Derivatives (Tables)

3 Months Ended

Mar. 31, 2026

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 March 31, 2026 and December 31, 2025. 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 $14 million and $34 million, respectively, as of March 31, 2026. 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 $16 million and $3 million, respectively, as of December 31, 2025. 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.



	March 31, 2026								December 31, 2025
			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	$	22,611		$	5,319		$	4,250,000	$	39,997		$	139



Derivatives not designated as hedging instruments:
Interest rate contracts	$	18,386,728	$	245,137		$	243,178		$	18,987,277	$	258,561		$	256,731
Commodity contracts (1)	—		146,385			122,088			—		66,022			72,158
Foreign exchange contracts	4,869,406		55,603			49,991			4,550,101		44,340			43,160
Credit contracts (2)	348,244		16			129			303,421		25			51
Equity contracts	—		583		(3)	13,046		(4)	—		522		(3)	13,734		(4)
Total derivatives not designated as hedging instruments	$	23,604,378	$	447,724		$	428,432		$	23,840,799	$	369,470		$	385,834
Gross derivative assets/liabilities			$	470,335		$	433,751				$	409,467		$	385,973
Less: Master netting agreements			(111,845)			(111,845)					(74,138)			(74,138)
Less: Cash collateral received			(170,048)			(17,540)					(183,387)			(27,502)
Net derivative assets/liabilities			$	188,442		$	304,366				$	151,942		$	284,333

(1)The notional amount of the Company’s commodity contracts totaled 19 million barrels of crude oil and 280 million units of natural gas, measured in million British thermal units (“MMBTUs”) as of March 31, 2026. In comparison, the notional amount of the Company’s commodity contracts totaled 16 million barrels of crude oil and 364 million MMBTUs of natural gas as of December 31, 2025.

(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 credit risk participation agreements (“RPAs”).

(3)The Company held warrant equity contracts in nine private companies as of both March 31, 2026 and December 31, 2025.

(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 interest rate and foreign exchange derivatives entered into with customers and with third-party financial institutions, which serve as economic hedges to customers’ positions, as of March 31, 2026 and December 31, 2025:



	March 31, 2026						December 31, 2025
			Fair Value						Fair Value
($ in thousands)	Notional Amount		Assets		Liabilities		Notional Amount		Assets		Liabilities
Customer-related positions:
Interest rate contracts:
Swaps	$	7,535,710	$	29,626	$	209,641	$	7,566,889	$	47,448	$	206,794
Written options	1,298,056		—		3,093		1,463,110		—		1,900
Collars and corridors	340,632		53		312		444,604		311		20
Subtotal	9,174,398		29,679		213,046		9,474,603		47,759		208,714
Foreign exchange contracts:
Forwards and spot	1,322,892		21,382		9,419		1,156,203		23,661		2,831
Swaps	831,485		9,187		5,435		785,956		13,272		661
Written options	64,561		—		2,276		63,460		—		73
Subtotal	2,218,938		30,569		17,130		2,005,619		36,933		3,565
Total	$	11,393,336	$	60,248	$	230,176	$	11,480,222	$	84,692	$	212,279
Economic hedges and other:
Interest rate contracts:
Swaps	$	7,573,642	$	212,016	$	30,074	$	7,604,959	$	208,860	$	47,682
Purchased options	1,298,056		3,130		—		1,463,110		1,922		—

Collars and corridors	340,632		312		58		444,605		20		335
Subtotal	9,212,330		215,458		30,132		9,512,674		210,802		48,017
Foreign exchange contracts:
Forwards and spot	236,106		3,863		4,712		234,278		1,602		3,498
Swaps	2,637,352		18,893		28,147		2,246,744		5,718		36,083
Purchased options	64,561		2,278		2		63,460		87		14
Subtotal	2,938,019		25,034		32,861		2,544,482		7,407		39,595
Total	$	12,150,349	$	240,492	$	62,993	$	12,057,156	$	218,209	$	87,612

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 March 31, 2026 and December 31, 2025:



	March 31, 2026						December 31, 2025
			Fair Value						Fair Value
($ and unit in thousands)	Notional Units		Assets		Liabilities		Notional Units		Assets		Liabilities
Customer-related positions:
Commodity contracts:
Crude oil:
Swaps	6,244	Barrels	$	66,760	$	2,410	4,255	Barrels	$	205	$	28,533
Collars	3,035	Barrels	49,575		—		3,747	Barrels	21		13,622

