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Securities
 6 Months Ended
Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Securities
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 carried at fair value, as of June 30, 2018 and December 31, 2017:
 
 
 
June 30, 2018
($ in thousands)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale investment securities:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
648,271

 
$
—

 
$
(19,001
)
 
$
629,270

U.S. government agency and U.S. government sponsored enterprise debt securities
 
244,688

 
49

 
(4,695
)
 
240,042

U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
352,547

 
10

 
(15,320
)
 
337,237

Residential mortgage-backed securities
 
958,173

 
1,920

 
(23,646
)
 
936,447

Municipal securities
 
74,596

 
206

 
(1,183
)
 
73,619

Non-agency residential mortgage-backed securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
8,004

 
—

 
(169
)
 
7,835

Corporate debt securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
11,250

 
—

 
(249
)
 
11,001

Foreign bonds:
 
 
 
 
 
 
 


Investment grade (1) (2)
 
489,340

 
—

 
(29,907
)
 
459,433

Asset-backed securities:
 
 
 
 
 
 
 
 
Investment grade (1)
 
12,604

 
—

 
(44
)
 
12,560

Total available-for-sale investment securities
 
$
2,799,473

 
$
2,185

 
$
(94,214
)
 
$
2,707,444

 
 
 
 
 
 
 
December 31, 2017
($ in thousands)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale investment securities:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
651,395

 
$
—

 
$
(11,115
)
 
$
640,280

U.S. government agency and U.S. government sponsored enterprise debt securities
 
206,815

 
62

 
(3,485
)
 
203,392

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


Commercial mortgage-backed securities
 
328,348

 
141

 
(9,532
)
 
318,957

Residential mortgage-backed securities
 
1,199,869

 
3,964

 
(13,562
)
 
1,190,271

Municipal securities
 
99,636

 
655

 
(309
)
 
99,982

Non-agency residential mortgage-backed securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
9,136

 
3

 
(22
)
 
9,117

Corporate debt securities:
 
 
 
 
 
 
 
 

Investment grade (1)
 
37,585

 
164

 
(746
)
 
37,003

Foreign bonds:
 
 
 
 
 
 
 
 
Investment grade (1) (2)
 
505,396

 
24

 
(19,012
)
 
486,408

Other securities (3)
 
31,887

 
—

 
(545
)
 
31,342

Total available-for-sale investment securities
 
$
3,070,067

 
$
5,013

 
$
(58,328
)
 
$
3,016,752

 
 
 
 
 
 
 
 
 
(1)
Available-for-sale investment securities rated BBB- or higher by Standard & Poor’s (“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 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 value of foreign bonds include $445.1 million and $456.1 million of multilateral development bank bonds as of June 30, 2018 and December 31, 2017, respectively.
(3)
Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, these securities were reported as available-for-sale investment securities with changes in fair value recorded through other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from Available-for-sale investment securities to Investments in tax credit and other investments, net, with changes in fair value recorded through net income.
Unrealized Losses

The following tables present the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of June 30, 2018 and December 31, 2017:
 
 
 
June 30, 2018
($ 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
 
$
192,840

 
$
(4,227
)
 
$
436,430

 
$
(14,774
)
 
$
629,270

 
$
(19,001
)
U.S. government agency and U.S. government sponsored enterprise debt securities
 
141,270

 
(3,667
)
 
86,287

 
(1,028
)
 
227,557

 
(4,695
)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
133,352

 
(3,911
)
 
189,400

 
(11,409
)
 
322,752

 
(15,320
)
Residential mortgage-backed securities
 
467,178

 
(10,405
)
 
317,707

 
(13,241
)
 
784,885

 
(23,646
)
Municipal securities
 
24,453

 
(755
)
 
8,334

 
(428
)
 
32,787

 
(1,183
)
Non-agency residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
7,835

 
(169
)
 
—

 
—

 
7,835

 
(169
)
Corporate debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
9,754

 
(246
)
 
1,247

 
(3
)
 
11,001

 
(249
)
Foreign bonds:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
76,266

 
(3,158
)
 
383,167

 
(26,749
)
 
459,433

 
(29,907
)
Asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
12,560

 
(44
)
 
—

 
—

 
12,560

 
(44
)
Total available-for-sale investment securities
 
$
1,065,508

 
$
(26,582
)
 
$
1,422,572

 
$
(67,632
)
 
$
2,488,080

 
$
(94,214
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 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
 
$
168,061

 
$
(1,005
)
 
$
472,219

 
$
(10,110
)
 
