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Securities (Tables)

12 Months Ended

Dec. 31, 2019

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



	December 31, 2019					December 31, 2018
	Fair Value		Net Unrealized Gain (Loss)			Fair Value		Net Unrealized Gain (Loss)
U.S. government agency debentures	$	44,264	$	6		$	63,765	$	254
Residential agency mortgage-backed securities	1,504,651		2,293			1,791,584		9,966
Municipal and other tax-exempt securities	26,196		60			34,507		(1		)
Asset-backed securities	14,084		(21		)	42,656		685
Other debt securities	34,726		21			24,411		65
Total trading securities	$	1,623,921	$	2,359		$	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):



	December 31, 2019
	Amortized		Fair		Gross Unrealized
	Cost		Value		Gain		Loss
Municipal and other tax-exempt securities	$	93,653	$	96,897	$	3,250	$	(6	)
Residential agency mortgage-backed securities	10,676		11,164		488		—
Other debt securities	189,089		206,341		17,547		(295		)
Total investment securities	$	293,418	$	314,402	$	21,285	$	(301	)



	December 31, 2018
	Amortized		Fair		Gross Unrealized
	Cost		Value		Gain		Loss
Municipal and other tax-exempt securities	$	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 December 31, 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	$	41,670	$	84,027	$	144,705	$	12,340	$	282,742	5.10
Fair value	41,840		87,883		161,178		12,337		303,238
Residential mortgage-backed securities:
Amortized cost									$	10,676	²
Fair value									11,164
Total investment securities:
Amortized cost									$	293,418
Fair value									314,402


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, 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	4	$	1,001	$	1	$	1,706	$	5	$	2,707	$	6
Residential agency mortgage-backed securities	—	—		—		—		—		—		—
Other debt securities	13	275		1		8,041		294		8,316		295
Total investment securities	17	$	1,276	$	2	$	9,747	$	299	$	11,023	$	301



	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):



	December 31, 2019
	Amortized		Fair		Gross Unrealized
	Cost		Value		Gain		Loss
U.S. Treasury	$	1,598	$	1,600	$	2	$	—
Municipal and other tax-exempt	1,789		1,861		72		—
Mortgage-backed securities:
Residential agency	7,956,297		8,046,096		104,912		(15,113		)
Residential non-agency	25,968		41,609		15,641		—
Commercial agency	3,145,342		3,178,005		37,808		(5,145		)
Other debt securities	500		472		—		(28		)
Total available for sale securities	$	11,131,494	$	11,269,643	$	158,435	$	(20,286	)



	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 December 31, 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	$	5,105	$	1,113,463	$	1,455,340	$	575,321	$	3,149,229	8.15
Fair value	5,114		1,122,392		1,474,002		580,430		3,181,938
Residential mortgage-backed securities:
Amortized cost									$	7,982,265	²
Fair value									8,087,705
Total available-for-sale securities:
Amortized cost									$	11,131,494
Fair value									11,269,643


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 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,
	2019			2018			2017
Proceeds	$	1,211,718		$	745,643		$	1,309,215
Gross realized gains	14,996			7,117			10,223
Gross realized losses	(9,399		)	(9,918		)	(5,795		)
Related federal and state income tax expense (benefit)	1,425			(713		)	1,722

Debt Securities, Available for Sale, Unrealized Loss Position [Table Text Block]

Temporarily Impaired Available for Sale Securities

(In thousands)



	December 31, 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:
Mortgage-backed securities:
Residential agency	133	$	1,352,597	$	6,690	$	686,002	$	8,423	$	2,038,599	$	15,113
Commercial agency	69	830,047		4,238		210,877		907		1,040,924		5,145
Other debt securities	1	—		—		472		28		472		28
Total available for sale securities	203	$	2,182,644	$	10,928	$	897,351	$	9,358	$	3,079,995	$	20,286



	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):



	December 31, 2019					December 31, 2018
	Fair Value		Net Unrealized Gain (Loss)			Fair Value		Net Unrealized Gain (Loss)
U.S. Treasury	$	9,917	$	(48	)	$	—	$	—
Residential agency mortgage-backed securities	1,088,660		14,109			283,235		2,766
Total	$	1,098,577	$	14,061		$	283,235	$	2,766