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Securities
9 Months Ended
Sep. 30, 2011
Securities [Abstract] 
Securities
4. Securities
The amortized cost and estimated fair market value of investment securities and mortgage-backed securities available-for-sale at September 30, 2011 and December 31, 2010 are as follows:
                                 
            Gross     Gross     Estimated  
    Amortized     Unrealized     Unrealized     Fair Market  
    Cost     Gains     Losses     Value  
            (In thousands)          
September 30, 2011
                               
Investment Securities:
                               
Equity securities
  $ 6,767     $ 641     $ —     $ 7,408  
 
                       
Total investment securities available for sale
    6,767       641       —       7,408  
 
                       
 
                               
Mortgage-backed securities:
                               
GNMA pass-through certificates
    1,190,293       28,034       (109 )     1,218,218  
FNMA pass-through certificates
    4,783,924       61,662       —       4,845,586  
FHLMC pass-through certificates
    3,685,676       65,366       —       3,751,042  
FHLMC and FNMA — REMICs
    88,825       2,070       —       90,895  
 
                       
Total mortgage-backed securities available for sale
  $ 9,748,718     $ 157,132     $ (109 )   $ 9,905,741  
 
                       
 
                               
December 31, 2010
                               
Investment securities:
                               
United States government
                               
-sponsored enterprises debt
  $ 80,000     $ 2,647     $ —     $ 82,647  
Equity securities
    6,767       381       —       7,148  
 
                       
Total investment securities available for sale
    86,767       3,028       —       89,795  
 
                       
 
                               
Mortgage-backed securities:
                               
GNMA pass-through certificates
    1,560,755       27,214       (7,487 )     1,580,482  
FNMA pass-through certificates
    10,333,033       122,305       (57,550 )     10,397,788  
FHLMC pass-through certificates
    5,521,741       129,547       (32,116 )     5,619,172  
FHLMC and FNMA — REMICs
    509,755       13,340       —       523,095  
 
                       
Total mortgage-backed securities available for sale
  $ 17,925,284     $ 292,406     $ (97,153 )   $ 18,120,537  
 
                       
The amortized cost and estimated fair market value of investment securities and mortgage-backed securities held to maturity at September 30, 2011 and December 31, 2010 are as follows:
                                 
            Gross     Gross     Estimated  
    Amortized     Unrealized     Unrealized     Fair Market  
    Cost     Gains     Losses     Value  
            (In thousands)          
September 30, 2011
                               
Investment securities:
                               
United States government-sponsored enterprises debt
  $ 1,638,954     $ 8,386     $ —     $ 1,647,340  
 
                       
Total investment securities held to maturity
    1,638,954       8,386       —       1,647,340  
 
                       
 
                               
Mortgage-backed securities:
                               
GNMA pass-through certificates
    90,787       3,329       —       94,116  
FNMA pass-through certificates
    1,284,103       85,437       (3 )     1,369,537  
FHLMC pass-through certificates
    2,322,017       134,388       —       2,456,405  
FHLMC and FNMA — REMICs
    836,650       53,510       —       890,160  
 
                       
Total mortgage-backed securities held to maturity
  $ 4,533,557     $ 276,664     $ (3 )   $ 4,810,218  
 
                       
 
                               
December 31, 2010
                               
Investment securities:
                               
United States government-sponsored enterprises debt
  $ 3,939,006     $ 3,698     $ (75,216 )   $ 3,867,488  
 
                       
Total investment securities held to maturity
    3,939,006       3,698       (75,216 )     3,867,488  
 
                       
 
                               
Mortgage-backed securities:
                               
GNMA pass-through certificates
    98,887       2,802       —       101,689  
FNMA pass-through certificates
    1,622,994       87,271       —       1,710,265  
FHLMC pass-through certificates
    2,943,565       148,248       —       3,091,813  
FHLMC and FNMA — REMICs
    1,248,926       46,846       (32 )     1,295,740  
 
                       
Total mortgage-backed securities held to maturity
  $ 5,914,372     $ 285,167     $ (32 )   $ 6,199,507  
 
                       
The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2011 and December 31, 2010.
                                                 
    Less Than 12 Months     12 Months or Longer     Total  
    Fair     Unrealized     Fair     Unrealized     Fair     Unrealized  
    Value     Losses     Value     Losses     Value     Losses  
                    (In thousands)                  
September 30, 2011
                                               
