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Investment Securities | 9 Months Ended
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Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities Investment securities are designated as AFS, HTM, or equity on the consolidated balance sheets. The amortized cost and fair values of AFS and HTM securities at September 30, 2024 were as follows:
($ in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value
AFS investment securities |  |  |  |
U.S. Treasury securities | $ | 39,987 |  | $ | — |  | $ | (3,039) |  | $ | 36,948 |
Obligations of state and political subdivisions (municipal securities) | 82,845 |  | 11 |  | (1,766) |  | 81,089 |
Residential mortgage-related securities: |  |  |  |
FNMA/FHLMC | 1,201,968 |  | 990 |  | (117,544) |  | 1,085,414 |
GNMA | 2,634,634 |  | 30,367 |  | (1,441) |  | 2,663,560 |
Commercial mortgage-related securities: |  |  |  |
FNMA/FHLMC | 18,423 |  | — |  | (388) |  | 18,035 |
GNMA | 156,873 |  | — |  | (5,256) |  | 151,617 |
Asset backed securities: |  |  |  |
FFELP | 113,139 |  | 132 |  | (922) |  | 112,350 |
SBA | 540 |  | — |  | (24) |  | 516 |
Other debt securities | 3,000 |  | — |  | (3) |  | 2,997 |
Total AFS investment securities | $ | 4,251,409 |  | $ | 31,500 |  | $ | (130,382) |  | $ | 4,152,527 |
HTM investment securities |  |  |  |
U.S. Treasury securities | $ | 1,000 |  | $ | — |  | $ | (10) |  | $ | 990 |
Obligations of state and political subdivisions (municipal securities) | 1,664,740 |  | 4,596 |  | (128,987) |  | 1,540,348 |
Residential mortgage-related securities: |  |  |  |
FNMA/FHLMC | 900,743 |  | 24,025 |  | (145,885) |  | 778,883 |
GNMA | 45,180 |  | 143 |  | (2,344) |  | 42,979 |
Private-label | 329,349 |  | 8,519 |  | (55,765) |  | 282,103 |
Commercial mortgage-related securities: |  |  |  |
FNMA/FHLMC | 775,209 |  | 11,142 |  | (126,498) |  | 659,852 |
GNMA | 53,005 |  | 258 |  | (5,643) |  | 47,620 |
Total HTM investment securities | $ | 3,769,224 |  | $ | 48,682 |  | $ | (465,131) |  | $ | 3,352,775 |
The amortized cost and fair values of AFS and HTM securities at December 31, 2023 were as follows:
($ in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value
AFS investment securities |  |  |  |
U.S. Treasury securities | $ | 39,984 |  | $ | — |  | $ | (4,083) |  | $ | 35,902 |
Obligations of state and political subdivisions (municipal securities) | 94,008 |  | 23 |  | (2,214) |  | 91,817 |
Residential mortgage-related securities: |  |  |  |
FNMA/FHLMC | 1,274,052 |  | 294 |  | (153,552) |  | 1,120,794 |
GNMA | 2,021,242 |  | 24,254 |  | (2,822) |  | 2,042,675 |
Commercial mortgage-related securities: |  |  |  |
FNMA/FHLMC | 18,691 |  | — |  | (1,755) |  | 16,937 |
GNMA | 161,928 |  | — |  | (7,135) |  | 154,793 |
Asset backed securities: |  |  |  |
FFELP | 135,832 |  | 5 |  | (1,862) |  | 133,975 |
SBA | 1,077 |  | 2 |  | (28) |  | 1,051 |
Other debt securities | 3,000 |  | — |  | (50) |  | 2,950 |
Total AFS investment securities | $ | 3,749,814 |  | $ | 24,579 |  | $ | (173,501) |  | $ | 3,600,892 |
HTM investment securities |  |  |  |
U.S. Treasury securities | $ | 999 |  | $ | — |  | $ | (36) |  | $ | 963 |
Obligations of state and political subdivisions (municipal securities) | 1,682,473 |  | 5,638 |  | (134,053) |  | 1,554,059 |
Residential mortgage-related securities: |  |  |  |
FNMA/FHLMC | 941,973 |  | 27,007 |  | (164,587) |  | 804,393 |
GNMA | 48,979 |  | 92 |  | (2,901) |  | 46,170 |
Private-label | 345,083 |  | 9,796 |  | (65,372) |  | 289,507 |
Commercial mortgage-related securities: |  |  |  |
FNMA/FHLMC | 780,995 |  | 12,699 |  | (160,781) |  | 632,914 |
GNMA | 59,733 |  | 386 |  | (7,500) |  | 52,619 |
Total HTM investment securities | $ | 3,860,235 |  | $ | 55,619 |  | $ | (535,230) |  | $ | 3,380,624 |
