The fair value of derivative positions outstanding is included in accrued interest receivable and other assets and accrued interest payable and other liabilities in the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows.

Interest Rate Derivatives. We utilize various interest rate swaps, caps and floors, among other things, to mitigate exposure to interest rate risk and to facilitate the needs of our customers. Our objectives for utilizing these derivative instruments are described in our 2022 Form 10-K.

The notional amounts and estimated fair values of interest rate derivative contracts are presented in the following table. The fair values of interest rate derivative contracts are estimated utilizing internal valuation methods with observable market data inputs, or as determined by the Chicago Mercantile Exchange (“CME”) for centrally cleared derivative contracts. CME rules legally characterize variation margin payments for centrally cleared derivatives as settlements of the derivatives' exposure rather than collateral. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting and financial reporting purposes. Variation margin, as determined by the CME, is settled daily. As a result, derivative contracts that clear through the CME have an estimated fair value of zero as of March 31, 2023 and December 31, 2022.


	March 31, 2023				December 31, 2022
	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
Derivatives designated as hedges of fair value:
Financial institution counterparties:
Loan/lease interest rate swaps – assets	$	1,548	$	8	$	1,614	$	19

Non-hedging interest rate derivatives:
Financial institution counterparties:
Loan/lease interest rate swaps – assets	1,058,771		61,076		1,165,812		70,416
Loan/lease interest rate swaps – liabilities	161,505		(3,160)		78,798		(1,102)
Loan/lease interest rate caps – assets	234,322		12,816		246,442		15,256
Customer counterparties:
Loan/lease interest rate swaps – assets	160,438		3,160		53,570		1,102
Loan/lease interest rate swaps – liabilities	1,058,771		(62,210)		1,175,563		(79,175)
Loan/lease interest rate caps – liabilities	234,322		(12,816)		246,442		(15,256)


	Weighted-Average
	Interest Rate Paid		Interest Rate Received
Interest rate swaps:
Fair value hedge loan/lease interest rate swaps	1.58	%	4.66	%
Non-hedging interest rate swaps – financial institution counterparties	3.90		5.53
Non-hedging interest rate swaps – customer counterparties	5.53		3.90

Commodity Derivatives. We enter into commodity swaps and option contracts that are not designated as hedging instruments primarily to accommodate the business needs of our customers. Upon the origination of a commodity swap or option contract with a customer, we simultaneously enter into an offsetting contract with a third-party financial institution to mitigate the exposure to fluctuations in commodity prices.

The notional amounts and estimated fair values of non-hedging commodity swap and option derivative positions outstanding are presented in the following table. We obtain dealer quotations and use internal valuation methods with observable market data inputs to value our commodity derivative positions.


		March 31, 2023			December 31, 2022
	Notional Units	Notional Amount	Estimated Fair Value		Notional Amount	Estimated Fair Value
Financial institution counterparties:
Oil – assets	Barrels	3,964	$	26,640	4,024	$	27,082
Oil – liabilities	Barrels	5,825	(31,281)		6,068	(53,579)
Natural gas – assets	MMBTUs	16,741	9,852		16,539	6,220
Natural gas – liabilities	MMBTUs	14,860	(10,265)		15,682	(19,138)
Customer counterparties:
Oil – assets	Barrels	5,852	31,789		6,068	54,219
Oil – liabilities	Barrels	3,938	(26,200)		4,024	(26,551)
Natural gas – assets	MMBTUs	14,860	10,342		15,682	19,164
Natural gas – liabilities	MMBTUs	16,741	(9,729)		16,539	(6,124)

Foreign Currency Derivatives. We enter into foreign currency forward and option contracts that are not designated as hedging instruments primarily to accommodate the business needs of our customers. Upon the origination of a foreign currency denominated transaction with a customer, we simultaneously enter into an offsetting contract with a third-party financial institution to negate the exposure to fluctuations in foreign currency exchange rates. We also utilize foreign currency forward contracts and options that are not designated as hedging instruments to mitigate the economic effect of fluctuations in foreign currency exchange rates on foreign currency holdings and certain short-term, non-U.S. dollar denominated loans. The notional amounts and fair values of open foreign currency forward and option contracts were as follows:


		March 31, 2023			December 31, 2022
	Notional Currency	Notional Amount	Estimated Fair Value		Notional Amount	Estimated Fair Value
Financial institution counterparties:
Forward and option contracts – assets	EUR	—	$	—	875	$	1




Forward and option contracts – liabilities	EUR	7,000	(176)		875	(10)




Customer counterparties:
Forward and option contracts – assets	EUR	7,000	186		875	10




Forward and option contracts – liabilities	EUR	—	—		875	(1)

Gains, Losses and Derivative Cash Flows. For fair value hedges, the changes in the fair value of both the derivative hedging instrument and the hedged item are included in other non-interest income or other non-interest expense. The extent that such changes in fair value do not offset represents hedge ineffectiveness. Net cash flows from interest rate swaps on commercial loans/leases designated as hedging instruments in effective hedges of fair value are included in interest income on loans. For non-hedging derivative instruments, gains and losses due to changes in fair value and all cash flows are included in other non-interest income and other non-interest expense.


	Three Months Ended March 31,
		2023		2022
Commercial loan/lease interest rate swaps:
Amount of gain (loss) included in interest income on loans		$	12	$	(13)
Amount of (gain) loss included in other non-interest expense		—		2

As stated above, we enter into non-hedge related derivative positions primarily to accommodate the business needs of our customers. Upon the origination of a derivative contract with a customer, we simultaneously enter into an offsetting derivative contract with a third party financial institution. We recognize immediate income based upon the difference in the bid/ask spread of the underlying transactions with our customers and the third party. Because we act only as an intermediary for our customer, subsequent changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact our results of operations.


	Three Months Ended March 31,
		2023		2022
Non-hedging interest rate derivatives:
Other non-interest income		$	710	$	516
Other non-interest expense		(1)		—
Non-hedging commodity derivatives:
Other non-interest income		422		929
Non-hedging foreign currency derivatives:
Other non-interest income		25		18