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Investment Securities
 9 Months Ended
Sep. 30, 2021
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, 2022 were as follows:
($ in Thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
(Losses)		Fair Value
AFS investment securities
U. S. Treasury securities$124,403 $— $(16,119)$108,284 
Agency securities15,000 — (1,601)13,399 
Obligations of state and political subdivisions (municipal securities)356,539 28 (15,669)340,898 
Residential mortgage-related securities
FNMA / FHLMC1,882,668 413 (227,020)1,656,061 
GNMA82,263 — (4,234)78,029 
Commercial mortgage-related securities
FNMA / FHLMC19,123 — (1,837)17,286 
GNMA111,286 — (4,192)107,094 
Asset backed securities
FFELP163,314 — (4,757)158,556 
SBA4,797 20 (45)4,772 
Other debt securities3,000 — (67)2,933 
Total AFS investment securities$2,762,393 $461 $(275,542)$2,487,312 
HTM investment securities
U. S. Treasury securities$998 $— $(66)$932 
Obligations of state and political subdivisions (municipal securities)1,737,135 273 (272,360)1,465,048 
Residential mortgage-related securities
FNMA / FHLMC961,946 32,561 (182,409)812,099 
GNMA43,168 27 (3,872)39,323 
Private-label369,711 12,167 (74,906)306,972 
Commercial mortgage-related securities
FNMA/FHLMC762,377 16,045 (176,822)601,600 
GNMA76,217 716 (7,147)69,787 
Total HTM investment securities$3,951,553 $61,791 $(717,582)$3,295,760 
During the first quarter of 2022, the Corporation redesignated approximately $1.6 billion of mortgage-related securities from AFS to HTM. The reclassification of these investment securities was accounted for at fair value. Management elected to transfer these investment securities as the Corporation has the positive intent and ability to hold these investment securities to maturity. See Note 16 for additional information on the unrealized losses on investment securities transferred from AFS to HTM.
The amortized cost and fair values of AFS and HTM securities at December 31, 2021 were as follows:
($ in Thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
(Losses)		Fair Value
AFS investment securities
U. S. Treasury securities$124,291 $— $(1,334)$122,957 
Agency securities15,000 — (103)14,897 
Obligations of state and political subdivisions (municipal securities)381,517 18,940 — 400,457 
Residential mortgage-related securities
FNMA / FHLMC2,709,399 3,729 (21,249)2,691,879 
GNMA66,189 1,591 — 67,780 
Private-label332,028 31 (2,335)329,724 
Commercial mortgage-related securities
FNMA / FHLMC357,240 2,686 (9,302)350,623 
GNMA165,439 1,360 — 166,799 
Asset backed securities
FFELP177,974 475 (1,123)177,325 
SBA6,594 39 (54)6,580 
Other debt securities3,000 — (6)2,994 
Total AFS investment securities$4,338,671 $28,850 $(35,506)$4,332,015 
HTM investment securities
U. S. Treasury securities$1,000 $1 $— $1,001 
Obligations of state and political subdivisions (municipal securities)1,628,759 113,179 (1,951)1,739,988 
Residential mortgage-related securities
FNMA / FHLMC34,347 1,792 — 36,139 
GNMA48,053 1,578 — 49,631 
Commercial mortgage-related securities
FNMA / FHLMC425,937 122 (6,659)419,400 
GNMA100,907 1,799 (200)102,506 
 Total HTM investment securities$2,239,003 $118,471 $(8,809)$2,348,664 
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of AFS and HTM securities at September 30, 2022, are shown below:
 AFSHTM
($ in Thousands)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in one year or less$9,023 $9,000 $16,969 $16,931 
Due after one year through five years105,078 97,875 32,282 31,668 
Due after five years through ten years347,517 323,983 164,216 157,427 
Due after ten years37,325 34,656 1,524,666 1,259,955 
Total debt securities498,943 465,514 1,738,134 1,465,980 
Residential mortgage-related securities
FNMA / FHLMC1,882,668 1,656,061 961,946 812,099 
GNMA82,263 78,029 43,168 39,323 
Private-label— — 369,711 306,972 
Commercial mortgage-related securities
FNMA / FHLMC19,123 17,286 762,377 601,600 
GNMA111,286 107,094 76,217 69,787 
Asset backed securities
FFELP 163,314 158,556 — — 
SBA4,797 4,772 — — 
Total investment securities$2,762,393 $2,487,312 $3,951,553 $3,295,760 
Ratio of fair value to amortized cost90.0 %83.4 %
On a quarterly basis, the Corporation refreshes the credit quality of each HTM security. The following table summarizes the credit quality indicators of HTM securities at amortized cost at September 30, 2022:
($ in Thousands)AAAAAANot RatedTotal
U. S. Treasury securities$998 $— $— $— $998 
Obligations of state and political subdivisions (municipal securities)807,240 920,765 7,972 1,158 1,737,135 
Residential mortgage-related securities
FNMA / FHLMC961,946 — — — 961,946 
GNMA43,168 — — — 43,168 
Private-label369,711 — — — 369,711 
Commercial mortgage-related securities
FNMA / FHLMC762,377 — — — 762,377 
GNMA 76,217 — — — 76,217 
Total HTM securities$3,021,657 $920,765 $7,972 $1,158 $3,951,553 
The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2021:
($ in Thousands)AAAAAANot RatedTotal
U. S. Treasury securities$1,000 $— $— $— $1,000 
Obligations of state and political subdivisions (municipal securities)702,399 914,591 10,873 896 1,628,759 
Residential mortgage-related securities
FNMA / FHLMC34,347 — — — 34,347 
GNMA48,053 — — — 48,053 
Commercial mortgage-related securities
FNMA / FHLMC425,937 — — — 425,937 
GNMA 100,907 — — — 100,907 
Total HTM securities$1,312,642 $914,591 $10,873 $896 $2,239,003 
The following table summarizes gross realized gains and losses on AFS securities, the gain on sale and net write-up of equity securities, and proceeds from the sale of investment securities for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended Sep 30,Nine Months Ended Sep 30,
($ in Thousands)2022202120222021
Gross gains on AFS securities$— $— $21 $421 
Gross (losses) on AFS securities— — (8)(437)
Gain on sale and net write-up of equity securities5,664 — 5,664 — 
Investment securities gains (losses), net$5,664 $— $5,676 $(16)
Proceeds from sales of investment securities$248 $— $1,309 $158,708 
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.
