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v3.22.1

Securities | 3 Months Ended
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Mar. 31, 2022
Marketable Securities [Abstract] |
Securities [Text Block] | Securities Trading Securities The fair value and net unrealized gain (loss) included in trading securities are as follows (in thousands):
|  | March 31, 2022 |  | December 31, 2021
|  | Fair Value |  | Net Unrealized Gain (Loss) |  | Fair Value |  | Net Unrealized Gain (Loss)
U.S. government securities |  | $ | 13,513 |  |  | $ | (10) |  |  | $ | 23,610 |  |  | $ | 40 |
Residential agency mortgage-backed securities |  | 4,827,504 |  |  | (135,438) |  |  | 9,068,900 |  |  | (9,338) |
Municipal securities |  | 24,539 |  |  | (478) |  |  | 25,783 |  |  | 34 |
Other trading securities |  | 25,540 |  |  | (148) |  |  | 18,520 |  |  | (26) |
Total trading securities |  | $ | 4,891,096 |  |  | $ | (136,074) |  |  | $ | 9,136,813 |  |  | $ | (9,290) |
Investment Securities The amortized cost and fair values of investment securities are as follows (in thousands):
|  | March 31, 2022
|  | Amortized |  | Fair |  | Gross Unrealized
|  | Cost |  | Value |  | Gain |  | Loss
Municipal securities |  | $ | 177,683 |  |  | $ | 184,214 |  |  | $ | 7,155 |  |  | $ | (624) |
Residential agency mortgage-backed securities |  | 6,486 |  |  | 6,741 |  |  | 283 |  |  | (28) |
Other debt securities |  | 288 |  |  | 280 |  |  | — |  |  | (8) |
Total investment securities |  | 184,457 |  |  | 191,235 |  |  | 7,438 |  |  | (660) |
Allowance for credit losses |  | (633) |  |  |  |  |  |  |
Investment securities, net of allowance |  | $ | 183,824 |  |  | $ | 191,235 |  |  | $ | 7,438 |  |  | $ | (660) |
|  | December 31, 2021
|  | Amortized |  | Fair |  | Gross Unrealized
|  | Cost |  | Value |  | Gain |  | Loss
Municipal securities |  | $ | 203,772 |  |  | $ | 223,609 |  |  | $ | 19,851 |  |  | $ | (14) |
Residential agency mortgage-backed securities |  | 6,939 |  |  | 7,500 |  |  | 561 |  |  | — |
Other debt securities |  | 288 |  |  | 286 |  |  | — |  |  | (2) |
Total investment securities |  | 210,999 |  |  | 231,395 |  |  | 20,412 |  |  | (16) |
Allowance for credit losses |  | (555) |  |  |  |  |  |  |
Investment securities, net of allowance |  | $ | 210,444 |  |  | $ | 231,395 |  |  | $ | 20,412 |  |  | $ | (16) |
The amortized cost and fair values of investment securities at March 31, 2022, by contractual maturity, are as shown in the following table (dollars in thousands):
|  | Less than One Year |  | One to Five Years |  | Six to Ten Years |  | Over Ten Years |  | Total |  | Weighted Average Maturity 1
Fixed maturity debt securities: |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  | $ | 14,901 |  |  | $ | 104,681 |  |  | $ | 52,359 |  |  | $ | 6,030 |  |  | $ | 177,971 |  |  | 4.55 |
Fair value |  | 15,080 |  |  | 110,636 |  |  | 52,834 |  |  | 5,944 |  |  | 184,494 |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  |  | $ | 6,486 |  |  | 2
Fair value |  |  |  |  |  |  |  |  |  | 6,741 |  |  |
Total investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  |  | $ | 184,457 |  |  |
Fair value |  |  |  |  |  |  |  |  |  | 191,235 |  |  |
1 Expected maturities may differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without penalty. 2 The average expected lives of residential mortgage-backed securities were 4.4 years based upon current prepayment assumptions. Temporarily Impaired Investment Securities (in thousands):
|  | March 31, 2022
|  | Number of Securities |  | Less Than 12 Months |  | 12 Months or Longer |  | Total
|  |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Investment: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | 35 |  |  | $ | 22,394 |  |  | $ | 566 |  |  | $ | 544 |  |  | $ | 58 |  |  | $ | 22,938 |  |  | $ | 624 |
