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Securities
 6 Months Ended
Jun. 30, 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 June 30, 2022 and December 31, 2021:
($ in thousands)June 30, 2022
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
AFS debt securities:
U.S. Treasury securities$676,320 $— $(51,634)$624,686 
U.S. government agency and U.S. government-sponsored enterprise debt securities324,463 — (39,218)285,245 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities614,135 125 (50,428)563,832 
Residential mortgage-backed securities2,097,339 193 (187,292)1,910,240 
Municipal securities306,419 22 (39,708)266,733 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities451,200 247 (39,679)411,768 
Residential mortgage-backed securities808,012 — (81,023)726,989 
Corporate debt securities673,502 105 (114,314)559,293 
Foreign government bonds253,118 648 (10,769)242,997 
Asset-backed securities69,764 — (2,414)67,350 
CLOs617,250 — (20,879)596,371 
Total AFS debt securities6,891,522 1,340 (637,358)6,255,504 
HTM debt securities:
U.S. Treasury securities521,352 — (34,831)486,521 
U.S. government agency and U.S. government-sponsored enterprise debt securities997,369 — (144,291)853,078 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities512,391 — (62,563)449,828 
Residential mortgage-backed securities807,111 — (96,637)710,474 
Municipal securities190,079 — (33,431)156,648 
Total HTM debt securities3,028,302 — (371,753)2,656,549 
Total debt securities$9,919,824 $1,340 $(1,009,111)$8,912,053 
($ 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 June 30, 2022 and December 31, 2021, the amortized cost of debt securities excluded accrued interest receivables of $34.9 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 June 30, 2022 and December 31, 2021.
($ in thousands)June 30, 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$466,095 $(32,524)$158,591 $(19,110)$624,686 $(51,634)
U.S. government agency and U.S. government sponsored enterprise debt securities249,274 (35,689)35,971 (3,529)285,245 (39,218)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities440,235 (34,101)110,670 (16,327)550,905 (50,428)
Residential mortgage-backed securities1,433,558 (122,567)463,552 (64,725)1,897,110 (187,292)
Municipal securities265,197 (39,708)— — 265,197 (39,708)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities335,199 (28,436)65,175 (11,243)400,374 (39,679)
Residential mortgage-backed securities616,819 (67,098)110,170 (13,925)726,989 (81,023)
Corporate debt securities295,000 (35,503)236,189 (78,811)531,189 (114,314)
Foreign government bonds18,887 (165)67,798 (10,604)86,685 (10,769)
Asset-backed securities57,469 (1,888)9,881 (526)67,350 (2,414)
CLOs312,368 (10,882)284,003 (9,997)596,371 (20,879)
Total AFS debt securities$4,490,101 $(408,561)$1,542,000 $(228,797)$6,032,101 $(637,358)
($ 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 June 30, 2022, the Company had a total of 531 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting primarily of 244 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 100 non-agency mortgage-backed securities, and 63 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 widening of liquidity and/or credit spreads. U.S. Treasury, U.S. government agency, U.S. government-sponsored agency, and U.S. government-sponsored enterprise mortgage-backed securities, are issued, guaranteed, or otherwise supported by the U.S. government and have a zero credit loss assumption. The other securities that were in an unrealized loss position as of June 30, 2022 were mainly comprised of the following:

•Non-agency mortgage-backed securities — The market value decline as of June 30, 2022 was primarily due to interest rate movement and spreads widening. Since these securities are rated investment grade by NRSROs, 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 June 30, 2022 was primarily due to interest rate movement and spreads widening. Since credit profiles of these securities are strong (rated investment grade by NRSROs) 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 June 30, 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 June 30, 2022 and December 31, 2021 provided against these securities. In addition, there was no provision for credit losses recognized for the three and six months ended June 30, 2022 and 2021. If a credit loss had been identified, the Company would record an impairment through the allowance for credit losses with a corresponding Provision for credit losses on the Consolidated Statement of Income.

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

The Company separately evaluates its HTM debt securities for any credit losses using an expected loss model, similar to the methodology used for loans. Any expected credit loss is recorded through the allowance for credit losses and is deducted from the amortized cost basis. The net amount the Company expects to collect is reflected on the Consolidated Balance Sheet.

