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Securities
 12 Months Ended
Dec. 31, 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 as of December 31, 2018 and 2017:
 
($ in thousands)
 
December 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale investment securities:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
577,561

 
$
153

 
$
(12,899
)
 
$
564,815

U.S. government agency and U.S. government sponsored enterprise debt securities
 
219,485

 
382

 
(2,694
)
 
217,173

U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
420,486

 
811

 
(12,694
)
 
408,603

Residential mortgage-backed securities
 
957,219

 
4,026

 
(14,552
)
 
946,693

Municipal securities
 
82,965

 
87

 
(1,032
)
 
82,020

Non-agency mortgage-backed securities:
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
 
 
 
 
 
 
 
Investment grade (1)
 
25,826

 
226

 
—

 
26,052

Residential mortgage-backed securities
 
 
 
 
 
 
 
 

Investment grade (1)
 
10,109

 
7

 
(185
)
 
9,931

Corporate debt securities:
 
 
 
 
 
 
 
 
Investment grade (1)
 
11,250

 
—

 
(381
)
 
10,869

Foreign bonds:
 
 
 
 
 
 
 
 
Investment grade (1) (2)
 
489,378

 
—

 
(26,330
)
 
463,048

Asset-backed securities:
 
 
 
 
 
 
 
 
Investment grade (1)
 
12,621

 
22

 
—

 
12,643

Total available-for-sale investment securities
 
$
2,806,900

 
$
5,714

 
$
(70,767
)
 
$
2,741,847

 
 
 
 
 
 
 
 
 
 
($ in thousands)
 
December 31, 2017
 
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 mortgage-backed securities:
 
 
 
 
 
 
 
 
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)
 
505,396

 
24

 
(19,012
)
 
486,408

Other securities (2)
 
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 and 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 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)
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 in 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, on the Consolidated Balance Sheet with changes in fair value recorded in net income.

Unrealized Losses

The following tables present the fair value and the associated gross unrealized losses of the Company’s available-for-sale investment securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position, as of December 31, 2018 and 2017:
 
($ in thousands)
 
December 31, 2018
 
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
 
$
—

 
$
—

 
$
516,520

 
$
(12,899
)
 
$
516,520

 
$
(12,899
)
U.S. government agency and U.S. government sponsored enterprise debt securities
 
22,755

 
(238
)
 
159,814

 
(2,456
)
 
182,569

 
(2,694
)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
26,886

 
(245
)
 
274,666

 
(12,449
)
 
301,552

 
(12,694
)
Residential mortgage-backed securities
 
75,675

 
(491
)
 
653,660

 
(14,061
)
 
729,335

 
(14,552
)
Municipal securities
 
9,458

 
(104
)
 
30,295

 
(928
)
 
39,753

 
(1,032
)
Non-agency mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
3,067

 
(19
)
 
3,949

 
(166
)
 
7,016

 
(185
)
Corporate debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
 
10,869

 
(381
)
 
—

 
—

 
10,869

 
(381
)
Foreign bonds:
 
 
 
 
 
 
 
 
 


 


Investment grade
 
14,418

 
(40
)
 
448,630

 
(26,290
)
 
463,048

 
(26,330
)
Total available-for-sale investment securities
 
$
163,128

 
$
(1,518
)
 
$
2,087,534

 
$
(69,249
)
 
$
2,250,662

 
$
(70,767
)
 
 
($ in thousands)
 
December 31, 2017
 
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 mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
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 in 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, on the Consolidated Balance Sheet with changes in fair value recorded in net income.

Other-Than-Temporary Impairment

For each reporting period, the Company assesses individual securities that are in an unrealized loss position for 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 — Significant Accounting Policies — Securities to the Consolidated Financial Statements.

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. The Company has the intent to hold these securities through the anticipated recovery period and it is not more likely than not that the Company will have to sell these securities before recovery of their amortized cost. Accordingly, no impairment losses were recorded on the Company’s Consolidated Statement of Income for the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018, the Company had 184 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily consisting of 108 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 16 investment grade foreign bonds and 19 U.S. Treasury securities. 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 the years ended December 31, 2018, 2017 and 2016.

Realized Gains and Losses

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 years ended December 31, 2018, 2017 and 2016:
 
 
 
Year Ended December 31,
($ in thousands)
 
2018
 
2017
 
2016
Proceeds from sales
 
$
364,270

 
$
832,844

 
$
1,275,645

Gross realized gains
 
$
2,535

 
$
8,037

 
$
10,487

Gross realized losses
 
$
—

 
$
—

 
$
125

Related tax expense
 
$
749

 
$
3,380

 
$
4,357

 


Scheduled Maturities of Investment Securities

The following table presents the scheduled maturities of available-for-sale investment securities as of December 31, 2018:
 
($ in thousands)
 
Amortized
Cost
 
Fair
Value
Due within one year
 
$
549,517

 
$
523,552

Due after one year through five years
 
676,814

 
661,868

Due after five years through ten years
 
212,093

 
209,653

Due after ten years
 
1,368,476

 
1,346,774

Total available-for-sale investment securities
 
$
2,806,900

 
$
2,741,847

 

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 December 31, 2018 and 2017, available-for-sale investment securities with fair value of $435.8 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 FRB and 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 December 31, 2018 and 2017:
 
($ in thousands)
 
December 31,
 
2018
 
2017
FRB stock
 
$
56,819

 
$
56,271

FHLB stock
 
17,250

 
17,250

Total restricted equity securities
 
$
74,069

 
$
73,521