Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35424 | |
Entity Registrant Name | HOMESTREET, INC. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-0186600 | |
Entity Address, Address Line One | 601 Union Street | |
Entity Address, Address Line Two | Suite 2000 | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98101 | |
City Area Code | 206 | |
Local Phone Number | 623-3050 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | HMST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 18,703,586 | |
Entity Central Index Key | 0001518715 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 73,862 | $ 65,214 |
Investment securities | 1,083,640 | 1,006,691 |
Loans held for sale ("LHFS") | 59,150 | 176,131 |
Loans held for investment ("LHFI") (net of allowance for credit losses of $37,944 and $47,123) | 5,826,546 | 5,495,726 |
Mortgage servicing rights ("MSRs") | 111,657 | 100,999 |
Premises and equipment, net | 56,269 | 58,154 |
Other real estate owned ("OREO") | 735 | 735 |
Goodwill and other intangible assets | 31,464 | 31,709 |
Other assets | 267,571 | 268,732 |
Total assets | 7,510,894 | 7,204,091 |
Liabilities: | ||
Deposits | 6,270,535 | 6,146,509 |
Borrowings | 273,000 | 41,000 |
Long-term debt | 224,137 | 126,026 |
Accounts payable and other liabilities | 141,991 | 175,217 |
Total liabilities | 6,909,663 | 6,488,752 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, no par value, authorized 160,000,000 shares, issued and outstanding, 18,700,536 shares and 20,085,336 shares | 223,718 | 249,856 |
Retained earnings | 408,442 | 444,343 |
Accumulated other comprehensive income (loss) | (30,929) | 21,140 |
Total shareholders' equity | 601,231 | 715,339 |
Total liabilities and shareholders' equity | $ 7,510,894 | $ 7,204,091 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 37,944 | $ 47,123 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 18,700,536 | 20,085,336 |
Common stock, shares outstanding (in shares) | 18,700,536 | 20,085,336 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income: | ||
Loans | $ 52,954 | $ 53,568 |
Investment securities | 5,966 | 5,951 |
Cash, Fed Funds and other | 108 | 172 |
Total interest income | 59,028 | 59,691 |
Interest expense: | ||
Deposits | 2,284 | 3,650 |
Borrowings | 2,198 | 1,524 |
Total interest expense | 4,482 | 5,174 |
Net interest income | 54,546 | 54,517 |
Provision for credit losses | (9,000) | 0 |
Net interest income after provision for credit losses | 63,546 | 54,517 |
Noninterest income: | ||
Net gain on loan origination and sale activities | 8,274 | 33,459 |
Loan servicing income | 3,304 | 748 |
Deposit fees | 2,075 | 1,824 |
Other | 1,905 | 2,802 |
Total noninterest income | 15,558 | 38,833 |
Noninterest expense: | ||
Compensation and benefits | 32,031 | 35,835 |
Information services | 7,062 | 6,784 |
Occupancy | 6,365 | 6,492 |
General, administrative and other | 9,015 | 7,497 |
Total noninterest expense | 54,473 | 56,608 |
Income before income taxes | 24,631 | 36,742 |
Income tax expense | 4,680 | 7,079 |
Net income | $ 19,951 | $ 29,663 |
Net income per share: | ||
Basic (in dollars per share) | $ 1.02 | $ 1.37 |
Diluted (in dollars per share) | $ 1.01 | $ 1.35 |
Weighted average shares outstanding: | ||
Basic (in shares) | 19,585,753 | 21,637,671 |
Diluted (in shares) | 19,791,913 | 21,961,828 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 19,951 | $ 29,663 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on investment securities available for sale ("AFS") | (68,187) | (19,681) |
Reclassification for net (gains) losses included in income | (71) | 0 |
Other comprehensive income (loss) before tax | (68,258) | (19,681) |
Income tax impact of: | ||
Unrealized gain (loss) on investment securities AFS | (16,172) | (4,133) |
Reclassification for net (gains) losses included in income | (17) | 0 |
Total | (16,189) | (4,133) |
Other comprehensive income (loss) | (52,069) | (15,548) |
Total comprehensive income (loss) | $ (32,118) | $ 14,115 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Retained earnings | Accumulated other comprehensive income (loss) |
