Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of the changes in components of accumulated other comprehensive income (loss) balances

The following table presents the changes in the components of AOCI balances for the three and six months ended June 30, 2021 and 2020:



($ in thousands)	AFS Debt Securities		Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
Balance, April 1, 2020	$	25,034	$	—	$	(18,153)	$	6,881
Net unrealized gains (losses) arising during the period	24,606		(1,063)		(230)		23,313
Amounts reclassified from AOCI	(6,790)		(270)		—		(7,060)
Changes, net of tax	17,816		(1,333)		(230)		16,253
Balance, June 30, 2020	$	42,850	$	(1,333)	$	(18,383)	$	23,134

Balance, April 1, 2021	$	(81,201)	$	(798)	$	(8,041)	$	(90,040)
Net unrealized gains (losses) arising during the period	73,494		(76)		2,234		75,652
Amounts reclassified from AOCI	(445)		144		—		(301)
Changes, net of tax	73,049		68		2,234		75,351
Balance, June 30, 2021	$	(8,152)	$	(730)	$	(5,807)	$	(14,689)



($ in thousands)	AFS Debt Securities		Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
Balance, January 1, 2020	$	(2,419)	$	—	$	(15,989)	$	(18,408)
Net unrealized gains (losses) arising during the period	53,136		(1,063)		(2,394)		49,679
Amounts reclassified from AOCI	(7,867)		(270)		—		(8,137)
Changes, net of tax	45,269		(1,333)		(2,394)		41,542
Balance, June 30, 2020	$	42,850	$	(1,333)	$	(18,383)	$	23,134

Balance, January 1, 2021	$	52,247	$	(1,230)	$	(6,692)	$	44,325
Net unrealized (losses) gains arising during the period	(59,819)		229		885		(58,705)
Amounts reclassified from AOCI	(580)		271		—		(309)
Changes, net of tax	(60,399)		500		885		(59,014)
Balance, June 30, 2021	$	(8,152)	$	(730)	$	(5,807)	$	(14,689)

(1)Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively.

Schedule of components of other comprehensive income (loss), reclassifications to net income and the related tax effects

The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and six months ended June 30, 2021 and 2020:



($ in thousands)	Three Months Ended June 30,
	2021						2020
	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
AFS debt securities:
Net unrealized gains arising during the period	$	104,283	$	(30,789)	$	73,494	$	34,970	$	(10,364)	$	24,606
Net realized (gains) reclassified into net income (1)	(632)		187		(445)		(9,640)		2,850		(6,790)
Net change	103,651		(30,602)		73,049		25,330		(7,514)		17,816
Cash flow hedges:
Net unrealized losses arising during the period	(106)		30		(76)		(1,483)		420		(1,063)
Net realized losses (gains) reclassified into net income (2)	201		(57)		144		(377)		107		(270)
Net change	95		(27)		68		(1,860)		527		(1,333)
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	1,584		650		2,234		(379)		149		(230)
Net change	1,584		650		2,234		(379)		149		(230)
Other comprehensive income	$	105,330	$	(29,979)	$	75,351	$	23,091	$	(6,838)	$	16,253



($ in thousands)	Six Months Ended June 30,
	2021						2020
	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
AFS debt securities:
Net unrealized (losses) gains arising during the period	$	(84,993)	$	25,174	$	(59,819)	$	75,463	$	(22,327)	$	53,136
Net realized (gains) reclassified into net income (1)	(824)		244		(580)		(11,169)		3,302		(7,867)
Net change	(85,817)		25,418		(60,399)		64,294		(19,025)		45,269
Cash flow hedges:
Net unrealized gains (losses) arising during the period	320		(91)		$	229	(1,483)		420		(1,063)
Net realized losses (gains) reclassified into net income (2)	378		(107)		271		(377)		107		(270)
Net change	698		(198)		500		(1,860)		527		(1,333)
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	275		610		885		(2,145)		(249)		(2,394)
Net change	275		610		885		(2,145)		(249)		(2,394)
Other comprehensive (loss) income	$	(84,844)	$	25,830	$	(59,014)	$	60,289	$	(18,747)	$	41,542

(1)For the three and six months ended June 30, 2021 and 2020, pre-tax amounts were reported in Gains on sales of AFS debt securities on the Consolidated Statement of Income.

(2)For the three and six months ended June 30, 2021 and 2020, pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income.