10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________ 

FORM 10-Q

________________________________ 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2022

OR

☐ Transition Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the transition period from _____ to _____

Commission file number: 001-35424

________________________________ 

HOMESTREET, INC.

(a Washington Corporation)

91-0186600

________________________________ 

601 Union Street, Suite 2000

Seattle, Washington 98101

(Address of principal executive offices)

Telephone Number - Area Code (206) 623-3050

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HMST	Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large Accelerated Filer	☐	Accelerated Filer	☒
Non-accelerated Filer	☐	Smaller Reporting Company	☐
Emerging growth Company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐  No ☒

The number of outstanding shares of the registrant's common stock as of May 2, 2022 was 18,703,586.

PART I – FINANCIAL INFORMATION
ITEM 1	FINANCIAL STATEMENTS
Consolidated Balance Sheets at March 31, 2022 and December 31, 2021		3
Consolidated Income Statements for the Quarters Ended March 31, 2022 and 2021		4
Consolidated Statements of Comprehensive Income for the Quarters Ended March 31, 2022 and 2021		5
Consolidated Statements of Shareholders’ Equity for the Quarters Ended March 31, 2022 and 2021		6
Consolidated Statements of Cash Flows for the Quarters Ended March 31, 2022 and 2021		7
Notes to Consolidated Financial Statements		9
ITEM 2	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	40
ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	60
ITEM 4	CONTROLS AND PROCEDURES	63
PART II – OTHER INFORMATION
ITEM 1	LEGAL PROCEEDINGS	63
ITEM 1A	RISK FACTORS	64
ITEM 2	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	65
ITEM 3	DEFAULTS UPON SENIOR SECURITIES	66
ITEM 4	MINE SAFETY DISCLOSURES	66
ITEM 5	OTHER INFORMATION	66
ITEM 6	EXHIBITS	67
SIGNATURES		68

Unless we state otherwise or the content otherwise requires, references in this Form 10-Q to "HomeStreet," "we," "our," "us" or the "Company" refer collectively to HomeStreet, Inc., a Washington corporation, HomeStreet Bank ("Bank"), HomeStreet Capital Corporation ("HomeStreet Capital") and other direct and indirect subsidiaries of HomeStreet, Inc.

2

PART I

ITEM 1 FINANCIAL STATEMENTS

HOMESTREET, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31, 2022		December 31, 2021
(in thousands, except share data)	(Unaudited)
ASSETS
Cash and cash equivalents	$	73,862	$	65,214
Investment securities	1,083,640		1,006,691
Loans held for sale ("LHFS")	59,150		176,131
Loans held for investment ("LHFI") (net of allowance for credit losses of $37,944 and $47,123)	5,826,546		5,495,726
Mortgage servicing rights ("MSRs")	111,657		100,999
Premises and equipment, net	56,269		58,154
Other real estate owned ("OREO")	735		735
Goodwill and other intangible assets	31,464		31,709
Other assets	267,571		268,732
Total assets	$	7,510,894	$	7,204,091
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits	$	6,270,535	$	6,146,509
Borrowings	273,000		41,000
Long-term debt	224,137		126,026
Accounts payable and other liabilities	141,991		175,217
Total liabilities	6,909,663		6,488,752
Commitments and contingencies
Shareholders' equity:
Common stock, no par value, authorized 160,000,000 shares, issued and outstanding, 18,700,536 shares and 20,085,336 shares	223,718		249,856
Retained earnings	408,442		444,343
Accumulated other comprehensive income (loss)	(30,929)		21,140
Total shareholders' equity	601,231		715,339
Total liabilities and shareholders' equity	$	7,510,894	$	7,204,091

See accompanying notes to consolidated financial statements

3

HOMESTREET, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

	Quarter Ended March 31,
(in thousands, except share and per share data)	2022		2021
Interest income:
Loans	$	52,954	$	53,568
Investment securities	5,966		5,951
Cash, Fed Funds and other	108		172
Total interest income	59,028		59,691
Interest expense:
Deposits	2,284		3,650
Borrowings	2,198		1,524
Total interest expense	4,482		5,174
Net interest income	54,546		54,517
Provision for credit losses	(9,000)		—
Net interest income after provision for credit losses	63,546		54,517
Noninterest income:
Net gain on loan origination and sale activities	8,274		33,459
Loan servicing income	3,304		748
Deposit fees	2,075		1,824
Other	1,905		2,802
Total noninterest income	15,558		38,833
Noninterest expense:
Compensation and benefits	32,031		35,835
Information services	7,062		6,784
Occupancy	6,365		6,492
General, administrative and other	9,015		7,497
Total noninterest expense	54,473		56,608
Income before income taxes	24,631		36,742
Income tax expense	4,680		7,079
Net income	$	19,951	$	29,663
Net income per share:
Basic	$	1.02	$	1.37
Diluted	$	1.01	$	1.35
Weighted average shares outstanding:
Basic	19,585,753		21,637,671
Diluted	19,791,913		21,961,828

See accompanying notes to consolidated financial statements

4

HOMESTREET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Quarter Ended March 31,
(in thousands)	2022		2021
Net income	$	19,951	$	29,663
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale ("AFS")	(68,187)		(19,681)
Reclassification for net (gains) losses included in income	(71)		—
Other comprehensive income (loss) before tax	(68,258)		(19,681)
Income tax impact of:
Unrealized gain (loss) on investment securities AFS	(16,172)		(4,133)
Reclassification for net (gains) losses included in income	(17)		—
Total	(16,189)		(4,133)
Other comprehensive income (loss)	(52,069)		(15,548)
Total comprehensive income (loss)	$	(32,118)	$	14,115

See accompanying notes to consolidated financial statements

5

HOMESTREET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands, except share data)	Number of shares	Common stock		Retained earnings		Accumulated other comprehensive income (loss)		Total shareholders' equity
For the quarter ended March 31, 2021
Balance, December 31, 2020	21,796,904	$	278,505	$	403,888	$	35,357	$	717,750
Net income	—	—		29,663		—		29,663
Share-based compensation expense	—	810		—		—		810
Common stock issued - Option exercise; stock grants	188,257	1,849		—		—		1,849
Other comprehensive income (loss)	—	—		—		(15,548)		(15,548)
Dividends declared on common stock ($0.25 per share)	—	—		(5,534)		—		(5,534)
Common stock repurchased	(624,647)	(11,222)		(16,305)		—		(27,527)
Balance, March 31, 2021	21,360,514	$	269,942	$	411,712	$	19,809	$	701,463
For the quarter ended March 31, 2022
Balance, December 31, 2021	20,085,336	$	249,856	$	444,343	$	21,140	$	715,339
Net income	—	—		19,951		—		19,951
Share-based compensation expense	—	1,076		—		—		1,076
Common stock issued - Stock grants	104,840	—		—		—		—
Other comprehensive income (loss)	—	—		—		(52,069)		(52,069)
Dividends declared on common stock ($0.35 per share)	—	—		(7,164)		—		(7,164)
Common stock repurchased	(1,489,640)	(27,214)		(48,688)		—		(75,902)
Balance, March 31, 2022	18,700,536	$	223,718	$	408,442	$	(30,929)	$	601,231

See accompanying notes to consolidated financial statements

6

HOMESTREET, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) 

	Quarter Ended March 31,
(in thousands)	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	19,951	$	29,663
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses	(9,000)		—
Depreciation and amortization, premises and equipment	2,593		2,408
Amortization of premiums and discounts: securities, deposits, debt	999		1,234
Operating leases: excess of payments over amortization	(1,096)		(990)
Amortization of finance leases	143		269
Amortization of core deposit intangibles	245		294
Amortization of deferred loan fees and costs	(322)		(818)
Share-based compensation expense	1,076		810
Lease impairment costs	—		194
Deferred income tax expense (benefit)	5,363		4,448
Origination of LHFS	(252,102)		(734,572)
Proceeds from sale of LHFS	372,464		719,448
Net fair value adjustment and gain on sale of LHFS	3,348		(12,799)
Origination of MSRs	(5,492)		(11,126)
Net gain on sale of loans originated as LHFI	—		(2,795)
Change in fair value of MSRs	(6,878)		(5,770)
Amortization of servicing rights	1,712		1,344
Net change in trading securities	(19,313)		—
(Increase) decrease in other assets	5,972		11,519
Increase (decrease) in accounts payable and other liabilities	4,226		(4,942)
Net cash provided by (used in) operating activities	123,889		(2,181)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities	(161,016)		(49,433)
Proceeds from sale of investment securities	962		—
Principal payments on investment securities	34,129		55,863
Proceeds from sale of OREO	952		—
Proceeds from sale of loans originated as LHFI	—		132,694
Net increase in LHFI	(328,288)		(176,655)
Purchase of premises and equipment	(1,444)		(531)
Proceeds from sale of Federal Home Loan Bank stock	16,003		53,880
Purchases of Federal Home Loan Bank stock	(25,238)		(43,412)
Net cash used in investing activities	(463,940)		(27,594)

7

	Quarter Ended March 31,
(in thousands)	2022		2021
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposits, net	100,973		309,634
Changes in short-term borrowings, net	232,000		(238,300)
Proceeds from debt issuance, net	98,035		—
Repayment of finance lease principal	(145)		(235)
Repurchases of common stock	(75,000)		(25,001)
Proceeds from exercise of stock options	—		263
Dividends paid on common stock	(7,164)		(5,534)
Net cash provided by financing activities	348,699		40,827
Net increase in cash and cash equivalents	8,648		11,052
Cash and cash equivalents, beginning of year	65,214		58,049
Cash and cash equivalents, end of period	$	73,862	$	69,101
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	2,691	$	4,291
Federal and state income taxes	4		50
Non-cash activities:
Increase in lease assets and lease liabilities	2,053		283
Loans transferred from LHFI to LHFS, net	6,731		130,218
Ginnie Mae loans derecognized with the right to repurchase, net	2,402		19,576
Repurchase of common stock-award shares	902		2,526

See accompanying notes to consolidated financial statements

8

HomeStreet, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

NOTE 1–SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

HomeStreet, Inc., a State of Washington corporation organized in 1921 (the "Corporation"), is a Washington-based diversified financial services holding company whose operations are primarily conducted through its wholly owned subsidiaries (collectively the "Company") HomeStreet Capital Corporation, HomeStreet Statutory Trusts and HomeStreet Bank (the "Bank"), and the Bank's subsidiaries, Continental Escrow Company, HomeStreet Foundation, HS Properties, Inc., HS Evergreen Corporate Center LLC, and Union Street Holdings LLC. The Company is principally engaged in commercial banking, mortgage banking and consumer/retail banking activities serving customers primarily in the Western United States.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company allocates resources and assesses financial performance on a consolidated basis and therefore has one reporting segment. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates. Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation.

These unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report on Form 10-Q. The results of operations in the interim financial statements do not necessarily indicate the results that may be expected for the full year. The interim financial information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission ("2021 Annual Report on Form 10-K").

Recent Accounting Developments

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR rates expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the transition to alternative rates. The ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. These ASUs are not expected to have a material impact on the Company’s financial position or results of operations.

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326). The amendments in this ASU eliminate the accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower experiences financial difficulty. In addition, the amendments require that an entity disclose current period gross charge-offs by year of origination in a vintage table. We prospectively adopted the portion of ASU No. 2022-02 with respect to amendments about TDRs and related disclosure enhancements as of January 1, 2022. This adoption did not have a material impact on the Company’s financial position or results of operations. The Company did not adopt the vintage table disclosure requirements and is in the process of analyzing these disclosures. Because it is only a change in disclosures, we do not expect the vintage table disclosure requirement of ASU 2022-02 to have a material impact on the Company's financial position or results of operations when adopted.

9

NOTE 2–INVESTMENT SECURITIES:

The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and held-to-maturity ("HTM"): 

	At March 31, 2022
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
AFS
Mortgage backed securities ("MBS"):
Residential	$	30,689	$	6	$	(1,508)	$	29,187
Commercial	70,312		38		(3,958)		66,392
Collateralized mortgage obligations ("CMOs"):
Residential	276,246		186		(9,940)		266,492
Commercial	138,168		135		(3,424)		134,879
Municipal bonds	535,353		2,802		(23,016)		515,139
Corporate debt securities	26,850		97		(574)		26,373
U.S. Treasury securities	23,263		—		(1,541)		21,722
Total	$	1,100,881	$	3,264	$	(43,961)	$	1,060,184
HTM
Municipal bonds	$	4,143	$	8	$	(17)	$	4,134

	At December 31, 2021
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
AFS
MBS:
Residential	$	32,905	$	396	$	(338)	$	32,963
Commercial	62,094		933		(235)		62,792
CMOs:
Residential	186,703		2,012		(1,321)		187,394
Commercial	135,102		1,890		(333)		136,659
Municipal bonds	516,693		24,154		(924)		539,923
Corporate debt securities	18,918		699		(1)		19,616
U.S. Treasury securities	23,348		—		(173)		23,175
Total	$	975,763	$	30,084	$	(3,325)	$	1,002,522
HTM
Municipal bonds	$	4,169	$	136	$	—	$	4,305

At March 31, 2022, the Company held $19 million of trading securities, consisting of US Treasury notes used as economic hedges of our mortgage servicing rights, which are carried at fair value and included as investment securities on the balance sheet. Unrealized losses on trading securities, which are included in loan servicing income, were $0.7 million in the quarter ended March 31, 2022.

MBS and CMOs represent securities issued by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by either collateral or revenues from the specific project being financed) issued by various municipal corporations. As of March 31, 2022

10

and December 31, 2021, all securities held, including municipal bonds and corporate debt securities, were rated investment grade, based upon external ratings where available and, where not available, based upon internal ratings which correspond to ratings as defined by Standard and Poor's Rating Services or Moody's Investors Services.

Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position:

	At March 31, 2022
	Less than 12 months				12 months or more				Total
(in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
AFS
MBS:
Residential	$	(1,064)	$	25,716	$	(444)	$	2,233	$	(1,508)	$	27,949
Commercial	(3,958)		58,243		—		—		(3,958)		58,243
CMOs:
Residential	(7,475)		177,481		(2,465)		21,315		(9,940)		198,796
Commercial	(2,802)		103,919		(622)		7,608		(3,424)		111,527
Municipal bonds	(21,126)		375,801		(1,890)		12,141		(23,016)		387,942
Corporate debt securities	(574)		16,758		—		—		(574)		16,758
U.S. Treasury securities	(1,541)		21,723		—		—		(1,541)		21,723
Total	$	(38,540)	$	779,641	$	(5,421)	$	43,297	$	(43,961)	$	822,938
HTM
Municipal bonds	$	(17)	$	2,474	$	—	$	—	$	(17)	$	2,474

	At December 31, 2021
	Less than 12 months				12 months or more				Total
(in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
MBS:
Residential	$	(38)	$	5,324	$	(300)	$	2,406	$	(338)	$	7,730
Commercial	(235)		18,127		—		—		(235)		18,127
CMOs:
Residential	(1,007)		53,068		(314)		7,116		(1,321)		60,184
Commercial	(135)		14,806		(198)		5,132		(333)		19,938
Municipal bonds	(914)		64,237		(10)		1,058		(924)		65,295
Corporate debt securities	(1)		3,164		—		—		(1)		3,164
U.S. Treasury securities	(173)		23,175		—		—		(173)		23,175
Total	$	(2,503)	$	181,901	$	(822)	$	15,712	$	(3,325)	$	197,613

The Company has evaluated AFS securities that are in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of March 31, 2022 or December 31, 2021. In addition, as of March 31, 2022 and December 31, 2021, the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis.

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The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield:

	At March 31, 2022
	Within one year				After one year through five years				After five years through ten years				After ten years				Total
(dollars in thousands)	Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield
AFS
Municipal bonds	$	4,159	3.57	%	$	13,675	3.23	%	$	66,619	3.40	%	$	430,686	3.03	%	$	515,139	3.09	%
Corporate debt securities	—		—	%	5,573		3.54	%	20,800		4.39	%	—		—	%	26,373		4.22	%
U.S. Treasury securities	—		—	%	—		—	%	21,722		1.20	%	—		—	%	21,722		1.20	%
Total	$	4,159	3.57	%	$	19,248	3.32	%	$	109,141	3.13	%	$	430,686	3.03	%	$	563,234	3.07	%
HTM
Municipal bonds	$	1,659	2.91	%	$	2,475	2.07	%	$	—	—	%	$	—	—	%	$	4,134	2.41	%

	At December 31, 2021
	Within one year				After one year through five years				After five years through ten years				After ten years				Total
(dollars in thousands)	Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield
AFS
Municipal bonds	$	4,933	3.79	%	$	14,366	3.26	%	$	68,025	3.60	%	$	452,599	3.23	%	$	539,923	3.28	%
Corporate debt securities	—		—	%	6,563		3.60	%	13,053		5.03	%	—		—	%	19,616		4.55	%
U.S. Treasury securities	—		—	%	—		—	%	23,175		1.27	%	—		—	%	23,175		1.27	%
Total	$	4,933	3.79	%	$	20,929	3.37	%	$	104,253	3.23	%	$	452,599	3.23	%	$	582,714	3.24	%
HTM
Municipal bonds	$	1,684	2.86	%	$	2,621	2.12	%	$	—	—	%	$	—	—	%	$	4,305	2.42	%

The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security and does not include adjustments to a tax equivalent basis. MBS and CMOs are excluded from the tables above because such securities are not due on a single maturity date. The weighted average yield of MBS and CMOs as of March 31, 2022 and December 31, 2021 was 1.88% and 1.82%, respectively.

Sales of AFS investment securities were as follows:

	Quarter Ended March 31,
(in thousands)	2022
Proceeds	$	962
Gross gains	71
Gross losses	—

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The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:

(in thousands)	At March 31, 2022		At December 31, 2021
Washington, Oregon and California State to secure public deposits	$	201,444	$	206,153
Other securities pledged	4,972		5,258
Total securities pledged as collateral	$	206,416	$	211,411

The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little credit risk.

Tax-exempt interest income on investment securities was $2.7 million and $2.4 million for the quarters ended March 31, 2022 and 2021, respectively.

13

NOTE 3 -LOANS AND CREDIT QUALITY:

The Company's LHFI is divided into two portfolio segments, commercial loans and consumer loans. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loans within the commercial loan portfolio segment and single family and home equity and other loans within the consumer loan portfolio segment. LHFI consists of the following:

(in thousands)	At March 31, 2022		At December 31, 2021
CRE
Non-owner occupied CRE	$	699,277	$	705,359
Multifamily	2,729,775		2,415,359
Construction/land development	528,134		496,144
Total	3,957,186		3,616,862
Commercial and industrial loans
Owner occupied CRE	464,356		457,706
Commercial business	387,938		401,872
Total	852,294		859,578
Consumer loans
Single family (1)	759,286		763,331
Home equity and other	295,724		303,078
Total	1,055,010		1,066,409
Total LHFI	5,864,490		5,542,849
Allowance for credit losses ("ACL")	(37,944)		(47,123)
Total LHFI less ACL	$	5,826,546	$	5,495,726

(1)    Includes $7.0 million and $7.3 million at March 31, 2022 and December 31, 2021, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

Loans totaling $3.2 billion and $2.8 billion at March 31, 2022 and December 31, 2021, respectively, were pledged to secure borrowings from the Federal Home Loan Bank ("FHLB") and loans totaling $421 million and $419 million at March 31, 2022 and December 31, 2021, respectively, were pledged to secure borrowings from the Federal Reserve Bank of San Francisco ("FRBSF").

Credit Risk Concentrations

LHFI are primarily secured by real estate located in the Pacific Northwest, California and Hawaii. At March 31, 2022 and December 31, 2021, multifamily loans in the state of California represented 34% and 33% of the total LHFI portfolio, respectively.

Credit Quality

Management considers the level of ACL to be appropriate to cover credit losses expected over the life of the loans for the LHFI portfolio. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Bank’s historical loss experience and eight qualitative factors for current and forecasted periods.

During the first quarter of 2022, the historical expected loss rates decreased from December 31, 2021 due to minimal charge-offs, improving portfolio credit distribution and favorable product mix risk composition. During the first quarter of 2022, the qualitative factors decreased significantly due to the continued favorable performance and outlook of the impact of the COVID-19 pandemic on our loan portfolio, which resulted in a reduced management overlay. As of March 31, 2022, the Bank expects that the markets in which it operates will have stable collateral values and economic outlook over the two-year forecast period.

14

In addition to the ACL for LHFI, the Company maintains a separate allowance for unfunded loan commitments which is included in accounts payable and other liabilities on our consolidated balance sheets. The allowance for unfunded commitments was $2.6 million and $2.4 million at March 31, 2022 and December 31, 2021, respectively.

The Bank has elected to exclude accrued interest receivable from the evaluation of the ACL. Accrued interest on LHFI was $18.1 million and $17.8 million at March 31, 2022 and December 31, 2021, respectively, and was reported in other assets in the consolidated balance sheets.

Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows:

	Quarter Ended March 31,
(in thousands)	2022		2021
Beginning balance	$	47,123	$	64,294
Provision for credit losses	(9,223)		(371)
Net (charge-offs) recoveries	44		124
Ending balance	$	37,944	$	64,047
Allowance for unfunded commitments:
Beginning balance	$	2,404	$	1,588
Provision for credit losses	223		371
Ending balance	$	2,627	$	1,959
Provision for credit losses:
Allowance for credit losses - loans	$	(9,223)	$	(371)
Allowance for unfunded commitments	223		371
Total	$	(9,000)	$	—

15

Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows:

	Quarter Ended March 31, 2022
(in thousands)	Beginning balance		Charge-offs		Recoveries		Provision		Ending balance
CRE
Non-owner occupied CRE	$	7,509	$	—	$	—	$	(5,215)	$	2,294
Multifamily	5,854		—		—		2,573		8,427
Construction/land development
Multifamily construction	507		—		—		(51)		456
CRE construction	150		—		—		34		184
Single family construction	6,411		—		—		1,324		7,735
Single family construction to permanent	1,055		—		—		(65)		990
Total	21,486		—		—		(1,400)		20,086
Commercial and industrial loans
Owner occupied CRE	5,006		—		—		(1,470)		3,536
Commercial business	12,273		(11)		24		(5,376)		6,910
Total	17,279		(11)		24		(6,846)		10,446
Consumer loans
Single family	4,394		—		4		(636)		3,762
Home equity and other	3,964		(33)		60		(341)		3,650
Total	8,358		(33)		64		(977)		7,412
Total ACL	$	47,123	$	(44)	$	88	$	(9,223)	$	37,944

	Quarter Ended March 31, 2021
(in thousands)	Beginning balance		Charge-offs		Recoveries		Provision		Ending balance
CRE
Non-owner occupied CRE	$	8,845	$	—	$	—	$	373	$	9,218
Multifamily	6,072		—		—		897		6,969
Construction/land development
Multifamily construction	4,903		—		—		(967)		3,936
CRE construction	1,670		—		—		238		1,908
Single family construction	5,130		—		—		(123)		5,007
Single family construction to permanent	1,315		—		—		(191)		1,124
Total	27,935		—		—		227		28,162
Commercial and industrial loans
Owner occupied CRE	4,994		—		—		272		5,266
Commercial business	17,043		—		74		(12)		17,105
Total	22,037		—		74		260		22,371
Consumer loans
Single family	6,906		(70)		120		(221)		6,735
Home equity and other	7,416		(56)		56		(637)		6,779
Total	14,322		(126)		176		(858)		13,514
Total ACL	$	64,294	$	(126)	$	250	$	(371)	$	64,047

16

The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status.

	At March 31, 2022
(in thousands)	2022		2021		2020		2019		2018		2017 and prior		Revolving		Revolving-term		Total
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass	$	23,614	$	68,572	$	50,276	$	158,484	$	121,836	$	274,775	$	853	$	867	$	699,277
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	23,614		68,572		50,276		158,484		121,836		274,775		853		867		699,277
Multifamily
Pass	364,731		1,311,572		551,187		233,790		60,103		179,862		—		—		2,701,245
Special Mention	—		—		8,695		19,835		—		—		—		—		28,530
Substandard	—		—		—		—		—		—		—		—		—
Total	364,731		1,311,572		559,882		253,625		60,103		179,862		—		—		2,729,775
Multifamily construction
Pass	—		12,163		24,664		—		—		—		—		—		36,827
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	—		12,163		24,664		—		—		—		—		—		36,827
CRE construction
Pass	—		11,668		3,959		—		1,924		548		—		—		18,099
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	—		11,668		3,959		—		1,924		548		—		—		18,099
Single family construction
Pass	31,784		142,275		24,226		12,434		—		76		108,005		—		318,800
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	31,784		142,275		24,226		12,434		—		76		108,005		—		318,800
Single family construction to permanent
Current	6,613		106,419		29,026		10,575		1,775		—		—		—		154,408
Past due:
30-59 days	—		—		—		—		—		—		—		—		—
60-89 days	—		—		—		—		—		—		—		—		—
90+ days	—		—		—		—		—		—		—		—		—
Total	6,613		106,419		29,026		10,575		1,775		—		—		—		154,408
Owner occupied CRE
Pass	20,055		70,792		47,176		57,012		46,661		164,101		248		1,689		407,734
Special Mention	—		—		—		18,499		2,180		23,202		—		—		43,881
Substandard	—		—		—		—		1,111		11,572		—		58		12,741
Total	20,055		70,792		47,176		75,511		49,952		198,875		248		1,747		464,356
Commercial business
Pass	32,359		58,371		48,943		36,976		23,289		27,808		113,186		2,131		343,063
Special Mention	—		213		29		7,047		838		5,264		7,543		212		21,146
Substandard	—		8,214		3,253		2,414		3,392		1,827		4,616		13		23,729
Total	32,359		66,798		52,225		46,437		27,519		34,899		125,345		2,356		387,938
Total commercial portfolio	$	479,156	$	1,790,259	$	791,434	$	557,066	$	263,109	$	689,035	$	234,451	$	4,970	$	4,809,480

17

The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

	At March 31, 2022
(in thousands)	2022		2021		2020		2019		2018		2017 and prior		Revolving		Revolving-term		Total
CONSUMER PORTFOLIO
Single family
Current	$	44,563	$	178,656	$	152,443	$	49,114	$	56,757	$	275,042	$	—	$	—	$	756,575
Past due:
30-59 days	—		—		—		—		—		872		—		—		872
60-89 days	—		—		—		—		—		270		—		—		270
90+ days	—		—		—		994		452		123		—		—		1,569
Total (1)	44,563		178,656		152,443		50,108		57,209		276,307		—		—		759,286
Home equity and other
Current	797		1,585		334		294		197		2,407		284,426		4,755		294,795
Past due:
30-59 days	—		3		—		—		—		—		57		—		60
60-89 days	—		8		—		—		15		—		7		—		30
90+ days	—		—		—		—		—		98		679		62		839
Total	797		1,596		334		294		212		2,505		285,169		4,817		295,724
Total consumer portfolio	$	45,360	$	180,252	$	152,777	$	50,402	$	57,421	$	278,812	$	285,169	$	4,817	$	1,055,010
Total LHFI	$	524,516	$	1,970,511	$	944,211	$	607,468	$	320,530	$	967,847	$	519,620	$	9,787	$	5,864,490

(1)    Includes $7.0 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

18

The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:

	At December 31, 2021
(in thousands)	2021		2020		2019		2018		2017		2016 and prior		Revolving		Revolving-term		Total
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass	$	68,647	$	50,571	$	169,711	$	130,877	$	100,674	$	183,024	$	963	$	892	$	705,359
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	68,647		50,571		169,711		130,877		100,674		183,024		963		892		705,359
Multifamily
Pass	1,315,204		561,666		286,826		60,372		26,065		165,225		1		—		2,415,359
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	1,315,204		561,666		286,826		60,372		26,065		165,225		1		—		2,415,359
Multifamily construction
Pass	7,825		22,863		7,173		—		—		—		—		—		37,861
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	7,825		22,863		7,173		—		—		—		—		—		37,861
CRE construction
Pass	7,694		3,960		—		1,962		—		556		—		—		14,172
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	7,694		3,960		—		1,962		—		556		—		—		14,172
Single family construction
Pass	146,595		35,640		14,509		—		—		77		99,206		—		296,027
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	146,595		35,640		14,509		—		—		77		99,206		—		296,027
Single family construction to permanent
Current	90,311		42,636		13,362		1,775		—		—		—		—		148,084
Past due:
30-59 days	—		—		—		—		—		—		—		—		—
60-89 days	—		—		—		—		—		—		—		—		—
90+ days	—		—		—		—		—		—		—		—		—
Total	90,311		42,636		13,362		1,775		—		—		—		—		148,084
Owner occupied CRE
Pass	70,902		47,536		57,423		47,716		67,042		106,659		798		2,839		400,915
Special Mention	—		—		—		2,196		6,019		145		—		60		8,420
Substandard	—		—		18,665		1,111		10,151		18,444		—		—		48,371
Total	70,902		47,536		76,088		51,023		83,212		125,248		798		2,899		457,706
Commercial business
Pass	88,139		51,453		44,882		24,711		11,859		21,258		112,759		2,104		357,165
Special Mention	—		—		7,396		—		4,396		—		5,613		134		17,539
Substandard	9,716		3,399		1,667		5,928		1,096		1,328		3,932		102		27,168
Total	97,855		54,852		53,945		30,639		17,351		22,586		122,304		2,340		401,872
Total commercial portfolio	$	1,805,033	$	819,724	$	621,614	$	276,648	$	227,302	$	496,716	$	223,272	$	6,131	$	4,476,440

19

The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

	At December 31, 2021
(in thousands)	2021		2020		2019		2018		2017		2016 and prior		Revolving		Revolving-term		Total
CONSUMER PORTFOLIO
Single family
Current	$	176,110	$	156,360	$	62,369	$	66,063	$	95,988	$	204,229	$	—	$	—	$	761,119
Past due:
30-59 days	—		—		291		—		—		—		—		—		291
60-89 days	—		—		—		—		314		471		—		—		785
90+ days	—		—		561		452		—		123		—		—		1,136
Total (1)	176,110		156,360		63,221		66,515		96,302		204,823		—		—		763,331
Home equity and other
Current	2,005		474		393		532		516		2,609		290,512		5,273		302,314
Past due:
30-59 days	—		3		—		—		—		94		40		—		137
60-89 days	—		—		—		—		—		—		12		62		74
90+ days	3		—		—		—		—		6		544		—		553
Total	2,008		477		393		532		516		2,709		291,108		5,335		303,078
Total consumer portfolio	$	178,118	$	156,837	$	63,614	$	67,047	$	96,818	$	207,532	$	291,108	$	5,335	$	1,066,409
Total LHFI	$	1,983,151	$	976,561	$	685,228	$	343,695	$	324,120	$	704,248	$	514,380	$	11,466	$	5,542,849

(1)    Includes $7.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

20

Collateral Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type:

	At March 31, 2022
(in thousands)	Land		1-4 Family		Non-residential real estate		Other non-real estate		Total
Commercial and industrial loans
Owner occupied CRE	$	1,111	$	—	$	2,428	$	—	$	3,539
Commercial business	380		16		562		286		1,244
Total	1,491		16		2,990		286		4,783
Consumer loans
Single family	—		2,049		—		—		2,049
Home equity loans and other	—		345		—		—		345
Total	—		2,394		—		—		2,394
Total collateral-dependent loans	$	1,491	$	2,410	$	2,990	$	286	$	7,177

	At December 31, 2021
(in thousands)	Land		1-4 Family		Non-residential real estate		Other non-real estate		Total
Commercial and industrial loans
Owner occupied CRE	$	1,111	$	—	$	2,456	$	—	$	3,567
Commercial business	362		27		562		286		1,237
Total	1,473		27		3,018		286		4,804
Consumer loans
Single family	—		1,598		—		—		1,598
Home equity loans and other	—		19		—		—		19
Total	—		1,617		—		—		1,617
Total collateral-dependent loans	$	1,473	$	1,644	$	3,018	$	286	$	6,421

Nonaccrual and Past Due Loans

The following table presents nonaccrual status for loans:

	At March 31, 2022					At December 31, 2021
(in thousands)		Nonaccrual with no related ACL		Total Nonaccrual		Nonaccrual with no related ACL		Total Nonaccrual
Commercial and industrial loans
Owner occupied CRE		$	3,539	$	3,539	$	3,568	$	3,568
Commercial business		1,244		3,996		1,210		5,023
Total		4,783		7,535		4,778		8,591
Consumer loans
Single family		2,325		2,918		1,324		2,802
Home equity and other		52		1,393		23		808
Total		2,377		4,311		1,347		3,610
Total nonaccrual loans		$	7,160	$	11,846	$	6,125	$	12,201

21

The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:

	At March 31, 2022
	Past Due and Still Accruing
(in thousands)	30-59 days			60-89 days			90 days or more				Nonaccrual			Total past due and nonaccrual (3)			Current			Total loans
CRE
Non-owner occupied CRE	$	—		$	—		$	—			$	—		$	—		$	699,277		$	699,277
Multifamily	—			—			—				—			—			2,729,775			2,729,775
Construction/land development
Multifamily construction	—			—			—				—			—			36,827			36,827
CRE construction	—			—			—				—			—			18,099			18,099
Single family construction	—			—			—				—			—			318,800			318,800
Single family construction to permanent	—			—			—				—			—			154,408			154,408
Total	—			—			—				—			—			3,957,186			3,957,186
Commercial and industrial loans
Owner occupied CRE	—			—			—				3,539			3,539			460,817			464,356
Commercial business	—			—			—				3,996			3,996			383,942			387,938
Total	—			—			—				7,535			7,535			844,759			852,294
Consumer loans
Single family	3,753			1,821			6,903			(2)	2,918			15,395			743,891			759,286			(1)
Home equity and other	61			31			—				1,393			1,485			294,239			295,724
Total	3,814			1,852			6,903				4,311			16,880			1,038,130			1,055,010
Total loans	$	3,814		$	1,852		$	6,903			$	11,846		$	24,415		$	5,840,075		$	5,864,490
%	0.07		%	0.03		%	0.12		%		0.20		%	0.42		%	99.58		%	100.00		%

22

	At December 31, 2021
	Past Due and Still Accruing
(in thousands)	30-59 days			60-89 days			90 days or more				Nonaccrual			Total past due and nonaccrual (3)			Current			Total loans
CRE
Non-owner occupied CRE	$	—		$	—		$	—			$	—		$	—		$	705,359		$	705,359
Multifamily	—			—			—				—			—			2,415,359			2,415,359
Construction/land development
Multifamily construction	—			—			—				—			—			37,861			37,861
CRE construction	—			—			—				—			—			14,172			14,172
Single family construction	—			—			—				—			—			296,027			296,027
Single family construction to permanent	—			—			—				—			—			148,084			148,084
Total	—			—			—				—			—			3,616,862			3,616,862
Commercial and industrial loans
Owner occupied CRE	—			—			—				3,568			3,568			454,138			457,706
Commercial business	198			—			—				5,023			5,221			396,651			401,872
Total	198			—			—				8,591			8,789			850,789			859,578
Consumer loans
Single family	892			820			6,717			(2)	2,802			11,231			752,100			763,331			(1)
Home equity and other	118			74			—				808			1,000			302,078			303,078
Total	1,010			894			6,717				3,610			12,231			1,054,178			1,066,409
Total loans	$	1,208		$	894		$	6,717			$	12,201		$	21,020		$	5,521,829		$	5,542,849
%	0.02		%	0.02		%	0.12		%		0.22		%	0.38		%	99.62		%	100.00		%

(1)Includes $7.0 million and $7.3 million of loans at March 31, 2022 and December 31, 2021, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements.

(2)FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.

(3)Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.0 million and $8.4 million at March 31, 2022 and December 31, 2021, respectively.

