Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2023

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of AOCI balances for the years ended December 31, 2023, 2022 and 2021:



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, December 31, 2020	$	52,247	$	(1,230)	$	(6,692)	$	44,325



Net unrealized (losses) gains arising during the period	(136,846)		866		1,757		(134,223)
Amounts reclassified from AOCI	(1,104)		621		—		(483)
Changes, net of tax	(137,950)		1,487		1,757		(134,706)
Balance, December 31, 2021	$	(85,703)	$	257	$	(4,935)	$	(90,381)
Net unrealized losses arising during the period	(620,870)		(52,623)		(16,348)		(689,841)
Amounts reclassified from AOCI	11,758		2,835		—		14,593
Changes, net of tax	(609,112)		(49,788)		(16,348)		(675,248)
Balance, December 31, 2022	$	(694,815)	$	(49,531)	$	(21,283)	$	(765,629)
Net unrealized gains (losses) arising during the period	76,930		(4,277)		(56)		72,597
Amounts reclassified from AOCI	16,004		56,432		—		72,436
Changes, net of tax	92,934		52,155		(56)		145,033
Balance, December 31, 2023	$	(601,881)	$	2,624	$	(21,339)	$	(620,596)

(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 was RMB and USD, respectively.

The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the years ended December 31, 2023, 2022 and 2021:



	Year Ended December 31,
	2023							2022						2021
($ in thousands)	Before-Tax			Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax		Before-Tax		Tax Effect		Net-of-Tax
Debt securities:
Net unrealized gains (losses) on AFS debt securities arising during the period	$	109,216		$	(32,286)	$	76,930	$	(721,100)	$	213,221	$	(507,879)	$	(194,393)	$	57,547	$	(136,846)
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 (1)	6,862		(2)	(2,029)		4,833		(1,306)		386		(920)		(1,568)		464		(1,104)
Amortization of unrealized losses on transferred securities (3)	15,860			(4,689)		11,171		18,000		(5,322)		12,678		—		—		—
Net change	131,938			(39,004)		92,934		(864,822)		255,710		(609,112)		(195,961)		58,011		(137,950)
Cash flow hedges:
Net unrealized (losses) gains arising during the period	(5,767)			1,490		(4,277)		(74,069)		21,446		(52,623)		1,210		(344)		866
Net realized losses reclassified into net income (4)	79,843			(23,411)		56,432		4,004		(1,169)		2,835		868		(247)		621
Net change	74,076			(21,921)		52,155		(70,065)		20,277		(49,788)		2,078		(591)		1,487
Foreign currency translation adjustments, net of hedges:
Net unrealized gains (losses) arising during the period	698			(754)		(56)		(15,059)		(1,289)		(16,348)		463		1,294		1,757
Net change	698			(754)		(56)		(15,059)		(1,289)		(16,348)		463		1,294		1,757
Other comprehensive income (loss)	$	206,712		$	(61,679)	$	145,033	$	(949,946)	$	274,698	$	(675,248)	$	(193,420)	$	58,714	$	(134,706)

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

(2)Represents the net loss related to an AFS debt security that was written-off in the first quarter of 2023 and subsequently sold during the fourth quarter of 2023.

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

(4)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. In 2023, pre-tax amount also includes the terminated cash flow hedge where the forecasted cash flows were no longer probable to occur and was reported in Noninterest income on the Consolidated Statement of Income.