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Securities

3 Months Ended

Mar. 31, 2025

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, 2025												December 31, 2024
						Fair Value						Net Unrealized Gain (Loss)						Fair Value						Net Unrealized Gain (Loss)
U.S. government securities						$	1,497					$	—					$	21,275					$	(60)
Residential agency mortgage-backed securities						5,713,746						21,154						4,792,695						(37,439)
Municipal securities						88,189						(1,371)						62,230						(566)
Other trading securities						48,320						187						22,890						33
Total trading securities						$	5,851,752					$	19,970					$	4,899,090					$	(38,032)

Investment Securities

The amortized cost and fair values of investment securities are as follows (in thousands):

						March 31, 2025
						Amortized						Carrying						Fair						Gross Unrealized
						Cost						Value1						Value						Gain						Loss
Municipal securities						$	92,849					$	92,849					$	94,878					$	2,289					$	(260)
Mortgage-backed securities:
Residential agency						1,936,950						1,828,775						1,662,714						88						(166,149)
Commercial agency						17,257						16,294						15,653						—						(641)
Other debt securities						15,788						15,788						14,785						—						(1,003)
Total investment securities						2,062,844						1,953,706						1,788,030						2,377						(168,053)
Allowance for credit losses						(193)						(193)						—						—						—
Investment securities, net of allowance						$	2,062,651					$	1,953,513					$	1,788,030					$	2,377					$	(168,053)

1    Carrying value includes $109 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 AFS securities portfolio to the investment securities portfolio.

						December 31, 2024
						Amortized						Carrying						Fair						Gross Unrealized
						Cost						Value1						Value						Gain						Loss
Municipal securities						$	104,467					$	104,467					$	106,489					$	2,370					$	(348)
Mortgage-backed securities:
Residential agency						1,998,017						1,880,473						1,680,800						81						(199,754)
Commercial agency						17,257						16,220						15,357						—						(863)
Other debt securities						16,288						16,288						15,283						—						(1,005)
Total investment securities						2,136,029						2,017,448						1,817,929						2,451						(201,970)
Allowance for credit losses						(223)						(223)						—						—						—
Investment securities, net of allowance						$	2,135,806					$	2,017,225					$	1,817,929					$	2,451					$	(201,970)

1    Carrying value includes $119 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 AFS securities portfolio to the investment securities portfolio.

The amortized cost and fair values of investment securities at March 31, 2025, 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 Maturity1
Fixed maturity debt securities:
Carrying value						$	18,022					$	90,851					$	16,045					$	13					$	124,931					2.63
Fair value						18,233						92,178						14,892						13						125,316
Residential mortgage-backed securities:
Carrying value2																														$	1,828,775
Fair value																														1,662,714
Total investment securities:
Carrying value																														$	1,953,706
Fair value																														1,788,030

1Expected maturities may differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without penalty.

2The average expected lives of residential mortgage-backed securities were 4.5 years based upon current prepayment assumptions.

Temporarily Impaired Investment Securities

(Dollars in thousands):

						March 31, 2025
						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						14						$	10,941					$	27					$	7,500					$	233					$	18,441					$	260
Mortgage-backed securities:
Residential agency						116						—						—						1,661,816						166,149						1,661,816						166,149
Commercial agency						2						—						—						15,653						641						15,653						641
Other debt securities						3						—						—						9,273						1,003						9,273						1,003
Total investment securities						135						$	10,941					$	27					$	1,694,242					$	168,026					$	1,705,183					$	168,053

						December 31, 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						20						$	14,485					$	65					$	7,107					$	283					$	21,592					$	348
Mortgage-backed securities:
Residential agency						116						—						—						1,679,889						199,754						1,679,889						199,754
Commercial agency						2						—						—						15,357						863						15,357						863
Other debt securities						3						—						—						9,271						1,005						9,271						1,005
Total investment securities						141						$	14,485					$	65					$	1,711,624					$	201,905					$	1,726,109					$	201,970

Available-for-Sale Securities 

The amortized cost and fair value of available-for-sale securities are as follows (in thousands):

