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Securities | 9 Months Ended
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Sep. 30, 2024
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):
|  | September 30, 2024 |  | December 31, 2023
|  | Fair Value |  | Net Unrealized Gain (Loss) |  | Fair Value |  | Net Unrealized Gain (Loss)
U.S. government securities |  | $ | 332,466 |  |  | $ | (569) |  |  | $ | 10,959 |  |  | $ | 28 |
Residential agency mortgage-backed securities |  | 4,672,427 |  |  | 40,586 |  |  | 5,105,137 |  |  | 98,124 |
Municipal securities |  | 76,004 |  |  | 43 |  |  | 37,413 |  |  | 323 |
Other trading securities |  | 58,828 |  |  | 124 |  |  | 39,996 |  |  | 160 |
Total trading securities |  | $ | 5,139,725 |  |  | $ | 40,184 |  |  | $ | 5,193,505 |  |  | $ | 98,635 |
Investment Securities The amortized cost and fair values of investment securities are as follows (in thousands):
|  | September 30, 2024
|  | Amortized |  | Carrying |  | Fair |  | Gross Unrealized
|  | Cost |  | Value 1 |  | Value |  | Gain |  | Loss
Municipal securities |  | $ | 104,775 |  |  | $ | 104,775 |  |  | $ | 108,213 |  |  | $ | 3,657 |  |  | $ | (219) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential agency |  | 2,061,239 |  |  | 1,933,393 |  |  | 1,799,308 |  |  | 112 |  |  | (134,197) |
Commercial agency |  | 17,257 |  |  | 16,143 |  |  | 15,603 |  |  | — |  |  | (540) |
Other debt securities |  | 15,788 |  |  | 15,788 |  |  | 14,783 |  |  | — |  |  | (1,005) |
Total investment securities |  | 2,199,059 |  |  | 2,070,099 |  |  | 1,937,907 |  |  | 3,769 |  |  | (135,961) |
Allowance for credit losses |  | (234) |  |  | (234) |  |  | — |  |  | — |  |  | — |
Investment securities, net of allowance |  | $ | 2,198,825 |  |  | $ | 2,069,865 |  |  | $ | 1,937,907 |  |  | $ | 3,769 |  |  | $ | (135,961) |
1 Carrying value includes $129 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, 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. The amortized cost and fair values of investment securities at September 30, 2024, 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 |  | $ | 18,305 |  |  | $ | 101,272 |  |  | $ | 17,116 |  |  | $ | 13 |  |  | $ | 136,706 |  |  | 2.90 |
Fair value |  | 18,429 |  |  | 104,089 |  |  | 16,068 |  |  | 13 |  |  | 138,599 |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Carrying value |  |  |  |  |  |  |  |  |  | $ | 1,933,393 |  |  | 2
Fair value |  |  |  |  |  |  |  |  |  | 1,799,308 |  |  |
Total investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Carrying value |  |  |  |  |  |  |  |  |  | $ | 2,070,099 |  |  |
Fair value |  |  |  |  |  |  |  |  |  | 1,937,907 |  |  |
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 4.6 years based upon current prepayment assumptions. Temporarily Impaired Investment Securities (dollars in thousands):
|  | September 30, 2024
|  | 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 |  |  | $ | 2,826 |  |  | $ | 8 |  |  | $ | 7,180 |  |  | $ | 211 |  |  | $ | 10,006 |  |  | $ | 219 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency |  | 116 |  |  | — |  |  | — |  |  | 1,798,334 |  |  | 134,197 |  |  | 1,798,334 |  |  | 134,197 |
Commercial agency |  | 2 |  |  | — |  |  | — |  |  | 15,603 |  |  | 540 |  |  | 15,603 |  |  | 540 |
Other debt securities |  | 3 |  |  | — |  |  | — |  |  | 9,270 |  |  | 1,005 |  |  | 9,270 |  |  | 1,005 |
Total investment securities |  | 134 |  |  | $ | 2,826 |  |  | $ | 8 |  |  | $ | 1,830,387 |  |  | $ | 135,953 |  |  | $ | 1,833,213 |  |  | $ | 135,961 |
|  | 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 |
Available-for-Sale Securities The amortized cost and fair value of available-for-sale securities are as follows (in thousands):
|  | September 30, 2024 |  |
|  | Amortized |  | Fair |  | Gross Unrealized |  |
