The Company primarily uses derivatives to manage exposure to market risk, including interest rate risk, credit risk and foreign currency risk, and to assist customers with their risk management objectives. Management will designate certain derivatives as hedging instruments in a qualifying hedge accounting relationship. The Company’s remaining derivatives consist of economic hedges that do not qualify for hedge accounting and derivatives held for customer accommodation, or other purposes.

The fair value of derivative positions outstanding is included in “other assets” and “other liabilities” on 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. For derivatives not designated as hedging instruments, gains and losses due to changes in fair value are included in noninterest income and the operating section of the consolidated statement of cash flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income.

The notional amounts and estimated fair values as of March 31, 2020 and December 31, 2019 were as follows:

	March 31, 2020						December 31, 2019
			Fair Value						Fair Value
(In thousands)	Notional Amount		Other Assets		Other Liabilities		Notional Amount		Other Assets		Other Liabilities
Derivatives designated as hedging instruments (cash flow hedges):
Commercial loan interest rate swaps	$	350,000	$	23,497	$	—	$	350,000	$	—	$	643
Commercial loan interest rate collars		—		—		—		4,000,000		239,213		—
Total derivatives designated as hedging instruments		350,000		23,497		—		4,350,000		239,213		643
Derivatives not designated as hedging instruments:
Commercial loan interest rate swaps		1,203,681		24,533		1,956		1,008,805		8,386		899
Commercial loan interest rate caps		171,470		11		11		167,185		18		18
Commercial loan interest rate floors		613,250		15,634		15,634		654,298		8,836		8,836
Commercial loan interest rate collars		73,332		711		711		75,555		257		257
Mortgage loan held-for-sale interest rate lock commitments		21,350		333		—		4,138		22		—
Mortgage loan forward sale commitments		2,705		—		23		4,109		26		—
Mortgage loan held-for-sale floating commitments		7,732		—		—		1,523		—		—
Foreign exchange contracts		73,937		1,614		1,208		74,322		379		558
Total derivatives not designated as hedging instruments		2,167,457		42,836		19,543		1,989,935		17,924		10,568
Total derivatives	$	2,517,457	$	66,333	$	19,543	$	6,339,935	$	257,137	$	11,211

The Company is party to collateral support agreements with certain derivative counterparties. Such agreements require that the Company or the counterparty to maintain collateral based on the fair values of derivative transactions. In the event of default by a counterparty the non-defaulting counterparty would be entitled to the collateral. At March 31, 2020 and December 31, 2019, the Company was required to post $13.2 million and $10.6 million, respectively, in cash or securities as collateral for its derivative transactions, which are included in “interest-bearing deposits with banks” on the Company’s consolidated balance sheets. In addition, the Company had recorded the obligation to return cash collateral provided by a counterparty of $19.1 million as of March 31, 2020 within deposits on the Company’s consolidated balance sheet. The Company’s master agreements represent written, legally enforceable bilateral agreements that (1) create a single legal obligation for all individual transactions covered by the master agreement and (2) in the event of default, provide the non-defaulting counterparty the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to promptly liquidate or set-off collateral posted by the defaulting counterparty. As permitted by U.S. GAAP, the Company does not offset fair value amounts for the right to reclaim cash collateral or the obligation to return cash collateral against fair value amounts of derivatives executed with the same counterparty under the master agreement.

Pre-tax gain (loss) included in the consolidated statements of income related to derivative instruments for the three months ended March 31, 2020 and 2019 were as follows:

	For the Three Months Ended March 31,
	2020							2019
(In thousands)	OCI		Reclassified from AOCI to interest income			Noninterest income		OCI		Reclassified from AOCI to interest income			Noninterest income
Derivatives designated as hedging instruments (cash flow hedges):
Commercial loan interest rate swaps	$	24,035	$	(106	)	$	—	$	6,656	$	(1,508	)	$	—
Commercial loan interest rate collars		143,198		8,213			—		41,477		—			—
Derivatives not designated as hedging instruments:
Mortgage loans held for sale interest rate lock commitments	$	—	$	—		$	311	$	—	$	—		$	69
Foreign exchange contracts							865		—		—			1,140

Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps, caps, floors and collars to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans (1-Month LIBOR).

In February 2019, the Company entered into a $4.0 billion notional interest rate collar with a five-year term. In March 2020, the collar was terminated and resulted in a $261.2 million realized gain that was recorded in accumulated other comprehensive income. The value received in exchange for the termination assumed an average 1-month LIBOR rate of 0.5785% over the next four years. The gain, currently reflected in other comprehensive income net of deferred income taxes, will amortize over the next four years into interest income.

In March 2016, the Company entered into the following interest rate swap agreements to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans.

Based on our current interest rate forecast, $76.1 million of deferred income on derivatives in OCI at March 31, 2020 is estimated to be reclassified into net interest income during the next twelve months. Future changes to interest rates or the amount of outstanding hedged loans may significantly change actual amounts reclassified to income. There were no reclassifications into income during the three months ended March 31, 2020 and 2019 as a result of any discontinuance of cash flow hedges because the forecasted transaction is no longer probable. The maximum length of time over which the Company is hedging a portion of its exposure to the variability in future cash flows for forecasted transactions is approximately 5.9 years as of March 31, 2020.

Interest Rate Swap, Floor, Cap and Collar Agreements not designated as hedging derivatives

The Company enters into certain interest rate swap, floor, cap and collar agreements on commercial loans that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap, floor, cap or collar with a loan customer while at the same time entering into an offsetting interest rate agreement with another financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The interest rate swap transaction allows the Company’s customer to effectively convert a variable rate loan to a fixed rate. The interest rate cap transaction allows the Company’s customer to minimize interest rate risk exposure to rising interest rates. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s consolidated statements of income. The Company is exposed to credit loss in the event of nonperformance by the parties to the interest rate agreements. However, the Company does not anticipate nonperformance by the counterparties. The estimated fair value has been recorded as an asset and a corresponding liability in the accompanying consolidated balance sheets as of March 31, 2020 and December 31, 2019.