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Securities
 12 Months Ended
Dec. 31, 2019
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 AFS investment securities as of December 31, 2019 and 2018:
 
($ in thousands)
 
December 31, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
AFS investment securities:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
177,215

 
$
—

 
$
(793
)
 
$
176,422

U.S. government agency and U.S. government sponsored enterprise debt securities
 
584,275

 
1,377

 
(4,407
)
 
581,245

U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
599,814

 
8,551

 
(4,894
)
 
603,471

Residential mortgage-backed securities
 
998,447

 
6,927

 
(1,477
)
 
1,003,897

Municipal securities
 
101,621

 
790

 
(109
)
 
102,302

Non-agency mortgage-backed securities:
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
86,609

 
1,947

 
(6
)
 
88,550

Residential mortgage-backed securities
 
46,830

 
3

 
(285
)
 
46,548

Corporate debt securities
 
11,250

 
12

 
(113
)
 
11,149

Foreign bonds
 
354,481

 
198

 
(507
)
 
354,172

Asset-backed securities
 
66,106

 
—

 
(1,354
)
 
64,752

CLOs
 
294,000

 
—

 
(9,294
)
 
284,706

Total AFS investment securities
 
$
3,320,648

 
$
19,805

 
$
(23,239
)
 
$
3,317,214

 
 
($ in thousands)
 
December 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
AFS 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
 
25,826

 
226

 
—

 
26,052

Residential mortgage-backed securities
 
10,109

 
7

 
(185
)
 
9,931

Corporate debt securities
 
11,250

 
—

 
(381
)
 
10,869

Foreign bonds
 
489,378

 
—

 
(26,330
)
 
463,048

Asset-backed securities
 
12,621

 
22

 
—

 
12,643

Total AFS investment securities
 
$
2,806,900

 
$
5,714

 
$
(70,767
)
 
$
2,741,847

 


Unrealized Losses

The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS 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, 2019 and 2018:
 
($ in thousands)
 
December 31, 2019
 
Less Than 12 Months
 
12 Months or More
 
Total
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
AFS investment securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
—

 
$
—

 
$
176,422

 
$
(793
)
 
$
176,422

 
$
(793
)
U.S. government agency and U.S. government sponsored enterprise debt securities
 
310,349

 
(4,407
)
 
—

 
—

 
310,349

 
(4,407
)
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
204,675

 
(2,346
)
 
108,314

 
(2,548
)
 
312,989

 
(4,894
)
Residential mortgage-backed securities
 
325,354

 
(1,234
)
 
34,337

 
(243
)
 
359,691

 
(1,477
)
Municipal securities
 
31,130

 
(109
)
 
—

 
—

 
31,130

 
(109
)
Non-agency mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage-backed securities
 
7,914

 
(6
)
 
—

 
—

 
7,914

 
(6
)
Residential mortgage-backed securities
 
42,894

 
(285
)
 
—

 
—

 
42,894

 
(285
)
Corporate debt securities
 
—

 
—

 
9,888

 
(113
)
 
9,888

 
(113
)
Foreign bonds
 
129,074

 
(407
)
 
9,900

 
(100
)
 
138,974

 
(507
)
Asset-backed securities
 
52,565

 
(902
)
 
12,187

 
(452
)
 
64,752

 
(1,354
)
CLOs
 
284,706

 
(9,294
)
 
—

 
—

 
284,706

 
(9,294
)
Total AFS investment securities
 
$
1,388,661

 
$
(18,990
)
 
$
351,048

 
$
(4,249
)
 
$
1,739,709

 
$
(23,239
)
 
 
($ 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
AFS 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
 
3,067

 
(19
)
 
3,949

 
(166
)
 
7,016

 
(185
)
Corporate debt securities
 
10,869

 
(381
)
 
—

 
—

 
10,869

 
(381
)
Foreign bonds
 
14,418

 
(40
)
 
448,630

 
(26,290
)
 
463,048

 
(26,330
)
Total AFS investment securities
 
$
163,128

 
$
(1,518
)
 
$
2,087,534

 
$
(69,249
)
 
$
2,250,662

 
$
(70,767
)
 

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 in this 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 because of changes in market interest rates. 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. As of December 31, 2019, the Company had 101 AFS investment securities in a gross unrealized loss position with no credit impairment, primarily consisting of three CLOs, 57 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities and 14 U.S. government agency and U.S. government sponsored enterprise debt securities. In comparison, as of December 31, 2018, the Company had 184 AFS 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 foreign bonds and 19 U.S. Treasury securities. There were no OTTI credit losses recognized for the years ended December 31, 2019, 2018 and 2017.

Realized Gains and Losses

The following table presents the proceeds, gross realized gains and losses, and tax expense related to the sales of AFS investment securities for the years ended December 31, 2019, 2018 and 2017:
 
($ in thousands)
 
Year Ended December 31,
 
2019
 
2018
 
2017
Proceeds from sales
 
$
627,110

 
$
364,270

 
$
832,844

Gross realized gains
 
$
3,930

 
$
2,535

 
$
8,037

Related tax expense
 
$
1,162

 
$
749

 
$
3,380

 


Contractual Maturities of Investment Securities

The following table presents the contractual maturities of AFS investment securities as of December 31, 2019:
 
($ in thousands)
 
Amortized Cost
 
Fair Value
Due within one year
 
$
721,607

 
$
719,179

Due after one year through five years
 
395,468

 
392,891

Due after five years through ten years
 
143,029

 
145,901

Due after ten years
 
2,060,544

 
2,059,243

Total AFS investment securities
 
$
3,320,648

 
$
3,317,214

 

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, 2019 and 2018, AFS investment securities with fair value of $479.4 million and $435.8 million, respectively, were primarily pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law.

Restricted Equity Securities

The following table presents the restricted equity securities included in Other Assets on the Consolidated Balance Sheet as of December 31, 2019 and 2018:
 
($ in thousands)
 
December 31,
 
2019
 
2018
FRB stock
 
$
58,330

 
$
56,819

FHLB stock
 
20,250

 
17,250

Total restricted equity securities
 
$
78,580

 
$
74,069