$
640,280

 
$
(11,115
)
U.S. government agency and U.S. government sponsored enterprise debt securities
 
99,935

 
(623
)
 
85,281

 
(2,862
)
 
185,216

 
(3,485
)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
113,775

 
(2,071
)
 
191,827

 
(7,461
)
 
305,602

 
(9,532
)
Residential mortgage-backed securities
 
413,621

 
(4,205
)
 
361,809

 
(9,357
)
 
775,430

 
(13,562
)
Municipal securities
 
8,490

 
(123
)
 
8,588

 
(186
)
 
17,078

 
(309
)
Non-agency residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
4,599

 
(22
)
 
—

 
—

 
4,599

 
(22
)
Corporate debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
—

 
—

 
11,905

 
(746
)
 
11,905

 
(746
)
Foreign bonds:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
103,149

 
(1,325
)
 
352,239

 
(17,687
)
 
455,388

 
(19,012
)
Other securities (1)
 
31,215

 
(545
)
 
—

 
—

 
31,215

 
(545
)
Total available-for-sale investment securities
 
$
942,845

 
$
(9,919
)
 
$
1,483,868

 
$
(48,409
)
 
$
2,426,713

 
$
(58,328
)
 

(1)
Other securities are comprised of mutual funds, which are equity securities with readily determinable fair value. Prior to the adoption of ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, these securities were reported as available-for-sale investment securities with changes in fair value recorded through other comprehensive income. Upon adoption of ASU 2016-01, which became effective January 1, 2018, these securities were reclassified from Available-for-sale investment securities, at fair value to Investments in tax credit and other investments, net, with changes in fair value recorded through net income.

Other-Than-Temporary Impairment

For each reporting period, the Company examines all individual securities that are in an unrealized loss position for Other-Than-Temporary-Impairment (“OTTI”). For a discussion of the factors and criteria the Company uses in analyzing securities for OTTI, see Note 1 — Summary of Significant Accounting Policies — Securities to the Consolidated Financial Statements of the Company’s 2017 Form 10-K.

The unrealized losses were primarily attributable to the movement in the yield curve, in addition to widened liquidity and credit spreads. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. The Company believes that the gross unrealized losses presented in the previous tables are temporary and no credit losses are expected. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, no impairment losses were recorded on the Company’s Consolidated Statement of Income for each of the three and six months ended June 30, 2018 and 2017. As of June 30, 2018, the Company had 193 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily consisting of 113 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 22 U.S. Treasury securities and 16 investment grade foreign bonds. In comparison, as of December 31, 2017, the Company had 165 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily consisting of 98 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 25 U.S. Treasury securities and 16 investment grade foreign bonds. No OTTI credit losses were recognized for each of the three and six months ended June 30, 2018 and 2017.

Realized Gains and Losses

The following table presents the proceeds, gross realized gains and tax expense related to the sales of available-for-sale investment securities for the three and six months ended June 30, 2018 and 2017:
 
($ in thousands)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
Proceeds from sales
 
$
42,085

 
$
249,233

 
$
256,875

 
$
551,889

Gross realized gains
 
$
210

 
$
2,720

 
$
2,339

 
$
5,194

Related tax expense
 
$
62

 
$
1,144

 
$
690

 
$
2,184

 


Scheduled Maturities of Investment Securities

The following table presents the scheduled maturities of available-for-sale investment securities as of June 30, 2018:
 
($ in thousands)
 
Amortized
Cost
 
Fair
Value
Due within one year
 
$
632,583

 
$
603,002

Due after one year through five years
 
697,172

 
675,324

Due after five years through ten years
 
199,008

 
194,040

Due after ten years
 
1,270,710

 
1,235,078

Total available-for-sale investment securities
 
$
2,799,473

 
$
2,707,444

 

Actual maturities of mortgage-backed securities can differ from contractual maturities as the borrowers have the right to prepay obligations. In addition, factors such as prepayments and interest rates may affect the yields on the carrying values of mortgage-backed securities.

As of June 30, 2018 and December 31, 2017, available-for-sale investment securities with fair value of $436.8 million and $534.3 million, respectively, were primarily pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law.
Restricted Equity Securities

Restricted equity securities include the FRB and the FHLB stock. Restricted equity securities are carried at cost as these securities do not have a readily determinable fair value. The following table presents the restricted equity securities as of June 30, 2018 and December 31, 2017:
 
($ in thousands)
 
June 30, 2018
 
December 31, 2017
FRB stock
 
$
56,274

 
$
56,271

FHLB stock
 
17,250

 
17,250

Total
 
$
73,524

 
$
73,521