						March 31, 2025
						Amortized						Fair						Gross Unrealized
						Cost						Value						Gain						Loss
U.S. Treasury						$	1,000					$	957					$	—					$	(43)
Municipal securities						234,552						222,282						1						(12,271)
Mortgage-backed securities:
Residential agency						8,974,553						8,839,322						56,854						(192,085)
Residential non-agency						784,875						760,144						11,850						(36,581)
Commercial agency						3,470,904						3,279,699						3,326						(194,531)
Other debt securities						500						473						—						(27)
Total available-for-sale securities						$	13,466,384					$	13,102,877					$	72,031					$	(435,538)

						December 31, 2024
						Amortized						Fair						Gross Unrealized
						Cost						Value						Gain						Loss
U.S. Treasury						$	1,000					$	945					$	—					$	(55)
Municipal securities						240,528						225,568						2						(14,962)
Mortgage-backed securities:
Residential agency						8,895,900						8,639,389						17,936						(274,447)
Residential non-agency						814,542						781,209						11,247						(44,580)
Commercial agency						3,436,465						3,204,016						726						(233,175)
Other debt securities						500						473						—						(27)
Total available-for-sale securities						$	13,388,935					$	12,851,600					$	29,911					$	(567,246)

The amortized cost and fair values of available-for-sale securities at March 31, 2025, 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 Maturity1
Fixed maturity debt securities:
Amortized cost			$	275,064					$	2,520,815					$	493,021					$	418,056					$	3,706,956					4.84
Fair value			272,659						2,366,001						458,539						406,212						3,503,411
Residential mortgage-backed securities:
Amortized cost2																											$	9,759,428
Fair value																											9,599,466
Total available-for-sale securities:
Amortized cost																											$	13,466,384
Fair value																											13,102,877

1Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalty.

2The average expected lives of residential mortgage-backed securities were 4.2 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,
			2025						2024
Proceeds			$	—					$	735,994
Gross realized gains			—						233
Gross realized losses			—						(45,404)
Related federal and state income tax expense (benefit)			—						(10,624)

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 $11.4 billion at March 31, 2025 and $9.9 billion at December 31, 2024. The secured parties do not have the right to sell or repledge these securities.

Temporarily Impaired Available-for-Sale Securities

(Dollars in thousands)

						March 31, 2025
						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						$	—					$	—					$	957					$	43					$	957					$	43
Municipal securities						104						1,043						5						208,223						12,266						209,266						12,271
Mortgage-backed securities:
Residential agency						696						1,398,583						14,364						2,750,884						177,721						4,149,467						192,085
Residential non-agency						34						58,785						366						451,926						36,215						510,711						36,581
Commercial agency						214						93,840						916						2,714,022						193,615						2,807,862						194,531
Other debt securities						1						—						—						473						27						473						27
Total available-for-sale securities						1,050						$	1,552,251					$	15,651					$	6,126,485					$	419,887					$	7,678,736					$	435,538

						December 31, 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						$	—					$	—					$	945					$	55					$	945					$	55
Municipal securities						113						1,041						13						222,432						14,949						223,473						14,962
Mortgage-backed securities:
Residential agency						831						3,561,318						50,102						2,880,641						224,345						6,441,959						274,447
Residential non-agency						36						93,113						1,124						457,701						43,456						550,814						44,580
Commercial agency						220						190,718						1,878						2,819,206						231,297						3,009,924						233,175
Other debt securities						1						—						—						473						27						473						27
Total available-for-sale securities						1,202						$	3,846,190					$	53,117					$	6,381,398					$	514,129					$	10,227,588					$	567,246

Based on evaluations of impaired securities as of March 31, 2025, the Company does not intend to sell any impaired AFS 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, 2025												December 31, 2024
						Fair Value						Net Unrealized Gain (Loss)						Fair Value						Net Unrealized Gain (Loss)
Residential agency mortgage-backed securities						$	17,550					$	(1,337)					$	17,876					$	(1,662)

X

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 940
-SubTopic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/940-320/tableOfContent

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name Regulation S-K (SK)
-Number 229
-Section 1403
-Paragraph b
-Publisher SEC

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/320/tableOfContent

Reference 4: 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 5: 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 6: 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 7: 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

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