Derivatives (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional and Fair Values of Derivatives

	December 31, 2023								December 31, 2022
			Fair Value								Fair Value
($ in thousands)	Notional Amount		Assets			Liabilities			Notional Amount		Assets			Liabilities
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate contracts	$	5,250,000	$	50,421		$	13,124		$	3,450,000	$	13,455		$	19,687
Net investment hedges:
Foreign exchange contracts	81,480		3,394			—			84,832		5,590			—
Total derivatives designated as hedging instruments	$	5,331,480	$	53,815		$	13,124		$	3,534,832	$	19,045		$	19,687
Derivatives not designated as hedging instruments:
Interest rate contracts	$	17,387,909	$	423,486		$	420,812		$	16,932,414	$	426,828		$	564,829
Commodity contracts (1)	—		79,604			121,670			—		261,613			258,608
Foreign exchange contracts	5,827,149		53,678			42,564			2,982,891		47,519			44,117
Credit contracts (2)	118,391		1			25			140,950		—			23
Equity contracts	—		336		(3)	15,119		(4)	—		323		(3)	—
Total derivatives not designated as hedging instruments	$	23,333,449	$	557,105		$	600,190		$	20,056,255	$	736,283		$	867,577
Gross derivative assets/liabilities			$	610,920		$	613,314				$	755,328		$	887,264
Less: Master netting agreements			(75,534)			(75,534)					(242,745)			(242,745)
Less: Cash collateral received/paid			(237,258)			(636)					(372,038)			—
Net derivative assets/liabilities			$	298,128		$	537,144				$	140,545		$	644,519

(1)The notional amount of the Company’s commodity contracts totaled 18,631 thousand barrels of crude oil and 328,844 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of December 31, 2023. In comparison, the notional amount of the Company’s commodity contracts totaled 12,005 thousand barrels of crude oil and 247,704 thousand MMBTUs of natural gas as of December 31, 2022.

(2)Notional amount for credit contracts reflects the Company’s pro-rata share of the derivative instruments in RPAs.

(3)The Company held equity contracts in 11 private companies and one public company as of December 31, 2023, and 13 private companies and one public company as of December 31, 2022.

(4)Equity contracts classified as derivative liabilities consist of 349,138 performance-based RSUs granted as part of EWBC’s consideration in its investment in Rayliant.

The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives entered into with customers and with third-party financial institutions as economic hedges to customers’ positions as of December 31, 2023 and 2022:

	December 31, 2023						December 31, 2022
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Assets		Liabilities		Notional Amount		Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	6,835,822	$	25,649	$	377,388	$	6,656,491	$	1,438	$	521,719
Written options	1,522,531		—		12,756		1,548,158		—		30,904
Collars and corridors	322,732		440		4,481		215,773		—		8,924
Subtotal	8,681,085		26,089		394,625		8,420,422		1,438		561,547
Foreign exchange contracts:
Forwards and spot	956,618		9,466		6,756		993,588		17,009		18,090
Swaps	1,588,491		5,801		18,118		623,143		6,629		12,178
Other	136,000		1,839		—		121,631		2,070		245
Subtotal	2,681,109		17,106		24,874		1,738,362		25,708		30,513
Total	$	11,362,194	$	43,195	$	419,499	$	10,158,784	$	27,146	$	592,060
Other economic hedges:
Interest rate contracts:
Swaps	$	6,861,561	$	380,123	$	25,731	$	6,683,828	$	384,201	$	2,047
Purchased options	1,522,531		12,783		—		1,580,275		32,233		—
Written options	—		—		—		32,117		—		1,235
Collars and corridors	322,732		4,491		456		215,772		8,956		—
Subtotal	8,706,824		397,397		26,187		8,511,992		425,390		3,282
Foreign exchange contracts:
Forwards and spot	148,003		292		94		77,998		3,050		87
Swaps	2,862,037		36,280		15,757		1,044,900		18,516		11,447
Other	136,000		—		1,839		121,631		245		2,070
Subtotal	3,146,040		36,572		17,690		1,244,529		21,811		13,604
Total	$	11,852,864	$	433,969	$	43,877	$	9,756,521	$	447,201	$	16,886

The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and other economic hedges as of December 31, 2023 and 2022:

	December 31, 2023						December 31, 2022
			Fair Value						Fair Value
($ in thousands)	Notional Units		Assets		Liabilities		Notional Units		Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	3,277	Barrels	$	3,735	$	15,445	2,465	Barrels	$	39,955	$	6,178
Collars	5,966	Barrels	1,820		5,103		3,011	Barrels	16,038		2,630
Written options	—	Barrels	—		—		—	Barrels	558		—
Subtotal	9,243	Barrels	5,555		20,548		5,476	Barrels	56,551		8,808
Natural gas:
Swaps	118,325	MMBTUs	438		73,793		92,590	MMBTUs	112,314		73,208
Collars	45,854	MMBTUs	21		20,400		32,072	MMBTUs	2,217		18,317
Written options	1,874	MMBTUs	—		233		—	MMBTUs	—		—
Subtotal	166,053	MMBTUs	459		94,426		124,662	MMBTUs	114,531		91,525
Total			$	6,014	$	114,974			$	171,082	$	100,333
Other economic hedges:
Commodity contracts:
Crude oil:
Swaps	3,422	Barrels	$	9,166	$	4,924	2,587	Barrels	$	6,935	$	36,060
Collars	5,966	Barrels	1,685		1,467		3,942	Barrels	1,378		12,856
Purchased options	—	Barrels	—		—		—	Barrels	—		516
Subtotal	9,388	Barrels	10,851		6,391		6,529	Barrels	8,313		49,432
Natural gas:
Swaps	116,463	MMBTUs	49,941		305		91,900	MMBTUs	69,767		106,883
Collars	44,454	MMBTUs	12,565		—		31,142	MMBTUs	12,451		1,960
Purchased options	1,874	MMBTUs	233		—		—	MMBTUs	—		—
Subtotal	162,791	MMBTUs	62,739		305		123,042	MMBTUs	82,218		108,843
Total			$	73,590	$	6,696			$	90,531	$	158,275