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2020 | 21,796,904 | |||
Beginning balance at Dec. 31, 2020 | $ 717,750 | $ 278,505 | $ 403,888 | $ 35,357 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 29,663 | 29,663 | ||
Share-based compensation expense | 810 | $ 810 | ||
Common stock issued - Option exercise; stock grants (in shares) | 188,257 | |||
Common stock issued - Option exercise; stock grants | 1,849 | $ 1,849 | ||
Other comprehensive income (loss) | (15,548) | (15,548) | ||
Dividends declared on common stock | (5,534) | (5,534) | ||
Common stock repurchased (in shares) | (624,647) | |||
Common stock repurchased | (27,527) | $ (11,222) | (16,305) | |
Common stock shares outstanding, ending balance (in shares) at Mar. 31, 2021 | 21,360,514 | |||
Ending balance at Mar. 31, 2021 | $ 701,463 | $ 269,942 | 411,712 | 19,809 |
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2021 | 20,085,336 | 20,085,336 | ||
Beginning balance at Dec. 31, 2021 | $ 715,339 | $ 249,856 | 444,343 | 21,140 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 19,951 | 19,951 | ||
Share-based compensation expense | 1,076 | $ 1,076 | ||
Common stock issued - Option exercise; stock grants (in shares) | 104,840 | |||
Common stock issued - Option exercise; stock grants | 0 | $ 0 | ||
Other comprehensive income (loss) | (52,069) | (52,069) | ||
Dividends declared on common stock | (7,164) | (7,164) | ||
Common stock repurchased (in shares) | (1,489,640) | |||
Common stock repurchased | $ (75,902) | $ (27,214) | (48,688) | |
Common stock shares outstanding, ending balance (in shares) at Mar. 31, 2022 | 18,700,536 | 18,700,536 | ||
Ending balance at Mar. 31, 2022 | $ 601,231 | $ 223,718 | $ 408,442 | $ (30,929) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared on common stock (USD per share) | $ 0.35 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 19,951 | $ 29,663 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for credit losses | (9,000) | 0 |
Depreciation and amortization, premises and equipment | 2,593 | 2,408 |
Amortization of premiums and discounts: securities, deposits, debt | 999 | 1,234 |
Operating leases: excess of payments over amortization | (1,096) | (990) |
Amortization of finance leases | 143 | 269 |
Amortization of core deposit intangibles | 245 | 294 |
Amortization of deferred loan fees and costs | (322) | (818) |
Share-based compensation expense | 1,076 | 810 |
Lease impairment costs | 0 | 194 |
Deferred income tax expense (benefit) | 5,363 | 4,448 |
Origination of LHFS | (252,102) | (734,572) |
Proceeds from sale of LHFS | 372,464 | 719,448 |
Net fair value adjustment and gain on sale of LHFS | 3,348 | (12,799) |
Origination of MSRs | (5,492) | (11,126) |
Net gain on sale of loans originated as LHFI | 0 | (2,795) |
Change in fair value of MSRs | (6,878) | (5,770) |
Amortization of servicing rights | 1,712 | 1,344 |
Net change in trading securities | (19,313) | 0 |
(Increase) decrease in other assets | 5,972 | 11,519 |
Increase (decrease) in accounts payable and other liabilities | 4,226 | (4,942) |
Net cash provided by (used in) operating activities | 123,889 | (2,181) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment securities | (161,016) | (49,433) |
Proceeds from sale of investment securities | 962 | |
Principal payments on investment securities | 34,129 | 55,863 |
Proceeds from sale of OREO | 952 | |
Proceeds from sale of loans originated as LHFI | 0 | 132,694 |
Net increase in LHFI | (328,288) | (176,655) |
Purchase of premises and equipment | (1,444) | (531) |
Proceeds from sale of Federal Home Loan Bank stock | 16,003 | 53,880 |
Purchases of Federal Home Loan Bank stock | (25,238) | (43,412) |
Net cash used in investing activities | (463,940) | (27,594) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Increase (decrease) in deposits, net | 100,973 | 309,634 |
Changes in short-term borrowings, net | 232,000 | (238,300) |
Proceeds from debt issuance, net | 98,035 | 0 |
Repayment of finance lease principal | (145) | (235) |
Repurchases of common stock | (75,000) | (25,001) |
Proceeds from exercise of stock options | 0 | 263 |
