Disclosures about Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Disclosures about Fair Value of Assets and Liabilities

Schedule of fair value measurement of assets measured at fair value on recurring basis

	Fair Value Measurements Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
Assets	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2018
Trading securities	$	74,116	$	—	$	74,116	$	—
Available-for-sale securities:
Treasury notes		3,465		3,465		—		—
Federal agencies		240,544		—		240,544		—
Equities		72		72		—		—
Municipals		—				—		—
Mortgage-backed - Government-sponsored entity (GSE) - residential		25,628		—		25,628		—
Loans held for sale		5,888		—		5,888		—
Mortgage servicing rights		71,490		—		—		71,490
Derivative assets - interest rate lock commitments		68		—		—		68
Derivative assets - forward contracts		6		—		6		—
Derivative liabilities - interest rate lock commitments		—		—		—		—
Derivative liabilities - forward contracts		1		—		1		—
December 31, 2017
Trading securities	$	140,837	$	—	$	140,837	$	—
Available-for-sale securities:
Treasury notes		992		992		—		—
Federal agencies		374,731		—		374,731		—
Municipals		6,688		—		—		6,688
Mortgage-backed - Government-sponsored entity (GSE) - residential		25,960		—		25,960		—
Mortgage servicing rights		66,079		—		—		66,079

Schedule of Level 3 reconciliation of recurring fair value measurements

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)				(In thousands)
Mortgage servicing rights
Balance, beginning of period	$	70,085	$	57,557	$	66,079	$	53,670
Additions
Originated and purchased servicing		1,563		3,015		7,265		8,984
Acquisition of RICHMAC		—		3,970		—		3,970
Subtractions
Paydowns		(658)		(1,083)		(3,267)		(3,813)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model		500		(1,437)		1,413		(789)
Balance, end of period	$	71,490	$	62,022	$	71,490	$	62,022
Available-for-sale securities - Municipals
Balance, beginning of period	$	6,431	$	—	$	6,688	$	—
Additions
Purchased securities		—		—		—		—
Subtractions
Paydowns		—		—		(257)		—
Sales		(6,431)		—		(6,431)		—
Unrealized gains (losses) included in other comprehensive income		—		—		—		—
Balance, end of period	$	—	$	—	$	—	$	—
Derivative Assets - interest rate lock commitments
Balance, beginning of period	$	170	$	—	$	—	$	—
Purchases		—		—		—		—
Changes in fair value		(102)		—		68		—
Balance, end of period	$	68	$	—	$	68	$	—
Derivative Liabilities - interest rate lock commitments
Balance, beginning of period	$	7	$	—	$	—	$	—
Purchases		—		—		—		—
Changes in fair value		(7)		—		—		—
Balance, end of period	$	—	$	—	$	—	$	—

Schedule of fair value measurement of assets and liabilities measured at fair value on nonrecurring basis

	Fair Value Measurements Using
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
Assets	Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2018
Impaired loans (collateral-dependent)	$	149	$	—	$	—	$	149
December 31, 2017
Impaired loans (collateral-dependent)	$	2,126	$	—	$	—	$	2,126

Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill

			Valuation
	Fair Value		Technique	Unobservable Inputs	Range
	(In thousands)
At September 30, 2018:
Collateral-dependent impaired loans	$	149	Market comparable properties	Marketability discount	60%
Mortgage servicing rights	$	71,490	Discounted cash flow	Discount rate	8% - 13%
				Constant prepayment rate	1% - 29%
Derivative assets - interest rate lock commitments	$	68	Discounted cash flow	loan closing rates	73-99%
Derivative liabilities - interest rate lock commitments	$	—	Discounted cash flow	loan closing rates	73-99%
At December 31, 2017:
Collateral-dependent impaired loans	$	2,126	Market comparable properties	Marketability discount	5% - 47%
Mortgage servicing rights	$	66,079	Discounted cash flow	Discount rate	8% - 13%
				Constant prepayment rate	1% - 36%

Schedule of carrying amount and estimated fair value of financial instruments

			Fair Value Measurements Using
					Quoted Prices in		Significant
					Active Markets		Other		Significant
					for Identical		Observable		Unobservable
	Carrying		Fair		Assets		Inputs		Inputs
Assets	Value		Value		(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2018
Financial assets:
Cash and cash equivalents	$	410,756	$	410,756	$	410,756	$	—	$	—
Securities purchased under agreements to resell		6,913		6,913		—		6,913		—
FHLB stock		7,608		7,608		—		7,608		—
Loans held for sale		998,514		998,514		—		998,514		—
Loans, net		1,905,859		1,913,120		—		—		1,913,120
Interest receivable		12,289		12,289		—		12,289		—
Financial liabilities:
Deposits		3,302,369		3,301,588		2,712,109		589,479		—
Line of credit		25,000		25,000		—		25,000		—
Short-term subordinated debt		39,534		39,534		—		39,534		—
FHLB advances		2,745		2,723		—		2,723		—
Interest payable		6,064		6,064		—		6,064		—
December 31, 2017
Financial assets:
Cash and cash equivalents	$	359,519	$	359,519	$	359,519	$	—	$	—
Securities purchased under agreements to resell		7,043		7,043		—		7,043		—
FHLB stock		7,539		7,539		—		7,539		—
Loans held for sale		995,319		995,319		—		995,319		—
Loans, net		1,366,349		1,364,568		—		—		1,364,568
Interest receivable		8,326		8,326		—		8,326		—
Financial liabilities:
Deposits		2,943,561		2,943,173		2,534,605		408,568		—
Line of credit		25,000		25,000		—		25,000		—
Short-term subordinated debt		30,000		30,000		—		30,000		—
FHLB advances		1,612		1,620		—		1,620		—
Interest payable		2,817		2,817		—		2,817		—