Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2021 and 2020:



($ in thousands)	AFS Debt Securities		Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
Balance, July 1, 2020	$	42,850	$	(1,333)	$	(18,383)	$	23,134
Net unrealized gains arising during the period	5,126		25		5,459		10,610
Amounts reclassified from AOCI	(492)		62		—		(430)
Changes, net of tax	4,634		87		5,459		10,180
Balance, September 30, 2020	$	47,484	$	(1,246)	$	(12,924)	$	33,314

Balance, July 1, 2021	$	(8,152)	$	(730)	$	(5,807)	$	(14,689)
Net unrealized losses arising during the period	(40,928)		(121)		(1,752)		(42,801)
Amounts reclassified from AOCI	(250)		172		—		(78)
Changes, net of tax	(41,178)		51		(1,752)		(42,879)
Balance, September 30, 2021	$	(49,330)	$	(679)	$	(7,559)	$	(57,568)



($ 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	58,262		(1,038)		3,065		60,289
Amounts reclassified from AOCI	(8,359)		(208)		—		(8,567)
Changes, net of tax	49,903		(1,246)		3,065		51,722
Balance, September 30, 2020	$	47,484	$	(1,246)	$	(12,924)	$	33,314

Balance, January 1, 2021	$	52,247	$	(1,230)	$	(6,692)	$	44,325
Net unrealized (losses) gains arising during the period	(100,747)		108		(867)		(101,506)
Amounts reclassified from AOCI	(830)		443		—		(387)
Changes, net of tax	(101,577)		551		(867)		(101,893)
Balance, September 30, 2021	$	(49,330)	$	(679)	$	(7,559)	$	(57,568)

(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 nine months ended September 30, 2021 and 2020:



($ in thousands)	Three Months Ended September 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	$	(58,138)	$	17,210	$	(40,928)	$	7,304	$	(2,178)	$	5,126
Net realized (gains) reclassified into net income (1)	(354)		104		(250)		(698)		206		(492)
Net change	(58,492)		17,314		(41,178)		6,606		(1,972)		4,634
Cash flow hedges:
Net unrealized (losses) gains arising during the period	(170)		49		(121)		34		(9)		25
Net realized losses reclassified into net income (2)	241		(69)		172		87		(25)		62
Net change	71		(20)		51		121		(34)		87
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period	(1,878)		126		(1,752)		4,419		1,040		5,459
Net change	(1,878)		126		(1,752)		4,419		1,040		5,459
Other comprehensive (loss) income	$	(60,299)	$	17,420	$	(42,879)	$	11,146	$	(966)	$	10,180



($ in thousands)	Nine Months Ended September 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	$	(143,131)	$	42,384	$	(100,747)	$	82,767	$	(24,505)	$	58,262
Net realized (gains) reclassified into net income (1)	(1,178)		348		(830)		(11,867)		3,508		(8,359)
Net change	(144,309)		42,732		(101,577)		70,900		(20,997)		49,903
Cash flow hedges:
Net unrealized gains (losses) arising during the period	150		(42)		$	108	(1,449)		411		(1,038)
Net realized losses (gains) reclassified into net income (2)	619		(176)		443		(290)		82		(208)
Net change	769		(218)		551		(1,739)		493		(1,246)
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period	(1,603)		736		(867)		2,274		791		3,065
Net change	(1,603)		736		(867)		2,274		791		3,065
Other comprehensive (loss) income	$	(145,143)	$	43,250	$	(101,893)	$	71,435	$	(19,713)	$	51,722

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