Loan Modifications

The Company provides modifications to borrowers experiencing financial difficulty which may include delays in payment of amounts due, extension of the terms of the notes or reduction in the interest rates on the notes. In certain instances, the Company may grant more than one type of modification. The granting of modifications in the quarter ending March 31, 2022 did not have any material impact on the ACL. The following tables provide information related to loans modified during the quarter ended March 31, 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

(in thousands)	Significant Payment Delay
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	153	0.02	%

(in thousands)	Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	37	—	%

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(in thousands)	Interest Rate Reduction and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	1,110	0.15	%

(in thousands)	Significant Payment Delay and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	6,397	0.84	%
Home equity and other	52		0.02	%

(in thousands)	Interest Rate Reduction, Significant Payment Delay and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	5,762	0.76	%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Loan Type	Financial Effect of:
	Interest Rate Reduction
Single family	Reduced weighted-average contractual interest rate from 4.28% to 3.25%.
	Significant Payment Delay
Single family	Provided payment deferrals to borrowers. A weighted average 0.3% of loan balances were capitalized and added to the remaining term of the loan.
Home equity and other	Provided payment deferrals to borrowers. A weighted average 6.3% of loan balances were capitalized and added to the remaining term of the loan.
	Term Extension
Single family	Added a weighted average 3.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Home equity and other	Added a weighted average 16.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.

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NOTE 4–DEPOSITS:

Deposit balances, including their weighted average rates, were as follows: 

	At March 31, 2022				At December 31, 2021
(dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Noninterest-bearing demand deposits	$	1,654,229	—	%	$	1,617,069	—	%
Interest-bearing demand deposits	591,148		0.10	%	513,810		0.10	%
Savings	309,462		0.06	%	302,389		0.06	%
Money market	2,800,215		0.18	%	2,806,313		0.15	%
Certificates of deposit	915,481		0.45	%	906,928		0.51	%
Total	$	6,270,535	0.16	%	$	6,146,509	0.15	%

Certificates of deposit outstanding mature as follows: 

(in thousands)	March 31, 2022
Within one year	$	761,588
One to two years	133,251
Two to three years	16,491
Three to four years	2,756
Four to five years	1,395
Total	$	915,481

The aggregate amount of certificate of deposits in denominations of more than the FDIC limit of $250 thousand at March 31, 2022 and December 31, 2021 were $96 million and $108 million, respectively. There were $195 million and $145 million of brokered deposits at March 31, 2022 and December 31, 2021, respectively.

NOTE 5–LONG-TERM DEBT:

On January 19, 2022, we completed a $100 million subordinated notes offering due in 2032 (the “Notes”). Interest on the Notes initially will accrue at a rate equal to 3.5% per annum from and including the date of original issuance to, but excluding, January 30, 2027, payable semiannually in arrears. From and including January 30, 2027, to, but excluding, the maturity date

or the date of earlier redemption, the Notes will bear interest equal to the three-month term Secured Overnight Financing Rate ("SOFR") plus 215 basis points, payable quarterly in arrears. Net proceeds to the Company were $98 million, after deducting underwriting discounts and offering expenses. The Company intends to use a significant portion of the net proceeds from the Notes offering to repurchase shares of its common stock through open market purchases, with the remainder of the net proceeds used for working capital and other general corporate purposes, including support for growth of its total assets. At March 31, 2022 the Company had outstanding $98 million of subordinated notes.

At March 31, 2022 and December 31, 2021, the Company had outstanding $64 million of Senior Notes which bear interest at a rate of 6.50% and mature in 2026.

The Company issued trust preferred securities during the period from 2005 through 2007, resulting in a debt balance of $62 million that remains outstanding at March 31, 2022 and December 31, 2021. In connection with the issuance of trust preferred securities, HomeStreet, Inc. issued to HomeStreet Statutory Trust Junior Subordinated Deferrable Interest Debentures. The sole assets of the HomeStreet Statutory Trust are the Subordinated Debt Securities I, II, III, and IV.

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The Subordinated Debt Securities outstanding as of March 31, 2022 and December 31, 2021 are as follows:

	HomeStreet Statutory Trust
(dollars in thousands)	I	II	III	IV
Date issued	June 2005	September 2005	February 2006	March 2007
Amount	$5,155	$20,619	$20,619	$15,464
Interest rate	3 MO LIBOR + 1.70%	3 MO LIBOR + 1.50%	3 MO LIBOR + 1.37%	3 MO LIBOR + 1.68%
Maturity date	June 2035	December 2035	March 2036	June 2037
Call option (1)	Quarterly	Quarterly	Quarterly	Quarterly

(1) Call options are exercisable at par and are callable, without penalty on a quarterly basis, starting five years after issuance.

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NOTE 6–DERIVATIVES AND HEDGING ACTIVITIES:

To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as single family mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges. The notional amounts and fair values for derivatives, which are included in other assets or accounts payable and other liabilities on the consolidated balance sheet, consist of the following: 

	At March 31, 2022
	Notional amount		Fair value derivatives
(in thousands)			Asset		Liability
Forward sale commitments	$	670,018	$	5,079	$	(3,528)
Interest rate lock commitments	100,992		683		(605)
Interest rate swaps	276,561		5,619		(5,620)
Futures	93,200		97		—
Options	30,000		389		—
Total derivatives before netting	$	1,170,771	11,867		(9,753)
Netting adjustment/Cash collateral (1)			(9,096)		3,072
Carrying value on consolidated balance sheet			$	2,771	$	(6,681)

	At December 31, 2021
	Notional amount		Fair value derivatives
(in thousands)			Asset		Liability
Forward sale commitments	$	793,208	$	723	$	(640)
Interest rate lock commitments	115,025		2,487		(3)
Interest rate swaps	287,352		4,381		(4,541)
Futures	139,900		334		—
Total derivatives before netting	$	1,335,485	7,925		(5,184)
Netting adjustment/Cash collateral (1)			1,355		3,921
Carrying value on consolidated balance sheet			$	9,280	$	(1,263)

(1)    Includes net cash collateral received of $6.0 million and paid of $5.3 million at March 31, 2022 and December 31, 2021, respectively.

The following table presents gross fair value and net carrying value information about derivative instruments:

(in thousands)	Gross fair value		Netting adjustments/ Cash collateral (1)		Carrying value
At March 31, 2022
Derivative assets	$	11,867	$	(9,096)	$	2,771
Derivative liabilities	(9,753)		3,072		(6,681)
At December 31, 2021
Derivative assets	$	7,925	$	1,355	$	9,280
Derivative liabilities	(5,184)		3,921		(1,263)

(1) Includes net cash collateral received of $6.0 million and paid of $5.3 million at March 31, 2022 and December 31, 2021, respectively.

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The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties is included in other assets. Payables related to cash collateral that has been received from counterparties is included in accounts payable and other liabilities. Interest is owed on amounts received from counterparties and we earn interest on cash paid to counterparties. Any securities pledged to counterparties as collateral remain on the consolidated balance sheets. At March 31, 2022 and December 31, 2021, the Company had liabilities of $7.6 million and zero, respectively, in cash collateral received from counterparties and receivables of $1.6 million and $5.3 million, respectively, in cash collateral paid to counterparties.

The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:

	Quarter Ended March 31,
(in thousands)	2022		2021
Recognized in noninterest income:
Net gain (loss) on loan origination and sale activities (1)	$	4,613	$	3,858
Loan servicing income (loss) (2)	(9,439)		(12,591)
Other (3)	159		299

(1)Comprised of IRLCs and forward contracts used as an economic hedge of loans held for sale.

(2)Comprised of interest rate swaps, interest rate swaptions, futures, US Treasury notes and US Treasury options and forward contracts used as economic hedges of single family MSRs.

(3)Impact of interest rate swap agreements executed with commercial banking customers.

The notional amount of open interest rate swap agreements executed with commercial banking customers at March 31, 2022 and December 31, 2021 were $277 million and $287 million, respectively. 

NOTE 7–MORTGAGE BANKING OPERATIONS:

LHFS consisted of the following:

(in thousands)	At March 31, 2022		At December 31, 2021
Single family	$	48,994	$	128,041
CRE, multifamily and SBA	10,156		48,090
Total	$	59,150	$	176,131

Loans sold consisted of the following for the periods indicated: 

	Quarter Ended March 31,
(in thousands)	2022		2021
Single family	$	323,070	$	573,040
CRE, multifamily and SBA	49,137		257,717
Total	$	372,207	$	830,757

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Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: 

	Quarter Ended March 31,
(in thousands)	2022		2021
Single family	$	6,169	$	26,187
CRE, multifamily and SBA	2,105		7,272
Total	$	8,274	$	33,459

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 March 31, 2022		At December 31, 2021
Single family	$	5,545,145	$	5,539,180
CRE, multifamily and SBA	2,035,801		2,031,087
Total	$	7,580,946	$	7,570,267

The Company has made representations and warranties that the loans sold meet certain requirements. The Company may be

required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such

as documentation errors, underwriting errors and judgments, appraisal errors, early payment defaults and fraud.

The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses:

	Quarter Ended March 31,
(in thousands)	2022		2021
Balance, beginning of period	$	1,312	$	2,122
Additions, net of adjustments (1)	358		(20)
Realized (losses) recoveries, net (2)	(32)		(161)
Balance, end of period	$	1,638	$	1,941

(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.

The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $2.7 million and $1.9 million were recorded in other assets as of March 31, 2022 and December 31, 2021, respectively.

When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company records the balance of the loans as other assets and other liabilities. At March 31, 2022 and December 31, 2021, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets totaled $10 million and $12 million, respectively.

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Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:

	Quarter Ended March 31,
(in thousands)	2022		2021
Servicing income, net:
Servicing fees and other	$	8,321	$	8,913
Amortization of single family MSRs (1)	(3,425)		(5,693)
Amortization of multifamily and SBA MSRs	(1,712)		(1,344)
Total	3,184		1,876
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)	10,303		11,463
Net gain (loss) from economic hedging	(10,183)		(12,591)
Total	120		(1,128)
Loan servicing income (loss)	$	3,304	$	748

(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.

The changes in single family MSRs measured at fair value are as follows:

	Quarter Ended March 31,
(in thousands)	2022		2021
Beginning balance	$	61,584	$	49,966
Additions and amortization:
Originations	3,916		6,616
Amortization (1)	(3,425)		(5,693)
Net additions and amortization	491		923
Changes in fair value assumptions (2)	10,303		11,463
Ending balance	$	72,378	$	62,352

(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 the initial fair value of capitalized single family MSRs were as follows: 

	Quarter Ended March 31,
(rates per annum) (1)	2022		2021
Constant prepayment rate ("CPR") (2)	9.38	%	8.37	%
Discount rate	8.34	%	8.37	%

(1) Based on a weighted average.

(2) Represents an expected lifetime average CPR used in the model.

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 March 31, 2022			At December 31, 2021
	Range of Inputs	Average (1)		Range of Inputs	Average (1)
CPRs	7.38% - 16.66%	9.42	%	7.90% - 17.35%	10.35	%
Discount Rates	8.10% - 15.18%	9.05	%	6.94% - 13.96%	7.97	%

(1) Weighted averages of all the inputs within the range.

30

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 March 31, 2022
Fair value of single family MSR	$	72,378
Expected weighted-average life (in years)	7.14
CPR
Impact on fair value of 25 basis points adverse change in interest rates	$	(2,208)
Impact on fair value of 50 basis points adverse change in interest rates	$	(4,909)
Discount rate
Impact on fair value of 100 basis points increase	$	(3,217)
Impact on fair value of 200 basis points increase	$	(6,187)

The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows: 

	Quarter Ended March 31,
(in thousands)	2022		2021
Beginning balance	$	39,415	$	35,774
Originations	1,576		5,196
Amortization	(1,712)		(1,344)
Ending balance	$	39,279	$	39,626

NOTE 8–GUARANTEES AND MORTGAGE REPURCHASE LIABILITY:

In the ordinary course of business, the Company sells loans through the Fannie Mae Multifamily Delegated Underwriting and Servicing Program ("DUS"®) that are subject to a credit loss sharing arrangement. The Company services the loans for Fannie Mae and shares in the risk of loss with Fannie Mae under the terms of the DUS contracts. Under the DUS program, the Company and Fannie Mae share losses on a pro rata basis, where the Company is responsible for losses incurred up to one-third of principal balance on each loan with two-thirds of the loss covered by Fannie Mae. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. As of March 31, 2022 and December 31, 2021, the total unpaid principal balance of loans sold under this program was $1.9 billion. The Company's reserve liability related to this arrangement totaled $0.6 million at both March 31, 2022 and December 31, 2021. There were no actual losses incurred under this arrangement during the quarters ended March 31, 2022 and 2021.

In the ordinary course of business, the Company sells residential mortgage loans to GSEs and other entities. Under the terms of these sales agreements, the Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $5.5 billion at both March 31, 2022 and December 31, 2021. At March 31, 2022 and December 31, 2021, the Company had recorded a mortgage repurchase liability for loans sold on a servicing-retained and servicing-released basis, included in accounts payable and other liabilities on the consolidated balance sheets, of $1.6 million and $1.3 million, respectively.

31

NOTE 9–EARNINGS PER SHARE:

The following table summarizes the calculation of earnings per share: 

	Quarter Ended March 31,
(in thousands, except share and per share data)	2022		2021
Net income	$	19,951	$	29,663
Weighted average shares:
Basic weighted-average number of common shares outstanding	19,585,753		21,637,671
Dilutive effect of outstanding common stock equivalents	206,160		324,157
Diluted weighted-average number of common shares outstanding	19,791,913		21,961,828
Net income per share:
Basic earnings per share	$	1.02	$	1.37
Diluted earnings per share	1.01		1.35

NOTE 10–FAIR VALUE MEASUREMENT:

The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company's approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements.

Fair Value Hierarchy

A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows:

• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity

can access at the measurement date. An active market for the asset or liability is a market in which transactions for

the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing

basis.

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,

either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and

inputs that are observable for the asset or liability for substantially the full term of the financial instrument.

• Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company's assumptions of what

market participants would use in pricing the asset or liability.

The Company's policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period.                 

Estimation of Fair Value

Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange.

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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 7, 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.
Interest rate lock commitments	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.

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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, 2022
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets:
Trading securities - U.S. Treasury securities	$	19,313	$	19,313	$	—	$	—
Investment securities AFS
Mortgage backed securities:
Residential	29,187		—		26,954		2,233
Commercial	66,392		—		66,392		—
Collateralized mortgage obligations:
Residential	266,492		—		266,492		—
Commercial	134,879		—		134,879		—
Municipal bonds	515,139		—		515,139		—
Corporate debt securities	26,373		—		26,299		74
U.S. Treasury securities	21,722		—		21,722		—
Single family LHFS	48,994		—		48,994		—
Single family LHFI	6,981		—		—		6,981
Single family mortgage servicing rights	72,378		—		—		72,378
Derivatives
Futures	97		97		—		—
Forward sale commitments	5,079		—		5,079		—
Options	389		389		—		—
Interest rate lock commitments	683		—		—		683
Interest rate swaps	5,619		—		5,619		—
Total assets	$	1,219,717	$	19,799	$	1,117,569	$	82,349
Liabilities:
Derivatives
Forward sale commitments	3,528		—		3,528		—
Interest rate lock commitments	605		—		—		605
Interest rate swaps	5,620		—		5,620		—
Total liabilities	$	9,753	$	—	$	9,148	$	605

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	At December 31, 2021
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets:
Investment securities AFS
Mortgage backed securities:
Residential	$	32,963	$	—	$	30,556	$	2,407
Commercial	62,792		—		62,792		—
Collateralized mortgage obligations:
Residential	187,394		—		187,394		—
Commercial	136,659		—		136,659		—
Municipal bonds	539,923		—		539,923		—
Corporate debt securities	19,616		—		19,541		75
U.S. Treasury securities	23,175		—		23,175		—
Single family LHFS	128,041		—		128,041		—
Single family LHFI	7,287		—		—		7,287
Single family mortgage servicing rights	61,584		—		—		61,584
Derivatives
Futures	334		334		—		—
Forward sale commitments	723		—		723		—
Interest rate lock commitments	2,487		—		—		2,487
Interest rate swaps	4,381		—		4,381		—
Total assets	$	1,207,359	$	334	$	1,133,185	$	73,840
Liabilities:
Derivatives
Forward sale commitments	$	640	$	—	$	640	$	—
Interest rate lock commitments	3		—		—		3
Interest rate swaps	4,541		—		4,541		—
Total liabilities	$	5,184	$	—	$	5,181	$	3

There were no transfers between levels of the fair value hierarchy during the quarters ended March 31, 2022 and 2021.

Level 3 Recurring Fair Value Measurements

The Company's level 3 recurring fair value measurements consist of investment securities AFS, single family MSRs, single family LHFI where fair value option was elected, certain single family LHFS and interest rate lock commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the quarters ended March 31, 2022 and 2021, see Note 7, Mortgage Banking Operations of this Quarterly Report on Form 10-Q.

The fair value of IRLCs considers several factors, including the fair value in the secondary market of the underlying loan resulting from the exercise of the commitment, the expected net future cash flows related to the associated servicing of the loan (referred to as the value of servicing) and the probability that the commitment will not be converted into a funded loan (referred to as a fall-out factor). The fair value of IRLCs on LHFS, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. The significance of the fall-out factor to the fair value measurement of an individual IRLC is generally highest at the time that the rate lock is initiated and declines as closing procedures are performed and the underlying loan gets closer to funding. The fall-out factor applied is based on historical experience. The value of servicing is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs and underlying portfolio characteristics. Because these inputs are not observable in market trades, the fall-out factor and value of servicing are considered to be level 3 inputs. The fair value of IRLCs decreases in value upon an increase in the fall-out factor and increases in value upon an increase in the value of servicing. Changes in the fall-out factor and value of servicing do not increase or decrease based on movements in other significant unobservable inputs.

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The Company recognizes unrealized gains and losses from the time that an IRLC is initiated until the gain or loss is realized at the time the loan closes, which generally occurs within 30-90 days. For IRLCs that fall out, any unrealized gain or loss is reversed, which generally occurs at the end of the commitment period. The gains and losses recognized on IRLC derivatives generally correlates to volume of single family interest rate lock commitments made during the reporting period (after adjusting for estimated fallout) while the amount of unrealized gains and losses realized at settlement generally correlates to the volume of single family closed loans during the reporting period.

The Company uses the discounted cash flow model to estimate the fair value of certain loans that have been transferred from held for sale to held for investment and single family LHFS when the fair value of the loans is not derived using observable market inputs. The key assumption in the valuation model is the implied spread to benchmark interest rate curve. The implied spread is not directly observable in the market and is derived from third party pricing which is based on market information from comparable loan pools. The fair value estimate of single family loans that have been transferred from held for sale to held for investment are sensitive to changes in the benchmark interest rate which might result in a significantly higher or lower fair value measurement.

The Company transferred certain loans from held for sale to held for investment. These loans were originated as held for sale loans where the Company had elected fair value option. The Company determined these loans to be level 3 recurring assets as the valuation technique included a significant unobservable input. The total amount of held for investment loans where fair value option election was made was $7.0 million and $7.3 million at March 31, 2022 and December 31, 2021, respectively.

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, 2022
Investment securities AFS	$	2,307	Income approach	Implied spread to benchmark interest rate curve	2.00%	2.00%	2.00%
Single family LHFI	6,981		Income approach	Implied spread to benchmark interest rate curve	2.49%	4.76%	3.14%
Interest rate lock commitments, net	78		Income approach	Fall-out factor	0.20%	29.60%	11.71%
				Value of servicing	0.45%	1.39%	1.06%
December 31, 2021
Investment securities AFS	$	2,482	Income approach	Implied spread to benchmark interest rate curve	2.00%	2.00%	2.00%
Single family LHFI	7,287		Income approach	Implied spread to benchmark interest rate curve	2.39%	7.96%	3.56%
Interest rate lock commitments, net	2,484		Income approach	Fall-out factor	0.15%	21.93%	8.44%
				Value of servicing	0.35%	1.46%	1.15%

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We had no LHFS where the fair value was not derived with significant observable inputs at March 31, 2022 and December 31, 2021.

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, 2022
Investment securities AFS	$	2,482	$	—	$	—	$	(48)	$	(127)	$	2,307
Single family LHFI	7,287		—		—		—		(306)		6,981
Quarter Ended March 31, 2021
Investment securities AFS	$	2,710	$	—	$	—	$	(48)	$	(172)	$	2,490
Single family LHFI	7,108		360		—		(3,191)		47		4,324

(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)	2022		2021
Beginning balance, net	$	2,484	$	17,392
Total realized/unrealized gains (losses)	(2,177)		(3,469)
Settlements	(229)		(7,435)
Ending balance, net	$	78	$	6,488

Nonrecurring Fair Value Measurements

Certain assets held by the Company are not included in the tables above, but are measured at fair value on a periodic basis. These assets include certain LHFI and OREO that are carried at the lower of cost or fair value of the underlying collateral, less the estimated costs to sell. The estimated fair values of real estate collateral are generally based on internal evaluations and appraisals of such collateral, which use the market approach and income approach methodologies. We have omitted disclosure related to quantitative inputs given the insignificance of assets measured on a nonrecurring basis.

The fair value of commercial properties is generally based on third-party appraisals that consider recent sales of comparable properties, including their income-generating characteristics, adjusted (generally based on unobservable inputs) to reflect the general assumptions that a market participant would make when analyzing the property for purchase. The Company uses a fair value of collateral technique to apply adjustments to the appraisal value of certain commercial LHFI that are collateralized by real estate.

The Company uses a fair value of collateral technique to apply adjustments to the stated value of certain commercial LHFI that are not collateralized by real estate and to the appraisal value of OREO.

Residential properties are generally based on unadjusted third-party appraisals. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property.

These adjustments include management assumptions that are based on the type of collateral dependent loan and may increase or decrease an appraised value. Management adjustments vary significantly depending on the location, physical characteristics and income producing potential of each individual property. The quality and volume of market information available at the time of the appraisal can vary from period-to-period and cause significant changes to the nature and magnitude of the unobservable inputs used. Given these variations, changes in these unobservable inputs are generally not a reliable indicator for how fair value will increase or decrease from period to period.

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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, 2022
LHFI (1)	$	904	$	10

(1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral.

Fair Value of Financial Instruments

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, 2022
(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	73,862	$	73,862	$	73,862	$	—	$	—
Investment securities HTM	4,143		4,134		—		4,134		—
LHFI	5,819,565		5,712,390		—		—		5,712,390
LHFS – multifamily and other	10,156		10,248		—		10,248		—
Mortgage servicing rights – multifamily and SBA	39,279		43,453		—		—		43,453
Federal Home Loan Bank stock	19,596		19,596		—		19,596		—
Other assets - GNMA EBO loans	9,940		9,940		—		—		9,940
Liabilities:
Certificates of deposit	$	915,481	$	908,030	$	—	$	908,030	$	—
Borrowings	273,000		273,000				273,000
Long-term debt	224,137		214,853		—		214,853		—

	At December 31, 2021
(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	65,214	$	65,214	$	65,214	$	—	$	—
Investment securities HTM	4,169		4,305		—		4,305		—
LHFI	5,488,439		5,588,719		—		—		5,588,719
LHFS – multifamily and other	48,090		48,425		—		48,425		—
Mortgage servicing rights – multifamily and SBA	39,415		43,199		—		—		43,199
Federal Home Loan Bank stock	10,361		10,361		—		10,361		—
Other assets-GNMA EBO loans	12,342		12,342		—		—		12,342
Liabilities:
Certificates of deposit	$	906,928	$	906,064	$	—	$	906,064	$	—
Borrowings	41,000		41,000		—		41,000		—
Long-term debt	126,026		116,845		—		116,845		—

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Fair Value Option

Single family loans held for sale accounted under the fair value option are measured initially at fair value with subsequent changes in fair value recognized in earnings. Gains and losses from such changes in fair value are recognized in net gain on mortgage loan origination and sale activities within noninterest income. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in fair value of the related servicing asset, resulting in revaluations adjustments to the recorded fair value. The use of the fair value option allows the change in the fair value of loans to more effectively offset the change in fair value of derivative instruments that are used as economic hedges of loans held for sale.

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, 2022						At December 31, 2021
(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	$	48,994	$	49,457	$	(463)	$	128,041	$	124,933	$	3,108

NOTE 11–SUBSEQUENT EVENT:

On April 28, 2022 the Board authorized a dividend of $0.35 per share, payable on May 24, 2022 to shareholders of record on May 10, 2022.

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ITEM 2     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Consolidated Financial Statements and Notes presented elsewhere in this report and in HomeStreet, Inc.'s 2021 Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

Statements contained in this Quarterly Report on Form 10-Q that are not historical facts or that discuss our expectations, beliefs or views regarding our future operations or future financial performance, or financial or other trends in our business or in the markets in which we operate, anticipated completion of loan forbearances with respect to customer loans, our future plans and the credit exposure of certain loan products and other components of our business that could be impacted by the COVID-19 pandemic, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Many forward-looking statements can be identified as using words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will" and "would" and similar expressions (or the negative of these terms). Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company and are subject to risks and uncertainties, including, but not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2021 and the risks and uncertainties discussed below and elsewhere in this Quarterly Report on Form 10-Q that could cause actual results to differ significantly from those projected. In addition, many of the risks and uncertainties are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global, national, regional and local business and economic environment as a result.

Although we believe that expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We undertake no obligation, and expressly disclaim any such obligation to update; or clarify any of the forward-looking statements after the date of this Quarterly Report on Form 10-Q to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or changes to future results over time or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q.

Except as otherwise noted, references to "we," "our," "us" or "the Company" refer to HomeStreet, Inc. and its subsidiaries that are consolidated for financial reporting purposes. Statements of knowledge, intention or belief reflect those characteristics of our executive management team based on current facts and circumstances.

You may review a copy of this Quarterly Report on Form 10-Q, including exhibits and any schedule filed therewith on the Securities and Exchange Commission's website (http://www.sec.gov) that contains reports, proxy and information statements and other information regarding registrants, such as HomeStreet, Inc., that file electronically with the Securities and Exchange Commission. Copies of our Securities Exchange Act reports also are available from our investor relations website, http://ir.homestreet.com. Information contained in or linked from our websites is not incorporated into and does not constitute a part of this report.

Critical Accounting Estimates

We have identified two estimates as being critical because they require management to make particularly difficult, subjective, and/or complex judgments about matters that are inherently uncertain and because of the likelihood that materially different amounts would be reported under different conditions or using different assumptions. These policies relate to the allowance for credit losses (“ACL”) and the valuation of single family mortgage servicing rights (“MSRs").

The ACL is calculated based on quantitative and qualitative factors to estimate credit losses over the life of the loan. The inputs used to determine quantitative factors include estimates based on historical experience of probability of default and losses given default. Inputs used to determine qualitative factors include changes in current portfolio characteristics and operating environments such as current and forecasted unemployment rates, capitalization rates used to value properties securing loans, rental rates and single family pricing indexes. Qualitative factors may also include adjustments to address matters not contemplated by the model and to assumptions used to determine qualitative factors. Although we believe that our methodology for determining an appropriate level for the ACL adequately addresses the various components that could potentially result in credit losses, the processes and their elements include features that may be susceptible to significant change. Any unfavorable

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differences between the actual outcome of credit-related events and our estimates could require an additional provision for credit losses. For example, if the projected unemployment rate was downgraded one grade, the amount of the ACL on March 31, 2022 would increase by approximately $6 million. This sensitivity analysis is hypothetical and has been provided only to indicate the potential impact that changes in assumptions may have on the ACL estimate.

The valuation of MSRs is based on various assumptions which are set forth in Note 7–Mortgage Banking Operations of the financial statements. Note 7 also provides sensitivity analysis based on the assumptions used. The sensitivity analyses are hypothetical and have been provided to indicate the potential impact that changes in assumptions may have on the estimate of the value of MSRs.

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Summary Financial Data

	Quarter Ended
(in thousands, except per share data and FTE data)	March 31, 2022			December 31, 2021			March 31, 2021
Select Income Statement data:
Net interest income	$	54,546		$	57,084		$	54,517
Provision for credit losses	(9,000)			(6,000)			—
Noninterest income	15,558			28,620			38,833
Noninterest expense	54,473			53,971			56,608
Net income:
Before income taxes	24,631			37,733			36,742
Total	19,951			29,432			29,663
Net income per share - diluted	1.01			1.43			1.35
Select Performance Ratios:
Return on average equity - annualized	11.6		%	16.1		%	16.4		%
Return on average tangible equity - annualized (1)	12.2		%	17.0		%	17.3		%
Return on average assets - annualized	1.10		%	1.59		%	1.65		%
Efficiency ratio (1)	77.0		%	62.2		%	60.0		%
Net interest margin	3.27		%	3.34		%	3.29		%
Other data
Full time equivalent employees	962			970			1,013

(1)Return on average tangible equity and the efficiency ratio are non-GAAP financial measures. For a reconciliation of return on average tangible equity to the nearest comparable GAAP financial measure, see “Non-GAAP Financial Measures” elsewhere in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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	As of
(in thousands, except share and per share data)	March 31, 2022			December 31, 2021
Selected Balance Sheet Data
Loans held for sale	$	59,150		$	176,131
Loans held for investment, net	5,826,546			5,495,726
ACL	37,944			47,123
Investment securities	1,083,640			1,006,691
Total assets	7,510,894			7,204,091
Deposits	6,270,535			6,146,509
Borrowings	273,000			41,000
Long-term debt	224,137			126,026
Total shareholders' equity	601,231			715,339
Other data:
Book value per share	$	32.15		$	35.61
Tangible book value per share (1)	$	30.47		$	34.04
Total equity to total assets	8.0		%	9.9		%
Tangible common equity to tangible assets (1)	7.6		%	9.5		%
Shares outstanding at period end	18,700,536			20,085,336
Loans to deposit ratio	94.5		%	93.0		%
Credit Quality:
ACL to total loans (2)	0.66		%	0.88		%
ACL to nonaccrual loans	320.3		%	386.2		%
Nonaccrual loans to total loans	0.20		%	0.22		%
Nonperforming assets to total assets	0.17		%	0.18		%
Nonperforming assets	$	12,581		$	12,936
Regulatory Capital Ratios:
Bank
Tier 1 leverage ratio	10.30		%	10.11		%
Total risk-based capital	13.23		%	13.77		%
Company
Tier 1 leverage ratio	8.99		%	9.94		%
Total risk-based capital	12.65		%	12.66		%

(1)Tangible book value per share and tangible common equity to tangible assets are non-GAAP financial measures. For a reconciliation to the nearest comparable GAAP financial measure, see “Non-GAAP Financial Measures” elsewhere in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(2)This ratio excludes balances insured by the FHA or guaranteed by the VA or SBA.

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Current Developments

On January 19, 2022, we completed a $100 million subordinated notes offering due in 2032 (the “Notes”). Interest on the Notes initially will accrue at a rate equal to 3.5% per annum from and including the date of original issuance to, but excluding, January 30, 2027, payable semiannually in arrears. From and including January 30, 2027, to, but excluding, the maturity date

or the date of earlier redemption, the Notes will bear interest equal to the three-month term SOFR plus 215 basis points, payable quarterly in arrears. Net proceeds were $98 million, after deducting underwriting discounts and offering expenses. We used a significant portion of the net proceeds from the Notes offering to repurchase shares of our common stock through open market purchases and we plan to use the remainder of the net proceeds for working capital and other general corporate purposes, including support for growth of our assets.

As part of our capital management strategy, during the first three months of 2022, we repurchased a total of 1,471,485 shares of our common stock at an average price of $50.97 per share.

As part of our business strategy, we are focusing on growing our loan portfolio and leveraging our existing operating expense infrastructure. Increases in our loan portfolio will have the effect of increasing our level of net interest income in future periods, a more stable source of revenues as compared to gain on loan origination and sale activities. As part of this strategy, we did not sell any multifamily portfolio loans in the first quarter of 2022.

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Management's Overview of the First Quarter 2022 Financial Performance

First Quarter of 2022 Compared to the Fourth Quarter of 2021

General: Our net income and income before taxes were $20.0 million and $24.6 million, respectively, in the first quarter of 2022, as compared to $29.4 million and $37.7 million, respectively, in the fourth quarter of 2021. The $13.1 million decrease in income before taxes was due to lower net interest income, lower noninterest income and higher noninterest expenses, partially offset by a higher recovery of our allowance for credit losses.

Income Taxes: Our effective tax rate was 19.0% in the first quarter of 2022 as compared to 22.0% in fourth quarter of 2021 and a statutory rate of 23.4%. Our effective tax rate was lower than our statutory rate due to the benefits of tax advantaged investments. Additionally, our effective tax rate in the first quarter of 2022 was lower than the fourth quarter of 2021 due to reductions in taxes on income related to excess tax benefits resulting from the vesting of stock awards during the first quarter.

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Net Interest Income: The following tables set forth, for the periods indicated, information regarding (i) the total dollar amount of interest income from interest-earning assets and the resultant average yields on those assets; (ii) the total dollar amount of interest expense and the average rate of interest on our interest-bearing liabilities; (iii) net interest income; (iv) net interest rate spread; and (v) net yield on interest-earning assets:

	Quarter Ended
	March 31, 2022						December 31, 2021
(in thousands)	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Assets:
Interest-earning assets:
Loans (1)	$	5,691,316	$	53,135	3.74	%	$	5,767,597	$	55,587	3.79	%
Investment securities (1)	1,028,971		6,671		2.59	%	990,273		6,178		2.50	%
FHLB Stock, Fed Funds and other	65,918		108		0.65	%	82,447		97		0.46	%
Total interest-earning assets	6,786,205		59,914		3.54	%	6,840,317		61,862		3.57	%
Noninterest-earning assets	577,384						516,640
Total assets	$	7,363,589					$	7,356,957
Liabilities and shareholders' equity:
Interest-bearing deposits: (2)
Demand deposits	$	525,608	$	143	0.11	%	$	538,468	$	183	0.14	%
Money market and savings	3,101,607		1,121		0.15	%	3,120,212		1,111		0.14	%
Certificates of deposit	886,416		1,020		0.47	%	932,559		1,187		0.51	%
Total	4,513,631		2,284		0.21	%	4,591,239		2,481		0.21	%
Borrowings:
Borrowings	64,557		91		0.56	%	25,711		48		0.73	%
Long-term debt	204,553		2,107		4.12	%	125,995		1,356		4.29	%
Total interest-bearing liabilities	4,782,741		4,482		0.38	%	4,742,945		3,885		0.33	%
Noninterest-bearing liabilities:
Demand deposits (2)	1,744,202						1,728,558
Other liabilities	138,048						159,440
Total liabilities	6,664,991						6,630,943
Shareholders' equity	698,598						726,014
Total liabilities and shareholders' equity	$	7,363,589					$	7,356,957
Net interest income			$	55,432					$	57,977
Net interest rate spread					3.16	%					3.24	%
Net interest margin					3.27	%					3.34	%

(1)    Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $0.9 million for tboth quarters ended March 31, 2022 and December 31, 2021. The estimated federal statutory tax rate was 21% for the periods presented.

(2)    Cost of all deposits, including noninterest-bearing demand deposits was 0.15% and 0.16% for the quarter ended March 31, 2022 and December 31, 2021, respectively.

Net interest income was $2.5 million lower in the first quarter of 2022 as compared to the fourth quarter of 2021 primarily due to lower average loan balances, a $0.7 million increase in interest expense related to the $100 million subordinated notes offering completed in January 2022 and a $0.6 million decrease in income from Paycheck Protection Program loans. The lower average loan balances were primarily due to the sale of $244 million of multifamily loans in November of 2021 which was partially offset by the increase in loan balances during the first quarter.

Provision for Credit Losses: As a result of the continued favorable performance of our loan portfolio, a stable low level of nonperforming assets and an improved outlook of the estimated impact of COVID-19 on our loan portfolio, we recorded a $9 million recovery of our allowance for credit losses in the first quarter of 2022, as compared to a $6 million recovery of our allowance for credit losses in the fourth quarter of 2021.

