Accumulated Other Comprehensive (Loss) Income

9 Months Ended

Sep. 30, 2024

Accumulated Other Comprehensive (Loss) Income

The following tables present the changes in the components of AOCI balances for the three and nine months ended September 30, 2024 and 2023:



($ in thousands)	Debt Securities (1)		Cash Flow Hedges		Foreign Currency Translation Adjustments (2)		Total
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)

Balance, July 1, 2024	$	(591,286)	$	(44,059)	$	(18,828)	$	(654,173)
Net unrealized gains (losses) arising during the period	132,130		66,105		(1,126)		197,109
Amounts reclassified from AOCI	2,663		17,097		—		19,760
Changes, net of tax	134,793		83,202		(1,126)		216,869
Balance, September 30, 2024	$	(456,493)	$	39,143	$	(19,954)	$	(437,304)



($ 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 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)

Balance, January 1, 2024	$	(601,881)	$	2,624	$	(21,339)	$	(620,596)
Net unrealized gains (losses) arising during the period	138,621		(15,235)		1,385		124,771
Amounts reclassified from AOCI	6,767		51,754		—		58,521
Changes, net of tax	145,388		36,519		1,385		183,292
Balance, September 30, 2024	$	(456,493)	$	39,143	$	(19,954)	$	(437,304)

(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 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, 2024 and 2023:



	Three Months Ended September 30,
	2024						2023
($ in thousands)	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	$	187,578	$	(55,448)	$	132,130	$	(103,183)	$	30,492	$	(72,691)
Reclassification adjustments:
Net realized gains on AFS debt securities reclassified into net income (1)	(145)		43		(102)		—		—		—
Amortization of unrealized losses on transferred debt securities (2)	3,926		(1,161)		2,765		4,075		(1,205)		2,870
Net change	191,359		(56,566)		134,793		(99,108)		29,287		(69,821)
Cash flow hedges:
Net unrealized gains (losses) arising during the period	93,842		(27,737)		66,105		(62,715)		18,368		(44,347)
Net realized losses reclassified into net income (3)	24,272		(7,175)		17,097		24,059		(7,046)		17,013
Net change	118,114		(34,912)		83,202		(38,656)		11,322		(27,334)
Foreign currency translation adjustments, net of hedges:
Net unrealized (losses) gains arising during the period	(1,126)		—		(1,126)		3,728		(18)		3,710
Net change	(1,126)		—		(1,126)		3,728		(18)		3,710
Other comprehensive income (loss)	$	308,347	$	(91,478)	$	216,869	$	(134,036)	$	40,591	$	(93,445)



	Nine Months Ended September 30,
	2024						2023
($ in thousands)	Before-Tax		Tax Effect		Net-of-Tax		Before-Tax			Tax Effect		Net-of-Tax
Debt securities:
Net unrealized gains (losses) arising during the period	$	196,717	$	(58,096)	$	138,621	$	(102,262)		$	30,228	$	(72,034)
Reclassification adjustments:
Net realized (gains) losses on AFS debt securities reclassified into net income (1)	(1,979)		585		(1,394)		10,000		(4)	(2,956)		7,044
Amortization of unrealized losses on transferred securities (2)	11,587		(3,426)		8,161		11,994			(3,546)		8,448
Net change	206,325		(60,937)		145,388		(80,268)			23,726		(56,542)
Cash flow hedges:
Net unrealized losses arising during the period	(21,629)		6,394		(15,235)		(129,329)			37,861		(91,468)
Net realized losses reclassified into net income (3)	73,471		(21,717)		51,754		54,955			(16,095)		38,860
Net change	51,842		(15,323)		36,519		(74,374)			21,766		(52,608)
Foreign currency translation adjustments, net of hedges:
Net unrealized gains arising during the period	1,558		(173)		1,385		247			(845)		(598)
Net change	1,558		(173)		1,385		247			(845)		(598)
Other comprehensive income (loss)	$	259,725	$	(76,433)	$	183,292	$	(154,395)		$	44,647	$	(109,748)

(1)Pre-tax amounts were reported in Net gains (losses) on 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 in 2022.

(3)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.

(4)Represents the loss related to an AFS debt security that was written off in the first quarter of 2023.