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MORTGAGE BANKING OPERATIONS (Tables)
 6 Months Ended
Jun. 30, 2025
Mortgage Banking [Abstract]  
Mortgage Loans on Real Estate, by Loan
LHFS consisted of the following:
 
(in thousands)At June 30, 2025At December 31, 2024
Single family$29,999 $20,312 
CRE, multifamily and SBA18,784 — 
Total$48,783 $20,312 

Loans sold consisted of the following for the periods indicated: 
Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Single family$105,197 $98,081 $187,594 $168,460 
CRE, multifamily and SBA12,894 13,539 67,089 21,735 
Total$118,091 $111,620 $254,683 $190,195 
Net Gain on Loan Origination and Sale Activity
Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: 
 Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Single family$3,182 $2,718 $5,465 $4,704 
CRE, multifamily and SBA53 318 986 638 
Total$3,235 $3,036 $6,451 $5,342 
Company's Portfolio of Loans Serviced for Others
The Company's portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. The unpaid principal balance of loans serviced for others is as follows:

(in thousands)At June 30, 2025At December 31, 2024
Single family $5,107,214 $5,179,373 
CRE, multifamily and SBA 1,912,416 1,918,172 
Total$7,019,630 $7,097,545 
Mortgage Repurchase Losses
The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses:

 Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Balance, beginning of period$999 $1,317 $1,032 $1,481 
Additions, net of adjustments (1)
(223)(20)(326)(148)
Realized (losses) recoveries, net (2)
(28)(95)42 (131)
Balance, end of period$748 $1,202 $748 $1,202 
(1) Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans.
(2) Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related expenses.
Revenue from Mortgage Servicing, Including the Effects of Derivative Risk Management Instruments
Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:
 Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Servicing income, net:
Servicing fees and other$6,348 $6,562 $12,855 $12,916 
Amortization of single family MSRs (1)
(1,598)(1,713)(3,180)(3,141)
Amortization of multifamily and SBA MSRs(1,455)(1,459)(2,809)(2,861)
Total
3,295 3,390 6,866 6,914 
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)
4,373 529 4,644 1,147 
Net gain (loss) from economic hedging (3)
(118)(509)898 (1,619)
Total
4,255 20 5,542 (472)
               Loan servicing income $7,550 $3,410 $12,408 $6,442 
(1) Represents changes due to collection/realization of expected cash flows and curtailments.
(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.
(3)    The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.5 million and $0.3 million for quarters ended June 30, 2025 and 2024, respectively, and $0.9 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively.
Changes in Single Family MSRs Measured at Fair Value The changes in single family MSRs measured at fair value are as follows:
Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Beginning balance$72,285 $74,056 $72,901 $74,249 
Additions and amortization:
Originations
931 853 1,626 1,470 
Amortization (1)
(1,598)(1,713)(3,180)(3,141)
Net additions and amortization
(667)(860)(1,554)(1,671)
Changes in fair value assumptions (2)
4,373 529 4,644 1,147 
Ending balance$75,991 $73,725 $75,991 $73,725 
(1) Represents changes due to collection/realization of expected cash flows and curtailments.
(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.
Key Economic Assumptions Used in Measuring Initial FV of Capitalized Single Family MSRs
Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows: 

Quarter Ended June 30,Six Months Ended June 30,
(rates per annum) (1)
2025202420252024
Constant prepayment rate ("CPR") (2)
19.24 %17.46 %18.67 %18.28 %
Discount rate 11.28 %10.45 %10.77 %10.33 %
(1) Based on a weighted average.
(2) Represents an expected lifetime average CPR used in the model.
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets
For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:
At June 30, 2025At December 31, 2024
Range of Inputs
Average (1)
Range of Inputs
Average (1)
CPRs (2)
5.05% - 12.13%
6.82 %
6.00% - 13.50%
6.60 %
Discount Rates
8.69% - 15.85%
9.13 %
10.00% - 17.00%
11.00 %
(1) Weighted averages of all the inputs within the range.
(2) Represents the expected lifetime average CPR used in the model.

To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below:

(dollars in thousands)At June 30, 2025
Fair value of single family MSR$75,991 
Expected weighted-average life (in years)8.24
CPR
Impact on fair value of 25 basis points adverse change in interest rates$(1,005)
Impact on fair value of 50 basis points adverse change in interest rates$(2,092)
Discount rate
Impact on fair value of 100 basis points increase$(2,838)
Impact on fair value of 200 basis points increase$(5,642)
Changes in Multifamily MSRs Measured at the Lower of Amortized Cost or Fair Value
The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows: 

Quarter Ended June 30,Six Months Ended June 30,
(in thousands)2025202420252024
Beginning balance$25,674 $28,863 $26,565 $29,987 
Originations283 179 746 457 
Amortization(1,455)(1,459)(2,809)(2,861)
Ending balance$24,502 $27,583 $24,502 $27,583 

Key economic assumptions used in measuring the initial fair value of capitalized multifamily MSRs were as follows:
 
Quarter Ended June 30,Six Months Ended June 30,
(rates per annum) (1)
2025202420252024
Discount rate13.10 %13.00 %13.10 %13.00 %
(1)Based on a weighted average.
For multifamily MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below. Multifamily DUS loans typically contain yield maintenance features that significantly reduce loan prepayments, resulting in a CPR of zero for valuation purposes.

At June 30, 2025At December 31, 2024
Range of Inputs
Average (1)
Range of Inputs
Average (1)
Discount Rates
13.00% - 15.00%
13.10 %
13.00% - 15.00%
13.10 %
(1) Weighted averages of all the inputs within the range.