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NON CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables) | 9 Months Ended
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Sep. 30, 2021
Transfers and Servicing [Abstract] |
Changes in Servicing Assets [Table Text Block] |
The changes in MSRs are shown below for the indicated periods: |  |  |  |  |  |  |  |  |  |
|  | Quarter Ended |  | Nine-Month Period Ended |
|  | September 30, |  | September 30, |
(In thousands) | 2021 |  | 2020 |  | 2021 |  | 2020 |
Balance at beginning of period | $ | 32,335 |  | $ | 26,040 |  | $ | 33,071 |  | $ | 26,762 |
Purchase of servicing assets (1) |  | - |  |  | 7,781 |  |  | - |  |  | 7,781 |
Capitalization of servicing assets |  | 1,146 |  |  | 1,598 |  |  | 4,046 |  |  | 3,168 |
Amortization |  | (1,817) |  |  | (1,594) |  |  | (5,374) |  |  | (3,808) |
Temporary impairment recoveries (charges), net |  | 53 |  |  | (163) |  |  | 90 |  |  | (206) |
Other (2) |  | (32) |  |  | (318) |  |  | (148) |  |  | (353) |
| Balance at end of period | $ | 31,685 |  | $ | 33,344 |  | $ | 31,685 |  | $ | 33,344 |
(1) | Represents servicing assets acquired in the BSPR acquisition. |
(2) | Amount represents adjustments related to the repurchase of loans serviced for others, including MSRs related to loans previously serviced for BSPR and eliminated as part of the acquisition in the third quarter of 2020. |
Changes in Impairment Allowance [Table Text Block] |
Changes in the impairment allowance were as follows for the indicated periods: |
|  | Quarter Ended |  | Nine-Month Period Ended |
|  | September 30, |  | September 30, |
|  | 2021 |  | 2020 |  | 2021 |  | 2020 |
(In thousands) |
Balance at beginning of period | $ | 165 |  | $ | 39 |  | $ | 202 |  | $ | 73 |
Temporary impairment charges |  | - |  |  | 163 |  |  | - |  |  | 301 |
OTTI of servicing assets |  | - |  |  | - |  |  | - |  |  | (77) |
Recoveries |  | (12) |  |  | - |  |  | (49) |  |  | (95) |
| Balance at end of period | $ | 153 |  | $ | 202 |  | $ | 153 |  | $ | 202 |
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 |  | Nine-Month Period Ended |  |
|  | September 30, |  | September 30, |  |
| 2021 |  | 2020 |  | 2021 |  | 2020 |  |
(In thousands) |  |  |
Servicing fees | $ | 3,213 |  | $ | 2,460 |  | $ | 9,146 |  | $ | 6,463 |  |
Late charges and prepayment penalties |  | 87 |  |  | 114 |  |  | 543 |  |  | 372 |  |
Adjustment for loans repurchased |  | (32) |  |  | (318) |  |  | (148) |  |  | (353) |  |
| Servicing income, gross |  | 3,268 |  |  | 2,256 |  |  | 9,541 |  |  | 6,482 |  |
Amortization and impairment of servicing assets |  | (1,764) |  |  | (1,757) |  |  | (5,284) |  |  | (4,014) |  |
| Servicing income, net | $ | 1,504 |  | $ | 499 |  | $ | 4,257 |  | $ | 2,468 |  |
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:
| Maximum |  | Minimum
Nine-Month Period Ended September 30, 2021: |  |  |  |  |
Constant prepayment rate: |  |  |  |  |
Government-guaranteed mortgage loans | 6.4 | % |  | 6.3 | %
Conventional conforming mortgage loans | 6.8 | % |  | 6.6 | %
Conventional non-conforming mortgage loans | 8.6 | % |  | 8.2 | %
Discount rate: |  |  |  |  |
Government-guaranteed mortgage loans | 12.0 | % |  | 12.0 | %
Conventional conforming mortgage loans | 10.0 | % |  | 10.0 | %
Conventional non-conforming mortgage loans | 13.7 | % |  | 13.6 | %
Nine-Month Period Ended September 30, 2020: |  |  |  |  |
Constant prepayment rate: |  |  |  |  |
Government-guaranteed mortgage loans | 6.4 | % |  | 6.2 | %
Conventional conforming mortgage loans | 7.2 | % |  | 6.9 | %
Conventional non-conforming mortgage loans | 9.2 | % |  | 8.6 | %
Discount rate: |  |  |  |  |
Government-guaranteed mortgage loans | 12.0 | % |  | 12.0 | %
Conventional conforming mortgage loans | 10.0 | % |  | 10.0 | %
Conventional non-conforming mortgage loans | 14.3 | % |  | 13.8 | %
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 September 30, 2021 and December 31, 2020 were as follows:
| September 30, |  | December 31,
(Dollars in thousands) | 2021 |  | 2020
Carrying amount of servicing assets | $ | 31,685 |  |  | $ | 33,071 |
Fair value | $ | 41,000 |  |  | $ | 40,294 |
Weighted-average expected life (in years) |  | 7.92 |  |  |  | 7.86 |
Constant prepayment rate (weighted-average annual rate) |  | 6.61 | % |  |  | 6.73 | %
Decrease in fair value due to 10% adverse change | $ | 1,015 |  |  | $ | 1,006 |
Decrease in fair value due to 20% adverse change | $ | 1,986 |  |  | $ | 1,970 |
Discount rate (weighted-average annual rate) |  | 11.18 | % |  |  | 11.20 | %
Decrease in fair value due to 10% adverse change | $ | 1,794 |  |  | $ | 1,772 |
Decrease in fair value due to 20% adverse change | $ | 3,450 |  |  | $ | 3,409 |

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- Definition Tabular disclosure of all information related to the key inputs and assumptions used in measuring the fair value of assets obtained or liabilities incurred, as the result of a sale of financial assets, relating to the transferor's continuing involvement, if any, at the time of securitization, asset-backed financing arrangement, or similar transfer (including at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses, including expected static pool losses). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719 + Details
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- Definition Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719 + Details
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- Definition Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122625-111746 + Details
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