XML 28 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Securities | 12 Months Ended
--- | ---
Dec. 31, 2017
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 available-for-sale investment securities, which are carried at fair value, and the held-to-maturity investment security, which is carried at amortized cost, as of December 31, 2017 and 2016:
($ in thousands) |  | As of December 31, 2017
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available-for-sale investment securities: |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 651,395 |  |  | $ | — |  |  | $ | (11,115 | ) |  | $ | 640,280 |
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 206,815 |  |  | 62 |  |  | (3,485 | ) |  | 203,392 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 328,348 |  |  | 141 |  |  | (9,532 | ) |  | 318,957 |
Residential mortgage-backed securities |  | 1,199,869 |  |  | 3,964 |  |  | (13,562 | ) |  | 1,190,271 |
Municipal securities |  | 99,636 |  |  | 655 |  |  | (309 | ) |  | 99,982 |
Non-agency residential mortgage-backed securities: |  |  |  |  |  |  |  |
Investment grade (1) |  | 9,136 |  |  | 3 |  |  | (22 | ) |  | 9,117 |
Corporate debt securities: |  |  |  |  |  |  |  |
Investment grade (1) |  | 37,585 |  |  | 164 |  |  | (746 | ) |  | 37,003 |
Foreign bonds: |  |  |  |  |  |  |  |
Investment grade (1) (2) |  | 505,396 |  |  | 24 |  |  | (19,012 | ) |  | 486,408 |
Other securities |  | 31,887 |  |  | — |  |  | (545 | ) |  | 31,342 |
Total available-for-sale investment securities |  | 3,070,067 |  |  | 5,013 |  |  | (58,328 | ) |  | 3,016,752 |
Held-to-maturity investment security: |  |  |  |  |  |  |  |
Non-agency commercial mortgage-backed security |  | — |  |  | — |  |  | — |  |  | — |
Total investment securities |  | $ | 3,070,067 |  |  | $ | 5,013 |  |  | $ | (58,328 | ) |  | $ | 3,016,752 |
($ in thousands) |  | As of December 31, 2016
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available-for-sale investment securities: |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 730,287 |  |  | $ | 21 |  |  | $ | (9,829 | ) |  | $ | 720,479 |
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 277,891 |  |  | 224 |  |  | (3,249 | ) |  | 274,866 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 272,672 |  |  | 345 |  |  | (6,218 | ) |  | 266,799 |
Residential mortgage-backed securities |  | 1,266,372 |  |  | 3,924 |  |  | (11,549 | ) |  | 1,258,747 |
Municipal securities |  | 148,302 |  |  | 1,252 |  |  | (1,900 | ) |  | 147,654 |
Non-agency residential mortgage-backed securities: |  |  |  |  |  |  |  |
Investment grade (1) |  | 11,592 |  |  | — |  |  | (115 | ) |  | 11,477 |
Corporate debt securities: |  |  |  |  |  |  |  |
Investment grade (1) |  | 222,190 |  |  | 562 |  |  | (375 | ) |  | 222,377 |
Non-investment grade (1) |  | 10,191 |  |  | — |  |  | (1,018 | ) |  | 9,173 |
Foreign bonds: |  |  |  |  |  |  |  |
Investment grade (1) (2) |  | 405,443 |  |  | 30 |  |  | (21,579 | ) |  | 383,894 |
Other securities |  | 40,501 |  |  | 337 |  |  | (509 | ) |  | 40,329 |
Total available-for-sale investment securities |  | 3,385,441 |  |  | 6,695 |  |  | (56,341 | ) |  | 3,335,795 |
Held-to-maturity investment security: |  |  |  |  |  |  |  |
Non-agency commercial mortgage-backed security |  | 143,971 |  |  | 622 |  |  | — |  |  | 144,593 |
Total investment securities |  | $ | 3,529,412 |  |  | $ | 7,317 |  |  | $ | (56,341 | ) |  | $ | 3,480,388 |
(1) | Available-for-sale investment securities rated BBB- or higher by Standard & Poor’s (“S&P”) or Baa3 or higher by Moody’s are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade. Classifications are based on the lower of the credit ratings by S&P or Moody’s.
(2) | Fair value of foreign bonds include $456.1 million and $353.6 million of multilateral development bank bonds as of December 31, 2017 and 2016, respectively.
