XML 27 R10.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Securities | 12 Months Ended
--- | ---
Dec. 31, 2023
Marketable Securities [Abstract] |
Securities [Text Block] | Securities Trading Securities The fair value and net unrealized gain (loss) included in trading securities is as follows (in thousands):
|  | December 31, 2023 |  | December 31, 2022
|  | Fair Value |  | Net Unrealized Gain (Loss) |  | Fair Value |  | Net Unrealized Gain (Loss)
U.S. government securities |  | $ | 10,959 |  |  | $ | 28 |  |  | $ | 9,823 |  |  | $ | (16) |
Residential agency mortgage-backed securities |  | 5,105,137 |  |  | 98,124 |  |  | 4,406,848 |  |  | 4 |
Municipal securities |  | 37,413 |  |  | 323 |  |  | 21,484 |  |  | (136) |
Other trading securities |  | 39,996 |  |  | 160 |  |  | 26,006 |  |  | (175) |
Total trading securities |  | $ | 5,193,505 |  |  | $ | 98,635 |  |  | $ | 4,464,161 |  |  | $ | (323) |
Investment Securities The amortized cost and fair values of investment securities are as follows (in thousands):
|  | December 31, 2023
|  | Amortized |  | Carrying |  | Fair |  | Gross Unrealized
|  | Cost |  | Value 1 |  | Value |  | Gain |  | Loss
Municipal securities |  | $ | 120,705 |  |  | $ | 120,705 |  |  | $ | 125,525 |  |  | $ | 5,014 |  |  | $ | (194) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential agency |  | 2,255,340 |  |  | 2,092,083 |  |  | 1,917,810 |  |  | 125 |  |  | (174,398) |
Commercial agency |  | 17,258 |  |  | 15,914 |  |  | 15,067 |  |  | — |  |  | (847) |
Other debt securities |  | 15,787 |  |  | 15,787 |  |  | 14,184 |  |  | — |  |  | (1,603) |
Total investment securities |  | 2,409,090 |  |  | 2,244,489 |  |  | 2,072,586 |  |  | 5,139 |  |  | (177,042) |
Allowance for credit losses |  | (336) |  |  | (336) |  |  | — |  |  | — |  |  | — |
Investment securities, net of allowance |  | $ | 2,408,754 |  |  | $ | 2,244,153 |  |  | $ | 2,072,586 |  |  | $ | 5,139 |  |  | $ | (177,042) |
1 Carrying value includes $165 million of net unrealized loss which remains in AOCI in the Consolidated Balance Sheets related to certain securities transferred during the second quarter of 2022 from the Available for Sale securities portfolio to the Investment securities portfolio.
|  | December 31, 2022
|  | Amortized |  | Carrying |  | Fair |  | Gross Unrealized
|  | Cost |  | Value 1 |  | Value |  | Gain |  | Loss
Municipal securities |  | $ | 170,629 |  |  | $ | 170,629 |  |  | $ | 176,621 |  |  | $ | 6,456 |  |  | $ | (464) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential agency |  | 2,538,565 |  |  | 2,315,219 |  |  | 2,143,360 |  |  | 155 |  |  | (172,014) |
Commercial agency |  | 17,259 |  |  | 15,609 |  |  | 14,588 |  |  | — |  |  | (1,021) |
Other debt securities |  | 12,788 |  |  | 12,788 |  |  | 12,199 |  |  | — |  |  | (589) |
Total investment securities |  | 2,739,241 |  |  | 2,514,245 |  |  | 2,346,768 |  |  | 6,611 |  |  | (174,088) |
Allowance for credit losses |  | (558) |  |  | (558) |  |  | — |  |  | — |  |  | — |
Investment securities, net of allowance |  | $ | 2,738,683 |  |  | $ | 2,513,687 |  |  | $ | 2,346,768 |  |  | $ | 6,611 |  |  | $ | (174,088) |
1 Carrying value includes $225 million of net unrealized loss which remains in AOCI in the Consolidated Balance Sheets related to certain securities transferred during the second quarter of 2022 from the Available for Sale securities portfolio to the Investment securities portfolio. The amortized cost and fair values of investment securities at December 31, 2023, 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: |  |  |  |  |  |  |  |  |  |  |  |
Carrying value |  | $ | 17,262 |  |  | $ | 108,343 |  |  | $ | 26,788 |  |  | $ | 13 |  |  | $ | 152,406 |  |  | 3.29 |
Fair value |  | 17,314 |  |  | 112,140 |  |  | 25,309 |  |  | 13 |  |  | 154,776 |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Carrying value |  |  |  |  |  |  |  |  |  | $ | 2,092,083 |  |  | 2
Fair value |  |  |  |  |  |  |  |  |  | 1,917,810 |  |  |
