EAST WEST BANCORP INC
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 7, 2026
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12 — Accumulated Other Comprehensive Income (Loss)
Note 12 —Accumulated Other Comprehensive Income (Loss)
The following tables present the changes in the components of AOCI balances for the three and six months ended June 30, 2026 and 2025:
| ($ in thousands) | Debt Securities (1) | Cash Flow Hedges | Foreign Currency Translation Adjustments (2) | Total |
|---|---|---|---|---|
| Balance, April 1, 2025 | $(482,175) | $10,493 | $(23,333) | $(495,015) |
| Net unrealized gains (losses) arising during the period | 14,926 | 14,045 | (1,103) | 27,868 |
| Amounts reclassified from AOCI | 683 | 4,084 | — | 4,767 |
| Changes, net of tax | 15,609 | 18,129 | (1,103) | 32,635 |
| Balance, June 30, 2025 | $(466,566) | $28,622 | $(24,436) | $(462,380) |
| Balance, April 1, 2026 | $(383,752) | $12,033 | $(16,501) | $(388,220) |
| Net unrealized (losses) gains arising during the period | (13,052) | (16,137) | 3,676 | (25,513) |
| Amounts reclassified from AOCI | 480 | (533) | — | (53) |
| Changes, net of tax | (12,572) | (16,670) | 3,676 | (25,566) |
| Balance, June 30, 2026 | $(396,324) | $(4,637) | $(12,825) | $(413,786) |
| ($ in thousands) | Debt Securities (1) | Cash Flow Hedges | Foreign Currency Translation Adjustments (2) | Total |
|---|---|---|---|---|
| Balance, January 1, 2025 | $(542,152) | $(20,787) | $(22,321) | $(585,260) |
| Net unrealized gains (losses) arising during the period | 72,303 | 40,370 | (2,115) | 110,558 |
| Amounts reclassified from AOCI | 3,283 | 9,039 | — | 12,322 |
| Changes, net of tax | 75,586 | 49,409 | (2,115) | 122,880 |
| Balance, June 30, 2025 | $(466,566) | $28,622 | $(24,436) | $(462,380) |
| Balance, January 1, 2026 | $(353,232) | $28,209 | $(20,587) | $(345,610) |
| Net unrealized (losses) gains arising during the period | (45,524) | (31,902) | 7,762 | (69,664) |
| Amounts reclassified from AOCI | 2,432 | (944) | — | 1,488 |
| Changes, net of tax | (43,092) | (32,846) | 7,762 | (68,176) |
| Balance, June 30, 2026 | $(396,324) | $(4,637) | $(12,825) | $(413,786) |
(1)Includes after-tax unamortized losses related to AFS debt securities that were transferred to HTM in 2022.
(2)Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations.
The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||
| ($ in thousands) | Before-Tax | Tax Effect | Net-of-Tax | Before-Tax | Tax Effect | Net-of-Tax |
| Debt securities: | ||||||
| Net unrealized (losses) gains arising during the period | $(18,526) | $5,474 | $(13,052) | $31,958 | $(17,032) | $14,926 |
| Reclassification adjustments: | ||||||
| Net realized gains on AFS debt securities reclassified into net income (1) | (2,931) | 866 | (2,065) | (746) | 208 | (538) |
| Amortization of unrealized losses on transferred securities (2) | 3,613 | (1,068) | 2,545 | 3,772 | (2,551) | 1,221 |
| Net change | (17,844) | 5,272 | (12,572) | 34,984 | (19,375) | 15,609 |
| Cash flow hedges: | ||||||
| Net unrealized (losses) gains arising during the period | (22,908) | 6,771 | (16,137) | 18,728 | (4,683) | 14,045 |
| Net realized (gains) losses reclassified into net income (3) | (758) | 225 | (533) | 5,531 | (1,447) | 4,084 |
| Net change | (23,666) | 6,996 | (16,670) | 24,259 | (6,130) | 18,129 |
| Foreign currency translation adjustments, net of hedges: | ||||||
| Net unrealized gains (losses) arising during the period | 3,676 | — | 3,676 | (1,330) | 227 | (1,103) |
| Net change | 3,676 | — | 3,676 | (1,330) | 227 | (1,103) |
| Other comprehensive (loss) income | $(37,834) | $12,268 | $(25,566) | $57,913 | $(25,278) | $32,635 |
| Six Months Ended June 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||
| ($ in thousands) | Before-Tax | Tax Effect | Net-of-Tax | Before-Tax | Tax Effect | Net-of-Tax |
| Debt securities: | ||||||
| Net unrealized (losses) gains arising during the period | $(64,612) | $19,088 | $(45,524) | $113,496 | $(41,193) | $72,303 |
| Reclassification adjustments: | ||||||
| Net realized gains on AFS debt securities reclassified into net income (1) | (3,739) | 1,105 | (2,634) | (877) | 247 | (630) |
| Amortization of unrealized losses on transferred securities (2) | 7,192 | (2,126) | 5,066 | 7,594 | (3,681) | 3,913 |
| Net change | (61,159) | 18,067 | (43,092) | 120,213 | (44,627) | 75,586 |
| Cash flow hedges: | ||||||
| Net unrealized (losses) gains arising during the period | (45,290) | 13,388 | (31,902) | 56,194 | (15,824) | 40,370 |
| Net realized (gains) losses reclassified into net income (3) | (1,341) | 397 | (944) | 12,583 | (3,544) | 9,039 |
| Net change | (46,631) | 13,785 | (32,846) | 68,777 | (19,368) | 49,409 |
| Foreign currency translation adjustments, net of hedges: | ||||||
| Net unrealized gains (losses) arising during the period | 7,762 | — | 7,762 | (2,342) | 227 | (2,115) |
| Net change | 7,762 | — | 7,762 | (2,342) | 227 | (2,115) |
| Other comprehensive (loss) income | $(100,028) | $31,852 | $(68,176) | $186,648 | $(63,768) | $122,880 |
(1)Pre-tax amounts were reported in Net gains on AFS debt securities and Provision for Credit Losseson the Consolidated Statement of Income. Refer to Note 4 —Securities —Realized Gains and Reversal of Credit Lossesfor further details.
(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 were reported in Interest and dividend income on the Consolidated Statement of Income.
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