Derivative financial instruments (Tables)

3 Months Ended

Mar. 31, 2023

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)
March 31, 2023
Fair value hedges:
Fixed rate long-term borrowings (b)	$	2,500,000		5.7		3.05	%		5.06	%	$	5,360
Cash flow hedges:
Interest payments on variable rate commercial real estate loans (b) (c)		12,700,000		2.0		3.10	%		4.82	%		5,890
Total	$	15,200,000		2.6							$	11,250
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) (d)		15,900,000		1.4		1.91	%		4.38	%		(7,059	)
Total	$	17,400,000		1.6							$	(7,892	)

(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 $59.1 million at March 31, 2023 and $65.0 million at December 31, 2022. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of losses of $232.6 million at March 31, 2023 and $329.7 million at December 31, 2022.

(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 $3.0 billion of forward-starting interest rate swap agreements that become effective in 2023.

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

Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet

10. Derivative financial instruments, continued

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
	March 31,		December 31,		March 31,		December 31,
	2023		2022		2023		2022
	(In thousands)
Derivatives designated and qualifying as hedging instruments (a)
Interest rate swap agreements	$	11,354	$	1,202	$	104	$	9,094
Commitments to sell real estate loans		2,824		3,037		2,091		9
		14,178		4,239		2,195		9,103
Derivatives not designated and qualifying as hedging instruments (a)
Mortgage banking:
Mortgage-related commitments to originate real estate loans      for sale		6,867		452		35,008		46,025
Commitments to sell real estate loans		39,550		51,410		1,439		14
		46,417		51,862		36,447		46,039
Other:
Interest rate contracts (b)		280,283		355,806		1,006,264		1,278,180
Foreign exchange and other option and futures contracts		22,067		24,062		19,035		22,004
		302,350		379,868		1,025,299		1,300,184
Total derivatives	$	362,945	$	435,969	$	1,063,941	$	1,355,326

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

	Amount of Gain (Loss) Recognized
	Three Months Ended March 31
	2023					2022
	Derivative		Hedged Item			Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	12,037		(12,019	)	$	(43,273	)		42,998
Derivatives not designated as hedging instruments
Interest rate contracts (b)	$	7,563				$	5,153
Foreign exchange and other option and futures contracts (b)		3,985					1,746
Total	$	11,548				$	6,899

(a)Reported as an adjustment to interest expense.

Reported as trading account and other non-hedging derivative gains.