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Securities (Tables)
 6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Schedule of amortized cost, gross unrealized gains, gross unrealized losses and fair value by major categories of investment securities
The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of available-for-sale investment securities, which are carried at fair value, and the held-to-maturity investment security, which is carried at amortized cost, as of June 30, 2017 and December 31, 2016:
 
 
 
As of June 30, 2017
($ in thousands)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale investment securities:
 
 

 
 

 
 

 
 

U.S. Treasury securities
 
$
553,795

 
$
—

 
$
(6,938
)
 
$
546,857

U.S. government agency and U.S. government sponsored enterprise debt securities
 
176,037

 
203

 
(2,655
)
 
173,585

U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 

 
 

 
 

 
 

Commercial mortgage-backed securities
 
331,288

 
592

 
(6,736
)
 
325,144

Residential mortgage-backed securities
 
1,130,303

 
5,685

 
(7,457
)
 
1,128,531

Municipal securities
 
104,991

 
915

 
(404
)
 
105,502

Non-agency residential mortgage-backed securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
10,262

 
14

 
(66
)
 
10,210

Corporate debt securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
2,472

 
—

 
(176
)
 
2,296

Non-investment grade (1)
 
10,191

 
—

 
(699
)
 
9,492

Foreign bonds:
 
 
 
 
 
 
 


Investment grade (1) (2)
 
495,397

 
252

 
(15,962
)
 
479,687

Other securities
 
40,688

 
1,070

 
(337
)
 
41,421

Total available-for-sale investment securities
 
$
2,855,424

 
$
8,731

 
$
(41,430
)
 
$
2,822,725

Held-to-maturity investment security:
 
 
 
 
 
 
 
 
Non-agency commercial mortgage-backed security
 
$
121,131

 
$
672

 
$
—

 
$
121,803

Total investment securities
 
$
2,976,555

 
$
9,403

 
$
(41,430
)
 
$
2,944,528

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
($ in thousands)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale investment securities:
 
 

 
 

 
 

 
 

U.S. Treasury securities
 
$
730,287

 
$
21

 
$
(9,829
)
 
$
720,479

U.S. government agency and U.S. government sponsored enterprise debt securities
 
277,891

 
224

 
(3,249
)
 
274,866

U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 

 
 

 
 

 
 

Commercial mortgage-backed securities
 
272,672

 
345

 
(6,218
)
 
266,799

Residential mortgage-backed securities
 
1,266,372

 
3,924

 
(11,549
)
 
1,258,747

Municipal securities
 
148,302

 
1,252

 
(1,900
)
 
147,654

Non-agency residential mortgage-backed securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
11,592

 
—

 
(115
)
 
11,477

Corporate debt securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
222,190

 
562

 
(375
)
 
222,377

Non-investment grade (1)
 
10,191

 
—

 
(1,018
)
 
9,173

Foreign bonds:
 
 
 
 
 
 
 
 
Investment grade (1) (2)
 
405,443

 
30

 
(21,579
)
 
383,894

Other securities
 
40,501

 
337

 
(509
)
 
40,329

Total available-for-sale investment securities
 
$
3,385,441

 
$
6,695

 
$
(56,341
)
 
$
3,335,795

Held-to-maturity investment security:
 
 
 
 
 
 
 
 
Non-agency commercial mortgage-backed security
 
$
143,971

 
$
622

 
$
—

 
$
144,593

Total investment securities
 
$
3,529,412

 
$
7,317

 
$
(56,341
)
 
$
3,480,388

 
 
 
 
 
 
 
 
 
(1)
Available-for-sale investment securities rated BBB- or higher by S&P or Baa3 or higher by Moody’s are considered investment grade.  Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade. Classifications are based on the lower of the credit ratings by S&P or Moody’s.
(2)
Fair values of foreign bonds include $449.4 million and $353.6 million of multilateral development bank bonds as of June 30, 2017 and December 31, 2016, respectively.
Schedule of gross unrealized losses and related fair value of investment securities
The following tables present the gross unrealized losses and related fair values of the Company’s investment portfolio, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2017 and December 31, 2016:
 
 
 
As of June 30, 2017
($ in thousands)
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
Available-for-sale investment securities:
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Treasury securities
 
$
536,842

 
$
(6,932
)
 
$
10,014

 
$
(6
)
 
$
546,856

 
$
(6,938
)
U.S. government agency and U.S. government sponsored enterprise debt securities
 
134,583

 
(2,655
)
 
—

 
—

 
134,583

 
(2,655
)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial mortgage-backed securities
 
213,675

 
(5,521
)
 
48,309

 
(1,215
)
 
261,984

 
(6,736
)
Residential mortgage-backed securities
 
423,711

 
(4,904
)
 
124,052

 
(2,553
)
 
547,763

 
(7,457
)
Municipal securities
 
17,652

 
(312
)
 
2,795

 
(92
)
 
20,447

 
(404
)
Non-agency residential mortgage-backed securities:
 
 

