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Securities
 3 Months Ended
Mar. 31, 2022
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 and HTM debt securities as of March 31, 2022 and December 31, 2021:
($ in thousands)March 31, 2022
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
AFS debt securities:
U.S. Treasury securities$676,330 $64 $(38,420)$637,974 
U.S. government agency and U.S. government-sponsored enterprise debt securities326,555 119 (22,279)304,395 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities632,660 1,185 (33,522)600,323 
Residential mortgage-backed securities2,180,621 733 (112,869)2,068,485 
Municipal securities317,952 749 (20,042)298,659 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities468,203 647 (23,525)445,325 
Residential mortgage-backed securities855,502 7 (48,727)806,782 
Corporate debt securities683,502 2,107 (55,097)630,512 
Foreign government bonds260,846 635 (7,670)253,811 
Asset-backed securities72,160 — (798)71,362 
CLOs617,250 — (5,447)611,803 
Total AFS debt securities7,091,581 6,246 (368,396)6,729,431 
HTM debt securities:
U.S. Treasury securities$519,989 $— $(20,714)$499,275 
U.S. government agency and U.S. government-sponsored enterprise debt securities946,763 — (67,477)879,286 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities515,966 — (31,678)484,288 
Residential mortgage-backed securities824,713 — (44,690)780,023 
Municipal securities190,271 — (17,175)173,096 
Total HTM debt securities2,997,702 — (181,734)2,815,968 
Total debt securities$10,089,283 $6,246 $(550,130)$9,545,399 
($ in thousands)December 31, 2021
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
AFS debt securities:
U.S. Treasury securities$1,049,238 $130 $(16,687)$1,032,681 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,333,984 2,697 (34,710)1,301,971 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities1,242,043 15,791 (28,854)1,228,980 
Residential mortgage-backed securities2,968,789 8,629 (49,135)2,928,283 
Municipal securities519,381 10,065 (6,288)523,158 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities498,920 3,000 (5,477)496,443 
Residential mortgage-backed securities889,937 971 (8,977)881,931 
Corporate debt securities657,516 8,738 (16,589)649,665 
Foreign government bonds260,447 767 (3,481)257,733 
Asset-backed securities74,674 185 (301)74,558 
CLOs592,250 52 (2,352)589,950 
Total AFS debt securities $10,087,179 $51,025 $(172,851)$9,965,353 

During the first quarter of 2022, the Company transferred $3.01 billion in fair value of debt securities from AFS to HTM. At the time of the transfer, $113.0 million of unrealized losses, net of tax, was retained in AOCI.

As of March 31, 2022 and December 31, 2021, the amortized cost of debt securities excluded accrued interest receivables of $28.5 million and $33.1 million, respectively, which are included in Other assets on the Consolidated Balance Sheet. For the Company’s accounting policy related to debt securities’ accrued interest receivable, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in the Company’s 2021 Form 10-K and Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10-Q.
Unrealized Losses of Available-for-Sale Debt Securities

The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of March 31, 2022 and December 31, 2021.
($ in thousands)March 31, 2022
Less Than 12 Months12 Months or MoreTotal
Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
AFS debt securities:
U.S. Treasury securities$452,031 $(23,354)$162,785 $(15,066)$614,816 $(38,420)
U.S. government agency and U.S. government sponsored enterprise debt securities283,790 (21,418)13,639 (861)297,429 (22,279)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities428,714 (22,960)94,653 (10,562)523,367 (33,522)
Residential mortgage-backed securities1,651,592 (77,331)363,817 (35,538)2,015,409 (112,869)
Municipal securities243,211 (20,042)— — 243,211 (20,042)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities360,543 (17,424)67,676 (6,101)428,219 (23,525)
Residential mortgage-backed securities724,439 (42,033)81,681 (6,694)806,120 (48,727)
Corporate debt securities279,491 (16,008)275,912 (39,089)555,403 (55,097)
Foreign government bonds19,022 (43)77,195 (7,627)96,217 (7,670)
Asset-backed securities71,362 (798)— — 71,362 (798)
CLOs320,603 (2,647)291,200 (2,800)611,803 (5,447)
Total AFS debt securities$4,834,798 $(244,058)$1,428,558 $(124,338)$6,263,356 $(368,396)
($ in thousands)December 31, 2021
Less Than 12 Months12 Months or MoreTotal
Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
AFS debt securities:
U.S. Treasury securities$935,776 $(14,689)$47,881 $(1,998)$983,657 $(16,687)
U.S. government agency and U.S. government-sponsored enterprise debt securities773,647 (18,000)402,907 (16,710)1,176,554 (34,710)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities440,734 (13,589)257,745 (15,265)698,479 (28,854)
Residential mortgage-backed securities2,138,542 (37,691)330,522 (11,444)2,469,064 (49,135)
Municipal securities177,065 (5,682)17,003 (606)194,068 (6,288)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities301,925 (4,158)40,013 (1,319)341,938 (5,477)
Residential mortgage-backed securities707,792 (8,966)6,431 (11)714,223 (8,977)
Corporate debt securities183,916 (3,084)251,494 (13,505)435,410 (16,589)
Foreign government bonds27,097 (5)133,279 (3,476)160,376 (3,481)
Asset-backed securities24,885 (301)— — 24,885 (301)
CLOs221,586 (64)291,712 (2,288)513,298 (2,352)
Total AFS debt securities$5,932,965 $(106,229)$1,778,987 $(66,622)$7,711,952 $(172,851)
As of March 31, 2022, the Company had a total of 497 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting primarily of 223 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 102 non-agency mortgage-backed securities, and 56 corporate debt securities. In comparison, as of December 31, 2021, the Company had a total of 431 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting primarily of 180 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 50 U.S. government agency and U.S. government-sponsored agency debt securities, 21 U.S. Treasury securities, and 30 corporate debt securities.

