NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables)
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6 Months Ended |
Jun. 30, 2022 |
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| Transfers and Servicing [Abstract] |
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| 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. | | | | | | | | | | | | | | | |
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| 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 | | | |
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| 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 | | | | | | | | | | | | | |
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| 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 | - | % | | - | % | | - | % | | | | | | | | | |
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| 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 | |
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