XML 39 R27.htm IDEA: XBRL DOCUMENT v3.23.1

FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2023

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

Trading securities

Fair Value is based on quoted prices in an active market.

Level 1 recurring fair value measurement.

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

Futures and Options

Fair value is based on closing exchange prices.

Level 1 recurring fair value measurement.

Forward sale commitments Interest rate swaps

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.

IRLC

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 March 31, 2023
(in thousands)			Fair Value						Level 1						Level 2						Level 3
Assets:
Trading securities - U.S. Treasury securities			$	62,044					$	62,044					$	—					$	—
Investment securities AFS
Mortgage backed securities:
Residential			200,658						—						198,694						1,964
Commercial			54,230						—						54,230						—
Collateralized mortgage obligations:
Residential			553,234						—						553,234						—
Commercial			70,777						—						70,777						—
Municipal bonds			413,658						—						413,658						—
Corporate debt securities			41,302						—						41,236						66
U.S. Treasury securities			20,319						—						20,319						—
Agency debentures			58,359						—						58,359						—
Single family LHFS			22,690						—						22,690						—
Single family LHFI			5,231						—						—						5,231
Single family mortgage servicing rights			75,701						—						—						75,701
Derivatives
Futures			34						34						—						—
Forward sale commitments			229						—						229						—
Options			503						503						—						—
Interest rate lock commitments			398						—						—						398
Interest rate swaps			10,704						—						10,704						—
Total assets			$	1,590,071					$	62,581					$	1,444,130					$	83,360
Liabilities:
Derivatives
Forward sale commitments			$	326					$	—					$	326					$	—
Interest rate lock commitments			36						—						—						36
Interest rate swaps			10,705						—						10,705						—
Total liabilities			$	11,067					$	—					$	11,031					$	36

			At December 31, 2022
(in thousands)			Fair Value						Level 1						Level 2						Level 3
Assets:
Trading securities - U.S. Treasury securities			$	18,997					$	18,997					$	—					$	—
Investment securities AFS
Mortgage backed securities:
Residential			197,262						—						195,321						1,941
Commercial			56,049						—						56,049						—
Collateralized mortgage obligations:
Residential			553,039						—						553,039						—
Commercial			70,519						—						70,519						—
Municipal bonds			411,548						—						411,548						—
Corporate debt securities			42,945						—						42,877						68
U.S. Treasury securities			19,934						—						19,934						—
Agency debentures			27,478						—						27,478						—
Single family LHFS			14,075						—						14,075						—
Single family LHFI			5,868						—						—						5,868
Single family mortgage servicing rights			76,617						—						—						76,617
Derivatives
Futures			18						18						—						—
Options			218						218						—
Forward sale commitments			293						—						293						—
Interest rate lock commitments			141						—						—						141
Interest rate swaps			13,093						—						13,093						—
Total assets			$	1,508,094					$	19,233					$	1,404,226					$	84,635
Liabilities:
Derivatives
Forward sale commitments			$	151					$	—					$	151					$	—
Interest rate lock commitments			36						—						—						36
Interest rate swaps			13,093						—						13,093						—
Total liabilities			$	13,280					$	—					$	13,244					$	36

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
March 31, 2023
Investment securities AFS			$	2,030					Income approach						Implied spread to benchmark interest rate curve						2.00%						2.00%						2.00%
Single family LHFI			5,231						Income approach						Implied spread to benchmark interest rate curve						3.18%						5.44%						4.02%
Interest rate lock commitments, net			362						Income approach						Fall-out factor						0.07%						22.60%						9.07%
															Value of servicing						0.59%						1.19%						0.88%
December 31, 2022
Investment securities AFS			$	2,009					Income approach						Implied spread to benchmark interest rate curve						2.00%						2.00%						2.00%
Single family LHFI			5,868						Income approach						Implied spread to benchmark interest rate curve						2.87%						5.15%						4.14%
Interest rate lock commitments, net			105						Income approach						Fall-out factor						0.10%						17.50%						6.43%
															Value of servicing						0.54%						1.11%						0.95%

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 March 31, 2023
Investment securities AFS						$	2,009					$	—					$	—					$	(48)					$	69					$	2,030
Single family LHFI						5,868						—						—						(682)						45						5,231
Quarter Ended March 31, 2022
Investment securities AFS						$	2,482					$	—					$	—					$	(48)					$	(127)					$	2,307
Single family LHFI						7,287						—						—						—						(306)						6,981

(1) Changes in fair value for single LHFI are recorded in other noninterest income on the consolidated income statements.

