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Securities
 3 Months Ended
Mar. 31, 2025
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 March 31, 2025 and December 31, 2024:
March 31, 2025
($ in thousands)
Amortized Cost (1)
Gross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$961,291 $— $(30,310)$930,981 
U.S. government agency and U.S. government-sponsored enterprise debt securities306,428 — (38,022)268,406 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2):
Commercial mortgage-backed securities455,534 2,616 (39,600)418,550 
Residential mortgage-backed securities9,204,823 23,770 (223,031)9,005,562 
Municipal securities286,374 — (40,520)245,854 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities268,913 1 (32,314)236,600 
Residential mortgage-backed securities502,410 — (72,342)430,068 
Corporate debt securities653,500 — (116,958)536,542 
Foreign government bonds244,459 985 (11,253)234,191 
Asset-backed securities34,237 — (502)33,735 
CLOs44,500 — (77)44,423 
Total AFS debt securities12,962,469 27,372 (604,929)12,384,912 
HTM debt securities:
U.S. Treasury securities536,459 — (27,846)508,613 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,005,347 — (173,991)831,356 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3):
Commercial mortgage-backed securities481,507 — (78,425)403,082 
Residential mortgage-backed securities694,808 — (141,240)553,568 
Municipal securities187,220 — (48,547)138,673 
Total HTM debt securities2,905,341 — (470,049)2,435,292 
Total debt securities$15,867,810 $27,372 $(1,074,978)$14,820,204 
December 31, 2024
($ in thousands)
Amortized Cost (1)
Gross Unrealized GainsGross Unrealized LossesFair Value
AFS debt securities:
U.S. Treasury securities$676,300 $— $(38,035)$638,265 
U.S. government agency and U.S. government-sponsored enterprise debt securities308,220 — (45,633)262,587 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (2):
Commercial mortgage-backed securities472,535 886 (47,207)426,214 
Residential mortgage-backed securities7,974,768 12,278 (248,786)7,738,260 
Municipal securities287,301 38 (37,186)250,153 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities294,235 2 (35,767)258,470 
Residential mortgage-backed securities514,527 — (80,919)433,608 
Corporate debt securities653,500 — (127,334)526,166 
Foreign government bonds244,803 2,069 (12,992)233,880 
Asset-backed securities35,086 — (371)34,715 
CLOs44,500 — (7)44,493 
Total AFS debt securities 11,505,775 15,273 (674,237)10,846,811 
HTM debt securities:
U.S. Treasury securities535,080 — (35,222)499,858 
U.S. government agency and U.S. government-sponsored enterprise debt securities1,004,479 — (200,259)804,220 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities (3):
Commercial mortgage-backed securities486,388 — (91,461)394,927 
Residential mortgage-backed securities703,833 — (155,626)548,207 
Municipal securities187,633 — (47,091)140,542 
Total HTM debt securities2,917,413 — (529,659)2,387,754 
Total debt securities$14,423,188 $15,273 $(1,203,896)$13,234,565 
(1)Amortized cost excludes accrued interest receivables which are presented within Other assets on the Consolidated Balance Sheet. As of March 31, 2025 and December 31, 2024, the accrued interest receivables were $44 million and $45 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 2024 Form 10-K.
(2)Includes GNMA AFS debt securities totaling $8.6 billion of amortized cost and $8.5 billion of fair value as of March 31, 2025, and $7.3 billion of amortized cost and $7.2 billion of fair value as of December 31, 2024.
(3)Includes GNMA HTM debt securities totaling $84 million of amortized cost and $68 million of fair value as of March 31, 2025, and $86 million of amortized cost and $68 million of fair value of as of December 31, 2024.
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 March 31, 2025 and December 31, 2024.
March 31, 2025
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$— $— $610,981 $(30,310)$610,981 
(1)
$(30,310)
U.S. government agency and U.S. government sponsored enterprise debt securities— — 268,406 (38,022)268,406 (38,022)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities2,476 (25)358,728 (39,575)361,204 (39,600)
Residential mortgage-backed securities3,179,008 (10,604)1,524,704 (212,427)4,703,712 (223,031)
Municipal securities4,814 (40)241,040 (40,480)245,854 (40,520)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities4,433 (1)221,078 (32,313)225,511 (32,314)
Residential mortgage-backed securities— — 430,068 (72,342)430,068 (72,342)
Corporate debt securities— — 536,542 (116,958)536,542 (116,958)
Foreign government bonds— — 88,747 (11,253)88,747 (11,253)
Asset-backed securities— — 33,735 (502)33,735 (502)
CLOs— — 44,423 (77)44,423 (77)
Total AFS debt securities$3,190,731 $(10,670)$4,358,452 $(594,259)$7,549,183 $(604,929)
(1)Excludes a short-term U.S. Treasury security of $320 million which had no unrealized gains or losses.
December 31, 2024
Less Than 12 Months12 Months or MoreTotal
($ in thousands)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
AFS debt securities:
U.S. Treasury securities$— $— $638,265 $(38,035)$638,265 $(38,035)
U.S. government agency and U.S. government-sponsored enterprise debt securities— — 262,587 (45,633)262,587 (45,633)
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities2,741 (30)377,756 (47,177)380,497 (47,207)
Residential mortgage-backed securities2,719,228 (16,404)1,528,252 (232,382)4,247,480 (248,786)
Municipal securities2,763 (95)245,360 (37,091)248,123 (37,186)
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities10,767 (332)235,668 (35,435)246,435 (35,767)
Residential mortgage-backed securities— — 433,608 (80,919)433,608 (80,919)
Corporate debt securities— — 526,166 (127,334)526,166 (127,334)
Foreign government bonds— — 87,008 (12,992)87,008 (12,992)
Asset-backed securities— — 34,715 (371)34,715 (371)
CLOs— — 44,493 (7)44,493 (7)
Total AFS debt securities$2,735,499 $(16,861)$4,413,878 $(657,376)$7,149,377 $(674,237)