Allowance for Credit Losses on Available-for-Sale Debt Securities

Each reporting period, the Company assesses each AFS debt security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in the Company’s 2021 Form 10-K.

The gross unrealized losses presented in the preceding tables were primarily attributable to interest rate movement and spread widening. Securities that were in unrealized loss positions as of March 31, 2022 were mainly comprised of the following:

•U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities — The market value decline as of March 31, 2022, was primarily due to interest rate movement. These securities (issued by Fannie Mae, Ginnie Mae and Freddie Mac) are guaranteed or sponsored by agencies of the U.S. government, and their credit profiles are strong (rated Aaa, AA+ and AAA by Moody’s Investors Service (“Moody’s”), S&P Global Ratings (“S&P”) and Fitch Ratings (“Fitch”), respectively). The Company expects to receive all contractual cash flows on time.
•Non-agency mortgage-backed securities — The market value decline as of March 31, 2022, was primarily due to interest rate movement and spread widening. Since these securities are rated AA or AAA by rating agencies (Moody’s, S&P, Kroll Bond Rating Agency, Fitch and Dominion Bond Rating Service Morningstar), or have high priority in the cash flow waterfall within the securitization structure, and the contractual payments have historically been on time, the Company believes the risk of credit losses on these securities is low.
•Corporate debt securities — The market value decline as of March 31, 2022, was primarily due to interest rate movement and spread widening. Since credit profiles of these securities are strong (rated BBB- or higher by Moody’s, S&P, Kroll Bond Rating Agency and Fitch), and the contractual payments from these bonds have been and are expected to be received on time, the Company believes that the risk of credit losses on these securities is low.

As of March 31, 2022 and December 31, 2021, the Company had the intent to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company will not have to sell these securities before the recovery of their amortized cost. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, there was no allowance for credit losses as of March 31, 2022 and December 31, 2021 provided against these securities. In addition, there was no provision for credit losses recognized for the three months ended March 31, 2022 and 2021.

Allowance for Credit Losses on Held-to-Maturity Debt Securities

The Company separately evaluates its HTM debt securities for any credit losses, of which all qualify for the zero loss assumption as of March 31, 2022. For more information on the Company’s credit loss methodology, refer to Note 2 — Current Accounting Developments and Summary of Significant Accounting Policies to the Consolidated Financial Statements in this Form 10-Q. The Company monitors the credit quality of the HTM debt securities using external credit ratings. As of March 31, 2022, all HTM securities were highly rated (rated Aaa, AA+ and AAA by Moody’s, S&P and Fitch) and issued, guaranteed, or supported by U.S. government entities and agencies. The Company believes the history of no credit losses, current conditions as well as reasonable and supportable forecasts, indicate that all contractual payments will be received. Accordingly, the Company applied a zero credit loss assumption and no allowance for credit losses was recorded as of March 31, 2022.