Schedule of Pre-Tax Changes in AOCI from Cash Flows Hedges

The following table presents the pre-tax changes in AOCI from cash flow hedges for the years ended December 31, 2023, 2022 and 2021. The after-tax impact of cash flow hedges on AOCI is shown in Note 15 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form 10-K.

	Year Ended December 31,
($ in thousands)	2023			2022		2021
(Losses) gains recognized in AOCI:
Interest rate contracts	$	(5,767)		$	(74,069)	$	1,210
Gains (losses) reclassified from AOCI into earnings:
Interest expense (for cash flow hedges on borrowings)	$	696		$	3,200	$	(868)
Interest and dividend income (for cash flow hedges on loans)	(82,153)			(7,204)		—
Noninterest income	1,614		(1)	—		—
Total	$	(79,843)		$	(4,004)	$	(868)

(1)Represents the amounts in AOCI reclassified into earnings as a result that the forecasted cash flows were no longer probable to occur.

Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)

The following table presents the pre-tax gains (losses) recognized in AOCI on net investment hedges for the years ended December 31, 2023, 2022 and 2021:

	Year Ended December 31,
($ in thousands)	2023		2022		2021
Gains (losses) recognized in AOCI	$	2,571	$	4,509	$	(4,558)

Schedule of Net Gains (Losses) Recognized on the Consolidated Statements of Income Related to Derivatives not Designated as Hedging Instruments

The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the years ended December 31, 2023, 2022 and 2021:

	Classification on Consolidated Statement of Income	Year Ended December 31,
($ in thousands)		2023		2022		2021
Derivatives not designated as hedging instruments:
Interest rate contracts	Customer derivative income	$	(2,989)	$	13,905	$	11,493
Foreign exchange contracts	Foreign exchange income	52,817		13,799		45,921
Credit contracts	Customer derivative income	(1)		118		139
Equity contracts - warrants	Lending fees	13		151		382
Commodity contracts	Customer derivative income	(25)		48		(58)
Net gains		$	49,815	$	28,021	$	57,877

Schedule of Gross Derivative Fair Values, the Balance Sheet Netting Adjustments and Net Fair Values on the Consolidated Balance Sheets, As Well As the Cash and Non-Cash Collateral

The following tables present the gross derivative fair values, the balance sheet netting adjustments, and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of overcollateralization are not shown:

($ in thousands)	As of December 31, 2023
	Gross Amounts Recognized (1)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)
Derivative assets	$	610,920	$	(75,534)	$	(237,258)	$	298,128	$	(246,259)	$	51,869
	Gross Amounts Recognized (2)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)
Derivative liabilities	$	613,314	$	(75,534)	$	(636)	$	537,144	$	—	$	537,144

($ in thousands)	As of December 31, 2022
	Gross Amounts Recognized (1)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)
Derivative assets	$	755,328	$	(242,745)	$	(372,038)	$	140,545	$	(60,567)	$	79,978
	Gross Amounts Recognized (2)		Gross Amounts Offset on the Consolidated Balance Sheet				Net Amounts Presented on the Consolidated Balance Sheet		Gross Amounts Not Offset on the Consolidated Balance Sheet		Net Amount
			Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)
Derivative liabilities	$	887,264	$	(242,745)	$	—	$	644,519	$	(38,438)	$	606,081

(1)Includes $3 million and $2 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2023 and 2022, respectively.

(2)Includes $16 million and $1 million of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2023 and 2022, respectively.

(3)Gross cash collateral received under master netting arrangements or similar agreements were $244 million and $385 million as of December 31, 2023 and 2022, respectively. Of the gross cash collateral received, $237 million and $372 million were used to offset against derivative assets as of December 31, 2023 and 2022, respectively.

(4)Gross cash collateral pledged under master netting arrangements or similar agreements were $1 million and $490 thousand as of December 31, 2023 and 2022, respectively. Of the gross cash collateral pledged, $1 million was used to offset against derivative liabilities as of December 31, 2023. In comparison, no cash collateral was used to offset against derivative liabilities as of December 31, 2022.

(5)Represents the fair value of security collateral received or pledged limited to derivative assets or liabilities that are subject to enforceable master netting arrangements or similar agreements. U.S. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires disclosure of such amounts.