Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of AOCI balances for the three months ended March 31, 2022 and 2021:



($ in thousands)	Debt Securities			Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
Balance, January 1, 2021	$	52,247		$	(1,230)	$	(6,692)	$	44,325
Net unrealized (losses) gains arising during the period	(133,313)			305		(1,349)		(134,357)
Amounts reclassified from AOCI	(135)			127		—		(8)
Changes, net of tax	(133,448)			432		(1,349)		(134,365)
Balance, March 31, 2021	$	(81,201)		$	(798)	$	(8,041)	$	(90,040)

Balance, January 1, 2022	$	(85,703)		$	257	$	(4,935)	$	(90,381)
Net unrealized (losses) gains arising during the period	(281,361)			(23,227)		129		(304,459)
Amounts reclassified from AOCI	1,411			(1,496)		—		(85)
Changes, net of tax	(279,950)			(24,723)		129		(304,544)
Balance, March 31, 2022	$	(365,653)	(2)	$	(24,466)	$	(4,806)	$	(394,925)

(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.

(2)Includes after-tax unamortized losses of $113.0 million related to AFS debt securities that were transferred to HTM. For further information, refer to Note 5 — Securities to the Consolidated Financial Statements in this Form 10-Q.

The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three months ended March 31, 2022 and 2021:



($ in thousands)	Three Months Ended March 31,
	2022						2021
	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized losses arising during the period	$	(399,462)	$	118,101	$	(281,361)	$	(189,276)	$	55,963	$	(133,313)
Reclassification adjustments:
Net realized (gains) reclassified into net income (1)	(1,278)		378		(900)		(192)		57		(135)
Amortization of unrealized losses on transferred securities (2)	3,281		(970)		2,311		—		—		—
Net change	(397,459)		117,509		(279,950)		(189,468)		56,020		(133,448)
Cash flow hedges:
Net unrealized (losses) gains arising during the period	(32,609)		9,382		(23,227)		426		(121)		305
Net realized (gains) losses reclassified into net income (3)	(2,100)		604		(1,496)		177		(50)		127
Net change	(34,709)		9,986		(24,723)		603		(171)		432
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period	(322)		451		129		(1,309)		(40)		(1,349)
Net change	(322)		451		129		(1,309)		(40)		(1,349)
Other comprehensive income	$	(432,490)	$	127,946	$	(304,544)	$	(190,174)	$	55,809	$	(134,365)

(1)For the three months ended March 31, 2022 and 2021, pre-tax amounts were reported in Gains on sales of AFS debt securities on the Consolidated Statement of Income.

(2)Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio.

(3)For the three months ended March 31, 2022 and 2021, pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income.