During the second quarter of 2021, the Corporation sold $107 million of lower yielding FFELP student loan asset backed securities at an immaterial gain and reinvested the proceeds into higher yielding mortgage backed securities. During the first quarter of 2021, the Corporation sold $51 million of lower yielding U.S. Treasury and Agency securities at an immaterial loss to take advantage of the steeper yield curve by reinvesting the proceeds into similar but higher yielding, longer duration securities.
Investment securities with a carrying value of $2.4 billion and $2.3 billion at September 30, 2022 and December 31, 2021, respectively, were pledged to secure certain deposits or for other purposes.
Accrued interest receivable on HTM securities totaled $16 million and $15 million at September 30, 2022 and December 31, 2021, respectively. Accrued interest receivable on AFS securities totaled $8 million and $9 million at September 30, 2022 and December 31, 2021, 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, 2022 and 2021.
A security is considered past due once it is 30 days past due under the terms of the agreement. At both September 30, 2022 and December 31, 2021, the Corporation had no past due HTM securities.
The allowance for credit losses on HTM securities was approximately $61,000 at September 30, 2022 and approximately $55,000 at December 31, 2021, 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, 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 securities1 $(651)$4,293 6 $(15,468)$103,991 $(16,119)$108,284 
Agency securities— — — 1 (1,601)13,399 (1,601)13,399 
Obligations of state and political subdivisions (municipal securities)605 (15,669)328,806 — — — (15,669)328,806 
Residential mortgage-related securities
FNMA / FHLMC68 (109,670)827,116 40 (117,350)802,215 (227,020)1,629,330 
GNMA17 (4,234)78,029 — — — (4,234)78,029 
Commercial mortgage-related securities
FNMA / FHLMC1 (1,837)17,286 — — — (1,837)17,286 
GNMA36 (4,192)107,094 — — — (4,192)107,094 
Asset backed securities
FFELP5 (1,735)66,349 10 (3,022)92,207 (4,757)158,556 
SBA1 — 350 7 (45)2,218 (45)2,569 
Other debt securities2 (21)1,979 1 (46)954 (67)2,933 
Total736 $(138,010)$1,431,302 65 $(137,533)$1,014,983 $(275,542)$2,446,286 
HTM investment securities
U.S. Treasury securities1 $(66)$932 — $— $— $(66)$932 
Obligations of state and political subdivisions (municipal securities)1,123 (244,555)1,350,294 29 (27,805)53,371 (272,360)1,403,665 
Residential mortgage-related securities
FNMA / FHLMC87 (105,032)496,903 11 (77,377)314,998 (182,409)811,900 
GNMA78 (3,872)39,323 — — — (3,872)39,323 
Private-label16 (59,733)252,382 2 (15,173)54,590 (74,906)306,972 
 Commercial mortgage-related securities
FNMA / FHLMC13 (76,439)221,584 30 (100,382)380,012 (176,822)601,596 
GNMA13 (5,252)58,883 1 (1,895)10,904 (7,147)69,787 
Total1,331 $(494,950)$2,420,301 73 $(222,632)$813,874 $(717,582)$3,234,175 
For comparative purposes, the following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2021:
 Less than 12 months12 months or moreTotal
($ 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 securities7 $(1,334)$122,957 — $— $— $(1,334)$122,957 
Agency securities1 (103)14,897 — — — (103)14,897 
Residential mortgage-related securities
FNMA / FHLMC74 (21,249)2,172,837 — — — (21,249)2,172,837 
Private-label12 (2,335)248,617 — — — (2,335)248,617 
FNMA / FHLMC commercial mortgage-related securities19 (9,302)328,568 — — — (9,302)328,568 
Asset backed securities
FFELP4 (256)64,282 8 (867)62,576 (1,123)126,858 
SBA— — — 9 (54)3,902 (54)3,902 
Other debt securities3 (6)2,994 — — — (6)2,994 
Total120 $(34,586)$2,955,152 17 $(920)$66,478 $(35,506)$3,021,630 
HTM investment securities
Obligations of state and political subdivisions (municipal securities)49 $(1,951)$112,038 — $— $— $(1,951)$112,038 
Commercial mortgage-related securities
FNMA/FHLMC18 (6,272)388,072 1 (387)10,775 (6,659)398,847 
GNMA5 (200)33,468 — — — (200)33,468 
Total72 $(8,422)$533,577 1 $(387)$10,775 $(8,809)$544,352 
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, 2022 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 $193 million and $82 million at September 30, 2022 and December 31, 2021, respectively. The Corporation had Federal Reserve Bank stock of $87 million at both September 30, 2022 and December 31, 2021. Accrued interest receivable on FHLB stock totaled $2 million and approximately $975,000 at September 30, 2022 and December 31, 2021, respectively. There was approximately $819,000 of accrued interest receivable on Federal Reserve Bank Stock at September 30, 2022 and none at December 31, 2021. 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. At September 30, 2022 and December 31, 2021, the Corporation had equity securities with readily determinable fair values of $6 million and $5 million, respectively.
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, was carried at $19 million and $14 million at September 30, 2022 and December 31, 2021, respectively