The Company monitors the credit quality of the HTM debt securities using external credit ratings. As of June 30, 2022, all HTM securities were rated investment grade by NRSROs and issued, guaranteed, or supported by U.S. government entities and agencies. Accordingly, the Company applied a zero credit loss assumption and no allowance for credit losses was recorded as of June 30, 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. 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.
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 and six months ended June 30, 2022 and 2021:
($ in thousands)Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Gross realized gains$28 $632 $1,306 $824 
Related tax expense$8 $187 $386 $244 
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 June 30, 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$— $576,626 $99,694 $— $676,320 
Fair value— 536,698 87,988 — 624,686 
Weighted-average yield (1)
— %1.28 %0.74 %— %1.20 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost— 29,193 125,001 170,269 324,463 
Fair value— 27,700 110,199 147,346 285,245 
Weighted-average yield (1)
— %1.62 %1.16 %2.09 %1.69 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Amortized cost— 13,289 192,287 2,505,898 2,711,474 
Fair value— 13,205 182,832 2,278,035 2,474,072 
Weighted-average yield (1)
— %3.11 %2.69 %2.11 %2.15 %
Municipal securities
Amortized cost— 39,712 6,498 260,209 306,419 
Fair value— 37,800 5,758 223,175 266,733 
Weighted-average yield (1) (2)
— %2.47 %1.79 %2.23 %2.25 %
Non-agency mortgage-backed securities
Amortized cost10,019 196,136 40,404 1,012,653 1,259,212 
Fair value9,894 189,963 39,224 899,676 1,138,757 
Weighted-average yield (1)
4.47 %3.56 %1.19 %2.23 %2.42 %
Corporate debt securities
Amortized cost10,000 — 334,502 329,000 673,502 
Fair value9,847 — 309,395 240,051 559,293 
Weighted average yield (1)
3.26 %— %3.59 %1.98 %2.80 %
Foreign government bonds
Amortized cost108,712 44,406 50,000 50,000 253,118 
Fair value108,660 44,832 50,081 39,424 242,997 
Weighted-average yield (1)
1.82 %3.01 %0.55 %1.50 %1.71 %
Asset-backed securities:
Amortized cost— — — 69,764 69,764 
Fair value— — — 67,350 67,350 
Weighted-average yield (1)
— %— %— %2.74 %2.74 %
CLOs
Amortized cost— — — 617,250 617,250 
Fair value— — — 596,371 596,371 
Weighted average yield (1)
— %— %— %2.22 %2.22 %
Total AFS debt securities
Amortized cost$128,731 $899,362 $848,386 $5,015,043 $6,891,522 
Fair value$128,401 $850,198 $785,477 $4,491,428 $6,255,504 
Weighted-average yield (1)
2.14 %1.95 %2.39 %2.15 %2.15 %
($ 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$—$166,856$354,496$—$521,352
Fair value—156,200330,321—486,521
Weighted-average yield (1)
— %0.90 %1.12 %— %1.05 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost——213,101784,268997,369
Fair value——193,357659,721853,078
Weighted-average yield (1)
— %— %2.03 %1.86 %1.90 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost——87,2641,232,2381,319,502
Fair value——78,9931,081,3091,160,302
Weighted-average yield (1)
— %— %1.60 %1.59 %1.59 %
Municipal securities
Amortized cost———190,079190,079
Fair value———156,648156,648
Weighted-average yield (1) (2)
— %— %— %1.97 %1.97 %
Total HTM debt securities
Amortized cost$—$166,856$654,861$2,206,585$3,028,302
Fair value$—$156,200$602,671$1,897,678$2,656,549
Weighted-average yield (1)
— %0.90 %1.48 %1.72 %1.62 %
(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 June 30, 2022 and December 31, 2021, AFS and HTM debt securities with carrying values of $1.29 billion 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 June 30, 2022 and December 31, 2021:
($ in thousands)June 30, 2022December 31, 2021
Federal Reserve Bank of San Francisco (“FRBSF”) stock$60,712 $60,184 
FHLB stock17,250 17,250 
Total restricted equity securities$77,962 $77,434