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Noninterest Income consisted of the following: 

	Quarter Ended
(in thousands)	March 31, 2022		December 31, 2021
Noninterest income
Gain on loan origination and sale activities (1)
Single family	$	6,169	$	10,578
CRE, multifamily and SBA	2,105		9,501
Loan servicing income	3,304		2,540
Deposit fees	2,075		2,156
Other	1,905		3,845
Total noninterest income	$	15,558	$	28,620

(1) May include loans originated as held for investment.

Loan servicing income, a component of noninterest income, consisted of the following:

	Quarter Ended
(in thousands)	March 31, 2022		December 31, 2021
Single family servicing income, net
Servicing fees and other	$	3,871	$	3,870
Changes - amortization (1)	(3,425)		(4,216)
Net	446		(346)
Risk management, single family MSRs:
Changes in fair value due to assumptions (2)	10,303		193
Net gain (loss) from economic hedging	(10,183)		(378)
Subtotal	120		(185)
Single Family servicing income (loss)	566		(531)
Commercial loan servicing income:
Servicing fees and other	4,450		5,417
Amortization of capitalized MSRs	(1,712)		(2,346)
Total	2,738		3,071
Total loan servicing income	$	3,304	$	2,540

(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.

The decrease in noninterest income in the first quarter of 2022 as compared to the fourth quarter of 2021 was due to a $11.8 million decrease in gain on loan origination and sale activities and a $1.9 million decrease in other income which were partially offset by a $0.8 million increase in loan servicing income. The decrease in gain on loan origination and sale activities was due to a $4.4 million decrease in single family gain on loan origination and sale activities and a $7.4 million decrease in commercial real estate (“CRE”) and commercial gain on loan origination and sale activities. The decrease in single family gain on loan origination and sale activities was due to a decrease in rate lock volume and margins as a result of the effects of increasing interest rates. The decrease in CRE and commercial gain on loan origination and sale activities was primarily due to an 84% decrease in the volume of loans sold. The decrease in other income was due to a $1.0 million decrease in revenues from investments in community development entities and $0.6 million gain on sale of other real estate owned realized in the fourth quarter.

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Noninterest Expense consisted of the following:

	Quarter Ended
(in thousands)	March 31, 2022		December 31, 2021
Noninterest expense
Compensation and benefits	$	32,031	$	30,627
Information services	7,062		7,278
Occupancy	6,365		5,662
General, administrative and other	9,015		10,404
Total noninterest expense	$	54,473	$	53,971

The $0.5 million increase in noninterest expense in the first quarter of 2022 as compared to the fourth quarter of 2021 was primarily due to higher compensation and benefits and occupancy costs, partially offset by lower general, administrative and other costs. The higher level of compensation and benefit costs reflect a $1.0 million reversal of previously accrued medical benefits related to the positive experience in our self-insured medical program in the fourth quarter. Occupancy costs increased due to common area maintenance rent increases and accelerated depreciation in the first quarter of 2022. Legal costs, which are included in general, administrative and other costs, were $1.4 million lower in the first quarter of 2022 as compared to the fourth quarter of 2021 due to higher nonrecurring costs expended on litigation activities and legal matters in the fourth quarter.

First Quarter of 2022 Compared to First Quarter of 2021

General: Our net income and income before taxes were $20.0 million and $24.6 million, respectively, in the first quarter of 2022, as compared to $29.7 million and $36.7 million, respectively, in the first quarter of 2021. The $12.1 million decrease in income before taxes was due to lower noninterest income, partially offset by a recovery of our allowance for credit losses in 2022 and lower noninterest expense.

Income Taxes: Our effective tax rate during first quarter of 2022 was 19.0% as compared to 19.3% in the first quarter of 2021 and a statutory rate of 23.4%. Our effective tax rate for both periods was lower than our statutory rate due to the benefits of tax advantaged investments and reductions in taxes on income related to excess tax benefits resulting from the exercise and vesting of stock awards during the quarter.

Net Interest Income: The following tables set forth, for the periods indicated, information regarding (i) the total dollar amount of interest income from interest-earning assets and the resultant average yields on those assets; (ii) the total dollar amount of interest expense and the average rate of interest on our interest-bearing liabilities; (iii) net interest income; (iv) net interest rate spread; and (v) net yield on interest-earning assets:

48

	Quarter Ended March 31,
	2022						2021
(in thousands)	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Assets:
Interest-earning assets:
Loans (1)	$	5,691,316	$	53,135	3.74	%	$	5,605,868	$	53,755	3.85	%
Investment securities (1)	1,028,971		6,671		2.59	%	1,065,423		6,591		2.47	%
FHLB Stock, Fed Funds and other	65,918		108		0.65	%	68,044		172		1.01	%
Total interest-earning assets	6,786,205		59,914		3.54	%	6,739,335		60,518		3.60	%
Noninterest-earning assets	577,384						571,073
Total assets	$	7,363,589					$	7,310,408
Interest-bearing liabilities:
Interest-bearing deposits: (2)
Demand deposits	$	525,608	$	143	0.11	%	$	493,831	$	169	0.14	%
Money market and savings	3,101,607		1,121		0.15	%	2,915,005		1,228		0.17	%
Certificates of deposit	886,416		1,020		0.47	%	1,180,290		2,253		0.77	%
Total	4,513,631		2,284		0.21	%	4,589,126		3,650		0.32	%
Borrowings:
Borrowings	64,557		91		0.56	%	203,621		161		0.32	%
Long-term debt	204,553		2,107		4.12	%	125,854		1,363		4.33	%
Total interest-bearing liabilities	4,782,741		4,482		0.38	%	4,918,601		5,174		0.42	%
Noninterest-bearing liabilities:
Demand deposits (2)	1,744,202						1,433,765
Other liabilities	138,048						226,323
Total liabilities	6,664,991						6,578,689
Shareholders' equity	698,598						731,719
Total liabilities and shareholders' equity	$	7,363,589					$	7,310,408
Net interest income			$	55,432					$	55,344
Net interest spread					3.16	%					3.18	%
Net interest margin					3.27	%					3.29	%

(1) Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $0.9 million and $0.8 million for the quarters ended March 31, 2022 and 2021, respectively. The estimated federal statutory tax rate was 21% for the periods presented.

(2) Cost of deposits including noninterest-bearing deposits, was 0.15% and 0.25% for the quarters ended March 31, 2022 and 2021, respectively.

Net interest income was stable in the first quarter of 2022 as compared to the first quarter of 2021 as increases in the average balance of loans was offset by a decrease in the net interest margin. Our net interest margin decreased slightly from 3.29% in the first quarter of 2021 compared to 3.27% in the first quarter of 2022 as a six basis point decrease in our yield on interest earning assets was offset by a four basis point decrease in the rate on interest-bearing liabilities. The decrease in yield on interest earning assets was primarily due to the prepayment and paydown of higher yielding loans and investments in our portfolios during 2021. Our cost of interest-bearing liabilities decreased due to decreases in market interest rates during 2021 which was partially offset by the impact of the $100 million subordinated notes offering completed in January 2022. The increase in the average balance of loans reflects the increases in our loans held for investment that occurred in 2021 and in the first quarter of 2022.

Provision for Credit Losses: As a result of the favorable performance of our loan portfolio, a stable low level of nonperforming assets and an improved outlook of the estimated impact of COVID-19 on our loan portfolio, we recorded a $9 million recovery of our allowance for credit losses in the first quarter of 2022. We recorded no provision for credit losses in the first quarter of 2021.

49

Noninterest Income consisted of the following:  

	Quarter Ended March 31,
(in thousands)	2022		2021
Noninterest income
Gain on loan origination and sale activities (1)
Single family	$	6,169	$	26,187
Commercial	2,105		7,272
Loan servicing income	3,304		748
Deposit fees	2,075		1,824
Other	1,905		2,802
Total noninterest income	$	15,558	$	38,833

(1) May include loans originated as held for investment.

Loan servicing income, a component of noninterest income, consisted of the following:

	Quarter Ended March 31,
(in thousands)	2022		2021
Single family servicing income, net
Servicing fees and other	$	3,871	$	3,935
Changes - amortization (1)	(3,425)		(5,693)
Net	446		(1,758)
Risk management, single family MSRs:
Changes in fair value due to assumptions (2)	10,303		11,463
Net gain (loss) from economic hedging	(10,183)		(12,591)
Subtotal	120		(1,128)
Single Family servicing income (loss)	566		(2,886)
Commercial loan servicing income:
Servicing fees and other	4,450		4,978
Amortization of capitalized MSRs	(1,712)		(1,344)
Total	2,738		3,634
Total loan servicing income	$	3,304	$	748

(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.

50

The decrease in noninterest income for the first quarter of 2022 as compared to the first quarter of 2021 was due to decreases in gain on loan origination and sale activities, which was partially offset by higher loan servicing income. The $25.2 million decrease in gain on loan origination and sale activities was due to a $20.0 million decrease in single family gain on loan origination and sale activities and a $5.2 million decrease in CRE and commercial gain on loan origination and sale activities. The decrease in single family gain on loan origination and sale activities was due to a decrease in rate lock volume and margins as a result of the effects of increasing interest rates. The decrease in CRE and commercial gain on loan origination and sale activities was primarily due to a 81% decrease in the volume of loans sold. The $2.6 million increase in loan servicing income was primarily due to lower levels of prepayments and improved risk management results.

Noninterest Expense consisted of the following:

	Quarter Ended March 31,
(in thousands)	2022		2021
Noninterest expense
Compensation and benefits	$	32,031	$	35,835
Information services	7,062		6,784
Occupancy	6,365		6,492
General, administrative and other	9,015		7,497
Total noninterest expense	$	54,473	$	56,608

The $2.1 million decrease in noninterest expense in the first quarter of 2022 as compared to the first quarter of 2021 was due to lower compensation and benefit costs, partially offset by an increase in general, administrative and other expenses. The $3.8 million decrease in compensation and benefits expense is primarily due to reduced commission expense on lower loan origination volumes in our single family mortgage operations. The increase in general, administrative and other costs was due to charges related to nonrecurring costs expended on litigation activities and legal matters in the first quarter of 2022.

51

Financial Condition

During the first quarter of 2022, total assets increased $307 million due primarily to a $331 million increase in loans held for investment and a $77 million increase in investment securities which were partially offset by a decrease of $117 million in loans held for sale. Loans held for investment increased due to $747 million of originations, which were partially offset by prepayments and scheduled payments of $419 million. Total liabilities increased $421 million due to increases in deposits, borrowings and long-term debt. The $124 million increase in deposits was due to higher levels of business deposits and wholesale deposits. The increase in borrowings was due to an increased need for wholesale borrowings to fund loan growth. Long-term debt increased due to our $100 million subordinated debt offering in completed in January 2022.

52

Credit Risk Management

As of March 31, 2022, our ratio of nonperforming assets to total assets remained low at 0.17% while our ratio of total loans delinquent over 30 days to total loans was 0.42%. The Company recorded a $9 million recovery of our allowance for credit losses for the quarter ended March 31, 2022.

As a result of the COVID-19 pandemic, the Company has approved forbearances for some of its borrowers. The status of these forbearances as of March 31, 2022 is as follows:

	Forbearances Approved (2)(3)
	Total			Expired			Outstanding
(in thousands)	Number of loans	Amount		Number of loans	Amount		Number of loans	Amount
Loan type:
Commercial and CRE:
Commercial business	92	$	46,026	92	$	46,026	—	$	—
CRE owner occupied	25	65,210		25	65,210		—	—
CRE nonowner occupied	13	56,233		12	42,194		1	14,039
Total	130	$	167,469	129	$	153,430	1	$	14,039
Single family and consumer (1)
Single family							9	$	5,036
HELOCs and consumer							4	487
Total							13	$	5,523

(1) Does not include any single family loans that are guaranteed by Ginnie Mae.

(2) Does not include construction loans that were modified as a result of COVID-19 related construction delays to extend the construction or lease-up periods. Each of these loans continued to make monthly payments under the existing or modified payment terms. At March 31, 2022, only one of these loans with a $1 million balance is still operating under the terms of their modification.

(3) There were no forbearances initiated in the first quarter of 2022.

The forbearances approved for commercial and industrial loans and CRE nonowner occupied loans were generally for a period of three months while the forbearances for single family, HELOCs and consumer loans were generally for a period of three to six months. As of March 31, 2022, excluding the loans with forbearances still in place, 99% of the commercial and CRE loans approved for a forbearance have completed their forbearance period and have resumed payments. The forbearance periods for the majority of single family and consumer loans granted forbearance that were not complete as of March 31, 2022 are scheduled to be completed in the second quarter of 2022.

53

Management considers the current level of the ACL to be appropriate to cover estimated lifetime losses within our LHFI portfolio. The following table presents the ACL by product type:

	At March 31, 2022				At December 31, 2021
(in thousands)	Amount		Rate (1)		Amount		Rate (1)
CRE
Non-owner occupied CRE	$	2,294	0.33	%	$	7,509	1.06	%
Multifamily	8,427		0.31	%	5,854		0.24	%
Construction/land development
Multifamily construction	456		1.24	%	507		1.34	%
CRE construction	184		1.02	%	150		1.06	%
Single family construction	7,735		2.42	%	6,411		2.16	%
Single family construction to permanent	990		0.64	%	1,055		0.71	%
Total	20,086		0.51	%	21,486		0.59	%
Commercial and industrial loans
Owner occupied CRE	3,536		0.76	%	5,006		1.10	%
Commercial business	6,910		1.83	%	12,273		3.39	%
Total	10,446		1.24	%	17,279		2.11	%
Consumer loans
Single family	3,762		0.58	%	4,394		0.68	%
Home equity and other	3,650		1.24	%	3,964		1.31	%
Total	7,412		0.78	%	8,358		0.88	%
Total ACL	$	37,944	0.66	%	$	47,123	0.88	%

(1) The ACL rate is calculated excluding balances related to loans that are insured by the FHA or guaranteed by the VA or SBA.

Liquidity and Sources of Funds

Liquidity risk management is primarily intended to ensure we are able to maintain sources of cash to adequately fund operations and meet our obligations, including demands from depositors, draws on lines of credit and paying any creditors, on a timely and cost-effective basis, in various market conditions. Our liquidity profile is influenced by changes in market conditions, the composition of the balance sheet and risk tolerance levels. The Company has established liquidity guidelines and operating plans that detail the sources and uses of cash and liquidity.

The Company's primary sources of liquidity include deposits, loan payments and investment securities payments, both principal and interest, borrowings, and proceeds from the sale of loans and investment securities. Borrowings include advances from the FHLB, federal funds purchased and borrowing from other financial institutions. Additionally, the Company may sell stock or issue long-term debt to raise funds. While scheduled principal repayments on loans and investment securities are a relatively predictable source of funds, deposit inflows and outflows and prepayments of loans and investment securities are greatly influenced by interest rates, economic conditions and competition.

The Company’s contractual cash flow obligations include the maturity of certificates of deposit, short-term and long-term borrowings, interest on certificates of deposit and borrowings, operating leases and fees for information technology related services and professional services. Obligations for certificates of deposit and short-term borrowings are typically satisfied through the renewal of these instruments or the generation of new deposits or use of available short-term borrowings. Interest payments and obligations related to leases and services are typically met by cash generated from our operations. The Company has $64 million of Senior Notes which mature in 2026 which it expects to pay off from available cash or from the issuance of new debt.

At March 31, 2022 and December 31, 2021, the Bank had available borrowing capacity of $1.8 billion and $1.8 billion, respectively, from the FHLB, and $308 million and $274 million, respectively, from the FRBSF and $1.0 billion and $1.0 billion under borrowing lines established with other financial institutions.

54

Cash Flows

For the quarter ended March 31, 2022, cash and cash equivalents increased by $9 million compared to an increase of $11 million during the quarter ended March 31, 2021. As excess liquidity can reduce the Company’s earnings and returns, the Company manages its cash positions to minimize the level of excess liquidity and does not attempt to maximize the level of cash and cash equivalents. The following discussion highlights the major activities and transactions that affected our cash flows during these periods.

Cash flows from operating activities

The Company's operating assets and liabilities are used to support our lending activities, including the origination and sale of mortgage loans. For the quarter ended March 31, 2022, net cash of $124 million was provided by operating activities, primarily from cash proceeds from the sale of loans exceeding cash used to fund LHFS. For the quarter ended March 31, 2021, net cash of $2 million was used in operating activities, primarily from cash used to fund LHFS production exceeding cash proceeds from the sale of loans. We believe that cash flows from operations, available cash balances and our ability to generate cash through short-term debt borrowings are sufficient to fund our operating liquidity needs. We are currently not aware of any trends or demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyond the next 12 months.

Cash flows from investing activities

The Company's investing activities primarily include AFS investment securities and loans originated as held for investment. For the quarter ended March 31, 2022, net cash of $464 million was used in investing activities primarily from the origination of LHFI net of principal repayments and the purchase of AFS investment securities. For the quarter ended March 31, 2021, net cash of $28 million was used in investing activities for the origination of LHFI and the purchase of AFS investment securities, which were partially offset by principal payments and the proceeds from the sale of loans originated as LHFI and AFS investment securities.

Cash flows from financing activities

The Company's financing activities are primarily related to deposits and net proceeds from borrowings. For the quarter ended March 31, 2022, net cash of $349 million was provided by financing activities, primarily due to growth in deposits and an increase in short-term borrowings and proceeds from the issuance of the subordinated notes, partially offset by repurchases of and dividends paid on our common stock. For the quarter ended March 31, 2021, net cash of $41 million was provided by financing activities, primarily due to growth in deposits, which was partially offset by net repayment of short-term borrowings, repurchases of and dividends paid on our common stock.

Off-Balance Sheet Arrangements

In the normal course of business, we are a party to financial instruments that carry off-balance sheet risk. These financial instruments (which include commitments to originate loans and commitments to purchase loans) include potential credit risk in excess of the amount recognized in the accompanying consolidated financial statements. These transactions are designed to (1) meet the financial needs of our customers, (2) manage our credit, market or liquidity risks, (3) diversify our funding sources and/or (4) optimize capital.

These commitments include the following:

(in thousands)	At March 31, 2022		At December 31, 2021
Unused consumer portfolio lines	$	433,656	$	405,992
Commercial portfolio lines (1)	807,658		820,131
Commitments to fund loans	99,648		90,852
Total	$	1,340,962	$	1,316,975

(1) Within the commercial portfolio, undistributed construction loan proceeds, where the Company has an obligation to advance funds for construction

progress payments, were $554 million and $584 million at March 31, 2022 and December 31, 2021, respectively.

55

Capital Resources and Dividend Policy

The capital rules applicable to United States based bank holding companies and federally insured depository institutions (“Capital Rules”) require the Company (on a consolidated basis) and the Bank (on a stand-alone basis) to meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. In addition, prompt corrective action regulations place a federally insured depository institution, such as the Bank, into one of five capital categories on the basis of its capital ratios: (i) well capitalized; (ii) adequately capitalized; (iii) undercapitalized; (iv) significantly undercapitalized; or (v) critically undercapitalized. A depository institution’s primary federal regulatory agency may determine that, based on certain qualitative assessments, the depository institution should be assigned to a lower capital category than the one indicated by its capital ratios. At each successive lower capital category, a depository institution is subject to greater operating restrictions and increased regulatory supervision by its federal bank regulatory agency.

The following table sets forth the capital and capital ratios of HomeStreet Inc. (on a consolidated basis) and HomeStreet Bank as compared to the respective regulatory requirements applicable to them:

	At March 31, 2022
	Actual				For Minimum Capital Adequacy Purposes				To Be Categorized As "Well Capitalized"
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
HomeStreet, Inc.
Tier 1 leverage capital (to average assets)	$	661,438	8.99	%	$	294,206	4.0	%	NA		NA
Common equity Tier 1 capital (to risk-weighted assets)	601,438		9.48	%	285,432		4.5	%	NA		NA
Tier 1 risk-based capital (to risk-weighted assets)	661,438		10.43	%	380,576		6.0	%	NA		NA
Total risk-based capital (to risk-weighted assets)	802,274		12.65	%	507,434		8.0	%	NA		NA
HomeStreet Bank
Tier 1 leverage capital (to average assets)	$	744,371	10.30	%	$	289,021	4.0	%	$	361,276	5.0	%
Common equity Tier 1 capital (to risk-weighted assets)	744,371		12.52	%	267,492		4.5	%	386,378		6.5	%
Tier 1 risk-based capital (to risk-weighted assets)	744,371		12.52	%	356,657		6.0	%	475,542		8.0	%
Total risk-based capital (to risk-weighted assets)	786,711		13.23	%	475,542		8.0	%	594,428		10.0	%

	At December 31, 2021
	Actual				For Minimum Capital Adequacy Purposes				To Be Categorized As "Well Capitalized"
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
HomeStreet, Inc.
Tier 1 leverage capital (to average assets)	$	723,232	9.94	%	$	291,098	4.0	%	NA		NA
Common equity Tier 1 capital (to risk-weighted assets)	663,232		10.84	%	275,281		4.5	%	NA		NA
Tier 1 risk-based capital (to risk-weighted assets)	723,232		11.82	%	367,041		6.0	%	NA		NA
Total risk-based capital (to risk-weighted assets)	774,695		12.66	%	489,388		8.0	%	NA		NA
HomeStreet Bank
Tier 1 leverage capital (to average assets)	$	727,753	10.11	%	$	287,990	4.0	%	$	359,988	5.0	%
Common equity Tier 1 capital (to risk-weighted assets)	727,753		12.87	%	254,442		4.5	%	367,527		6.5	%
Tier 1 risk-based capital (to risk-weighted assets)	727,753		12.87	%	339,256		6.0	%	452,341		8.0	%
Total risk-based capital (to risk-weighted assets)	778,723		13.77	%	452,341		8.0	%	565,426		10.0	%

56

As of each of the dates set forth in the above table, the Company exceeded the minimum required capital ratios applicable to it and the Bank’s capital ratios exceeded the minimums necessary to qualify as a well-capitalized depository institution under the prompt corrective action regulations. In addition to the minimum capital ratios, both HomeStreet Inc. and HomeStreet Bank are required to maintain a capital conservation buffer consisting of additional Common Equity Tier 1 Capital of more than 2.5% above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. The required ratios for capital adequacy set forth in the above table do not include the Capital Rules’ additional capital conservation buffer, though each of the Company and Bank maintained capital ratios necessary to satisfy the capital conservation buffer requirements as of the dates indicated. At March 31, 2022, capital conservation buffers for the Company and the Bank were 4.43% and 5.23%, respectively.

The Company paid a quarterly cash dividend of $0.35 per common share in the first quarter of 2022. It is our current intention to continue to pay quarterly dividends, and on April 28, 2022 we declared another cash dividend of $0.35 per common share payable on May 24, 2022 to shareholders of record as of the close of business on May 10, 2022. The amount and declaration of future cash dividends are subject to approval by our Board of Directors and certain regulatory restrictions.

We had no material commitments for capital expenditures as of March 31, 2022. However, we intend to take advantage of opportunities that may arise in the future to grow our businesses, which may include opening additional offices or acquiring complementary businesses that we believe will provide us with attractive risk-adjusted returns. As a result, we may seek to obtain additional borrowings and to sell additional shares of our common stock to raise funds which we might need for these purposes. There is no assurance, however, that, if required, we will succeed in obtaining additional borrowings or selling additional shares of our common stock on terms that are acceptable to us, if at all, as this will depend on market conditions and other factors outside of our control, as well as our future results of operations.

57

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP measures of financial performance. In this Quarterly Report on Form 10-Q, we use the following non-GAAP measures: (i) tangible common equity and tangible assets as we believe this information is consistent with the treatment by bank regulatory agencies, which excluded intangible assets from the calculation of capital ratios; and (ii) an efficiency ratio which is the ratio of noninterest expenses to the sum of net interest income and noninterest income, excluding certain items of income or expense and excluding taxes incurred and payable to the state of Washington as such taxes are not classified as income taxes and we believe including them in noninterest expenses impacts the comparability of our results to those companies whose operations are in states where assessed taxes on business are classified as income taxes.

These supplemental performance measures may vary from, and may not be comparable to, similarly titled measures provided by other companies in our industry. Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. A non-GAAP financial measure may also be a financial metric that is not required by GAAP or other applicable requirements.

We believe that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding our performance by providing additional information used by management that is not otherwise required by GAAP or other applicable requirements. Our management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing our operating results and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate a comparison of our performance to prior periods. We believe these measures are frequently used by securities analysts, investors and other parties in the evaluation of companies in our industry. Rather, these non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP. In the information below, we have provided reconciliations of, where applicable, the most comparable GAAP financial measures to the non-GAAP measures used in this Quarterly Report on Form 10-Q, or a reconciliation of the non-GAAP calculation of the financial measure.

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures:

58

	For the quarter ended
(in thousands)	March 31, 2022			December 31, 2021			March 31, 2021
Return on average tangible equity (annualized)
Average shareholders' equity	$	698,598		$	726,014		$	731,719
Less: Average goodwill and other intangibles	(31,624)			(31,901)			(32,777)
Average tangible equity	$	666,974		$	694,113		$	698,942
Net income	$	19,951		$	29,432		$	29,663
Adjustments (tax effected)
Amortization on core deposit intangibles	191			229			236
Tangible income applicable to shareholders	$	20,142		$	29,661		$	29,899
Ratio	12.2		%	17.0		%	17.3		%
Efficiency ratio
Noninterest expense
Total	$	54,473		$	53,971		$	56,608
Adjustments:
State of Washington taxes	(506)			(664)			(579)
Adjusted total	$	53,967		$	53,307		$	56,029
Total revenues
Net interest income	$	54,546		$	57,084		$	54,517
Noninterest income	15,558			28,620			38,833
Total	$	70,104		$	85,704		$	93,350
Ratio	77.0		%	62.2		%	60.0		%
Effective tax rate used in computations above	22.0		%	22.0		%	19.3		%

	As of
(in thousands, except share data)	March 31, 2022			December 31, 2021
Tangible book value per share
Shareholders' equity	$	601,231		$	715,339
Less: goodwill and other intangibles	(31,464)			(31,709)
Tangible shareholder's equity	$	569,767		$	683,630
Common shares outstanding	18,700,536			20,085,336
Computed amount	$	30.47		$	34.04
Tangible common equity to tangible assets
Tangible shareholder's equity (per above)	$	569,767		$	683,630
Tangible assets
Total assets	7,510,894			7,204,091
Less: Goodwill and other intangibles	(31,464)			(31,709)
Net	$	7,479,430		$	7,172,382
Ratio	7.6		%	9.5		%

59

ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Management

Market risk is defined as the sensitivity of income, fair value measurements and capital to changes in interest rates, foreign currency exchange rates, commodity prices and other relevant market rates or prices. The primary market risks that we are exposed to are price and interest rate risks. Price risk is defined as the risk to current or anticipated earnings or capital arising from changes in the value of either assets or liabilities that are entered into as part of distributing or managing risk. Interest rate risk is defined as risk to current or anticipated earnings or capital arising from movements in interest rates.

For the Company, price and interest rate risks arise from the financial instruments and positions we hold. This includes loans, MSRs, investment securities, deposits, borrowings, long-term debt and derivative financial instruments. Due to the nature of our current operations, we are not subject to foreign currency exchange or commodity price risk. Our real estate loan portfolio is subject to risks associated with the local economies of our various markets, in particular, the regional economy of the western United States, including Hawaii.

The spread between the yield on interest-earning assets and the cost of interest-bearing liabilities and the relative dollar amounts of these assets and liabilities are the principal items affecting net interest income. Changes in net interest rates (interest rate risk) are influenced to a significant degree by the repricing characteristics of assets and liabilities (timing risk), the relationship between various rates (basis risk), customer options (option risk) and changes in the shape of the yield curve (time-sensitive risk). We manage the available-for-sale investment securities portfolio while maintaining a balance between risk and return. The Company's funding strategy is to grow core deposits while we efficiently supplement using wholesale borrowings.

We estimate the sensitivity of our net interest income to changes in market interest rates using an interest rate simulation model that includes assumptions related to the level of balance sheet growth, deposit repricing characteristics and the rate of prepayments for multiple interest rate change scenarios. Interest rate sensitivity depends on certain repricing characteristics in our interest-earnings assets and interest-bearing liabilities, including the maturity structure of assets and liabilities and their repricing characteristics during the periods of changes in market interest rates. Effective interest rate risk management seeks to ensure both assets and liabilities respond to changes in interest rates within an acceptable timeframe, minimizing the impact of interest rate changes on net interest income and capital. Interest rate sensitivity is measured as the difference between the volume of assets and liabilities, at a point in time, that are subject to repricing at various time horizons, known as interest rate sensitivity gaps.

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The following table presents sensitivity gaps for these different intervals:

	At March 31, 2022
(in thousands)	3 Mos. or Less			More Than 3 Mos. to 6 Mos.			More Than 6 Mos. to 12 Mos.			More Than 12 Mos. to 3 Yrs.			More Than 3 Yrs. to 5 Yrs.			More Than 5 to 15 Yrs.			More Than 15 Yrs.			Non-Rate- Sensitive		Total
Interest-earning assets:
Cash & cash equivalents	$	73,862		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	73,862
FHLB Stock	11,005			—			—			—			—			—			8,591			—		19,596
Investment securities (1)	116,067			24,487			30,364			123,751			133,930			510,943			144,098			—		1,083,640
LHFS	59,150			—			—			—			—			—			—			—		59,150
LHFI (1)	1,325,911			327,103			463,940			1,185,171			1,368,055			1,170,363			23,947			—		5,864,490
Total	1,585,995			351,590			494,304			1,308,922			1,501,985			1,681,306			176,636			—		7,100,738
Non-interest-earning assets	—			—			—			—			—			—			—			410,156		410,156
Total assets	$	1,585,995		$	351,590		$	494,304		$	1,308,922		$	1,501,985		$	1,681,306		$	176,636		$	410,156	$	7,510,894
Interest-bearing liabilities:
Demand deposit accounts (2)	$	591,148		$	—		$	—		$	—		$	—		$	—		$	—		$	—	$	591,148
Savings accounts (2)	309,462			—			—			—			—			—			—			—		309,462
Money market accounts (2)	2,800,215			—			—			—			—			—			—			—		2,800,215
Certificates of deposit	199,264			246,848			315,476			149,742			4,151			—			—			—		915,481
FHLB advances	273,000			—			—			—			—			—			—			—		273,000
Long-term debt (3)	61,073			—			—			—			163,064			—			—			—		224,137
Total	4,234,162			246,848			315,476			149,742			167,215			—			—			—		5,113,443
Non-interest bearing liabilities	—			—			—			—			—			—			—			1,796,220		1,796,220
Shareholders' Equity	—			—			—			—			—			—			—			601,231		601,231
Total liabilities and shareholders' equity	$	4,234,162		$	246,848		$	315,476		$	149,742		$	167,215		$	—		$	—		$	2,397,451	$	7,510,894
Interest sensitivity gap	$	(2,648,167)		$	104,742		$	178,828		$	1,159,180		$	1,334,770		$	1,681,306		$	176,636
Cumulative interest sensitivity gap
Total	$	(2,648,167)		$	(2,543,425)		$	(2,364,597)		$	(1,205,417)		$	129,353		$	1,810,659		$	1,987,295
As a % of total assets	(35)		%	(34)		%	(31)		%	(16)		%	2		%	24		%	26		%
As a % of cumulative interest-bearing liabilities	37		%	43		%	51		%	76		%	103		%	135		%	139		%

(1)Based on contractual maturities, repricing dates and forecasted principal payments assuming normal amortization and, where applicable, prepayments.

(2)Assumes 100% of interest-bearing non-maturity deposits are subject to repricing in three months or less.

(3)Based on contractual maturity.

As of March 31, 2022, the Company is considered liability-sensitive as exhibited by the gap table but our net interest income sensitivity analysis shows positive results in the increasing interest rate scenarios. This is because of the impact of our historical deposit repricing betas which result in an assumed delay in repricing of deposits in an increasing interest rate scenario and a lower magnitude of repricing compared to the repricing of loans and other interest-earning assets. Net interest income would be expected to rise in the long term if interest rates were to rise due to the Bank’s cumulative asset-sensitive position.

Changes in the mix of interest-earning assets or interest-bearing liabilities can either increase or decrease the net interest margin, without affecting interest rate sensitivity. In addition, the interest rate spread between an earning asset and its funding liability can vary significantly, while the timing of repricing for both the asset and the liability remains the same, thereby impacting net interest income. This characteristic is referred to as basis risk. Varying interest rate environments can create unexpected changes in

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prepayment levels of assets and liabilities that are not reflected in the interest rate sensitivity analysis. These prepayments may have a significant impact on our net interest margin. Because of these factors, an interest sensitivity gap analysis may not provide an accurate assessment of our actual exposure to changes in interest rates.

The estimated impact on our net interest income over a time horizon of one year and the change in net portfolio value as of March 31, 2022 and December 31, 2021 are provided in the table below. For the scenarios shown, the interest rate simulation assumes an instantaneous and sustained shift in market interest rates and no change in the composition or size of the balance sheet.

	At March 31, 2022				At December 31, 2021
Change in Interest Rates (basis points) (1)	Percentage Change
	Net Interest Income (2)		Net Portfolio Value (3)		Net Interest Income (2)		Net Portfolio Value (3)
+200	5.9	%	(14.9)	%	7.8	%	(5.0)	%
+100	2.9	%	(7.7)	%	3.5	%	(2.8)	%
-100	(0.3)	%	5.8	%	(1.3)	%	1.9	%
-200	0.4	%	9.1	%	(2.5)	%	(4.9)	%

(1)For purposes of our model, we assume interest rates will not go below zero. This "floor" limits the effect of a potential negative interest rate shock in a low rate environment like the one we are currently experiencing.

(2)This percentage change represents the impact to net interest income for a one-year period, assuming there is no change in the structure of the balance sheet.

(3)This percentage change represents the impact to the net present value of equity, assuming there is no change in the structure of the balance sheet.

At March 31, 2022, we believe our net interest income sensitivity did not exhibit a strong bias to either an increase in interest rates or a decline in interest rates. The changes in interest rate sensitivity between December 31, 2021 and March 31, 2022 reflected the impact of higher market interest rates, a flatter yield curve and changes to overall balance sheet composition. Some of the assumptions made in the simulation model may not materialize and unanticipated events and circumstances will occur. We do not allow for negative rate assumptions in our model, but actual results in extreme interest rate decline scenarios may result in negative rate assumptions which may cause the modeling results to be inherently unreliable. In addition, the simulation model does not take into account any future actions that we could undertake to mitigate an adverse impact due to changes in interest rates from those expected, in the actual level of market interest rates or competitive influences on our deposits.

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ITEM 4CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company carried out an evaluation, with the participation of our management and under the supervision of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined under Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2022.

Changes in Internal Control over Financial Reporting

As required by Rule 13a-15(d), our management, including our Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of our internal control over financial reporting to determine whether any changes occurred during the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

There were no changes to our internal control over financial reporting that occurred during the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1LEGAL PROCEEDINGS

Because the nature of our business involves, among other things, the collection of numerous accounts, the validity of liens and compliance with various state and federal laws, we are subject to various legal proceedings in the ordinary course of our business related to foreclosures, bankruptcies, condemnation and quiet title actions and alleged statutory and regulatory violations. We are also subject to legal proceedings in the ordinary course of business related to employment and other consumer matters. We do not expect that these proceedings, taken as a whole, will have a material adverse effect on our business, financial position or our results of operations. There are currently no matters that, in the opinion of management, would have a material adverse effect on our consolidated balance sheet, results of operation or liquidity, or for which there would be a reasonable possibility of such a loss based on information known at this time.

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ITEM 1ARISK FACTORS

Refer to Item 1A of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for a discussion of factors that could materially and adversely affect our business, financial condition, liquidity, results of operations and capital position.