 
                                               
Held to maturity:
                                               
FNMA pass-through certificates
  $ 143     $ (3 )   $ —     $ —     $ 143     $ (3 )
 
                                   
Total temporarily impaired securities held to maturity
    143       (3 )     —       —       143       (3 )
 
                                   
 
                                               
Available for sale:
                                               
GNMA pass-through certificates
    19,754       (109 )     —       —       19,754       (109 )
 
                                   
Total temporarily impaired securities available for sale
    19,754       (109 )     —       —       19,754       (109 )
 
                                   
 
                                               
Total
  $ 19,897     $ (112 )   $ —     $ —     $ 19,897     $ (112 )
 
                                   
 
                                               
December 31, 2010
                                               
 
                                               
Held to maturity:
                                               
United States government -sponsored enterprises debt
  $ 3,524,781       (75,216 )   $ —     $ —     $ 3,524,781     $ (75,216 )
FHLMC and FNMA — REMICs
    7,373       (24 )     3,163       (8 )     10,536       (32 )
 
                                   
Total temporarily impaired securities held to maturity
    3,532,154       (75,240 )     3,163       (8 )     3,535,317       (75,248 )
 
                                   
 
                                               
Available for sale:
                                               
GNMA pass-through certificates
    424,575       (7,487 )     —       —       424,575       (7,487 )
FNMA pass-through certificates
    4,375,620       (57,550 )     —       —       4,375,620       (57,550 )
FHLMC pass-through certificates
    2,425,458       (32,116 )     —       —       2,425,458       (32,116 )
 
                                   
Total temporarily impaired securities available for sale
    7,225,653       (97,153 )     —       —       7,225,653       (97,153 )
 
                                   
 
                                               
Total
  $ 10,757,807     $ (172,393 )   $ 3,163     $ (8 )   $ 10,760,970     $ (172,401 )
 
                                   
The unrealized losses are primarily due to the changes in market interest rates subsequent to purchase. We only purchase securities issued by U.S. government-sponsored enterprises (“GSEs”) and do not own any unrated or private label securities or other high-risk securities such as those backed by sub-prime loans. We do not consider these investments to be other-than-temporarily impaired at September 30, 2011 and December 31, 2010 since the decline in market value is primarily attributable to changes in interest rates and not credit quality. In addition, the Company does not intend to sell and does not believe that it is more likely than not that we will be required to sell these investments until there is a full recovery of the unrealized loss, which may be at maturity. As a result, no impairment loss was recognized during the nine months ended September 30, 2011 or for the year ended December 31, 2010.
The amortized cost and estimated fair market value of our securities held to maturity and available-for-sale at September 30, 2011, by contractual maturity, are shown below. The table does not include the effect of prepayments or scheduled principal amortization. The expected maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations. Equity securities have been excluded from this table.
                         
    Amortized Cost     Estimated  
    Mortgage-backed     Investment     Fair Market  
    securities     securities     Value  
            (In thousands)          
September 30, 2011
                       
 
                       
Held to Maturity:
                       
Due in one year or less
  $ 2     $ —     $ 2  
Due after one year through five years
    1,546       —       1,679  
Due after five years through ten years
    9,231       —       9,840  
Due after ten years
    4,522,778       1,638,954       6,446,037  
 
                 
Total held to maturity
  $ 4,533,557     $ 1,638,954     $ 6,457,558  
 
                 
 
                       
Available for Sale:
                       
Due after ten years
  $ 9,748,718     $ —     $ 9,905,741  
 
                 
Total available for sale
  $ 9,748,718     $ —     $ 9,905,741  
 
                 
Sales of mortgage-backed securities available-for-sale amounted to $8.96 billion and $1.90 billion for the nine months ended September 30, 2011 and 2010, respectively, resulting in realized gains of $100.0 million and $92.4 million for the same respective periods. There were sales of $80.0 million of investment securities available-for-sale during the nine months ended September 30, 2011. There were no sales of investment securities available-for-sale or held to maturity during the nine months ended September 30, 2010. Gross realized gains on sales and calls of investment securities available-for-sale were $2.5 million during the first nine months of 2011. Gains and losses on the sale of all securities are determined using the specific identification method.