XML 45 R28.htm IDEA: XBRL DOCUMENT v3.25.3
Derivatives (Tables)
 9 Months Ended
Sep. 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 September 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 $16 million and $9 million, respectively, as of September 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 $15 million, respectively, as of December 31, 2024. Total gross derivative asset and liability fair values are then adjusted to reflect the effects of legally enforceable master netting agreements and cash collateral received or paid. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities, respectively, on the Consolidated Balance Sheet.
September 30, 2025December 31, 2024
Fair ValueFair Value
($ in thousands)Notional AmountAssets Liabilities Notional AmountAssets Liabilities 
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate contracts$4,250,000 $42,415 $1,010 $5,250,000 $5,647 $35,211 
Derivatives not designated as hedging instruments:
Interest rate contracts$19,006,624 $270,986 $269,276 $17,005,381 $379,664 $378,961 
Commodity contracts (1)
— 48,465 55,775 — 48,499 45,328 
Foreign exchange contracts4,263,978 45,999 40,964 5,201,460 89,083 71,254 
Credit contracts (2)
210,205 17 58 168,999 1 12 
Equity contracts— 547 (3)15,119 (4)— 239 (3)15,119 (4)
Total derivatives not designated as hedging instruments$23,480,807 $366,014 $381,192 $22,375,840 $517,486 $510,674 
Gross derivative assets/liabilities$408,429 $382,202 $523,133 $545,885 
Less: Master netting agreements(86,138)(86,138)(111,124)(111,124)
Less: Cash collateral received(186,381)(21,016)(316,168)(1,160)
Net derivative assets/liabilities$135,910 $275,048 $95,841 $433,601 
(1)The notional amount of the Company’s commodity contracts totaled 19 million barrels of crude oil and 364 million units of natural gas, measured in million British thermal units (“MMBTUs”) as of September 30, 2025. In comparison, the notional amount of the Company’s commodity contracts totaled 21 million barrels of crude oil and 407 million MMBTUs of natural gas as of December 31, 2024.
(2)The notional amount for the credit contracts reflects the Company’s pro-rata share of the notional amount in the underlying derivative instruments in RPAs.
(3)The Company held warrant equity contracts in nine and eight private companies as of September 30, 2025 and December 31, 2024, respectively.
(4)Equity contracts classified as derivative liabilities consist of 349 thousand performance-based RSUs granted as part of EWBC’s consideration in an investment.
The following table presents the notional amounts and the gross fair values of the interest rate and foreign exchange derivatives entered into with customers and with third-party financial institutions as economic hedges to customers’ positions as of September 30, 2025 and December 31, 2024:
September 30, 2025December 31, 2024
Fair ValueFair Value
($ in thousands)Notional AmountAssetsLiabilitiesNotional AmountAssetsLiabilities
Customer-related positions:
Interest rate contracts:
Swaps$7,526,652 $51,303 $215,703 $6,854,372 $11,828 $361,256 
Written options1,519,006 — 1,942 1,458,428 — 4,953 
Collars and corridors457,654 483 96 181,039 80 440 
Subtotal9,503,312 51,786 217,741 8,493,839 11,908 366,649 
Foreign exchange contracts:
Forwards and spot990,408 21,036 3,101 996,486 11,693 24,201 
Swaps830,798 15,555 2,406 1,504,469 16,117 25,366 
Written options
76,120 — 152 — — — 
Subtotal1,897,326 36,591 5,659 2,500,955 27,810 49,567 
Total$11,400,638 $88,377 $223,400 $10,994,794 $39,718 $416,216 
Economic hedges and other:
Interest rate contracts:
Swaps$7,526,652 $217,149 $51,010 $6,872,075 $362,323 $12,228 
Purchased options1,519,006 1,955 — 1,458,428 4,990 — 
Collars and corridors457,654 96 525 181,039 443 84 
Subtotal9,503,312 219,200 51,535 8,511,542 367,756 12,312 
Foreign exchange contracts:
Forwards and spot212,499 1,621 3,761 86,750 2,318 1,738 
Swaps2,078,033 7,635 31,544 2,613,755 58,955 19,949 
Purchased options
76,120 152 — — — — 
Subtotal2,366,652 9,408 35,305 2,700,505 61,273 21,687 
Total$11,869,964 $228,608 $86,840 $11,212,047 $429,029 $33,999 
The Company enters into energy commodity contracts with its customers in the oil and gas sector, which allow them to hedge against the risk of fluctuation in energy commodity prices. Offsetting contracts entered with third-party financial institutions are used as economic hedges to manage the Company’s exposure on its customer-related positions. The following table presents the notional amounts in units and the gross fair values of the commodity derivatives issued for customer-related positions and economic hedges as of September 30, 2025 and December 31, 2024:
September 30, 2025December 31, 2024
Fair ValueFair Value
($ and unit in thousands)Notional UnitsAssetsLiabilitiesNotional UnitsAssetsLiabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps4,839 Barrels$293 $20,392 4,830 Barrels$4,682 $6,874 
Collars4,836 Barrels699 9,154 5,477 Barrels1,604 3,362 
Subtotal9,675 Barrels992 29,546 10,307 Barrels6,286 10,236 
Natural gas:
Swaps103,622 MMBTUs9,516 12,452 141,736 MMBTUs13,095 17,708 
Collars81,030 MMBTUs4,940 5,535 62,045 MMBTUs6,061 4,556 
Written options611 MMBTUs113 — 1,234 MMBTUs167 — 
Subtotal185,263 MMBTUs14,569 17,987 205,015 MMBTUs19,323 22,264 