Residential agency mortgage-backed securities |  | 1 |  |  | 1,534 |  |  | 28 |  |  | — |  |  | — |  |  | 1,534 |  |  | 28 |
Other debt securities |  | 2 |  |  | 243 |  |  | 7 |  |  | 24 |  |  | 1 |  |  | 267 |  |  | 8 |
Total investment securities |  | 38 |  |  | $ | 24,171 |  |  | $ | 601 |  |  | $ | 568 |  |  | $ | 59 |  |  | $ | 24,739 |  |  | $ | 660 |
|  | December 31, 2021
|  | Number of Securities |  | Less Than 12 Months |  | 12 Months or Longer |  | Total
|  |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Investment: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 587 |  |  | $ | 14 |  |  | $ | 587 |  |  | $ | 14 |
Other debt securities |  | 2 |  |  | 273 |  |  | 2 |  |  | — |  |  | — |  |  | 273 |  |  | 2 |
Total investment securities |  | 3 |  |  | $ | 273 |  |  | $ | 2 |  |  | $ | 587 |  |  | $ | 14 |  |  | $ | 860 |  |  | $ | 16 |
Available for Sale Securities The amortized cost and fair value of available for sale securities are as follows (in thousands):
|  | March 31, 2022 |  |
|  | Amortized |  | Fair |  | Gross Unrealized |  |
|  | Cost |  | Value |  | Gain |  | Loss |  |
U.S. Treasury |  | $ | 1,000 |  |  | $ | 947 |  |  | $ | — |  |  | $ | (53) |  |  |
Municipal securities |  | 562,065 |  |  | 526,322 |  |  | 144 |  |  | (35,887) |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential agency |  | 7,913,760 |  |  | 7,612,021 |  |  | 14,727 |  |  | (316,466) |  |  |
Residential non-agency |  | 339,904 |  |  | 347,187 |  |  | 13,279 |  |  | (5,996) |  |  |
Commercial agency |  | 4,623,902 |  |  | 4,407,585 |  |  | 2,809 |  |  | (219,126) |  |  |
Other debt securities |  | 500 |  |  | 472 |  |  | — |  |  | (28) |  |  |
Total available for sale securities |  | $ | 13,441,131 |  |  | $ | 12,894,534 |  |  | $ | 30,959 |  |  | $ | (577,556) |  |  |
|  | December 31, 2021 |  |
|  | Amortized |  | Fair |  | Gross Unrealized |  |
|  | Cost |  | Value |  | Gain |  | Loss |  |
U.S. Treasury |  | $ | 1,001 |  |  | $ | 1,000 |  |  | $ | — |  |  | $ | (1) |  |  |
Municipal securities |  | 515,551 |  |  | 508,365 |  |  | 1,302 |  |  | (8,488) |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential agency |  | 7,908,587 |  |  | 8,006,616 |  |  | 155,477 |  |  | (57,448) |  |  |
Residential non-agency |  | 10,625 |  |  | 24,339 |  |  | 13,714 |  |  | — |  |  |
Commercial agency |  | 4,628,172 |  |  | 4,617,025 |  |  | 36,868 |  |  | (48,015) |  |  |
Other debt securities |  | 500 |  |  | 472 |  |  | — |  |  | (28) |  |  |
Total available for sale securities |  | $ | 13,064,436 |  |  | $ | 13,157,817 |  |  | $ | 207,361 |  |  | $ | (113,980) |  |  |
The amortized cost and fair values of available for sale securities at March 31, 2022, by contractual maturity, are as shown in the following table (dollars in thousands):
| Less than One Year |  | One to Five Years |  | Six to Ten Years |  | Over Ten Years |  | Total |  | Weighted Average Maturity 1
Fixed maturity debt securities: |  |  |  |  |  |  |  |  |  |  |
Amortized cost | $ | 48,510 |  |  | $ | 1,968,389 |  |  | $ | 2,683,456 |  |  | $ | 487,112 |  |  | $ | 5,187,467 |  |  | 6.59 |
Fair value | 48,612 |  |  | 1,911,239 |  |  | 2,507,611 |  |  | 467,864 |  |  | 4,935,326 |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  | $ | 8,253,664 |  |  | 2
Fair value |  |  |  |  |  |  |  |  | 7,959,208 |  |  |
Total available for sale securities: |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  | $ | 13,441,131 |  |  |
Fair value |  |  |  |  |  |  |  |  | 12,894,534 |  |  |
1 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty. 2 The average expected lives of residential mortgage-backed securities were 4.3 years based upon current prepayment assumptions. Sales of available for sale securities resulted in gains and losses as follows (in thousands):
| Three Months Ended March 31, |  |
| 2022 |  | 2021 |  |  |  |
Proceeds | $ | 55,185 |  |  | $ | 56,037 |  |  |  |  |