As of March 31, 2025, the Company had 536 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 289 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 66 corporate debt securities and 79 non-agency mortgage-backed securities. In comparison, as of December 31, 2024, the Company had 541 AFS debt securities in a gross unrealized loss position with no credit impairment, primarily consisting of 290 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 66 corporate debt securities, and 83 non-agency mortgage-backed securities.

Allowance for Credit Losses on Available-for-Sale Debt Securities

The Company evaluates each AFS debt security where the fair value declines below amortized cost. 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 2024 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 debt and mortgage-backed securities are issued, guaranteed, or otherwise supported by the U.S. government and have a zero credit loss assumption. The remaining securities that were in an unrealized loss position as of March 31, 2025 were mainly comprised of the following:

•Corporate debt securities — The market value decline as of March 31, 2025 was primarily due to interest rate movement and spread widening. A portion of the corporate debt securities is comprised of subordinated debt securities issued by U.S. banks. These securities are nearly all rated investment grade by nationally recognized statistical rating organizations (“NRSROs”) and issued by well-capitalized financial institutions with strong profitability. The contractual payments from these corporate debt securities have been and are expected to be received on time. The Company will continue to monitor the market developments in the banking sector and the credit performance of these securities.
•Non-agency mortgage-backed securities — The market value decline as of March 31, 2025 was primarily due to interest rate movement and spread widening. Since these securities are nearly all 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.

As of both March 31, 2025 and December 31, 2024, the Company intended to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company would 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 provided against these securities as of both March 31, 2025 and December 31, 2024. In addition, there was no provision for credit losses recognized for the three months ended March 31, 2025 and 2024.

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. For additional information on the Company’s credit loss methodology, refer to Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Allowance for Credit Losses on Held-to-Maturity Debt Securities to the Consolidated Financial Statements in the Company’s 2024 Form 10-K.

The Company monitors the credit quality of the HTM debt securities using external credit ratings. As of March 31, 2025, 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 both March 31, 2025 and December 31, 2024. 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.