Unrealized Losses The following tables present the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of December 31, 2017 and 2016:
($ in thousands) |  | As of December 31, 2017
| Less Than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 168,061 |  |  | $ | (1,005 | ) |  | $ | 472,219 |  |  | $ | (10,110 | ) |  | $ | 640,280 |  |  | $ | (11,115 | )
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 99,935 |  |  | (623 | ) |  | 85,281 |  |  | (2,862 | ) |  | 185,216 |  |  | (3,485 | )
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 113,775 |  |  | (2,071 | ) |  | 191,827 |  |  | (7,461 | ) |  | 305,602 |  |  | (9,532 | )
Residential mortgage-backed securities |  | 413,621 |  |  | (4,205 | ) |  | 361,809 |  |  | (9,357 | ) |  | 775,430 |  |  | (13,562 | )
Municipal securities |  | 8,490 |  |  | (123 | ) |  | 8,588 |  |  | (186 | ) |  | 17,078 |  |  | (309 | )
Non-agency residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 4,599 |  |  | (22 | ) |  | — |  |  | — |  |  | 4,599 |  |  | (22 | )
Corporate debt securities: |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | — |  |  | — |  |  | 11,905 |  |  | (746 | ) |  | 11,905 |  |  | (746 | )
Foreign bonds: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 103,149 |  |  | (1,325 | ) |  | 352,239 |  |  | (17,687 | ) |  | 455,388 |  |  | (19,012 | )
Other securities |  | 31,215 |  |  | (545 | ) |  | — |  |  | — |  |  | 31,215 |  |  | (545 | )
Total available-for-sale investment securities |  | 942,845 |  |  | (9,919 | ) |  | 1,483,868 |  |  | (48,409 | ) |  | 2,426,713 |  |  | (58,328 | )
Held-to-maturity investment security: |  |  |  |  |  |  |  |  |  |  |  |
Non-agency commercial mortgage-backed security |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total investment securities |  | $ | 942,845 |  |  | $ | (9,919 | ) |  | $ | 1,483,868 |  |  | $ | (48,409 | ) |  | $ | 2,426,713 |  |  | $ | (58,328 | )
($ in thousands) |  | As of December 31, 2016
| Less Than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
Available-for-sale investment securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities |  | $ | 670,268 |  |  | $ | (9,829 | ) |  | $ | — |  |  | $ | — |  |  | $ | 670,268 |  |  | $ | (9,829 | )
U.S. government agency and U.S. government sponsored enterprise debt securities |  | 203,901 |  |  | (3,249 | ) |  | — |  |  | — |  |  | 203,901 |  |  | (3,249 | )
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  | 202,106 |  |  | (5,452 | ) |  | 29,201 |  |  | (766 | ) |  | 231,307 |  |  | (6,218 | )
Residential mortgage-backed securities |  | 629,324 |  |  | (9,594 | ) |  | 119,603 |  |  | (1,955 | ) |  | 748,927 |  |  | (11,549 | )
Municipal securities |  | 57,655 |  |  | (1,699 | ) |  | 2,692 |  |  | (201 | ) |  | 60,347 |  |  | (1,900 | )
Non-agency residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 5,033 |  |  | (101 | ) |  | 6,444 |  |  | (14 | ) |  | 11,477 |  |  | (115 | )
Corporate debt securities: |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | — |  |  | — |  |  | 71,667 |  |  | (375 | ) |  | 71,667 |  |  | (375 | )
Non-investment grade |  | — |  |  | — |  |  | 9,173 |  |  | (1,018 | ) |  | 9,173 |  |  | (1,018 | )
Foreign bonds: |  |  |  |  |  |  |  |  |  |  |  |
Investment grade |  | 363,618 |  |  | (21,327 | ) |  | 14,258 |  |  | (252 | ) |  | 377,876 |  |  | (21,579 | )
Other securities |  | 30,991 |  |  | (509 | ) |  | — |  |  | — |  |  | 30,991 |  |  | (509 | )
Total available-for-sale investment securities |  | 2,162,896 |  |  | (51,760 | ) |  | 253,038 |  |  | (4,581 | ) |  | 2,415,934 |  |  | (56,341 | )
Held-to-maturity investment security: |  |  |  |  |  |  |  |  |  |  |  |
Non-agency commercial mortgage-backed security |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total investment securities |  | $ | 2,162,896 |  |  | $ | (51,760 | ) |  | $ | 253,038 |  |  | $ | (4,581 | ) |  | $ | 2,415,934 |  |  | $ | (56,341 | )
