Derivatives (Tables)

12 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional and Fair Values of Derivatives

The following table presents the notional amounts and fair values of the Company’s derivatives as of December 31, 2024 and 2023. Certain derivative contracts are cleared though central clearing organizations where variation margin is applied daily as settlement to the fair values of the contracts. The fair values are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the application of variation margin payments as settlement to fair values of contracts cleared through central clearing organizations. Applying variation margin payments as settlement to the fair values of derivative contracts cleared through the London Clearing House (“LCH”) and the Chicago Mercantile Exchange (“CME”) resulted in reductions in the derivative asset and liability fair values of $17 million and $15 million, respectively, as of December 31, 2024. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in both the derivative asset and liability fair values of $43 million as of December 31, 2023. Total derivative asset and liability fair values are adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet.

	December 31, 2024								December 31, 2023
			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	$	5,647		$	35,211		$	5,250,000	$	50,421		$	13,124
Net investment hedges:
Foreign exchange contracts	—		—			—			81,480		3,394			—
Total derivatives designated as hedging instruments	$	5,250,000	$	5,647		$	35,211		$	5,331,480	$	53,815		$	13,124
Derivatives not designated as hedging instruments:
Interest rate contracts	$	17,005,381	$	379,664		$	378,961		$	17,387,909	$	423,486		$	420,812
Commodity contracts (1)	—		48,499			45,328			—		79,604			121,670
Foreign exchange contracts	5,201,460		89,083			71,254			5,827,149		53,678			42,564
Credit contracts (2)	168,999		1			12			118,391		1			25
Equity contracts	—		239		(3)	15,119		(4)	—		336		(3)	15,119		(4)
Total derivatives not designated as hedging instruments	$	22,375,840	$	517,486		$	510,674		$	23,333,449	$	557,105		$	600,190
Gross derivative assets/liabilities			$	523,133		$	545,885				$	610,920		$	613,314
Less: Master netting agreements			(111,124)			(111,124)					(75,534)			(75,534)
Less: Cash collateral received/paid			(316,168)			(1,160)					(237,258)			(636)
Net derivative assets/liabilities			$	95,841		$	433,601				$	298,128		$	537,144

(1)The notional amount of the Company’s commodity contracts totaled 20,614 thousand barrels of crude oil and 406,726 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of December 31, 2024. In comparison, the notional amount of the Company’s commodity contracts totaled 18,631 thousand barrels of crude oil and 328,844 thousand MMBTUs of natural gas as of December 31, 2023.

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

(3)The Company held equity contracts in eight private companies and no public company as of December 31, 2024, and 11 private companies and one public company as of December 31, 2023.

(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, 2024 and 2023:

	December 31, 2024						December 31, 2023
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Assets		Liabilities		Notional Amount		Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	6,854,372	$	11,828	$	361,256	$	6,835,822	$	25,649	$	377,388
Written options	1,458,428		—		4,953		1,522,531		—		12,756
Collars and corridors	181,039		80		440		322,732		440		4,481
Subtotal	8,493,839		11,908		366,649		8,681,085		26,089		394,625
Foreign exchange contracts:
Forwards and spot	996,486		11,693		24,201		956,618		9,466		6,756
Swaps	1,504,469		16,117		25,366		1,588,491		5,801		18,118
Purchased options	—		—		—		136,000		1,839		—
Subtotal	2,500,955		27,810		49,567		2,681,109		17,106		24,874
Total	$	10,994,794	$	39,718	$	416,216	$	11,362,194	$	43,195	$	419,499
Economic hedges:
Interest rate contracts:
Swaps	$	6,872,075	$	362,323	$	12,228	$	6,861,561	$	380,123	$	25,731
Purchased options	1,458,428		4,990		—		1,522,531		12,783		—
Collars and corridors	181,039		443		84		322,732		4,491		456
Subtotal	8,511,542		367,756		12,312		8,706,824		397,397		26,187
Foreign exchange contracts:
Forwards and spot	86,750		2,318		1,738		148,003		292		94
Swaps	2,613,755		58,955		19,949		2,862,037		36,280		15,757
Written options	—		—		—		136,000		—		1,839
Subtotal	2,700,505		61,273		21,687		3,146,040		36,572		17,690
Total	$	11,212,047	$	429,029	$	33,999	$	11,852,864	$	433,969	$	43,877

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 its customers and entered for economic hedges as of December 31, 2024 and 2023:

	December 31, 2024						December 31, 2023
			Fair Value						Fair Value
(Amounts in thousands)	Notional Units		Assets		Liabilities		Notional Units		Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	4,830	Barrels	$	4,682	$	6,874	3,277	Barrels	$	3,735	$	15,445
Collars	5,477	Barrels	1,604		3,362		5,966	Barrels	1,820		5,103
Subtotal	10,307	Barrels	6,286		10,236		9,243	Barrels	5,555		20,548
Natural gas:
Swaps	141,736	MMBTUs	13,095		17,708		118,325	MMBTUs	438		73,793
Collars	62,045	MMBTUs	6,061		4,556		45,854	MMBTUs	21		20,400
Written options	1,234	MMBTUs	167		—		1,874	MMBTUs	—		233
Subtotal	205,015	MMBTUs	19,323		22,264		166,053	MMBTUs	459		94,426
Total			$	25,609	$	32,500			$	6,014	$	114,974
Economic hedges:
Commodity contracts:
Crude oil:
Swaps	4,830	Barrels	$	4,479	$	3,893	3,422	Barrels	$	9,166	$	4,924
Collars	5,477	Barrels	1,547		76		5,966	Barrels	1,685		1,467
Subtotal	10,307	Barrels	6,026		3,969		9,388	Barrels	10,851		6,391
Natural gas:
Swaps	139,136	MMBTUs	13,323		5,056		116,463	MMBTUs	49,941		305
Collars	61,341	MMBTUs	3,541		3,650		44,454	MMBTUs	12,565		—
Purchased options	1,234	MMBTUs	—		153		1,874	MMBTUs	233		—
Subtotal	201,711	MMBTUs	16,864		8,859		162,791	MMBTUs	62,739		305
Total			$	22,890	$	12,828			$	73,590	$	6,696

The following table presents the notional amounts and the gross fair values of RPAs sold and purchased outstanding as of December 31, 2024 and 2023:

($ in thousands)	December 31, 2024						December 31, 2023
	Notional Amount		Fair Value				Notional Amount		Fair Value
			Assets		Liabilities				Assets		Liabilities
RPAs — protection sold (1)	$	133,174	$	—	$	12	$	93,393	$	—	$	25
RPAs — protection purchased	35,825		1		—		24,998		1		—
Total RPAs	$	168,999	$	1	$	12	$	118,391	$	1	$	25

(1)All reference entities of the protection sold RPAs were investment grade. The weighted-average remaining maturities were 1.6 years and 2.8 years as of December 31, 2024 and 2023, respectively.

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, 2024, 2023 and 2022. The after-tax impact of cash flow hedges on AOCI is shown in Note 15 — Accumulated Other Comprehensive (Loss) Income to the Consolidated Financial Statements in this Form 10-K.

	Year Ended December 31,
($ in thousands)	2024		2023			2022
Losses recognized in AOCI:
Interest rate contracts	$	(124,382)	$	(5,767)		$	(74,069)
Gains (losses) reclassified from AOCI into earnings:
Interest expense (for cash flow hedges on borrowings)	$	—	$	696		$	3,200
Interest and dividend income (for cash flow hedges on loans)	(91,083)		(82,153)			(7,204)
Noninterest income	—		1,614		(1)	—
Total	$	(91,083)	$	(79,843)		$	(4,004)

(1)Represents the amounts in AOCI reclassified into earnings resulting from forecasted cash flows that 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, 2024, 2023 and 2022:

	Year Ended December 31,
($ in thousands)	2024		2023		2022
Gains recognized in AOCI	$	586	$	2,571	$	4,509

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) due to fair value changes that are recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the years ended December 31, 2024, 2023 and 2022:

		Year Ended December 31,
($ in thousands)	Classification on Consolidated Statement of Income	2024		2023		2022
Derivatives not designated as hedging instruments:
Interest rate contracts	Customer derivative income	$	549	$	(2,989)	$	13,905
Foreign exchange contracts	Foreign exchange income	54,073		52,817		13,799
Credit contracts	Customer derivative income	—		(1)		118
Equity contracts - warrants	Lending fees	(97)		13		151
Commodity contracts	Customer derivative income	929		(25)		48
Net gains		$	55,454	$	49,815	$	28,021

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 counterparty clearing houses, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of over-collateralization are not shown:

($ in thousands)	As of December 31, 2024
			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
	Gross Amounts Recognized (1)		Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)		Net Amount
Derivative assets	$	523,133	$	(111,124)	$	(316,168)	$	95,841	$	(55,222)	$	40,619
			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
	Gross Amounts Recognized (2)		Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)		Net Amount
Derivative liabilities	$	545,885	$	(111,124)	$	(1,160)	$	433,601	$	—	$	433,601

($ in thousands)	As of December 31, 2023
			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
	Gross Amounts Recognized (1)		Master Netting Arrangements		Cash Collateral Received (3)				Security Collateral Received (5)		Net Amount
Derivative assets	$	610,920	$	(75,534)	$	(237,258)	$	298,128	$	(246,259)	$	51,869
			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
	Gross Amounts Recognized (2)		Master Netting Arrangements		Cash Collateral Pledged (4)				Security Collateral Pledged (5)		Net Amount
Derivative liabilities	$	613,314	$	(75,534)	$	(636)	$	537,144	$	—	$	537,144

(1)Includes $4 million and $3 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2024 and 2023, respectively.

(2)Includes $27 million and $16 million of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of December 31, 2024 and 2023, respectively.

(3)Gross cash collateral received under master netting arrangements or similar agreements were $322 million and $244 million as of December 31, 2024 and 2023, respectively. Of the gross cash collateral received, $316 million and $237 million were used to offset against derivative assets as of December 31, 2024 and 2023, respectively.

(4)Gross cash collateral pledged under master netting arrangements or similar agreements were $1 million as of both December 31, 2024 and 2023. Of the gross cash collateral pledged, $1 million cash collateral was used to offset against derivative liabilities as of both December 31, 2024 and 2023.

(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.