Derivatives (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional and Fair Values of Derivatives

The following table presents the notional amounts and fair values of the Company’s derivatives as of December 31, 2022 and 2021. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet.

($ in thousands)	December 31, 2022							December 31, 2021
	Notional Amount			Fair Value				Notional Amount			Fair Value
				Derivative Assets		Derivative Liabilities					Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate contracts	$	3,450,000		$	13,455	$	19,687	$	275,000		$	—	$	57
Net investment hedges:
Foreign exchange contracts	84,832			5,590		—		86,531			—		225
Total derivatives designated as hedging instruments	$	3,534,832		$	19,045	$	19,687	$	361,531		$	—	$	282
Derivatives not designated as hedging instruments:
Interest rate contracts	$	16,932,414		$	426,828	$	564,829	$	17,575,420		$	240,222	$	179,905
Commodity contracts	—		(1)	261,613		258,608		—		(1)	222,709		194,567
Foreign exchange contracts	2,982,891			47,519		44,117		1,874,681			21,033		15,276
Credit contracts	140,950		(2)	—		23		72,560		(2)	—		141
Equity contracts	—		(3)	323		—		—		(3)	220		—
Total derivatives not designated as hedging instruments	$	20,056,255		$	736,283	$	867,577	$	19,522,661		$	484,184	$	389,889
Gross derivative assets/liabilities				$	755,328	$	887,264				$	484,184	$	390,171
Less: Master netting agreements				(242,745)		(242,745)					(58,679)		(58,679)
Less: Cash collateral received/paid				(372,038)		—					(42,274)		(174,048)
Net derivative assets/liabilities				$	140,545	$	644,519				$	383,231	$	157,444

(1)The notional amount of the Company’s commodity contracts totaled 12,005 thousand barrels of crude oil and 247,704 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of December 31, 2022. In comparison, the notional amount of the Company’s commodity contracts totaled 17,924 thousand barrels of crude oil and 218,770 thousand MMBTUs of natural gas as of December 31, 2021.

(2)Notional amount for credit contracts reflects the Company’s pro-rata share of the derivative instruments in RPAs.

(3)The Company held equity contracts in one public company and 13 private companies as of December 31, 2022, and one public company and 12 private companies as of December 31, 2021.

The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives issued for customer-related positions and other economic hedges as of December 31, 2022 and 2021:

($ in thousands)	December 31, 2022						December 31, 2021
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Assets		Liabilities				Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	6,656,491	$	1,438	$	521,719	$	7,460,836	$	211,727	$	39,650
Written options	1,548,158		—		30,904		1,118,074		—		2,148
Collars and corridors	215,773		—		8,924		194,181		1,272		642
Subtotal	8,420,422		1,438		561,547		8,773,091		212,999		42,440
Foreign exchange contracts:
Forwards and spot	993,588		17,009		18,090		900,290		13,688		9,446
Swaps	623,143		6,629		12,178		66,474		1,034		17
Other	121,631		2,070		245		20,287		2		—
Subtotal	1,738,362		25,708		30,513		987,051		14,724		9,463
Total	$	10,158,784	$	27,146	$	592,060	$	9,760,142	$	227,723	$	51,903
Other economic hedges:
Interest rate contracts:
Swaps	$	6,683,828	$	384,201	$	2,047	$	7,490,074	$	24,418	$	136,190
Purchased options	1,580,275		32,233		—		1,118,074		2,159		—
Written options	32,117		—		1,235		—		—		—
Collars and corridors	215,772		8,956		—		194,181		646		1,275
Subtotal	8,511,992		425,390		3,282		8,802,329		27,223		137,465
Foreign exchange contracts:
Forwards and spot	77,998		3,050		87		267,689		1,564		2,695
Swaps	1,044,900		18,516		11,447		599,654		4,745		3,116
Other	121,631		245		2,070		20,287		—		2
Subtotal	1,244,529		21,811		13,604		887,630		6,309		5,813
Total	$	9,756,521	$	447,201	$	16,886	$	9,689,959	$	33,532	$	143,278

The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and other economic hedges as of December 31, 2022 and 2021:

