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FAIR VALUE MEASUREMENT - (Tables) | 9 Months Ended
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Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Fair Value Measurement Methodologies | The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company's assets and liabilities valued at fair value on a recurring basis.
Asset/Liability class |  | Valuation methodology, inputs and assumptions |  | Classification
Investment securities |  |  |  |
Investment securities AFS |  | Observable market prices of identical or similar securities are used where available. |  | Level 2 recurring fair value measurement.
|  | If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments |  | Level 3 recurring fair value measurement.
LHFS |  |  |  |
Single family loans, excluding loans transferred from held for investment |  | Fair value is based on observable market data, including: • Quoted market prices, where available • Dealer quotes for similar loans • Forward sale commitments |  | Level 2 recurring fair value measurement.
|  | When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs: • Benchmark yield curve • Estimated discount spread to the benchmark yield curve • Expected prepayment speeds |  | Estimated fair value classified as Level 3.
Mortgage servicing rights |  |  |  |
Single family MSRs |  | For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 6, Mortgage Banking Operations. |  | Level 3 recurring fair value measurement.
Derivatives |  |  |  |
Eurodollar futures |  | Fair value is based on closing exchange prices. |  | Level 1 recurring fair value measurement.
Interest rate swaps Interest rate swaptions Forward sale commitments |  | Fair value is based on quoted prices for identical or similar instruments, when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs including: • Forward interest rates • Interest rate volatilities |  | Level 2 recurring fair value measurement.
Interest rate lock commitments |  | The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor |  | Level 3 recurring fair value measurement.
Schedule of Fair Value Hierarchy Measurement | The following tables presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis:
| At September 30, 2021
(in thousands) | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |
Investment securities AFS |  |  |  |  |  |  |
Mortgage backed securities: |  |  |  |  |  |  |
Residential | $ | 33,467 |  |  | $ | — |  |  | $ | 31,030 |  |  | $ | 2,437 |
Commercial | 42,050 |  |  | — |  |  | 42,050 |  |  | — |
Collateralized mortgage obligations: |  |  |  |  |  |  |
Residential | 184,360 |  |  | — |  |  | 184,360 |  |  | — |
Commercial | 141,324 |  |  | — |  |  | 141,324 |  |  | — |
Municipal bonds | 534,401 |  |  | — |  |  | 534,401 |  |  | — |
Corporate debt securities | 19,849 |  |  | — |  |  | 19,772 |  |  | 77 |
U.S. Treasury securities | 23,392 |  |  | — |  |  | 23,392 |  |  | — |
Single family LHFS | 135,942 |  |  | — |  |  | 135,942 |  |  | — |
Single family LHFI | 4,507 |  |  | — |  |  | — |  |  | 4,507 |
Single family mortgage servicing rights | 61,206 |  |  | — |  |  | — |  |  | 61,206 |
Derivatives |  |  |  |  |  |  |
Forward sale commitments | 1,419 |  |  | — |  |  | 1,419 |  |  | — |
Interest rate lock commitments | 4,612 |  |  | — |  |  | — |  |  | 4,612 |
Interest rate swaps | 8,772 |  |  | — |  |  | 8,772 |  |  | — |
Total assets | $ | 1,195,301 |  |  | $ | — |  |  | $ | 1,122,462 |  |  | $ | 72,839 |
Liabilities: |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |
Eurodollar futures | $ | 9 |  |  | $ | 9 |  |  | $ | — |  |  | $ | — |
Forward sale commitments | 1,017 |  |  | — |  |  | 1,017 |  |  | — |
Interest rate lock commitments | 3 |  |  | — |  |  | — |  |  | 3 |
Interest rate swaps | 10,521 |  |  | — |  |  | 10,521 |  |  |
Total liabilities | $ | 11,550 |  |  | $ | 9 |  |  | $ | 11,538 |  |  | $ | 3 |
| At December 31, 2020
(in thousands) | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |
Investment securities AFS |  |  |  |  |  |  |
Mortgage backed securities: |  |  |  |  |  |  |
Residential | $ | 51,046 |  |  | $ | — |  |  | $ | 48,417 |  |  | $ | 2,629 |