Dividends paid on common stock | (7,164) | (5,534) |
Net cash provided by financing activities | 348,699 | 40,827 |
Net increase in cash and cash equivalents | 8,648 | 11,052 |
Cash and cash equivalents, beginning of year | 65,214 | 58,049 |
Cash and cash equivalents, end of period | 73,862 | 69,101 |
Cash paid during the period for: | ||
Interest | 2,691 | 4,291 |
Federal and state income taxes | 4 | 50 |
Non-cash activities: | ||
Increase in lease assets and lease liabilities | 2,053 | 283 |
Loans transferred from LHFI to LHFS, net | 6,731 | 130,218 |
Ginnie Mae loans derecognized with the right to repurchase, net | 2,402 | 19,576 |
Repurchase of common stock-award shares | $ 902 | $ 2,526 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: HomeStreet, Inc., a State of Washington corporation organized in 1921 (the "Corporation"), is a Washington-based diversified financial services holding company whose operations are primarily conducted through its wholly owned subsidiaries (collectively the "Company") HomeStreet Capital Corporation, HomeStreet Statutory Trusts and HomeStreet Bank (the "Bank"), and the Bank's subsidiaries, Continental Escrow Company, HomeStreet Foundation, HS Properties, Inc., HS Evergreen Corporate Center LLC, and Union Street Holdings LLC. The Company is principally engaged in commercial banking, mortgage banking and consumer/retail banking activities serving customers primarily in the Western United States. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company allocates resources and assesses financial performance on a consolidated basis and therefore has one reporting segment. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates. Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation. These unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report on Form 10-Q. The results of operations in the interim financial statements do not necessarily indicate the results that may be expected for the full year. The interim financial information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission ("2021 Annual Report on Form 10-K"). Recent Accounting Developments In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR rates expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the transition to alternative rates. The ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. These ASUs are not expected to have a material impact on the Company’s financial position or results of operations. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES: The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and held-to-maturity ("HTM"): At March 31, 2022 (in thousands) Amortized Gross Gross Fair AFS Mortgage backed securities ("MBS"): Residential $ 30,689 $ 6 $ (1,508) $ 29,187 Commercial 70,312 38 (3,958) 66,392 Collateralized mortgage obligations ("CMOs"): Residential 276,246 186 (9,940) 266,492 Commercial 138,168 135 (3,424) 134,879 Municipal bonds 535,353 2,802 (23,016) 515,139 Corporate debt securities 26,850 97 (574) 26,373 U.S. Treasury securities 23,263 — (1,541) 21,722 Total $ 1,100,881 $ 3,264 $ (43,961) $ 1,060,184 HTM Municipal bonds $ 4,143 $ 8 $ (17) $ 4,134 At December 31, 2021 (in thousands) Amortized Gross Gross Fair AFS MBS: Residential $ 32,905 $ 396 $ (338) $ 32,963 Commercial 62,094 933 (235) 62,792 CMOs: Residential 186,703 2,012 (1,321) 187,394 Commercial 135,102 1,890 (333) 136,659 Municipal bonds 516,693 24,154 (924) 539,923 Corporate debt securities 18,918 699 (1) 19,616 U.S. Treasury securities 23,348 — (173) 23,175 Total $ 975,763 $ 30,084 $ (3,325) $ 1,002,522 HTM Municipal bonds $ 4,169 $ 136 $ — $ 4,305 At March 31, 2022, the Company held $19 million of trading securities, consisting of US Treasury notes used as economic hedges of our mortgage servicing rights, which are carried at fair value and included as investment securities on the balance sheet. Unrealized losses on trading securities, which are included in loan servicing income, were $0.7 million in the quarter ended March 31, 2022. MBS and CMOs represent securities issued by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by either collateral or revenues from the specific project being financed) issued by various municipal corporations. As of March 31, 2022 and December 31, 2021, all securities held, including municipal bonds and corporate debt securities, were rated investment grade, based upon external ratings where available and, where not available, based upon internal ratings which correspond to ratings as defined by Standard and Poor's Rating Services or Moody's Investors Services. Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position: At March 31, 2022 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AFS MBS: Residential $ (1,064) $ 25,716 $ (444) $ 2,233 $ (1,508) $ 27,949 Commercial (3,958) 58,243 — — (3,958) 58,243 CMOs: Residential (7,475) 177,481 (2,465) 21,315 (9,940) 198,796 Commercial (2,802) 103,919 (622) 7,608 (3,424) 111,527 Municipal bonds (21,126) 375,801 (1,890) 12,141 (23,016) 387,942 Corporate debt securities (574) 16,758 — — (574) 16,758 U.S. Treasury securities (1,541) 21,723 — — (1,541) 21,723 Total $ (38,540) $ 779,641 $ (5,421) $ 43,297 $ (43,961) $ 822,938 HTM Municipal bonds $ (17) $ 2,474 $ — $ — $ (17) $ 2,474 At December 31, 2021 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair MBS: Residential $ (38) $ 5,324 $ (300) $ 2,406 $ (338) $ 7,730 Commercial (235) 18,127 — — (235) 18,127 CMOs: Residential (1,007) 53,068 (314) 7,116 (1,321) 60,184 Commercial (135) 14,806 (198) 5,132 (333) 19,938 Municipal bonds (914) 64,237 (10) 1,058 (924) 65,295 Corporate debt securities (1) 3,164 — — (1) 3,164 U.S. Treasury securities (173) 23,175 — — (173) 23,175 Total $ (2,503) $ 181,901 $ (822) $ 15,712 $ (3,325) $ 197,613 The Company has evaluated AFS securities that are in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of March 31, 2022 or December 31, 2021. In addition, as of March 31, 2022 and December 31, 2021, the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis. The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield: At March 31, 2022 Within one year After one year After five years After Total (dollars in thousands) Fair Weighted Fair Weighted Fair Weighted Fair Weighted Fair Weighted AFS Municipal bonds $ 4,159 3.57 % $ 13,675 3.23 % $ 66,619 3.40 % $ 430,686 3.03 % $ 515,139 3.09 % Corporate debt securities — — % 5,573 3.54 % 20,800 4.39 % — — % 26,373 4.22 % U.S. Treasury securities — — % — — % 21,722 1.20 % — — % 21,722 1.20 % Total $ 4,159 3.57 % $ 19,248 3.32 % $ 109,141 3.13 % $ 430,686 3.03 % $ 563,234 3.07 % HTM Municipal bonds $ 1,659 2.91 % $ 2,475 2.07 % $ — — % $ — — % $ 4,134 2.41 % At December 31, 2021 Within one year After one year After five years After Total (dollars in thousands) Fair Weighted Fair Weighted Fair Weighted Fair Weighted Fair Weighted AFS Municipal bonds $ 4,933 3.79 % $ 14,366 3.26 % $ 68,025 3.60 % $ 452,599 3.23 % $ 539,923 3.28 % Corporate debt securities — — % 6,563 3.60 % 13,053 5.03 % — — % 19,616 4.55 % U.S. Treasury securities — — % — — % 23,175 1.27 % — — % 23,175 1.27 % Total $ 4,933 3.79 % $ 20,929 3.37 % $ 104,253 3.23 % $ 452,599 3.23 % $ 582,714 3.24 % HTM Municipal bonds $ 1,684 2.86 % $ 2,621 2.12 % $ — — % $ — — % $ 4,305 2.42 % The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security and does not include adjustments to a tax equivalent basis. MBS and CMOs are excluded from the tables above because such securities are not due on a single maturity date. The weighted average yield of MBS and CMOs as of March 31, 2022 and December 31, 2021 was 1.88% and 1.82%, respectively. Sales of AFS investment securities were as follows: Quarter Ended March 31, (in thousands) 2022 Proceeds $ 962 Gross gains 71 Gross losses — The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law: (in thousands) At March 31, 2022 At December 31, 2021 Washington, Oregon and California State to secure public deposits $ 201,444 $ 206,153 Other securities pledged 4,972 5,258 Total securities pledged as collateral $ 206,416 $ 211,411 The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little credit risk. Tax-exempt interest income on investment securities was $2.7 million and $2.4 million for the quarters ended March 31, 2022 and 2021, respectively. |