($ and unit in thousands)	December 31, 2022						December 31, 2021
	Notional Units		Fair Value				Notional Units		Fair Value
			Assets		Liabilities				Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	2,465	Barrels	$	39,955	$	6,178	4,682	Barrels	$	71,242	$	60
Collars	3,011	Barrels	16,038		2,630		2,837	Barrels	33,826		106
Written options	—	Barrels	558		—		—	Barrels	87		—
Subtotal	5,476	Barrels	56,551		8,808		7,519	Barrels	105,155		166
Natural gas:
Swaps	92,590	MMBTUs	112,314		73,208		58,959	MMBTUs	49,188		3,775
Collars	32,072	MMBTUs	2,217		18,317		24,315	MMBTUs	10,903		458
Subtotal	124,662	MMBTUs	114,531		91,525		83,274	MMBTUs	60,091		4,233
Total			$	171,082	$	100,333			$	165,246	$	4,399
Other economic hedges:
Commodity contracts:
Crude oil:
Swaps	2,587	Barrels	$	6,935	$	36,060	7,517	Barrels	$	27,524	$	82,723
Collars	3,942	Barrels	1,378		12,856		2,888	Barrels	—		33,399
Purchased options	—	Barrels	—		516		—	Barrels	—		81
Subtotal	6,529	Barrels	8,313		49,432		10,405	Barrels	27,524		116,203
Natural gas:
Swaps	91,900	MMBTUs	69,767		106,883		109,567	MMBTUs	28,803		63,029
Collars	31,142	MMBTUs	12,451		1,960		25,929	MMBTUs	1,136		10,936
Subtotal	123,042	MMBTUs	82,218		108,843		135,496	MMBTUs	29,939		73,965
Total			$	90,531	$	158,275			$	57,463	$	190,168

Schedule of Pre-Tax Changes in AOCI from Cash Flows Hedges

The following table presents the pre-tax changes in AOCI from cash flow hedges for the years ended December 31, 2022, 2021 and 2020. The after-tax impact of cash flow hedges on AOCI is shown in Note 15 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-K.

($ in thousands)	Year Ended December 31,
	2022		2021		2020
(Losses) gains recognized in AOCI:
Interest rate contracts	$	(74,069)	$	1,210	$	(1,604)
Realized (losses) gains reclassified from AOCI into earnings:
Interest expense (for cash flow hedges on borrowings)	$	3,200	$	(868)	$	113
Interest and dividend income (for cash flow hedges on loans)	(7,204)		—		—
Total	$	(4,004)	$	(868)	$	113

Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)

The following table presents the pre-tax gains (losses) recognized in AOCI on net investment hedges for the years ended December 31, 2022, 2021 and 2020:

($ in thousands)	Year Ended December 31,
	2022		2021		2020
Gains (losses) recognized in AOCI	$	4,509	$	(4,558)	$	(6,700)

Schedule of Net Gains (Losses) Recognized on the Consolidated Statements of Income Related to Derivatives not Designated as Hedging Instruments

The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the years ended December 31, 2022, 2021 and 2020:

($ in thousands)	Classification on Consolidated Statement of Income	Year Ended December 31,
		2022		2021		2020
Derivatives not designated as hedging instruments:
Interest rate contracts	Interest rate contracts and other derivative income	$	13,905	$	11,493	$	(8,637)
Foreign exchange contracts	Foreign exchange income	13,799		45,921		23,215
Credit contracts	Interest rate contracts and other derivative income	118		139		(5)
Equity contracts	Lending fees	151		382		11,025
Commodity contracts	Interest rate contracts and other derivative income	48		(58)		(35)
Net gains		$	28,021	$	57,877	$	25,563

Schedule of Gross Derivative Fair Values, the Balance Sheet Netting Adjustments and Net Fair Values on the Consolidated Balance Sheets, As Well As the Cash and Non-Cash Collateral

The following tables present the gross derivative fair values, the balance sheet netting adjustments and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of overcollateralization are not shown:

($ in thousands)	As of December 31, 2022
	Gross Amounts Recognized (1)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)
Derivative assets	$	755,328	$	(242,745)	$	(372,038)	$	140,545	$	(60,567)	$	79,978
	Gross Amounts Recognized (2)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)
Derivative liabilities	$	887,264	$	(242,745)	$	—	$	644,519	$	(38,438)	$	606,081

($ in thousands)	As of December 31, 2021
	Gross Amounts Recognized (1)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)
Derivative assets	$	484,184	$	(58,679)	$	(42,274)	$	383,231	$	—	$	383,231
	Gross Amounts Recognized (2)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)
Derivative liabilities	$	390,171	$	(58,679)	$	(174,048)	$	157,444	$	(106,598)	$	50,846

(1)Includes $2.1 million and $587 thousand of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2022 and 2021, respectively.

(2)Includes $566 thousand and $666 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2022 and 2021, respectively.

(3)Gross cash collateral received under master netting arrangements or similar agreements were $384.9 million and $47.0 million as of December 31, 2022 and 2021, respectively. Of the gross cash collateral received, $372.0 million and $42.3 million were used to offset against derivative assets as of December 31, 2022 and 2021, respectively.

(4)Gross cash collateral pledged under master netting arrangements or similar agreements were $490 thousand and $176.5 million as of December 31, 2022 and 2021, respectively. Of the gross cash collateral pledged, none and $174.0 million were used to offset against derivative liabilities as of December 31, 2022 and 2021, respectively.

(5)Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires disclosure of such amounts.