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Securities (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2024 and December 31, 2023:
September 30, 2024
($ in thousands)
Amortized Cost (1)
Gross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$676,294 $— $(34,721)$641,573 
U.S. government agency and U.S. government-sponsored enterprise debt securities309,277 — (36,829)272,448 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2):
Commercial mortgage-backed securities482,291 770 (38,184)444,877 
Residential mortgage-backed securities7,028,428 35,106 (195,610)6,867,924 
Municipal securities292,041 97 (31,840)260,298 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities348,749 — (32,236)316,513 
Residential mortgage-backed securities548,110 — (68,783)479,327 
Corporate debt securities653,501 — (121,682)531,819 
Foreign government bonds247,907 1,671 (10,709)238,869 
Asset-backed securities36,195 — (460)35,735 
CLOs44,500 — (6)44,494 
Total AFS debt securities10,667,293 37,644 (571,060)10,133,877 
HTM debt securities:
U.S. Treasury securities533,683 — (28,539)505,144 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,003,947 — (155,147)848,800 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3):
Commercial mortgage-backed securities489,133 — (69,765)419,368 
Residential mortgage-backed securities713,634 — (124,829)588,805 
Municipal securities188,002 — (39,767)148,235 
Total HTM debt securities2,928,399 — (418,047)2,510,352 
Total debt securities$13,595,692 $37,644 $(989,107)$12,644,229 
December 31, 2023
($ 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 September 30, 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 $6.4 billion of amortized cost and $6.3 billion of fair value as of September 30, 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 $88 million of amortized cost and $72 million of fair value as of September 30, 2024, and $92 million of amortized cost and $75 million of fair value of as of December 31, 2023.
Schedule of Debt Securities, Held-to-Maturity
The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of AFS and HTM debt securities as of September 30, 2024 and December 31, 2023:
September 30, 2024
($ in thousands)
Amortized Cost (1)
Gross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$676,294 $— $(34,721)$641,573 
U.S. government agency and U.S. government-sponsored enterprise debt securities309,277 — (36,829)272,448 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2):
Commercial mortgage-backed securities482,291 770 (38,184)444,877 
Residential mortgage-backed securities7,028,428 35,106 (195,610)6,867,924 
Municipal securities292,041 97 (31,840)260,298 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities348,749 — (32,236)316,513 
Residential mortgage-backed securities548,110 — (68,783)479,327 
Corporate debt securities653,501 — (121,682)531,819 
Foreign government bonds247,907 1,671 (10,709)238,869 
Asset-backed securities36,195 — (460)35,735 
CLOs44,500 — (6)44,494 
Total AFS debt securities10,667,293 37,644 (571,060)10,133,877 
HTM debt securities:
U.S. Treasury securities533,683 — (28,539)505,144 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,003,947 — (155,147)848,800 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3):
Commercial mortgage-backed securities489,133 — (69,765)419,368 
Residential mortgage-backed securities713,634 — (124,829)588,805 
Municipal securities188,002 — (39,767)148,235 
Total HTM debt securities2,928,399 — (418,047)2,510,352 
Total debt securities$13,595,692 $37,644 $(989,107)$12,644,229 
December 31, 2023
($ 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 September 30, 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 $6.4 billion of amortized cost and $6.3 billion of fair value as of September 30, 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 $88 million of amortized cost and $72 million of fair value as of September 30, 2024, and $92 million of amortized cost and $75 million of fair value of as of December 31, 2023.
Schedule of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of September 30, 2024 and December 31, 2023.
September 30, 2024
Less Than 12 Months12 Months or MoreTotal
($ in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
AFS debt securities:
U.S. Treasury securities$— $— $641,573 $(34,721)$641,573 $(34,721)
U.S. government agency and U.S. government sponsored enterprise debt securities— — 272,448 (36,829)272,448 (36,829)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities— — 403,937 (38,184)403,937 (38,184)
Residential mortgage-backed securities605,736 (665)1,588,241 (194,945)2,193,977 (195,610)
Municipal securities— — 255,356 (31,840)255,356 (31,840)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— — 309,524 (32,236)309,524 (32,236)
Residential mortgage-backed securities— — 479,327 (68,783)479,327 (68,783)
Corporate debt securities— — 531,819 (121,682)531,819 (121,682)
Foreign government bonds— — 89,291 (10,709)89,291 (10,709)
Asset-backed securities— — 35,735 (460)35,735 (460)
CLOs— — 44,494 (6)44,494 (6)
Total AFS debt securities$605,736 $(665)$4,651,745 $(570,395)$5,257,481 $(571,060)
December 31, 2023
Less Than 12 Months12 Months or MoreTotal
($ 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 $(728,937)
Schedule of the Gross Realized Gains and Tax Expense, Available-for-Sale
The following table presents the gross realized gains from the sales and impairment write-off of AFS debt securities and the related tax expense (benefit) included in earnings for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2024202320242023
Gross realized gains from sales$145 $— $1,979 $— 
Impairment write-off (1)
$— $— $— $(10,000)
Related tax expense (benefit) $43 $— $585 $(2,956)
(1)During the first quarter of 2023, the Company recognized a $10 million impairment write-off on a subordinated debt security as a component of Noninterest income in the Company’s Consolidated Statement of Income.
