Derivatives (Tables)

6 Months Ended

Jun. 30, 2025

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 June 30, 2025 and December 31, 2024. Certain derivative contracts are cleared through 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 $26 million and $23 million, respectively, as of June 30, 2025. In comparison, applying variation margin payments as settlement to LCH- and CME-cleared derivative transactions resulted in reductions in the derivative asset and liability fair values of $17 million and $15 million, respectively, as of December 31, 2024. 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.

	June 30, 2025								December 31, 2024
			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	$	4,250,000	$	41,220		$	3,131		$	5,250,000	$	5,647		$	35,211
Total derivatives designated as hedging instruments	$	4,250,000	$	41,220		$	3,131		$	5,250,000	$	5,647		$	35,211
Derivatives not designated as hedging instruments:
Interest rate contracts	$	18,059,774	$	291,498		$	291,011		$	17,005,381	$	379,664		$	378,961
Commodity contracts (1)	—		66,137			63,992			—		48,499			45,328
Foreign exchange contracts	4,821,785		68,807			63,162			5,201,460		89,083			71,254
Credit contracts (2)	210,170		17			31			168,999		1			12
Equity contracts	—		377		(3)	15,119		(4)	—		239		(3)	15,119		(4)
Total derivatives not designated as hedging instruments	$	23,091,729	$	426,836		$	433,315		$	22,375,840	$	517,486		$	510,674
Gross derivative assets/liabilities			$	468,056		$	436,446				$	523,133		$	545,885
Less: Master netting agreements			(106,741)			(106,741)					(111,124)			(111,124)
Less: Cash collateral received			(206,591)			(34,526)					(316,168)			(1,160)
Net derivative assets/liabilities			$	154,724		$	295,179				$	95,841		$	433,601

(1)The notional amount of the Company’s commodity contracts totaled 20 million barrels of crude oil and 393 million units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2025. In comparison, the notional amount of the Company’s commodity contracts totaled 21 million barrels of crude oil and 407 million MMBTUs of natural gas as of December 31, 2024.

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

(3)The Company held warrant equity contracts in nine and eight private companies as of June 30, 2025 and December 31, 2024, respectively.

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

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 June 30, 2025 and December 31, 2024:

	June 30, 2025						December 31, 2024
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Assets		Liabilities		Notional Amount		Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	7,198,709	$	44,091	$	242,575	$	6,854,372	$	11,828	$	361,256
Written options	1,588,665		—		3,215		1,458,428		—		4,953
Collars and corridors	242,513		251		204		181,039		80		440
Subtotal	9,029,887		44,342		245,994		8,493,839		11,908		366,649
Foreign exchange contracts:
Forwards and spot	940,567		26,530		8,208		996,486		11,693		24,201
Swaps	1,132,229		31,015		875		1,504,469		16,117		25,366
Written options	165,356		—		171		—		—		—
Subtotal	2,238,152		57,545		9,254		2,500,955		27,810		49,567
Total	$	11,268,039	$	101,887	$	255,248	$	10,994,794	$	39,718	$	416,216
Economic hedges and other:
Interest rate contracts:
Swaps	$	7,198,709	$	243,716	$	44,759	$	6,872,075	$	362,323	$	12,228
Purchased options	1,588,665		3,236		—		1,458,428		4,990		—
Collars and corridors	242,513		204		258		181,039		443		84
Subtotal	9,029,887		247,156		45,017		8,511,542		367,756		12,312
Foreign exchange contracts:
Forwards and spot	171,019		1,759		3,306		86,750		2,318		1,738
Swaps	2,247,258		9,324		50,594		2,613,755		58,955		19,949
Purchased options	165,356		179		8		—		—		—
Subtotal	2,583,633		11,262		53,908		2,700,505		61,273		21,687
Total	$	11,613,520	$	258,418	$	98,925	$	11,212,047	$	429,029	$	33,999

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 economic hedges as of June 30, 2025 and December 31, 2024:

