Servicing rights (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of information regarding portfolio of servicing rights

	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands)	2020		2019		2020		2019
SBA servicing rights, at amortized cost
Beginning net carrying amount	$	17,536	$	16,448	$	17,660	$	16,749
Additions due to loans sold, servicing retained		374		948		1,335		2,775
Acquisitions				894				—
Amortization		(860)		(838)		(1,733)		(1,660)
Impairment		268		548		56		136
Ending net carrying value of SBA servicing rights	$	17,318	$	18,000	$	17,318	$	18,000
Freddie Mac multi-family servicing rights, at amortized cost
Beginning net carrying amount	$	13,944	$	10,986	$	13,135	$	10,248
Additions due to loans sold, servicing retained		3,539		680		4,987		1,947
Amortization		(685)		(563)		(1,324)		(1,092)
Ending net carrying value of Freddie Mac multi-family servicing rights	$	16,798	$	11,103	$	16,798	$	11,103
Ending net carrying value of SBA and Freddie Mac multi-family servicing rights, at amortized cost	$	34,116	$	29,103	$	34,116	$	29,103
Residential mortgage servicing rights, at fair value
Beginning Balance	$	78,631	$	88,218	$	91,174	$	93,065
Additions due to loans sold, servicing retained		13,331		5,861		20,478		9,454
Loan pay-offs		(6,274)		(2,082)		(9,527)		(3,394)
Unrealized losses		(12,043)		(6,339)		(28,480)		(13,467)
Ending fair value of residential mortgage servicing rights	$	73,645	$	85,658	$	73,645	$	85,658
Total servicing rights	$	107,761	$	114,761	$	107,761	$	114,761

Schedule of future amortization expense for the servicing rights

(In Thousands)	June 30, 2020
2020	$	3,282
2021		5,920
2022		5,143
2023		4,447
2024		3,820
Thereafter		11,504
Total	$	34,116

Residential MSRs

Schedule of servicing rights

	As of June 30, 2020				As of December 31, 2019
	Unpaid Principal				Unpaid Principal
(In Thousands)	Amount		Fair Value		Amount		Fair Value
Fannie Mae	$	3,614,646	$	29,789	$	3,388,630	$	37,309
Ginnie Mae		2,592,409		23,946		2,504,993		29,869
Freddie Mac		2,498,230		19,910		2,270,981		23,996
Total	$	8,705,285	$	73,645	$	8,164,604	$	91,174

Schedule of mortgage servicing rights portfolio

		June 30, 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	11.5	-	22.1	%	12.9	%	7.1	-	18.7	%	10.1	%
	• Discount rate	9.1	-	12.0	%	10.0	%	9.0	-	11.0	%	9.6	%
	• Servicing expense	$70	-	$85		$74		$70	-	$85		$75

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

(In Thousands)	June 30, 2020		December 31, 2019
Prepayment rate
10% adverse change	$	(4,532)	$	(4,195)
20% adverse change		(8,719)		(8,091)
Discount rate
10% adverse change	$	(2,588)	$	(3,450)
20% adverse change		(4,998)		(6,654)
Cost of servicing
10% adverse change	$	(1,446)	$	(1,648)
20% adverse change		(2,892)		(3,297)

SBA | Freddie Mac

Schedule of servicing rights

	As of June 30, 2020				As of December 31, 2019
	Unpaid Principal				Unpaid Principal
(In Thousands)	Amount		Carrying Value		Amount		Carrying Value
SBA	$	576,416	$	17,318	$	568,017	$	17,660
Freddie Mac multi-family		1,399,652		16,798		1,167,476		13,135
Total	$	1,976,068	$	34,116	$	1,735,493	$	30,795

Schedule of mortgage servicing rights portfolio

		June 30, 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	6.8	-	21.1	%	9.2	%	6.3	-	21.2	%	9.3	%
	• Forward default rate	0.0	-	10.2	%	7.4	%	0.0	-	10.8	%	7.3	%
	• Discount rate	7.1	-	7.1	%	7.1	%	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	%	6.6	%	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)	June 30, 2020		December 31, 2019
SBA servicing rights (at amortized cost)
• Forward prepayment rate
10% adverse change	$	(587)	$	(563)
20% adverse change		(1,143)		(1,097)
• Default rate
10% adverse change	$	(102)	$	(94)
20% adverse change		(204)		(186)
• Discount rate
10% adverse change	$	(446)	$	(520)
20% adverse change		(870)		(1,011)
Freddie Mac multi-family servicing rights (at amortized cost)
• Forward prepayment rate
10% adverse change	$	(369)	$	(285)
20% adverse change		(722)		(558)
• Default rate
10% adverse change	$	(6)	$	(5)
20% adverse change		(12)		(10)
• Discount rate
10% adverse change	$	(470)	$	(381)
20% adverse change		(920)		(746)