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Investment Securities
 6 Months Ended
Jun. 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 June 30, 2023 were as follows:
($ in thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
(Losses)		Fair Value
AFS investment securities
U. S. Treasury securities$124,516 $— $(14,563)$109,954 
Agency securities15,000 — (1,483)13,517 
Obligations of state and political subdivisions (municipal securities)227,928 75 (5,515)222,487 
Residential mortgage-related securities:
FNMA/FHLMC1,734,097 108 (213,265)1,520,939 
GNMA1,309,202 198 (18,761)1,290,640 
Commercial mortgage-related securities:
FNMA/FHLMC18,866 — (1,772)17,095 
GNMA191,630 — (8,284)183,346 
Asset backed securities:
FFELP144,376 — (4,211)140,166 
SBA3,757 11 (47)3,721 
Other debt securities3,000 — (87)2,913 
Total AFS investment securities$3,772,373 $392 $(267,987)$3,504,777 
HTM investment securities
U. S. Treasury securities$999 $— $(59)$940 
Obligations of state and political subdivisions (municipal securities)1,713,510 1,978 (162,587)1,552,901 
Residential mortgage-related securities:
FNMA/FHLMC969,503 29,137 (171,849)826,791 
GNMA52,260 48 (3,500)48,808 
Private-label355,442 10,734 (72,395)293,782 
Commercial mortgage-related securities:
FNMA/FHLMC784,327 14,008 (174,942)623,393 
GNMA62,961 461 (7,946)55,477 
Total HTM investment securities$3,939,001 $56,368 $(593,278)$3,402,092 
The amortized cost and fair values of AFS and HTM securities at December 31, 2022 were as follows:
($ 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)$3,401,018 
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of AFS and HTM securities at June 30, 2023, are shown below:
 AFSHTM
($ in thousands)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in one year or less$5,127 $5,115 $18,531 $18,528 
Due after one year through five years188,712 171,404 48,044 47,613 
Due after five years through ten years140,309 136,754 155,014 151,579 
Due after ten years36,296 35,598 1,492,920 1,336,121 
Total debt securities370,444 348,871 1,714,509 1,553,841 
Residential mortgage-related securities:
FNMA/FHLMC1,734,097 1,520,939 969,503 826,791 
GNMA1,309,202 1,290,640 52,260 48,808 
Private-label— — 355,442 293,782 
Commercial mortgage-related securities:
FNMA/FHLMC18,866 17,095 784,327 623,393 
GNMA191,630 183,346 62,961 55,477 
Asset backed securities:
FFELP 144,376 140,166 — — 
SBA3,757 3,721 — — 
Total investment securities$3,772,373 $3,504,777 $3,939,001 $3,402,092 
Ratio of fair value to amortized cost92.9 %86.4 %
On a quarterly basis, the Corporation refreshes the credit quality of each HTM security. The following table summarizes the credit quality indicators of HTM securities at amortized cost at June 30, 2023:
($ in thousands)AAAAAANot RatedTotal
U. S. Treasury securities$999 $— $— $— $999 
Obligations of state and political subdivisions (municipal securities)781,385 924,263 6,705 1,156 1,713,510 
Residential mortgage-related securities:
FNMA/FHLMC969,503 — — — 969,503 
GNMA52,260 — — — 52,260 
Private-label355,442 — — — 355,442 
Commercial mortgage-related securities:
FNMA/FHLMC784,327 — — — 784,327 
GNMA 62,961 — — — 62,961 
Total HTM securities$3,006,877 $924,263 $6,705 $1,156 $3,939,001 
The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2022:
($ 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 $3,960,451 
The following table summarizes gross realized gains and losses on AFS securities, net write-up of equity securities, and proceeds from the sale of AFS investment securities for the three and six months ended June 30, 2023 and 2022:
Three Months Ended Jun 30,Six Months Ended Jun 30,
($ in thousands)2023202220232022
Gross realized gains on AFS securities$— $— $— $21 
Gross realized (losses) on AFS securities— (8)— (8)
Net write-up of equity securities14 — 66 — 
Investment securities gains (losses), net$14 $(8)$66 $12 
Proceeds from sales of AFS investment securities$— $327 $— $1,061 
Investment securities with a carrying value of $1.8 billion and $2.3 billion at June 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 $18 million and $19 million at June 30, 2023 and December 31, 2022, respectively. Accrued interest receivable on AFS securities totaled $13 million and $9 million at June 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 June 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 June 30, 2023 and December 31, 2022, the Corporation had no past due HTM securities.

The allowance for credit losses on HTM securities was approximately $125,000 at June 30, 2023 and approximately $54,000 at December 31, 2022, attributable entirely to the Corporation's municipal securities, included in HTM investment securities, net, at amortized cost on the consolidated balance sheets. The Corporation also holds U.S. Treasury, municipal, and mortgage-related securities issued by the U.S. government or a GSE which are backed by the full faith and credit of the U.S. government and private-label residential mortgage-related securities that have credit enhancement which covers the first 15% of losses and, as a result, no allowance for credit losses has been recorded related to these securities.
The following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at June 30, 2023:
 Less than 12 months12 months or moreTotal
($ 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 $(14,563)$109,954 $(14,563)$109,954 
Agency securities— — — 1 (1,483)13,517 (1,483)13,517 
Obligations of state and political subdivisions (municipal securities)285 (3,452)155,382 79 (2,063)43,862 (5,515)199,244 
Residential mortgage-related securities:
FNMA/FHLMC26 (899)33,479 100 (212,366)1,473,501 (213,265)1,506,980 
GNMA60 (14,873)1,074,681 13 (3,887)56,951 (18,761)1,131,632 
Commercial mortgage-related securities:
FNMA/FHLMC— — — 1 (1,772)17,095 (1,772)17,095 
GNMA11 (3,539)110,951 31 (4,745)72,395 (8,284)183,346 
Asset backed securities:
FFELP— — — 15 (4,211)140,166 (4,211)140,166 
SBA2 — 740 7 (47)1,754 (47)2,493 
Other debt securities1 (15)985 2 (72)1,928 (87)2,913 
Total385 $(22,779)$1,376,217 256 $(245,208)$1,931,121 $(267,987)$3,307,339 
HTM investment securities
U.S. Treasury securities— $— $— 1 $(59)$940 $(59)$940 
Obligations of state and political subdivisions (municipal securities)485 (12,109)650,323 444 (150,479)647,004 (162,587)1,297,327 
Residential mortgage-related securities:
FNMA/FHLMC64 (2,536)65,400 57 (169,313)761,207 (171,849)826,607 
GNMA21 (330)14,665 63 (3,171)31,369 (3,500)46,034 
Private-label— — — 18 (72,395)293,782 (72,395)293,782 
 Commercial mortgage-related securities:
FNMA/FHLMC4 (1,212)28,920 41 (173,730)594,472 (174,942)623,393 
GNMA— — — 13 (7,946)55,477 (7,946)55,477 
Total574 $(16,186)$759,309 637 $(577,092)$2,384,250 $(593,278)$3,143,559 
For comparative purposes, the following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022:
 Less than 12 months12 months or moreTotal
($ 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 June 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 $185 million and $209 million at June 30, 2023 and December 31, 2022, respectively. The Corporation had Federal Reserve Bank stock of $87 million at both June 30, 2023 and December 31, 2022. Accrued interest receivable on FHLB stock totaled $3 million at both June 30, 2023 and December 31, 2022. There was no accrued interest receivable on Federal Reserve Bank Stock at both June 30, 2023, and 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 June 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 $24 million and $19 million at June 30, 2023 and December 31, 2022, respectively