Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2023

Accumulated Other Comprehensive Income (Loss)

The following tables present the changes in the components of AOCI balances for the three and nine months ended September 30, 2023 and 2022:



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, July 1, 2022	$	(554,781)	$	(30,846)	$	(15,021)	$	(600,648)
Net unrealized losses arising during the period	(161,445)		(34,423)		(7,926)		(203,794)
Amounts reclassified from AOCI	3,256		1,154		—		4,410
Changes, net of tax	(158,189)		(33,269)		(7,926)		(199,384)
Balance, September 30, 2022	$	(712,970)	$	(64,115)	$	(22,947)	$	(800,032)

Balance, July 1, 2023	$	(681,536)	$	(74,805)	$	(25,591)	$	(781,932)
Net unrealized (losses) gains arising during the period	(72,691)		(44,347)		3,710		(113,328)
Amounts reclassified from AOCI	2,870		17,013		—		19,883
Changes, net of tax	(69,821)		(27,334)		3,710		(93,445)
Balance, September 30, 2023	$	(751,357)	$	(102,139)	$	(21,881)	$	(875,377)



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, January 1, 2022	$	(85,703)	$	257	$	(4,935)	$	(90,381)
Net unrealized losses arising during the period	(635,664)		(63,232)		(18,012)		(716,908)
Amounts reclassified from AOCI	8,397		(1,140)		—		7,257
Changes, net of tax	(627,267)		(64,372)		(18,012)		(709,651)
Balance, September 30, 2022	$	(712,970)	$	(64,115)	$	(22,947)	$	(800,032)

Balance, January 1, 2023	$	(694,815)	$	(49,531)	$	(21,283)	$	(765,629)
Net unrealized losses arising during the period	(72,034)		(91,468)		(598)		(164,100)
Amounts reclassified from AOCI	15,492		38,860		—		54,352
Changes, net of tax	(56,542)		(52,608)		(598)		(109,748)
Balance, September 30, 2023	$	(751,357)	$	(102,139)	$	(21,881)	$	(875,377)

(1)Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022.

(2)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 is RMB and USD, respectively.

The following tables present 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, 2023 and 2022:



	Three Months Ended September 30,
	2023						2022
($ in thousands)	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized losses on AFS debt securities arising during the period	$	(103,183)	$	30,492	$	(72,691)	$	(229,246)	$	67,801	$	(161,445)
Reclassification adjustments:

Amortization of unrealized losses on transferred debt securities (1)	4,075		(1,205)		2,870		4,623		(1,367)		3,256
Net change	(99,108)		29,287		(69,821)		(224,623)		66,434		(158,189)
Cash flow hedges:
Net unrealized losses arising during the period	(62,715)		18,368		(44,347)		(48,325)		13,902		(34,423)
Net realized losses reclassified into net income (2)	24,059		(7,046)		17,013		1,619		(465)		1,154
Net change	(38,656)		11,322		(27,334)		(46,706)		13,437		(33,269)
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	3,728		(18)		3,710		(6,676)		(1,250)		(7,926)
Net change	3,728		(18)		3,710		(6,676)		(1,250)		(7,926)
Other comprehensive loss	$	(134,036)	$	40,591	$	(93,445)	$	(278,005)	$	78,621	$	(199,384)



	Nine Months Ended September 30,
	2023							2022
($ in thousands)	Before-Tax			Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized losses on AFS debt securities arising during the period	$	(102,262)		$	30,228	$	(72,034)	$	(742,132)	$	219,459	$	(522,673)
Unrealized losses on debt securities transferred from AFS to HTM	—			—		—		(160,416)		47,425		(112,991)
Reclassification adjustments:
Net realized losses (gains) on AFS debt securities reclassified into net income (3)	10,000		(4)	(2,956)		7,044		(1,306)		386		(920)
Amortization of unrealized losses on transferred debt securities (1)	11,994			(3,546)		8,448		13,228		(3,911)		9,317
Net change	(80,268)			23,726		(56,542)		(890,626)		263,359		(627,267)
Cash flow hedges:
Net unrealized losses arising during the period	(129,329)			37,861		(91,468)		(88,771)		25,539		(63,232)
Net realized losses (gains) reclassified into net income (2)	54,955			(16,095)		38,860		(1,601)		461		(1,140)
Net change	(74,374)			21,766		(52,608)		(90,372)		26,000		(64,372)
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	247			(845)		(598)		(16,276)		(1,736)		(18,012)
Net change	247			(845)		(598)		(16,276)		(1,736)		(18,012)
Other comprehensive loss	$	(154,395)		$	44,647	$	(109,748)	$	(997,274)	$	287,623	$	(709,651)

(1)Represents unrealized losses amortized over the remaining lives of securities that were transferred from the AFS to HTM portfolio in 2022.

(2)Pre-tax amounts related to cash flow hedges on variable rate loans and long-term borrowings, where applicable, were reported in Interest and dividend income and in Interest expense, respectively, on the Consolidated Statement of Income.

(3)Pre-tax amounts were reported in Net (losses) gains on AFS debt securities on the Consolidated Statement of Income.

(4)Represents the full write-off of an impaired subordinated debt security during the first quarter of 2023.