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, 2024, are shown below:
| AFS | HTM
($ in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value
Due in one year or less | $ | 1,000 |  | $ | 997 |  | $ | 11,435 |  | $ | 11,360 |
Due after one year through five years | 54,051 |  | 50,642 |  | 58,464 |  | 58,594 |
Due after five years through ten years | 44,549 |  | 43,392 |  | 179,171 |  | 175,603 |
Due after ten years | 26,231 |  | 26,004 |  | 1,416,669 |  | 1,295,781 |
Total debt securities | 125,832 |  | 121,034 |  | 1,665,740 |  | 1,541,338 |
Residential mortgage-related securities: |  |  |  |
FNMA/FHLMC | 1,201,968 |  | 1,085,414 |  | 900,743 |  | 778,883 |
GNMA | 2,634,634 |  | 2,663,560 |  | 45,180 |  | 42,979 |
Private-label | — |  | — |  | 329,349 |  | 282,103 |
Commercial mortgage-related securities: |  |  |  |
FNMA/FHLMC | 18,423 |  | 18,035 |  | 775,209 |  | 659,852 |
GNMA | 156,873 |  | 151,617 |  | 53,005 |  | 47,620 |
Asset backed securities: |  |  |  |
FFELP | 113,139 |  | 112,350 |  | — |  | — |
SBA | 540 |  | 516 |  | — |  | — |
Total investment securities | $ | 4,251,409 |  | $ | 4,152,527 |  | $ | 3,769,224 |  | $ | 3,352,775 |
Ratio of fair value to amortized cost |  | 97.7 | % |  | 89.0 | %
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, 2024:
($ in thousands) | AAA | AA | A |  |  |  | Not Rated | Total
U.S. Treasury securities | $ | 1,000 |  | $ | — |  | $ | — |  |  |  |  | $ | — |  | $ | 1,000 |
Obligations of state and political subdivisions (municipal securities) | 772,689 |  | 884,498 |  | 5,492 |  |  |  |  | 2,060 |  | 1,664,740 |
Residential mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 900,743 |  | — |  | — |  |  |  |  | — |  | 900,743 |
GNMA | 45,180 |  | — |  | — |  |  |  |  | — |  | 45,180 |
Private-label | 329,349 |  | — |  | — |  |  |  |  | — |  | 329,349 |
Commercial mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 775,209 |  | — |  | — |  |  |  |  | — |  | 775,209 |
GNMA | 53,005 |  | — |  | — |  |  |  |  | — |  | 53,005 |
Total HTM securities | $ | 2,877,174 |  | $ | 884,498 |  | $ | 5,492 |  |  |  |  | $ | 2,060 |  | $ | 3,769,224 |
The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2023:
($ in thousands) | AAA | AA | A |  |  |  | Not Rated | Total
U.S. Treasury securities | $ | 999 |  | $ | — |  | $ | — |  |  |  |  | $ | — |  | $ | 999 |
Obligations of state and political subdivisions (municipal securities) | 760,329 |  | 915,303 |  | 5,687 |  |  |  |  | 1,155 |  | 1,682,473 |
Residential mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 941,973 |  | — |  | — |  |  |  |  | — |  | 941,973 |
GNMA | 48,979 |  | — |  | — |  |  |  |  | — |  | 48,979 |
Private-label | 345,083 |  | — |  | — |  |  |  |  | — |  | 345,083 |
Commercial mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 780,995 |  | — |  | — |  |  |  |  | — |  | 780,995 |
GNMA | 59,733 |  | — |  | — |  |  |  |  | — |  | 59,733 |
Total HTM securities | $ | 2,938,090 |  | $ | 915,303 |  | $ | 5,687 |  |  |  |  | $ | 1,155 |  | $ | 3,860,235 |
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 AFS investment securities for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended Sep 30, | Nine Months Ended Sep 30,
($ in thousands) | 2024 | 2023 | 2024 | 2023
Gross realized (losses) on AFS securities | $ | — |  | $ | — |  | $ | (197) |  | $ | — |
Gain on sale and net write-up (down) of equity securities | 100 |  | (11) |  | 4,243 |  | 55 |
Investment securities gains, net | $ | 100 |  | $ | (11) |  | $ | 4,047 |  | $ | 55 |
Proceeds from sales of AFS investment securities | $ | — |  | $ | — |  | $ | 9,472 |  | $ | — |