Realized Gains

The following table presents the gross realized gains from the sales of AFS debt securities and the related tax expense included in earnings for the three months ended March 31, 2025 and 2024:
Three months ended March 31,
($ in thousands)20252024
Gross realized gains from sales$131 $49 
Related tax expense
$39 $14 

Interest Income

The following table presents the composition of interest income on debt securities for the three months ended March 31, 2025 and 2024:
Three months ended March 31,
($ in thousands)20252024
Taxable interest$142,890 $70,328 
Nontaxable interest4,894 5,064 
Total interest income on debt securities$147,784 $75,392 
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 March 31, 2025. 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$369,423 $591,868 $— $— $961,291 
Fair value368,978 562,003 — — 930,981 
Weighted-average yield (1)
4.10 %1.06 %— %— %2.23 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost16,596 26,929 201,232 61,671 306,428 
Fair value16,367 25,806 174,409 51,824 268,406 
Weighted-average yield (1)
0.93 %1.36 %2.00 %2.00 %1.89 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost5,057 74,745 115,210 9,465,345 9,660,357 
Fair value5,018 71,910 105,670 9,241,514 9,424,112 
Weighted-average yield (1) (2)
3.56 %2.77 %2.86 %5.06 %5.02 %
Municipal securities
Amortized cost6,637 25,434 8,111 246,192 286,374 
Fair value6,551 24,365 7,591 207,347 245,854 
Weighted-average yield (1) (2)
2.09 %2.17 %3.38 %2.23 %2.25 %
Non-agency mortgage-backed securities
Amortized cost20,756 5,784 4,434 740,349 771,323 
Fair value20,558 5,641 4,433 636,036 666,668 
Weighted-average yield (1)
6.10 %3.10 %5.51 %2.38 %2.51 %
Corporate debt securities
Amortized cost— — 349,500 304,000 653,500 
Fair value— — 318,192 218,350 536,542 
Weighted-average yield (1)
— %— %3.50 %1.97 %2.79 %
Foreign government bonds
Amortized cost81,569 62,890 50,000 50,000 244,459 
Fair value82,030 63,414 49,749 38,998 234,191 
Weighted-average yield (1)
2.56 %2.16 %4.74 %1.50 %2.69 %
Asset-backed securities
Amortized cost— — — 34,237 34,237 
Fair value— — — 33,735 33,735 
Weighted-average yield (1)
— %— %— %5.05 %5.05 %
CLOs
Amortized cost— — 44,500 — 44,500 
Fair value— — 44,423 — 44,423 
Weighted-average yield (1)
— %— %5.75 %— %5.75 %
Total AFS debt securities
Amortized cost$500,038 $787,650 $772,987 $10,901,794 $12,962,469 
Fair value$499,502 $753,139 $704,467 $10,427,804 $12,384,912 
Weighted-average yield (1)
3.80 %1.37 %3.23 %4.70 %4.37 %
($ 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$—$536,459$—$—$536,459
Fair value—508,613——508,613
Weighted-average yield (1)
— %1.05 %— %— %1.05 %
U.S. government agency and U.S. government-sponsored enterprise debt securities
Amortized cost——372,206633,1411,005,347
Fair value——325,760505,596831,356
Weighted-average yield (1)
— %— %1.89 %1.90 %1.90 %
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities
Amortized cost—18,499127,0931,030,7231,176,315
Fair value—16,931108,560831,159956,650
Weighted-average yield (1) (2)
— %1.67 %1.66 %1.69 %1.69 %
Municipal securities
Amortized cost———187,220187,220
Fair value———138,673138,673
Weighted-average yield (1) (2)
— %— %— %2.01 %2.01 %
Total HTM debt securities
Amortized cost$—$554,958$499,299$1,851,084$2,905,341
Fair value$—$525,544$434,320$1,475,428$2,435,292
Weighted-average yield (1)
— %1.07 %1.83 %1.80 %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.

As of March 31, 2025 and December 31, 2024, AFS and HTM debt securities with carrying values of $5.7 billion and $5.4 billion, respectively, were pledged to secure borrowings, public deposits 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 March 31, 2025 and December 31, 2024:
($ in thousands)March 31, 2025December 31, 2024
Federal Reserve Bank (“FRB”) of San Francisco stock
$64,265 $63,930 
FHLB stock101,329 101,329 
Total restricted equity securities$165,594 $165,259