Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 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.


	December 31, 2022						December 31, 2021
			Fair Value						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	$	—	$	8,286	$	3,600,000	$	22,004	$	20,395
Total derivatives designated as hedging instruments			$	—	$	8,286			$	22,004	$	20,395

Derivatives in fair value hedging relationships:
Interest rate contracts	2,230,232		$	—	$	8,093	$	—	$	—	$	—
Total fair value hedges			$	—	$	8,093			$	—	$	—
Total derivatives designated as hedging instruments			$	—	$	16,379			$	22,004	$	20,395

Derivatives not designated: as hedging instruments
Interest rate contracts	$	10,276,754	$	89,310	$	322,329	$	9,653,600	$	167,560	$	74,514
Mortgage derivatives - interest rate lock commitments	50,218		350		—		99,006		2,105		—
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans	76,500		155		—		105,500		—		122
Risk participation agreements	635,891		—		3		374,214		—		36
Foreign exchange contracts	20,439		—		516		22,387		39		—
Visa derivative	—		—		3,453		—		—		3,535
Total derivatives not designated as hedging instruments			$	89,815	$	326,301			$	169,704	$	78,207

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

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 years ended December 31, 2022, 2021, and 2020.


	2022
	Interest Income		Interest Expense
(in thousands)	Loans, including fees		Deposits		Long-term debt
Total interest income (expense) amounts presented in the consolidated statements of income	$	1,806,060	$	(187,232)	$	(79,402)

Gain (loss) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans	$	(24,057)	$	—	$	—
Pre-tax income (loss) recognized on cash flow hedges	$	(24,057)	$	—	$	—

Gain (loss) on fair value hedging relationships:
Amounts related to interest settlements and amortization on derivatives	$	—	$	1,516	$	(322)
Recognized on derivatives	—		(24,227)		(19,348)
Recognized on hedged items	—		24,227		19,348
Pre-tax income (loss) recognized on fair value hedges	$	—	$	1,516	$	(322)


	2021
	Interest Income
(in thousands)	Loans, including fees
Total interest income (expense) amounts presented in the consolidated statements of income	$	1,482,567

Gain (loss) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans	12,862
Pre-tax income (loss) recognized on cash flow hedges	$	12,862






	2020
	Interest Income
(in thousands)	Loans, including fees
Total interest income (expense) amounts presented in the consolidated statements of income	$	1,600,462

Gain (loss) on cash flow hedging relationships: (1)
Interest rate contracts:
Realized gains (losses) reclassified from AOCI, pre-tax, to interest income on loans	2,765
Pre-tax income (loss) recognized on cash flow hedges	$	2,765

(1) See "Part II - Item 8. Financial Statements and Supplementary Data - Note 9 - Shareholders' Equity and Other Comprehensive Income" in this Report for additional information.

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.


	December 31, 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	$	(1,680,000)	$	24,227	$	—	—
Long-term debt	(545,787)		19,348		—		—

Effect of Fair Value Hedges on the 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 years ended December 31, 2022, 2021 and 2020 is presented below.


		Gain (Loss) Recognized in Consolidated Statements of Income
		For The Years Ended December 31,
(in thousands)	Location in Consolidated Statements of Income	2022		2021		2020
Derivatives not designated as hedging instruments:
Interest rate contracts(1)	Capital markets income	$	1,570	$	100	$	(777)
Mortgage derivatives - interest rate lock commitments	Mortgage banking income	(1,756)		(4,154)		4,969
Mortgage derivatives - forward commitments to sell fixed-rate mortgage loans	Mortgage banking income	277		1,489		(1,443)
Risk participation agreements	Capital markets income	33		269		(213)
Foreign exchange contracts	Capital markets income	(555)		39		—
Visa derivative	Other non-interest expense	(6,000)		(2,656)		(890)
Total derivatives not designated as hedging instruments		$	(6,431)	$	(4,913)	$	1,646

(1) Gain (loss) represents net fair value adjustments (including credit related adjustments) for client swaps. Additionally, losses related to termination of client swaps of $2.5 million were recorded in other non-interest expense during 2020.