Servicing rights (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of beginning and ending balances of servicing rights

	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands)	2019		2018		2019		2018
SBA servicing rights, at amortized cost
Beginning net carrying amount	$	18,000	$	16,946	$	16,749	$	16,684
Additions due to loans sold, servicing retained		550		697		2,431		2,502
Acquisitions		—		—		894		362
Amortization		(869)		(855)		(2,529)		(2,594)
Impairment		(149)		(100)		(13)		(266)
Ending net carrying value of SBA servicing rights	$	17,532	$	16,688	$	17,532	$	16,688
Freddie Mac multi-family servicing rights, at amortized cost
Beginning net carrying amount	$	11,103	$	8,774	$	10,248	$	5,059
Additions due to loans sold, servicing retained		1,798		1,521		3,745		5,911
Amortization		(591)		(470)		(1,683)		(1,145)
Ending net carrying value of Freddie Mac multi-family servicing rights	$	12,310	$	9,825	$	12,310	$	9,825
Ending net carrying value of SBA and Freddie Mac multi-family servicing rights, at amortized cost	$	29,842	$	26,513	$	29,842	$	26,513
Residential mortgage servicing rights, at fair value
Beginning Balance	$	85,658	$	85,554	$	93,065	$	72,295
Additions due to loans sold, servicing retained		9,028		5,502		18,482		16,657
Loan pay-offs		(2,466)		(1,665)		(5,861)		(4,747)
Unrealized gains (losses)		(7,582)		2,317		(21,048)		7,503
Ending fair value of residential mortgage servicing rights	$	84,638	$	91,708	$	84,638	$	91,708
Total servicing rights	$	114,480	$	118,221	$	114,480	$	118,221

Schedule of future amortization expense for the servicing rights

(In Thousands)	September 30, 2019
2019	$	1,470
2020		5,429
2021		4,759
2022		4,172
2023		3,633
Thereafter		10,379
Total	$	29,842

Residential

Schedule of servicing rights

	As of September 30, 2019				As of December 31, 2018
	Unpaid Principal				Unpaid Principal
(In Thousands)	Amount		Fair Value		Amount		Fair Value
Fannie Mae	$	3,245,359	$	33,414	$	2,848,435	$	34,562
Ginnie Mae		2,453,034		28,125		2,350,301		29,586
Freddie Mac		2,283,631		23,099		2,267,943		28,917
Total	$	7,982,024	$	84,638	$	7,466,679	$	93,065

Schedule of Mortgage Servicing Rights Portfolio

		September 30, 2019						December 31, 2018
		Range of input values				Weighted Average		Range of input values				Weighted Average
Residential mortgage servicing rights (at fair value)
	• Forward prepayment rate	7.3	-	18.7	%	10.6	%	6.1	-	13.9	%	8.4	%
	• Discount rate	9.0	-	11.0	%	9.6	%	9.0	-	11.1	%	9.7	%
	• Servicing expense	$ 70	-	$ 85		$ 75		$ 70	-	$ 85		$ 75

Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights

(In Thousands)	September 30, 2019		December 31, 2018
Prepayment rate
10% adverse change	$	(3,880)	$	(3,281)
20% adverse change		(7,451)		(6,330)
Discount rate
10% adverse change	$	(3,153)	$	(3,716)
20% adverse change		(6,082)		(7,159)
Cost of servicing
10% adverse change	$	(1,570)	$	(1,683)
20% adverse change		(3,140)		(3,365)

SBA | Freddie Mac

Schedule of servicing rights

	As of September 30, 2019				As of December 31, 2018
	Unpaid Principal				Unpaid Principal
(In Thousands)	Amount		Carrying Value		Amount		Carrying Value
SBA	$	555,772	$	17,532	$	506,155	$	16,749
Freddie Mac multi-family		1,120,377		12,310		964,377		10,248
Total	$	1,676,150	$	29,842	$	1,470,532	$	26,997

Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights

(In Thousands)	September 30, 2019		December 31, 2018
SBA servicing rights (at amortized cost)
• Forward prepayment rate
10% adverse change	$	(530)	$	(470)
20% adverse change		(1,034)		(915)
• Default rate
10% adverse change	$	(101)	$	(63)
20% adverse change		(200)		(125)
• Discount rate
10% adverse change	$	(562)	$	(579)
20% adverse change		(1,091)		(1,118)
Freddie Mac multi-family servicing rights (at amortized cost)
• Forward prepayment rate
10% adverse change	$	(117)	$	(63)
20% adverse change		(231)		(124)
• Default rate
10% adverse change	$	(18)	$	(11)
20% adverse change		(36)		(22)
• Discount rate
10% adverse change	$	(328)	$	(490)
20% adverse change		(645)		(791)

SBA | Freddie Mac | Commercial

Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights

		September 30, 2019						December 31, 2018
		Range of input values				Weighted Average		Range of input values				Weighted Average
SBA servicing rights (at amortized cost)
	• Forward prepayment rate	4.6	-	21.3	%	8.4	%	3.8	-	20.2	%	9.2	%
	• Forward default rate	0.0	-	11.7	%	7.6	%	0.0	-	12.2	%	6.4	%
	• Discount rate	8.8	-	8.8	%	8.8	%	12.0	-	12.0	%	12.0	%
	• Servicing expense	0.4	-	0.4	%	0.4	%	0.4	-	0.4	%	0.4	%
Freddie Mac multi-family servicing rights (at amortized cost)
	• Forward prepayment rate	0.1	-	35.4	%	5.3	%	0.0	-	35.0	%	5.0	%
	• Forward default rate	0.0	-	2.0	%	2.0	%	0.0	-	2.0	%	1.3	%
	• Discount rate	6.0	-	6.0	%	6.0	%	12.0	-	12.0	%	12.0	%
	• Servicing expense	0.2	-	0.3	%	0.2	%	0.2	-	0.2	%	0.2	%