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ITEM 2UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchases of Equity Securities by the Issuer

Shares repurchased, on a settlement-date basis, pursuant to the common equity repurchase program during the quarter ended March 31, 2022 were as follows:

(in thousands, except share and per share information)	Total shares of common stock purchased	Average price paid per share of common stock		Dollar value of remaining authorized repurchase
January	—	$	—	$	75,000
February	779,500	51.03		35,221
March	691,985	50.90		—
Total	1,471,485	$	50.97

(1) Stock repurchases in February and March were made pursuant to a Board authorized share repurchase program approved on January 27, 2022 pursuant to which the Company could purchase up to $75 million of its issued and outstanding common stock, no par value, at prevailing market rates at the time of such purchase.

Sales of Unregistered Securities

There were no sales of unregistered securities during the first quarter of 2022.

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ITEM 3DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5OTHER INFORMATION

Not applicable.

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ITEM 6EXHIBITS

EXHIBIT INDEX

Exhibit Number	Description
4.1	Indenture, dated as of January 19, 2022, between HomeStreet, Inc. and Computershare Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed on January 19, 2022).
4.2	First Supplemental Indenture, dated as of January 19, 2022, between HomeStreet, Inc. and Computershare Trust Company, N.A., as Trustee (including the form of Note attached as an exhibit thereto) (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed on January 19, 2022).
4.3	Form of 3.50% Fixed-to-Floating Rate Subordinated Note due 2032 (included in Exhibit 4.2) (incorporated by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K filed on January 19, 2022).
10.1†	HomeStreet Bank 2022 Performance-Based Award Incentive Compensation Plan
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32 (1)	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.
101 INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Label Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Definitions Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

(1) This exhibit shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

† Management contract or compensation plan or arrangement.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Seattle, State of Washington, on May 6, 2022.

HomeStreet, Inc.
By:	/s/ Mark K. Mason
	Mark K. Mason
	President and Chief Executive Officer
	(Principal Executive Officer)

HomeStreet, Inc.
By:	/s/ John M. Michel
	John M. Michel
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

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EX-10.1

HOMESTREET BANK

CORPORATE OPERATIONS ANNUAL PERFORMANCE-BASED

Master Incentive Compensation Plan

Annual Incentive Plan (AIP)

Effective as of: January 1, 2022

HomeStreet Bank (the “Company”) provides incentive opportunities for eligible employees through the use of a Performance-Based Annual Incentive Plan compensation plan (the “Plan”). This Plan will provide an incentive award based upon attainment of specified Corporate and Plan Participant annual goals that are aligned to support the interests of the Company and to encourage ongoing employment with the Company. The Plan will be administered in a manner that is consistent with all applicable laws and regulations and in accordance with Company policies and standards.

PARTICIPATION AND ELIGIBILITY

Participation in the Plan is limited to HomeStreet employees (“Plan Participant”) who have been notified in writing by the Company that this Plan is part of their compensation, beginning on the Effective Date set forth in the written notification. Any subsequent revisions or addenda to the Plan shall be in writing and signed by the Company and the Plan Participant (a “Successor Document”) and shall be effective on the date stated therein. Additional eligibility requirements include the following:

•New employees must be employed before October 1 in a given Plan Year to be eligible to receive an incentive award related to performance in the Plan Year.

•Employees hired after September 30 will be eligible to participate in the Plan at the beginning of the next fiscal year (January 1).

•Employees who are ineligible to participate in the Plan and change positions during the year and become eligible to participate due to a change in position will receive an incentive award based on the Plan Participant’s wages earned during the year for the portion of the year for which they are eligible to participate.

•This document shall remain in effect for each Plan Participant until one of the following events occurs: termination of employment for any reason, the effective date of a Successor Document, Termination of the Plan, or the first day of the month following a change to a job status or position not eligible to participate in the Plan.

PLAN YEAR & PERFORMANCE PERIOD

The Plan operates on a calendar year (“Plan Year”), from January 1 through December 31, which is the same as the Performance Period. Incentive award payments covering the Performance Period will generally be made after Company financials have been audited and incentive award amounts have been reviewed by the Human Resource and Corporate Governance Committee (HRCG) of the Board of Directors. Incentive payments are made in accordance with state and federal law, and will typically be paid by the end of the first quarter of the calendar year following the end of the Plan Year.

PLAN DESIGN

The Plan design and incentive payment is based on Participant’s annual wage, Participant’s Target (stated as a percentage of annual eligible base wages), an Individual Performance component, plus either a Corporate Performance component or a Business Unit Performance component. 100% of the calculated bonus opportunity is balanced between Individual Performance and either Corporate or Business Unit Performance. After a Performance Plan Year, eligible base wages are multiplied by a Plan Participant’s Target to identify the Plan Year’s calculated bonus opportunity. Either of these components may be adjusted up or down based on the Company’s Performance, and the amount of incentive paid is determined at the sole and absolute discretion of the Company. Corporate Performance is a function of corporate performance criteria (see Exhibit 1) established each year by HRCG and Business Unit Performance is a function of each relevant Business Unit’s performance measured against that Business Unit’s goals for the Plan Year. All compensation to Plan Participants is subject to all required withholdings and deductions, including but not limited to, federal and state tax withholding, FICA, and Employee contributions to benefits.

EARNING INCENTIVE PAYMENTS

To fully earn any incentive payment, all of the following conditions must be met:

•Plan participants must not be on a Performance Improvement Plan at the time the incentive award is to be paid in order to earn an incentive award; otherwise, the incentive award will be neither earned nor paid.

•Plan Participant must be an active employee as of date of incentive award payments (See “Termination of Employment and Leaves of Absence” section for exceptions).

•If the Plan Participant’s conduct during the Plan Year or before incentive amount is paid is considered by the Company to be a violation of applicable laws or regulations, Plan Participant’s offer letter, department policies and standards or in violation of the Company’s professional or ethical standards as stated in the Company’s Code of Conduct, which may be found on the Company’s intranet site or with Human Resources, the Plan Participant will not be eligible to earn incentive pay under the Plan and will not receive incentive pay.

•The Plan Participant must be in full compliance with Company’s offer letter,

•All Reconciliation Adjustments and potential Reconciliation adjustments have been made, in accordance with the Plan.

•Any audit or examination of the Plan did not result in a determination that the Plan cannot be paid.

RECONCILIATION PROVISIONS FOR INCENTIVE ADJUSTMENTS

Reconciliation Adjustments may be made to amounts paid under the Plan under the following guidelines, to the fullest extent permitted under the Plan, and applicable laws and regulations. Incentive awards may be reduced or eliminated based on the following circumstances:

•Material loss or inaccurate financial information was used in determining or setting such incentive award.

•Participant’s activities posed imprudent risk to the Company.

•Plan Participant did not meet some or all of his/her annual performance goals.

For Plan Participants who are officers classified as Executive Vice President and above, the HRCG of the Board of Directors may reduce or eliminate an incentive award based on inaccurate information or the amount of loss resulting from the imprudent risk presented by the participant’s activities.

For Plan participants classified as Senior Vice President and below, the Chief Executive Officer or Business Unit Leader in coordination with Human Resources may reduce or eliminate an incentive award based on inaccurate information or the amount of loss resulting from the imprudent risk presented by the participant’s activities.

The reconciliation period will be based on a rolling three year look back. In other words, if at any time in the preceding three years, inaccurate information was used or participant’s activities posed imprudent risk to the Company, the Company may consider the incentive awards that should not have been paid in determining the amount of any current or future incentive awards.

CODE OF CONDUCT

Plan Participants must adhere to the terms of the Company’s offer letter, the Company’s Employee Code of Conduct, as well as all other Company, and where relevant, Single Family Lending department, policies and standards. The Company’s Employee Code of Business Conduct & Ethics Policy addresses, among other things, responsibilities for safeguarding confidential customer and bank information, ensuring the accuracy and integrity of all documents, providing strong internal controls over assets, exhibiting candor in dealing with auditors, examiners, and legal counsel, avoiding self-dealing and improper acceptance of gifts or favors, as well as conduct related specifically to department activities.

TERMINATION OF EMPLOYMENT AND LEAVES OF ABSENCE

A participant must be an active employee of the Company on the date the incentive award is paid. Active employee includes employees actively working as well as active and employees on an approved leave of absence.

In the event the Plan Participant is on a leave of absence as an active employee, the Company will pay to the Plan Participant the applicable incentive pay or compensation through the date of their effective date of leave of absence. The incentive will be paid at the same time as it is paid to other Plan Participants (typically by the end of the first quarter of the calendar year following the end of the Plan Year). All other Plan Participants are subject to the Participation and Eligibility rules as defined by this Plan.

DISPUTES

In the event that there is any dispute about the application of the Plan, the Plan participant should discuss such dispute with the Chief Executive Officer and the Director of Human Resources in order to resolve the matter. The Company maintains the discretion to interpret and implement the Plan in its sole and absolute discretion.

ARBITRATION

Plan Participants agree to arbitrate disputes related to the Plan in accordance with any separately or previously signed agreements to arbitrate employment disputes. Prior agreements to arbitrate employment disputes survive termination of prior Plan documents.

MISCELLANEOUS

Benefits under this Plan cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

The Plan and all rights hereunder shall be governed by the laws of the State in which you regularly perform services for the Company, except to the extent preempted by federal law.

If any provision of this Plan is determined to be void or otherwise unenforceable, such determination shall not affect the validity of the remainder of this Plan. Waiver by either party of any breach of this Plan shall not operate or be construed as a waiver of any subsequent breach, or of the condition itself.

This Plan constitutes the entire Plan between the Company and the Plan Participant as to the subject matter hereof. No rights are granted to the Plan Participant by virtue of this Plan other than those specifically set forth herein.

This Plan replaces and supersedes any prior agreements or oral representations between the Plan Participant and the Company or any agent or employee of the Company concerning incentive-based compensation, except for any previously or subsequently signed agreement or portion of any agreement requiring the arbitration of employment disputes. The Plan may be amended, terminated, or suspended at any time upon written notice in the sole and absolute discretion of the Company, except with regard to Incentive Compensation that has been fully earned by the Plan Participant at the time of the notice.Notwithstanding any other documents or communications to the contrary, employment with the Company is terminable at will, meaning that either the employee or the Company may terminate employment at any time, for any reason, with or without cause and with or without prior notice.

PLAN DETAILED ADDENDUM (“PDA”)

The following information serves to define the calculations for any Annual Incentive Plan Participant with an assigned Target in their written PDA.

This PDA also defines the method to bring together all of the compensation Components listed below to arrive at a PDA Subtotal, which serves as the first component of the Annual Payment calculation for the Plan Participant.

INCENTIVE PAYMENT COMPENSATION KEY DEFINITIONS

•Participant Target Incentive - A Plan Participant’s assigned annual incentive percentage multiplied by Participant’s annual base salary payable upon completion of agreed upon goals.

•SMART Goals - Specific, Measurable, Agreed Upon, Realistic, and Time-Bound.

Calculation Method:

Plan Participant will receive (1) Base Compensation, and (2) Annual Performance-Based Incentive. Base Compensation will be paid with each bi-weekly payroll period and any Performance-Based Incentives will be paid annually. Both components will be paid in accordance with the Company’s regular payroll practices and applicable laws.

COMPENSATION COMPONENT #1-BASE COMPENSATION

•Concept: Plan Participants will receive Base Compensation paid each bi-weekly payroll period and will serve as the basis for the Incentive Payment Amount as part of the PDA calculation. Base Compensation is defined as actual amounts paid excluding bonus, commissions or any other incentive payments.

COMPENSATION COMPONENT #2- ANNUAL PERFORMANCE-BASED INCENTIVE

•Concept:

▪Performance-based payout designed to reward Plan Participants for supporting the Company in achieving its annual performance goals.

▪Personal performance measured by the SMART performance goals established during the plan performance year.

▪The corporate performance criteria are generally established at the beginning of each calendar year and are reviewed annually and approved by HRCG.

▪Final corporate achievement is dependent upon Company performance subject to the successful audit of year end financials.

•Incentive Payments: Calculated and generally paid by the end of the first quarter of the calendar year following the end of the Plan Year in accordance with the Company’s payroll policies, applicable laws and internal and external reviews and approvals.

•Calculation Method:

The establishment of Annual Incentive awards for the performance year are as follows:

◦Step 1 Determine Corporate Annual Performance Achievement - During the first quarter, following the Performance Plan Year, the Finance Department determines the Company’s goal achievement by comparing the Company’s financial results to corporate performance criteria set for that performance year. The weighting of the Company’s results for the incentive calculation is 50% for any employee whose plan contains the Corporate component with the exception of the CEO and CFO whose percentage is currently set at 80% though may be changed from time to time by determination of the Board of Directors. Corporate performance can be funded between 0% and 150% depending upon annual results. Once determined, the performance award will be presented to HRCG for approval. The Corporate component is awarded to participants based on Corporate performance and is not adjusted by individual managers.

◦Step 2 Determine Business Unit Annual Performance Achievement - During the first quarter, following the Performance Plan Year, each business unit determines their percentage goal achievement by comparing business results against pre-established goals. The weighting of the business unit results for the incentive calculation is 50% for any employee whose plan contains the Business Unit component unless exception is made for any Executive from time to time by determination of the Board of Directors.

◦Step 3 Determine Plan Participant Individual Annual Performance Achievement - HR will update the participant level data into the Annual Incentive Plan calculation tool and will notify managers that the data is available for their review. The tool will include the unalterable Corporate incentive payout amount for each Plan Participant, which is weighted 50% of the total incentive calculation unless the Board of Directors has made any adjustments as described above. In addition, the weighting of the Individual results for the incentive calculation is 50% for any employee whose plan contains the Business Unit component unless exception is made for any Executive from time to time by determination of the Board of Directors, and that amount is alterable and discretionary. The amount of the incentive payments are determined at the sole and absolute discretion of the Company. An example of the calculation for business unit and non-business unit calculation is shown below in Step 4.

◦Step 4 Plan Participant Incentive Calculation - Managers, having input from the Plan Participant’s Individual performance achievement, will recommend an award amount in the Annual Performance-Based Incentive Plan tool and notify HR that the final calculations are available. Human Resources reviews the recommended incentive payouts.

Example Full-Year AIP Incentive Paid at Target
Annual Base Earnings	100,000
AIP Level	10%
Target Incentive	10,000

AIP Calculation	Payout Factor		AIP Level		Weighting		Incentive Factor		Base Earnings		Earned Incentive
Corporate/BU	100%	X	10%	X	50%	=	5.0%	X	100,000	=	5,000
Individual	80%	X	10%	X	50%	=	4.0%	X	100,000	=	4,000
Total Payout											9,000

◦Step 5- Final Approval and Gross Payout- Human Resourcesprepares a final outlay of all incentive payouts, which must then be approved by HRCG before any awards are processed for payment.

HomeStreet Bank

By __________________________________________________ Date: _________________________

ACKNOWLEDGMENT

I have read and do understand and accept all of the terms of this Plan. I have received a copy of this Plan and the exhibits and other documents attached and referred to in this Plan document.

Employee Printed Name        Signature                    Date

Exhibit 1

	Plan Funding Percentage
Corporate Measure	25th Percentile	50th Percentile	75th Percentile	Measure Weighting
Core ROA	50%	100%	150%	20%
Core ROTCE				30%
Efficiency				20%
NPA/TA				10%
Core Deposit Growth				20%

For the plan year 2022, the Corporate Annual Performance Achievement award will be based on actual results compared to the established Peer Group. The percentile achieved is based on comparison to the various percentiles of the Peer Group.

Achievement of a percentile in excess of the 75th percentile will result in an award for that measure of 150%. Achievement of a 50th percentile will result in an award for that measure of 100%. Achievement of a percentile less than the 25th percentile will result in an award for that measure of 0%. The award % for achievements between the 25th percentile and the 75th percentile will be based on an interpolation between the 25th percentile result and the 50th percentile result or the 50th percentile result and the 75th percentile result applied to the related funding percentage.

For 2022, the Peer Group consists of Washington Federal, Inc., First Interstate BancSystem, Inc. , Columbia Banking System, Inc. , Banner Corporation, CVB Financial Corp., Banc of California, Inc., TriCo Bancshares, Luther Burbank Corporation, Heritage Financial Corporation, Central Pacific Financial Corp., National Bank Holdings Corporation, First Foundation Inc. , Heritage Commerce Corp. Note, if the comparability of a peer company is significantly impacted by a merger, the company will be removed from the peer group.

EXHIBIT ACKNOWLEDGMENT

Employee Printed Name        Signature                    Date

EX-31.1

CERTIFICATIONS

EXHIBIT 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mark K. Mason, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 of HomeStreet, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	May 6, 2022	By:	/s/ Mark K. Mason
			Mark K. Mason
			President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John M. Michel, certify that:

1.I have reviewed this Quarterly Report on Form10-Q for the quarter ended March 31, 2022 of HomeStreet, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	May 6, 2022	By:	/s/ John M. Michel
			John M. Michel
			Executive Vice President, Chief Financial Officer (Principal Financial Officer and Accounting Officer)

EX-32.1

EXHIBIT 32

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Mark K. Mason, the Chief Executive Officer of HomeStreet, Inc. (the "Company"), hereby certify, that, to my knowledge:

1.The Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	May 6, 2022	By:	/s/ Mark K. Mason
			Mark K. Mason
			President and Chief Executive Officer

CERTIFICATION OF PRINCIPAL ACCOUNTING OFFICER PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, John M. Michel, the Chief Financial Officer of HomeStreet, Inc. (the "Company"), hereby certify, that, to my knowledge:

1.The Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 (the "Report") of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	May 6, 2022	By:	/s/ John M. Michel
			John M. Michel
			Executive Vice President, Chief Financial Officer (Principal Financial Officer and Accounting Officer)

XML

Cover - shares	3 Months Ended
	Mar. 31, 2022	May 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-35424
Entity Registrant Name	HOMESTREET, INC.
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	91-0186600
Entity Address, Address Line One	601 Union Street
Entity Address, Address Line Two	Suite 2000
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98101
City Area Code	206
Local Phone Number	623-3050
Title of 12(b) Security	Common Stock
Trading Symbol	HMST
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Smaller Reporting Company	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		18,703,586
Entity Central Index Key	0001518715
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 73,862	$ 65,214
Investment securities	1,083,640	1,006,691
Loans held for sale ("LHFS")	59,150	176,131
Loans held for investment ("LHFI") (net of allowance for credit losses of $37,944 and $47,123)	5,826,546	5,495,726
Mortgage servicing rights ("MSRs")	111,657	100,999
Premises and equipment, net	56,269	58,154
Other real estate owned ("OREO")	735	735
Goodwill and other intangible assets	31,464	31,709
Other assets	267,571	268,732
Total assets	7,510,894	7,204,091
Liabilities:
Deposits	6,270,535	6,146,509
Borrowings	273,000	41,000
Long-term debt	224,137	126,026
Accounts payable and other liabilities	141,991	175,217
Total liabilities	6,909,663	6,488,752
Commitments and contingencies
Shareholders' equity:
Common stock, no par value, authorized 160,000,000 shares, issued and outstanding, 18,700,536 shares and 20,085,336 shares	223,718	249,856
Retained earnings	408,442	444,343
Accumulated other comprehensive income (loss)	(30,929)	21,140
Total shareholders' equity	601,231	715,339
Total liabilities and shareholders' equity	$ 7,510,894	$ 7,204,091

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 37,944	$ 47,123
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	160,000,000	160,000,000
Common stock, shares issued (in shares)	18,700,536	20,085,336
Common stock, shares outstanding (in shares)	18,700,536	20,085,336

XML

Consolidated Income Statements - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest income:
Loans	$ 52,954	$ 53,568
Investment securities	5,966	5,951
Cash, Fed Funds and other	108	172
Total interest income	59,028	59,691
Interest expense:
Deposits	2,284	3,650
Borrowings	2,198	1,524
Total interest expense	4,482	5,174
Net interest income	54,546	54,517
Provision for credit losses	(9,000)	0
Net interest income after provision for credit losses	63,546	54,517
Noninterest income:
Net gain on loan origination and sale activities	8,274	33,459
Loan servicing income	3,304	748
Deposit fees	2,075	1,824
Other	1,905	2,802
Total noninterest income	15,558	38,833
Noninterest expense:
Compensation and benefits	32,031	35,835
Information services	7,062	6,784
Occupancy	6,365	6,492
General, administrative and other	9,015	7,497
Total noninterest expense	54,473	56,608
Income before income taxes	24,631	36,742
Income tax expense	4,680	7,079
Net income	$ 19,951	$ 29,663
Net income per share:
Basic (in dollars per share)	$ 1.02	$ 1.37
Diluted (in dollars per share)	$ 1.01	$ 1.35
Weighted average shares outstanding:
Basic (in shares)	19,585,753	21,637,671
Diluted (in shares)	19,791,913	21,961,828

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 19,951	$ 29,663
Other comprehensive income (loss):
Unrealized gain (loss) on investment securities available for sale ("AFS")	(68,187)	(19,681)
Reclassification for net (gains) losses included in income	(71)	0
Other comprehensive income (loss) before tax	(68,258)	(19,681)
Income tax impact of:
Unrealized gain (loss) on investment securities AFS	(16,172)	(4,133)
Reclassification for net (gains) losses included in income	(17)	0
Total	(16,189)	(4,133)
Other comprehensive income (loss)	(52,069)	(15,548)
Total comprehensive income (loss)	$ (32,118)	$ 14,115

XML

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common stock	Retained earnings	Accumulated other comprehensive income (loss)
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2020		21,796,904
Beginning balance at Dec. 31, 2020	$ 717,750	$ 278,505	$ 403,888	$ 35,357
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	29,663		29,663
Share-based compensation expense	810	$ 810
Common stock issued - Option exercise; stock grants (in shares)		188,257
Common stock issued - Option exercise; stock grants	1,849	$ 1,849
Other comprehensive income (loss)	(15,548)			(15,548)
Dividends declared on common stock	(5,534)		(5,534)
Common stock repurchased (in shares)		(624,647)
Common stock repurchased	(27,527)	$ (11,222)	(16,305)
Common stock shares outstanding, ending balance (in shares) at Mar. 31, 2021		21,360,514
Ending balance at Mar. 31, 2021	$ 701,463	$ 269,942	411,712	19,809
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2021	20,085,336	20,085,336
Beginning balance at Dec. 31, 2021	$ 715,339	$ 249,856	444,343	21,140
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,951		19,951
Share-based compensation expense	1,076	$ 1,076
Common stock issued - Option exercise; stock grants (in shares)		104,840
Common stock issued - Option exercise; stock grants	0	$ 0
Other comprehensive income (loss)	(52,069)			(52,069)
Dividends declared on common stock	(7,164)		(7,164)
Common stock repurchased (in shares)		(1,489,640)
Common stock repurchased	$ (75,902)	$ (27,214)	(48,688)
Common stock shares outstanding, ending balance (in shares) at Mar. 31, 2022	18,700,536	18,700,536
Ending balance at Mar. 31, 2022	$ 601,231	$ 223,718	$ 408,442	$ (30,929)

XML

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared on common stock (USD per share)	$ 0.35	$ 0.25

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 19,951	$ 29,663
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses	(9,000)	0
Depreciation and amortization, premises and equipment	2,593	2,408
Amortization of premiums and discounts: securities, deposits, debt	999	1,234
Operating leases: excess of payments over amortization	(1,096)	(990)
Amortization of finance leases	143	269
Amortization of core deposit intangibles	245	294
Amortization of deferred loan fees and costs	(322)	(818)
Share-based compensation expense	1,076	810
Lease impairment costs	0	194
Deferred income tax expense (benefit)	5,363	4,448
Origination of LHFS	(252,102)	(734,572)
Proceeds from sale of LHFS	372,464	719,448
Net fair value adjustment and gain on sale of LHFS	3,348	(12,799)
Origination of MSRs	(5,492)	(11,126)
Net gain on sale of loans originated as LHFI	0	(2,795)
Change in fair value of MSRs	(6,878)	(5,770)
Amortization of servicing rights	1,712	1,344
Net change in trading securities	(19,313)	0
(Increase) decrease in other assets	5,972	11,519
Increase (decrease) in accounts payable and other liabilities	4,226	(4,942)
Net cash provided by (used in) operating activities	123,889	(2,181)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment securities	(161,016)	(49,433)
Proceeds from sale of investment securities	962
Principal payments on investment securities	34,129	55,863
Proceeds from sale of OREO	952
Proceeds from sale of loans originated as LHFI	0	132,694
Net increase in LHFI	(328,288)	(176,655)
Purchase of premises and equipment	(1,444)	(531)
Proceeds from sale of Federal Home Loan Bank stock	16,003	53,880
Purchases of Federal Home Loan Bank stock	(25,238)	(43,412)
Net cash used in investing activities	(463,940)	(27,594)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposits, net	100,973	309,634
Changes in short-term borrowings, net	232,000	(238,300)
Proceeds from debt issuance, net	98,035	0
Repayment of finance lease principal	(145)	(235)
Repurchases of common stock	(75,000)	(25,001)
Proceeds from exercise of stock options	0	263
Dividends paid on common stock	(7,164)	(5,534)
Net cash provided by financing activities	348,699	40,827
Net increase in cash and cash equivalents	8,648	11,052
Cash and cash equivalents, beginning of year	65,214	58,049
Cash and cash equivalents, end of period	73,862	69,101
Cash paid during the period for:
Interest	2,691	4,291
Federal and state income taxes	4	50
Non-cash activities:
Increase in lease assets and lease liabilities	2,053	283
Loans transferred from LHFI to LHFS, net	6,731	130,218
Ginnie Mae loans derecognized with the right to repurchase, net	2,402	19,576
Repurchase of common stock-award shares	$ 902	$ 2,526

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

HomeStreet, Inc., a State of Washington corporation organized in 1921 (the "Corporation"), is a Washington-based diversified financial services holding company whose operations are primarily conducted through its wholly owned subsidiaries (collectively the "Company") HomeStreet Capital Corporation, HomeStreet Statutory Trusts and HomeStreet Bank (the "Bank"), and the Bank's subsidiaries, Continental Escrow Company, HomeStreet Foundation, HS Properties, Inc., HS Evergreen Corporate Center LLC, and Union Street Holdings LLC. The Company is principally engaged in commercial banking, mortgage banking and consumer/retail banking activities serving customers primarily in the Western United States.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company allocates resources and assesses financial performance on a consolidated basis and therefore has one reporting segment. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates. Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation.

These unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report on Form 10-Q. The results of operations in the interim financial statements do not necessarily indicate the results that may be expected for the full year. The interim financial information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission ("2021 Annual Report on Form 10-K").

Recent Accounting Developments

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR rates expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the transition to alternative rates. The ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. These ASUs are not expected to have a material impact on the Company’s financial position or results of operations.

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326). The amendments in this ASU eliminate the accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower experiences financial difficulty. In addition, the amendments require that an entity disclose current period gross charge-offs by year of origination in a vintage table. We prospectively adopted the portion of ASU No. 2022-02 with respect to amendments about TDRs and related disclosure enhancements as of January 1, 2022. This adoption did not have a material impact on the Company’s financial position or results of operations. The Company did not adopt the vintage table disclosure requirements and is in the process of analyzing these disclosures. Because it is only a change in disclosures, we do not expect the vintage table disclosure requirement of ASU 2022-02 to have a material impact on the Company's financial position or results of operations when adopted.

XML

INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

INVESTMENT SECURITIES:

The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and held-to-maturity ("HTM"): 

	At March 31, 2022
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
AFS
Mortgage backed securities ("MBS"):
Residential	$	30,689	$	6	$	(1,508)	$	29,187
Commercial	70,312		38		(3,958)		66,392
Collateralized mortgage obligations ("CMOs"):
Residential	276,246		186		(9,940)		266,492
Commercial	138,168		135		(3,424)		134,879
Municipal bonds	535,353		2,802		(23,016)		515,139
Corporate debt securities	26,850		97		(574)		26,373
U.S. Treasury securities	23,263		—		(1,541)		21,722
Total	$	1,100,881	$	3,264	$	(43,961)	$	1,060,184
HTM
Municipal bonds	$	4,143	$	8	$	(17)	$	4,134

	At December 31, 2021
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
AFS
MBS:
Residential	$	32,905	$	396	$	(338)	$	32,963
Commercial	62,094		933		(235)		62,792
CMOs:
Residential	186,703		2,012		(1,321)		187,394
Commercial	135,102		1,890		(333)		136,659
Municipal bonds	516,693		24,154		(924)		539,923
Corporate debt securities	18,918		699		(1)		19,616
U.S. Treasury securities	23,348		—		(173)		23,175
Total	$	975,763	$	30,084	$	(3,325)	$	1,002,522
HTM
Municipal bonds	$	4,169	$	136	$	—	$	4,305

At March 31, 2022, the Company held $19 million of trading securities, consisting of US Treasury notes used as economic hedges of our mortgage servicing rights, which are carried at fair value and included as investment securities on the balance sheet. Unrealized losses on trading securities, which are included in loan servicing income, were $0.7 million in the quarter ended March 31, 2022.

MBS and CMOs represent securities issued by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by either collateral or revenues from the specific project being financed) issued by various municipal corporations. As of March 31, 2022

and December 31, 2021, all securities held, including municipal bonds and corporate debt securities, were rated investment grade, based upon external ratings where available and, where not available, based upon internal ratings which correspond to ratings as defined by Standard and Poor's Rating Services or Moody's Investors Services.

Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position:

	At March 31, 2022
	Less than 12 months				12 months or more				Total
(in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
AFS
MBS:
Residential	$	(1,064)	$	25,716	$	(444)	$	2,233	$	(1,508)	$	27,949
Commercial	(3,958)		58,243		—		—		(3,958)		58,243
CMOs:
Residential	(7,475)		177,481		(2,465)		21,315		(9,940)		198,796
Commercial	(2,802)		103,919		(622)		7,608		(3,424)		111,527
Municipal bonds	(21,126)		375,801		(1,890)		12,141		(23,016)		387,942
Corporate debt securities	(574)		16,758		—		—		(574)		16,758
U.S. Treasury securities	(1,541)		21,723		—		—		(1,541)		21,723
Total	$	(38,540)	$	779,641	$	(5,421)	$	43,297	$	(43,961)	$	822,938
HTM
Municipal bonds	$	(17)	$	2,474	$	—	$	—	$	(17)	$	2,474

	At December 31, 2021
	Less than 12 months				12 months or more				Total
(in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
MBS:
Residential	$	(38)	$	5,324	$	(300)	$	2,406	$	(338)	$	7,730
Commercial	(235)		18,127		—		—		(235)		18,127
CMOs:
Residential	(1,007)		53,068		(314)		7,116		(1,321)		60,184
Commercial	(135)		14,806		(198)		5,132		(333)		19,938
Municipal bonds	(914)		64,237		(10)		1,058		(924)		65,295
Corporate debt securities	(1)		3,164		—		—		(1)		3,164
U.S. Treasury securities	(173)		23,175		—		—		(173)		23,175
Total	$	(2,503)	$	181,901	$	(822)	$	15,712	$	(3,325)	$	197,613

The Company has evaluated AFS securities that are in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of March 31, 2022 or December 31, 2021. In addition, as of March 31, 2022 and December 31, 2021, the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis.

The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield:

	At March 31, 2022
	Within one year				After one year through five years				After five years through ten years				After ten years				Total
(dollars in thousands)	Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield
AFS
Municipal bonds	$	4,159	3.57	%	$	13,675	3.23	%	$	66,619	3.40	%	$	430,686	3.03	%	$	515,139	3.09	%
Corporate debt securities	—		—	%	5,573		3.54	%	20,800		4.39	%	—		—	%	26,373		4.22	%
U.S. Treasury securities	—		—	%	—		—	%	21,722		1.20	%	—		—	%	21,722		1.20	%
Total	$	4,159	3.57	%	$	19,248	3.32	%	$	109,141	3.13	%	$	430,686	3.03	%	$	563,234	3.07	%
HTM
Municipal bonds	$	1,659	2.91	%	$	2,475	2.07	%	$	—	—	%	$	—	—	%	$	4,134	2.41	%

	At December 31, 2021
	Within one year				After one year through five years				After five years through ten years				After ten years				Total
(dollars in thousands)	Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield
AFS
Municipal bonds	$	4,933	3.79	%	$	14,366	3.26	%	$	68,025	3.60	%	$	452,599	3.23	%	$	539,923	3.28	%
Corporate debt securities	—		—	%	6,563		3.60	%	13,053		5.03	%	—		—	%	19,616		4.55	%
U.S. Treasury securities	—		—	%	—		—	%	23,175		1.27	%	—		—	%	23,175		1.27	%
Total	$	4,933	3.79	%	$	20,929	3.37	%	$	104,253	3.23	%	$	452,599	3.23	%	$	582,714	3.24	%
HTM
Municipal bonds	$	1,684	2.86	%	$	2,621	2.12	%	$	—	—	%	$	—	—	%	$	4,305	2.42	%

The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security and does not include adjustments to a tax equivalent basis. MBS and CMOs are excluded from the tables above because such securities are not due on a single maturity date. The weighted average yield of MBS and CMOs as of March 31, 2022 and December 31, 2021 was 1.88% and 1.82%, respectively.

Sales of AFS investment securities were as follows:

	Quarter Ended March 31,
(in thousands)	2022
Proceeds	$	962
Gross gains	71
Gross losses	—

The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:

(in thousands)	At March 31, 2022		At December 31, 2021
Washington, Oregon and California State to secure public deposits	$	201,444	$	206,153
Other securities pledged	4,972		5,258
Total securities pledged as collateral	$	206,416	$	211,411

The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little credit risk.

Tax-exempt interest income on investment securities was $2.7 million and $2.4 million for the quarters ended March 31, 2022 and 2021, respectively.

XML

LOANS AND CREDIT QUALITY

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

LOANS AND CREDIT QUALITY

LOANS AND CREDIT QUALITY:

The Company's LHFI is divided into two portfolio segments, commercial loans and consumer loans. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loans within the commercial loan portfolio segment and single family and home equity and other loans within the consumer loan portfolio segment. LHFI consists of the following:

(in thousands)	At March 31, 2022		At December 31, 2021
CRE
Non-owner occupied CRE	$	699,277	$	705,359
Multifamily	2,729,775		2,415,359
Construction/land development	528,134		496,144
Total	3,957,186		3,616,862
Commercial and industrial loans
Owner occupied CRE	464,356		457,706
Commercial business	387,938		401,872
Total	852,294		859,578
Consumer loans
Single family (1)	759,286		763,331
Home equity and other	295,724		303,078
Total	1,055,010		1,066,409
Total LHFI	5,864,490		5,542,849
Allowance for credit losses ("ACL")	(37,944)		(47,123)
Total LHFI less ACL	$	5,826,546	$	5,495,726

(1)    Includes $7.0 million and $7.3 million at March 31, 2022 and December 31, 2021, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

Loans totaling $3.2 billion and $2.8 billion at March 31, 2022 and December 31, 2021, respectively, were pledged to secure borrowings from the Federal Home Loan Bank ("FHLB") and loans totaling $421 million and $419 million at March 31, 2022 and December 31, 2021, respectively, were pledged to secure borrowings from the Federal Reserve Bank of San Francisco ("FRBSF").

Credit Risk Concentrations

LHFI are primarily secured by real estate located in the Pacific Northwest, California and Hawaii. At March 31, 2022 and December 31, 2021, multifamily loans in the state of California represented 34% and 33% of the total LHFI portfolio, respectively.

Credit Quality

Management considers the level of ACL to be appropriate to cover credit losses expected over the life of the loans for the LHFI portfolio. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Bank’s historical loss experience and eight qualitative factors for current and forecasted periods.

During the first quarter of 2022, the historical expected loss rates decreased from December 31, 2021 due to minimal charge-offs, improving portfolio credit distribution and favorable product mix risk composition. During the first quarter of 2022, the qualitative factors decreased significantly due to the continued favorable performance and outlook of the impact of the COVID-19 pandemic on our loan portfolio, which resulted in a reduced management overlay. As of March 31, 2022, the Bank expects that the markets in which it operates will have stable collateral values and economic outlook over the two-year forecast period.

