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Securities
 9 Months Ended
Sep. 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 September 30, 2022 and December 31, 2021:
($ in thousands)September 30, 2022
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
AFS debt securities:
U.S. Treasury securities$676,312 $— $(75,635)$600,677 
U.S. government agency and U.S. government-sponsored enterprise debt securities319,070 — (58,646)260,424 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities595,342 — (73,457)521,885 
Residential mortgage-backed securities2,043,791 58 (250,420)1,793,429 
Municipal securities307,084 — (57,582)249,502 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities448,790 173 (50,988)397,975 
Residential mortgage-backed securities784,700 — (113,162)671,538 
Corporate debt securities673,502 — (143,937)529,565 
Foreign government bonds238,720 528 (13,438)225,810 
Asset-backed securities66,793 — (1,923)64,870 
CLOs617,250 — (26,835)590,415 
Total AFS debt securities6,771,354 759 (866,023)5,906,090 
HTM debt securities:
U.S. Treasury securities522,713 — (56,628)466,085 
U.S. government agency and U.S. government-sponsored enterprise debt securities998,233 — (215,616)782,617 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities509,139 — (92,507)416,632 
Residential mortgage-backed securities792,685 — (142,978)649,707 
Municipal securities189,897 — (45,803)144,094 
Total HTM debt securities3,012,667 — (553,532)2,459,135 
Total debt securities$9,784,021 $759 $(1,419,555)$8,365,225 
($ 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 September 30, 2022 and December 31, 2021, the amortized cost of debt securities excluded accrued interest receivables of $33.8 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 September 30, 2022 and December 31, 2021.
($ in thousands)September 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$263,772 $(25,232)$336,905 $(50,403)$600,677 $(75,635)
U.S. government agency and U.S. government sponsored enterprise debt securities88,168 (16,401)172,256 (42,245)260,424 (58,646)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities334,460 (39,330)187,425 (34,127)521,885 (73,457)
Residential mortgage-backed securities700,318 (72,088)1,085,253 (178,332)1,785,571 (250,420)
Municipal securities203,157 (46,271)46,345 (11,311)249,502 (57,582)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities170,101 (8,351)218,124 (42,637)388,225 (50,988)
Residential mortgage-backed securities188,584 (23,168)482,954 (89,994)671,538 (113,162)
Corporate debt securities247,533 (24,969)282,032 (118,968)529,565 (143,937)
Foreign government bonds68,733 (336)36,899 (13,102)105,632 (13,438)
Asset-backed securities54,811 (1,579)10,059 (344)64,870 (1,923)
CLOs190,370 (8,730)400,045 (18,105)590,415 (26,835)
Total AFS debt securities$2,510,007 $(266,455)$3,258,297 $(599,568)$5,768,304 $(866,023)
($ 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 September 30, 2022, the Company had a total of 557 AFS debt securities in a gross unrealized loss position with no credit impairment, consisting primarily of 262 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 100 non-agency mortgage-backed securities, and 68 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 the 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 September 30, 2022 were mainly comprised of the following:

•Non-agency mortgage-backed securities — The market value decline as of September 30, 2022, was primarily due to interest rate movement and spread 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 September 30, 2022 was primarily due to interest rate movement and spread widening. Since these securities are nearly all rated investment grade by NRSROs or, if not, the issuer is a well-capitalized financial institution with strong profitability, 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 September 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 September 30, 2022 and December 31, 2021 provided against these securities. In addition, there was no provision for credit losses recognized for the three and nine months ended September 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 September 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 September 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 nine months ended September 30, 2022 and 2021:
($ in thousands)Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Gross realized gains$— $354 $1,306 $1,178 
Related tax expense$— $104 $386 $348 

Interest Income

The following table presents the composition of interest income on debt securities for the three and nine months ended September 30, 2022 and 2021:
($ in thousands)Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Taxable interest$46,172 $34,755 $125,626 $92,909 
Nontaxable interest4,920 3,071 14,309 8,707 
Total interest income on debt securities$51,092 $37,826 $139,935 $101,616 
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 September 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$— $576,605 $99,707 $— $676,312 
Fair value— 516,595 84,082 — 600,677 
Weighted-average yield (1)
— %1.28 %0.74 %— %1.20 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost— 24,775 125,000 169,295 319,070 
Fair value— 22,787 102,540 135,097 260,424 
Weighted-average yield (1)
— %1.47 %1.16 %2.10 %1.69 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost— 24,417 173,899 2,440,817 2,639,133 
Fair value— 23,529 157,827 2,133,958 2,315,314 
Weighted-average yield (1)
— %3.26 %2.71 %2.70 %2.71 %
Municipal securities
Amortized cost1,511 38,079 6,855 260,639 307,084 
Fair value1,510 35,025 5,753 207,214 249,502 
Weighted-average yield (1) (2)
3.13 %2.44 %1.85 %2.24 %2.26 %
Non-agency mortgage-backed securities
Amortized cost28,574 187,564 25,832 991,520 1,233,490 
Fair value28,195 179,900 24,897 836,521 1,069,513 
Weighted-average yield (1)
4.84 %3.87 %0.84 %2.37 %2.62 %
Corporate debt securities
Amortized cost10,000 — 334,502 329,000 673,502 
Fair value9,857 — 296,184 223,524 529,565 
Weighted average yield (1)
3.95 %— %3.59 %1.98 %2.81 %
Foreign government bonds
Amortized cost138,720 — 50,000 50,000 238,720 
Fair value139,060 — 49,851 36,899 225,810 
Weighted-average yield (1)
2.15 %— %2.66 %1.50 %2.12 %
Asset-backed securities
Amortized cost— — — 66,793 66,793 
Fair value— — — 64,870 64,870 
Weighted-average yield (1)
— %— %— %4.15 %4.15 %
CLOs
Amortized cost— — 25,000 592,250 617,250 
Fair value— — 24,168 566,247 590,415 
Weighted average yield (1)
— %— %3.66 %3.86 %3.85 %
Total AFS debt securities
Amortized cost$178,805 $851,440 $840,795 $4,900,314 $6,771,354 
Fair value$178,622 $777,836 $745,302 $4,204,330 $5,906,090 
Weighted-average yield (1)
2.69 %1.96 %2.56 %2.69 %2.58 %
($ 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$—$285,325$237,388$—$522,713
Fair value—255,365210,720—466,085
Weighted-average yield (1)
— %0.96 %1.14 %— %1.05 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost——255,708742,525998,233
Fair value——215,684566,933782,617
Weighted-average yield (1)
— %— %1.94 %1.88 %1.90 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost——96,4331,205,3911,301,824
Fair value——81,526984,8131,066,339
Weighted-average yield (1)
— %— %1.56 %1.63 %1.63 %
Municipal securities
Amortized cost———189,897189,897
Fair value———144,094144,094
Weighted-average yield (1) (2)
— %— %— %1.97 %1.97 %
Total HTM debt securities
Amortized cost$—$285,325$589,529$2,137,813$3,012,667
Fair value$—$255,365$507,930$1,695,840$2,459,135
Weighted-average yield (1)
— %0.96 %1.55 %1.75 %1.64 %
(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 September 30, 2022 and December 31, 2021, AFS and HTM debt securities with carrying values of $1.22 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 September 30, 2022 and December 31, 2021:
($ in thousands)September 30, 2022December 31, 2021
Federal Reserve Bank of San Francisco (“FRBSF”) stock$61,004 $60,184 
FHLB stock17,250 17,250 
Total restricted equity securities$78,254 $77,434