Investment Securities (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Investment securities available for sale |
Investment securities are classified 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 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 securities | 15,000 | | — | | (1,468) | | 13,532 | | | Obligations of state and political subdivisions (municipal securities) | 235,693 | | 96 | | (5,074) | | 230,714 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 1,820,642 | | 404 | | (216,436) | | 1,604,610 | | | GNMA | 502,537 | | 314 | | (5,255) | | 497,596 | | | | | | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,038 | | — | | (1,896) | | 17,142 | | | GNMA | 115,031 | | — | | (4,569) | | 110,462 | | | Asset backed securities | | | | | | FFELP | 157,138 | | — | | (5,947) | | 151,191 | | | SBA | 4,512 | | 15 | | (51) | | 4,477 | | | Other debt securities | 3,000 | | — | | (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 / FHLMC | 961,231 | | 31,301 | | (175,760) | | 816,771 | | | GNMA | 52,979 | | 85 | | (3,436) | | 49,628 | | | Private-label | 364,728 | | 11,697 | | (72,920) | | 303,505 | | | Commercial mortgage-related securities | | | | | | FNMA/FHLMC | 778,796 | | 15,324 | | (178,281) | | 615,839 | | | GNMA | 69,369 | | 577 | | (7,254) | | 62,691 | | | Total HTM investment securities | $ | 3,960,451 | | $ | 60,978 | | $ | (620,411) | | $ | 3,401,018 | | | | | | |
During the first quarter of 2022, the Corporation redesignated approximately $1.6 billion of mortgage-related securities from AFS to HTM. The reclassification of these investment securities was accounted for at fair value. Management elected to transfer these investment securities as the Corporation has the positive intent and ability to hold these investment securities to maturity. See Note 22 for additional information on the unrealized losses on investment securities transferred from AFS to HTM. The amortized cost and fair values of AFS and HTM securities at December 31, 2021 were as follows: | | | | | | | | | | | | | | | | ($ 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 securities | 15,000 | | — | | (103) | | 14,897 | | | Obligations of state and political subdivisions (municipal securities) | 381,517 | | 18,940 | | — | | 400,457 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 2,709,399 | | 3,729 | | (21,249) | | 2,691,879 | | | GNMA | 66,189 | | 1,591 | | — | | 67,780 | | | Private-label | 332,028 | | 31 | | (2,335) | | 329,724 | | | Commercial mortgage-related securities | | | | | | FNMA/FHLMC | 357,240 | | 2,686 | | (9,302) | | 350,623 | | | GNMA | 165,439 | | 1,360 | | — | | 166,799 | | | Asset backed securities | | | | | | FFELP | 177,974 | | 475 | | (1,123) | | 177,325 | | | SBA | 6,594 | | 39 | | (54) | | 6,580 | | | Other debt securities | 3,000 | | — | | (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 / FHLMC | 34,347 | | 1,792 | | — | | 36,139 | | | GNMA | 48,053 | | 1,578 | | — | | 49,631 | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 425,937 | | 122 | | (6,659) | | 419,400 | | | GNMA | 100,907 | | 1,799 | | (200) | | 102,506 | | | Total HTM investment securities | $ | 2,239,003 | | $ | 118,471 | | $ | (8,809) | | $ | 2,348,664 | |
|
| Investment securities held to maturity |
Investment securities are classified 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 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 securities | 15,000 | | — | | (1,468) | | 13,532 | | | Obligations of state and political subdivisions (municipal securities) | 235,693 | | 96 | | (5,074) | | 230,714 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 1,820,642 | | 404 | | (216,436) | | 1,604,610 | | | GNMA | 502,537 | | 314 | | (5,255) | | 497,596 | | | | | | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,038 | | — | | (1,896) | | 17,142 | | | GNMA | 115,031 | | — | | (4,569) | | 110,462 | | | Asset backed securities | | | | | | FFELP | 157,138 | | — | | (5,947) | | 151,191 | | | SBA | 4,512 | | 15 | | (51) | | 4,477 | | | Other debt securities | 3,000 | | — | | (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 / FHLMC | 961,231 | | 31,301 | | (175,760) | | 816,771 | | | GNMA | 52,979 | | 85 | | (3,436) | | 49,628 | | | Private-label | 364,728 | | 11,697 | | (72,920) | | 303,505 | | | Commercial mortgage-related securities | | | | | | FNMA/FHLMC | 778,796 | | 15,324 | | (178,281) | | 615,839 | | | GNMA | 69,369 | | 577 | | (7,254) | | 62,691 | | | Total HTM investment securities | $ | 3,960,451 | | $ | 60,978 | | $ | (620,411) | | $ | 3,401,018 | | | | | | |
