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Investment Securities
 9 Months Ended
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities Investment securities are designated as AFS, HTM, or equity on the consolidated balance sheets at the time of purchase. The amortized cost and fair values of AFS and HTM securities at September 30, 2023 were as follows:
($ in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
(Losses)		Fair Value
AFS investment securities
U.S. Treasury securities$124,555 $— $(15,531)$109,024 
Agency securities15,000 — (1,410)13,590 
Obligations of state and political subdivisions (municipal securities)226,808 — (16,492)210,317 
Residential mortgage-related securities:
FNMA/FHLMC1,678,641 115 (241,997)1,436,759 
GNMA1,416,569 — (31,898)1,384,670 
Commercial mortgage-related securities:
FNMA/FHLMC18,779 — (2,625)16,154 
GNMA188,667 — (12,193)176,474 
Asset backed securities:
FFELP140,881 83 (2,450)138,514 
SBA3,299 9 (46)3,261 
Other debt securities3,000 — (85)2,915 
Total AFS investment securities$3,816,198 $207 $(324,727)$3,491,679 
HTM investment securities
U.S. Treasury securities$999 $— $(51)$948 
Obligations of state and political subdivisions (municipal securities)1,700,162 12 (279,659)1,420,516 
Residential mortgage-related securities:
FNMA/FHLMC956,107 28,038 (220,577)763,567 
GNMA50,489 15 (5,192)45,312 
Private-label349,410 10,228 (85,120)274,518 
Commercial mortgage-related securities:
FNMA/FHLMC782,291 13,329 (206,522)589,097 
GNMA61,025 421 (9,506)51,940 
Total HTM investment securities$3,900,483 $52,043 $(806,627)$3,145,898 
The amortized cost and fair values of AFS and HTM securities at December 31, 2022 were as follows:
($ in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
(Losses)		Fair Value
AFS investment securities
U.S. Treasury securities$124,441 $— $(15,063)$109,378 
Agency securities15,000 — (1,468)13,532 
Obligations of state and political subdivisions (municipal securities)235,693 96 (5,074)230,714 
Residential mortgage-related securities:
FNMA/FHLMC1,820,642 404 (216,436)1,604,610 
GNMA502,537 314 (5,255)497,596 
Commercial mortgage-related securities:
FNMA/FHLMC19,038 — (1,896)17,142 
GNMA115,031 — (4,569)110,462 
Asset backed securities:
FFELP157,138 — (5,947)151,191 
SBA4,512 15 (51)4,477 
Other debt securities3,000 — (78)2,922 
Total AFS investment securities$2,997,032 $830 $(255,837)$2,742,025 
HTM investment securities
U.S. Treasury securities$999 $— $(62)$936 
Obligations of state and political subdivisions (municipal securities)1,732,351 1,994 (182,697)1,551,647 
Residential mortgage-related securities:
FNMA/FHLMC961,231 31,301 (175,760)816,771 
GNMA52,979 85 (3,436)49,628 
Private-label364,728 11,697 (72,920)303,505 
Commercial mortgage-related securities:
FNMA/FHLMC778,796 15,324 (178,281)615,839 
GNMA69,369 577 (7,254)62,691 
 Total HTM investment securities$3,960,451 $60,978 $(620,411)$3,401,018 
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of AFS and HTM securities at September 30, 2023, are shown below:
 AFSHTM
($ in thousands)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in one year or less$7,436 $7,368 $16,715 $16,673 
Due after one year through five years190,843 170,918 47,774 46,115 
Due after five years through ten years136,473 125,923 155,329 144,145 
Due after ten years34,611 31,636 1,481,344 1,214,531 
Total debt securities369,363 335,846 1,701,161 1,421,464 
Residential mortgage-related securities:
FNMA/FHLMC1,678,641 1,436,759 956,107 763,567 
GNMA1,416,569 1,384,670 50,489 45,312 
Private-label— — 349,410 274,518 
Commercial mortgage-related securities:
FNMA/FHLMC18,779 16,154 782,291 589,097 
GNMA188,667 176,474 61,025 51,940 
Asset backed securities:
FFELP 140,881 138,514 — — 
SBA3,299 3,261 — — 
Total investment securities$3,816,198 $3,491,679 $3,900,483 $3,145,898 
Ratio of fair value to amortized cost91.5 %80.7 %
On a quarterly basis, the Corporation refreshes the credit quality of each HTM security. The following table summarizes the credit quality indicators of HTM securities at amortized cost at September 30, 2023:
($ in thousands)AAAAAANot RatedTotal
U.S. Treasury securities$999 $— $— $— $999 
Obligations of state and political subdivisions (municipal securities)769,052 923,707 6,248 1,156 1,700,162 
Residential mortgage-related securities:
FNMA/FHLMC956,107 — — — 956,107 
GNMA50,489 — — — 50,489 
Private-label349,410 — — — 349,410 
Commercial mortgage-related securities:
FNMA/FHLMC782,291 — — — 782,291 
GNMA 61,025 — — — 61,025 
Total HTM securities$2,969,372 $923,707 $6,248 $1,156 $3,900,483 
The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2022:
($ in thousands)AAAAAANot RatedTotal
