Derivative financial instruments (Tables)

3 Months Ended

Mar. 31, 2018

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:

	Notional		Average		Weighted- Average Rate						Estimated Fair
	Amount		Maturity		Fixed			Variable			Value Gain (a)
	(In thousands)		(In years)								(In thousands)
March 31, 2018
Fair value hedges:
Fixed rate long-term borrowings (b)	$	4,700,000		3.0		2.41	%		2.48	%	$	316
Cash flow hedges:
Interest payments on variable rate          commercial real estate loans (b)(c)		4,850,000		1.7		1.52	%		1.66	%		60
Total	$	9,550,000		2.5							$	376
December 31, 2017
Fair value hedges:
Fixed rate long-term borrowings (b)	$	4,550,000		2.9		2.27	%		2.09	%	$	573
Cash flow hedges:
Interest payments on variable rate          commercial real estate loans (b)(c)		4,850,000		2.0		1.52	%		1.36	%		66
Total	$	9,400,000		2.5							$	639

(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, 2018 and December 31, 2017 was a reduction of the estimated fair value losses on interest rate swap agreements designated as fair value hedges of $83.2 million and $41.1 million, respectively, and on interest rate swap agreements designated as cash flow hedges of $30.4 million and $16.3 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 $2.0 billion of forward-starting interest rate swap agreements that will become effective upon maturity in 2019 of $2.0 billion of agreements currently in effect.

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, 2018		December 31, 2017		March 31, 2018		December 31, 2017
	(In thousands)
Derivatives designated and qualifying as hedging instruments
Interest rate swap agreements (a)	$	376	$	639	$	—	$	—
Commitments to sell real estate loans (a)		1,335		734		1,470		283
		1,711		1,373		1,470		283
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		10,562		8,797		1,802		494
Commitments to sell real estate loans (a)		5,361		2,526		2,341		1,019
Trading:
Interest rate contracts (b)		71,930		74,164		231,254		132,104
Foreign exchange and other option and futures contracts (b)		6,634		5,657		5,580		5,286
		94,487		91,144		240,977		138,903
Total derivatives	$	96,198	$	92,517	$	242,447	$	139,186

(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, 2018 and December 31, 2017 was a reduction of the estimated fair value of interest rate contracts in the trading account in an asset position of $235.6 million and $136.2 million, respectively, and in a liability position of $6.2 million and $12.2 million, respectively.

9. Derivative financial instruments, continued

	Carrying Amount of the Hedged Item				Cumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount of the Hedged Item
	March 31,		December 31,		March 31,			December 31,
	2018		2017		2018			2017
Location in the Consolidated Balance Sheet of    the Hedged Items in Fair Value Hedges
Long-term debt	$	4,612,063	$	4,504,029	$	(82,503	)	$	(40,133	)

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

	Amount of Gain (Loss) Recognized
	Three Months Ended March 31, 2018					Three Months Ended March 31, 2017
	Derivative			Hedged Item		Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(42,390	)		42,370	$	(4,119	)		4,012
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	(1,605	)			$	1,950
Foreign exchange and other option and futures contracts (b)		2,631					1,836
Total	$	1,026				$	3,786

(a) Effective January 1, 2018, reported as an adjustment to interest expense. Prior to 2018, reported as other revenues from operations.  

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