For each reporting period, the Company examines all individual securities that are in an unrealized loss position for OTTI. For a discussion of the factors and criteria the Company uses in analyzing securities for OTTI, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Securities to the Consolidated Financial Statements. The unrealized losses were primarily attributable to the yield curve movement, in addition to widened liquidity and credit spreads. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. The Company believes that the gross unrealized losses detailed in the previous tables are temporary and not due to reasons of credit quality. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, no impairment loss was recorded on the Company’s Consolidated Statement of Income for each of the years ended December 31, 2017, 2016 and 2015. As of December 31, 2017, the Company had 165 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily comprised of 98 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 25 U.S. Treasury securities and 16 investment grade foreign bonds. In comparison, as of December 31, 2016, the Company had 170 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily comprised of 82 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 26 U.S. Treasury securities and 13 investment grade foreign bonds. During the first quarter of 2016, the Company obtained a non-agency commercial mortgage-backed security, through the securitization of multifamily real estate loans, which was classified as held-to-maturity and recorded at amortized cost. During the third quarter of 2017, the Company transferred this non-agency commercial mortgage-backed security with a net carrying amount of $115.6 million from held-to-maturity to available-for-sale. The transfer reflects the Company’s intent to sell the security as part of its active liquidity management. This security was sold during the fourth quarter of 2017. Other-Than-Temporary Impairment The following table presents a rollforward of the amounts related to the OTTI credit losses recognized in earnings for the years ended December 31, 2017, 2016 and 2015:
|  | Year Ended December 31,
($ in thousands) |  | 2017 |  | 2016 |  | 2015
Beginning balance |  | $ | — |  |  | $ | — |  |  | $ | 112,338 |
Reduction for securities sold |  | — |  |  | — |  |  | (112,338 | )
Ending balance |  | $ | — |  |  | $ | — |  |  | $ | — |
No OTTI credit losses were recognized for the years ended December 31, 2017, 2016 and 2015. For the year ended December 31, 2015, the Company realized a gain of $21.7 million from the sale of non-investment grade corporate debt securities with previously recognized OTTI credit losses of $112.3 million. Realized Gains and Losses The following table presents the proceeds, gross realized gains and losses, and tax expense related to the sales of available-for-sale investment securities for the years ended December 31, 2017, 2016 and 2015:
|  | Year Ended December 31,
($ in thousands) |  | 2017 |  | 2016 |  | 2015
Proceeds from sales |  | $ | 832,844 |  |  | $ | 1,275,645 |  |  | $ | 1,669,334 |
Gross realized gains |  | $ | 8,037 |  |  | $ | 10,487 |  |  | $ | 40,367 |
Gross realized losses |  | $ | — |  |  | $ | 125 |  |  | $ | — |
Related tax expense |  | $ | 3,380 |  |  | $ | 4,357 |  |  | $ | 16,974 |
Scheduled Maturities of Investment Securities The following table presents the scheduled maturities of available-for-sale investment securities as of December 31, 2017:
($ in thousands) |  | Amortized Cost |  | Fair Value
Due within one year |  | $ | 602,560 |  |  | $ | 583,126 |
Due after one year through five years |  | 772,349 |  |  | 759,970 |
Due after five years through ten years |  | 220,298 |  |  | 216,390 |
Due after ten years |  | 1,474,860 |  |  | 1,457,266 |
Total available-for-sale investment securities |  | $ | 3,070,067 |  |  | $ | 3,016,752 |
Actual maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to prepay obligations. In addition, factors such as prepayments and interest rates may affect the yields on the carrying values of mortgage-backed securities. Available-for-sale investment securities with fair value of $534.3 million and $767.4 million as of December 31, 2017 and 2016, respectively, were pledged to secure public deposits, repurchase agreements, the Federal Reserve Bank’s discount window and for other purposes required or permitted by law. Restricted Equity Securities Restricted equity securities include stock of the Federal Reserve Bank and of the FHLB. Restricted equity securities are carried at cost as these securities do not have a readily determinable fair value. The following table presents the restricted equity securities as of December 31, 2017 and 2016:
|  | December 31,
($ in thousands) |  | 2017 |  | 2016
Federal Reserve Bank stock |  | $ | 56,271 |  |  | $ | 55,525 |
FHLB stock |  | 17,250 |  |  | 17,250 |
Total |  | $ | 73,521 |  |  | $ | 72,775 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration