Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2022

Summary of Derivative Instruments [Abstract]

The following table reflects the estimated fair value of derivative instruments included in other assets and other liabilities on the consolidated balance sheets along with their respective notional amounts on a gross basis.


	September 30, 2022						December 31, 2021
			Estimated Fair Value						Estimated Fair Value
(in thousands)	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
Derivatives in cash flow hedging relationships:
Interest rate contracts	$	5,250,000	$	—	$	8,571	$	3,600,000	$	22,004	$	20,395
Total cash flow hedges			$	—	$	8,571			$	22,004	$	20,395

Derivatives in fair value hedging relationships:
Interest rate contracts	$	1,766,496	$	—	$	4,260	$	—	$	—	$	—
Total fair value hedges			$	—	$	4,260			$	—	$	—
Total derivatives designated as hedging instruments			$	—	$	12,831			$	22,004	$	20,395

Derivatives not designated as hedging instruments:
Interest rate contracts	$	9,256,575	$	77,220	$	325,354	$	9,653,600	$	167,560	$	74,514
Mortgage derivatives - interest rate lock commitments	88,598		—		785		99,006		2,105		—
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans	108,000		4,347		—		105,500		—		122
Risk participation agreements	472,751		—		—		374,214		—		36
Foreign exchange contracts	17,862		520		—		22,387		39		—
Visa derivative	—		—		1,184		—		—		3,535
Total derivatives not designated as hedging instruments			$	82,087	$	327,323			$	169,704	$	78,207

Schedule of Derivative Instruments, Effect on Hedging

The following table presents the effect of hedging derivative instruments on the consolidated statements of income and the total amounts for the respective line item affected for the three and nine months ended September 30, 2022 and 2021.


	Three Months Ended September 30, 2022
	Interest Income		Interest Expense
(in thousands)	Loans, including fees		Deposits		Long-term debt		Other borrowings
Total interest income/(expense) amounts presented in the consolidated statements of income	$	478,448	$	46,917	$	22,156	$	4,307

Gain/(loss) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans	$	(10,253)	$	—	$	—	$	—
Pre-tax income (loss) recognized on cash flow hedges	$	(10,253)	—		—		—

Gain/(loss) on fair value hedging relationships:
Recognized on derivatives	$	—	$	(17,523)	$	(17,769)	$	(300)
Recognized on hedged items	—		17,523		17,769		300
Pre-tax income (loss) recognized on fair value hedges	$	—	$	—	$	—	$	—


	Three Months Ended September 30, 2021
	Interest Income
(in thousands)	Loans, including fees
Total interest income/(expense) amounts presented in the consolidated statements of income	$	369,323

Gain/(loss) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans	$	4,009
Pre-tax income (loss) recognized on cash flow hedges	$	4,009


	Nine Months Ended September 30, 2022
	Interest Income		Interest Expense
(in thousands)	Loans, including fees		Deposits		Long-term debt		Other borrowings
Total interest income/(expense) amounts presented in the consolidated statements of income	$	1,230,847	$	79,077	$	41,069	$	5,432

Gain/(loss) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans	$	4,556	$	—	$	—	$	—
Pre-tax income (loss) recognized on cash flow hedges	$	4,556	—		—		—

Gain/(loss) on fair value hedging relationships:
Recognized on derivatives	$	—	$	(20,341)	$	(19,224)	$	(300)
Recognized on hedged items	—		20,341		19,224		300
Pre-tax income (loss) recognized on fair value hedges	$	—	$	—	$	—	$	—


	Nine Months Ended September 30, 2021
	Interest Income
(in thousands)	Loans, including fees
Total interest income/(expense) amounts presented in the consolidated statements of income	$	1,113,102

Gain/(loss) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans	$	9,265
Pre-tax income (loss) recognized on cash flow hedges	$	9,265

(1) See "Part I - Item 1. Financial Statements and Supplementary Data - Note 5 - Accumulated Other Comprehensive Income (Loss)" for gain (loss) recognized on cash flow hedging relationships in AOCI.

Schedule of Carrying Amount and Associated Cumulative Basis Adjustment Related to the Application of Hedge Accounting

The following table presents the carrying amount and associated cumulative basis adjustment related to the application of hedge accounting that is included in the carrying amount of the hedged assets/(liabilities) in fair value hedging relationships.


	September 30, 2022				December 31, 2021
	Hedged Items Currently Designated				Hedged Items Currently Designated
(in thousands)	Carrying Amount of Assets/(Liabilities)		Hedge Accounting Basis Adjustment		Carrying Amount of Assets/(Liabilities)		Hedge Accounting Basis Adjustment
Interest-bearing deposits	$	(866,496)	$	20,341	$	—	$	—
Long-term debt	(545,520)		19,224		—		—
Short-term FHLB advances	(350,000)		300		—		—

Effect of Fair Value Hedges on Consolidated Statements of Income

The pre-tax effect of changes in fair value from derivative instruments not designated as hedging instruments on the consolidated statements of income for the three and nine months ended September 30, 2022 and 2021 is presented below.


		Gain (Loss) Recognized in Consolidated Statements of Income
		Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	Location in Consolidated Statements of Income	2022		2021		2022		2021
Derivatives not designated as hedging instruments:
Interest rate contracts(1)	Capital markets income	$	137	$	164	$	1,546	$	474
Mortgage derivatives - interest rate lock commitments	Mortgage banking income	(1,966)		(1,388)		(2,890)		(3,160)
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans	Mortgage banking income	4,114		922		4,469		2,190
Risk participation agreements	Capital markets income	1		90		36		272
Foreign exchange contracts	Capital markets income	97		—		482		—
Visa derivative	Other non-interest expense	—		—		(3,500)		—
Total derivatives not designated as hedging instruments		$	2,383	$	(212)	$	143	$	(224)

(1) Gain (loss) represents net fair value adjustments (including credit related adjustments) for client swaps.