Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2024

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in the components of AOCI balances for the three months ended March 31, 2024 and 2023:



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
Balance, January 1, 2023	$	(694,815)	$	(49,531)	$	(21,283)	$	(765,629)
Net unrealized gains arising during the period	44,275		21,086		2,941		68,302
Amounts reclassified from AOCI	9,806		7,527		—		17,333
Changes, net of tax	54,081		28,613		2,941		85,635
Balance, March 31, 2023	$	(640,734)	$	(20,918)	$	(18,342)	$	(679,994)

Balance, January 1, 2024	$	(601,881)	$	2,624	$	(21,339)	$	(620,596)
Net unrealized (losses) gains arising during the period	(2,282)		(63,662)		3,822		(62,122)
Amounts reclassified from AOCI	2,653		17,332		—		19,985
Changes, net of tax	371		(46,330)		3,822		(42,137)
Balance, March 31, 2024	$	(601,510)	$	(43,706)	$	(17,517)	$	(662,733)

(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 three months ended March 31, 2024 and 2023:



	Three Months Ended March 31,
	2024						2023
($ in thousands)	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax			Tax Effect		Net-of-Tax
Debt securities:
Net unrealized (losses) gains on AFS debt securities arising during the period	$	(3,282)	$	1,000	$	(2,282)	$	62,860		$	(18,585)	$	44,275
Reclassification adjustments:
Net realized (gains) losses on AFS debt securities reclassified into net income (1)	(49)		14		(35)		10,000		(2)	(2,956)		7,044
Amortization of unrealized losses on transferred debt securities (3)	3,816		(1,128)		2,688		3,921			(1,159)		2,762
Net change	485		(114)		371		76,781			(22,700)		54,081
Cash flow hedges:
Net unrealized (losses) gains arising during the period	(90,376)		26,714		(63,662)		29,843			(8,757)		21,086
Net realized losses reclassified into net income (4)	24,605		(7,273)		17,332		10,644			(3,117)		7,527
Net change	(65,771)		19,441		(46,330)		40,487			(11,874)		28,613
Foreign currency translation adjustments, net of hedges:
Net unrealized gains arising during the period	3,995		(173)		3,822		2,626			315		2,941
Net change	3,995		(173)		3,822		2,626			315		2,941
Other comprehensive (loss) income	$	(61,291)	$	19,154	$	(42,137)	$	119,894		$	(34,259)	$	85,635

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

(2)Represents the loss related to an AFS debt security that was written off in the first 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 the first quarter of 2023, the pre-tax amount also included 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.