Total investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Carrying value |  |  |  |  |  |  |  |  |  | $ | 2,244,489 |  |  |
Fair value |  |  |  |  |  |  |  |  |  | 2,072,586 |  |  |
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 5.0 years based upon current prepayment assumptions. Temporarily Impaired Investment Securities (In thousands):
|  | December 31, 2023
|  | 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 |  | 13 |  |  | $ | 1,931 |  |  | $ | 5 |  |  | $ | 6,600 |  |  | $ | 189 |  |  | $ | 8,531 |  |  | $ | 194 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency |  | 116 |  |  | — |  |  | — |  |  | 1,916,732 |  |  | 174,398 |  |  | 1,916,732 |  |  | 174,398 |
Commercial agency |  | 2 |  |  | — |  |  | — |  |  | 15,067 |  |  | 847 |  |  | 15,067 |  |  | 847 |
Other debt securities |  | 3 |  |  | — |  |  | — |  |  | 8,672 |  |  | 1,603 |  |  | 8,672 |  |  | 1,603 |
Total investment securities |  | 134 |  |  | $ | 1,931 |  |  | $ | 5 |  |  | $ | 1,947,071 |  |  | $ | 177,037 |  |  | $ | 1,949,002 |  |  | $ | 177,042 |
|  | December 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 |  | 22 |  |  | $ | 18,037 |  |  | $ | 406 |  |  | $ | 544 |  |  | $ | 58 |  |  | $ | 18,581 |  |  | $ | 464 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency |  | 116 |  |  | 2,142,114 |  |  | 172,014 |  |  | — |  |  | — |  |  | 2,142,114 |  |  | 172,014 |
Commercial agency |  | 2 |  |  | 14,588 |  |  | 1,021 |  |  | — |  |  | — |  |  | 14,588 |  |  | 1,021 |
Other debt securities |  | 3 |  |  | 9,428 |  |  | 571 |  |  | 257 |  |  | 18 |  |  | 9,685 |  |  | 589 |
Total investment securities |  | 143 |  |  | $ | 2,184,167 |  |  | $ | 174,012 |  |  | $ | 801 |  |  | $ | 76 |  |  | $ | 2,184,968 |  |  | $ | 174,088 |
Available for Sale Securities The amortized cost and fair value of available for sale securities are as follows (in thousands):
|  | December 31, 2023
|  | Amortized |  | Fair |  | Gross Unrealized |  |
|  | Cost |  | Value |  | Gain |  | Loss |  |
U.S. Treasury |  | $ | 1,000 |  |  | $ | 925 |  |  | $ | — |  |  | $ | (75) |  |  |
Municipal securities |  | 544,707 |  |  | 502,833 |  |  | 1 |  |  | (41,875) |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential agency |  | 7,066,645 |  |  | 6,834,720 |  |  | 36,983 |  |  | (268,908) |  |  |
Residential non-agency |  | 833,535 |  |  | 799,877 |  |  | 12,865 |  |  | (46,523) |  |  |
Commercial agency |  | 4,456,918 |  |  | 4,147,853 |  |  | 2,972 |  |  | (312,037) |  |  |
Other debt securities |  | 500 |  |  | 473 |  |  | — |  |  | (27) |  |  |
Total available for sale securities |  | $ | 12,903,305 |  |  | $ | 12,286,681 |  |  | $ | 52,821 |  |  | $ | (669,445) |  |  |
|  | December 31, 2022
|  | Amortized |  | Fair |  | Gross Unrealized |  |
|  | Cost |  | Value |  | Gain |  | Loss |  |
U.S. Treasury |  | $ | 1,000 |  |  | $ | 898 |  |  | $ | — |  |  | $ | (102) |  |  |
Municipal securities |  | 687,875 |  |  | 624,500 |  |  | 321 |  |  | (63,696) |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential agency |  | 6,161,358 |  |  | 5,814,496 |  |  | 13,085 |  |  | (359,947) |  |  |
Residential non-agency |  | 616,423 |  |  | 577,576 |  |  | 11,776 |  |  | (50,623) |  |  |
Commercial agency |  | 4,892,257 |  |  | 4,475,917 |  |  | 3,479 |  |  | (419,819) |  |  |
Other debt securities |  | 500 |  |  | 473 |  |  | — |  |  | (27) |  |  |
Total available for sale securities |  | $ | 12,359,413 |  |  | $ | 11,493,860 |  |  | $ | 28,661 |  |  | $ | (894,214) |  |  |
The amortized cost and fair values of available for sale securities at December 31, 2023, 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 | $ | 397,083 |  |  | $ | 3,008,053 |  |  | $ | 1,122,067 |  |  | $ | 475,922 |  |  | $ | 5,003,125 |  |  | 5.28 |
Fair value | 392,254 |  |  | 2,764,659 |  |  | 1,040,314 |  |  | 454,857 |  |  | 4,652,084 |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  | $ | 7,900,180 |  |  | 2
