NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables)

6 Months Ended

Jun. 30, 2022

Transfers and Servicing [Abstract]

Changes in Servicing Assets [Table Text Block]

The changes in MSRs are shown below for the indicated periods:
		Quarter Ended				Six-Month Period Ended
		June 30,				June 30,
(In thousands)		2022		2021		2022		2021
Balance at beginning of period		$	30,753	$	32,710	$	30,986	$	33,071
Capitalization of servicing assets			828		1,550		1,958		2,900
Amortization			(1,273)		(1,920)		(2,603)		(3,557)
Temporary impairment recoveries, net			9		30		64		37
Other (1)			(40)		(35)		(128)		(116)
	Balance at end of period	$	30,277	$	32,335	$	30,277	$	32,335
(1)	Represents adjustments related to the repurchase of loans serviced for others.

Changes in Impairment Allowance [Table Text Block]

Changes in the impairment allowance were as follows for the indicated periods:
		Quarter Ended				Six-Month Period Ended
		June 30,				June 30,
		2022		2021		2022		2021
(In thousands)
Balance at beginning of period		$	23	$	195	$	78	$	202
Recoveries			(9)		(30)		(64)		(37)
	Balance at end of period	$	14	$	165	$	14	$	165

Components of Net Servicing Income [Table Text Block]

The components of net servicing income, included as part of mortgage banking activities in the consolidated statements of income, are shown below for the indicated periods:
		Quarter Ended				Six-Month Period Ended
		June 30,				June 30,
		2022		2021		2022		2021
(In thousands)
Servicing fees		$	2,821	$	3,018	$	5,640	$	5,933
Late charges and prepayment penalties			219		217		413		456
Adjustment for loans repurchased			(40)		(35)		(128)		(116)
	Servicing income, gross		3,000		3,200		5,925		6,273
Amortization and impairment of servicing assets			(1,264)		(1,890)		(2,539)		(3,520)
	Servicing income, net	$	1,736	$	1,310	$	3,386	$	2,753

Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans [Table Text Block]

The Corporation’s MSRs are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair value at the time of sale of the related mortgages for the indicated periods ranged as follows:
	Weighted
	Average		Maximum		Minimum
Six-Month Period Ended June 30, 2022:
Constant prepayment rate:
Government-guaranteed mortgage loans	6.7	%	18.3	%	4.8	%
Conventional conforming mortgage loans	6.6	%	18.4	%	3.4	%
Conventional non-conforming mortgage loans	6.3	%	21.9	%	4.5	%
Discount rate:
Government-guaranteed mortgage loans	11.9	%	12.0	%	11.5	%
Conventional conforming mortgage loans	9.9	%	10.0	%	9.5	%
Conventional non-conforming mortgage loans	12.4	%	14.5	%	11.5	%
Six-Month Period Ended June 30, 2021:
Constant prepayment rate:
Government-guaranteed mortgage loans	6.1	%	14.0	%	3.7	%
Conventional conforming mortgage loans	6.2	%	17.4	%	2.8	%
Conventional non-conforming mortgage loans	-	%	-	%	-	%
Discount rate:
Government-guaranteed mortgage loans	12.0	%	12.0	%	12.0	%
Conventional conforming mortgage loans	10.0	%	10.0	%	10.0	%
Conventional non-conforming mortgage loans	-	%	-	%	-	%

Weighted-Averages of Key Economic Assumptions in Valuation Model [Table Text Block]

The weighted averages of the key economic assumptions that the Corporation used in its valuation model and the sensitivity of the current fair value to immediate 10% and 20% adverse changes in those assumptions for mortgage loans as of June 30, 2022 and December 31, 2021 were as follows:

	June 30,			December 31,
(Dollars in thousands)	2022			2021
Carrying amount of servicing assets	$	30,277		$	30,986
Fair value	$	44,337		$	42,132
Weighted-average expected life (in years)		7.94			7.96
Constant prepayment rate (weighted-average annual rate)		6.48	%		6.55	%
Decrease in fair value due to 10% adverse change	$	1,044		$	1,027
Decrease in fair value due to 20% adverse change	$	2,046		$	2,011
Discount rate (weighted-average annual rate)		11.17	%		11.17	%
Decrease in fair value due to 10% adverse change	$	1,962		$	1,852
Decrease in fair value due to 20% adverse change	$	3,770		$	3,561