U.S. Treasury securities$999 $— $— $— $999 
Obligations of state and political subdivisions (municipal securities)806,529 917,059 7,604 1,158 1,732,351 
Residential mortgage-related securities:
FNMA/FHLMC961,231 — — — 961,231 
GNMA52,979 — — — 52,979 
Private-label364,728 — — — 364,728 
Commercial mortgage-related securities:
FNMA/FHLMC778,796 — — — 778,796 
GNMA 69,369 — — — 69,369 
Total HTM securities$3,034,630 $917,059 $7,604 $1,158 $3,960,451 
The following table summarizes gross realized gains and losses on AFS securities, net write-up of equity securities, and proceeds from the sale of AFS investment securities for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended Sep 30,Nine Months Ended Sep 30,
($ in thousands)2023202220232022
Gross realized gains on AFS securities$— $— $— $21 
Gross realized (losses) on AFS securities— — — (8)
Gain on sale and net write-up (down) of equity securities(11)5,664 55 5,664 
Investment securities gains (losses), net$(11)$5,664 $55 $5,676 
Proceeds from sales of AFS investment securities$— $— $— $1,061 
During the third quarter of 2022, the Corporation sold its Visa Class B restricted shares obtained in the acquisition of First Staunton, which were carried at a zero-cost basis. The remaining shares, which are carried at fair value, were subsequently written up to reflect the new observable price resulting from that sale.
Investment securities with a carrying value of $1.6 billion and $2.3 billion at September 30, 2023 and December 31, 2022, respectively, were pledged as required to secure certain deposits or for other purposes.
Accrued interest receivable on HTM securities totaled $16 million and $19 million at September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable on AFS securities totaled $14 million and $9 million at September 30, 2023 and December 31, 2022, respectively. Accrued interest receivable on both HTM and AFS securities is included in interest receivable on the consolidated balance sheets. There was no interest income reversed for investments going into nonaccrual at both September 30, 2023 and December 31, 2022.
A security is considered past due once it is 30 days past due under the terms of the agreement. At both September 30, 2023 and December 31, 2022, the Corporation had no past due HTM securities.

The allowance for credit losses on HTM securities was approximately $67,000 at September 30, 2023 and approximately $54,000 at December 31, 2022, attributable entirely to the Corporation's municipal securities, included in HTM investment securities, net, at amortized cost on the consolidated balance sheets. The Corporation also holds U.S. Treasury, municipal, and mortgage-related securities issued by the U.S. government or a GSE which are backed by the full faith and credit of the U.S. government and private-label residential mortgage-related securities that have credit enhancement which covers the first 15% of losses and, as a result, no allowance for credit losses has been recorded related to these securities.
The following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at September 30, 2023:
 Less than 12 months12 months or moreTotal
($ in thousands)Number
of
Securities		Unrealized
(Losses)		Fair
Value		Number
of
Securities		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value
AFS investment securities
U.S. Treasury securities— $— $— 7 $(15,531)$109,024 $(15,531)$109,024 
Agency securities— — — 1 (1,410)13,590 (1,410)13,590 
Obligations of state and political subdivisions (municipal securities)229 (6,575)108,953 182 (9,916)100,413 (16,492)209,367 
Residential mortgage-related securities:
FNMA/FHLMC20 (1,390)24,258 107 (240,606)1,394,562 (241,997)1,418,820 
GNMA75 (27,131)1,271,478 17 (4,767)61,087 (31,898)1,332,565 
Commercial mortgage-related securities:
FNMA/FHLMC— — — 1 (2,625)16,154 (2,625)16,154 
GNMA9 (5,848)100,659 33 (6,345)75,815 (12,193)176,474 
Asset backed securities:
FFELP— — — 14 (2,450)129,503 (2,450)129,503 
SBA2 (1)620 7 (46)1,525 (46)2,144 
Other debt securities1 (21)979 2 (63)1,937 (85)2,915 
Total336 $(40,967)$1,506,947 371 $(283,760)$1,903,609 $(324,727)$3,410,556 
HTM investment securities
U.S. Treasury securities— $— $— 1 $(51)$948 $(51)$948 
Obligations of state and political subdivisions (municipal securities)586 (48,660)663,360 567 (230,998)743,274 (279,659)1,406,634 
Residential mortgage-related securities:
FNMA/FHLMC31 (2,239)37,996 92 (218,338)725,539 (220,577)763,535 
GNMA8 (466)11,058 78 (4,726)34,253 (5,192)45,312 
Private-label— — — 18 (85,120)274,518 (85,120)274,518 
 Commercial mortgage-related securities:
FNMA/FHLMC2 (2,746)24,130 43 (203,776)564,968 (206,522)589,097 
GNMA— — — 13 (9,506)51,940 (9,506)51,940 
