Servicing rights (Tables)

3 Months Ended

Mar. 31, 2020

Schedule of information regarding portfolio of servicing rights

	Three Months Ended March 31,
(In Thousands)	2020		2019
SBA servicing rights, at amortized cost
Beginning net carrying amount	$	17,660	$	16,749
Additions due to loans sold, servicing retained		961		933
Amortization		(873)		(822)
Impairment		(212)		(412)
Ending net carrying value of SBA servicing rights	$	17,536	$	16,448
Freddie Mac multi-family servicing rights, at amortized cost
Beginning net carrying amount	$	13,135	$	10,248
Additions due to loans sold, servicing retained		1,449		1,267
Amortization		(640)		(529)
Ending net carrying value of Freddie Mac multi-family servicing rights	$	13,944	$	10,986
Ending net carrying value of SBA and Freddie Mac multi-family servicing rights, at amortized cost	$	31,480	$	27,434
Residential mortgage servicing rights, at fair value
Beginning Balance	$	91,174	$	93,065
Additions due to loans sold, servicing retained		7,147		3,593
Loan pay-offs		(3,253)		(1,312)
Unrealized losses		(16,437)		(7,128)
Ending fair value of residential mortgage servicing rights	$	78,631	$	88,218
Total servicing rights	$	110,111	$	115,652

Schedule of future amortization expense for the servicing rights

(In Thousands)	March 31, 2020
2020	$	4,369
2021		5,167
2022		4,491
2023		3,882
2024		3,337
Thereafter		10,234
Total	$	31,480

Residential MSRs

Schedule of servicing rights

	As of March 31, 2020				As of December 31, 2019
	Unpaid Principal				Unpaid Principal
(In Thousands)	Amount		Fair Value		Amount		Fair Value
Fannie Mae	$	3,536,350	$	33,084	$	3,388,630	$	37,309
Ginnie Mae		2,513,271		25,587		2,504,993		29,869
Freddie Mac		2,277,047		19,960		2,270,981		23,996
Total	$	8,326,668	$	78,631	$	8,164,604	$	91,174

Schedule of mortgage servicing rights portfolio

		March 31, 2020						December 31, 2019
		Range of input values				Weighted Average		Range of input values				Weighted Average
Residential mortgage servicing rights (at fair value)
	• Forward prepayment rate	8.5	-	18.9	%	11.1	%	7.1	-	18.7	%	10.1	%
	• Discount rate	9.0	-	11.0	%	9.6	%	9.0	-	11.0	%	9.6	%
	• 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)	March 31, 2020		December 31, 2019
Prepayment rate
10% adverse change	$	(4,245)	$	(4,195)
20% adverse change		(8,110)		(8,091)
Discount rate
10% adverse change	$	(2,849)	$	(3,450)
20% adverse change		(5,501)		(6,654)
Cost of servicing
10% adverse change	$	(1,562)	$	(1,648)
20% adverse change		(3,123)		(3,297)

SBA | Freddie Mac

Schedule of servicing rights

	As of March 31, 2020				As of December 31, 2019
	Unpaid Principal				Unpaid Principal
(In Thousands)	Amount		Carrying Value		Amount		Carrying Value
SBA	$	583,614	$	17,536	$	568,017	$	17,660
Freddie Mac multi-family		1,193,274		13,944		1,167,476		13,135
Total	$	1,776,888	$	31,480	$	1,735,493	$	30,795

Schedule of mortgage servicing rights portfolio

		March 31, 2020						December 31, 2019
		Range of input values				Weighted Average		Range of input values				Weighted Average
SBA servicing rights (at amortized cost)
	• Forward prepayment rate	6.6	-	21.5	%	9.1	%	6.3	-	21.2	%	9.3	%
	• Forward default rate	0.0	-	10.6	%	7.5	%	0.0	-	10.8	%	7.3	%
	• Discount rate	9.1	-	9.1	%	9.1	%	8.8	-	8.8	%	8.8	%
	• 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	0.5	-	15.9	%	6.7	%	0.5	-	15.9	%	6.6	%
	• Forward default rate	0.0	-	0.5	%	0.3	%	0.0	-	0.5	%	0.4	%
	• Discount rate	6.0	-	6.0	%	6.0	%	6.0	-	6.0	%	6.0	%
	• Servicing expense	0.2	-	0.3	%	0.2	%	0.2	-	0.3	%	0.2	%

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

(In Thousands)	March 31, 2020		December 31, 2019
SBA servicing rights (at amortized cost)
• Forward prepayment rate
10% adverse change	$	(558)	$	(563)
20% adverse change		(1,086)		(1,097)
• Default rate
10% adverse change	$	(97)	$	(94)
20% adverse change		(193)		(186)
• Discount rate
10% adverse change	$	(529)	$	(520)
20% adverse change		(1,027)		(1,011)
Freddie Mac multi-family servicing rights (at amortized cost)
• Forward prepayment rate
10% adverse change	$	(287)	$	(285)
20% adverse change		(568)		(558)
• Default rate
10% adverse change	$	(1)	$	(5)
20% adverse change		(4)		(10)
• Discount rate
10% adverse change	$	(381)	$	(381)
20% adverse change		(752)		(746)