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Securities (Tables)
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Debt 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, 2023 and December 31, 2022:
June 30, 2023
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$779,973 $15 $(68,282)$711,706 
U.S. government agency and U.S. government-sponsored enterprise debt securities514,594 — (54,510)460,084 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities552,859 — (74,082)478,777 
Residential mortgage-backed securities1,966,906 15 (245,684)1,721,237 
Municipal securities304,204 28 (40,359)263,873 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities432,782 2 (48,733)384,051 
Residential mortgage-backed securities715,775 — (107,201)608,574 
Corporate debt securities653,502 — (167,752)485,750 
Foreign government bonds236,392 152 (11,778)224,766 
Asset-backed securities46,332 — (1,457)44,875 
CLOs617,250 — (13,685)603,565 
Total AFS debt securities6,820,569 212 (833,523)5,987,258 
HTM debt securities:
U.S. Treasury securities526,794 — (52,657)474,137 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,000,415 — (202,544)797,871 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities496,852 — (93,114)403,738 
Residential mortgage-backed securities762,573 — (147,285)615,288 
Municipal securities189,299 — (39,849)149,450 
Total HTM debt securities2,975,933 — (535,449)2,440,484 
Total debt securities$9,796,502 $212 $(1,368,972)$8,427,742 
December 31, 2022
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$676,306 $— $(70,103)$606,203 
U.S. government agency and U.S. government-sponsored enterprise debt securities517,806 67 (56,266)461,607 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities577,392 — (77,123)500,269 
Residential mortgage-backed securities2,011,054 41 (248,900)1,762,195 
Municipal securities303,884 3 (46,788)257,099 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities447,512 213 (49,396)398,329 
Residential mortgage-backed securities762,202 — (112,978)649,224 
Corporate debt securities673,502 — (147,228)526,274 
Foreign government bonds241,165 174 (14,286)227,053 
Asset-backed securities51,152 — (2,076)49,076 
CLOs617,250 — (19,586)597,664 
Total AFS debt securities 6,879,225 498 (844,730)6,034,993 
HTM debt securities:
U.S. Treasury securities524,081 — (52,612)471,469 
U.S. government agency and U.S. government-sponsored enterprise debt securities998,972 — (209,560)789,412 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities506,965 — (98,566)408,399 
Residential mortgage-backed securities782,141 — (148,230)633,911 
Municipal securities189,709 — (37,729)151,980 
Total HTM debt securities3,001,868 — (546,697)2,455,171 
Total debt securities$9,881,093 $498 $(1,391,427)$8,490,164 
Debt Securities
The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of AFS and HTM debt securities as of June 30, 2023 and December 31, 2022:
June 30, 2023
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$779,973 $15 $(68,282)$711,706 
U.S. government agency and U.S. government-sponsored enterprise debt securities514,594 — (54,510)460,084 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities552,859 — (74,082)478,777 
Residential mortgage-backed securities1,966,906 15 (245,684)1,721,237 
Municipal securities304,204 28 (40,359)263,873 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities432,782 2 (48,733)384,051 
Residential mortgage-backed securities715,775 — (107,201)608,574 
Corporate debt securities653,502 — (167,752)485,750 
Foreign government bonds236,392 152 (11,778)224,766 
Asset-backed securities46,332 — (1,457)44,875 
CLOs617,250 — (13,685)603,565 
Total AFS debt securities6,820,569 212 (833,523)5,987,258 
HTM debt securities:
U.S. Treasury securities526,794 — (52,657)474,137 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,000,415 — (202,544)797,871 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities496,852 — (93,114)403,738 
Residential mortgage-backed securities762,573 — (147,285)615,288 
Municipal securities189,299 — (39,849)149,450 
Total HTM debt securities2,975,933 — (535,449)2,440,484 
Total debt securities$9,796,502 $212 $(1,368,972)$8,427,742 
December 31, 2022
($ in thousands)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$676,306 $— $(70,103)$606,203 
U.S. government agency and U.S. government-sponsored enterprise debt securities517,806 67 (56,266)461,607 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities577,392 — (77,123)500,269 
Residential mortgage-backed securities2,011,054 41 (248,900)1,762,195 
Municipal securities303,884 3 (46,788)257,099 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities447,512 213 (49,396)398,329 
Residential mortgage-backed securities762,202 — (112,978)649,224 
Corporate debt securities673,502 — (147,228)526,274 
Foreign government bonds241,165 174 (14,286)227,053 
Asset-backed securities51,152 — (2,076)49,076 
CLOs617,250 — (19,586)597,664 
Total AFS debt securities 6,879,225 498 (844,730)6,034,993 
HTM debt securities:
U.S. Treasury securities524,081 — (52,612)471,469 
U.S. government agency and U.S. government-sponsored enterprise debt securities998,972 — (209,560)789,412 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities506,965 — (98,566)408,399 
Residential mortgage-backed securities782,141 — (148,230)633,911 
Municipal securities189,709 — (37,729)151,980 
Total HTM debt securities3,001,868 — (546,697)2,455,171 
Total debt securities$9,881,093 $498 $(1,391,427)$8,490,164 
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of June 30, 2023 and December 31, 2022.
