Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in the components of AOCI balances for the three and six months ended June 30, 2022 and 2021:



($ in thousands)	Debt Securities			Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
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)

Balance, April 1, 2022	$	(365,653)	(2)	$	(24,466)	$	(4,806)	$	(394,925)
Net unrealized losses arising during the period	(192,858)			(5,582)		(10,215)		(208,655)
Amounts reclassified from AOCI	3,730			(798)		—		2,932
Changes, net of tax	(189,128)			(6,380)		(10,215)		(205,723)
Balance, June 30, 2022	$	(554,781)		$	(30,846)	$	(15,021)	$	(600,648)



($ 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	(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)

Balance, January 1, 2022	$	(85,703)		$	257	$	(4,935)	$	(90,381)
Net unrealized losses arising during the period	(474,219)			(28,809)		(10,086)		(513,114)
Amounts reclassified from AOCI	5,141			(2,294)		—		2,847
Changes, net of tax	(469,078)			(31,103)		(10,086)		(510,267)
Balance, June 30, 2022	$	(554,781)	(2)	$	(30,846)	$	(15,021)	$	(600,648)

(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 tables present 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, 2022 and 2021:



($ in thousands)	Three Months Ended June 30,
	2022						2021
	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized (losses) gains arising during the period	$	(273,840)	$	80,982	$	(192,858)	$	104,283	$	(30,789)	$	73,494
Reclassification adjustments:
Net realized (gains) reclassified into net income (1)	(28)		8		(20)		(632)		187		(445)
Amortization of unrealized losses on transferred securities (2)	5,324		(1,574)		3,750		—		—		—
Net change	(268,544)		79,416		(189,128)		103,651		(30,602)		73,049
Cash flow hedges:
Net unrealized (losses) gains arising during the period	(7,837)		2,255		(5,582)		(106)		30		(76)
Net realized (gains) losses reclassified into net income (3)	(1,120)		322		(798)		201		(57)		144
Net change	(8,957)		2,577		(6,380)		95		(27)		68
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period	(9,278)		(937)		(10,215)		1,584		650		2,234
Net change	(9,278)		(937)		(10,215)		1,584		650		2,234
Other comprehensive (loss) income	$	(286,779)	$	81,056	$	(205,723)	$	105,330	$	(29,979)	$	75,351



($ in thousands)	Six Months Ended June 30,
	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	$	(673,302)	$	199,083	$	(474,219)	$	(84,993)	$	25,174	$	(59,819)
Reclassification adjustments:
Net realized (gains) reclassified into net income (1)	(1,306)		386		(920)		(824)		244		(580)
Amortization of unrealized losses on transferred securities (2)	8,605		(2,544)		6,061		—		—		—
Net change	(666,003)		196,925		(469,078)		(85,817)		25,418		(60,399)
Cash flow hedges:
Net unrealized (losses) gains arising during the period	(40,446)		11,637		(28,809)		320		(91)		229
Net realized (gains) losses reclassified into net income (3)	(3,220)		926		(2,294)		378		(107)		271
Net change	(43,666)		12,563		(31,103)		698		(198)		500
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period	(9,600)		(486)		(10,086)		275		610		885
Net change	(9,600)		(486)		(10,086)		275		610		885
Other comprehensive loss	$	(719,269)	$	209,002	$	(510,267)	$	(84,844)	$	25,830	$	(59,014)

(1)For the three and six months ended June 30, 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 and six months ended June 30, 2022 and 2021, pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income.