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

3 Months Ended

Mar. 31, 2024

NON-CONSOLIDATED VARIABLE INTEREST ENTITIES (VIEs) AND SERVICING ASSETS [Abstract]

Changes in Servicing Assets [Table Text Block]

Quarter Ended March 31,

2024

2023

(In thousands)

Balance at beginning of year

$

26,941

$

29,037

Capitalization of servicing assets

460

532

Amortization

(1,037)

(1,128)

Temporary impairment recoveries

-

4

Other

(1)

(9)

(14)

Balance at end of period

$

26,355

$

28,431

(1)

Mainly represents adjustments related to the repurchase of loans serviced for others.

Changes in Impairment Allowance [Table Text Block]

Quarter Ended March 31,

2024

2023

(In thousands)

Balance at beginning of year

$

-

$

12

Temporary impairment recoveries

-

(4)

 Balance at end of period

$

-

$

8

Components of Net Servicing Income [Table Text Block]

Quarter Ended March 31, 

2024

2023

(In thousands)

Servicing fees

$

2,573

$

2,718

Late charges and prepayment penalties

189

199

Other

(1)

(9)

(14)

 Servicing income, gross

2,753

2,903

Amortization and impairment of servicing assets

(1,037)

(1,124)

 Servicing income, net

$

1,716

$

1,779

(1)

Mainly represents adjustments related to the repurchase of loans serviced for others.

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

Weighted Average

Maximum

Minimum

Quarter Ended March 31, 2024

Constant prepayment rate:

 Government-guaranteed mortgage loans

6.9

%

12.6

%

3.2

%

 Conventional conforming mortgage loans

6.8

%

15.1

%

2.9

%

 Conventional non-conforming mortgage loans

6.0

%

7.6

%

4.4

%

Discount rate:

 Government-guaranteed mortgage loans

11.5

%

11.5

%

11.5

%

 Conventional conforming mortgage loans

9.5

%

9.5

%

9.5

%

 Conventional non-conforming mortgage loans

11.5

%

12.5

%

11.0

%

Quarter Ended March 31, 2023

Constant prepayment rate:

 Government-guaranteed mortgage loans

6.7

%

11.6

%

4.8

%

 Conventional conforming mortgage loans

7.7

%

16.0

%

3.8

%

 Conventional non-conforming mortgage loans

5.7

%

7.0

%

2.1

%

Discount rate:

 Government-guaranteed mortgage loans

11.5

%

11.5

%

11.5

%

 Conventional conforming mortgage loans

9.5

%

9.5

%

9.5

%

 Conventional non-conforming mortgage loans

12.8

%

14.0

%

11.5

%

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

The weighted averages of the key economic assumptions that the Corporation used in its valuation model and the sensitivity of the

current fair value to immediate

10

% and

20

% adverse changes in those assumptions for mortgage loans were as follows as of the

indicated dates:

March 31,

December 31,

2024

2023

(In thousands)

Carrying amount of servicing assets

$

26,355

$

26,941

Fair value

$

44,764

$

45,244

Weighted-average expected life (in years)

7.74

7.79

Constant prepayment rate (weighted-average annual rate)

6.27

%

6.27

%

 Decrease in fair value due to 10% adverse change

$

883

$

886

 Decrease in fair value due to 20% adverse change

$

1,724

$

1,731

Discount rate (weighted-average annual rate)

10.69

%

10.68

%

 Decrease in fair value due to 10% adverse change

$

1,904

$

1,927

 Decrease in fair value due to 20% adverse change

$

3,668

$

3,712