Overall, the Company believes that the credit support levels of the debt securities are strong and, based on current assessments and macroeconomic forecasts, expects that full contractual cash flows will be received.
Realized Gains and Losses

The following table presents the gross realized gains and tax expense related to the sales of AFS debt securities for the three months ended March 31, 2022 and 2021:
($ in thousands)Three Months Ended March 31,
20222021
Gross realized gains$1,278 $192 
Related tax expense$378 $57 
Contractual Maturities of Available-for-Sale and Held-to-Maturity Debt Securities

The following tables present the contractual maturities, amortized cost, fair value and weighted average yields of AFS and HTM debt securities as of March 31, 2022. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties.
($ in thousands)Within One Year
After One Year through Five Years
After Five Years through Ten Years After Ten Years Total
AFS debt securities:
U.S. Treasury securities
Amortized cost$— $576,650 $99,680 $— $676,330 
Fair value— 547,431 90,543 — 637,974 
Weighted-average yield (1)
— %1.28 %0.74 %— %1.20 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost— 29,199 125,000 172,356 326,555 
Fair value— 27,969 115,734 160,692 304,395 
Weighted-average yield (1)
— %1.64 %1.16 %2.09 %1.70 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Amortized cost— 12,508 190,547 2,610,226 2,813,281 
Fair value— 12,538 185,605 2,470,665 2,668,808 
Weighted-average yield (1)
— %3.08 %2.62 %1.78 %1.85 %
Municipal securities
Amortized cost1,841 36,444 18,691 260,976 317,952 
Fair value1,844 35,640 18,174 243,001 298,659 
Weighted-average yield (1) (2)
2.72 %2.41 %2.60 %2.23 %2.28 %
Non-agency mortgage-backed securities
Amortized cost10,807 202,260 45,103 1,065,535 1,323,705 
Fair value10,798 198,659 44,661 997,989 1,252,107 
Weighted-average yield (1)
3.07 %3.25 %1.16 %2.00 %2.17 %
Corporate debt securities
Amortized cost— 10,000 331,502 342,000 683,502 
Fair value— 9,848 322,115 298,549 630,512 
Weighted average yield (1)
— %1.55 %3.67 %2.05 %2.83 %
Foreign government bonds
Amortized cost113,979 46,867 50,000 50,000 260,846 
Fair value113,864 47,315 50,131 42,501 253,811 
Weighted-average yield (1)
1.88 %3.01 %0.42 %1.50 %1.73 %
Asset-backed securities:
Amortized cost— — — 72,160 72,160 
Fair value— — — 71,362 71,362 
Weighted-average yield (1)
— %— %— %1.50 %1.50 %
CLOs
Amortized cost— — — 617,250 617,250 
Fair value— — — 611,803 611,803 
Weighted average yield (1)
— %— %— %1.41 %1.41 %
Total AFS debt securities
Amortized cost$126,627 $913,928 $860,523 $5,190,503 $7,091,581 
Fair value$126,506 $879,400 $826,963 $4,896,562 $6,729,431 
Weighted-average yield (1)
1.99 %1.89 %2.39 %1.83 %1.91 %
($ in thousands)Within One Year
After One Year through Five Years
After Five Years through Ten YearsAfter Ten YearsTotal
HTM debt securities:
U.S. Treasury securities
Amortized cost$—$24,415$495,574$—$519,989
Fair value—23,492475,783—499,275
Weighted-average yield (1)
— %0.76 %1.06 %— %1.05 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost——162,903783,860946,763
Fair value——153,074726,212879,286
Weighted-average yield (1)
— %— %1.43 %1.86 %1.79 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost——88,1141,252,5651,340,679
Fair value——83,8161,180,4951,264,311
Weighted-average yield (1)
— %— %1.61 %1.62 %1.62 %
Municipal securities
Amortized cost———190,271190,271
Fair value———173,096173,096
Weighted-average yield (1) (2)
— %— %— %1.97 %1.97 %
Total HTM debt securities
Amortized cost$—$24,415$746,591$2,226,696$2,997,702
Fair value$—$23,492$712,673$2,079,803$2,815,968
Weighted-average yield (1)
— %0.76 %1.21 %1.73 %1.59 %
(1)Weighted-average yields are computed based on amortized cost balances.
(2)Yields on tax-exempt securities are not presented on a tax-equivalent basis.

As of March 31, 2022 and December 31, 2021, AFS and HTM debt securities with carrying values of $625.9 million and $803.9 million, respectively, were 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 March 31, 2022 and December 31, 2021:
($ in thousands)March 31, 2022December 31, 2021
Federal Reserve Bank of San Francisco (“FRBSF”) stock$60,432 $60,184 
FHLB stock17,250 17,250 
Total restricted equity securities$77,682 $77,434