 
 

 
 

 
 

 
 

 
 

Investment grade
 
4,742

 
(66
)
 
—

 
—

 
4,742

 
(66
)
Corporate debt securities:
 
 

 
 

 
 

 
 

 
 

 
 

Investment grade
 
—

 
—

 
2,296

 
(176
)
 
2,296

 
(176
)
Non-investment grade
 
—

 
—

 
9,492

 
(699
)
 
9,492

 
(699
)
Foreign bonds:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
299,434

 
(10,570
)
 
104,541

 
(5,392
)
 
403,975

 
(15,962
)
Other securities
 
31,194

 
(337
)
 
—

 
—

 
31,194

 
(337
)
Total available-for-sale investment securities
 
$
1,661,833

 
$
(31,297
)
 
$
301,499

 
$
(10,133
)
 
$
1,963,332

 
$
(41,430
)
Held-to-maturity investment security:
 
 
 
 
 
 
 
 
 
 
 
 
Non-agency commercial mortgage-backed security
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Total investment securities
 
$
1,661,833

 
$
(31,297
)
 
$
301,499

 
$
(10,133
)
 
$
1,963,332

 
$
(41,430
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2016
($ in thousands)
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
Available-for-sale investment securities:
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Treasury securities
 
$
670,268

 
$
(9,829
)
 
$
—

 
$
—

 
$
670,268

 
$
(9,829
)
U.S. government agency and U.S. government sponsored enterprise debt securities
 
203,901

 
(3,249
)
 
—

 
—

 
203,901

 
(3,249
)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 

 
 

Commercial mortgage-backed securities
 
202,106

 
(5,452
)
 
29,201

 
(766
)
 
231,307

 
(6,218
)
Residential mortgage-backed securities
 
629,324

 
(9,594
)
 
119,603

 
(1,955
)
 
748,927

 
(11,549
)
Municipal securities
 
57,655

 
(1,699
)
 
2,692

 
(201
)
 
60,347

 
(1,900
)
Non-agency residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 

 
 

Investment grade
 
5,033

 
(101
)
 
6,444

 
(14
)
 
11,477

 
(115
)
Corporate debt securities:
 
 
 
 
 
 
 
 
 
 

 
 

Investment grade
 
—

 
—

 
71,667

 
(375
)
 
71,667

 
(375
)
Non-investment grade
 
—

 
—

 
9,173

 
(1,018
)
 
9,173

 
(1,018
)
Foreign bonds:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
363,618

 
(21,327
)
 
14,258

 
(252
)
 
377,876

 
(21,579
)
Other securities
 
30,991

 
(509
)
 
—

 
—

 
30,991

 
(509
)
Total available-for-sale investment securities
 
$
2,162,896

 
$
(51,760
)
 
$
253,038

 
$
(4,581
)
 
$
2,415,934

 
$
(56,341
)
Held-to-maturity investment security:
 
 
 
 
 
 
 
 
 
 
 
 
Non-agency commercial mortgage-backed security
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Total investment securities
 
$
2,162,896

 
$
(51,760
)
 
$
253,038

 
$
(4,581
)
 
$
2,415,934

 
$
(56,341
)
 
Schedule of the proceeds, gross realized gains and losses, and tax expense related to the sales of available-for-sale investment securities
The following table presents the proceeds, gross realized gains and losses, and tax expense related to the sales of available-for-sale investment securities for the three and six months ended June 30, 2017 and 2016:
 
($ in thousands)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Proceeds from sales
 
$
249,233

 
$
211,990

 
$
551,889

 
$
864,743

Gross realized gains
 
$
2,720

 
$
2,836

 
$
5,194

 
$
6,803

Gross realized losses
 
$
—

 
$
—

 
$
—

 
$
(125
)
Related tax expense
 
$
1,144

 
$
1,192

 
$
2,184

 
$
2,808

 
Schedule of maturities of investment securities
The following table presents the scheduled maturities of available-for-sale investment securities as of June 30, 2017:
 
($ in thousands)
 
Amortized
Cost
 
Estimated
Fair Value
Due within one year
 
$
482,138

 
$
469,865

Due after one year through five years
 
804,701

 
794,668

Due after five years through ten years
 
185,889

 
182,964

Due after ten years
 
1,382,696

 
1,375,228

Total available-for-sale investment securities
 
$
2,855,424

 
$
2,822,725

 

The following table presents the scheduled maturity of the held-to-maturity investment security as of June 30, 2017:
 
($ in thousands)
 
Amortized
Cost
 
Estimated
Fair Value
Due after ten years
 
$
121,131

 
$
121,803

 
Schedule of restricted equity securities
The following table presents the restricted equity securities as of June 30, 2017 and December 31, 2016:
 
 
 
 
 
($ in thousands)
 
June 30, 2017
 
December 31, 2016
Federal Reserve Bank stock
 
$
55,923

 
$
55,525

FHLB stock
 
17,250

 
17,250

Total
 
$
73,173

 
$
72,775