Schedule of Composition of Interest Income on Debt Securities
The following table presents the composition of interest income on debt securities for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2024202320242023
Taxable interest$118,985 $63,877 $296,003 $189,065 
Nontaxable interest4,998 5,901 15,104 15,614 
Total interest income on debt securities$123,983 $69,778 $311,107 $204,679 
Schedule Of Contractual Maturities And Weighted Average Yields Of AFS And HTM Debt Securities
The following tables present the contractual maturities, amortized cost, fair value and weighted-average yields of AFS and HTM debt securities as of September 30, 2024. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties.
($ 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$59,430 $616,864 $— $— $676,294 
Fair value58,770 582,803 — — 641,573 
Weighted-average yield (1)
2.15 %1.12 %— %— %1.21 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost17,972 27,030 176,548 87,727 309,277 
Fair value17,459 25,738 154,620 74,631 272,448 
Weighted-average yield (1)
1.06 %1.13 %1.92 %2.17 %1.88 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost3,537 46,592 133,018 7,327,572 7,510,719 
Fair value3,494 45,121 124,704 7,139,482 7,312,801 
Weighted-average yield (1) (2)
2.72 %2.91 %2.80 %5.49 %5.42 %
Municipal securities
Amortized cost3,140 32,928 8,116 247,857 292,041 
Fair value3,077 31,538 7,728 217,955 260,298 
Weighted-average yield (1) (2)
0.88 %2.37 %3.38 %2.23 %2.26 %
Non-agency mortgage-backed securities
Amortized cost74,825 16,834 9,347 795,853 896,859 
Fair value74,153 16,669 9,304 695,714 795,840 
Weighted-average yield (1)
4.44 %3.60 %6.04 %2.46 %2.68 %
Corporate debt securities
Amortized cost— — 349,501 304,000 653,501 
Fair value— — 307,110 224,709 531,819 
Weighted-average yield (1)
— %— %3.50 %1.97 %2.79 %
Foreign government bonds
Amortized cost26,238 121,669 50,000 50,000 247,907 
Fair value26,303 123,275 49,744 39,547 238,869 
Weighted-average yield (1)
3.23 %2.22 %5.74 %1.50 %2.90 %
Asset-backed securities
Amortized cost— — — 36,195 36,195 
Fair value— — — 35,735 35,735 
Weighted-average yield (1)
— %— %— %6.01 %6.01 %
CLOs
Amortized cost— — 44,500 — 44,500 
Fair value— — 44,494 — 44,494 
Weighted-average yield (1)
— %— %6.74 %— %6.74 %
Total AFS debt securities
Amortized cost$185,142 $861,917 $771,030 $8,849,204 $10,667,293 
Fair value$183,256 $825,144 $697,704 $8,427,773 $10,133,877 
Weighted-average yield (1)
3.11 %1.47 %3.38 %4.95 %4.52 %
($ 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$—$533,683$—$—$533,683
Fair value—505,144——505,144
Weighted-average yield (1)
— %1.05 %— %— %1.05 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost——368,217635,7301,003,947
Fair value——326,454522,346848,800
Weighted-average yield (1)
— %— %1.89 %1.90 %1.90 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost—4,70394,4651,103,5991,202,767
Fair value—4,40283,151920,6201,008,173
Weighted-average yield (1) (2)
— %1.43 %1.61 %1.70 %1.69 %
Municipal securities
Amortized cost———188,002188,002
Fair value———148,235148,235
Weighted-average yield (1) (2)
— %— %— %2.00 %2.00 %
Total HTM debt securities
Amortized cost$—$538,386$462,682$1,927,331$2,928,399
Fair value$—$509,546$409,605$1,591,201$2,510,352
Weighted-average yield (1)
— %1.05 %1.83 %1.79 %1.66 %
(1)Weighted-average yields are computed based on amortized cost balances.
(2)Yields on tax-exempt securities are not presented on a tax-equivalent basis.
Schedule Of Restricted Equity Securities
The following table presents the restricted equity securities included in Other assets on the Consolidated Balance Sheet as of September 30, 2024 and December 31, 2023:
($ in thousands)September 30, 2024December 31, 2023
Federal Reserve Bank (“FRB”) of San Francisco stock
$63,608 $62,561 
FHLB stock101,300 17,250 
Total restricted equity securities$164,908 $79,811