XML 59 R34.htm IDEA: XBRL DOCUMENT v3.10.0.1
Mortgage Loan Servicing and Loans Originated for Sale (Tables)
 12 Months Ended
Jun. 30, 2018
Transfers and Servicing [Abstract]  
Schedule of Mortgage Loans Serviced for Others
The following summarizes the unpaid principal balance of loans serviced for others by the Corporation at the dates indicated:
 
(In Thousands)
As of June 30,
2018
2017
2016
Loans serviced for Freddie Mac
$
19,244

$
13,907

$
6,819

Loans serviced for Fannie Mae
96,384

90,076

78,250

Loans serviced for FHLB – San Francisco
11,786

15,105

20,385

Loans serviced for other investors
995

216

15

Total loans serviced for others
$
128,409

$
119,304

$
105,469
Schedule of Mortgage Servicing Assets
The following table summarizes the Corporation’s MSA for years ended June 30, 2018 and 2017 :
 
Year Ended June 30,
(Dollars In Thousands)
2018
2017
 
 
 
MSA balance, beginning of fiscal year
$
897

$
795

Additions
237

269

Amortization
(136
)
(167
)
MSA balance, end of fiscal year, before allowance
998

897

Allowance
(82
)
(158
)
MSA balance, end of fiscal year
$
916

$
739

 
 
 
Fair value, beginning of fiscal year
$
811

$
627

Fair value, end of fiscal year
$
1,015

$
811

 
 
 
Allowance, beginning of fiscal year
$
158

$
168

Impairment recoveries
(76
)
(10
)
Allowance, end of fiscal year
$
82

$
158

 
 
 
Key Assumptions:
 
 
Weighted-average discount rate
9.11
%
9.11
%
Weighted-average prepayment speed
13.42
%
17.02
%
Schedule of Estimated Future Amortization of Mortgage Servicing Assets
The following table summarizes the estimated future amortization of MSA for the next five years and thereafter:
 
Amount
Year Ending June 30,
(In Thousands)
 
 
2019
$
212

2020
180

2021
146

2022
118

2023
95

Thereafter
247

Total estimated amortization expense
$
998
Schedule of Mortgage Servicing Assets, Hypothetical Effect on Fair Value
The following table represents the hypothetical effect on the fair value of the Corporation’s MSA using an unfavorable shock analysis of certain key valuation assumptions as of June 30, 2018 and 2017 .  This analysis is presented for hypothetical purposes only.  As the amounts indicate, changes in fair value based on changes in assumptions generally cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear.
 
Year Ended June 30,
(Dollars In Thousands)
2018
2017
MSA net carrying value
$
916

$
739

 
 
 
CPR assumption (weighted-average)
13.42
%
17.02
%
Impact on fair value with 10% adverse change in prepayment speed
$
(31
)
$
(28
)
Impact on fair value with 20% adverse change in prepayment speed
$
(61
)
$
(55
)
 
 
 
Discount rate assumption (weighted-average)
9.11
%
9.11
%
Impact on fair value with 10% adverse change in discount rate
$
(45
)
$
(33
)
Impact on fair value with 20% adverse change in discount rate
$
(88
)
$
(64
)
Schedule of Mortgage Servicing Assets Sold
Loans sold consisted of the following for the years indicated:
 
(In Thousands)
Year Ended June 30,
2018
2017
2016
Loans sold:
 
 
 
Servicing – released
$
1,174,618

$
1,935,349

$
1,948,423

Servicing – retained
27,566

38,250

45,798

Total loans sold
$
1,202,184

$
1,973,599

$
1,994,221
Schedule of Mortgage Servicing Assets Held For Sale
Loans held for sale, at fair value, at June 30, 2018 and 2017 consisted of the following:
 
(In Thousands)
June 30,
2018
2017
Fixed rate
$
94,730

$
115,703

Adjustable rate
1,568

845

Total loans held for sale, at fair value
$
96,298

$
116,548