Disclosures about Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019
Trading securities	$	227,914	$	—	$	227,914	$	—
Available-for-sale securities:
Treasury notes		2,765		2,765		—		—
Federal agencies		257,388		—		257,388		—
Municipals		12,760		—		12,760		—
Mortgage-backed - Government-sponsored entity (GSE) - residential		35,760		—		35,760		—
Loans held for sale		23,357		—		23,357		—
Mortgage servicing rights		71,989		—		—		71,989
Derivative assets - interest rate lock commitments		296		—		—		296
Derivative assets - forward contracts		14		—		14		—
Derivative assets - interest rate swaps		48		—		48		—
Derivative liabilities - interest rate lock commitments		8		—		—		8
Derivative liabilities - forward contracts		16		—		16		—
Derivative liabilities - interest rate swaps		48		—		48		—
December 31, 2018
Trading securities	$	163,419	$	—	$	163,419	$	—
Available-for-sale securities:
Treasury notes		11,941		11,941		—		—
Federal agencies		236,930		—		236,930		—
Municipals		21,332		—		21,332		—
Mortgage-backed - Government-sponsored entity (GSE) - residential		60,868		—		60,868		—
Loans held for sale		11,886		—		11,886		—
Mortgage servicing rights		77,844		—		—		77,844
Derivative assets - interest rate lock commitments		70		—		—		70
Derivative liabilities - forward contracts		9		—		9		—

Schedule of Level 3 reconciliation of recurring fair value measurements

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(In thousands)				(In thousands)
Mortgage servicing rights
Balance, beginning of period	$	74,550	$	70,085	$	77,844	$	66,079
Additions
Originated and purchased servicing		1,356		1,563		4,637		7,265
Subtractions
Paydowns		(2,438)		(658)		(4,627)		(3,267)
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model		(1,479)		500		(5,865)		1,413
Balance, end of period	$	71,989	$	71,490	$	71,989	$	71,490
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	$	147	$	170	$	70	$	—
Changes in fair value		149		(102)		226		68
Balance, end of period	$	296	$	68	$	296	$	68
Derivative Liabilities - interest rate lock commitments
Balance, beginning of period	$	3	$	7	$	—	$	—
Changes in fair value		5		(7)		8		—
Balance, end of period	$	8	$	—	$	8		—

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, 2019
Impaired loans (collateral-dependent)	$	1,600	$	—	$	—	$	1,600
December 31, 2018
Impaired loans (collateral-dependent)	$	2,639	$	—	$	—	$	2,639

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, 2019:
Collateral-dependent impaired loans	$	1,600	Market comparable properties	Marketability discount	37%
Mortgage servicing rights	$	71,989	Discounted cash flow	Discount rate	8% - 13%
				Constant prepayment rate	1% - 39%
Derivative assets - interest rate lock commitments	$	296	Discounted cash flow	loan closing rates	73-99%
Derivative liabilities - interest rate lock commitments	$	8	Discounted cash flow	loan closing rates	73-99%
At December 31, 2018:
Collateral-dependent impaired loans	$	2,639	Market comparable properties	Marketability discount	17%-59%
Mortgage servicing rights	$	77,844	Discounted cash flow	Discount rate	8% - 13%
				Constant prepayment rate	1% - 30%
Derivative assets - interest rate lock commitments	$	70	Discounted cash flow	loan closing rates	95-100%

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, 2019
Financial assets:
Cash and cash equivalents	$	364,976	$	364,976	$	364,976	$	—	$	—
Securities purchased under agreements to resell		6,760		6,760		—		6,760		—
FHLB stock		18,808		18,808		—		18,808		—
Loans held for sale		2,475,181		2,475,181		—		2,475,181		—
Loans, net		2,742,088		2,728,683		—		—		2,728,683
Interest receivable		18,780		18,780		—		18,780		—
Financial liabilities:
Deposits		5,499,649		5,500,297		3,248,689		2,251,608		—
Lines of credit		—		—		—		—		—
Short-term subordinated debt		12,000		12,000		—		12,000		—
FHLB advances		147,673		147,772		—		147,772		—
Interest payable		13,130		13,130		—		13,130		—
December 31, 2018
Financial assets:
Cash and cash equivalents	$	336,524	$	336,524	$	336,524	$	—	$	—
Securities purchased under agreements to resell		6,875		6,875		—		6,875		—
FHLB stock		7,974		7,974		—		7,974		—
Loans held for sale		820,569		820,569		—		820,569		—
Loans, net		2,045,423		2,041,772		—		—		2,041,772
Interest receivable		13,827		13,827		—		13,827		—
Financial liabilities:
Deposits		3,231,086		3,230,397		2,550,632		679,765		—
Lines of credit		33,150		33,150		—		33,150		—
Short-term subordinated debt		10,582		10,582		—		10,582		—
FHLB advances		151,721		151,723		—		151,723		—
Interest payable		4,132		4,132		—		4,132		—