Commercial | 45,184 |  |  | — |  |  | 45,184 |  |  | — |
Collateralized mortgage obligations: |  |  |  |  |  |  |
Residential | 234,909 |  |  | — |  |  | 234,909 |  |  | — |
Commercial | 159,183 |  |  | — |  |  | 159,183 |  |  | — |
Municipal bonds | 564,703 |  |  | — |  |  | 564,703 |  |  | — |
Corporate debt securities | 15,222 |  |  | — |  |  | 15,141 |  |  | 81 |
Agency debentures | 1,846 |  |  | — |  |  | 1,846 |  |  | — |
Single family LHFS | 194,643 |  |  | — |  |  | 194,643 |  |  | — |
Single family LHFI | 7,108 |  |  | — |  |  | — |  |  | 7,108 |
Single family mortgage servicing rights | 49,966 |  |  | — |  |  | — |  |  | 49,966 |
Derivatives |  |  |  |  |  |  |
Forward sale commitments | 1,035 |  |  | — |  |  | 1,035 |  |  | — |
Interest rate lock commitments | 17,395 |  |  | — |  |  | — |  |  | 17,395 |
Interest rate swaps | 17,459 |  |  | — |  |  | 17,459 |  |  | — |
Total assets | $ | 1,359,699 |  |  | $ | — |  |  | $ | 1,282,520 |  |  | $ | 77,179 |
Liabilities: |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |
Eurodollar futures | $ | 4 |  |  | $ | 4 |  |  | $ | — |  |  | $ | — |
Forward sale commitments | 3,714 |  |  | — |  |  | 3,714 |  |  | — |
Interest rate lock commitments | 3 |  |  | — |  |  | — |  |  | 3 |
Interest rate swaps | 20,511 |  |  | — |  |  | 20,511 |  |  | — |
Total liabilities | $ | 24,232 |  |  | $ | 4 |  |  | $ | 24,225 |  |  | $ | 3 |
Schedule of Inputs Used to Measure Fair Value | The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets:
(dollars in thousands) | Fair Value |  | Valuation Technique |  | Significant Unobservable Input |  | Low |  | High |  | Weighted Average
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |
Investment securities AFS | $ | 2,514 |  |  | Income approach |  | Implied spread to benchmark interest rate curve |  | 2.00% |  | 2.00% |  | 2.00%
Single family LHFI | 4,507 |  |  | Income approach |  | Implied spread to benchmark interest rate curve |  | 3.14% |  | 8.59% |  | 4.73%
Interest rate lock commitments, net | 4,609 |  |  | Income approach |  | Fall-out factor |  | 0.87% |  | 24.05% |  | 12.18%
|  |  |  |  | Value of servicing |  | 0.39% |  | 1.52% |  | 1.19%
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Investment securities AFS | $ | 2,710 |  |  | Income approach |  | Implied spread to benchmark interest rate curve |  | 2.00% |  | 2.00% |  | 2.00%
Single family LHFI | 7,108 |  |  | Income approach |  | Implied spread to benchmark interest rate curve |  | 3.96% |  | 10.64% |  | 6.23%
Interest rate lock commitments, net | 17,392 |  |  | Income approach |  | Fall-out factor |  | 1.97% |  | 38.38% |  | 15.53%
|  |  |  |  | Value of servicing |  | 0.41% |  | 1.44% |  | 0.97%
Schedule of Fair Value Changes and Activity for Level 3 | The following table presents fair value changes and activity for certain Level 3 assets for the periods indicated:
(in thousands) |  | Beginning balance |  | Additions |  | Transfers |  | Payoffs/Sales |  | Change in mark to market (1) |  | Ending balance
Quarter Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |
Investment securities AFS |  | $ | 2,550 |  |  | $ | — |  |  | $ | — |  |  | $ | (48) |  |  | $ | 12 |  |  | $ | 2,514 |
Single family LHFI |  | 5,207 |  |  | 284 |  |  | — |  |  | (1,088) |  |  | 104 |  |  | 4,507 |
Quarter Ended September 30, 2020 |  |  |  |  |  |  |  |  |  |
Investment securities AFS |  | $ | 2,861 |  |  | $ | — |  |  | $ | — |  |  | $ | (48) |  |  | $ | (16) |  |  | $ | 2,797 |
Single family LHFI |  | 5,847 |  |  | 2,169 |  |  | — |  |  | (352) |  |  | (26) |  |  | 7,638 |
Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |
Investment securities AFS |  | $ | 2,710 |  |  | $ | — |  |  | $ | — |  |  | $ | (144) |  |  | $ | (52) |  |  | $ | 2,514 |
Single family LHFI |  | 7,108 |  |  | 1,429 |  |  | — |  |  | (4,279) |  |  | 249 |  |  | 4,507 |
Nine Months Ended September 30, 2020 |  |  |  |  |  |  |  |  |  |
Investment securities AFS |  | $ | 1,952 |  |  | $ | 985 |  |  | $ | — |  |  | $ | (387) |  |  | $ | 247 |  |  | $ | 2,797 |
Single family LHFI |  | 3,468 |  |  | 5,515 |  |  | — |  |  | (1,135) |  |  | (210) |  |  | 7,638 |