The following table presents fair value changes and activity for Level 3 interest rate lock commitments:

			Quarter Ended March 31,
(in thousands)			2023						2022
Beginning balance, net			$	105					$	2,484
Total realized/unrealized gains (losses)			919						(2,177)
Settlements			(662)						(229)
Ending balance, net			$	362					$	78

Schedule of Assets that had Changes in their Recorded Fair Value

The following table presents assets classified as Level 3 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																								Total Gains (Losses)
At or for the Quarter Ended March 31, 2023
LHFI (1)			$	3,793																							$	(159)
At or for the Quarter Ended March 31, 2022
LHFI (1)			$	904																							$	10

(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 March 31, 2023
(in thousands)			Carrying Value						Fair Value						Level 1						Level 2						Level 3
Assets:
Cash and cash equivalents			$	377,031					$	377,031					$	377,031					$	—					$	—
Investment securities HTM			2,423						2,387						—						2,387						—
LHFI			7,439,651						7,150,665						—						—						7,150,665
LHFS – multifamily and other			1,563						1,563						—						1,563						—
Mortgage servicing rights – multifamily and SBA			33,839						38,629						—						—						38,629
Federal Home Loan Bank stock			73,191						73,191						—						73,191						—
Other assets - GNMA EBO loans			5,682						5,682						—						—						5,682
Liabilities:
Certificates of deposit			$	2,660,243					$	2,634,872					$	—					$	2,634,872					$	—
Borrowings			1,878,000						1,881,721												1,881,721
Long-term debt			224,492						200,770						—						200,770						—

			At December 31, 2022
(in thousands)			Carrying Value						Fair Value						Level 1						Level 2						Level 3
Assets:
Cash and cash equivalents			$	72,828					$	72,828					$	72,828					$	—					$	—
Investment securities HTM			2,441						2,385						—						2,385						—
LHFI			7,378,952						6,988,363						—						—						6,988,363
LHFS – multifamily and other			3,252						3,291						—						3,291						—
Mortgage servicing rights – multifamily and SBA			35,256						39,792						—						—						39,792
Federal Home Loan Bank stock			49,305						49,305						—						49,305						—
Other assets-GNMA EBO loans			6,918						6,918						—						—						6,918
Liabilities:
Certificates of deposit			$	2,943,331					$	2,910,301					$	—					$	2,910,301					$	—
Borrowings			1,016,000						1,014,973						—						1,014,973						—
Long-term debt			224,404						202,338						—						202,338						—

Loans Held For Sale Accounted for Under the Fair Value Option

The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option:

			At March 31, 2023																		At December 31, 2022
(in thousands)			Fair Value						Aggregate Unpaid Principal Balance						Fair Value Less Aggregated Unpaid Principal Balance						Fair Value						Aggregate Unpaid Principal Balance						Fair Value Less Aggregated Unpaid Principal Balance
Single family LHFS			$	22,690					$	22,243					$	447					$	14,075					$	13,914					$	161

X

- Definition

Fair value measurement methodologies.

+ References

No definition available.

+ Details

Name:	hmst_FairValueMeasurementMethodologiesTableTextBlock
Namespace Prefix:	hmst_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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 https://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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of information about asset and liability measured at fair value under fair value option.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14210-108612

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 32
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14217-108612

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

+ Details

Name:	us-gaap_FairValueOptionQuantitativeDisclosuresTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

+ Details

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration