NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables)

12 Months Ended

Dec. 31, 2016

Changes in Servicing Assets [Table Text Block]

	The changes in servicing assets are shown below:
		Year Ended December 31,
		2016		2015		2014
	(In thousands)
	Balance at beginning of year	$	24,282	$	22,838	$	21,987
	Capitalization of servicing assets		5,260		4,919		4,321
	Amortization		(3,229)		(3,159)		(3,156)
	Adjustment to fair value		(325)		(228)		(228)
	Other (1)		256		(88)		(86)
	Balance at end of year	$	26,244	$	24,282	$	22,838
(1)	Amount represents the adjustment to fair value related to the repurchase of loans serviced for others.

Changes in Impairment Allowance [Table Text Block]

Changes in the impairment allowance were as follows:
	Year ended December 31,
	2016		2015		2014
(In thousands)
Balance at beginning of year	$	136	$	55	$	212
Temporary impairment charges		466		285		343
OTTI of servicing assets		-		(147)		(385)
Recoveries		(141)		(57)		(115)
Balance at end of year	$	461	$	136	$	55

Components of Net Servicing Income [Table Text Block]

The components of net servicing income are shown below:
	Year ended December 31,
	2016		2015		2014
(In thousands)
Servicing fees	$	7,606	$	7,211	$	6,999
Late charges and prepayment penalties		674		765		695
Adjustment for loans repurchased		256		(88)		(86)
Other (1)		(1)		(161)		(1,253)
Servicing income, gross		8,535		7,727		6,355
Amortization and impairment of servicing assets		(3,554)		(3,387)		(3,384)
Servicing income, net	$	4,981	$	4,340	$	2,971
(1) Mainly consisted of compensatory fees imposed by GSEs.

Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans [Table Text Block]

The Corporation’s servicing assets are subject to prepayment and interest rate risks. Key economic assumptions used in determining the fair value at the time of sale of the related mortgages ranged as follows:
	Maximum		Minimum
2016:
Constant prepayment rate:
Government-guaranteed mortgage loans	7.6	%	5.9	%
Conventional conforming mortgage loans	8.0	%	6.3	%
Conventional non-conforming mortgage loans	14.1	%	9.3	%
Discount rate:
Government-guaranteed mortgage loans	12.0	%	11.5	%
Conventional conforming mortgage loans	10.0	%	9.5	%
Conventional non-conforming mortgage loans	14.3	%	13.8	%
2015:
Constant prepayment rate:
Government-guaranteed mortgage loans	9.2	%	7.8	%
Conventional conforming mortgage loans	9.0	%	7.9	%
Conventional non-conforming mortgage loans	14.4	%	12.9	%
Discount rate:
Government-guaranteed mortgage loans	11.5	%	11.5	%
Conventional conforming mortgage loans	9.5	%	9.5	%
Conventional non-conforming mortgage loans	13.8	%	13.8	%
2014:
Constant prepayment rate:
Government-guaranteed mortgage loans	9.6	%	9.1	%
Conventional conforming mortgage loans	9.4	%	8.9	%
Conventional non-conforming mortgage loans	14.0	%	12.7	%
Discount rate:
Government-guaranteed mortgage loans	11.5	%	11.5	%
Conventional conforming mortgage loans	9.5	%	9.5	%
Conventional non-conforming mortgage loans	13.9	%	13.8	%

Weighted-Averages of Key Economic Assumptions in Valuation Model [Table Text Block]

(Dollars in thousands)
Carrying amount of servicing assets	$	26,244
Fair value	$	29,664
Weighted-average expected life (in years)		8.58
Constant prepayment rate (weighted-average annual rate)		6.12	%
Decrease in fair value due to 10% adverse change	$	758
Decrease in fair value due to 20% adverse change	$	1,483
Discount rate (weighted-average annual rate)		11.19	%
Decrease in fair value due to 10% adverse change	$	1,413
Decrease in fair value due to 20% adverse change	$	2,708