During the first quarter of 2022, the Corporation redesignated approximately $1.6 billion of mortgage-related securities from AFS to HTM. The reclassification of these investment securities was accounted for at fair value. Management elected to transfer these investment securities as the Corporation has the positive intent and ability to hold these investment securities to maturity. See Note 22 for additional information on the unrealized losses on investment securities transferred from AFS to HTM. The amortized cost and fair values of AFS and HTM securities at December 31, 2021 were as follows: | | | | | | | | | | | | | | | | ($ 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 securities | 15,000 | | — | | (103) | | 14,897 | | | Obligations of state and political subdivisions (municipal securities) | 381,517 | | 18,940 | | — | | 400,457 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 2,709,399 | | 3,729 | | (21,249) | | 2,691,879 | | | GNMA | 66,189 | | 1,591 | | — | | 67,780 | | | Private-label | 332,028 | | 31 | | (2,335) | | 329,724 | | | Commercial mortgage-related securities | | | | | | FNMA/FHLMC | 357,240 | | 2,686 | | (9,302) | | 350,623 | | | GNMA | 165,439 | | 1,360 | | — | | 166,799 | | | Asset backed securities | | | | | | FFELP | 177,974 | | 475 | | (1,123) | | 177,325 | | | SBA | 6,594 | | 39 | | (54) | | 6,580 | | | Other debt securities | 3,000 | | — | | (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 / FHLMC | 34,347 | | 1,792 | | — | | 36,139 | | | GNMA | 48,053 | | 1,578 | | — | | 49,631 | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 425,937 | | 122 | | (6,659) | | 419,400 | | | GNMA | 100,907 | | 1,799 | | (200) | | 102,506 | | | Total HTM investment securities | $ | 2,239,003 | | $ | 118,471 | | $ | (8,809) | | $ | 2,348,664 | |
|
| Amortized cost and fair values of investment securities available for sale and held to maturity by contractual maturity |
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 December 31, 2022, are shown below: | | | | | | | | | | | | | | | | | AFS | HTM | | ($ in Thousands) | Amortized
Cost | Fair
Value | Amortized
Cost | Fair
Value | | Due in one year or less | $ | 6,245 | | $ | 6,230 | | $ | 17,660 | | $ | 17,621 | | | Due after one year through five years | 86,971 | | 81,271 | | 30,135 | | 29,842 | | | Due after five years through ten years | 248,453 | | 233,565 | | 156,937 | | 154,046 | | | Due after ten years | 36,465 | | 35,480 | | 1,528,616 | | 1,351,075 | | | Total debt securities | 378,134 | | 356,546 | | 1,733,349 | | 1,552,584 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 1,820,642 | | 1,604,610 | | 961,231 | | 816,771 | | | GNMA | 502,537 | | 497,596 | | 52,979 | | 49,628 | | | Private-label | — | | — | | 364,728 | | 303,505 | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,038 | | 17,142 | | 778,796 | | 615,839 | | | GNMA | 115,031 | | 110,462 | | 69,369 | | 62,691 | | | Asset backed securities | | | | | | FFELP | 157,138 | | 151,191 | | — | | — | | | SBA | 4,512 | | 4,477 | | — | | — | | | Total investment securities | $ | 2,997,032 | | $ | 2,742,025 | | $ | 3,960,451 | | $ | 3,401,018 | | | Ratio of Fair Value to Amortized Cost | | 91.5 | % | | 85.9 | % |
|
| Debt Securities, Held-to-maturity, Credit Quality Indicator [Table Text Block] |
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 December 31, 2022: | | | | | | | | | | | | | | | | | | | ($ in Thousands) | AAA | AA | A | Not Rated | Total | | 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/FHLMC | 961,231 | | — | | — | | — | | 961,231 | | | GNMA | 52,979 | | — | | — | | — | | 52,979 | | | Private-label | 364,728 | | — | | — | | — | | 364,728 | | | Commercial mortgage-related securities | | | | | | | FNMA/FHLMC | 778,796 | | — | | — | | — | | 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 the credit quality indicators of HTM securities at amortized cost at December 31, 2021: | | | | | | | | | | | | | | | | | | | ($ in Thousands) | AAA | AA | A | Not Rated | Total | | 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/FHLMC | 34,347 | | — | | — | | — | | 34,347 | | | GNMA | 48,053 | | — | | — | | — | | 48,053 | | | Commercial mortgage-related securities | | | | | | | FNMA/FHLMC | 425,937 | | — | | — | | — | | 425,937 | | | GNMA | 100,907 | | — | | — | | — | | 100,907 | | | Total HTM securities | $ | 1,312,642 | | $ | 914,591 | | $ | 10,873 | | $ | 896 | | $ | 2,239,003 | |