Fair value |  |  |  |  |  |  |  |  | 7,634,597 |  |  |
Total available for sale securities: |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  | $ | 12,903,305 |  |  |
Fair value |  |  |  |  |  |  |  |  | 12,286,681 |  |  |
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 4.0 years based upon current prepayment assumptions. Sales of available for sale securities resulted in gains and losses as follows (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Proceeds | $ | 834,704 |  |  | $ | 307,481 |  |  | $ | 622,881 |
Gross realized gains | 1,180 |  |  | 5,054 |  |  | 5,702 |
Gross realized losses | (31,816) |  |  | (6,025) |  |  | (1,998) |
Related federal and state income tax expense (benefit) | (7,206) |  |  | (227) |  |  | 889 |
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 $13.9 billion at December 31, 2023 and $11.2 billion at December 31, 2022. The secured parties do not have the right to sell or repledge these securities. Temporarily Impaired Available for Sale Securities (In thousands)
|  | December 31, 2023
|  | 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 |  |  | $ | — |  |  | $ | — |  |  | $ | 925 |  |  | $ | 75 |  |  | $ | 925 |  |  | $ | 75 |
Municipal securities |  | 190 |  |  | 6,799 |  |  | 410 |  |  | 494,955 |  |  | 41,465 |  |  | 501,754 |  |  | 41,875 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency |  | 630 |  |  | 690,118 |  |  | 3,689 |  |  | 3,717,975 |  |  | 265,219 |  |  | 4,408,093 |  |  | 268,908 |
Residential non-agency |  | 32 |  |  | 116,077 |  |  | 1,244 |  |  | 451,370 |  |  | 45,279 |  |  | 567,447 |  |  | 46,523 |
Commercial agency |  | 269 |  |  | 392,828 |  |  | 2,626 |  |  | 3,421,757 |  |  | 309,411 |  |  | 3,814,585 |  |  | 312,037 |
Other debt securities |  | 1 |  |  | — |  |  | — |  |  | 473 |  |  | 27 |  |  | 473 |  |  | 27 |
Total available for sale securities |  | 1,123 |  |  | $ | 1,205,822 |  |  | $ | 7,969 |  |  | $ | 8,087,455 |  |  | $ | 661,476 |  |  | $ | 9,293,277 |  |  | $ | 669,445 |
|  | December 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 |  |  | $ | — |  |  | $ | — |  |  | $ | 899 |  |  | $ | 102 |  |  | $ | 899 |  |  | $ | 102 |
Municipal securities |  | 227 |  |  | 146,634 |  |  | 5,301 |  |  | 428,248 |  |  | 58,395 |  |  | 574,882 |  |  | 63,696 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency |  | 613 |  |  | 3,879,582 |  |  | 256,973 |  |  | 863,732 |  |  | 102,974 |  |  | 4,743,314 |  |  | 359,947 |
Residential non-agency |  | 26 |  |  | 499,716 |  |  | 50,623 |  |  | — |  |  | — |  |  | 499,716 |  |  | 50,623 |
Commercial agency |  | 285 |  |  | 1,647,778 |  |  | 63,701 |  |  | 2,535,816 |  |  | 356,118 |  |  | 4,183,594 |  |  | 419,819 |
Other debt securities |  | 1 |  |  | — |  |  | — |  |  | 473 |  |  | 27 |  |  | 473 |  |  | 27 |
Total available for sale securities |  | 1,153 |  |  | $ | 6,173,710 |  |  | $ | 376,598 |  |  | $ | 3,829,168 |  |  | $ | 517,616 |  |  | $ | 10,002,878 |  |  | $ | 894,214 |
No credit impairment of available for sale securities was identified in 2023. Unrealized losses are related to changes in interest rates subsequent to purchase and are not attributable to credit. Based on evaluations of impaired securities as of December 31, 2023, the Company does not intend to sell any impaired available for sale 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 with changes in the fair value recognized in earnings as they occur. Certain residential mortgage-backed securities issued by U.S. government agencies and derivative contracts 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):
|  | December 31, 2023 |  | December 31, 2022
|  | Fair Value |  | Net Unrealized Gain (Loss) |  | Fair Value |  | Net Unrealized Gain (Loss)
Residential agency mortgage-backed securities |  | $ | 20,671 |  |  | $ | (1,406) |  |  | $ | 296,590 |  |  | $ | 338 |

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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