Subtotal	9,279	Barrels	116,335		2,410		8,002	Barrels	226		42,155
Natural gas:
Swaps	89,873	MMBTUs	5,014		24,534		112,599	MMBTUs	5,814		18,403
Collars	51,497	MMBTUs	1,078		7,068		71,945	MMBTUs	1,879		6,693

Subtotal	141,370	MMBTUs	6,092		31,602		184,544	MMBTUs	7,693		25,096
Total			$	122,427	$	34,012			$	7,919	$	67,251
Economic hedges:
Commodity contracts:
Crude oil:
Swaps	6,244	Barrels	$	1,523	$	53,380	4,255	Barrels	$	25,309	$	11
Collars	3,035	Barrels	—		29,529		3,747	Barrels	8,724		21

Subtotal	9,279	Barrels	1,523		82,909		8,002	Barrels	34,033		32
Natural gas:
Swaps	88,528	MMBTUs	18,314		4,325		110,506	MMBTUs	18,258		3,963
Collars	50,287	MMBTUs	4,121		842		68,965	MMBTUs	5,812		912

Subtotal	138,815	MMBTUs	22,435		5,167		179,471	MMBTUs	24,070		4,875
Total			$	23,958	$	88,076			$	58,103	$	4,907

The following table presents the notional amounts and the gross fair values of RPAs sold and purchased outstanding as of March 31, 2026 and December 31, 2025:



	March 31, 2026						December 31, 2025
	Notional Amount		Fair Value				Notional Amount		Fair Value
($ in thousands)			Assets		Liabilities				Assets		Liabilities
RPAs — protection sold (1)	$	178,620	$	—	$	129	$	133,756	$	—	$	51
RPAs — protection purchased	169,624		16		—		169,665		25		—
Total RPAs	$	348,244	$	16	$	129	$	303,421	$	25	$	51

(1)All reference entities of the protection sold RPAs were investment grade. The weighted-average remaining maturities were 3.5 years and 2.7 years as of March 31, 2026 and December 31, 2025, 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 months ended March 31, 2026 and 2025. The after-tax impact of cash flow hedges on AOCI is shown in Note 12 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form 10-Q.



	Three Months Ended March 31,
($ in thousands)	2026		2025
(Losses) gains recognized in AOCI:
Interest rate contracts	$	(22,382)	$	37,466


(Gains) losses reclassified from AOCI into earnings:

Interest and dividend income (for cash flow hedges on loans)	$	(583)	$	7,052

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 months ended March 31, 2026 and 2025:



		Three Months Ended March 31,
($ in thousands)	Classification on Consolidated Statement of Income	2026		2025
Derivatives not designated as hedging instruments:
Interest rate contracts	Customer derivative income and derivative mark-to-market adjustments	$	1,247	$	(1,402)
Credit contracts	Customer derivative income and derivative mark-to-market adjustments	(87)		10
Commodity contracts	Customer derivative income and derivative mark-to-market adjustments	(226)		(78)
Total derivative mark-to-market and credit valuation adjustments	Customer derivative income and derivative mark-to-market adjustments	934		(1,470)
Foreign exchange contracts	Foreign exchange income	14,338		13,238
Equity contracts - warrants	Lending and loan servicing fees	61		179
Equity contracts - performance-based RSU	Other investment income	688		—
Net derivative gains		$	16,021	$	11,947

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 March 31, 2026
			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	$	470,335	$	(111,845)	$	(170,048)	$	188,442	$	(30,186)	$	158,256

			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	$	433,751	$	(111,845)	$	(17,540)	$	304,366	$	(26,882)	$	277,484



($ in thousands)	As of December 31, 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	$	409,467	$	(74,138)	$	(183,387)	$	151,942	$	(42,779)	$	109,163

			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	$	385,973	$	(74,138)	$	(27,502)	$	284,333	$	—	$	284,333

(1)Includes $6 million and $9 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of March 31, 2026 and December 31, 2025, respectively.

(2)Includes $19 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 March 31, 2026 and December 31, 2025, respectively.

(3)Gross cash collateral received under master netting arrangements or similar agreements were $175 million and $184 million as of March 31, 2026 and December 31, 2025, respectively. Of the gross cash collateral received, $170 million and $183 million were used to offset against derivative assets as of March 31, 2026 and December 31, 2025, respectively.

(4)Gross cash collateral pledged under master netting arrangements or similar agreements were $24 million and $29 million as of March 31, 2026 and December 31, 2025, respectively. Of the gross cash collateral pledged, $18 million and $28 million were used to offset against derivative liabilities as of March 31, 2026 and December 31, 2025, 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.