In addition to the ACL for LHFI, the Company maintains a separate allowance for unfunded loan commitments which is included in accounts payable and other liabilities on our consolidated balance sheets. The allowance for unfunded commitments was $2.6 million and $2.4 million at March 31, 2022 and December 31, 2021, respectively.

The Bank has elected to exclude accrued interest receivable from the evaluation of the ACL. Accrued interest on LHFI was $18.1 million and $17.8 million at March 31, 2022 and December 31, 2021, respectively, and was reported in other assets in the consolidated balance sheets.

Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows:

	Quarter Ended March 31,
(in thousands)	2022		2021
Beginning balance	$	47,123	$	64,294
Provision for credit losses	(9,223)		(371)
Net (charge-offs) recoveries	44		124
Ending balance	$	37,944	$	64,047
Allowance for unfunded commitments:
Beginning balance	$	2,404	$	1,588
Provision for credit losses	223		371
Ending balance	$	2,627	$	1,959
Provision for credit losses:
Allowance for credit losses - loans	$	(9,223)	$	(371)
Allowance for unfunded commitments	223		371
Total	$	(9,000)	$	—

Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows:

	Quarter Ended March 31, 2022
(in thousands)	Beginning balance		Charge-offs		Recoveries		Provision		Ending balance
CRE
Non-owner occupied CRE	$	7,509	$	—	$	—	$	(5,215)	$	2,294
Multifamily	5,854		—		—		2,573		8,427
Construction/land development
Multifamily construction	507		—		—		(51)		456
CRE construction	150		—		—		34		184
Single family construction	6,411		—		—		1,324		7,735
Single family construction to permanent	1,055		—		—		(65)		990
Total	21,486		—		—		(1,400)		20,086
Commercial and industrial loans
Owner occupied CRE	5,006		—		—		(1,470)		3,536
Commercial business	12,273		(11)		24		(5,376)		6,910
Total	17,279		(11)		24		(6,846)		10,446
Consumer loans
Single family	4,394		—		4		(636)		3,762
Home equity and other	3,964		(33)		60		(341)		3,650
Total	8,358		(33)		64		(977)		7,412
Total ACL	$	47,123	$	(44)	$	88	$	(9,223)	$	37,944

	Quarter Ended March 31, 2021
(in thousands)	Beginning balance		Charge-offs		Recoveries		Provision		Ending balance
CRE
Non-owner occupied CRE	$	8,845	$	—	$	—	$	373	$	9,218
Multifamily	6,072		—		—		897		6,969
Construction/land development
Multifamily construction	4,903		—		—		(967)		3,936
CRE construction	1,670		—		—		238		1,908
Single family construction	5,130		—		—		(123)		5,007
Single family construction to permanent	1,315		—		—		(191)		1,124
Total	27,935		—		—		227		28,162
Commercial and industrial loans
Owner occupied CRE	4,994		—		—		272		5,266
Commercial business	17,043		—		74		(12)		17,105
Total	22,037		—		74		260		22,371
Consumer loans
Single family	6,906		(70)		120		(221)		6,735
Home equity and other	7,416		(56)		56		(637)		6,779
Total	14,322		(126)		176		(858)		13,514
Total ACL	$	64,294	$	(126)	$	250	$	(371)	$	64,047

The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status.

	At March 31, 2022
(in thousands)	2022		2021		2020		2019		2018		2017 and prior		Revolving		Revolving-term		Total
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass	$	23,614	$	68,572	$	50,276	$	158,484	$	121,836	$	274,775	$	853	$	867	$	699,277
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	23,614		68,572		50,276		158,484		121,836		274,775		853		867		699,277
Multifamily
Pass	364,731		1,311,572		551,187		233,790		60,103		179,862		—		—		2,701,245
Special Mention	—		—		8,695		19,835		—		—		—		—		28,530
Substandard	—		—		—		—		—		—		—		—		—
Total	364,731		1,311,572		559,882		253,625		60,103		179,862		—		—		2,729,775
Multifamily construction
Pass	—		12,163		24,664		—		—		—		—		—		36,827
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	—		12,163		24,664		—		—		—		—		—		36,827
CRE construction
Pass	—		11,668		3,959		—		1,924		548		—		—		18,099
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	—		11,668		3,959		—		1,924		548		—		—		18,099
Single family construction
Pass	31,784		142,275		24,226		12,434		—		76		108,005		—		318,800
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	31,784		142,275		24,226		12,434		—		76		108,005		—		318,800
Single family construction to permanent
Current	6,613		106,419		29,026		10,575		1,775		—		—		—		154,408
Past due:
30-59 days	—		—		—		—		—		—		—		—		—
60-89 days	—		—		—		—		—		—		—		—		—
90+ days	—		—		—		—		—		—		—		—		—
Total	6,613		106,419		29,026		10,575		1,775		—		—		—		154,408
Owner occupied CRE
Pass	20,055		70,792		47,176		57,012		46,661		164,101		248		1,689		407,734
Special Mention	—		—		—		18,499		2,180		23,202		—		—		43,881
Substandard	—		—		—		—		1,111		11,572		—		58		12,741
Total	20,055		70,792		47,176		75,511		49,952		198,875		248		1,747		464,356
Commercial business
Pass	32,359		58,371		48,943		36,976		23,289		27,808		113,186		2,131		343,063
Special Mention	—		213		29		7,047		838		5,264		7,543		212		21,146
Substandard	—		8,214		3,253		2,414		3,392		1,827		4,616		13		23,729
Total	32,359		66,798		52,225		46,437		27,519		34,899		125,345		2,356		387,938
Total commercial portfolio	$	479,156	$	1,790,259	$	791,434	$	557,066	$	263,109	$	689,035	$	234,451	$	4,970	$	4,809,480

The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

	At March 31, 2022
(in thousands)	2022		2021		2020		2019		2018		2017 and prior		Revolving		Revolving-term		Total
CONSUMER PORTFOLIO
Single family
Current	$	44,563	$	178,656	$	152,443	$	49,114	$	56,757	$	275,042	$	—	$	—	$	756,575
Past due:
30-59 days	—		—		—		—		—		872		—		—		872
60-89 days	—		—		—		—		—		270		—		—		270
90+ days	—		—		—		994		452		123		—		—		1,569
Total (1)	44,563		178,656		152,443		50,108		57,209		276,307		—		—		759,286
Home equity and other
Current	797		1,585		334		294		197		2,407		284,426		4,755		294,795
Past due:
30-59 days	—		3		—		—		—		—		57		—		60
60-89 days	—		8		—		—		15		—		7		—		30
90+ days	—		—		—		—		—		98		679		62		839
Total	797		1,596		334		294		212		2,505		285,169		4,817		295,724
Total consumer portfolio	$	45,360	$	180,252	$	152,777	$	50,402	$	57,421	$	278,812	$	285,169	$	4,817	$	1,055,010
Total LHFI	$	524,516	$	1,970,511	$	944,211	$	607,468	$	320,530	$	967,847	$	519,620	$	9,787	$	5,864,490

(1)    Includes $7.0 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:

	At December 31, 2021
(in thousands)	2021		2020		2019		2018		2017		2016 and prior		Revolving		Revolving-term		Total
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass	$	68,647	$	50,571	$	169,711	$	130,877	$	100,674	$	183,024	$	963	$	892	$	705,359
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	68,647		50,571		169,711		130,877		100,674		183,024		963		892		705,359
Multifamily
Pass	1,315,204		561,666		286,826		60,372		26,065		165,225		1		—		2,415,359
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	1,315,204		561,666		286,826		60,372		26,065		165,225		1		—		2,415,359
Multifamily construction
Pass	7,825		22,863		7,173		—		—		—		—		—		37,861
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	7,825		22,863		7,173		—		—		—		—		—		37,861
CRE construction
Pass	7,694		3,960		—		1,962		—		556		—		—		14,172
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	7,694		3,960		—		1,962		—		556		—		—		14,172
Single family construction
Pass	146,595		35,640		14,509		—		—		77		99,206		—		296,027
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	146,595		35,640		14,509		—		—		77		99,206		—		296,027
Single family construction to permanent
Current	90,311		42,636		13,362		1,775		—		—		—		—		148,084
Past due:
30-59 days	—		—		—		—		—		—		—		—		—
60-89 days	—		—		—		—		—		—		—		—		—
90+ days	—		—		—		—		—		—		—		—		—
Total	90,311		42,636		13,362		1,775		—		—		—		—		148,084
Owner occupied CRE
Pass	70,902		47,536		57,423		47,716		67,042		106,659		798		2,839		400,915
Special Mention	—		—		—		2,196		6,019		145		—		60		8,420
Substandard	—		—		18,665		1,111		10,151		18,444		—		—		48,371
Total	70,902		47,536		76,088		51,023		83,212		125,248		798		2,899		457,706
Commercial business
Pass	88,139		51,453		44,882		24,711		11,859		21,258		112,759		2,104		357,165
Special Mention	—		—		7,396		—		4,396		—		5,613		134		17,539
Substandard	9,716		3,399		1,667		5,928		1,096		1,328		3,932		102		27,168
Total	97,855		54,852		53,945		30,639		17,351		22,586		122,304		2,340		401,872
Total commercial portfolio	$	1,805,033	$	819,724	$	621,614	$	276,648	$	227,302	$	496,716	$	223,272	$	6,131	$	4,476,440

The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

	At December 31, 2021
(in thousands)	2021		2020		2019		2018		2017		2016 and prior		Revolving		Revolving-term		Total
CONSUMER PORTFOLIO
Single family
Current	$	176,110	$	156,360	$	62,369	$	66,063	$	95,988	$	204,229	$	—	$	—	$	761,119
Past due:
30-59 days	—		—		291		—		—		—		—		—		291
60-89 days	—		—		—		—		314		471		—		—		785
90+ days	—		—		561		452		—		123		—		—		1,136
Total (1)	176,110		156,360		63,221		66,515		96,302		204,823		—		—		763,331
Home equity and other
Current	2,005		474		393		532		516		2,609		290,512		5,273		302,314
Past due:
30-59 days	—		3		—		—		—		94		40		—		137
60-89 days	—		—		—		—		—		—		12		62		74
90+ days	3		—		—		—		—		6		544		—		553
Total	2,008		477		393		532		516		2,709		291,108		5,335		303,078
Total consumer portfolio	$	178,118	$	156,837	$	63,614	$	67,047	$	96,818	$	207,532	$	291,108	$	5,335	$	1,066,409
Total LHFI	$	1,983,151	$	976,561	$	685,228	$	343,695	$	324,120	$	704,248	$	514,380	$	11,466	$	5,542,849

(1)    Includes $7.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

Collateral Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type:

	At March 31, 2022
(in thousands)	Land		1-4 Family		Non-residential real estate		Other non-real estate		Total
Commercial and industrial loans
Owner occupied CRE	$	1,111	$	—	$	2,428	$	—	$	3,539
Commercial business	380		16		562		286		1,244
Total	1,491		16		2,990		286		4,783
Consumer loans
Single family	—		2,049		—		—		2,049
Home equity loans and other	—		345		—		—		345
Total	—		2,394		—		—		2,394
Total collateral-dependent loans	$	1,491	$	2,410	$	2,990	$	286	$	7,177

	At December 31, 2021
(in thousands)	Land		1-4 Family		Non-residential real estate		Other non-real estate		Total
Commercial and industrial loans
Owner occupied CRE	$	1,111	$	—	$	2,456	$	—	$	3,567
Commercial business	362		27		562		286		1,237
Total	1,473		27		3,018		286		4,804
Consumer loans
Single family	—		1,598		—		—		1,598
Home equity loans and other	—		19		—		—		19
Total	—		1,617		—		—		1,617
Total collateral-dependent loans	$	1,473	$	1,644	$	3,018	$	286	$	6,421

Nonaccrual and Past Due Loans

The following table presents nonaccrual status for loans:

	At March 31, 2022					At December 31, 2021
(in thousands)		Nonaccrual with no related ACL		Total Nonaccrual		Nonaccrual with no related ACL		Total Nonaccrual
Commercial and industrial loans
Owner occupied CRE		$	3,539	$	3,539	$	3,568	$	3,568
Commercial business		1,244		3,996		1,210		5,023
Total		4,783		7,535		4,778		8,591
Consumer loans
Single family		2,325		2,918		1,324		2,802
Home equity and other		52		1,393		23		808
Total		2,377		4,311		1,347		3,610
Total nonaccrual loans		$	7,160	$	11,846	$	6,125	$	12,201

The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:

	At March 31, 2022
	Past Due and Still Accruing
(in thousands)	30-59 days			60-89 days			90 days or more				Nonaccrual			Total past due and nonaccrual (3)			Current			Total loans
CRE
Non-owner occupied CRE	$	—		$	—		$	—			$	—		$	—		$	699,277		$	699,277
Multifamily	—			—			—				—			—			2,729,775			2,729,775
Construction/land development
Multifamily construction	—			—			—				—			—			36,827			36,827
CRE construction	—			—			—				—			—			18,099			18,099
Single family construction	—			—			—				—			—			318,800			318,800
Single family construction to permanent	—			—			—				—			—			154,408			154,408
Total	—			—			—				—			—			3,957,186			3,957,186
Commercial and industrial loans
Owner occupied CRE	—			—			—				3,539			3,539			460,817			464,356
Commercial business	—			—			—				3,996			3,996			383,942			387,938
Total	—			—			—				7,535			7,535			844,759			852,294
Consumer loans
Single family	3,753			1,821			6,903			(2)	2,918			15,395			743,891			759,286			(1)
Home equity and other	61			31			—				1,393			1,485			294,239			295,724
Total	3,814			1,852			6,903				4,311			16,880			1,038,130			1,055,010
Total loans	$	3,814		$	1,852		$	6,903			$	11,846		$	24,415		$	5,840,075		$	5,864,490
%	0.07		%	0.03		%	0.12		%		0.20		%	0.42		%	99.58		%	100.00		%

	At December 31, 2021
	Past Due and Still Accruing
(in thousands)	30-59 days			60-89 days			90 days or more				Nonaccrual			Total past due and nonaccrual (3)			Current			Total loans
CRE
Non-owner occupied CRE	$	—		$	—		$	—			$	—		$	—		$	705,359		$	705,359
Multifamily	—			—			—				—			—			2,415,359			2,415,359
Construction/land development
Multifamily construction	—			—			—				—			—			37,861			37,861
CRE construction	—			—			—				—			—			14,172			14,172
Single family construction	—			—			—				—			—			296,027			296,027
Single family construction to permanent	—			—			—				—			—			148,084			148,084
Total	—			—			—				—			—			3,616,862			3,616,862
Commercial and industrial loans
Owner occupied CRE	—			—			—				3,568			3,568			454,138			457,706
Commercial business	198			—			—				5,023			5,221			396,651			401,872
Total	198			—			—				8,591			8,789			850,789			859,578
Consumer loans
Single family	892			820			6,717			(2)	2,802			11,231			752,100			763,331			(1)
Home equity and other	118			74			—				808			1,000			302,078			303,078
Total	1,010			894			6,717				3,610			12,231			1,054,178			1,066,409
Total loans	$	1,208		$	894		$	6,717			$	12,201		$	21,020		$	5,521,829		$	5,542,849
%	0.02		%	0.02		%	0.12		%		0.22		%	0.38		%	99.62		%	100.00		%

(1)Includes $7.0 million and $7.3 million of loans at March 31, 2022 and December 31, 2021, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements.

(2)FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.

(3)Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.0 million and $8.4 million at March 31, 2022 and December 31, 2021, respectively.

Loan Modifications

The Company provides modifications to borrowers experiencing financial difficulty which may include delays in payment of amounts due, extension of the terms of the notes or reduction in the interest rates on the notes. In certain instances, the Company may grant more than one type of modification. The granting of modifications in the quarter ending March 31, 2022 did not have any material impact on the ACL. The following tables provide information related to loans modified during the quarter ended March 31, 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

(in thousands)	Significant Payment Delay
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	153	0.02	%

(in thousands)	Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	37	—	%

(in thousands)	Interest Rate Reduction and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	1,110	0.15	%

(in thousands)	Significant Payment Delay and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	6,397	0.84	%
Home equity and other	52		0.02	%

(in thousands)	Interest Rate Reduction, Significant Payment Delay and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	5,762	0.76	%

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Loan Type	Financial Effect of:
	Interest Rate Reduction
Single family	Reduced weighted-average contractual interest rate from 4.28% to 3.25%.
	Significant Payment Delay
Single family	Provided payment deferrals to borrowers. A weighted average 0.3% of loan balances were capitalized and added to the remaining term of the loan.
Home equity and other	Provided payment deferrals to borrowers. A weighted average 6.3% of loan balances were capitalized and added to the remaining term of the loan.
	Term Extension
Single family	Added a weighted average 3.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Home equity and other	Added a weighted average 16.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.

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DEPOSITS

3 Months Ended

Mar. 31, 2022

Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract]

DEPOSITS

DEPOSITS:

Deposit balances, including their weighted average rates, were as follows: 

	At March 31, 2022				At December 31, 2021
(dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Noninterest-bearing demand deposits	$	1,654,229	—	%	$	1,617,069	—	%
Interest-bearing demand deposits	591,148		0.10	%	513,810		0.10	%
Savings	309,462		0.06	%	302,389		0.06	%
Money market	2,800,215		0.18	%	2,806,313		0.15	%
Certificates of deposit	915,481		0.45	%	906,928		0.51	%
Total	$	6,270,535	0.16	%	$	6,146,509	0.15	%

Certificates of deposit outstanding mature as follows: 

(in thousands)	March 31, 2022
Within one year	$	761,588
One to two years	133,251
Two to three years	16,491
Three to four years	2,756
Four to five years	1,395
Total	$	915,481

The aggregate amount of certificate of deposits in denominations of more than the FDIC limit of $250 thousand at March 31, 2022 and December 31, 2021 were $96 million and $108 million, respectively. There were $195 million and $145 million of brokered deposits at March 31, 2022 and December 31, 2021, respectively.

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LONG-TERM DEBT

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT:

On January 19, 2022, we completed a $100 million subordinated notes offering due in 2032 (the “Notes”). Interest on the Notes initially will accrue at a rate equal to 3.5% per annum from and including the date of original issuance to, but excluding, January 30, 2027, payable semiannually in arrears. From and including January 30, 2027, to, but excluding, the maturity date

or the date of earlier redemption, the Notes will bear interest equal to the three-month term Secured Overnight Financing Rate ("SOFR") plus 215 basis points, payable quarterly in arrears. Net proceeds to the Company were $98 million, after deducting underwriting discounts and offering expenses. The Company intends to use a significant portion of the net proceeds from the Notes offering to repurchase shares of its common stock through open market purchases, with the remainder of the net proceeds used for working capital and other general corporate purposes, including support for growth of its total assets. At March 31, 2022 the Company had outstanding $98 million of subordinated notes.

At March 31, 2022 and December 31, 2021, the Company had outstanding $64 million of Senior Notes which bear interest at a rate of 6.50% and mature in 2026.

The Company issued trust preferred securities during the period from 2005 through 2007, resulting in a debt balance of $62 million that remains outstanding at March 31, 2022 and December 31, 2021. In connection with the issuance of trust preferred securities, HomeStreet, Inc. issued to HomeStreet Statutory Trust Junior Subordinated Deferrable Interest Debentures. The sole assets of the HomeStreet Statutory Trust are the Subordinated Debt Securities I, II, III, and IV.

The Subordinated Debt Securities outstanding as of March 31, 2022 and December 31, 2021 are as follows:

	HomeStreet Statutory Trust
(dollars in thousands)	I	II	III	IV
Date issued	June 2005	September 2005	February 2006	March 2007
Amount	$5,155	$20,619	$20,619	$15,464
Interest rate	3 MO LIBOR + 1.70%	3 MO LIBOR + 1.50%	3 MO LIBOR + 1.37%	3 MO LIBOR + 1.68%
Maturity date	June 2035	December 2035	March 2036	June 2037
Call option (1)	Quarterly	Quarterly	Quarterly	Quarterly

(1) Call options are exercisable at par and are callable, without penalty on a quarterly basis, starting five years after issuance.

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DERIVATIVES AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES

DERIVATIVES AND HEDGING ACTIVITIES:

To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as single family mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges. The notional amounts and fair values for derivatives, which are included in other assets or accounts payable and other liabilities on the consolidated balance sheet, consist of the following: 

	At March 31, 2022
	Notional amount		Fair value derivatives
(in thousands)			Asset		Liability
Forward sale commitments	$	670,018	$	5,079	$	(3,528)
Interest rate lock commitments	100,992		683		(605)
Interest rate swaps	276,561		5,619		(5,620)
Futures	93,200		97		—
Options	30,000		389		—
Total derivatives before netting	$	1,170,771	11,867		(9,753)
Netting adjustment/Cash collateral (1)			(9,096)		3,072
Carrying value on consolidated balance sheet			$	2,771	$	(6,681)

	At December 31, 2021
	Notional amount		Fair value derivatives
(in thousands)			Asset		Liability
Forward sale commitments	$	793,208	$	723	$	(640)
Interest rate lock commitments	115,025		2,487		(3)
Interest rate swaps	287,352		4,381		(4,541)
Futures	139,900		334		—
Total derivatives before netting	$	1,335,485	7,925		(5,184)
Netting adjustment/Cash collateral (1)			1,355		3,921
Carrying value on consolidated balance sheet			$	9,280	$	(1,263)

(1)    Includes net cash collateral received of $6.0 million and paid of $5.3 million at March 31, 2022 and December 31, 2021, respectively.

The following table presents gross fair value and net carrying value information about derivative instruments:

(in thousands)	Gross fair value		Netting adjustments/ Cash collateral (1)		Carrying value
At March 31, 2022
Derivative assets	$	11,867	$	(9,096)	$	2,771
Derivative liabilities	(9,753)		3,072		(6,681)
At December 31, 2021
Derivative assets	$	7,925	$	1,355	$	9,280
Derivative liabilities	(5,184)		3,921		(1,263)

(1) Includes net cash collateral received of $6.0 million and paid of $5.3 million at March 31, 2022 and December 31, 2021, respectively.

The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties is included in other assets. Payables related to cash collateral that has been received from counterparties is included in accounts payable and other liabilities. Interest is owed on amounts received from counterparties and we earn interest on cash paid to counterparties. Any securities pledged to counterparties as collateral remain on the consolidated balance sheets. At March 31, 2022 and December 31, 2021, the Company had liabilities of $7.6 million and zero, respectively, in cash collateral received from counterparties and receivables of $1.6 million and $5.3 million, respectively, in cash collateral paid to counterparties.

The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:

	Quarter Ended March 31,
(in thousands)	2022		2021
Recognized in noninterest income:
Net gain (loss) on loan origination and sale activities (1)	$	4,613	$	3,858
Loan servicing income (loss) (2)	(9,439)		(12,591)
Other (3)	159		299

(1)Comprised of IRLCs and forward contracts used as an economic hedge of loans held for sale.

(2)Comprised of interest rate swaps, interest rate swaptions, futures, US Treasury notes and US Treasury options and forward contracts used as economic hedges of single family MSRs.

(3)Impact of interest rate swap agreements executed with commercial banking customers.

The notional amount of open interest rate swap agreements executed with commercial banking customers at March 31, 2022 and December 31, 2021 were $277 million and $287 million, respectively.

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MORTGAGE BANKING OPERATIONS

3 Months Ended

Mar. 31, 2022

Mortgage Banking [Abstract]

MORTGAGE BANKING OPERATIONS

MORTGAGE BANKING OPERATIONS:

LHFS consisted of the following:

(in thousands)	At March 31, 2022		At December 31, 2021
Single family	$	48,994	$	128,041
CRE, multifamily and SBA	10,156		48,090
Total	$	59,150	$	176,131

Loans sold consisted of the following for the periods indicated: 

	Quarter Ended March 31,
(in thousands)	2022		2021
Single family	$	323,070	$	573,040
CRE, multifamily and SBA	49,137		257,717
Total	$	372,207	$	830,757

Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: 

	Quarter Ended March 31,
(in thousands)	2022		2021
Single family	$	6,169	$	26,187
CRE, multifamily and SBA	2,105		7,272
Total	$	8,274	$	33,459

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 March 31, 2022		At December 31, 2021
Single family	$	5,545,145	$	5,539,180
CRE, multifamily and SBA	2,035,801		2,031,087
Total	$	7,580,946	$	7,570,267

The Company has made representations and warranties that the loans sold meet certain requirements. The Company may be

required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such

as documentation errors, underwriting errors and judgments, appraisal errors, early payment defaults and fraud.

The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses:

	Quarter Ended March 31,
(in thousands)	2022		2021
Balance, beginning of period	$	1,312	$	2,122
Additions, net of adjustments (1)	358		(20)
Realized (losses) recoveries, net (2)	(32)		(161)
Balance, end of period	$	1,638	$	1,941

(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.

The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $2.7 million and $1.9 million were recorded in other assets as of March 31, 2022 and December 31, 2021, respectively.

When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company records the balance of the loans as other assets and other liabilities. At March 31, 2022 and December 31, 2021, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets totaled $10 million and $12 million, respectively.

Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:

	Quarter Ended March 31,
(in thousands)	2022		2021
Servicing income, net:
Servicing fees and other	$	8,321	$	8,913
Amortization of single family MSRs (1)	(3,425)		(5,693)
Amortization of multifamily and SBA MSRs	(1,712)		(1,344)
Total	3,184		1,876
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)	10,303		11,463
Net gain (loss) from economic hedging	(10,183)		(12,591)
Total	120		(1,128)
Loan servicing income (loss)	$	3,304	$	748

(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.

The changes in single family MSRs measured at fair value are as follows:

	Quarter Ended March 31,
(in thousands)	2022		2021
Beginning balance	$	61,584	$	49,966
Additions and amortization:
Originations	3,916		6,616
Amortization (1)	(3,425)		(5,693)
Net additions and amortization	491		923
Changes in fair value assumptions (2)	10,303		11,463
Ending balance	$	72,378	$	62,352

(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 the initial fair value of capitalized single family MSRs were as follows: 

	Quarter Ended March 31,
(rates per annum) (1)	2022		2021
Constant prepayment rate ("CPR") (2)	9.38	%	8.37	%
Discount rate	8.34	%	8.37	%

(1) Based on a weighted average.

(2) Represents an expected lifetime average CPR used in the model.

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 March 31, 2022			At December 31, 2021
	Range of Inputs	Average (1)		Range of Inputs	Average (1)
CPRs	7.38% - 16.66%	9.42	%	7.90% - 17.35%	10.35	%
Discount Rates	8.10% - 15.18%	9.05	%	6.94% - 13.96%	7.97	%

(1) Weighted averages of all the inputs within the range.

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 March 31, 2022
Fair value of single family MSR	$	72,378
Expected weighted-average life (in years)	7.14
CPR
Impact on fair value of 25 basis points adverse change in interest rates	$	(2,208)
Impact on fair value of 50 basis points adverse change in interest rates	$	(4,909)
Discount rate
Impact on fair value of 100 basis points increase	$	(3,217)
Impact on fair value of 200 basis points increase	$	(6,187)

The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows: 

	Quarter Ended March 31,
(in thousands)	2022		2021
Beginning balance	$	39,415	$	35,774
Originations	1,576		5,196
Amortization	(1,712)		(1,344)
Ending balance	$	39,279	$	39,626

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GUARANTEES AND MORTGAGE REPURCHASE LIABILITY	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
GUARANTEES AND MORTGAGE REPURCHASE LIABILITY	GUARANTEES AND MORTGAGE REPURCHASE LIABILITY: In the ordinary course of business, the Company sells loans through the Fannie Mae Multifamily Delegated Underwriting and Servicing Program ("DUS"®) that are subject to a credit loss sharing arrangement. The Company services the loans for Fannie Mae and shares in the risk of loss with Fannie Mae under the terms of the DUS contracts. Under the DUS program, the Company and Fannie Mae share losses on a pro rata basis, where the Company is responsible for losses incurred up to one-third of principal balance on each loan with two-thirds of the loss covered by Fannie Mae. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. As of March 31, 2022 and December 31, 2021, the total unpaid principal balance of loans sold under this program was $1.9 billion. The Company's reserve liability related to this arrangement totaled $0.6 million at both March 31, 2022 and December 31, 2021. There were no actual losses incurred under this arrangement during the quarters ended March 31, 2022 and 2021.In the ordinary course of business, the Company sells residential mortgage loans to GSEs and other entities. Under the terms of these sales agreements, the Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $5.5 billion at both March 31, 2022 and December 31, 2021. At March 31, 2022 and December 31, 2021, the Company had recorded a mortgage repurchase liability for loans sold on a servicing-retained and servicing-released basis, included in accounts payable and other liabilities on the consolidated balance sheets, of $1.6 million and $1.3 million, respectively.

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE:

The following table summarizes the calculation of earnings per share: 

	Quarter Ended March 31,
(in thousands, except share and per share data)	2022		2021
Net income	$	19,951	$	29,663
Weighted average shares:
Basic weighted-average number of common shares outstanding	19,585,753		21,637,671
Dilutive effect of outstanding common stock equivalents	206,160		324,157
Diluted weighted-average number of common shares outstanding	19,791,913		21,961,828
Net income per share:
Basic earnings per share	$	1.02	$	1.37
Diluted earnings per share	1.01		1.35

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FAIR VALUE MEASUREMENT

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT:

The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company's approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements.

Fair Value Hierarchy

A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows:

• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity

can access at the measurement date. An active market for the asset or liability is a market in which transactions for

the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing

basis.

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,

either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and

inputs that are observable for the asset or liability for substantially the full term of the financial instrument.

• Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company's assumptions of what

market participants would use in pricing the asset or liability.

The Company's policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period.                 

Estimation of Fair Value

Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange.

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 7, 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.
Interest rate lock commitments	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.

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, 2022
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets:
Trading securities - U.S. Treasury securities	$	19,313	$	19,313	$	—	$	—
Investment securities AFS
Mortgage backed securities:
Residential	29,187		—		26,954		2,233
Commercial	66,392		—		66,392		—
Collateralized mortgage obligations:
Residential	266,492		—		266,492		—
Commercial	134,879		—		134,879		—
Municipal bonds	515,139		—		515,139		—
Corporate debt securities	26,373		—		26,299		74
U.S. Treasury securities	21,722		—		21,722		—
Single family LHFS	48,994		—		48,994		—
Single family LHFI	6,981		—		—		6,981
Single family mortgage servicing rights	72,378		—		—		72,378
Derivatives
Futures	97		97		—		—
Forward sale commitments	5,079		—		5,079		—
Options	389		389		—		—
Interest rate lock commitments	683		—		—		683
Interest rate swaps	5,619		—		5,619		—
Total assets	$	1,219,717	$	19,799	$	1,117,569	$	82,349
Liabilities:
Derivatives
Forward sale commitments	3,528		—		3,528		—
Interest rate lock commitments	605		—		—		605
Interest rate swaps	5,620		—		5,620		—
Total liabilities	$	9,753	$	—	$	9,148	$	605

	At December 31, 2021
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets:
Investment securities AFS
Mortgage backed securities:
Residential	$	32,963	$	—	$	30,556	$	2,407
Commercial	62,792		—		62,792		—
Collateralized mortgage obligations:
Residential	187,394		—		187,394		—
Commercial	136,659		—		136,659		—
Municipal bonds	539,923		—		539,923		—
Corporate debt securities	19,616		—		19,541		75
U.S. Treasury securities	23,175		—		23,175		—
Single family LHFS	128,041		—		128,041		—
Single family LHFI	7,287		—		—		7,287
Single family mortgage servicing rights	61,584		—		—		61,584
Derivatives
Futures	334		334		—		—
Forward sale commitments	723		—		723		—
Interest rate lock commitments	2,487		—		—		2,487
Interest rate swaps	4,381		—		4,381		—
Total assets	$	1,207,359	$	334	$	1,133,185	$	73,840
Liabilities:
Derivatives
Forward sale commitments	$	640	$	—	$	640	$	—
Interest rate lock commitments	3		—		—		3
Interest rate swaps	4,541		—		4,541		—
Total liabilities	$	5,184	$	—	$	5,181	$	3

There were no transfers between levels of the fair value hierarchy during the quarters ended March 31, 2022 and 2021.

Level 3 Recurring Fair Value Measurements

The Company's level 3 recurring fair value measurements consist of investment securities AFS, single family MSRs, single family LHFI where fair value option was elected, certain single family LHFS and interest rate lock commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the quarters ended March 31, 2022 and 2021, see Note 7, Mortgage Banking Operations of this Quarterly Report on Form 10-Q.

The fair value of IRLCs considers several factors, including the fair value in the secondary market of the underlying loan resulting from the exercise of the commitment, the expected net future cash flows related to the associated servicing of the loan (referred to as the value of servicing) and the probability that the commitment will not be converted into a funded loan (referred to as a fall-out factor). The fair value of IRLCs on LHFS, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. The significance of the fall-out factor to the fair value measurement of an individual IRLC is generally highest at the time that the rate lock is initiated and declines as closing procedures are performed and the underlying loan gets closer to funding. The fall-out factor applied is based on historical experience. The value of servicing is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs and underlying portfolio characteristics. Because these inputs are not observable in market trades, the fall-out factor and value of servicing are considered to be level 3 inputs. The fair value of IRLCs decreases in value upon an increase in the fall-out factor and increases in value upon an increase in the value of servicing. Changes in the fall-out factor and value of servicing do not increase or decrease based on movements in other significant unobservable inputs.

The Company recognizes unrealized gains and losses from the time that an IRLC is initiated until the gain or loss is realized at the time the loan closes, which generally occurs within 30-90 days. For IRLCs that fall out, any unrealized gain or loss is reversed, which generally occurs at the end of the commitment period. The gains and losses recognized on IRLC derivatives generally correlates to volume of single family interest rate lock commitments made during the reporting period (after adjusting for estimated fallout) while the amount of unrealized gains and losses realized at settlement generally correlates to the volume of single family closed loans during the reporting period.

The Company uses the discounted cash flow model to estimate the fair value of certain loans that have been transferred from held for sale to held for investment and single family LHFS when the fair value of the loans is not derived using observable market inputs. The key assumption in the valuation model is the implied spread to benchmark interest rate curve. The implied spread is not directly observable in the market and is derived from third party pricing which is based on market information from comparable loan pools. The fair value estimate of single family loans that have been transferred from held for sale to held for investment are sensitive to changes in the benchmark interest rate which might result in a significantly higher or lower fair value measurement.

The Company transferred certain loans from held for sale to held for investment. These loans were originated as held for sale loans where the Company had elected fair value option. The Company determined these loans to be level 3 recurring assets as the valuation technique included a significant unobservable input. The total amount of held for investment loans where fair value option election was made was $7.0 million and $7.3 million at March 31, 2022 and December 31, 2021, respectively.

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, 2022
Investment securities AFS	$	2,307	Income approach	Implied spread to benchmark interest rate curve	2.00%	2.00%	2.00%
Single family LHFI	6,981		Income approach	Implied spread to benchmark interest rate curve	2.49%	4.76%	3.14%
Interest rate lock commitments, net	78		Income approach	Fall-out factor	0.20%	29.60%	11.71%
				Value of servicing	0.45%	1.39%	1.06%
December 31, 2021
Investment securities AFS	$	2,482	Income approach	Implied spread to benchmark interest rate curve	2.00%	2.00%	2.00%
Single family LHFI	7,287		Income approach	Implied spread to benchmark interest rate curve	2.39%	7.96%	3.56%
Interest rate lock commitments, net	2,484		Income approach	Fall-out factor	0.15%	21.93%	8.44%
				Value of servicing	0.35%	1.46%	1.15%

We had no LHFS where the fair value was not derived with significant observable inputs at March 31, 2022 and December 31, 2021.