During the first quarter of 2024, the Corporation sold its remaining Visa Class B restricted shares at a gain of $4 million. Investment securities with a carrying value of $1.4 billion and $1.6 billion at September 30, 2024 and December 31, 2023, respectively, were pledged as required to secure certain deposits or for other purposes. Accrued interest receivable on HTM securities totaled $16 million and $18 million at September 30, 2024 and December 31, 2023, respectively. Accrued interest receivable on AFS securities totaled $17 million and $15 million at September 30, 2024 and December 31, 2023, respectively. Accrued interest receivable on both HTM and AFS securities is included in interest receivable on the consolidated balance sheets. The allowance for credit losses on HTM securities was approximately $75,000 at both September 30, 2024 and December 31, 2023, attributable entirely to the Corporation's municipal securities, included in HTM investment securities, net, at amortized cost on the consolidated balance sheets. The Corporation also holds U.S. Treasury, municipal, and mortgage-related securities issued by the U.S. government or a GSE which are backed by the full faith and credit of the U.S. government and private-label residential mortgage-related securities that have credit enhancement which covers the first 15% of losses and, as a result, no allowance for credit losses has been recorded related to these securities. The following represents gross unrealized losses and the related fair value of AFS and HTM securities, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at September 30, 2024:
| Less than 12 months | 12 months or more | Total
($ 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 | — |  | $ | — |  | $ | — |  | 1 |  | $ | (3,039) |  | $ | 36,948 |  | $ | (3,039) |  | $ | 36,948 |
Obligations of state and political subdivisions (municipal securities) | 18 |  | (35) |  | 8,205 |  | 112 |  | (1,731) |  | 66,172 |  | (1,766) |  | 74,377 |
Residential mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 4 |  | (22) |  | 6,211 |  | 82 |  | (117,522) |  | 1,026,799 |  | (117,544) |  | 1,033,011 |
GNMA | 2 |  | (36) |  | 20,744 |  | 10 |  | (1,405) |  | 41,066 |  | (1,441) |  | 61,811 |
Commercial mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | — |  | — |  | — |  | 1 |  | (388) |  | 18,035 |  | (388) |  | 18,035 |
GNMA | — |  | — |  | — |  | 31 |  | (5,256) |  | 151,617 |  | (5,256) |  | 151,617 |
Asset backed securities: |  |  |  |  |  |  |  |
FFELP | — |  | — |  | — |  | 12 |  | (922) |  | 65,319 |  | (922) |  | 65,319 |
SBA | — |  | — |  | — |  | 4 |  | (24) |  | 498 |  | (24) |  | 498 |
Other debt securities | — |  | — |  | — |  | 1 |  | (3) |  | 997 |  | (3) |  | 997 |
Total | 24 |  | $ | (93) |  | $ | 35,160 |  | 254 |  | $ | (130,289) |  | $ | 1,407,452 |  | $ | (130,382) |  | $ | 1,442,613 |
HTM investment securities |  |  |  |  |  |  |  |
U.S. Treasury securities | — |  | $ | — |  | $ | — |  | 1 |  | $ | (10) |  | $ | 990 |  | $ | (10) |  | $ | 990 |
Obligations of state and political subdivisions (municipal securities) | 83 |  | (517) |  | 111,498 |  | 642 |  | (128,470) |  | 887,316 |  | (128,987) |  | 998,814 |
Residential mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 1 |  | (1) |  | 100 |  | 108 |  | (145,884) |  | 769,122 |  | (145,885) |  | 769,223 |
GNMA | — |  | — |  | — |  | 79 |  | (2,344) |  | 33,584 |  | (2,344) |  | 33,584 |
Private-label | — |  | — |  | — |  | 18 |  | (55,765) |  | 282,103 |  | (55,765) |  | 282,103 |
Commercial mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | — |  | — |  | — |  | 43 |  | (126,498) |  | 632,665 |  | (126,498) |  | 632,665 |
GNMA | — |  | — |  | — |  | 13 |  | (5,643) |  | 47,620 |  | (5,643) |  | 47,620 |
Total | 84 |  | $ | (518) |  | $ | 111,598 |  | 904 |  | $ | (464,613) |  | $ | 2,653,401 |  | $ | (465,131) |  | $ | 2,765,000 |
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, 2023:
