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Securities (Tables)
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Debt Securities, Available-for-Sale
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, 2024 and December 31, 2023:
March 31, 2024
($ in thousands)
Amortized Cost (1)
Gross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$676,290 $— $(55,196)$621,094 
U.S. government agency and U.S. government-sponsored enterprise debt securities410,676 — (49,874)360,802 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2):
Commercial mortgage-backed securities513,159 129 (57,669)455,619 
Residential mortgage-backed securities5,229,549 4,212 (241,362)4,992,399 
Municipal securities296,360 47 (37,912)258,495 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities373,834 — (39,838)333,996 
Residential mortgage-backed securities609,705 — (90,048)519,657 
Corporate debt securities653,501 — (150,854)502,647 
Foreign government bonds238,592 605 (12,001)227,196 
Asset-backed securities41,287 — (575)40,712 
CLOs89,000 — (1,149)87,851 
Total AFS debt securities9,131,953 4,993 (736,478)8,400,468 
HTM debt securities:
U.S. Treasury securities530,921 — (45,521)485,400 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,002,697 — (196,898)805,799 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3):
Commercial mortgage-backed securities491,842 — (93,850)397,992 
Residential mortgage-backed securities734,577 — (153,299)581,278 
Municipal securities188,605 — (44,596)144,009 
Total HTM debt securities2,948,642 — (534,164)2,414,478 
Total debt securities$12,080,595 $4,993 $(1,270,642)$10,814,946 
December 31, 2023
($ in thousands)
Amortized Cost (1)
Gross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$1,112,587 $101 $(52,313)$1,060,375 
U.S. government agency and U.S. government-sponsored enterprise debt securities412,086 — (47,640)364,446 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2):
Commercial mortgage-backed securities531,377 158 (63,276)468,259 
Residential mortgage-backed securities1,956,927 380 (229,713)1,727,594 
Municipal securities297,283 75 (36,342)261,016 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities409,578 — (42,062)367,516 
Residential mortgage-backed securities643,335 — (89,664)553,671 
Corporate debt securities653,501 — (151,076)502,425 
Foreign government bonds239,333 69 (11,528)227,874 
Asset-backed securities43,234 — (934)42,300 
CLOs617,250 — (4,389)612,861 
Total AFS debt securities 6,916,491 783 (728,937)6,188,337 
HTM debt securities:
U.S. Treasury securities529,548 — (40,997)488,551 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,001,836 — (186,904)814,932 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3):
Commercial mortgage-backed securities493,348 — (88,968)404,380 
Residential mortgage-backed securities742,436 — (142,119)600,317 
Municipal securities188,872 — (43,081)145,791 
Total HTM debt securities2,956,040 — (502,069)2,453,971 
Total debt securities$9,872,531 $783 $(1,231,006)$8,642,308 
(1)Amortized cost excludes accrued interest receivables which are presented within Other assets on the Consolidated Balance Sheet. As of March 31, 2024 and December 31, 2023, the accrued interest receivables were $40 million and $44 million, respectively. For the Company’s accounting policy related to debt securities’ accrued interest receivables, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities and Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in the Company’s 2023 Form 10-K.
(2)Includes GNMA AFS debt securities totaling $4.5 billion of amortized cost and $4.4 billion of fair value as of March 31, 2024, and $1.3 billion of amortized cost and $1.2 billion of fair value as of December 31, 2023.
(3)Includes GNMA HTM debt securities totaling $91 million of amortized cost and $73 million of fair value as of March 31, 2024, and $92 million of amortized cost and $75 million of fair value of as of December 31, 2023.