|  | Cost |  | Value |  | Gain |  | Loss |  |
U.S. Treasury |  | $ | 1,000 |  |  | $ | 951 |  |  | $ | — |  |  | $ | (49) |  |  |
Municipal securities |  | 241,447 |  |  | 228,171 |  |  | 7 |  |  | (13,283) |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential agency |  | 8,649,078 |  |  | 8,577,928 |  |  | 98,405 |  |  | (169,555) |  |  |
Residential non-agency |  | 856,010 |  |  | 838,783 |  |  | 15,310 |  |  | (32,537) |  |  |
Commercial agency |  | 3,575,311 |  |  | 3,369,680 |  |  | 3,857 |  |  | (209,488) |  |  |
Other debt securities |  | 500 |  |  | 473 |  |  | — |  |  | (27) |  |  |
Total available-for-sale securities |  | $ | 13,323,346 |  |  | $ | 13,015,986 |  |  | $ | 117,579 |  |  | $ | (424,939) |  |  |
|  | 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) |  |  |
The amortized cost and fair values of available-for-sale securities at September 30, 2024, 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 | $ | 317,443 |  |  | $ | 2,432,178 |  |  | $ | 631,714 |  |  | $ | 436,923 |  |  | $ | 3,818,258 |  |  | 5.10 |
Fair value | 314,948 |  |  | 2,274,047 |  |  | 585,305 |  |  | 424,975 |  |  | 3,599,275 |  |  |
Residential mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  | $ | 9,505,088 |  |  | 2
Fair value |  |  |  |  |  |  |  |  | 9,416,711 |  |  |
Total available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |
Amortized cost |  |  |  |  |  |  |  |  | $ | 13,323,346 |  |  |
Fair value |  |  |  |  |  |  |  |  | 13,015,986 |  |  |
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 3.9 years based upon current prepayment assumptions. Sales of available-for-sale securities resulted in gains and losses as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Proceeds | $ | 101,522 |  |  | $ | — |  |  | $ | 839,352 |  |  | $ | 135,489 |
Gross realized gains | 1,802 |  |  | — |  |  | 2,257 |  |  | 703 |
Gross realized losses | (2,493) |  |  | — |  |  | (48,085) |  |  | (3,713) |
Related federal and state income tax expense (benefit) | (163) |  |  | — |  |  | (10,779) |  |  | (708) |
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 $10.5 billion at September 30, 2024 and $13.9 billion at December 31, 2023. The secured parties do not have the right to sell or repledge these securities. Temporarily Impaired Available-for-Sale Securities (Dollars in thousands)
|  | September 30, 2024
|  | 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 |  |  | $ | — |  |  | $ | — |  |  | $ | 951 |  |  | $ | 49 |  |  | $ | 951 |  |  | $ | 49 |
Municipal securities |  | 112 |  |  | — |  |  | — |  |  | 224,510 |  |  | 13,283 |  |  | 224,510 |  |  | 13,283 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential agency |  | 563 |  |  | 111,492 |  |  | 578 |  |  | 3,108,156 |  |  | 168,977 |  |  | 3,219,648 |  |  | 169,555 |
Residential non-agency |  | 30 |  |  | 7,505 |  |  | 8 |  |  | 481,206 |  |  | 32,529 |  |  | 488,711 |  |  | 32,537 |
Commercial agency |  | 223 |  |  | 51,254 |  |  | 70 |  |  | 2,975,299 |  |  | 209,418 |  |  | 3,026,553 |  |  | 209,488 |
Other debt securities |  | 1 |  |  | — |  |  | — |  |  | 473 |  |  | 27 |  |  | 473 |  |  | 27 |
Total available-for-sale securities |  | 930 |  |  | $ | 170,251 |  |  | $ | 656 |  |  | $ | 6,790,595 |  |  | $ | 424,283 |  |  | $ | 6,960,846 |  |  | $ | 424,939 |
|  | 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 |
Based on evaluations of impaired securities as of September 30, 2024, 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):
|  | September 30, 2024 |  | December 31, 2023
|  | Fair Value |  | Net Unrealized Gain (Loss) |  | Fair Value |  | Net Unrealized Gain (Loss)
Residential agency mortgage-backed securities |  | $ | 19,172 |  |  | $ | (1,040) |  |  | $ | 20,671 |  |  | $ | (1,406) |

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