| 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 | — |  | $ | — |  | $ | — |  | 1 |  | $ | (4,083) |  | $ | 35,902 |  | $ | (4,083) |  | $ | 35,902 |
Obligations of state and political subdivisions (municipal securities) | 41 |  | (347) |  | 23,762 |  | 92 |  | (1,867) |  | 53,022 |  | (2,214) |  | 76,784 |
Residential mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 18 |  | (333) |  | 22,870 |  | 71 |  | (153,219) |  | 1,080,337 |  | (153,552) |  | 1,103,207 |
GNMA | 13 |  | (924) |  | 156,847 |  | 5 |  | (1,898) |  | 26,643 |  | (2,822) |  | 183,490 |
Commercial mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | — |  | — |  | — |  | 1 |  | (1,755) |  | 16,937 |  | (1,755) |  | 16,937 |
GNMA | 9 |  | (3,160) |  | 103,055 |  | 22 |  | (3,975) |  | 51,738 |  | (7,135) |  | 154,793 |
Asset backed securities: |  |  |  |  |  |  |  |
FFELP | — |  | — |  | — |  | 14 |  | (1,862) |  | 125,339 |  | (1,862) |  | 125,339 |
SBA | — |  | — |  | — |  | 5 |  | (28) |  | 761 |  | (28) |  | 761 |
Other debt securities | 1 |  | (9) |  | 991 |  | 2 |  | (42) |  | 1,958 |  | (50) |  | 2,950 |
Total | 82 |  | $ | (4,773) |  | $ | 307,527 |  | 213 |  | $ | (168,728) |  | $ | 1,392,635 |  | $ | (173,501) |  | $ | 1,700,162 |
HTM investment securities |  |  |  |  |  |  |  |
U.S. Treasury securities | — |  | $ | — |  | $ | — |  | 1 |  | $ | (36) |  | $ | 963 |  | $ | (36) |  | $ | 963 |
Obligations of state and political subdivisions (municipal securities) | 182 |  | (1,535) |  | 180,270 |  | 537 |  | (132,518) |  | 792,940 |  | (134,053) |  | 973,210 |
Residential mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 20 |  | (511) |  | 30,323 |  | 94 |  | (164,076) |  | 771,042 |  | (164,587) |  | 801,365 |
GNMA | 2 |  | (17) |  | 2,128 |  | 78 |  | (2,884) |  | 34,626 |  | (2,901) |  | 36,754 |
Private-label | — |  | — |  | — |  | 18 |  | (65,372) |  | 289,507 |  | (65,372) |  | 289,507 |
Commercial mortgage-related securities: |  |  |  |  |  |  |  |
FNMA/FHLMC | 1 |  | (121) |  | 8,144 |  | 44 |  | (160,660) |  | 624,770 |  | (160,781) |  | 632,914 |
GNMA | — |  | — |  | — |  | 13 |  | (7,500) |  | 52,619 |  | (7,500) |  | 52,619 |
Total | 205 |  | $ | (2,184) |  | $ | 220,865 |  | 785 |  | $ | (533,046) |  | $ | 2,566,468 |  | $ | (535,230) |  | $ | 2,787,333 |
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, 2024 represent credit deterioration as these unrealized losses are primarily attributable to changes in interest rates and the current market conditions. As of September 30, 2024, 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 $90 million and $143 million at September 30, 2024 and December 31, 2023, respectively. The Corporation had Federal Reserve Bank stock of $88 million and $87 million at September 30, 2024 and December 31, 2023, respectively. Accrued interest receivable on FHLB stock totaled $2 million and $4 million at September 30, 2024 and December 31, 2023, respectively. Accrued interest receivable on Federal Reserve Bank Stock totaled approximately $855,000 at September 30, 2024 and there was none at December 31, 2023. 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 mutual funds. The Corporation had equity securities with readily determinable fair values of $11 million and $7 million at September 30, 2024 and December 31, 2023, respectively. Equity securities without readily determinable fair values: The Corporation's portfolio of equity securities without readily determinable fair values primarily consists of an investment in a private loan fund. The Corporation had equity securities without readily determinable fair values carried at $13 million and $35 million at September 30, 2024 and December 31, 2023, respectively. During the first quarter of 2024, the Corporation sold all of its remaining Visa Class B restricted shares.

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