XML 39 R29.htm IDEA: XBRL DOCUMENT v3.24.1.u1

FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024
(in thousands)			Fair Value						Level 1						Level 2						Level 3
Assets:
Trading securities - U.S. Treasury securities			$	27,746					$	27,746					$	—					$	—
Investment securities AFS
Mortgage backed securities:
Residential			178,591						—						176,800						1,791
Commercial			47,470						—						47,470						—
Collateralized mortgage obligations:
Residential			371,660						—						371,660						—
Commercial			56,702						—						56,702						—
Municipal bonds			398,100						—						398,100						—
Corporate debt securities			35,152						—						35,152						—
U.S. Treasury securities			19,896						—						19,896						—
Agency debentures			53,437						—						53,437						—
Single family LHFS			19,023						—						19,023						—
Single family LHFI			1,285						—						—						1,285
Single family mortgage servicing rights			74,056						—						—						74,056
Derivatives
Forward sale commitments			196						—						196						—
Options			6						6						—						—
Interest rate lock commitments			385						—						—						385
Interest rate swaps			11,879						—						11,879						—
Total assets			$	1,295,584					$	27,752					$	1,190,315					$	77,517
Liabilities:
Derivatives
Forward sale commitments			$	234					$	—					$	234					$	—
Interest rate lock commitments			49						—						—						49
Interest rate swaps			11,880						—						11,880						—
Total liabilities			$	12,163					$	—					$	12,114					$	49

			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					$	—

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, 2024
Investment securities AFS			$	1,791					Income approach						Implied spread to benchmark interest rate curve						2.25%						2.25%						2.25%
Single family LHFI			1,285						Income approach						Implied spread to benchmark interest rate curve						3.97%						5.36%						4.44%
Interest rate lock commitments, net			336						Income approach						Fall-out factor						0.07%						30.20%						8.48%
															Value of servicing						0.15%						0.93%						0.62%
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%

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, 2024
Investment securities AFS						$	1,860					$	—					$	—					$	(50)					$	(19)					$	1,791
Single family LHFI						1,280						—						—						—						5						1,285
Quarter Ended March 31, 2023
Investment securities AFS						$	2,009					$	—					$	—					$	(48)					$	69					$	2,030
Single family LHFI						5,868						—						—						(682)						45						5,231

(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)			2024						2023
Beginning balance, net			$	411					$	105
Total realized/unrealized gains (losses)			417						919
Settlements			(492)						(662)
Ending balance, net			$	336					$	362

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, 2024
LHFI (1)			$	423																							$	(50)
At or for the Quarter Ended March 31, 2023
LHFI (1)			$	3,793																							$	(159)

(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, 2024
(in thousands)			Carrying Value						Fair Value						Level 1						Level 2						Level 3
Assets:
Cash and cash equivalents			$	320,327					$	320,327					$	320,327					$	—					$	—
Investment securities HTM			2,354						2,305						—						2,305						—
LHFI			7,403,767						6,970,457						—						—						6,970,457
LHFS – multifamily and other			2,079						2,079						—						2,079						—
Mortgage servicing rights – multifamily and SBA			28,863						34,303						—						—						34,303
Federal Home Loan Bank stock			73,722						73,722						—						73,722						—
Other assets - GNMA EBO loans			5,940						5,940						—						—						5,940
Liabilities:
Certificates of deposit			$	3,056,518					$	3,046,367					$	—					$	3,046,367					$	—
Borrowings			2,094,000						2,089,853												2,089,853
Long-term debt			224,857						175,314						—						175,314						—

			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						—

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, 2024																		At December 31, 2023
(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			$	19,023					$	18,706					$	317					$	12,849					$	12,583					$	266

X

- Definition

Fair value measurement methodologies.

+ References

No definition available.

+ Details

Name:	hmst_FairValueMeasurementMethodologiesTableTextBlock
Namespace Prefix:	hmst_
Data Type:	dtr-types1: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
-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

+ 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
-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

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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-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 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-3

+ 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
-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 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-11

+ 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://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-30

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-31

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-32

+ 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
-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

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