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, 2022
Investment securities AFS	$	2,482	$	—	$	—	$	(48)	$	(127)	$	2,307
Single family LHFI	7,287		—		—		—		(306)		6,981
Quarter Ended March 31, 2021
Investment securities AFS	$	2,710	$	—	$	—	$	(48)	$	(172)	$	2,490
Single family LHFI	7,108		360		—		(3,191)		47		4,324

(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)	2022		2021
Beginning balance, net	$	2,484	$	17,392
Total realized/unrealized gains (losses)	(2,177)		(3,469)
Settlements	(229)		(7,435)
Ending balance, net	$	78	$	6,488

Nonrecurring Fair Value Measurements

Certain assets held by the Company are not included in the tables above, but are measured at fair value on a periodic basis. These assets include certain LHFI and OREO that are carried at the lower of cost or fair value of the underlying collateral, less the estimated costs to sell. The estimated fair values of real estate collateral are generally based on internal evaluations and appraisals of such collateral, which use the market approach and income approach methodologies. We have omitted disclosure related to quantitative inputs given the insignificance of assets measured on a nonrecurring basis.

The fair value of commercial properties is generally based on third-party appraisals that consider recent sales of comparable properties, including their income-generating characteristics, adjusted (generally based on unobservable inputs) to reflect the general assumptions that a market participant would make when analyzing the property for purchase. The Company uses a fair value of collateral technique to apply adjustments to the appraisal value of certain commercial LHFI that are collateralized by real estate.

The Company uses a fair value of collateral technique to apply adjustments to the stated value of certain commercial LHFI that are not collateralized by real estate and to the appraisal value of OREO.

Residential properties are generally based on unadjusted third-party appraisals. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property.

These adjustments include management assumptions that are based on the type of collateral dependent loan and may increase or decrease an appraised value. Management adjustments vary significantly depending on the location, physical characteristics and income producing potential of each individual property. The quality and volume of market information available at the time of the appraisal can vary from period-to-period and cause significant changes to the nature and magnitude of the unobservable inputs used. Given these variations, changes in these unobservable inputs are generally not a reliable indicator for how fair value will increase or decrease from period to period.

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, 2022
LHFI (1)	$	904	$	10

(1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral.

Fair Value of Financial Instruments

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, 2022
(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	73,862	$	73,862	$	73,862	$	—	$	—
Investment securities HTM	4,143		4,134		—		4,134		—
LHFI	5,819,565		5,712,390		—		—		5,712,390
LHFS – multifamily and other	10,156		10,248		—		10,248		—
Mortgage servicing rights – multifamily and SBA	39,279		43,453		—		—		43,453
Federal Home Loan Bank stock	19,596		19,596		—		19,596		—
Other assets - GNMA EBO loans	9,940		9,940		—		—		9,940
Liabilities:
Certificates of deposit	$	915,481	$	908,030	$	—	$	908,030	$	—
Borrowings	273,000		273,000				273,000
Long-term debt	224,137		214,853		—		214,853		—

	At December 31, 2021
(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	65,214	$	65,214	$	65,214	$	—	$	—
Investment securities HTM	4,169		4,305		—		4,305		—
LHFI	5,488,439		5,588,719		—		—		5,588,719
LHFS – multifamily and other	48,090		48,425		—		48,425		—
Mortgage servicing rights – multifamily and SBA	39,415		43,199		—		—		43,199
Federal Home Loan Bank stock	10,361		10,361		—		10,361		—
Other assets-GNMA EBO loans	12,342		12,342		—		—		12,342
Liabilities:
Certificates of deposit	$	906,928	$	906,064	$	—	$	906,064	$	—
Borrowings	41,000		41,000		—		41,000		—
Long-term debt	126,026		116,845		—		116,845		—

Fair Value Option

Single family loans held for sale accounted under the fair value option are measured initially at fair value with subsequent changes in fair value recognized in earnings. Gains and losses from such changes in fair value are recognized in net gain on mortgage loan origination and sale activities within noninterest income. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in fair value of the related servicing asset, resulting in revaluations adjustments to the recorded fair value. The use of the fair value option allows the change in the fair value of loans to more effectively offset the change in fair value of derivative instruments that are used as economic hedges of loans held for sale.

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, 2022						At December 31, 2021
(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	$	48,994	$	49,457	$	(463)	$	128,041	$	124,933	$	3,108

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SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT:On April 28, 2022 the Board authorized a dividend of $0.35 per share, payable on May 24, 2022 to shareholders of record on May 10, 2022.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company allocates resources and assesses financial performance on a consolidated basis and therefore has one reporting segment. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates.

Reclassifications

Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation.

Recent Accounting Developments

Recent Accounting Developments

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR rates expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the transition to alternative rates. The ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. These ASUs are not expected to have a material impact on the Company’s financial position or results of operations.

In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326). The amendments in this ASU eliminate the accounting guidance for TDRs by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower experiences financial difficulty. In addition, the amendments require that an entity disclose current period gross charge-offs by year of origination in a vintage table. We prospectively adopted the portion of ASU No. 2022-02 with respect to amendments about TDRs and related disclosure enhancements as of January 1, 2022. This adoption did not have a material impact on the Company’s financial position or results of operations. The Company did not adopt the vintage table disclosure requirements and is in the process of analyzing these disclosures. Because it is only a change in disclosures, we do not expect the vintage table disclosure requirement of ASU 2022-02 to have a material impact on the Company's financial position or results of operations when adopted.

Derivatives and Hedging Activities

To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as single family mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges

Fair Value Measurement

The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company's approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements.

Fair Value Hierarchy

A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows:

• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity

can access at the measurement date. An active market for the asset or liability is a market in which transactions for

the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing

basis.

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,

either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and

inputs that are observable for the asset or liability for substantially the full term of the financial instrument.

• Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company's assumptions of what

market participants would use in pricing the asset or liability.

The Company's policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period.                 

Estimation of Fair Value

Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange.

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 7, 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.
Interest rate lock commitments	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.

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INVESTMENT SECURITIES - (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Fair Value of Available-for-Sale Securities

The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and held-to-maturity ("HTM"): 

	At March 31, 2022
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
AFS
Mortgage backed securities ("MBS"):
Residential	$	30,689	$	6	$	(1,508)	$	29,187
Commercial	70,312		38		(3,958)		66,392
Collateralized mortgage obligations ("CMOs"):
Residential	276,246		186		(9,940)		266,492
Commercial	138,168		135		(3,424)		134,879
Municipal bonds	535,353		2,802		(23,016)		515,139
Corporate debt securities	26,850		97		(574)		26,373
U.S. Treasury securities	23,263		—		(1,541)		21,722
Total	$	1,100,881	$	3,264	$	(43,961)	$	1,060,184
HTM
Municipal bonds	$	4,143	$	8	$	(17)	$	4,134

	At December 31, 2021
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
AFS
MBS:
Residential	$	32,905	$	396	$	(338)	$	32,963
Commercial	62,094		933		(235)		62,792
CMOs:
Residential	186,703		2,012		(1,321)		187,394
Commercial	135,102		1,890		(333)		136,659
Municipal bonds	516,693		24,154		(924)		539,923
Corporate debt securities	18,918		699		(1)		19,616
U.S. Treasury securities	23,348		—		(173)		23,175
Total	$	975,763	$	30,084	$	(3,325)	$	1,002,522
HTM
Municipal bonds	$	4,169	$	136	$	—	$	4,305

Amortized Cost and Fair Value of Held-to-Maturity Securities

The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and held-to-maturity ("HTM"): 

	At March 31, 2022
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
AFS
Mortgage backed securities ("MBS"):
Residential	$	30,689	$	6	$	(1,508)	$	29,187
Commercial	70,312		38		(3,958)		66,392
Collateralized mortgage obligations ("CMOs"):
Residential	276,246		186		(9,940)		266,492
Commercial	138,168		135		(3,424)		134,879
Municipal bonds	535,353		2,802		(23,016)		515,139
Corporate debt securities	26,850		97		(574)		26,373
U.S. Treasury securities	23,263		—		(1,541)		21,722
Total	$	1,100,881	$	3,264	$	(43,961)	$	1,060,184
HTM
Municipal bonds	$	4,143	$	8	$	(17)	$	4,134

	At December 31, 2021
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
AFS
MBS:
Residential	$	32,905	$	396	$	(338)	$	32,963
Commercial	62,094		933		(235)		62,792
CMOs:
Residential	186,703		2,012		(1,321)		187,394
Commercial	135,102		1,890		(333)		136,659
Municipal bonds	516,693		24,154		(924)		539,923
Corporate debt securities	18,918		699		(1)		19,616
U.S. Treasury securities	23,348		—		(173)		23,175
Total	$	975,763	$	30,084	$	(3,325)	$	1,002,522
HTM
Municipal bonds	$	4,169	$	136	$	—	$	4,305

Investment Securities in an Unrealized Loss Position

Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position:

	At March 31, 2022
	Less than 12 months				12 months or more				Total
(in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
AFS
MBS:
Residential	$	(1,064)	$	25,716	$	(444)	$	2,233	$	(1,508)	$	27,949
Commercial	(3,958)		58,243		—		—		(3,958)		58,243
CMOs:
Residential	(7,475)		177,481		(2,465)		21,315		(9,940)		198,796
Commercial	(2,802)		103,919		(622)		7,608		(3,424)		111,527
Municipal bonds	(21,126)		375,801		(1,890)		12,141		(23,016)		387,942
Corporate debt securities	(574)		16,758		—		—		(574)		16,758
U.S. Treasury securities	(1,541)		21,723		—		—		(1,541)		21,723
Total	$	(38,540)	$	779,641	$	(5,421)	$	43,297	$	(43,961)	$	822,938
HTM
Municipal bonds	$	(17)	$	2,474	$	—	$	—	$	(17)	$	2,474

	At December 31, 2021
	Less than 12 months				12 months or more				Total
(in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value
MBS:
Residential	$	(38)	$	5,324	$	(300)	$	2,406	$	(338)	$	7,730
Commercial	(235)		18,127		—		—		(235)		18,127
CMOs:
Residential	(1,007)		53,068		(314)		7,116		(1,321)		60,184
Commercial	(135)		14,806		(198)		5,132		(333)		19,938
Municipal bonds	(914)		64,237		(10)		1,058		(924)		65,295
Corporate debt securities	(1)		3,164		—		—		(1)		3,164
U.S. Treasury securities	(173)		23,175		—		—		(173)		23,175
Total	$	(2,503)	$	181,901	$	(822)	$	15,712	$	(3,325)	$	197,613

Computation of Weighted Average Yield using Coupon on the Fair Value

The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield:

	At March 31, 2022
	Within one year				After one year through five years				After five years through ten years				After ten years				Total
(dollars in thousands)	Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield
AFS
Municipal bonds	$	4,159	3.57	%	$	13,675	3.23	%	$	66,619	3.40	%	$	430,686	3.03	%	$	515,139	3.09	%
Corporate debt securities	—		—	%	5,573		3.54	%	20,800		4.39	%	—		—	%	26,373		4.22	%
U.S. Treasury securities	—		—	%	—		—	%	21,722		1.20	%	—		—	%	21,722		1.20	%
Total	$	4,159	3.57	%	$	19,248	3.32	%	$	109,141	3.13	%	$	430,686	3.03	%	$	563,234	3.07	%
HTM
Municipal bonds	$	1,659	2.91	%	$	2,475	2.07	%	$	—	—	%	$	—	—	%	$	4,134	2.41	%

	At December 31, 2021
	Within one year				After one year through five years				After five years through ten years				After ten years				Total
(dollars in thousands)	Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield
AFS
Municipal bonds	$	4,933	3.79	%	$	14,366	3.26	%	$	68,025	3.60	%	$	452,599	3.23	%	$	539,923	3.28	%
Corporate debt securities	—		—	%	6,563		3.60	%	13,053		5.03	%	—		—	%	19,616		4.55	%
U.S. Treasury securities	—		—	%	—		—	%	23,175		1.27	%	—		—	%	23,175		1.27	%
Total	$	4,933	3.79	%	$	20,929	3.37	%	$	104,253	3.23	%	$	452,599	3.23	%	$	582,714	3.24	%
HTM
Municipal bonds	$	1,684	2.86	%	$	2,621	2.12	%	$	—	—	%	$	—	—	%	$	4,305	2.42	%

Schedule of Sales of Investment Securities

Sales of AFS investment securities were as follows:

	Quarter Ended March 31,
(in thousands)	2022
Proceeds	$	962
Gross gains	71
Gross losses	—

Carrying Value of Securities Pledged as Collateral

The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:

(in thousands)	At March 31, 2022		At December 31, 2021
Washington, Oregon and California State to secure public deposits	$	201,444	$	206,153
Other securities pledged	4,972		5,258
Total securities pledged as collateral	$	206,416	$	211,411

XML

LOANS AND CREDIT QUALITY - (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Loans Held for Investment

LHFI consists of the following:

(in thousands)	At March 31, 2022		At December 31, 2021
CRE
Non-owner occupied CRE	$	699,277	$	705,359
Multifamily	2,729,775		2,415,359
Construction/land development	528,134		496,144
Total	3,957,186		3,616,862
Commercial and industrial loans
Owner occupied CRE	464,356		457,706
Commercial business	387,938		401,872
Total	852,294		859,578
Consumer loans
Single family (1)	759,286		763,331
Home equity and other	295,724		303,078
Total	1,055,010		1,066,409
Total LHFI	5,864,490		5,542,849
Allowance for credit losses ("ACL")	(37,944)		(47,123)
Total LHFI less ACL	$	5,826,546	$	5,495,726

(1)    Includes $7.0 million and $7.3 million at March 31, 2022 and December 31, 2021, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

Activity in Allowance for Credit Losses

Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows:

	Quarter Ended March 31,
(in thousands)	2022		2021
Beginning balance	$	47,123	$	64,294
Provision for credit losses	(9,223)		(371)
Net (charge-offs) recoveries	44		124
Ending balance	$	37,944	$	64,047
Allowance for unfunded commitments:
Beginning balance	$	2,404	$	1,588
Provision for credit losses	223		371
Ending balance	$	2,627	$	1,959
Provision for credit losses:
Allowance for credit losses - loans	$	(9,223)	$	(371)
Allowance for unfunded commitments	223		371
Total	$	(9,000)	$	—

Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows:

	Quarter Ended March 31, 2022
(in thousands)	Beginning balance		Charge-offs		Recoveries		Provision		Ending balance
CRE
Non-owner occupied CRE	$	7,509	$	—	$	—	$	(5,215)	$	2,294
Multifamily	5,854		—		—		2,573		8,427
Construction/land development
Multifamily construction	507		—		—		(51)		456
CRE construction	150		—		—		34		184
Single family construction	6,411		—		—		1,324		7,735
Single family construction to permanent	1,055		—		—		(65)		990
Total	21,486		—		—		(1,400)		20,086
Commercial and industrial loans
Owner occupied CRE	5,006		—		—		(1,470)		3,536
Commercial business	12,273		(11)		24		(5,376)		6,910
Total	17,279		(11)		24		(6,846)		10,446
Consumer loans
Single family	4,394		—		4		(636)		3,762
Home equity and other	3,964		(33)		60		(341)		3,650
Total	8,358		(33)		64		(977)		7,412
Total ACL	$	47,123	$	(44)	$	88	$	(9,223)	$	37,944

	Quarter Ended March 31, 2021
(in thousands)	Beginning balance		Charge-offs		Recoveries		Provision		Ending balance
CRE
Non-owner occupied CRE	$	8,845	$	—	$	—	$	373	$	9,218
Multifamily	6,072		—		—		897		6,969
Construction/land development
Multifamily construction	4,903		—		—		(967)		3,936
CRE construction	1,670		—		—		238		1,908
Single family construction	5,130		—		—		(123)		5,007
Single family construction to permanent	1,315		—		—		(191)		1,124
Total	27,935		—		—		227		28,162
Commercial and industrial loans
Owner occupied CRE	4,994		—		—		272		5,266
Commercial business	17,043		—		74		(12)		17,105
Total	22,037		—		74		260		22,371
Consumer loans
Single family	6,906		(70)		120		(221)		6,735
Home equity and other	7,416		(56)		56		(637)		6,779
Total	14,322		(126)		176		(858)		13,514
Total ACL	$	64,294	$	(126)	$	250	$	(371)	$	64,047

Designated Loan Grades by Loan Portfolio Segment and Loan Class

The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status.

	At March 31, 2022
(in thousands)	2022		2021		2020		2019		2018		2017 and prior		Revolving		Revolving-term		Total
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass	$	23,614	$	68,572	$	50,276	$	158,484	$	121,836	$	274,775	$	853	$	867	$	699,277
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	23,614		68,572		50,276		158,484		121,836		274,775		853		867		699,277
Multifamily
Pass	364,731		1,311,572		551,187		233,790		60,103		179,862		—		—		2,701,245
Special Mention	—		—		8,695		19,835		—		—		—		—		28,530
Substandard	—		—		—		—		—		—		—		—		—
Total	364,731		1,311,572		559,882		253,625		60,103		179,862		—		—		2,729,775
Multifamily construction
Pass	—		12,163		24,664		—		—		—		—		—		36,827
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	—		12,163		24,664		—		—		—		—		—		36,827
CRE construction
Pass	—		11,668		3,959		—		1,924		548		—		—		18,099
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	—		11,668		3,959		—		1,924		548		—		—		18,099
Single family construction
Pass	31,784		142,275		24,226		12,434		—		76		108,005		—		318,800
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	31,784		142,275		24,226		12,434		—		76		108,005		—		318,800
Single family construction to permanent
Current	6,613		106,419		29,026		10,575		1,775		—		—		—		154,408
Past due:
30-59 days	—		—		—		—		—		—		—		—		—
60-89 days	—		—		—		—		—		—		—		—		—
90+ days	—		—		—		—		—		—		—		—		—
Total	6,613		106,419		29,026		10,575		1,775		—		—		—		154,408
Owner occupied CRE
Pass	20,055		70,792		47,176		57,012		46,661		164,101		248		1,689		407,734
Special Mention	—		—		—		18,499		2,180		23,202		—		—		43,881
Substandard	—		—		—		—		1,111		11,572		—		58		12,741
Total	20,055		70,792		47,176		75,511		49,952		198,875		248		1,747		464,356
Commercial business
Pass	32,359		58,371		48,943		36,976		23,289		27,808		113,186		2,131		343,063
Special Mention	—		213		29		7,047		838		5,264		7,543		212		21,146
Substandard	—		8,214		3,253		2,414		3,392		1,827		4,616		13		23,729
Total	32,359		66,798		52,225		46,437		27,519		34,899		125,345		2,356		387,938
Total commercial portfolio	$	479,156	$	1,790,259	$	791,434	$	557,066	$	263,109	$	689,035	$	234,451	$	4,970	$	4,809,480

The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

	At March 31, 2022
(in thousands)	2022		2021		2020		2019		2018		2017 and prior		Revolving		Revolving-term		Total
CONSUMER PORTFOLIO
Single family
Current	$	44,563	$	178,656	$	152,443	$	49,114	$	56,757	$	275,042	$	—	$	—	$	756,575
Past due:
30-59 days	—		—		—		—		—		872		—		—		872
60-89 days	—		—		—		—		—		270		—		—		270
90+ days	—		—		—		994		452		123		—		—		1,569
Total (1)	44,563		178,656		152,443		50,108		57,209		276,307		—		—		759,286
Home equity and other
Current	797		1,585		334		294		197		2,407		284,426		4,755		294,795
Past due:
30-59 days	—		3		—		—		—		—		57		—		60
60-89 days	—		8		—		—		15		—		7		—		30
90+ days	—		—		—		—		—		98		679		62		839
Total	797		1,596		334		294		212		2,505		285,169		4,817		295,724
Total consumer portfolio	$	45,360	$	180,252	$	152,777	$	50,402	$	57,421	$	278,812	$	285,169	$	4,817	$	1,055,010
Total LHFI	$	524,516	$	1,970,511	$	944,211	$	607,468	$	320,530	$	967,847	$	519,620	$	9,787	$	5,864,490

(1)    Includes $7.0 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status:

	At December 31, 2021
(in thousands)	2021		2020		2019		2018		2017		2016 and prior		Revolving		Revolving-term		Total
COMMERCIAL PORTFOLIO
Non-owner occupied CRE
Pass	$	68,647	$	50,571	$	169,711	$	130,877	$	100,674	$	183,024	$	963	$	892	$	705,359
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	68,647		50,571		169,711		130,877		100,674		183,024		963		892		705,359
Multifamily
Pass	1,315,204		561,666		286,826		60,372		26,065		165,225		1		—		2,415,359
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	1,315,204		561,666		286,826		60,372		26,065		165,225		1		—		2,415,359
Multifamily construction
Pass	7,825		22,863		7,173		—		—		—		—		—		37,861
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	7,825		22,863		7,173		—		—		—		—		—		37,861
CRE construction
Pass	7,694		3,960		—		1,962		—		556		—		—		14,172
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	7,694		3,960		—		1,962		—		556		—		—		14,172
Single family construction
Pass	146,595		35,640		14,509		—		—		77		99,206		—		296,027
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Total	146,595		35,640		14,509		—		—		77		99,206		—		296,027
Single family construction to permanent
Current	90,311		42,636		13,362		1,775		—		—		—		—		148,084
Past due:
30-59 days	—		—		—		—		—		—		—		—		—
60-89 days	—		—		—		—		—		—		—		—		—
90+ days	—		—		—		—		—		—		—		—		—
Total	90,311		42,636		13,362		1,775		—		—		—		—		148,084
Owner occupied CRE
Pass	70,902		47,536		57,423		47,716		67,042		106,659		798		2,839		400,915
Special Mention	—		—		—		2,196		6,019		145		—		60		8,420
Substandard	—		—		18,665		1,111		10,151		18,444		—		—		48,371
Total	70,902		47,536		76,088		51,023		83,212		125,248		798		2,899		457,706
Commercial business
Pass	88,139		51,453		44,882		24,711		11,859		21,258		112,759		2,104		357,165
Special Mention	—		—		7,396		—		4,396		—		5,613		134		17,539
Substandard	9,716		3,399		1,667		5,928		1,096		1,328		3,932		102		27,168
Total	97,855		54,852		53,945		30,639		17,351		22,586		122,304		2,340		401,872
Total commercial portfolio	$	1,805,033	$	819,724	$	621,614	$	276,648	$	227,302	$	496,716	$	223,272	$	6,131	$	4,476,440

The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status:

	At December 31, 2021
(in thousands)	2021		2020		2019		2018		2017		2016 and prior		Revolving		Revolving-term		Total
CONSUMER PORTFOLIO
Single family
Current	$	176,110	$	156,360	$	62,369	$	66,063	$	95,988	$	204,229	$	—	$	—	$	761,119
Past due:
30-59 days	—		—		291		—		—		—		—		—		291
60-89 days	—		—		—		—		314		471		—		—		785
90+ days	—		—		561		452		—		123		—		—		1,136
Total (1)	176,110		156,360		63,221		66,515		96,302		204,823		—		—		763,331
Home equity and other
Current	2,005		474		393		532		516		2,609		290,512		5,273		302,314
Past due:
30-59 days	—		3		—		—		—		94		40		—		137
60-89 days	—		—		—		—		—		—		12		62		74
90+ days	3		—		—		—		—		6		544		—		553
Total	2,008		477		393		532		516		2,709		291,108		5,335		303,078
Total consumer portfolio	$	178,118	$	156,837	$	63,614	$	67,047	$	96,818	$	207,532	$	291,108	$	5,335	$	1,066,409
Total LHFI	$	1,983,151	$	976,561	$	685,228	$	343,695	$	324,120	$	704,248	$	514,380	$	11,466	$	5,542,849

(1)    Includes $7.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements.

Schedule of Collateral Dependent Loans

The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type:

	At March 31, 2022
(in thousands)	Land		1-4 Family		Non-residential real estate		Other non-real estate		Total
Commercial and industrial loans
Owner occupied CRE	$	1,111	$	—	$	2,428	$	—	$	3,539
Commercial business	380		16		562		286		1,244
Total	1,491		16		2,990		286		4,783
Consumer loans
Single family	—		2,049		—		—		2,049
Home equity loans and other	—		345		—		—		345
Total	—		2,394		—		—		2,394
Total collateral-dependent loans	$	1,491	$	2,410	$	2,990	$	286	$	7,177

Schedule of Loans on Nonaccrual with no Related Allowance for Credit Loss

	At December 31, 2021
(in thousands)	Land		1-4 Family		Non-residential real estate		Other non-real estate		Total
Commercial and industrial loans
Owner occupied CRE	$	1,111	$	—	$	2,456	$	—	$	3,567
Commercial business	362		27		562		286		1,237
Total	1,473		27		3,018		286		4,804
Consumer loans
Single family	—		1,598		—		—		1,598
Home equity loans and other	—		19		—		—		19
Total	—		1,617		—		—		1,617
Total collateral-dependent loans	$	1,473	$	1,644	$	3,018	$	286	$	6,421

Nonaccrual and Past Due Loans

The following table presents nonaccrual status for loans:

	At March 31, 2022					At December 31, 2021
(in thousands)		Nonaccrual with no related ACL		Total Nonaccrual		Nonaccrual with no related ACL		Total Nonaccrual
Commercial and industrial loans
Owner occupied CRE		$	3,539	$	3,539	$	3,568	$	3,568
Commercial business		1,244		3,996		1,210		5,023
Total		4,783		7,535		4,778		8,591
Consumer loans
Single family		2,325		2,918		1,324		2,802
Home equity and other		52		1,393		23		808
Total		2,377		4,311		1,347		3,610
Total nonaccrual loans		$	7,160	$	11,846	$	6,125	$	12,201

Schedule of Loans Past Due

The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class:

	At March 31, 2022
	Past Due and Still Accruing
(in thousands)	30-59 days			60-89 days			90 days or more				Nonaccrual			Total past due and nonaccrual (3)			Current			Total loans
CRE
Non-owner occupied CRE	$	—		$	—		$	—			$	—		$	—		$	699,277		$	699,277
Multifamily	—			—			—				—			—			2,729,775			2,729,775
Construction/land development
Multifamily construction	—			—			—				—			—			36,827			36,827
CRE construction	—			—			—				—			—			18,099			18,099
Single family construction	—			—			—				—			—			318,800			318,800
Single family construction to permanent	—			—			—				—			—			154,408			154,408
Total	—			—			—				—			—			3,957,186			3,957,186
Commercial and industrial loans
Owner occupied CRE	—			—			—				3,539			3,539			460,817			464,356
Commercial business	—			—			—				3,996			3,996			383,942			387,938
Total	—			—			—				7,535			7,535			844,759			852,294
Consumer loans
Single family	3,753			1,821			6,903			(2)	2,918			15,395			743,891			759,286			(1)
Home equity and other	61			31			—				1,393			1,485			294,239			295,724
Total	3,814			1,852			6,903				4,311			16,880			1,038,130			1,055,010
Total loans	$	3,814		$	1,852		$	6,903			$	11,846		$	24,415		$	5,840,075		$	5,864,490
%	0.07		%	0.03		%	0.12		%		0.20		%	0.42		%	99.58		%	100.00		%

	At December 31, 2021
	Past Due and Still Accruing
(in thousands)	30-59 days			60-89 days			90 days or more				Nonaccrual			Total past due and nonaccrual (3)			Current			Total loans
CRE
Non-owner occupied CRE	$	—		$	—		$	—			$	—		$	—		$	705,359		$	705,359
Multifamily	—			—			—				—			—			2,415,359			2,415,359
Construction/land development
Multifamily construction	—			—			—				—			—			37,861			37,861
CRE construction	—			—			—				—			—			14,172			14,172
Single family construction	—			—			—				—			—			296,027			296,027
Single family construction to permanent	—			—			—				—			—			148,084			148,084
Total	—			—			—				—			—			3,616,862			3,616,862
Commercial and industrial loans
Owner occupied CRE	—			—			—				3,568			3,568			454,138			457,706
Commercial business	198			—			—				5,023			5,221			396,651			401,872
Total	198			—			—				8,591			8,789			850,789			859,578
Consumer loans
Single family	892			820			6,717			(2)	2,802			11,231			752,100			763,331			(1)
Home equity and other	118			74			—				808			1,000			302,078			303,078
Total	1,010			894			6,717				3,610			12,231			1,054,178			1,066,409
Total loans	$	1,208		$	894		$	6,717			$	12,201		$	21,020		$	5,521,829		$	5,542,849
%	0.02		%	0.02		%	0.12		%		0.22		%	0.38		%	99.62		%	100.00		%

(1)Includes $7.0 million and $7.3 million of loans at March 31, 2022 and December 31, 2021, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements.

(2)FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss.

(3)Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.0 million and $8.4 million at March 31, 2022 and December 31, 2021, respectively.

Schedule of Loan Modifications

The following tables provide information related to loans modified during the quarter ended March 31, 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted:

(in thousands)	Significant Payment Delay
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	153	0.02	%

(in thousands)	Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	37	—	%

(in thousands)	Interest Rate Reduction and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	1,110	0.15	%

(in thousands)	Significant Payment Delay and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	6,397	0.84	%
Home equity and other	52		0.02	%

(in thousands)	Interest Rate Reduction, Significant Payment Delay and Term Extension
Loan Type	Amortized Cost Basis at March 31, 2022		% of Total Class of Financing Receivable
Single family	$	5,762	0.76	%

Schedule of Financial Effects of Loan Modifications

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty:

Loan Type	Financial Effect of:
	Interest Rate Reduction
Single family	Reduced weighted-average contractual interest rate from 4.28% to 3.25%.
	Significant Payment Delay
Single family	Provided payment deferrals to borrowers. A weighted average 0.3% of loan balances were capitalized and added to the remaining term of the loan.
Home equity and other	Provided payment deferrals to borrowers. A weighted average 6.3% of loan balances were capitalized and added to the remaining term of the loan.
	Term Extension
Single family	Added a weighted average 3.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers.
Home equity and other	Added a weighted average 16.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers.

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DEPOSITS - (Tables)

3 Months Ended

Mar. 31, 2022

Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract]

Deposit Balances, Including Stated Rates

Deposit balances, including their weighted average rates, were as follows: 

	At March 31, 2022				At December 31, 2021
(dollars in thousands)	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Noninterest-bearing demand deposits	$	1,654,229	—	%	$	1,617,069	—	%
Interest-bearing demand deposits	591,148		0.10	%	513,810		0.10	%
Savings	309,462		0.06	%	302,389		0.06	%
Money market	2,800,215		0.18	%	2,806,313		0.15	%
Certificates of deposit	915,481		0.45	%	906,928		0.51	%
Total	$	6,270,535	0.16	%	$	6,146,509	0.15	%

Certificates of Deposit Outstanding

Certificates of deposit outstanding mature as follows: 

(in thousands)	March 31, 2022
Within one year	$	761,588
One to two years	133,251
Two to three years	16,491
Three to four years	2,756
Four to five years	1,395
Total	$	915,481

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LONG-TERM DEBT (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The Subordinated Debt Securities outstanding as of March 31, 2022 and December 31, 2021 are as follows:

	HomeStreet Statutory Trust
(dollars in thousands)	I	II	III	IV
Date issued	June 2005	September 2005	February 2006	March 2007
Amount	$5,155	$20,619	$20,619	$15,464
Interest rate	3 MO LIBOR + 1.70%	3 MO LIBOR + 1.50%	3 MO LIBOR + 1.37%	3 MO LIBOR + 1.68%
Maturity date	June 2035	December 2035	March 2036	June 2037
Call option (1)	Quarterly	Quarterly	Quarterly	Quarterly

(1) Call options are exercisable at par and are callable, without penalty on a quarterly basis, starting five years after issuance.

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DERIVATIVES AND HEDGING ACTIVITIES - (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amount and Fair Value for Derivatives

The notional amounts and fair values for derivatives, which are included in other assets or accounts payable and other liabilities on the consolidated balance sheet, consist of the following: 

	At March 31, 2022
	Notional amount		Fair value derivatives
(in thousands)			Asset		Liability
Forward sale commitments	$	670,018	$	5,079	$	(3,528)
Interest rate lock commitments	100,992		683		(605)
Interest rate swaps	276,561		5,619		(5,620)
Futures	93,200		97		—
Options	30,000		389		—
Total derivatives before netting	$	1,170,771	11,867		(9,753)
Netting adjustment/Cash collateral (1)			(9,096)		3,072
Carrying value on consolidated balance sheet			$	2,771	$	(6,681)

	At December 31, 2021
	Notional amount		Fair value derivatives
(in thousands)			Asset		Liability
Forward sale commitments	$	793,208	$	723	$	(640)
Interest rate lock commitments	115,025		2,487		(3)
Interest rate swaps	287,352		4,381		(4,541)
Futures	139,900		334		—
Total derivatives before netting	$	1,335,485	7,925		(5,184)
Netting adjustment/Cash collateral (1)			1,355		3,921
Carrying value on consolidated balance sheet			$	9,280	$	(1,263)

(1)    Includes net cash collateral received of $6.0 million and paid of $5.3 million at March 31, 2022 and December 31, 2021, respectively.

Fair Value, Concentration of Risk

The following table presents gross fair value and net carrying value information about derivative instruments:

(in thousands)	Gross fair value		Netting adjustments/ Cash collateral (1)		Carrying value
At March 31, 2022
Derivative assets	$	11,867	$	(9,096)	$	2,771
Derivative liabilities	(9,753)		3,072		(6,681)
At December 31, 2021
Derivative assets	$	7,925	$	1,355	$	9,280
Derivative liabilities	(5,184)		3,921		(1,263)

(1) Includes net cash collateral received of $6.0 million and paid of $5.3 million at March 31, 2022 and December 31, 2021, respectively.

Net Gains (Losses) Recognized on Economic Hedge Derivatives

The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:

	Quarter Ended March 31,
(in thousands)	2022		2021
Recognized in noninterest income:
Net gain (loss) on loan origination and sale activities (1)	$	4,613	$	3,858
Loan servicing income (loss) (2)	(9,439)		(12,591)
Other (3)	159		299

(1)Comprised of IRLCs and forward contracts used as an economic hedge of loans held for sale.

(2)Comprised of interest rate swaps, interest rate swaptions, futures, US Treasury notes and US Treasury options and forward contracts used as economic hedges of single family MSRs.

(3)Impact of interest rate swap agreements executed with commercial banking customers.

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MORTGAGE BANKING OPERATIONS - (Tables)

3 Months Ended

Mar. 31, 2022

Mortgage Banking [Abstract]

Mortgage Loans on Real Estate, by Loan

LHFS consisted of the following:

(in thousands)	At March 31, 2022		At December 31, 2021
Single family	$	48,994	$	128,041
CRE, multifamily and SBA	10,156		48,090
Total	$	59,150	$	176,131

Loans sold consisted of the following for the periods indicated: 

	Quarter Ended March 31,
(in thousands)	2022		2021
Single family	$	323,070	$	573,040
CRE, multifamily and SBA	49,137		257,717
Total	$	372,207	$	830,757

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 March 31,
(in thousands)	2022		2021
Single family	$	6,169	$	26,187
CRE, multifamily and SBA	2,105		7,272
Total	$	8,274	$	33,459

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 March 31, 2022		At December 31, 2021
Single family	$	5,545,145	$	5,539,180
CRE, multifamily and SBA	2,035,801		2,031,087
Total	$	7,580,946	$	7,570,267

Mortgage Repurchase Losses

The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses:

	Quarter Ended March 31,
(in thousands)	2022		2021
Balance, beginning of period	$	1,312	$	2,122
Additions, net of adjustments (1)	358		(20)
Realized (losses) recoveries, net (2)	(32)		(161)
Balance, end of period	$	1,638	$	1,941

(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 March 31,
(in thousands)	2022		2021
Servicing income, net:
Servicing fees and other	$	8,321	$	8,913
Amortization of single family MSRs (1)	(3,425)		(5,693)
Amortization of multifamily and SBA MSRs	(1,712)		(1,344)
Total	3,184		1,876
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)	10,303		11,463
Net gain (loss) from economic hedging	(10,183)		(12,591)
Total	120		(1,128)
Loan servicing income (loss)	$	3,304	$	748

(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.