Gross realized gains | 1,933 |  |  | 473 |  |  |  |  |
Gross realized losses | (996) |  |  | (6) |  |  |  |  |
Related federal and state income tax expense | 219 |  |  | 119 |  |  |  |  |
The fair value of debt securities pledged as collateral for repurchase agreements, public trust funds on deposit and for other purposes, as required by law was $10.0 billion at March 31, 2022 and $10.2 billion at December 31, 2021. The secured parties do not have the right to sell or repledge these securities. Temporarily Impaired Available for Sale Securities (in thousands)
|  | March 31, 2022
|  | Number of Securities |  | Less Than 12 Months |  | 12 Months or Longer |  | Total
|  |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | 1 |  |  | $ | 947 |  |  | $ | 53 |  |  | $ | — |  |  | $ | — |  |  | $ | 947 |  |  | $ | 53 |
Municipal securities |  | 202 |  |  | $ | 400,690 |  |  | $ | 26,297 |  |  | $ | 111,502 |  |  | $ | 9,590 |  |  | $ | 512,192 |  |  | $ | 35,887 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency |  | 508 |  |  | 5,127,508 |  |  | 191,126 |  |  | 1,412,323 |  |  | 125,340 |  |  | 6,539,831 |  |  | 316,466 |
Residential non-agency |  | 15 |  |  | 304,149 |  |  | 5,996 |  |  | — |  |  | — |  |  | 304,149 |  |  | 5,996 |
Commercial agency |  | 238 |  |  | 2,988,497 |  |  | 177,409 |  |  | 773,363 |  |  | 41,717 |  |  | 3,761,860 |  |  | 219,126 |
Other debt securities |  | 1 |  |  | — |  |  | — |  |  | 472 |  |  | 28 |  |  | 472 |  |  | 28 |
Total available for sale securities |  | 965 |  |  | $ | 8,821,791 |  |  | $ | 400,881 |  |  | $ | 2,297,660 |  |  | $ | 176,675 |  |  | $ | 11,119,451 |  |  | $ | 577,556 |
|  | December 31, 2021
|  | Number of Securities |  | Less Than 12 Months |  | 12 Months or Longer |  | Total
|  |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | 1 |  |  | $ | 1,000 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,000 |  |  | $ | 1 |
Municipal securities |  | 175 |  |  | $ | 423,575 |  |  | $ | 7,762 |  |  | $ | 22,476 |  |  | $ | 726 |  |  | $ | 446,051 |  |  | $ | 8,488 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency |  | 120 |  |  | 2,382,094 |  |  | 37,121 |  |  | 750,044 |  |  | 20,327 |  |  | 3,132,138 |  |  | 57,448 |
Commercial agency |  | 165 |  |  | 2,104,689 |  |  | 35,488 |  |  | 703,216 |  |  | 12,527 |  |  | 2,807,905 |  |  | 48,015 |
Other debt securities |  | 1 |  |  | — |  |  | — |  |  | 472 |  |  | 28 |  |  | 472 |  |  | 28 |
Total available for sale securities |  | 462 |  |  | $ | 4,911,358 |  |  | $ | 80,372 |  |  | $ | 1,476,208 |  |  | $ | 33,608 |  |  | $ | 6,387,566 |  |  | $ | 113,980 |
Based on evaluations of impaired securities as of March 31, 2022, the Company does not intend to sell any impaired available for sale debt securities before fair value recovers to the current amortized cost and it is more-likely-than-not that the Company will not be required to sell impaired securities before fair value recovers, which may be maturity. Fair Value Option Securities Fair value option securities represent securities which the Company has elected to carry at fair value and are separately identified on the Consolidated Balance Sheets. Changes in the fair value are recognized in earnings as they occur. Certain securities are held as an economic hedge of the mortgage servicing rights. The fair value and net unrealized gain (loss) included in fair value option securities is as follows (in thousands):
|  | March 31, 2022 |  | December 31, 2021
|  | Fair Value |  | Net Unrealized Gain (Loss) |  | Fair Value |  | Net Unrealized Gain (Loss)
Residential agency mortgage-backed securities |  | $ | 185,003 |  |  | $ | (4,017) |  |  | $ | 43,770 |  |  | $ | 1,591 |

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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- References No definition available. + Details
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