Schedule of Debt Securities, Held-to-Maturity
The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of AFS and HTM debt securities as of March 31, 2024 and December 31, 2023:
March 31, 2024
($ in thousands)
Amortized Cost (1)
Gross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$676,290 $— $(55,196)$621,094 
U.S. government agency and U.S. government-sponsored enterprise debt securities410,676 — (49,874)360,802 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2):
Commercial mortgage-backed securities513,159 129 (57,669)455,619 
Residential mortgage-backed securities5,229,549 4,212 (241,362)4,992,399 
Municipal securities296,360 47 (37,912)258,495 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities373,834 — (39,838)333,996 
Residential mortgage-backed securities609,705 — (90,048)519,657 
Corporate debt securities653,501 — (150,854)502,647 
Foreign government bonds238,592 605 (12,001)227,196 
Asset-backed securities41,287 — (575)40,712 
CLOs89,000 — (1,149)87,851 
Total AFS debt securities9,131,953 4,993 (736,478)8,400,468 
HTM debt securities:
U.S. Treasury securities530,921 — (45,521)485,400 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,002,697 — (196,898)805,799 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3):
Commercial mortgage-backed securities491,842 — (93,850)397,992 
Residential mortgage-backed securities734,577 — (153,299)581,278 
Municipal securities188,605 — (44,596)144,009 
Total HTM debt securities2,948,642 — (534,164)2,414,478 
Total debt securities$12,080,595 $4,993 $(1,270,642)$10,814,946 
December 31, 2023
($ in thousands)
Amortized Cost (1)
Gross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$1,112,587 $101 $(52,313)$1,060,375 
U.S. government agency and U.S. government-sponsored enterprise debt securities412,086 — (47,640)364,446 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2):
Commercial mortgage-backed securities531,377 158 (63,276)468,259 
Residential mortgage-backed securities1,956,927 380 (229,713)1,727,594 
Municipal securities297,283 75 (36,342)261,016 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities409,578 — (42,062)367,516 
Residential mortgage-backed securities643,335 — (89,664)553,671 
Corporate debt securities653,501 — (151,076)502,425 
Foreign government bonds239,333 69 (11,528)227,874 
Asset-backed securities43,234 — (934)42,300 
CLOs617,250 — (4,389)612,861 
Total AFS debt securities 6,916,491 783 (728,937)6,188,337 
HTM debt securities:
U.S. Treasury securities529,548 — (40,997)488,551 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,001,836 — (186,904)814,932 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3):
Commercial mortgage-backed securities493,348 — (88,968)404,380 
Residential mortgage-backed securities742,436 — (142,119)600,317 
Municipal securities188,872 — (43,081)145,791 
Total HTM debt securities2,956,040 — (502,069)2,453,971 
Total debt securities$9,872,531 $783 $(1,231,006)$8,642,308 
(1)Amortized cost excludes accrued interest receivables which are presented within Other assets on the Consolidated Balance Sheet. As of March 31, 2024 and December 31, 2023, the accrued interest receivables were $40 million and $44 million, respectively. For the Company’s accounting policy related to debt securities’ accrued interest receivables, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities and Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in the Company’s 2023 Form 10-K.
(2)Includes GNMA AFS debt securities totaling $4.5 billion of amortized cost and $4.4 billion of fair value as of March 31, 2024, and $1.3 billion of amortized cost and $1.2 billion of fair value as of December 31, 2023.
(3)Includes GNMA HTM debt securities totaling $91 million of amortized cost and $73 million of fair value as of March 31, 2024, and $92 million of amortized cost and $75 million of fair value of as of December 31, 2023.
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of March 31, 2024 and December 31, 2023.
March 31, 2024
Less Than 12 Months12 Months or MoreTotal
($ in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
AFS debt securities:
U.S. Treasury securities$— $— $621,094 $(55,196)$621,094 $(55,196)
U.S. government agency and U.S. government sponsored enterprise debt securities— — 360,802 (49,874)360,802 (49,874)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities— — 450,965 (57,669)450,965 (57,669)
Residential mortgage-backed securities1,577,361 (4,504)1,642,455 (236,858)3,219,816 (241,362)
Municipal securities4,189 (6)252,268 (37,906)256,457 (37,912)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— — 333,996 (39,838)333,996 (39,838)
Residential mortgage-backed securities— — 519,657 (90,048)519,657 (90,048)
Corporate debt securities— — 502,647 (150,854)502,647 (150,854)
Foreign government bonds18,567 (61)88,060 (11,940)106,627 (12,001)
Asset-backed securities— — 40,712 (575)40,712 (575)
CLOs— — 87,851 (1,149)87,851 (1,149)
Total AFS debt securities$1,600,117 $(4,571)$4,900,507 $(731,907)$6,500,624 $(736,478)
December 31, 2023
Less Than 12 Months12 Months or MoreTotal
($ in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
AFS debt securities:
U.S. Treasury securities$— $— $623,978 $(52,313)$623,978 $(52,313)
U.S. government agency and U.S. government-sponsored enterprise debt securities— — 364,446 (47,640)364,446 (47,640)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities— — 463,572 (63,276)463,572 (63,276)
Residential mortgage-backed securities9,402 (558)1,661,112 (229,155)1,670,514 (229,713)
Municipal securities2,825 (15)254,773 (36,327)257,598 (36,342)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities2,742 (4)364,774 (42,058)367,516 (42,062)
Residential mortgage-backed securities— — 553,671 (89,664)553,671 (89,664)
Corporate debt securities— — 502,425 (151,076)502,425 (151,076)
Foreign government bonds110,955 (144)88,616 (11,384)199,571 (11,528)
Asset-backed securities— — 42,300 (934)42,300 (934)
CLOs— — 612,861 (4,389)612,861 (4,389)
Total AFS debt securities$125,924 $(721)$5,532,528 $(728,216)$5,658,452 $(728,937)
Schedule of the Gross Realized Gains and Tax Expense, Available-for-Sale
The following table presents the gross realized gains from the sales and impairment write-off of AFS debt securities and the related tax expense (benefit) included in earnings for the three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
($ in thousands)20242023
Gross realized gains from sales
$49 $— 
Impairment write-off (1)
$— $(10,000)
Related tax expense (benefit)
$14 $(2,956)
(1)During the first quarter of 2023, the Company recognized a $10 million impairment write-off on a subordinated debt security as a component of noninterest income in the Company’s Consolidated Statement of Income.
