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Securities (Tables)

9 Months Ended

Sep. 30, 2019

The fair value and net unrealized gain (loss) included in trading securities are as follows (in thousands):



	September 30, 2019					December 31, 2018
	Fair Value		Net Unrealized Gain (Loss)			Fair Value		Net Unrealized Gain (Loss)
U.S. government agency debentures	$	63,334	$	23		$	63,765	$	254
Residential agency mortgage-backed securities	1,480,458		3,851			1,791,584		9,966
Municipal and other tax-exempt securities	44,105		(99		)	34,507		(1		)
Asset-backed securities	36,928		50			42,656		685
Other debt securities	50,387		116			24,411		65
Total trading securities	$	1,675,212	$	3,941		$	1,956,923	$	10,969

Investment Securities (Held-to-Maturity) [Table Text Block]

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



	September 30, 2019
	Amortized		Fair		Gross Unrealized
	Cost		Value		Gain		Loss
Municipal and other tax-exempt	$	104,418	$	107,647	$	3,247	$	(18	)
Residential agency mortgage-backed securities	11,125		11,650		528		(3		)
Other debt securities	188,681		204,724		16,457		(414		)
Total investment securities	$	304,224	$	324,021	$	20,232	$	(435	)



	December 31, 2018
	Amortized		Fair		Gross Unrealized
	Cost		Value		Gain		Loss
Municipal and other tax-exempt	$	137,296	$	138,562	$	1,858	$	(592	)
Residential agency mortgage-backed securities	12,612		12,770		293		(135		)
Other debt securities	205,279		215,966		12,257		(1,570		)
Total investment securities	$	355,187	$	367,298	$	14,408	$	(2,297	)

The amortized cost and fair values of investment securities at September 30, 2019, 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	$	42,266	$	93,139	$	145,046	$	12,648	$	293,099	5.16
Fair value	42,426		96,704		160,698		12,543		312,371
Residential mortgage-backed securities:
Amortized cost									$	11,125	²
Fair value									11,650
Total investment securities:
Amortized cost									$	304,224
Fair value									324,021


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 4.5 years based upon current prepayment assumptions.

Temporarily Impaired Investment Securities

(in thousands):



	September 30, 2019
	Number of Securities	Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Investment:
Municipal and other tax-exempt	18	$	10,302	$	3	$	2,213	$	15	$	12,515	$	18
Residential agency mortgage-backed securities	1	2,318		3		—		—		2,318		3
Other debt securities	18	275		1		10,897		413		11,172		414
Total investment securities	37	$	12,895	$	7	$	13,110	$	428	$	26,005	$	435



	December 31, 2018
	Number of Securities	Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Investment:
Municipal and other tax-exempt	72	$	18,255	$	69	$	66,141	$	523	$	84,396	$	592
Residential agency mortgage-backed securities	2	—		—		5,633		135		5,633		135
Other debt securities	72	13,372		64		23,028		1,506		36,400		1,570
Total investment securities	146	$	31,627	$	133	$	94,802	$	2,164	$	126,429	$	2,297

Available For Sale Securities [Table Text Block]

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



	September 30, 2019
	Amortized		Fair		Gross Unrealized
	Cost		Value		Gain		Loss
U.S. Treasury	$	2,294	$	2,296	$	2	$	—
Municipal and other tax-exempt	1,772		1,848		76		—
Mortgage-backed securities:
Residential agency	7,636,923		7,740,461		114,646		(11,108		)
Residential non-agency	28,814		44,803		15,989		—
Commercial agency	3,176,188		3,234,671		61,003		(2,520		)
Other debt securities	500		472		—		(28		)
Total available for sale securities	$	10,846,491	$	11,024,551	$	191,716	$	(13,656	)



	December 31, 2018
	Amortized		Fair		Gross Unrealized
	Cost		Value		Gain		Loss
U.S. Treasury	$	496	$	493	$	—	$	(3	)
Municipal and other tax-exempt	2,782		2,864		82		—
Mortgage-backed securities:
Residential agency	5,886,323		5,804,708		16,149		(97,764		)
Residential non-agency	40,948		59,736		18,788		—
Commercial agency	2,986,297		2,953,889		7,955		(40,363		)
Other debt securities	35,545		35,430		12		(127		)
Total available for sale securities	$	8,952,391	$	8,857,120	$	42,986	$	(138,257	)

The amortized cost and fair values of available for sale securities at September 30, 2019, 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	$	35,845	$	1,069,415	$	1,476,121	$	599,373	$	3,180,754	8.29
Fair value	35,806		1,081,571		1,512,308		609,602		3,239,287
Residential mortgage-backed securities:
Amortized cost									$	7,665,737	²
Fair value									7,785,264
Total available-for-sale securities:
Amortized cost									$	10,846,491
Fair value									11,024,551


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):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Proceeds	$	261,028		$	45,293	$	628,385		$	232,826
Gross realized gains	989			250		7,316			700
Gross realized losses	(984		)	—		(6,206		)	(1,502		)
Related federal and state income tax expense (benefit)	1			64		282			(204		)

Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Table Text Block]

Temporarily Impaired Available for Sale Securities

(in thousands)



	September 30, 2019
	Number of Securities	Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for sale:
U.S. Treasury	—	$	—	$	—	$	—	$	—	$	—	$	—
Mortgage-backed securities:
Residential agency	108	931,248		3,260		753,448		7,848		1,684,696		11,108
Commercial agency	57	449,798		1,612		224,409		908		674,207		2,520
Other debt securities	1	—		—		472		28		472		28
Total available for sale securities	166	$	1,381,046	$	4,872	$	978,329	$	8,784	$	2,359,375	$	13,656



	December 31, 2018
	Number of Securities	Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for sale:
U.S. Treasury	1	$	—	$	—	$	493	$	3	$	493	$	3
Mortgage-backed securities:
Residential agency	289	510,824		1,158		3,641,370		96,606		4,152,194		97,764
Commercial agency	197	179,258		394		1,969,504		39,969		2,148,762		40,363
Other debt securities	3	9,982		63		20,436		64		30,418		127
Total available for sale securities	490	$	700,064	$	1,615	$	5,631,803	$	136,642	$	6,331,867	$	138,257

Fair Value Option Securities [Table Text Block]

The fair value and net unrealized gain (loss) included in fair value option securities is as follows (in thousands):



	September 30, 2019				December 31, 2018
	Fair Value		Net Unrealized Gain (Loss)		Fair Value		Net Unrealized Gain (Loss)
U.S. Treasury	$	552,536	$	927	$	—	$	—
Residential agency mortgage-backed securities	1,263,862		18,588		283,235		2,766
Total	$	1,816,398	$	19,515	$	283,235	$	2,766