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MORTGAGE BANKING ACTIVITIES (Tables)
6 Months Ended
Jun. 30, 2020
MORTGAGE BANKING ACTIVITIES  
Activity for Mortgage Loans Held for Sale, at fair value

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Three Months Ended

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Six Months Ended

    

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June 30, 

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June 30, 

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(in thousands)

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2020

    

2019

    

2020

    

2019

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Balance, beginning of period

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$

39,384

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$

11,313

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$

19,224

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$

8,971

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Origination of mortgage loans held for sale

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218,668

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81,982

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343,941

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122,696

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Proceeds from the sale of mortgage loans held for sale

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(226,723)

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(81,630)

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(336,641)

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(121,262)

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Net gain on sale of mortgage loans held for sale

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8,699

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2,218

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13,504

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3,478

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Balance, end of period

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$

40,028

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$

13,883

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$

40,028

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$

13,883

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Components of Mortgage Banking Income

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Three Months Ended

    

Six Months Ended

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June 30, 

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June 30, 

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(in thousands)

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2020

    

2019

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2020

    

2019

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Net gain realized on sale of mortgage loans held for sale

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$

6,050

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$

1,896

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$

9,128

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$

2,771

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Net change in fair value recognized on loans held for sale

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614

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128

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1,256

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46

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Net change in fair value recognized on rate lock loan commitments

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(132)

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379

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3,647

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866

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Net change in fair value recognized on forward contracts

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2,167

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(185)

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(527)

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(205)

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Net gain recognized

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8,699

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2,218

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13,504

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3,478

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Loan servicing income

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707

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609

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1,382

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1,210

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Amortization of mortgage servicing rights

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(1,008)

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(411)

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(1,593)

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(733)

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Change in mortgage servicing rights valuation allowance

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—

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—

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(100)

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—

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Net servicing income recognized

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(301)

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198

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(311)

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477

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Total Mortgage Banking income

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$

8,398

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$

2,416

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$

13,193

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$

3,955

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Activity for capitalized mortgage servicing rights

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Three Months Ended

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Six Months Ended

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June 30, 

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June 30, 

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(in thousands)

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2020

    

2019

    

2020

    

2019

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Balance, beginning of period

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$

5,994

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$

4,935

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$

5,888

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$

4,919

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Additions

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1,725

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634

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2,516

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972

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Amortized to expense

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(1,008)

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(411)

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(1,593)

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(733)

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Change in valuation allowance

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—

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—

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(100)

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—

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Balance, end of period

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$

6,711

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$

5,158

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$

6,711

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$

5,158

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Schedule of activity in the valuation allowance for capitalized mortgage servicing rights

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Three Months Ended

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Six Months Ended

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June 30, 

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June 30, 

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(in thousands)

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2020

    

2019

    

2020

    

2019

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Beginning valuation allowance

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$

—

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$

—

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$

—

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$

—

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Charge (credit) during the period

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—

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—

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100

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—

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Ending valuation allowance

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$

—

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$

—

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$

100

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$

—

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Other information relating to mortgage servicing rights

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(in thousands)

    

June 30, 2020

  

  

December 31, 2019

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Fair value of mortgage servicing rights portfolio

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$

6,892

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$

9,068

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Monthly weighted average prepayment rate of unpaid principal balance*

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330

%

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202

%

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Discount rate

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10.00

%

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10.00

%

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Weighted average foreclosure rate

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0.13

%

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0.14

%

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Weighted average life in years

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4.12

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5.76

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*

Rates are applied to individual tranches with similar characteristics.

Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives

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June 30, 2020

    

December 31, 2019

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Notional

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Notional

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(in thousands)

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Amount

    

Fair Value

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Amount

    

Fair Value

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Included in Mortgage loans held for sale:

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Mortgage loans held for sale, at fair value

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$

38,238

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$

40,028

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$

18,690

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$

19,224

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Included in other assets:

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Rate lock loan commitments

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$

110,176

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$

4,436

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$

32,776

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$

789

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Included in other liabilities:

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Mandatory forward contracts

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$

128,040

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$

659

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$

44,919

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$

131

​