Schedule of Composition of Interest Income on Debt Securities
The following table presents the composition of interest income on debt securities for the three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
($ in thousands)20242023
Taxable interest$70,328 $61,049 
Nontaxable interest5,064 4,882 
Total interest income on debt securities$75,392 $65,931 
Schedule Of Contractual Maturities And Weighted Average Yields Of AFS And HTM Debt Securities
The following tables present the contractual maturities, amortized cost, fair value and weighted-average yields of AFS and HTM debt securities as of March 31, 2024. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties.
($ 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$34,901 $641,389 $— $— $676,290 
Fair value33,920 587,174 — — 621,094 
Weighted-average yield (1)
1.83 %1.17 %— %— %1.20 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost51,238 94,159 127,833 137,446 410,676 
Fair value51,163 90,935 106,727 111,977 360,802 
Weighted-average yield (1)
4.94 %3.16 %1.60 %2.33 %2.62 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost3,219 36,135 137,555 5,565,799 5,742,708 
Fair value3,130 34,513 125,890 5,284,485 5,448,018 
Weighted-average yield (1) (2)
2.68 %3.15 %2.73 %5.32 %5.24 %
Municipal securities
Amortized cost2,240 34,998 9,621 249,501 296,360 
Fair value2,219 32,747 8,885 214,644 258,495 
Weighted-average yield (1) (2)
3.39 %2.23 %3.22 %2.23 %2.27 %
Non-agency mortgage-backed securities
Amortized cost82,941 46,116 — 854,482 983,539 
Fair value82,055 45,322 — 726,276 853,653 
Weighted-average yield (1)
3.67 %3.70 %— %2.54 %2.69 %
Corporate debt securities
Amortized cost— — 349,501 304,000 653,501 
Fair value— — 294,845 207,802 502,647 
Weighted-average yield (1)
— %— %3.50 %1.97 %2.79 %
Foreign government bonds
Amortized cost32,724 105,868 50,000 50,000 238,592 
Fair value32,665 106,471 49,640 38,420 227,196 
Weighted-average yield (1)
3.01 %2.28 %5.72 %1.50 %2.94 %
Asset-backed securities
Amortized cost— — — 41,287 41,287 
Fair value— — — 40,712 40,712 
Weighted-average yield (1)
— %— %— %6.06 %6.06 %
CLOs
Amortized cost— — 69,000 20,000 89,000 
Fair value— — 67,924 19,927 87,851 
Weighted-average yield (1)
— %— %7.10 %6.84 %7.04 %
Total AFS debt securities
Amortized cost$207,263 $958,665 $743,510 $7,222,515 $9,131,953 
Fair value$205,152 $897,162 $653,911 $6,644,243 $8,400,468 
Weighted-average yield (1)
3.55 %1.72 %3.51 %4.67 %4.24 %
($ 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$—$530,921$—$—$530,921
Fair value—485,400——485,400
Weighted-average yield (1)
— %1.05 %— %— %1.05 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost——343,666659,0311,002,697
Fair value——291,586514,213805,799
Weighted-average yield (1)
— %— %1.90 %1.89 %1.90 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost—4,85294,5361,127,0311,226,419
Fair value—4,40179,571895,298979,270
Weighted-average yield (1) (2)
— %1.40 %1.59 %1.69 %1.68 %
Municipal securities
Amortized cost———188,605188,605
Fair value———144,009144,009
Weighted-average yield (1) (2)
— %— %— %1.99 %1.99 %
Total HTM debt securities
Amortized cost$—$535,773$438,202$1,974,667$2,948,642
Fair value$—$489,801$371,157$1,553,520$2,414,478
Weighted-average yield (1)
— %1.05 %1.83 %1.79 %1.66 %
(1)Weighted-average yields are computed based on amortized cost balances.
(2)Yields on tax-exempt securities are not presented on a tax-equivalent basis.
Schedule Of Restricted Equity Securities
The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of March 31, 2024 and December 31, 2023:
($ in thousands)March 31, 2024December 31, 2023
Federal Reserve Bank of San Francisco (“FRBSF”) stock
$62,858 $62,561 
FHLB stock101,544 17,250 
Total restricted equity securities$164,402 $79,811