|
| Realized gains and losses and proceeds from sale |
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 each of the three years ended December 31 shown below: | | | | | | | | | | | | | ($ in Thousands) | 2022 | 2021 | 2020 | | Gross gains on AFS securities | $ | 21 | | $ | 421 | | $ | 9,312 | | | | | | | | | | | Gross (losses) on AFS securities | (1,943) | | (437) | | (90) | | | | | | | | | | | Gain on sale and net write-up of equity securities | 5,668 | | — | | — | | | Investment securities gains (losses), net | $ | 3,746 | | $ | (16) | | $ | 9,222 | | | Proceeds from sales of AFS investment securities | $ | 110,177 | | $ | 158,708 | | $ | 626,283 | |
|
| Unrealized losses and fair value of available for sale and held to maturity securities, by investment category and time length |
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 December 31, 2022: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | 12 months or more | Total | | ($ 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 / FHLMC | 24 | | (31,266) | | 260,986 | | 84 | | (185,170) | | 1,321,420 | | (216,436) | | 1,582,406 | | | GNMA | 23 | | (4,415) | | 220,276 | | 2 | | (840) | | 11,096 | | (5,255) | | 231,372 | | | | | | | | | | | | Commercial mortgage-related securities | | | | | | | | | | FNMA / FHLMC | 1 | | (1,896) | | 17,142 | | — | | — | | — | | (1,896) | | 17,142 | | | GNMA | 33 | | (3,920) | | 101,036 | | 4 | | (649) | | 9,426 | | (4,569) | | 110,462 | | | Asset backed securities | | | | | | | | | | FFELP | 3 | | (1,668) | | 44,304 | | 12 | | (4,278) | | 106,887 | | (5,947) | | 151,191 | | | SBA | 2 | | (1) | | 417 | | 6 | | (50) | | 2,057 | | (51) | | 2,474 | | | Other debt securities | 2 | | (30) | | 1,970 | | 1 | | (49) | | 951 | | (78) | | 2,922 | | | Total | 446 | | $ | (48,263) | | $ | 847,391 | | 121 | | $ | (207,575) | | $ | 1,576,665 | | $ | (255,837) | | $ | 2,424,055 | | | HTM investment securities | | | | | | | | | | U.S. Treasury securities | 1 | | $ | (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 / FHLMC | 79 | | (18,925) | | 143,201 | | 22 | | (156,836) | | 671,570 | | (175,760) | | 814,770 | | | GNMA | 81 | | (3,436) | | 44,476 | | — | | — | | — | | (3,436) | | 44,476 | | | Private-label | 3 | | (9,509) | | 58,733 | | 15 | | (63,411) | | 244,772 | | (72,920) | | 303,505 | | | Commercial mortgage-related securities | | | | | | | | | | FNMA / FHLMC | 4 | | (3,814) | | 20,338 | | 39 | | (174,467) | | 576,911 | | (178,281) | | 597,249 | | | GNMA | 8 | | (2,528) | | 34,612 | | 6 | | (4,726) | | 28,080 | | (7,254) | | 62,691 | | | Total | 947 | | $ | (134,556) | | $ | 1,381,511 | | 238 | | $ | (485,855) | | $ | 1,752,354 | | $ | (620,411) | | $ | 3,133,865 | |
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 months | 12 months or more | Total | | ($ 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 | | $ | (1,334) | | $ | 122,957 | | — | | $ | — | | $ | — | | $ | (1,334) | | $ | 122,957 | | | Agency securities | 1 | | (103) | | 14,897 | | — | | — | | — | | (103) | | 14,897 | | | | | | | | | | | | Residential mortgage-related securities | | | | | | | | | | FNMA / FHLMC | 74 | | (21,249) | | 2,172,837 | | — | | — | | — | | (21,249) | | 2,172,837 | | | | | | | | | | | | Private-label | 12 | | (2,335) | | 248,617 | | — | | — | | — | | (2,335) | | 248,617 | | | | | | | | | | | | FNMA / FHLMC commercial mortgage-related securities | 19 | | (9,302) | | 328,568 | | — | | — | | — | | (9,302) | | 328,568 | | | | | | | | | | | | Asset backed securities | | | | | | | | | | FFELP | 4 | | (256) | | 64,282 | | 8 | | (867) | | 62,576 | | (1,123) | | 126,858 | | | SBA | — | | — | | — | | 9 | | (54) | | 3,902 | | (54) | | 3,902 | | | Other debt securities | 3 | | (6) | | 2,994 | | — | | — | | — | | (6) | | 2,994 | | | Total | 120 | | $ | (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/FHLMC | 18 | | (6,272) | | 388,072 | | 1 | | (387) | | 10,775 | | (6,659) | | 398,847 | | | GNMA | 5 | | (200) | | 33,468 | | — | | — | | — | | (200) | | 33,468 | | | Total | 72 | | $ | (8,422) | | $ | 533,577 | | 1 | | $ | (387) | | $ | 10,775 | | $ | (8,809) | | $ | 544,352 | |
|