EAST WEST BANCORP INC
For the period ended Sep 30, 2026. Filed Nov 6, 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.
Sep 30, 2026 · Filed Nov 6, 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 for the three and nine months ended September 30, 2026 and 2025:
| ($ in thousands) | Debt Securities (1) | Cash Flow Hedges | Foreign Currency Translation Adjustments (2) | Total |
|---|---|---|---|---|
| Balance, July 1, 2025 | $(466,566) | $28,622 | $(24,436) | $(462,380) |
| Net unrealized gains (losses) arising during the period | 76,760 | (2,355) | 2,074 | 76,479 |
| Amounts reclassified from AOCI | 6,187 | 4,157 | — | 10,344 |
| Changes, net of tax | 82,947 | 1,802 | 2,074 | 86,823 |
| Balance, September 30, 2025 | $(383,619) | $30,424 | $(22,362) | $(375,557) |
| Balance, July 1, 2026 | $(396,324) | $(4,637) | $(12,825) | $(413,786) |
| Net unrealized (losses) gains arising during the period | (458,697) | (37,792) | 2,552 | (493,937) |
| Amounts reclassified from AOCI | 2,322 | (294) | — | 2,028 |
| Changes, net of tax | (456,375) | (38,086) | 2,552 | (491,909) |
| Balance, September 30, 2026 | $(852,699) | $(42,723) | $(10,273) | $(905,695) |
| ($ 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 | 149,063 | 38,015 | (41) | 187,037 |
| Amounts reclassified from AOCI | 9,470 | 13,196 | — | 22,666 |
| Changes, net of tax | 158,533 | 51,211 | (41) | 209,703 |
| Balance, September 30, 2025 | $(383,619) | $30,424 | $(22,362) | $(375,557) |
| Balance, January 1, 2026 | $(353,232) | $28,209 | $(20,587) | $(345,610) |
| Net unrealized (losses) gains arising during the period | (504,221) | (69,694) | 10,314 | (563,601) |
| Amounts reclassified from AOCI | 4,754 | (1,238) | — | 3,516 |
| Changes, net of tax | (499,467) | (70,932) | 10,314 | (560,085) |
| Balance, September 30, 2026 | $(852,699) | $(42,723) | $(10,273) | $(905,695) |
(1)Includes after-tax unamortized losses on AFS debt securities transferred to HTM in 2022.
(2)Represents foreign currency translation adjustments associated with the Company’s net investment in non-U.S. operations.
The following tables present the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and nine months ended September 30, 2026 and 2025:
| Three Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||
| ($ 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 | $(651,223) | $192,526 | $(458,697) | $98,241 | $(21,481) | $76,760 |
| Reclassification adjustments: | ||||||
| Net realized (gains) losses on AFS debt securities reclassified into net income (1) | (290) | 86 | (204) | 2,943 | (858) | 2,085 |
| Amortization of unrealized losses on transferred securities (2) | 3,587 | (1,061) | 2,526 | 3,785 | 317 | 4,102 |
| Net change | (647,926) | 191,551 | (456,375) | 104,969 | (22,022) | 82,947 |
| Cash flow hedges: | ||||||
| Net unrealized losses arising during the period | (53,656) | 15,864 | (37,792) | (2,658) | 303 | (2,355) |
| Net realized (gains) losses reclassified into net income (3) | (417) | 123 | (294) | 6,001 | (1,844) | 4,157 |
| Net change | (54,073) | 15,987 | (38,086) | 3,343 | (1,541) | 1,802 |
| Foreign currency translation adjustments, net of hedges: | ||||||
| Net unrealized gains arising during the period | 2,552 | — | 2,552 | 2,208 | (134) | 2,074 |
| Net change | 2,552 | — | 2,552 | 2,208 | (134) | 2,074 |
| Other comprehensive (loss) income | $(699,447) | $207,538 | $(491,909) | $110,520 | $(23,697) | $86,823 |
| Nine Months Ended September 30, | ||||||
|---|---|---|---|---|---|---|
| 2026 | 2025 | |||||
| ($ 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 | $(715,835) | $211,614 | $(504,221) | $211,737 | $(62,674) | $149,063 |
| Reclassification adjustments: | ||||||
| Net realized (gains) losses on AFS debt securities reclassified into net income (1) | (4,029) | 1,191 | (2,838) | 2,066 | (611) | 1,455 |
| Amortization of unrealized losses on transferred securities (2) | 10,779 | (3,187) | 7,592 | 11,379 | (3,364) | 8,015 |
| Net change | (709,085) | 209,618 | (499,467) | 225,182 | (66,649) | 158,533 |
| Cash flow hedges: | ||||||
| Net unrealized (losses) gains arising during the period | (98,946) | 29,252 | (69,694) | 53,536 | (15,521) | 38,015 |
| Net realized (gains) losses reclassified into net income (3) | (1,758) | 520 | (1,238) | 18,584 | (5,388) | 13,196 |
| Net change | (100,704) | 29,772 | (70,932) | 72,120 | (20,909) | 51,211 |
| Foreign currency translation adjustments, net of hedges: | ||||||
| Net unrealized gains (losses) arising during the period | 10,314 | — | 10,314 | (134) | 93 | (41) |
| Net change | 10,314 | — | 10,314 | (134) | 93 | (41) |
| Other comprehensive (loss) income | $(799,475) | $239,390 | $(560,085) | $297,168 | $(87,465) | $209,703 |
(1)Pre-tax amounts were reported in Net gains on AFS debt securities and Provision for credit losseson the Consolidated Statement of Income. See Note 4 —Securities —Realized Gains and Credit (Losses) Reversalsfor 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 floating-rate loans were reported in Interest and dividend income on the Consolidated Statement of Income.
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