Derivative financial instruments (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021
Fair value hedges:
Fixed rate long-term borrowings (b)	$	1,650,000		3.1		2.86	%		0.75	%	$	(1,117	)
Cash flow hedges:
Interest payments on variable rate          commercial real estate loans (b)(c)		36,050,000		0.9		1.80	%		0.11	%		(2,077	)
Total	$	37,700,000		1.0							$	(3,194	)
December 31, 2020
Fair value hedges:
Fixed rate long-term borrowings (b)	$	1,650,000		3.3		2.86	%		0.79	%	$	651
Cash flow hedges:
Interest payments on variable rate          commercial real estate loans (b)(d)		49,400,000		0.9		2.22	%		0.15	%		425
Total	$	51,050,000		1.0							$	1,076

(a) Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such treatment at March 31, 2021 and December 31, 2020 was a reduction of the estimated fair value gains on interest rate swap agreements designated as fair value hedges of $70.6 million and $101.5 million, respectively, and on interest rate swap agreements designated as cash flow hedges of $283.1 million and $372.2 million, respectively.

(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 $18.7 billion of forward-starting interest rate swap agreements that become effective in 2021 - 2022.

(d) Includes notional amount and terms of $32.1 billion of forward-starting interest rate swap agreements that become effective in  2021 - 2022.

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
	March 31,		December 31,		March 31,		December 31,
	2021		2020		2021		2020
	(In thousands)
Derivatives designated and qualifying as hedging instruments
Interest rate swap agreements (a)	$	172	$	1,968	$	3,366	$	892
Commitments to sell real estate loans (a)		6,270		1,488		146		8,458
		6,442		3,456		3,512		9,350
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans     for sale (a)		22,921		43,599		9,164		365
Commitments to sell real estate loans (a)		36,179		2,409		5,605		13,868
Trading:
Interest rate contracts (b)		629,458		1,008,913		84,567		105,768
Foreign exchange and other option and futures contracts (b)		8,786		9,608		10,672		11,134
		697,344		1,064,529		110,008		131,135
Total derivatives	$	703,786	$	1,067,985	$	113,520	$	140,485

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

(b) Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities.  The impact of variation margin payments at March 31, 2021 and December 31, 2020 was a reduction of the estimated fair value of interest rate contracts in the trading account in an asset position of $54.6 million and $5.6 million, respectively, and in a liability position of $502.0 million and $806.5 million, respectively.

	Carrying Amount of the Hedged Item				Cumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount of the Hedged Item
	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
	(In thousands)
Location in the Consolidated Balance Sheet    of the Hedged Items in Fair Value Hedges
Long-term debt	$	1,718,238	$	1,750,048	$	69,428	$	101,326

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

	Amount of Gain (Loss) Recognized
	Three Months Ended March 31, 2021					Three Months Ended March 31, 2020
	Derivative			Hedged Item		Derivative		Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(32,658	)		31,898	$	88,710		(87,824	)
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	(3,234	)			$	12,786
Foreign exchange and other option and futures contracts (b)		1,608					4,352
Total	$	(1,626	)			$	17,138

(a) Reported as an adjustment to interest expense.

(b) Reported as trading account and foreign exchange gains.