Changes in Single Family MSRs Measured at Fair Value

The changes in single family MSRs measured at fair value are as follows:

	Quarter Ended March 31,
(in thousands)	2022		2021
Beginning balance	$	61,584	$	49,966
Additions and amortization:
Originations	3,916		6,616
Amortization (1)	(3,425)		(5,693)
Net additions and amortization	491		923
Changes in fair value assumptions (2)	10,303		11,463
Ending balance	$	72,378	$	62,352

(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 March 31,
(rates per annum) (1)	2022		2021
Constant prepayment rate ("CPR") (2)	9.38	%	8.37	%
Discount rate	8.34	%	8.37	%

(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 March 31, 2022			At December 31, 2021
	Range of Inputs	Average (1)		Range of Inputs	Average (1)
CPRs	7.38% - 16.66%	9.42	%	7.90% - 17.35%	10.35	%
Discount Rates	8.10% - 15.18%	9.05	%	6.94% - 13.96%	7.97	%

(1) Weighted averages of all the inputs within the range.

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 March 31, 2022
Fair value of single family MSR	$	72,378
Expected weighted-average life (in years)	7.14
CPR
Impact on fair value of 25 basis points adverse change in interest rates	$	(2,208)
Impact on fair value of 50 basis points adverse change in interest rates	$	(4,909)
Discount rate
Impact on fair value of 100 basis points increase	$	(3,217)
Impact on fair value of 200 basis points increase	$	(6,187)

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 March 31,
(in thousands)	2022		2021
Beginning balance	$	39,415	$	35,774
Originations	1,576		5,196
Amortization	(1,712)		(1,344)
Ending balance	$	39,279	$	39,626

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EARNINGS PER SHARE - (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table summarizes the calculation of earnings per share: 

	Quarter Ended March 31,
(in thousands, except share and per share data)	2022		2021
Net income	$	19,951	$	29,663
Weighted average shares:
Basic weighted-average number of common shares outstanding	19,585,753		21,637,671
Dilutive effect of outstanding common stock equivalents	206,160		324,157
Diluted weighted-average number of common shares outstanding	19,791,913		21,961,828
Net income per share:
Basic earnings per share	$	1.02	$	1.37
Diluted earnings per share	1.01		1.35

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FAIR VALUE MEASUREMENT - (Tables)

3 Months Ended

Mar. 31, 2022

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 7, 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.
Interest rate lock commitments	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, 2022
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets:
Trading securities - U.S. Treasury securities	$	19,313	$	19,313	$	—	$	—
Investment securities AFS
Mortgage backed securities:
Residential	29,187		—		26,954		2,233
Commercial	66,392		—		66,392		—
Collateralized mortgage obligations:
Residential	266,492		—		266,492		—
Commercial	134,879		—		134,879		—
Municipal bonds	515,139		—		515,139		—
Corporate debt securities	26,373		—		26,299		74
U.S. Treasury securities	21,722		—		21,722		—
Single family LHFS	48,994		—		48,994		—
Single family LHFI	6,981		—		—		6,981
Single family mortgage servicing rights	72,378		—		—		72,378
Derivatives
Futures	97		97		—		—
Forward sale commitments	5,079		—		5,079		—
Options	389		389		—		—
Interest rate lock commitments	683		—		—		683
Interest rate swaps	5,619		—		5,619		—
Total assets	$	1,219,717	$	19,799	$	1,117,569	$	82,349
Liabilities:
Derivatives
Forward sale commitments	3,528		—		3,528		—
Interest rate lock commitments	605		—		—		605
Interest rate swaps	5,620		—		5,620		—
Total liabilities	$	9,753	$	—	$	9,148	$	605

	At December 31, 2021
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets:
Investment securities AFS
Mortgage backed securities:
Residential	$	32,963	$	—	$	30,556	$	2,407
Commercial	62,792		—		62,792		—
Collateralized mortgage obligations:
Residential	187,394		—		187,394		—
Commercial	136,659		—		136,659		—
Municipal bonds	539,923		—		539,923		—
Corporate debt securities	19,616		—		19,541		75
U.S. Treasury securities	23,175		—		23,175		—
Single family LHFS	128,041		—		128,041		—
Single family LHFI	7,287		—		—		7,287
Single family mortgage servicing rights	61,584		—		—		61,584
Derivatives
Futures	334		334		—		—
Forward sale commitments	723		—		723		—
Interest rate lock commitments	2,487		—		—		2,487
Interest rate swaps	4,381		—		4,381		—
Total assets	$	1,207,359	$	334	$	1,133,185	$	73,840
Liabilities:
Derivatives
Forward sale commitments	$	640	$	—	$	640	$	—
Interest rate lock commitments	3		—		—		3
Interest rate swaps	4,541		—		4,541		—
Total liabilities	$	5,184	$	—	$	5,181	$	3

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, 2022
Investment securities AFS	$	2,307	Income approach	Implied spread to benchmark interest rate curve	2.00%	2.00%	2.00%
Single family LHFI	6,981		Income approach	Implied spread to benchmark interest rate curve	2.49%	4.76%	3.14%
Interest rate lock commitments, net	78		Income approach	Fall-out factor	0.20%	29.60%	11.71%
				Value of servicing	0.45%	1.39%	1.06%
December 31, 2021
Investment securities AFS	$	2,482	Income approach	Implied spread to benchmark interest rate curve	2.00%	2.00%	2.00%
Single family LHFI	7,287		Income approach	Implied spread to benchmark interest rate curve	2.39%	7.96%	3.56%
Interest rate lock commitments, net	2,484		Income approach	Fall-out factor	0.15%	21.93%	8.44%
				Value of servicing	0.35%	1.46%	1.15%

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, 2022
Investment securities AFS	$	2,482	$	—	$	—	$	(48)	$	(127)	$	2,307
Single family LHFI	7,287		—		—		—		(306)		6,981
Quarter Ended March 31, 2021
Investment securities AFS	$	2,710	$	—	$	—	$	(48)	$	(172)	$	2,490
Single family LHFI	7,108		360		—		(3,191)		47		4,324

(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)	2022		2021
Beginning balance, net	$	2,484	$	17,392
Total realized/unrealized gains (losses)	(2,177)		(3,469)
Settlements	(229)		(7,435)
Ending balance, net	$	78	$	6,488

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, 2022
LHFI (1)	$	904	$	10

(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, 2022
(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	73,862	$	73,862	$	73,862	$	—	$	—
Investment securities HTM	4,143		4,134		—		4,134		—
LHFI	5,819,565		5,712,390		—		—		5,712,390
LHFS – multifamily and other	10,156		10,248		—		10,248		—
Mortgage servicing rights – multifamily and SBA	39,279		43,453		—		—		43,453
Federal Home Loan Bank stock	19,596		19,596		—		19,596		—
Other assets - GNMA EBO loans	9,940		9,940		—		—		9,940
Liabilities:
Certificates of deposit	$	915,481	$	908,030	$	—	$	908,030	$	—
Borrowings	273,000		273,000				273,000
Long-term debt	224,137		214,853		—		214,853		—

	At December 31, 2021
(in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	65,214	$	65,214	$	65,214	$	—	$	—
Investment securities HTM	4,169		4,305		—		4,305		—
LHFI	5,488,439		5,588,719		—		—		5,588,719
LHFS – multifamily and other	48,090		48,425		—		48,425		—
Mortgage servicing rights – multifamily and SBA	39,415		43,199		—		—		43,199
Federal Home Loan Bank stock	10,361		10,361		—		10,361		—
Other assets-GNMA EBO loans	12,342		12,342		—		—		12,342
Liabilities:
Certificates of deposit	$	906,928	$	906,064	$	—	$	906,064	$	—
Borrowings	41,000		41,000		—		41,000		—
Long-term debt	126,026		116,845		—		116,845		—

Fair Value Option

Single family loans held for sale accounted under the fair value option are measured initially at fair value with subsequent changes in fair value recognized in earnings. Gains and losses from such changes in fair value are recognized in net gain on mortgage loan origination and sale activities within noninterest income. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in fair value of the related servicing asset, resulting in revaluations adjustments to the recorded fair value. The use of the fair value option allows the change in the fair value of loans to more effectively offset the change in fair value of derivative instruments that are used as economic hedges of loans held for sale.

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, 2022						At December 31, 2021
(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	$	48,994	$	49,457	$	(463)	$	128,041	$	124,933	$	3,108

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, 2022						At December 31, 2021
(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	$	48,994	$	49,457	$	(463)	$	128,041	$	124,933	$	3,108

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INVESTMENT SECURITIES - Unrealized Gain/Loss on Investment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
AFS
Amortized cost	$ 1,100,881	$ 975,763
Gross unrealized gains	3,264	30,084
Gross unrealized losses	(43,961)	(3,325)
Fair value	1,060,184	1,002,522
Residential mortgage-backed securities
AFS
Amortized cost	30,689	32,905
Gross unrealized gains	6	396
Gross unrealized losses	(1,508)	(338)
Fair value	29,187	32,963
Commercial mortgage-backed securities
AFS
Amortized cost	70,312	62,094
Gross unrealized gains	38	933
Gross unrealized losses	(3,958)	(235)
Fair value	66,392	62,792
Residential collateralized mortgage obligations
AFS
Amortized cost	276,246	186,703
Gross unrealized gains	186	2,012
Gross unrealized losses	(9,940)	(1,321)
Fair value	266,492	187,394
Commercial collateralized mortgage obligations
AFS
Amortized cost	138,168	135,102
Gross unrealized gains	135	1,890
Gross unrealized losses	(3,424)	(333)
Fair value	134,879	136,659
Municipal bonds
AFS
Amortized cost	535,353	516,693
Gross unrealized gains	2,802	24,154
Gross unrealized losses	(23,016)	(924)
Fair value	515,139	539,923
HTM
Amortized cost	4,143	4,169
Gross unrealized gains	8	136
Gross unrealized losses	(17)	0
Fair value	4,134	4,305
Corporate debt securities
AFS
Amortized cost	26,850	18,918
Gross unrealized gains	97	699
Gross unrealized losses	(574)	(1)
Fair value	26,373	19,616
U.S. Treasury securities
AFS
Amortized cost	23,263	23,348
Gross unrealized gains	0	0
Gross unrealized losses	(1,541)	(173)
Fair value	$ 21,722	$ 23,175

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INVESTMENT SECURITIES - Continuous Unrealized Loss on Investment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
AFS
AFS, Less than 12 months, Gross unrealized losses	$ (38,540)	$ (2,503)
AFS, Less than 12 months, Fair value	779,641	181,901
AFS, Twelve months or more, Gross unrealized losses	(5,421)	(822)
AFS, Twelve months or more, Fair value	43,297	15,712
AFS, Total, Gross unrealized losses	(43,961)	(3,325)
AFS, Total, Fair value	822,938	197,613
Residential mortgage-backed securities
AFS
AFS, Less than 12 months, Gross unrealized losses	(1,064)	(38)
AFS, Less than 12 months, Fair value	25,716	5,324
AFS, Twelve months or more, Gross unrealized losses	(444)	(300)
AFS, Twelve months or more, Fair value	2,233	2,406
AFS, Total, Gross unrealized losses	(1,508)	(338)
AFS, Total, Fair value	27,949	7,730
Commercial mortgage-backed securities
AFS
AFS, Less than 12 months, Gross unrealized losses	(3,958)	(235)
AFS, Less than 12 months, Fair value	58,243	18,127
AFS, Twelve months or more, Gross unrealized losses	0	0
AFS, Twelve months or more, Fair value	0	0
AFS, Total, Gross unrealized losses	(3,958)	(235)
AFS, Total, Fair value	58,243	18,127
Residential collateralized mortgage obligations
AFS
AFS, Less than 12 months, Gross unrealized losses	(7,475)	(1,007)
AFS, Less than 12 months, Fair value	177,481	53,068
AFS, Twelve months or more, Gross unrealized losses	(2,465)	(314)
AFS, Twelve months or more, Fair value	21,315	7,116
AFS, Total, Gross unrealized losses	(9,940)	(1,321)
AFS, Total, Fair value	198,796	60,184
Commercial collateralized mortgage obligations
AFS
AFS, Less than 12 months, Gross unrealized losses	(2,802)	(135)
AFS, Less than 12 months, Fair value	103,919	14,806
AFS, Twelve months or more, Gross unrealized losses	(622)	(198)
AFS, Twelve months or more, Fair value	7,608	5,132
AFS, Total, Gross unrealized losses	(3,424)	(333)
AFS, Total, Fair value	111,527	19,938
Municipal bonds
AFS
AFS, Less than 12 months, Gross unrealized losses	(21,126)	(914)
AFS, Less than 12 months, Fair value	375,801	64,237
AFS, Twelve months or more, Gross unrealized losses	(1,890)	(10)
AFS, Twelve months or more, Fair value	12,141	1,058
AFS, Total, Gross unrealized losses	(23,016)	(924)
AFS, Total, Fair value	387,942	65,295
HTM
HFM, Less than 12 months, Gross unrealized losses	(17)
HFM, Less than 12 months, Fair value	2,474
HFM, 12 months or more, Gross unrealized losses	0
HFM, 12 months or more, Fair value	0
HFM, Total, Gross unrealized losses	(17)
HTM, Total, Fair value	2,474
Corporate debt securities
AFS
AFS, Less than 12 months, Gross unrealized losses	(574)	(1)
AFS, Less than 12 months, Fair value	16,758	3,164
AFS, Twelve months or more, Gross unrealized losses	0	0
AFS, Twelve months or more, Fair value	0	0
AFS, Total, Gross unrealized losses	(574)	(1)
AFS, Total, Fair value	16,758	3,164
U.S. Treasury securities
AFS
AFS, Less than 12 months, Gross unrealized losses	(1,541)	(173)
AFS, Less than 12 months, Fair value	21,723	23,175
AFS, Twelve months or more, Gross unrealized losses	0	0
AFS, Twelve months or more, Fair value	0	0
AFS, Total, Gross unrealized losses	(1,541)	(173)
AFS, Total, Fair value	$ 21,723	$ 23,175

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INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Tax exempt interest income on available-for-sale securities	$ 2,700	$ 2,400
Mortgage Backed Securities and Collateralized Mortgage Obligations
Debt Securities, Available-for-sale [Line Items]
Weighted average yield	1.88%		1.82%
US Treasury Notes Securities | Not Designated as Hedging Instrument, Economic Hedge
Debt Securities, Available-for-sale [Line Items]
Trading securities	$ 19,000
Unrealized loss on trading securities	$ 700

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INVESTMENT SECURITIES - Weighted Average Yield (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
AFS
Fair value	$ 1,060,184	$ 1,002,522
Total
AFS
Due within one year, Fair value	$ 4,159	$ 4,933
Weighted Average Yield, due within one year	3.57%	3.79%
Due in one through five years, Fair value	$ 19,248	$ 20,929
Weighted Average Yield, due after one year through five years	3.32%	3.37%
Due after five years through ten years, Fair value	$ 109,141	$ 104,253
Weighted Average Yield, due after five years through ten years	3.13%	3.23%
Due after 10 years, Fair value	$ 430,686	$ 452,599
Weighted Average Yield, due after ten years	3.03%	3.23%
Fair value	$ 563,234	$ 582,714
Weighted Average Yield, Total	3.07%	3.24%
Municipal bonds
AFS
Due within one year, Fair value	$ 4,159	$ 4,933
Weighted Average Yield, due within one year	3.57%	3.79%
Due in one through five years, Fair value	$ 13,675	$ 14,366
Weighted Average Yield, due after one year through five years	3.23%	3.26%
Due after five years through ten years, Fair value	$ 66,619	$ 68,025
Weighted Average Yield, due after five years through ten years	3.40%	3.60%
Due after 10 years, Fair value	$ 430,686	$ 452,599
Weighted Average Yield, due after ten years	3.03%	3.23%
Fair value	$ 515,139	$ 539,923
Weighted Average Yield, Total	3.09%	3.28%
HTM
Due within one year, Fair value	$ 1,659	$ 1,684
Weighted Average Yield, due within one year	2.91%	2.86%
Due in one through five years, Fair value	$ 2,475	$ 2,621
Weighted Average Yield, due after one year through five years	2.07%	2.12%
Due after five years through ten years, Fair value	$ 0	$ 0
Weighted Average Yield, due after five years through ten years	0.00%	0.00%
Due after ten years, Fair value	$ 0	$ 0
Weighted Average Yield, due after ten years	0.00%	0.00%
Fair Value	$ 4,134	$ 4,305
Weighted Average Yield, Total	2.41%	2.42%
Corporate debt securities
AFS
Due within one year, Fair value	$ 0	$ 0
Weighted Average Yield, due within one year	0.00%	0.00%
Due in one through five years, Fair value	$ 5,573	$ 6,563
Weighted Average Yield, due after one year through five years	3.54%	3.60%
Due after five years through ten years, Fair value	$ 20,800	$ 13,053
Weighted Average Yield, due after five years through ten years	4.39%	5.03%
Due after 10 years, Fair value	$ 0	$ 0
Weighted Average Yield, due after ten years	0.00%	0.00%
Fair value	$ 26,373	$ 19,616
Weighted Average Yield, Total	4.22%	4.55%
U.S. Treasury securities
AFS
Due within one year, Fair value	$ 0	$ 0
Weighted Average Yield, due within one year	0.00%	0.00%
Due in one through five years, Fair value	$ 0	$ 0
Weighted Average Yield, due after one year through five years	0.00%	0.00%
Due after five years through ten years, Fair value	$ 21,722	$ 23,175
Weighted Average Yield, due after five years through ten years	1.20%	1.27%
Due after 10 years, Fair value	$ 0	$ 0
Weighted Average Yield, due after ten years	0.00%	0.00%
Fair value	$ 21,722	$ 23,175
Weighted Average Yield, Total	1.20%	1.27%

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INVESTMENT SECURITIES - Realized Gain/Loss on Investment (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 962
Gross gains	71
Gross losses	$ 0

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INVESTMENT SECURITIES - Pledged to Secure Borrowings And Public Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Washington, Oregon and California State to secure public deposits	$ 201,444	$ 206,153
Other securities pledged	4,972	5,258
Total securities pledged as collateral	$ 206,416	$ 211,411

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LOANS AND CREDIT QUALITY - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) portfolioSegment	Dec. 31, 2021 USD ($)
Financing Receivable, Impaired [Line Items]
Number of portfolio segments | portfolioSegment	2
Allowance for unfunded commitments	$ 2,600	$ 2,400
Accrued interest receivable	18,100	17,800
Total past due and nonaccrual	$ 24,415	$ 21,020
California | Multifamily
Financing Receivable, Impaired [Line Items]
Percentage of loan portfolio	34.00%	33.00%
Federal Home Loan Bank Advances
Financing Receivable, Impaired [Line Items]
Loans pledged as collateral	$ 3,200,000	$ 2,800,000
Federal Reserve Bank Advances
Financing Receivable, Impaired [Line Items]
Loans pledged as collateral	$ 421,000	$ 419,000

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LOANS AND CREDIT QUALITY - Loans Held for Investment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Loans held for investment
Total LHFI	$ 5,864,490	$ 5,542,849
Allowance for credit losses	(37,944)	(47,123)	$ (64,047)	$ (64,294)
Loans held for investment	5,826,546	5,495,726
Recurring
Loans held for investment
Single family LHFI	6,981	7,287
Recurring | Level 3
Loans held for investment
Single family LHFI	6,981	7,287
Commercial loans
Loans held for investment
Total LHFI	4,809,480	4,476,440
Commercial loans | Real Estate Sector
Loans held for investment
Total LHFI	3,957,186	3,616,862
Commercial loans | Commercial and Industrial Sector
Loans held for investment
Total LHFI	852,294	859,578
Commercial loans | Non-owner occupied CRE
Loans held for investment
Total LHFI	699,277	705,359
Commercial loans | Multifamily
Loans held for investment
Total LHFI	2,729,775	2,415,359
Commercial loans | Construction/land development
Loans held for investment
Total LHFI	528,134	496,144
Commercial loans | Owner occupied CRE
Loans held for investment
Total LHFI	464,356	457,706
Commercial loans | Commercial business
Loans held for investment
Total LHFI	387,938	401,872
Consumer loans
Loans held for investment
Total LHFI	1,055,010	1,066,409
Consumer loans | Single family
Loans held for investment
Total LHFI	759,286	763,331
Consumer loans | Home equity and other
Loans held for investment
Total LHFI	$ 295,724	$ 303,078

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LOANS AND CREDIT QUALITY - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
ACL for LHFI
Beginning balance	$ 47,123	$ 64,294
Provision for credit losses	(9,223)	(371)
Net (charge-offs) recoveries	44	124
Ending balance	37,944	64,047
Allowance for unfunded commitments:
Beginning balance	2,404	1,588
Provision for credit losses	223	371
Allowance for credit losses - loans	(9,223)	(371)
Ending balance	2,627	1,959
Total	$ (9,000)	$ 0

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LOANS AND CREDIT QUALITY - Activity in Allowance for Credit Losses by Loan Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Allowance for credit losses by loan portfolio
Beginning balance	$ 47,123	$ 64,294
Charge-offs	(44)	(126)
Recoveries	88	250
Provision	(9,223)	(371)
Ending balance	37,944	64,047
Commercial loans | Real Estate Sector
Allowance for credit losses by loan portfolio
Beginning balance	21,486	27,935
Charge-offs	0	0
Recoveries	0	0
Provision	(1,400)	227
Ending balance	20,086	28,162
Commercial loans | Commercial and Industrial Sector
Allowance for credit losses by loan portfolio
Beginning balance	17,279	22,037
Charge-offs	(11)	0
Recoveries	24	74
Provision	(6,846)	260
Ending balance	10,446	22,371
Commercial loans | Non-owner occupied CRE
Allowance for credit losses by loan portfolio
Beginning balance	7,509	8,845
Charge-offs	0	0
Recoveries	0	0
Provision	(5,215)	373
Ending balance	2,294	9,218
Commercial loans | Multifamily
Allowance for credit losses by loan portfolio
Beginning balance	5,854	6,072
Charge-offs	0	0
Recoveries	0	0
Provision	2,573	897
Ending balance	8,427	6,969
Commercial loans | Multifamily construction
Allowance for credit losses by loan portfolio
Beginning balance	507	4,903
Charge-offs	0	0
Recoveries	0	0
Provision	(51)	(967)
Ending balance	456	3,936
Commercial loans | CRE construction
Allowance for credit losses by loan portfolio
Beginning balance	150	1,670
Charge-offs	0	0
Recoveries	0	0
Provision	34	238
Ending balance	184	1,908
Commercial loans | Single family construction
Allowance for credit losses by loan portfolio
Beginning balance	6,411	5,130
Charge-offs	0	0
Recoveries	0
Provision	1,324	(123)
Ending balance	7,735	5,007
Commercial loans | Single family construction to permanent
Allowance for credit losses by loan portfolio
Beginning balance	1,055	1,315
Charge-offs	0	0
Recoveries	0	0
Provision	(65)	(191)
Ending balance	990	1,124
Commercial loans | Owner occupied CRE
Allowance for credit losses by loan portfolio
Beginning balance	5,006	4,994
Charge-offs	0	0
Recoveries	0	0
Provision	(1,470)	272
Ending balance	3,536	5,266
Commercial loans | Commercial business
Allowance for credit losses by loan portfolio
Beginning balance	12,273	17,043
Charge-offs	(11)	0
Recoveries	24	74
Provision	(5,376)	(12)
Ending balance	6,910	17,105
Consumer loans
Allowance for credit losses by loan portfolio
Beginning balance	8,358	14,322
Charge-offs	(33)	(126)
Recoveries	64	176
Provision	(977)	(858)
Ending balance	7,412	13,514
Consumer loans | Single family
Allowance for credit losses by loan portfolio
Beginning balance	4,394	6,906
Charge-offs	0	(70)
Recoveries	4	120
Provision	(636)	(221)
Ending balance	3,762	6,735
Consumer loans | Home equity and other
Allowance for credit losses by loan portfolio
Beginning balance	3,964	7,416
Charge-offs	(33)	(56)
Recoveries	60	56
Provision	(341)	(637)
Ending balance	$ 3,650	$ 6,779

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LOANS AND CREDIT QUALITY - Loans Credit Quality by Year and Type (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	$ 524,516	$ 1,983,151
Financing receivable, year two	1,970,511	976,561
Financing receivable, year three	944,211	685,228
Financing receivable, year four	607,468	343,695
Financing receivable, year five	320,530	324,120
Financing receivable, prior to year five	967,847	704,248
Revolving	519,620	514,380
Revolving-term	9,787	11,466
Total	5,864,490	5,542,849
Recurring
Financing Receivable, before Allowance for Credit Loss [Abstract]
Single family LHFI	6,981	7,287
Level 3 | Recurring
Financing Receivable, before Allowance for Credit Loss [Abstract]
Single family LHFI	6,981	7,287
30-59 days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	3,814	1,208
60-89 days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	1,852	894
90+ days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Total	6,903	6,717
Commercial loans
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	479,156	1,805,033
Financing receivable, year two	1,790,259	819,724
Financing receivable, year three	791,434	621,614
Financing receivable, year four	557,066	276,648
Financing receivable, year five	263,109	227,302
Financing receivable, prior to year five	689,035	496,716
Revolving	234,451	223,272
Revolving-term	4,970	6,131
Total	4,809,480	4,476,440
Commercial loans | Non-owner occupied CRE
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	23,614	68,647
Financing receivable, year two	68,572	50,571
Financing receivable, year three	50,276	169,711
Financing receivable, year four	158,484	130,877
Financing receivable, year five	121,836	100,674
Financing receivable, prior to year five	274,775	183,024
Revolving	853	963
Revolving-term	867	892
Total	699,277	705,359
Commercial loans | Non-owner occupied CRE | Pass
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	23,614	68,647
Financing receivable, year two	68,572	50,571
Financing receivable, year three	50,276	169,711
Financing receivable, year four	158,484	130,877
Financing receivable, year five	121,836	100,674
Financing receivable, prior to year five	274,775	183,024
Revolving	853	963
Revolving-term	867	892
Total	699,277	705,359
Commercial loans | Non-owner occupied CRE | Special Mention
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Non-owner occupied CRE | Substandard
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Multifamily
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	364,731	1,315,204
Financing receivable, year two	1,311,572	561,666
Financing receivable, year three	559,882	286,826
Financing receivable, year four	253,625	60,372
Financing receivable, year five	60,103	26,065
Financing receivable, prior to year five	179,862	165,225
Revolving	0	1
Revolving-term	0	0
Total	2,729,775	2,415,359
Commercial loans | Multifamily | Pass
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	364,731	1,315,204
Financing receivable, year two	1,311,572	561,666
Financing receivable, year three	551,187	286,826
Financing receivable, year four	233,790	60,372
Financing receivable, year five	60,103	26,065
Financing receivable, prior to year five	179,862	165,225
Revolving	0	1
Revolving-term	0	0
Total	2,701,245	2,415,359
Commercial loans | Multifamily | Special Mention
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	8,695	0
Financing receivable, year four	19,835	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	28,530	0
Commercial loans | Multifamily | Substandard
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Multifamily construction
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	7,825
Financing receivable, year two	12,163	22,863
Financing receivable, year three	24,664	7,173
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	36,827	37,861
Commercial loans | Multifamily construction | Pass
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	7,825
Financing receivable, year two	12,163	22,863
Financing receivable, year three	24,664	7,173
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	36,827	37,861
Commercial loans | Multifamily construction | Special Mention
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Multifamily construction | Substandard
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | CRE construction
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	7,694
Financing receivable, year two	11,668	3,960
Financing receivable, year three	3,959	0
Financing receivable, year four	0	1,962
Financing receivable, year five	1,924	0
Financing receivable, prior to year five	548	556
Revolving	0	0
Revolving-term	0	0
Total	18,099	14,172
Commercial loans | CRE construction | Pass
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	7,694
Financing receivable, year two	11,668	3,960
Financing receivable, year three	3,959	0
Financing receivable, year four	0	1,962
Financing receivable, year five	1,924	0
Financing receivable, prior to year five	548	556
Revolving	0	0
Revolving-term	0	0
Total	18,099	14,172
Commercial loans | CRE construction | Special Mention
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | CRE construction | Substandard
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Single family construction
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	31,784	146,595
Financing receivable, year two	142,275	35,640
Financing receivable, year three	24,226	14,509
Financing receivable, year four	12,434	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	76	77
Revolving	108,005	99,206
Revolving-term	0	0
Total	318,800	296,027
Commercial loans | Single family construction | Pass
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	31,784	146,595
Financing receivable, year two	142,275	35,640
Financing receivable, year three	24,226	14,509
Financing receivable, year four	12,434	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	76	77
Revolving	108,005	99,206
Revolving-term	0	0
Total	318,800	296,027
Commercial loans | Single family construction | Special Mention
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Single family construction | Substandard
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Single family construction to permanent
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	6,613	90,311
Financing receivable, year two	106,419	42,636
Financing receivable, year three	29,026	13,362
Financing receivable, year four	10,575	1,775
Financing receivable, year five	1,775	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	154,408	148,084
Commercial loans | Single family construction to permanent | Current
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	6,613	90,311
Financing receivable, year two	106,419	42,636
Financing receivable, year three	29,026	13,362
Financing receivable, year four	10,575	1,775
Financing receivable, year five	1,775	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	154,408	148,084
Commercial loans | Single family construction to permanent | 30-59 days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Single family construction to permanent | 60-89 days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Single family construction to permanent | 90+ days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	0
Revolving	0	0
Revolving-term	0	0
Total	0	0
Commercial loans | Owner occupied CRE
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	20,055	70,902
Financing receivable, year two	70,792	47,536
Financing receivable, year three	47,176	76,088
Financing receivable, year four	75,511	51,023
Financing receivable, year five	49,952	83,212
Financing receivable, prior to year five	198,875	125,248
Revolving	248	798
Revolving-term	1,747	2,899
Total	464,356	457,706
Commercial loans | Owner occupied CRE | Pass
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	20,055	70,902
Financing receivable, year two	70,792	47,536
Financing receivable, year three	47,176	57,423
Financing receivable, year four	57,012	47,716
Financing receivable, year five	46,661	67,042
Financing receivable, prior to year five	164,101	106,659
Revolving	248	798
Revolving-term	1,689	2,839
Total	407,734	400,915
Commercial loans | Owner occupied CRE | Special Mention
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	18,499	2,196
Financing receivable, year five	2,180	6,019
Financing receivable, prior to year five	23,202	145
Revolving	0	0
Revolving-term	0	60
Total	43,881	8,420
Commercial loans | Owner occupied CRE | Substandard
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	18,665
Financing receivable, year four	0	1,111
Financing receivable, year five	1,111	10,151
Financing receivable, prior to year five	11,572	18,444
Revolving	0	0
Revolving-term	58	0
Total	12,741	48,371
Commercial loans | Commercial business
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	32,359	97,855
Financing receivable, year two	66,798	54,852
Financing receivable, year three	52,225	53,945
Financing receivable, year four	46,437	30,639
Financing receivable, year five	27,519	17,351
Financing receivable, prior to year five	34,899	22,586
Revolving	125,345	122,304
Revolving-term	2,356	2,340
Total	387,938	401,872
Commercial loans | Commercial business | Pass
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	32,359	88,139
Financing receivable, year two	58,371	51,453
Financing receivable, year three	48,943	44,882
Financing receivable, year four	36,976	24,711
Financing receivable, year five	23,289	11,859
Financing receivable, prior to year five	27,808	21,258
Revolving	113,186	112,759
Revolving-term	2,131	2,104
Total	343,063	357,165
Commercial loans | Commercial business | Special Mention
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	213	0
Financing receivable, year three	29	7,396
Financing receivable, year four	7,047	0
Financing receivable, year five	838	4,396
Financing receivable, prior to year five	5,264	0
Revolving	7,543	5,613
Revolving-term	212	134
Total	21,146	17,539
Commercial loans | Commercial business | Substandard
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	9,716
Financing receivable, year two	8,214	3,399
Financing receivable, year three	3,253	1,667
Financing receivable, year four	2,414	5,928
Financing receivable, year five	3,392	1,096
Financing receivable, prior to year five	1,827	1,328
Revolving	4,616	3,932
Revolving-term	13	102
Total	23,729	27,168
Consumer loans
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	45,360	178,118
Financing receivable, year two	180,252	156,837
Financing receivable, year three	152,777	63,614
Financing receivable, year four	50,402	67,047
Financing receivable, year five	57,421	96,818
Financing receivable, prior to year five	278,812	207,532
Revolving	285,169	291,108
Revolving-term	4,817	5,335
Total	1,055,010	1,066,409
Consumer loans | Single family
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	44,563	176,110
Financing receivable, year two	178,656	156,360
Financing receivable, year three	152,443	63,221
Financing receivable, year four	50,108	66,515
Financing receivable, year five	57,209	96,302
Financing receivable, prior to year five	276,307	204,823
Revolving	0	0
Revolving-term	0	0
Total	759,286	763,331
Consumer loans | Single family | Current
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	44,563	176,110
Financing receivable, year two	178,656	156,360
Financing receivable, year three	152,443	62,369
Financing receivable, year four	49,114	66,063
Financing receivable, year five	56,757	95,988
Financing receivable, prior to year five	275,042	204,229
Revolving	0	0
Revolving-term	0	0
Total	756,575	761,119
Consumer loans | Single family | 30-59 days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	291
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	872	0
Revolving	0	0
Revolving-term	0	0
Total	872	291
Consumer loans | Single family | 60-89 days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	314
Financing receivable, prior to year five	270	471
Revolving	0	0
Revolving-term	0	0
Total	270	785
Consumer loans | Single family | 90+ days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	0	0
Financing receivable, year three	0	561
Financing receivable, year four	994	452
Financing receivable, year five	452	0
Financing receivable, prior to year five	123	123
Revolving	0	0
Revolving-term	0	0
Total	1,569	1,136
Consumer loans | Home equity and other
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	797	2,008
Financing receivable, year two	1,596	477
Financing receivable, year three	334	393
Financing receivable, year four	294	532
Financing receivable, year five	212	516
Financing receivable, prior to year five	2,505	2,709
Revolving	285,169	291,108
Revolving-term	4,817	5,335
Total	295,724	303,078
Consumer loans | Home equity and other | Current
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	797	2,005
Financing receivable, year two	1,585	474
Financing receivable, year three	334	393
Financing receivable, year four	294	532
Financing receivable, year five	197	516
Financing receivable, prior to year five	2,407	2,609
Revolving	284,426	290,512
Revolving-term	4,755	5,273
Total	294,795	302,314
Consumer loans | Home equity and other | 30-59 days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	3	3
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	0	94
Revolving	57	40
Revolving-term	0	0
Total	60	137
Consumer loans | Home equity and other | 60-89 days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	0
Financing receivable, year two	8	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	15	0
Financing receivable, prior to year five	0	0
Revolving	7	12
Revolving-term	0	62
Total	30	74
Consumer loans | Home equity and other | 90+ days
Financing Receivable, before Allowance for Credit Loss [Abstract]
Financing receivable, year one	0	3
Financing receivable, year two	0	0
Financing receivable, year three	0	0
Financing receivable, year four	0	0
Financing receivable, year five	0	0
Financing receivable, prior to year five	98	6
Revolving	679	544
Revolving-term	62	0
Total	$ 839	$ 553

