Derivative financial instruments (Tables)

3 Months Ended

Mar. 31, 2022

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:

					Weighted-						Estimated
	Notional		Average		Average Rate						Fair Value
	Amount		Maturity		Fixed			Variable			Gain (Loss) (a)
	(In thousands)		(In years)								(In thousands)
March 31, 2022
Fair value hedges:
Fixed rate long-term borrowings (b)	$	1,650,000		2.1		2.86	%		1.09	%	$	1,022
Cash flow hedges:
Interest payments on variable rate          commercial real estate loans (b)(c)		19,000,000		0.9		1.31	%		0.35	%		2,819
Total	$	20,650,000		1.0							$	3,841
December 31, 2021
Fair value hedges:
Fixed rate long-term borrowings (b)	$	1,650,000		2.3		2.86	%		0.74	%	$	41
Cash flow hedges:
Interest payments on variable rate          commercial real estate loans (b)(d)		21,700,000		0.6		1.24	%		0.09	%		(248	)
Total	$	23,350,000		0.7							$	(207	)

(a) Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such payments for interest rate swap agreements designated as fair value hedges was a net settlement of losses of $782,000 at March 31, 2022 and a net settlement of gains of $43.5 million at December 31, 2021. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of losses of $68.7 million at March 31, 2022 and net settlement of gains of $88.2 million at December 31, 2021.

(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 $5.7 billion of forward-starting interest rate swap agreements that become effective in 2022 - 2023.

(d) Includes notional amount and terms of $8.4 billion of forward-starting interest rate swap agreements that become effective in 2022.

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,		December 31,		March 31,		December 31,
	2022		2021		2022		2021
	(In thousands)
Derivatives designated and qualifying as hedging instruments
Interest rate swap agreements (a)	$	4,298	$	258	$	457	$	465
Commitments to sell real estate loans (a)		10,002		4,044		74		548
		14,300		4,302		531		1,013
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans     for sale (a)		1,319		11,728		16,747		5,288
Commitments to sell real estate loans (a)		26,680		8,137		799		4,108
Trading:
Interest rate contracts (b)		141,066		410,056		292,873		76,278
Foreign exchange and other option and futures contracts (b)		9,637		8,230		9,633		7,156
		178,702		438,151		320,052		92,830
Total derivatives	$	193,002	$	442,453	$	320,583	$	93,843

(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, 2022 and December 31, 2021 was a reduction of the estimated fair value of interest rate contracts in the trading account in an asset position of $277.6 million and $54.4 million, respectively, and in a liability position of $45.9 million and $305.1 million, respectively.

	Carrying Amount of the Hedged Item				Cumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount of the Hedged Item
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
	(In thousands)
Location in the Consolidated Balance Sheet    of the Hedged Items in Fair Value Hedges
Long-term debt	$	1,650,130	$	1,692,943	$	612	$	43,610

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

	Amount of Gain (Loss) Recognized
	Three Months Ended March 31, 2022					Three Months Ended March 31, 2021
	Derivative			Hedged Item		Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(43,273	)		42,998	$	(32,658	)		31,898
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	106				$	(3,234	)
Foreign exchange and other option and futures contracts (b)		1,746					1,608
Total	$	1,852				$	(1,626	)

(a) Reported as an adjustment to interest expense.

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