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FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended
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Dec. 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 9, 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 December 31, 2023
(in thousands) | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |
Trading securities - U.S. Treasury securities | $ | 24,698 |  |  | $ | 24,698 |  |  | $ | — |  |  | $ | — |
Investment securities AFS |  |  |  |  |  |  |
Mortgage backed securities: |  |  |  |  |  |  |
Residential | 183,798 |  |  | — |  |  | 181,938 |  |  | 1,860 |
Commercial | 47,756 |  |  | — |  |  | 47,756 |  |  | — |
Collateralized mortgage obligations: |  |  |  |  |  |  |
Residential | 439,738 |  |  | — |  |  | 439,738 |  |  | — |
Commercial | 57,397 |  |  | — |  |  | 57,397 |  |  | — |
Municipal bonds | 404,874 |  |  | — |  |  | 404,874 |  |  | — |
Corporate debt securities | 38,547 |  |  | — |  |  | 38,547 |  |  | — |
U.S. Treasury securities | 20,184 |  |  | — |  |  | 20,184 |  |  | — |
Agency debentures | 58,905 |  |  | — |  |  | 58,905 |  |  | — |
Single family LHFS | 12,849 |  |  | — |  |  | 12,849 |  |  | — |
Single family LHFI | 1,280 |  |  | — |  |  | — |  |  | 1,280 |
Single family mortgage servicing rights | 74,249 |  |  | — |  |  | — |  |  | 74,249 |
Derivatives |  |  |  |  |  |  |
Forward sale commitments | 151 |  |  | — |  |  | 151 |  |  | — |
Options | 132 |  |  | 132 |  |  | — |  |  |
Interest rate lock commitments | 411 |  |  | — |  |  | — |  |  | 411 |
Interest rate swaps | 10,489 |  |  | — |  |  | 10,489 |  |  | — |
Total assets | $ | 1,375,458 |  |  | $ | 24,830 |  |  | $ | 1,272,828 |  |  | $ | 77,800 |
Liabilities: |  |  |  |  |  |  |
Derivatives |  |  |  |  |  |  |
Futures | $ | 3 |  |  | $ | 3 |  |  | $ | — |  |  | $ | — |
Forward sale commitments | 288 |  |  | — |  |  | 288 |  |  | — |
Interest rate swaps | 10,492 |  |  | — |  |  | 10,492 |  |  | — |
Total liabilities | $ | 10,783 |  |  | $ | 3 |  |  | $ | 10,780 |  |  | $ | — |
| 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: |  |  |  |  |  |  |
Derivative |  |  |  |  |  |  |
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 |
Fair value measurements recurring and nonrecurring valuation techniques | 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
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Investment securities AFS | $ | 1,860 |  |  | Income approach |  | Implied spread to benchmark interest rate curve |  | 2.25% |  | 2.25% |  | 2.25%
Single family LHFI | 1,280 |  |  | Income approach |  | Implied spread to benchmark interest rate curve |  | 3.30% |  | 5.04% |  | 3.94%
Interest rate lock commitments, net | 411 |  |  | Income approach |  | Fall-out factor |  | 0.81% |  | 41.64% |  | 10.54%
|  |  |  |  | Value of servicing |  | 0.32% |  | 0.80% |  | 0.57%
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:
(in thousands) |  | Beginning balance |  | Additions |  | Transfers |  | Payoffs/Sales |  | Change in mark to market (1) |  | Ending balance
Year Ended December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Investment securities AFS |  | $ | 2,009 |  |  | $ | — |  |  | $ | — |  |  | $ | (192) |  |  | $ | 43 |  |  | $ | 1,860 |
Single family LHFI |  | 5,868 |  |  | — |  |  | — |  |  | (4,607) |  |  | 19 |  |  | 1,280 |
Year Ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Investment securities AFS |  | $ | 2,482 |  |  | $ | — |  |  | $ | — |  |  | $ | (193) |  |  | $ | (280) |  |  | $ | 2,009 |
Single family LHFI |  | 7,287 |  |  | — |  |  | — |  |  | — |  |  | (1,419) |  |  | 5,868 |
(1) Changes in fair value for singe family 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:
| Years Ended December 31,
(in thousands) | 2023 |  | 2022
Beginning balance, net | $ | 105 |  |  | $ | 2,484 |
Total realized/unrealized gains | 2,334 |  |  | 68 |
Settlements | (2,028) |  |  | (2,447) |
Ending balance, net | $ | 411 |  |  | $ | 105 |
Fair value measurements on nonrecurring basis | The following tables presents assets classified as Level 3 assets that had changes in their recorded fair value during 2023 and 2022 and what we still held at the end of the respective reporting period:
(in thousands) | Fair Value |  | Total Gains (Losses)
As of or for the year ended December 31, 2023 |  |  |
LHFI (1) | $ | 4,349 |  |  | $ | (1,410) |
As of or for the year ended December 31, 2022 |  |  |
LHFI (1) | $ | 3,186 |  |  | $ | (385) |
(1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral.
Fair value, by balance sheet grouping | 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 December 31, 2023
(in thousands) | Carrying Value |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 215,664 |  |  | $ | 215,664 |  |  | $ | 215,664 |  |  | $ | — |  |  | $ | — |
Investment securities HTM | 2,371 |  |  | 2,331 |  |  | — |  |  | 2,331 |  |  | — |
LHFI | 7,381,124 |  |  | 7,002,028 |  |  | — |  |  | — |  |  | 7,002,028 |
LHFS – multifamily and other | 6,788 |  |  | 6,871 |  |  | — |  |  | 6,871 |  |  | — |
Mortgage servicing rights – multifamily and SBA | 29,987 |  |  | 35,292 |  |  | — |  |  | — |  |  | 35,292 |
Federal Home Loan Bank stock | 55,293 |  |  | 55,293 |  |  | — |  |  | 55,293 |  |  | — |
Other assets - GNMA EBO loans | 5,617 |  |  | 5,617 |  |  | — |  |  | — |  |  | 5,617 |
Liabilities: |  |  |  |  |  |  |  |  |
Certificates of deposit | $ | 3,227,954 |  |  | $ | 3,216,665 |  |  | $ | — |  |  | $ | 3,216,665 |  |  | $ | — |
Borrowings | 1,745,000 |  |  | 1,750,023 |  |  | — |  |  | 1,750,023 |  |  | — |
Long-term debt | 224,766 |  |  | 132,996 |  |  | — |  |  | 132,996 |  |  | — |
| 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 |  |  | — |
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 December 31, 2023 |  | At December 31, 2022
(in thousands) | Fair Value |  | Aggregate Unpaid Principal Balance |  | Fair Value Less Aggregate Unpaid Principal Balance |  | Fair Value |  | Aggregate Unpaid Principal Balance |  | Fair Value Less Aggregate Unpaid Principal Balance
Single family LHFS | $ | 12,849 |  |  | $ | 12,583 |  |  | $ | 266 |  |  | $ | 14,075 |  |  | $ | 13,914 |  |  | $ | 161 |

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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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + 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 -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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