355,326	$	93,843

(a)Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities.

The impact of variation margin payments at December 31, 2022 and December 31, 2021 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $1.1 billion and $54.4 million, respectively, and in a liability position of $29.2 million and $305.1 million, respectively.

Information about Fair Values of Derivative Instruments in Consolidated Statement of Income

	Amount of Gain (Loss) Recognized
	Year Ended December 31, 2022					Year Ended December 31, 2021					Year Ended December 31, 2020
	Derivative			Hedged Item		Derivative			Hedged Item		Derivative		Hedged Item
	(In thousands)
Derivatives in fair value    hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(109,319	)	$	108,920	$	(58,599	)	$	57,716	$	57,611	$	(57,686	)
Derivatives not designated as    hedging instruments
Interest rate contracts (b)	$	27,391				$	11,486				$	27,734
Foreign exchange and other option and    futures contracts (b)		14,284					9,064					7,363
Total	$	41,675				$	20,550				$	35,097

(a)Reported as an adjustment to interest expense.

(b)Reported as trading account and non-hedging derivative gains.