Total627 $(54,112)$736,544 812 $(752,515)$2,395,440 $(806,627)$3,131,984 
For comparative purposes, the following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022:
 Less than 12 months12 months or moreTotal
($ in thousands)Number
of
Securities		Unrealized
(Losses)		Fair
Value		Number
of
Securities		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value
AFS investment securities
U.S. Treasury securities— $— $— 7 $(15,063)$109,378 $(15,063)$109,378 
Agency securities— — — 1 (1,468)13,532 (1,468)13,532 
Obligations of state and political subdivisions (municipal securities)358 (5,066)201,260 4 (8)1,916 (5,074)203,176 
Residential mortgage-related securities:
FNMA/FHLMC24 (31,266)260,986 84 (185,170)1,321,420 (216,436)1,582,406 
GNMA23 (4,415)220,276 2 (840)11,096 (5,255)231,372 
Commercial mortgage-related securities:
FNMA/FHLMC1 (1,896)17,142 — — — (1,896)17,142 
GNMA33 (3,920)101,036 4 (649)9,426 (4,569)110,462 
Asset backed securities:
FFELP3 (1,668)44,304 12 (4,278)106,887 (5,947)151,191 
SBA2 (1)417 6 (50)2,057 (51)2,474 
Other debt securities2 (30)1,970 1 (49)951 (78)2,922 
Total446 $(48,263)$847,391 121 $(207,575)$1,576,665 $(255,837)$2,424,055 
HTM investment securities
U.S. Treasury securities1 $(62)$936 — $— $— $(62)$936 
Obligations of state and political subdivisions (municipal securities)771 (96,282)1,079,216 156 (86,415)231,022 (182,697)1,310,238 
Residential mortgage-related securities:
FNMA/FHLMC79 (18,925)143,201 22 (156,836)671,570 (175,760)814,770 
GNMA81 (3,436)44,476 — — — (3,436)44,476 
Private-label3 (9,509)58,733 15 (63,411)244,772 (72,920)303,505 
Commercial mortgage-related securities:
FNMA/FHLMC4 (3,814)20,338 39 (174,467)576,911 (178,281)597,249 
GNMA8 (2,528)34,612 6 (4,726)28,080 (7,254)62,691 
Total947 $(134,556)$1,381,511 238 $(485,855)$1,752,354 $(620,411)$3,133,865 
The Corporation reviews the AFS investment securities portfolio on a quarterly basis to monitor its credit exposure. A determination as to whether a security’s decline in fair value is the result of credit risk takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Corporation may consider in this impairment analysis include the extent to which the security has been in an unrealized loss position, the change in security rating, financial condition and near-term prospects of the issuer, as well as the security and industry specific economic conditions.
Based on the Corporation’s evaluation, management does not believe any unrealized losses at September 30, 2023 represent credit deterioration as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions. The Corporation does not intend to sell, nor does it believe that it will be required to sell, the securities in an unrealized loss position before recovery of their amortized cost basis.
FHLB and Federal Reserve Bank stocks: The Corporation is required to maintain Federal Reserve Bank stock and FHLB stock as a member bank of both the Federal Reserve System and the FHLB, and in amounts as required by these institutions. These equity securities are “restricted” in that they can only be sold back to the respective institutions or another member institution at par. Therefore, they are less liquid than other marketable equity securities and their fair value is equal to amortized cost. The Corporation had FHLB stock of $182 million and $209 million at September 30, 2023 and December 31, 2022, respectively. The Corporation had Federal Reserve Bank stock of $87 million at both September 30, 2023 and December 31, 2022. Accrued interest receivable on FHLB stock totaled $3 million at both September 30, 2023 and December 31, 2022. There was approximately $958,000 of accrued interest receivable on Federal Reserve Bank Stock at September 30, 2023 and none at December 31, 2022. Accrued interest receivable on both FHLB stock and Federal Reserve Bank stock is included in interest receivable on the consolidated balance sheets.
Equity Securities
Equity securities with readily determinable fair values: The Corporation's portfolio of equity securities with readily determinable fair values is primarily comprised of CRA Qualified Investment mutual funds and other mutual funds. The Corporation had equity securities with readily determinable fair values of $7 million at September 30, 2023 and $6 million at December 31, 2022.
Equity securities without readily determinable fair values: The Corporation's portfolio of equity securities without readily determinable fair values, which primarily consists of Visa Class B restricted shares and an investment in a private SBA loan fund, was carried at $29 million and $19 million at September 30, 2023 and December 31, 2022, respectively.