	June 30, 2025						December 31, 2024
			Fair Value						Fair Value
($ and unit in thousands)	Notional Units		Assets		Liabilities		Notional Units		Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	5,230	Barrels	$	396	$	23,508	4,830	Barrels	$	4,682	$	6,874
Collars	4,766	Barrels	283		13,946		5,477	Barrels	1,604		3,362
Subtotal	9,996	Barrels	679		37,454		10,307	Barrels	6,286		10,236
Natural gas:
Swaps	117,990	MMBTUs	23,227		5,712		141,736	MMBTUs	13,095		17,708
Collars	80,566	MMBTUs	16,877		2,972		62,045	MMBTUs	6,061		4,556
Written options	1,234	MMBTUs	217		—		1,234	MMBTUs	167		—
Subtotal	199,790	MMBTUs	40,321		8,684		205,015	MMBTUs	19,323		22,264
Total			$	41,000	$	46,138			$	25,609	$	32,500
Economic hedges:
Commodity contracts:
Crude oil:
Swaps	5,230	Barrels	$	15,459	$	265	4,830	Barrels	$	4,479	$	3,893
Collars	4,766	Barrels	3,027		—		5,477	Barrels	1,547		76
Subtotal	9,996	Barrels	18,486		265		10,307	Barrels	6,026		3,969
Natural gas:
Swaps	113,333	MMBTUs	4,432		7,419		139,136	MMBTUs	13,323		5,056
Collars	78,816	MMBTUs	2,219		9,968		61,341	MMBTUs	3,541		3,650
Purchased options	1,234	MMBTUs	—		202		1,234	MMBTUs	—		153
Subtotal	193,383	MMBTUs	6,651		17,589		201,711	MMBTUs	16,864		8,859
Total			$	25,137	$	17,854			$	22,890	$	12,828

The following table presents the notional amounts and the gross fair values of RPAs sold and purchased outstanding as of June 30, 2025 and December 31, 2024:

	June 30, 2025						December 31, 2024
	Notional Amount		Fair Value				Notional Amount		Fair Value
($ in thousands)			Assets		Liabilities				Assets		Liabilities
RPAs — protection sold (1)	$	133,634	$	—	$	31	$	133,174	$	—	$	12
RPAs — protection purchased	76,536		17		—		35,825		1		—
Total RPAs	$	210,170	$	17	$	31	$	168,999	$	1	$	12

(1)All reference entities of the protection sold RPAs were investment grade. The weighted-average remaining maturities were 1.6 years as of both June 30, 2025 and December 31, 2024.

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 three and six months ended June 30, 2025 and 2024. The after-tax impact of cash flow hedges on AOCI is shown in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form 10-Q.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024
Gains (losses) recognized in AOCI:
Interest rate contracts	$	18,728	$	(25,095)	$	56,194	$	(115,471)
Losses reclassified from AOCI into earnings:
Interest and dividend income (for cash flow hedges on loans)	$	5,531	$	24,594	$	12,583	$	49,199

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

The following table presents the pre-tax gains recognized in AOCI on net investment hedges for the three and six months ended June 30, 2025 and 2024:

	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2025		2024		2025		2024
Gains recognized in AOCI	$	—	$	—	$	—	$	586

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 three and six months ended June 30, 2025 and 2024:

		Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	Classification on Consolidated Statement of Income	2025		2024		2025		2024
Derivatives not designated as hedging instruments:
Interest rate contracts	Customer derivative (losses) income	$	(1,907)	$	1,099	$	(3,309)	$	1,583
Foreign exchange contracts	Foreign exchange income	13,787		14,349		27,025		27,129
Credit contracts	Customer derivative (losses) income	(13)		2		(3)		(3)
Equity contracts - warrants	Lending and loan servicing fees	(41)		(90)		138		(96)
Commodity contracts	Customer derivative income	476		433		398		567
Net gains		$	12,302	$	15,793	$	24,249	$	29,180

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 fair values 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 over-collateralization are not shown:

($ in thousands)	As of June 30, 2025
			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	$	468,056	$	(106,741)	$	(206,591)	$	154,724	$	(32,161)	$	122,563
			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	$	436,446	$	(106,741)	$	(34,526)	$	295,179	$	—	$	295,179

($ 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

(1)Includes $20 million and $4 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2025 and December 31, 2024, respectively.

(2)Includes $19 million and $27 million of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2025 and December 31, 2024, respectively.

(3)Gross cash collateral received under master netting arrangements or similar agreements was $213 million and $322 million as of June 30, 2025 and December 31, 2024, respectively. Of the gross cash collateral received, $207 million and $316 million were used to offset derivative assets as of June 30, 2025 and December 31, 2024, respectively.

(4)Gross cash collateral pledged under master netting arrangements or similar agreements was $38 million and $1 million as of June 30, 2025 and December 31, 2024, respectively. Of the gross cash collateral pledged, $35 million and $1 million were used to offset derivative liabilities as of June 30, 2025 and December 31, 2024, respectively.

(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 the disclosure of such amounts.