XML 50 R38.htm IDEA: XBRL DOCUMENT v3.22.2.2
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables)
9 Months Ended
Sep. 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
Nine-Month Period Ended
September 30,
September 30,
(In thousands)
2022
2021
2022
2021
Balance at beginning of period
$
30,277
$
32,335
$
30,986
$
33,071
Capitalization of servicing assets
679
1,146
2,637
4,046
Amortization
(1,247)
(1,817)
(3,850)
(5,374)
Temporary impairment
 
recoveries, net
1
12
65
49
Other
(1)
(20)
9
(148)
(107)
Balance at end of period
$
29,690
$
31,685
$
29,690
$
31,685
(1)
 
Mainly 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
Nine-Month Period Ended
September 30,
September 30,
2022
2021
2022
2021
(In thousands)
Balance at beginning of period
$
14
$
165
$
78
$
202
Recoveries
(1)
(12)
(65)
(49)
Balance at end of period
$
13
$
153
$
13
$
153
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,
2022
2021
2022
2021
(In thousands)
Servicing fees
$
2,758
$
3,213
$
8,398
$
9,146
Late charges and prepayment penalties
201
87
614
543
Adjustment for loans repurchased
(20)
(32)
(148)
(148)
Servicing income, gross
2,939
3,268
8,864
9,541
Amortization and impairment of servicing assets
(1,246)
(1,764)
(3,785)
(5,284)
Servicing income, net
$
1,693
$
1,504
$
5,079
$
4,257
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
Nine-Month Period Ended September 30, 2022:
Constant prepayment rate:
 
 
Government-guaranteed mortgage loans
6.6
%
18.3
%
4.8
%
 
Conventional conforming mortgage loans
6.6
%
18.4
%
3.4
%
 
Conventional non-conforming mortgage loans
6.0
%
21.9
%
3.8
%
Discount rate:
 
Government-guaranteed mortgage loans
11.8
%
12.0
%
11.5
%
 
Conventional conforming mortgage loans
9.8
%
10.0
%
9.5
%
 
Conventional non-conforming mortgage loans
12.4
%
14.5
%
11.5
%
Nine-Month Period Ended September 30, 2021:
Constant prepayment rate:
 
 
Government-guaranteed mortgage loans
6.1
%
17.4
%
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 September
 
30, 2022 and
December 31, 2021 were as follows:
September 30,
December 31,
(Dollars in thousands)
2022
2021
Carrying amount of servicing assets
$
29,690
$
30,986
Fair value
$
44,621
$
42,132
Weighted-average
 
expected life (in years)
7.86
7.96
Constant prepayment rate (weighted-average annual
 
rate)
6.45
%
6.55
%
 
Decrease in fair value due to 10% adverse change
$
1,048
$
1,027
 
Decrease in fair value due to 20% adverse change
$
2,052
$
2,011
Discount rate (weighted-average annual rate)
10.68
%
11.17
%
 
Decrease in fair value due to 10% adverse change
$
1,923
$
1,852
 
Decrease in fair value due to 20% adverse change
$
3,700
$
3,561