June 30, 2023
Less Than 12 Months12 Months or MoreTotal
($ in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
AFS debt securities:
U.S. Treasury securities$— $— $608,012 $(68,282)$608,012 $(68,282)
U.S. government agency and U.S. government sponsored enterprise debt securities206,807 (1,696)253,277 (52,814)460,084 (54,510)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities20,690 (1,580)458,087 (72,502)478,777 (74,082)
Residential mortgage-backed securities26,838 (1,074)1,692,202 (244,610)1,719,040 (245,684)
Municipal securities7,651 (111)254,201 (40,248)261,852 (40,359)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— — 381,043 (48,733)381,043 (48,733)
Residential mortgage-backed securities— — 608,574 (107,201)608,574 (107,201)
Corporate debt securities29,702 (4,299)456,048 (163,453)485,750 (167,752)
Foreign government bonds68,206 (516)38,738 (11,262)106,944 (11,778)
Asset-backed securities— — 44,875 (1,457)44,875 (1,457)
CLOs— — 603,565 (13,685)603,565 (13,685)
Total AFS debt securities$359,894 $(9,276)$5,398,622 $(824,247)$5,758,516 $(833,523)
December 31, 2022
Less Than 12 Months12 Months or MoreTotal
($ in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
AFS debt securities:
U.S. Treasury securities$131,843 $(8,761)$474,360 $(61,342)$606,203 $(70,103)
U.S. government agency and U.S. government-sponsored enterprise debt securities97,403 (6,902)214,136 (49,364)311,539 (56,266)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities252,144 (30,029)248,125 (47,094)500,269 (77,123)
Residential mortgage-backed securities307,536 (20,346)1,448,658 (228,554)1,756,194 (248,900)
Municipal securities95,655 (10,194)159,439 (36,594)255,094 (46,788)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities106,184 (3,309)282,301 (46,087)388,485 (49,396)
Residential mortgage-backed securities22,715 (1,546)626,509 (111,432)649,224 (112,978)
Corporate debt securities173,595 (17,907)352,679 (129,321)526,274 (147,228)
Foreign government bonds107,576 (429)36,143 (13,857)143,719 (14,286)
Asset-backed securities12,450 (524)36,626 (1,552)49,076 (2,076)
CLOs144,365 (4,735)453,299 (14,851)597,664 (19,586)
Total AFS debt securities$1,451,466 $(104,682)$4,332,275 $(740,048)$5,783,741 $(844,730)
Schedule Of The Gross Realized Gains And Tax Expense Related To The Sales And Impairment Write-Off Of AFS Debt Securities
The following table presents the gross realized gains from the sales and impairment write-off of AFS debt securities and the related tax expense (benefit) included in earnings for the three and six months ended June 30, 2023 and 2022:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2023202220232022
Gross realized gains from sales$— $28 $— $1,306 
Impairment write-off (1)
$— $— $10,000 $— 
Related tax expense (benefit) $— $8 $(2,956)$386 
(1)During the first quarter of 2023, the Company fully wrote down a subordinated debt security and recorded the impairment loss as a component of noninterest income in the Company’s Consolidated Statement of Income.