(1) Changes in fair value for single LHFI are recorded in other noninterest income on the consolidated income statement. The following table presents fair value changes and activity for Level 3 interest rate lock and purchase loan commitments for the periods indicated:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2021 |  | 2020 |  | 2021 |  | 2020
Beginning balance, net | $ | 5,893 |  |  | $ | 17,967 |  |  | $ | 17,392 |  |  | $ | 2,223 |
Total realized/unrealized gains (losses) | 5,299 |  |  | 18,285 |  |  | 9,112 |  |  | 46,313 |
Settlements | (6,583) |  |  | (15,292) |  |  | (21,895) |  |  | (27,576) |
Ending balance, net | $ | 4,609 |  |  | $ | 20,960 |  |  | $ | 4,609 |  |  | $ | 20,960 |
Schedule of Assets that had Changes in their Recorded Fair Value | The following table present assets classified as Level 3 assets that had changes in their recorded fair value for the periods indicated and what we still held at the end of the respective reporting period:
(in thousands) | Fair Value |  | Level 1 |  | Level 2 |  | Level 3 |  | Total Gains (Losses)
At or for the Quarter Ended September 30, 2021 |  |  |  |  |  |  |  |  |
LHFI (1) | $ | 1,121 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,121 |  |  | $ | (8) |
At or for the Quarter Ended September 30, 2020 |  |  |  |  |  |  |  |  |
LHFI (1) | $ | 3,302 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,302 |  |  | $ | (2,054) |
At or for the Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |
LHFI (1) | $ | 1,121 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,121 |  |  | $ | (70) |
At or for the Nine Months Ended September 30, 2020 |  |  |  |  |  |  |  |  |
LHFI (1) | $ | 3,302 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,302 |  |  | $ | (2,184) |
(1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral.
Schedule of the Fair Value Hierarchy | The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company's financial instruments other than assets and liabilities measured at fair value on a recurring basis:
| At September 30, 2021
(in thousands) | Carrying Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 218,662 |  |  | $ | 218,662 |  |  | $ | 218,662 |  |  | $ | — |  |  | $ | — |
Investment securities HTM | 4,195 |  |  | 4,349 |  |  | — |  |  | 4,349 |  |  | — |
LHFI | 5,295,234 |  |  | 5,337,837 |  |  | — |  |  | — |  |  | 5,337,837 |
LHFS – multifamily and other | 259,170 |  |  | 267,688 |  |  | — |  |  | 267,688 |  |  | — |
Mortgage servicing rights – multifamily | 39,625 |  |  | 43,166 |  |  | — |  |  | — |  |  | 43,166 |
Federal Home Loan Bank stock | 8,723 |  |  | 8,723 |  |  | — |  |  | 8,723 |  |  | — |
Other assets - GNMA EBO loans | 31,553 |  |  | 31,553 |  |  | — |  |  | — |  |  | 31,553 |
Liabilities: |  |  |  |  |  |  |  |  |
Certificates of deposit | $ | 995,475 |  |  | $ | 996,743 |  |  | $ | — |  |  | $ | 996,743 |  |  | $ | — |
Long-term debt | 125,979 |  |  | 117,577 |  |  | — |  |  | 117,577 |  |  | — |
| At December 31, 2020
(in thousands) | Carrying Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 58,049 |  |  | $ | 58,049 |  |  | $ | 58,049 |  |  | $ | — |  |  | $ | — |
Investment securities HTM | 4,271 |  |  | 4,507 |  |  | — |  |  | 4,507 |  |  | — |
LHFI | 5,172,778 |  |  | 5,327,711 |  |  | — |  |  | — |  |  | 5,327,711 |
LHFS – multifamily and other | 167,289 |  |  | 167,289 |  |  | — |  |  | 167,289 |  |  | — |
Mortgage servicing rights – multifamily | 35,774 |  |  | 38,423 |  |  | — |  |  | — |  |  | 38,423 |
Federal Home Loan Bank stock | 20,319 |  |  | 20,319 |  |  | — |  |  | 20,319 |  |  | — |
Other assets-GNMA EBO loans | 101,750 |  |  | 101,750 |  |  | — |  |  | — |  |  | 101,750 |
Liabilities: |  |  |  |  |  |  |  |  |
Certificates of deposit | $ | 1,139,807 |  |  | $ | 1,143,747 |  |  | $ | — |  |  | $ | 1,143,747 |  |  | $ | — |
Borrowings | 322,800 |  |  | 322,876 |  |  | — |  |  | 322,876 |  |  | — |
Long-term debt | 125,838 |  |  | 116,893 |  |  | — |  |  | 116,893 |  |  | — |

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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