XML

LOANS AND CREDIT QUALITY - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	$ 5,864,490	$ 5,542,849
Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	4,809,480	4,476,440
Commercial loans | Commercial and Industrial Sector
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	852,294	859,578
Commercial loans | Owner occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	464,356	457,706
Commercial loans | Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	387,938	401,872
Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	1,055,010	1,066,409
Consumer loans | Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	759,286	763,331
Consumer loans | Home equity and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	295,724	303,078
Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	7,177	6,421
Total | Commercial loans | Commercial and Industrial Sector
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	4,783	4,804
Total | Commercial loans | Owner occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	3,539	3,567
Total | Commercial loans | Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	1,244	1,237
Total | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	2,394	1,617
Total | Consumer loans | Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	2,049	1,598
Total | Consumer loans | Home equity and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	345	19
Land
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	1,491	1,473
Land | Commercial loans | Commercial and Industrial Sector
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	1,491	1,473
Land | Commercial loans | Owner occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	1,111	1,111
Land | Commercial loans | Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	380	362
Land | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
Land | Consumer loans | Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
Land | Consumer loans | Home equity and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
1-4 Family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	2,410	1,644
1-4 Family | Commercial loans | Commercial and Industrial Sector
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	16	27
1-4 Family | Commercial loans | Owner occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
1-4 Family | Commercial loans | Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	16	27
1-4 Family | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	2,394	1,617
1-4 Family | Consumer loans | Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	2,049	1,598
1-4 Family | Consumer loans | Home equity and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	345	19
Non-residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	2,990	3,018
Non-residential real estate | Commercial loans | Commercial and Industrial Sector
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	2,990	3,018
Non-residential real estate | Commercial loans | Owner occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	2,428	2,456
Non-residential real estate | Commercial loans | Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	562	562
Non-residential real estate | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
Non-residential real estate | Consumer loans | Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
Non-residential real estate | Consumer loans | Home equity and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
Other non-real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	286	286
Other non-real estate | Commercial loans | Commercial and Industrial Sector
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	286	286
Other non-real estate | Commercial loans | Owner occupied CRE
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
Other non-real estate | Commercial loans | Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	286	286
Other non-real estate | Consumer loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
Other non-real estate | Consumer loans | Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	0	0
Other non-real estate | Consumer loans | Home equity and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total LHFI	$ 0	$ 0

XML

LOANS AND CREDIT QUALITY - Loans on Nonaccrual with no related allowance (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no related ACL	$ 7,160	$ 6,125
Nonaccrual	11,846	12,201
Commercial loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no related ACL	4,783	4,778
Nonaccrual	7,535	8,591
Commercial loans | Owner occupied CRE
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no related ACL	3,539	3,568
Nonaccrual	3,539	3,568
Commercial loans | Commercial business
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no related ACL	1,244	1,210
Nonaccrual	3,996	5,023
Consumer loans
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no related ACL	2,377	1,347
Nonaccrual	4,311	3,610
Consumer loans | Single family
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no related ACL	2,325	1,324
Nonaccrual	2,918	2,802
Consumer loans | Home equity and other
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual with no related ACL	52	23
Nonaccrual	$ 1,393	$ 808

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LOANS AND CREDIT QUALITY - Aging Analysis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	$ 5,864,490	$ 5,542,849
Nonaccrual	11,846	12,201
Total past due and nonaccrual	$ 24,415	$ 21,020
Nonaccrual, percent of total loans	0.20%	0.22%
Past due and nonaccrual, percent of total loans	0.42%	0.38%
Percent of total loans	100.00%	100.00%
Federal Housing Administration, Veteran Affairs, Or Small Business Administration
Financing Receivable, Past Due [Line Items]
Total past due and nonaccrual	$ 11,000	$ 8,400
Recurring
Financing Receivable, Past Due [Line Items]
Single family LHFI	6,981	7,287
Level 3 | Recurring
Financing Receivable, Past Due [Line Items]
Single family LHFI	6,981	7,287
30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	$ 3,814	$ 1,208
Past due, percent of total loans	0.07%	0.02%
60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	$ 1,852	$ 894
Past due, percent of total loans	0.03%	0.02%
90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	$ 6,903	$ 6,717
Past due, percent of total loans	0.12%	0.12%
Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	$ 5,840,075	$ 5,521,829
Not past due, percent of total loans	99.58%	99.62%
Commercial loans, adjusted for credit analysis | Real Estate Sector
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	$ 3,957,186	$ 3,616,862
Nonaccrual	0	0
Total past due and nonaccrual	0	0
Commercial loans, adjusted for credit analysis | Real Estate Sector | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Real Estate Sector | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Real Estate Sector | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Real Estate Sector | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	3,957,186	3,616,862
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	852,294	859,578
Nonaccrual	7,535	8,591
Total past due and nonaccrual	7,535	8,789
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	198
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	844,759	850,789
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	699,277	705,359
Nonaccrual	0	0
Total past due and nonaccrual	0	0
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	699,277	705,359
Commercial loans, adjusted for credit analysis | Multifamily
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	2,729,775	2,415,359
Nonaccrual	0	0
Total past due and nonaccrual	0	0
Commercial loans, adjusted for credit analysis | Multifamily | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Multifamily | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Multifamily | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Multifamily | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	2,729,775	2,415,359
Commercial loans, adjusted for credit analysis | Multifamily construction
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	36,827	37,861
Nonaccrual	0	0
Total past due and nonaccrual	0	0
Commercial loans, adjusted for credit analysis | Multifamily construction | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Multifamily construction | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Multifamily construction | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Multifamily construction | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	36,827	37,861
Commercial loans, adjusted for credit analysis | CRE construction
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	18,099	14,172
Nonaccrual	0	0
Total past due and nonaccrual	0	0
Commercial loans, adjusted for credit analysis | CRE construction | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | CRE construction | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | CRE construction | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | CRE construction | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	18,099	14,172
Commercial loans, adjusted for credit analysis | Single family construction
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	318,800	296,027
Nonaccrual	0	0
Total past due and nonaccrual	0	0
Commercial loans, adjusted for credit analysis | Single family construction | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Single family construction | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Single family construction | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Single family construction | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	318,800	296,027
Commercial loans, adjusted for credit analysis | Single family construction to permanent
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	154,408	148,084
Nonaccrual	0	0
Total past due and nonaccrual	0	0
Commercial loans, adjusted for credit analysis | Single family construction to permanent | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Single family construction to permanent | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Single family construction to permanent | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Single family construction to permanent | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	154,408	148,084
Commercial loans, adjusted for credit analysis | Owner occupied CRE
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	464,356	457,706
Nonaccrual	3,539	3,568
Total past due and nonaccrual	3,539	3,568
Commercial loans, adjusted for credit analysis | Owner occupied CRE | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Owner occupied CRE | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Owner occupied CRE | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Owner occupied CRE | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	460,817	454,138
Commercial loans, adjusted for credit analysis | Commercial business
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	387,938	401,872
Nonaccrual	3,996	5,023
Total past due and nonaccrual	3,996	5,221
Commercial loans, adjusted for credit analysis | Commercial business | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	198
Commercial loans, adjusted for credit analysis | Commercial business | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Commercial business | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Commercial loans, adjusted for credit analysis | Commercial business | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	383,942	396,651
Consumer portfolio segment, adjusted for credit analysis
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	1,055,010	1,066,409
Nonaccrual	4,311	3,610
Total past due and nonaccrual	16,880	12,231
Consumer portfolio segment, adjusted for credit analysis | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	3,814	1,010
Consumer portfolio segment, adjusted for credit analysis | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	1,852	894
Consumer portfolio segment, adjusted for credit analysis | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	6,903	6,717
Consumer portfolio segment, adjusted for credit analysis | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	1,038,130	1,054,178
Consumer portfolio segment, adjusted for credit analysis | Single family
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	759,286	763,331
Nonaccrual	2,918	2,802
Total past due and nonaccrual	15,395	11,231
Consumer portfolio segment, adjusted for credit analysis | Single family | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	3,753	892
Consumer portfolio segment, adjusted for credit analysis | Single family | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	1,821	820
Consumer portfolio segment, adjusted for credit analysis | Single family | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	6,903	6,717
Consumer portfolio segment, adjusted for credit analysis | Single family | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	743,891	752,100
Consumer portfolio segment, adjusted for credit analysis | Home equity and other
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	295,724	303,078
Nonaccrual	1,393	808
Total past due and nonaccrual	1,485	1,000
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | 30-59 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	61	118
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | 60-89 days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	31	74
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | 90+ days
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	0	0
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | Current
Financing Receivable, Past Due [Line Items]
Loans before allowance for credit loss	$ 294,239	$ 302,078

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LOANS AND CREDIT QUALITY - Loan Modification (Details) - Consumer loans $ in Thousands	Mar. 31, 2022 USD ($)
Single family | Significant Payment Delay
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 153
% of Total Class of Financing Receivable	0.02%
Single family | Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 37
% of Total Class of Financing Receivable	0.00%
Single family | Interest Rate Reduction and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 1,110
% of Total Class of Financing Receivable	0.15%
Single family | Significant Payment Delay and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 6,397
% of Total Class of Financing Receivable	0.84%
Single family | Interest Rate Reduction, Significant Payment Delay and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 5,762
% of Total Class of Financing Receivable	0.76%
Home equity and other | Significant Payment Delay and Term Extension
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized Cost Basis	$ 52
% of Total Class of Financing Receivable	0.02%

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LOANS AND CREDIT QUALITY - Loan Modifications, Financial Effect (Details) - Consumer loans	Mar. 31, 2022
Single family
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted average contractual interest rate, before modification	4.28%
Weighted average contractual interest rate, after modification	3.25%
Weighted average percent of loan balances capitalized and added to term of loan	0.30%
Weighted average time added to life of loans (in years)	3 years 2 months 12 days
Home equity and other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Weighted average percent of loan balances capitalized and added to term of loan	6.30%
Weighted average time added to life of loans (in years)	16 years 1 month 6 days

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DEPOSITS - Schedule of Deposit Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Deposit balances, including stated rates
Noninterest-bearing demand deposits	$ 1,654,229	$ 1,617,069
Interest-bearing demand deposits	591,148	513,810
Savings	309,462	302,389
Money market	2,800,215	2,806,313
Certificates of deposit	915,481	906,928
Deposits, Total	$ 6,270,535	$ 6,146,509
Weighted Average Rate, Interest-bearing demand deposits	0.10%	0.10%
Weighted Average Rate, Savings	0.06%	0.06%
Weighted Average Rate, Money market	0.18%	0.15%
Weighted Average Rate, Certificates of deposit	0.45%	0.51%
Weighted Average Rate Domestic Deposit, Total	0.16%	0.15%

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DEPOSITS - Schedule of Deposits Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Certificates of deposit outstanding
Within one year	$ 761,588
One to two years	133,251
Two to three years	16,491
Three to four years	2,756
Four to five years	1,395
Total	$ 915,481	$ 906,928

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DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract]
Time deposits, at or above FDIC insurance limit	$ 96	$ 108
Brokered deposits	$ 195	$ 145

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LONG-TERM DEBT (Details) - USD ($)	Jan. 19, 2022	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Outstanding balance, subordinated notes		$ 224,137,000	$ 126,026,000
Subordinated Debt
Debt Instrument [Line Items]
Outstanding balance, subordinated notes		62,000,000
3.5% Subordinated Notes Due 2032 | Subordinated Debt
Debt Instrument [Line Items]
Long-term debt	$ 100,000,000
Stated interest rate (percent)	0.035%
Basis spread on variable rate	2.15%
Net proceeds from issuance of subordinated notes	$ 98,000,000
Outstanding balance, subordinated notes		$ 98,000,000
Senior Notes 6.50% Due 2026 | Senior Notes
Debt Instrument [Line Items]
Stated interest rate (percent)		6.50%	6.50%
Outstanding balance, subordinated notes		$ 64,000,000	$ 64,000,000
Home Street Statutory Trust Subordinated Debt Securities | Subordinated Debt
Debt Instrument [Line Items]
Outstanding balance, subordinated notes			$ 62,000,000

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LONG-TERM DEBT - Schedule of Subordinated Debt Securities (Details) - Subordinated Debt $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
HomeStreet Statutory Trust Subordinated Debt Securities I
Debt Instrument [Line Items]
Amount	$ 5,155
Call options, term exercisable without penalty	5 years
HomeStreet Statutory Trust Subordinated Debt Securities I | Three Month LIBOR
Debt Instrument [Line Items]
Interest rate	1.70%
HomeStreet Statutory Trust Subordinated Debt Securities II
Debt Instrument [Line Items]
Amount	$ 20,619
Call options, term exercisable without penalty	5 years
HomeStreet Statutory Trust Subordinated Debt Securities II | Three Month LIBOR
Debt Instrument [Line Items]
Interest rate	1.50%
HomeStreet Statutory Trust Subordinated Debt Securities III
Debt Instrument [Line Items]
Amount	$ 20,619
Call options, term exercisable without penalty	5 years
HomeStreet Statutory Trust Subordinated Debt Securities III | Three Month LIBOR
Debt Instrument [Line Items]
Interest rate	1.37%
HomeStreet Statutory Trust Subordinated Debt Securities IV.
Debt Instrument [Line Items]
Amount	$ 15,464
Call options, term exercisable without penalty	5 years
HomeStreet Statutory Trust Subordinated Debt Securities IV. | Three Month LIBOR
Debt Instrument [Line Items]
Interest rate	1.68%

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DERIVATIVES AND HEDGING ACTIVITIES - Fair Value of Derivatives (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Notional amount	$ 1,170,771	$ 1,335,485
Derivatives before netting, derivative assets	11,867	7,925
Netting adjustments/cash collateral, derivative assets	(9,096)	1,355
Derivative assets	2,771	9,280
Derivatives before netting, derivative Liabilities	(9,753)	(5,184)
Netting adjustments/cash collateral, derivative liabilities	3,072	3,921
Derivative liabilities	(6,681)	(1,263)
Concentration of credit risk, master netting arrangements
Derivatives, Fair Value [Line Items]
Right to reclaim cash in excess of fair value of derivative liability	6,000	(5,300)
Forward sale commitments
Derivatives, Fair Value [Line Items]
Notional amount	670,018	793,208
Derivatives before netting, derivative assets	5,079	723
Derivatives before netting, derivative Liabilities	(3,528)	(640)
Interest rate lock commitments
Derivatives, Fair Value [Line Items]
Notional amount	100,992	115,025
Derivatives before netting, derivative assets	683	2,487
Derivatives before netting, derivative Liabilities	(605)	(3)
Interest rate swaps
Derivatives, Fair Value [Line Items]
Notional amount	276,561	287,352
Derivatives before netting, derivative assets	5,619	4,381
Derivatives before netting, derivative Liabilities	(5,620)	(4,541)
Futures
Derivatives, Fair Value [Line Items]
Notional amount	93,200	139,900
Derivatives before netting, derivative assets	97	334
Derivatives before netting, derivative Liabilities	0	$ 0
Options
Derivatives, Fair Value [Line Items]
Notional amount	30,000
Derivatives before netting, derivative assets	389
Derivatives before netting, derivative Liabilities	$ 0

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DERIVATIVES AND HEDGING ACTIVITIES - Master Netting Agreements (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Derivatives before netting, derivative assets	$ 11,867	$ 7,925
Netting adjustments/cash collateral, derivative assets	(9,096)	1,355
Derivative assets	2,771	9,280
Derivatives before netting, derivative Liabilities	(9,753)	(5,184)
Netting adjustments/cash collateral, derivative liabilities	3,072	3,921
Derivative liabilities	(6,681)	(1,263)
Concentration of credit risk, master netting arrangements
Derivative [Line Items]
Right to reclaim cash in excess of fair value of derivative liability	$ 6,000	$ (5,300)

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DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Liability for cash collateral received from counterparties	$ 7,600	$ 0
Receivable for cash collateral paid to counterparties	1,600	5,300
Notional amount of open interest rate swap agreements	1,170,771	1,335,485
Interest rate swaps, back-to-back
Derivative [Line Items]
Notional amount of open interest rate swap agreements	$ 277,000	$ 287,000

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DERIVATIVES AND HEDGING ACTIVITIES - Gain (Loss) Recognized in Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Loans
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) from economic hedging	$ 4,613	$ 3,858
Servicing contracts
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) from economic hedging	(9,439)	(12,591)
Other Credit Derivatives
Derivative Instruments, Gain (Loss) [Line Items]
Net gain (loss) from economic hedging	$ 159	$ 299

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MORTGAGE BANKING OPERATIONS - Loans Held for Sale (Details) - Commercial loans - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 59,150	$ 176,131
Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	48,994	128,041
CRE, multifamily and SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 10,156	$ 48,090

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MORTGAGE BANKING OPERATIONS - Loans Sold (Details) - Commercial loans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of loans originated as held for sale	$ 372,207	$ 830,757
Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of loans originated as held for sale	323,070	573,040
CRE, multifamily and SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sale of loans originated as held for sale	$ 49,137	$ 257,717

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MORTGAGE BANKING OPERATIONS - Gain on Sale (Details) - Commercial loans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Gain on mortgage loan origination and sale activities [Line Items]
Gain on loan origination and sale activities	$ 8,274	$ 33,459
Single family
Gain on mortgage loan origination and sale activities [Line Items]
Gain on loan origination and sale activities	6,169	26,187
CRE, multifamily and SBA
Gain on mortgage loan origination and sale activities [Line Items]
Gain on loan origination and sale activities	$ 2,105	$ 7,272

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MORTGAGE BANKING OPERATIONS - Loans Serviced for Others (Details) - Commercial loans - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans serviced for others	$ 7,580,946	$ 7,570,267
Single family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans serviced for others	5,545,145	5,539,180
CRE, multifamily and SBA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans serviced for others	$ 2,035,801	$ 2,031,087

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MORTGAGE BANKING OPERATIONS - Mortgage Repurchase Liability (Details) - Representations and warranties reserve for loan receivables - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Mortgage Repurchase Losses [Roll Forward]
Balance, beginning of period	$ 1,312	$ 2,122
Additions, net of adjustments	358	(20)
Realized (losses) recoveries, net	(32)	(161)
Balance, end of period	$ 1,638	$ 1,941

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MORTGAGE BANKING OPERATIONS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Impaired [Line Items]
Servicing advances	$ 2.7	$ 1.9
GNMA Early buyout loans
Financing Receivable, Impaired [Line Items]
Loans receivable, in Ginnie Mae pool	$ 10.0	$ 12.0

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MORTGAGE BANKING OPERATIONS - Revenue from Mortgage Servicing (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Servicing income, net:
Servicing fees and other	$ 8,321	$ 8,913
Amortization of single family MSRs	(3,425)	(5,693)
Amortization of multifamily and SBA MSRs	(1,712)	(1,344)
Net servicing income	3,184	1,876
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions	10,303	11,463
Mortgage servicing rights, risk management	120	(1,128)
Loan servicing income	3,304	748
Servicing contracts
Risk management, single family MSRs:
Net gain (loss) from economic hedging	$ (10,183)	$ (12,591)

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MORTGAGE BANKING OPERATIONS - Single Family MSR Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Additions and amortization:
Amortization	$ 3,425	$ 5,693
Changes in fair value of MSR assumptions	10,303	11,463
Ending balance	72,378
Single family
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance	61,584	49,966
Additions and amortization:
Originations	3,916	6,616
Amortization	(3,425)	(5,693)
Net additions and amortization	491	923
Changes in fair value of MSR assumptions	10,303	11,463
Ending balance	$ 72,378	$ 62,352

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MORTGAGE BANKING OPERATIONS - Key Economic Assumptions (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Constant prepayment rate
Fair Value Measurement Inputs and Valuation Techniques
Servicing asset, measurement input	9.38%	8.37%
Discount rate
Fair Value Measurement Inputs and Valuation Techniques
Servicing asset, measurement input	8.34%	8.37%

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MORTGAGE BANKING OPERATIONS - Sensitivity Analysis (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)	Dec. 31, 2021
Key economic assumptions and the sensitivity of the current fair value for single family MSRs
Fair value of single family MSR	$ 72,378
Expected weighted-average life (in years)	7 years 1 month 20 days
Constant Prepayment Rate [Abstract]
Impact on fair value of 25 basis points adverse change in interest rates	$ (2,208)
Impact on fair value of 50 basis points adverse change in interest rates	(4,909)
Discount Rate [Abstract]
Impact on fair value of 100 basis points increase	(3,217)
Impact on fair value of 200 basis points increase	$ (6,187)
Minimum | CPRs
Key economic assumptions and the sensitivity of the current fair value for single family MSRs
Measurement input (as a percent)	0.0738	0.0790
Minimum | Discount rate
Key economic assumptions and the sensitivity of the current fair value for single family MSRs
Measurement input (as a percent)	0.0810	0.0694
Maximum | CPRs
Key economic assumptions and the sensitivity of the current fair value for single family MSRs
Measurement input (as a percent)	0.1666	0.1735
Maximum | Discount rate
Key economic assumptions and the sensitivity of the current fair value for single family MSRs
Measurement input (as a percent)	0.1518	0.1396
Weighted average | CPRs
Key economic assumptions and the sensitivity of the current fair value for single family MSRs
Measurement input (as a percent)	0.0942	0.1035
Weighted average | Discount rate
Key economic assumptions and the sensitivity of the current fair value for single family MSRs
Measurement input (as a percent)	0.0905	0.0797

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MORTGAGE BANKING OPERATIONS - Multifamily MSR Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Servicing Asset at Amortized Value, Balance [Roll Forward]
Beginning balance	$ 39,415	$ 35,774
Origination	1,576	5,196
Amortization	(1,712)	(1,344)
Ending balance	$ 39,279	$ 39,626

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GUARANTEES AND MORTGAGE REPURCHASE LIABILITY - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Representations and warranties reserve for loan receivables
Loss Contingencies [Line Items]
Unfunded commitment balance of loans sold on a servicing-retained basis	$ 5,500,000,000		$ 5,500,000,000
Reserve liability related to mortgage repurchase	1,638,000	$ 1,941,000	1,312,000	$ 2,122,000
Loss sharing relationship
Loss Contingencies [Line Items]
Reserve liability related to multifamily DUS program	600,000		600,000
Loss sharing relationship | Multifamily
Loss Contingencies [Line Items]
UPB of loans sold through DUS	1,900,000,000		1,900,000,000
Losses incurred - related to DUS	0	$ 0
Credit risk
Loss Contingencies [Line Items]
Reserve liability related to mortgage repurchase	$ 1,600,000		$ 1,300,000

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EARNINGS PER SHARE - Schedule of EPS Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net income	$ 19,951	$ 29,663
Weighted average shares:
Basic weighted average number of shares outstanding (in shares)	19,585,753	21,637,671
Dilutive effect of outstanding common stock equivalents (in shares)	206,160	324,157
Diluted weighted-average number of shares outstanding (in shares)	19,791,913	21,961,828
Net income per share:
Basic earnings per share (in dollars per share)	$ 1.02	$ 1.37
Diluted earnings per share (in dollars per share)	$ 1.01	$ 1.35

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FAIR VALUE MEASUREMENT - Schedule of Fair Value Hierarchy Measurement (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets:
Investment securities AFS	$ 1,060,184	$ 1,002,522
Single family mortgage servicing rights	72,378
Derivatives	2,771	9,280
Liabilities:
Derivative liabilities	6,681	1,263
Residential mortgage-backed securities
Assets:
Investment securities AFS	29,187	32,963
Commercial mortgage-backed securities
Assets:
Investment securities AFS	66,392	62,792
Municipal bonds
Assets:
Investment securities AFS	515,139	539,923
Corporate debt securities
Assets:
Investment securities AFS	26,373	19,616
U.S. Treasury securities
Assets:
Investment securities AFS	21,722	23,175
Recurring
Assets:
Single family LHFS	48,994	128,041
Single family LHFI	6,981	7,287
Single family mortgage servicing rights	72,378	61,584
Total assets	1,219,717	1,207,359
Liabilities:
Total liabilities	9,753	5,184
Recurring | Residential mortgage-backed securities
Assets:
Investment securities AFS	29,187	32,963
Recurring | Commercial mortgage-backed securities
Assets:
Investment securities AFS	66,392	62,792
Recurring | Collateralized mortgage obligations residential
Assets:
Investment securities AFS	266,492	187,394
Recurring | Collateralized mortgage obligations commercial
Assets:
Investment securities AFS	134,879	136,659
Recurring | Municipal bonds
Assets:
Investment securities AFS	515,139	539,923
Recurring | Corporate debt securities
Assets:
Investment securities AFS	26,373	19,616
Recurring | U.S. Treasury securities
Assets:
Trading securities - U.S. Treasury securities	19,313
Investment securities AFS	21,722	23,175
Recurring | Futures
Assets:
Derivatives	97	334
Recurring | Forward sale commitments
Assets:
Derivatives	5,079	723
Liabilities:
Derivative liabilities	3,528	640
Recurring | Options
Assets:
Derivatives	389
Recurring | Interest rate lock commitments
Assets:
Derivatives	683	2,487
Liabilities:
Derivative liabilities	605	3
Recurring | Interest rate swaps
Assets:
Derivatives	5,619	4,381
Liabilities:
Derivative liabilities	5,620	4,541
Level 1 | Recurring
Assets:
Single family LHFS	0	0
Single family LHFI	0	0
Single family mortgage servicing rights	0	0
Total assets	19,799	334
Liabilities:
Total liabilities	0	0
Level 1 | Recurring | Residential mortgage-backed securities
Assets:
Investment securities AFS	0	0
Level 1 | Recurring | Commercial mortgage-backed securities
Assets:
Investment securities AFS	0	0
Level 1 | Recurring | Collateralized mortgage obligations residential
Assets:
Investment securities AFS	0	0
Level 1 | Recurring | Collateralized mortgage obligations commercial
Assets:
Investment securities AFS	0	0
Level 1 | Recurring | Municipal bonds
Assets:
Investment securities AFS	0	0
Level 1 | Recurring | Corporate debt securities
Assets:
Investment securities AFS	0	0
Level 1 | Recurring | U.S. Treasury securities
Assets:
Trading securities - U.S. Treasury securities	19,313
Investment securities AFS	0	0
Level 1 | Recurring | Futures
Assets:
Derivatives	97	334
Level 1 | Recurring | Forward sale commitments
Assets:
Derivatives	0	0
Liabilities:
Derivative liabilities	0	0
Level 1 | Recurring | Options
Assets:
Derivatives	389
Level 1 | Recurring | Interest rate lock commitments
Assets:
Derivatives	0	0
Liabilities:
Derivative liabilities	0	0
Level 1 | Recurring | Interest rate swaps
Assets:
Derivatives	0	0
Liabilities:
Derivative liabilities	0	0
Level 2 | Recurring
Assets:
Single family LHFS	48,994	128,041
Single family LHFI	0	0
Single family mortgage servicing rights	0	0
Total assets	1,117,569	1,133,185
Liabilities:
Total liabilities	9,148	5,181
Level 2 | Recurring | Residential mortgage-backed securities
Assets:
Investment securities AFS	26,954	30,556
Level 2 | Recurring | Commercial mortgage-backed securities
Assets:
Investment securities AFS	66,392	62,792
Level 2 | Recurring | Collateralized mortgage obligations residential
Assets:
Investment securities AFS	266,492	187,394
Level 2 | Recurring | Collateralized mortgage obligations commercial
Assets:
Investment securities AFS	134,879	136,659
Level 2 | Recurring | Municipal bonds
Assets:
Investment securities AFS	515,139	539,923
Level 2 | Recurring | Corporate debt securities
Assets:
Investment securities AFS	26,299	19,541
Level 2 | Recurring | U.S. Treasury securities
Assets:
Trading securities - U.S. Treasury securities	0
Investment securities AFS	21,722	23,175
Level 2 | Recurring | Futures
Assets:
Derivatives	0	0
Level 2 | Recurring | Forward sale commitments
Assets:
Derivatives	5,079	723
Liabilities:
Derivative liabilities	3,528	640
Level 2 | Recurring | Options
Assets:
Derivatives	0
Level 2 | Recurring | Interest rate lock commitments
Assets:
Derivatives	0	0
Liabilities:
Derivative liabilities	0	0
Level 2 | Recurring | Interest rate swaps
Assets:
Derivatives	5,619	4,381
Liabilities:
Derivative liabilities	5,620	4,541
Level 3 | Recurring
Assets:
Single family LHFS	0	0
Single family LHFI	6,981	7,287
Single family mortgage servicing rights	72,378	61,584
Total assets	82,349	73,840
Liabilities:
Total liabilities	605	3
Level 3 | Recurring | Residential mortgage-backed securities
Assets:
Investment securities AFS	2,233	2,407
Level 3 | Recurring | Commercial mortgage-backed securities
Assets:
Investment securities AFS	0	0
Level 3 | Recurring | Collateralized mortgage obligations residential
Assets:
Investment securities AFS	0	0
Level 3 | Recurring | Collateralized mortgage obligations commercial
Assets:
Investment securities AFS	0	0
Level 3 | Recurring | Municipal bonds
Assets:
Investment securities AFS	0	0
Level 3 | Recurring | Corporate debt securities
Assets:
Investment securities AFS	74	75
Level 3 | Recurring | U.S. Treasury securities
Assets:
Trading securities - U.S. Treasury securities	0
Investment securities AFS	0	0
Level 3 | Recurring | Futures
Assets:
Derivatives	0	0
Level 3 | Recurring | Forward sale commitments
Assets:
Derivatives	0	0
Liabilities:
Derivative liabilities	0	0
Level 3 | Recurring | Options
Assets:
Derivatives	0
Level 3 | Recurring | Interest rate lock commitments
Assets:
Derivatives	683	2,487
Liabilities:
Derivative liabilities	605	3
Level 3 | Recurring | Interest rate swaps
Assets:
Derivatives	0	0
Liabilities:
Derivative liabilities	$ 0	$ 0

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FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Transfers between levels of fair value hierarchy	$ 0	$ 0
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Single family LHFI	6,981,000		$ 7,287,000
Level 3 | Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Single family LHFI	$ 6,981,000		$ 7,287,000

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FAIR VALUE MEASUREMENT - Schedule of Level 3 Unobservable Inputs (Details) $ in Thousands	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate lock, net, fair value	$ 78	$ 2,484	$ 6,488	$ 17,392
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Single family LHFI	6,981	7,287
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	2,307	2,482
Single family LHFI	6,981	7,287
Recurring | Level 3 | Interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate lock, net, fair value	$ 78	$ 2,484
Implied spread to benchmark interest rate curve | Minimum | Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale, fair value inputs	0.0200	0.0200
Loans held for investment, fair vale inputs	0.0249	0.0239
Implied spread to benchmark interest rate curve | Maximum | Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale, fair value inputs	0.0200	0.0200
Loans held for investment, fair vale inputs	0.0476	0.0796
Implied spread to benchmark interest rate curve | Weighted average | Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale, fair value inputs	0.0200	0.0200
Loans held for investment, fair vale inputs	0.0314	0.0356
Fall-out factor | Minimum | Recurring | Level 3 | Interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate lock, net, fair value inputs	0.0020	0.0015
Fall-out factor | Maximum | Recurring | Level 3 | Interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate lock, net, fair value inputs	0.2960	0.2193
Fall-out factor | Weighted average | Recurring | Level 3 | Interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate lock, net, fair value inputs	0.1171	0.0844
Value of servicing | Minimum | Recurring | Level 3 | Interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate lock, net, fair value inputs	0.0045	0.0035
Value of servicing | Maximum | Recurring | Level 3 | Interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate lock, net, fair value inputs	0.0139	0.0146
Value of servicing | Weighted average | Recurring | Level 3 | Interest rate lock commitments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate lock, net, fair value inputs	0.0106	0.0115

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FAIR VALUE MEASUREMENT - Schedule of Fair Value Changes and Activity for Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest rate lock commitments
Fair Value Changes and Activity for Level 3 [Roll Forward]
Beginning balance	$ 2,484	$ 17,392
Payoffs/Sales/Settlements	(229)	(7,435)
Change in mark to market/Realized/unrealized gains (losses)	(2,177)	(3,469)
Ending balance	78	6,488
Investment securities AFS
Fair Value Changes and Activity for Level 3 [Roll Forward]
Beginning balance	2,482	2,710
Additions	0	0
Transfers	0	0
Payoffs/Sales/Settlements	(48)	(48)
Change in mark to market/Realized/unrealized gains (losses)	(127)	(172)
Ending balance	2,307	2,490
Single family LHFI
Fair Value Changes and Activity for Level 3 [Roll Forward]
Beginning balance	7,287	7,108
Additions	0	360
Transfers	0	0
Payoffs/Sales/Settlements	0	(3,191)
Change in mark to market/Realized/unrealized gains (losses)	(306)	47
Ending balance	$ 6,981	$ 4,324

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FAIR VALUE MEASUREMENT - FV Unobservable Inputs - Nonrecurring Basis (Details) - Nonrecurring $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses)	$ 10
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 904

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FAIR VALUE MEASUREMENT - FV of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets:
Mortgage servicing rights – multifamily and SBA	$ 72,378
Other assets - GNMA EBO loans	5,826,546	$ 5,495,726
Carrying Value
Assets:
Cash and cash equivalents	73,862	65,214
Investment securities HTM	4,143	4,169
LHFI	5,819,565	5,488,439
Federal Home Loan Bank stock	19,596	10,361
Liabilities:
Certificates of deposit	915,481	906,928
Borrowings	273,000	41,000
Long-term debt	224,137	126,026
Fair Value
Assets:
Cash and cash equivalents	73,862	65,214
Investment securities HTM	4,134	4,305
LHFI	5,712,390	5,588,719
Federal Home Loan Bank stock	19,596	10,361
Liabilities:
Certificates of deposit	908,030	906,064
Borrowings	273,000	41,000
Long-term debt	214,853	116,845
Multifamily | Carrying Value
Assets:
LHFS – multifamily and other	10,156	48,090
Mortgage servicing rights – multifamily and SBA	39,279	39,415
Multifamily | Fair Value
Assets:
LHFS – multifamily and other	10,248	48,425
Mortgage servicing rights – multifamily and SBA	43,453	43,199
Other assets - GNMA EBO loans | Carrying Value
Assets:
Other assets - GNMA EBO loans	9,940	12,342
Other assets - GNMA EBO loans | Fair Value
Assets:
Other assets - GNMA EBO loans	9,940	12,342
Level 1 | Fair Value
Assets:
Cash and cash equivalents	73,862	65,214
Investment securities HTM	0	0
LHFI	0	0
Federal Home Loan Bank stock	0	0
Liabilities:
Certificates of deposit	0	0
Borrowings		0
Long-term debt	0	0
Level 1 | Multifamily | Fair Value
Assets:
LHFS – multifamily and other	0	0
Mortgage servicing rights – multifamily and SBA	0	0
Level 1 | Other assets - GNMA EBO loans | Fair Value
Assets:
Other assets - GNMA EBO loans	0	0
Level 2 | Fair Value
Assets:
Cash and cash equivalents	0	0
Investment securities HTM	4,134	4,305
LHFI	0	0
Federal Home Loan Bank stock	19,596	10,361
Liabilities:
Certificates of deposit	908,030	906,064
Borrowings	273,000	41,000
Long-term debt	214,853	116,845
Level 2 | Multifamily | Fair Value
Assets:
LHFS – multifamily and other	10,248	48,425
Mortgage servicing rights – multifamily and SBA	0	0
Level 2 | Other assets - GNMA EBO loans | Fair Value
Assets:
Other assets - GNMA EBO loans	0	0
Level 3 | Fair Value
Assets:
Cash and cash equivalents	0	0
Investment securities HTM	0	0
LHFI	5,712,390	5,588,719
Federal Home Loan Bank stock	0	0
Liabilities:
Certificates of deposit	0	0
Borrowings		0
Long-term debt	0	0
Level 3 | Multifamily | Fair Value
Assets:
LHFS – multifamily and other	0	0
Mortgage servicing rights – multifamily and SBA	43,453	43,199
Level 3 | Other assets - GNMA EBO loans | Fair Value
Assets:
Other assets - GNMA EBO loans	$ 9,940	$ 12,342

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FAIR VALUE MEASUREMENT - Fair Value Option (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Single family LHFS	$ 48,994	$ 128,041
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Single family LHFS	48,994	128,041
Aggregate Unpaid Principal Balance	49,457	124,933
Fair Value Less Aggregated Unpaid Principal Balance	$ (463)	$ 3,108

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SUBSEQUENT EVENT - Narrative (Details)	Apr. 28, 2022 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Dividends payable (in dollars per share)	$ 0.35