Schedule of Composition of Interest Income on Debt Securities
The following table presents the composition of interest income on debt securities for the three and six months ended June 30, 2023 and 2022:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2023202220232022
Taxable interest$64,139 $41,250 $125,188 $79,454 
Nontaxable interest4,831 4,926 9,713 9,389 
Total interest income on debt securities$68,970 $46,176 $134,901 $88,843 
Schedule Of Contractual Maturities And Weighted Average Yields Of AFS And HTM Debt Securities
The following tables present the contractual maturities, amortized cost, fair value and weighted-average yields of AFS and HTM debt securities as of June 30, 2023. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties.
($ 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$103,679 $676,294 $— $— $779,973 
Fair value103,694 608,012 — — 711,706 
Weighted-average yield (1)
4.82 %1.20 %— %— %1.68 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost150,000 98,133 100,000 166,461 514,594 
Fair value149,305 93,146 82,433 135,200 460,084 
Weighted-average yield (1)
4.98 %3.07 %1.26 %2.09 %2.96 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost— 38,030 151,754 2,329,981 2,519,765 
Fair value— 35,886 137,852 2,026,276 2,200,014 
Weighted-average yield (1) (2)
— %3.20 %2.71 %3.48 %3.43 %
Municipal securities
Amortized cost2,301 37,167 10,777 253,959 304,204 
Fair value2,288 34,380 9,454 217,751 263,873 
Weighted-average yield (1) (2)
2.21 %2.46 %2.73 %2.24 %2.28 %
Non-agency mortgage-backed securities
Amortized cost102,877 105,584 12,946 927,150 1,148,557 
Fair value101,397 101,371 12,525 777,332 992,625 
Weighted-average yield (1)
6.86 %4.18 %0.80 %2.57 %3.08 %
Corporate debt securities
Amortized cost— — 349,502 304,000 653,502 
Fair value— — 279,402 206,348 485,750 
Weighted-average yield (1)
— %— %3.48 %1.97 %2.78 %
Foreign government bonds
Amortized cost74,140 62,252 50,000 50,000 236,392 
Fair value74,116 62,364 49,548 38,738 224,766 
Weighted-average yield (1)
3.02 %2.33 %5.46 %1.50 %3.03 %
Asset-backed securities
Amortized cost— — — 46,332 46,332 
Fair value— — — 44,875 44,875 
Weighted-average yield (1)
— %— %— %5.75 %5.75 %
CLOs
Amortized cost— — 319,000 298,250 617,250 
Fair value— — 311,589 291,976 603,565 
Weighted-average yield (1)
— %— %6.38 %6.43 %6.40 %
Total AFS debt securities
Amortized cost$432,997 $1,017,460 $993,979 $4,376,133 $6,820,569 
Fair value$430,800 $935,159 $882,803 $3,738,496 $5,987,258 
Weighted-average yield (1)
5.04 %1.88 %4.12 %3.26 %3.29 %
($ 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$—$526,794$—$—$526,794
Fair value—474,137——474,137
Weighted-average yield (1)
— %1.05 %— %— %1.05 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost——280,571719,8441,000,415
Fair value——237,713560,158797,871
Weighted-average yield (1)
— %— %1.92 %1.89 %1.90 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost——95,5271,163,8981,259,425
Fair value——80,230938,7961,019,026
Weighted-average yield (1) (2)
— %— %1.56 %1.68 %1.67 %
Municipal securities
Amortized cost———189,299189,299
Fair value———149,450149,450
Weighted-average yield (1) (2)
— %— %— %1.98 %1.98 %
Total HTM debt securities
Amortized cost$—$526,794$376,098$2,073,041$2,975,933
Fair value$—$474,137$317,943$1,648,404$2,440,484
Weighted-average yield (1)
— %1.05 %1.83 %1.78 %1.66 %
(1)Weighted-average yields are computed based on amortized cost balances.
(2)Yields on tax-exempt securities are not presented on a tax-equivalent basis.
Schedule Of Restricted Equity Securities
The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of June 30, 2023 and December 31, 2022:
($ in thousands)June 30, 2023December 31, 2022
Federal Reserve Bank of San Francisco (“FRBSF”) stock$61,956 $61,374 
FHLB stock17,250 17,250 
Total restricted equity securities$79,206 $78,624