Total$15,561 $47,533 $25,609 $32,500 
Economic hedges:
Commodity contracts:
Crude oil:
Swaps4,839 Barrels$16,094 $155 4,830 Barrels$4,479 $3,893 
Collars4,836 Barrels4,307 73 5,477 Barrels1,547 76 
Subtotal9,675 Barrels20,401 228 10,307 Barrels6,026 3,969 
Natural gas:
Swaps99,105 MMBTUs8,655 5,076 139,136 MMBTUs13,323 5,056 
Collars79,310 MMBTUs3,848 2,833 61,341 MMBTUs3,541 3,650 
Purchased options611 MMBTUs— 105 1,234 MMBTUs— 153 
Subtotal179,026 MMBTUs12,503 8,014 201,711 MMBTUs16,864 8,859 
Total$32,904 $8,242 $22,890 $12,828 
The following table presents the notional amounts and the gross fair values of RPAs sold and purchased outstanding as of September 30, 2025 and December 31, 2024:
September 30, 2025December 31, 2024
Notional Amount
Fair Value
Notional Amount
Fair Value
($ in thousands)
AssetsLiabilitiesAssetsLiabilities
RPAs — protection sold (1)
$146,126 $— $58 $133,174 $— $12 
RPAs — protection purchased
64,079 17 — 35,825 1 — 
Total RPAs$210,205 $17 $58 $168,999 $1 $12 
(1)All reference entities of the protection sold RPAs were investment grade. The weighted-average remaining maturities were 2.3 years and 1.6 years as of September 30, 2025 and December 31, 2024, respectively.
Schedule of Pre-Tax Changes in AOCI from Cash Flows Hedges
The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and nine months ended September 30, 2025 and 2024. The after-tax impact of cash flow hedges on AOCI is shown in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form 10-Q.
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2025202420252024
(Losses) gains recognized in AOCI:
Interest rate contracts$(2,658)$93,842 $53,536 $(21,629)
Losses reclassified from AOCI into earnings:
Interest and dividend income (for cash flow hedges on loans)$6,001 $24,272 $18,584 $73,471 
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) The following table presents the pre-tax gains recognized in AOCI on net investment hedges for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2025202420252024
Gains recognized in AOCI$— $— $— $586 
Schedule of Net Gains (Losses) Recognized on the Consolidated Statements of Income Related to Derivatives not Designated as Hedging Instruments
The following table presents the net gains (losses) due to fair value changes that are recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)Classification on Consolidated Statement of Income2025202420252024
Derivatives not designated as hedging instruments:
Interest rate contracts
Customer derivative income (loss), net of mark-to-market adjustments
$(414)$(4,577)$(3,723)$(2,994)
Foreign exchange contractsForeign exchange income13,576 6,075 40,601 33,204 
Credit contracts
Customer derivative income (loss), net of mark-to-market adjustments
(27)(17)(30)(20)
Equity contracts - warrants
Lending and loan servicing fees
170 (8)308 (104)
Commodity contracts
Customer derivative income (loss), net of mark-to-market adjustments
123 114 521 681 
Net gains$13,428 $1,587 $37,677 $30,767 
Schedule of Gross Derivative Fair Values, the Balance Sheet Netting Adjustments and Net Fair Values on the Consolidated Balance Sheets, As Well As the Cash and Non-Cash Collateral
The following tables present the gross derivative fair values, the balance sheet netting adjustments, and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross fair values of derivative assets and liabilities are presented after the application of variation margin payments as settlements to the fair values of contracts cleared through central clearing organizations, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability. Therefore, instances of over-collateralization are not shown:
($ in thousands)As of September 30, 2025
Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance SheetGross 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$408,429 $(86,138)$(186,381)$135,910 $(37,522)$98,388 
Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance SheetGross 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$382,202 $(86,138)$(21,016)$275,048 $— $275,048 
($ in thousands)As of December 31, 2024
Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Presented on the Consolidated Balance SheetGross 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 SheetNet Amounts Presented on the Consolidated Balance SheetGross 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 $9 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 September 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 September 30, 2025 and December 31, 2024, respectively.
(3)Gross cash collateral received under master netting arrangements or similar agreements was $194 million and $322 million as of September 30, 2025 and December 31, 2024, respectively. Of the gross cash collateral received, $186 million and $316 million were used to offset derivative assets as of September 30, 2025 and December 31, 2024, respectively.
(4)Gross cash collateral pledged under master netting arrangements or similar agreements was $21 million and $1 million as of September 30, 2025 and December 31, 2024, respectively. Of the gross cash collateral pledged, $21 million and $1 million were used to offset derivative liabilities as of September 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.