LOANS AND CREDIT QUALITY
LOANS AND CREDIT QUALITY | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
LOANS AND CREDIT QUALITY | LOANS AND CREDIT QUALITY: The Company's LHFI is divided into two portfolio segments, commercial loans and consumer loans. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loans within the commercial loan portfolio segment and single family and home equity and other loans within the consumer loan portfolio segment. LHFI consists of the following: (in thousands) At March 31, 2022 At December 31, 2021 CRE Non-owner occupied CRE $ 699,277 $ 705,359 Multifamily 2,729,775 2,415,359 Construction/land development 528,134 496,144 Total 3,957,186 3,616,862 Commercial and industrial loans Owner occupied CRE 464,356 457,706 Commercial business 387,938 401,872 Total 852,294 859,578 Consumer loans Single family (1) 759,286 763,331 Home equity and other 295,724 303,078 Total 1,055,010 1,066,409 Total LHFI 5,864,490 5,542,849 Allowance for credit losses ("ACL") (37,944) (47,123) Total LHFI less ACL $ 5,826,546 $ 5,495,726 (1) Includes $7.0 million and $7.3 million at March 31, 2022 and December 31, 2021, respectively, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements. Loans totaling $3.2 billion and $2.8 billion at March 31, 2022 and December 31, 2021, respectively, were pledged to secure borrowings from the Federal Home Loan Bank ("FHLB") and loans totaling $421 million and $419 million at March 31, 2022 and December 31, 2021, respectively, were pledged to secure borrowings from the Federal Reserve Bank of San Francisco ("FRBSF"). Credit Risk Concentrations LHFI are primarily secured by real estate located in the Pacific Northwest, California and Hawaii. At March 31, 2022 and December 31, 2021, multifamily loans in the state of California represented 34% and 33% of the total LHFI portfolio, respectively. Credit Quality Management considers the level of ACL to be appropriate to cover credit losses expected over the life of the loans for the LHFI portfolio. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Bank’s historical loss experience and eight qualitative factors for current and forecasted periods. During the first quarter of 2022, the historical expected loss rates decreased from December 31, 2021 due to minimal charge-offs, improving portfolio credit distribution and favorable product mix risk composition. During the first quarter of 2022, the qualitative factors decreased significantly due to the continued favorable performance and outlook of the impact of the COVID-19 pandemic on our loan portfolio, which resulted in a reduced management overlay. As of March 31, 2022, the Bank expects that the markets in which it operates will have stable collateral values and economic outlook over the two-year forecast period. In addition to the ACL for LHFI, the Company maintains a separate allowance for unfunded loan commitments which is included in accounts payable and other liabilities on our consolidated balance sheets. The allowance for unfunded commitments was $2.6 million and $2.4 million at March 31, 2022 and December 31, 2021, respectively. The Bank has elected to exclude accrued interest receivable from the evaluation of the ACL. Accrued interest on LHFI was $18.1 million and $17.8 million at March 31, 2022 and December 31, 2021, respectively, and was reported in other assets in the consolidated balance sheets. Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows: Quarter Ended March 31, (in thousands) 2022 2021 Beginning balance $ 47,123 $ 64,294 Provision for credit losses (9,223) (371) Net (charge-offs) recoveries 44 124 Ending balance $ 37,944 $ 64,047 Allowance for unfunded commitments: Beginning balance $ 2,404 $ 1,588 Provision for credit losses 223 371 Ending balance $ 2,627 $ 1,959 Provision for credit losses: Allowance for credit losses - loans $ (9,223) $ (371) Allowance for unfunded commitments 223 371 Total $ (9,000) $ — Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows: Quarter Ended March 31, 2022 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending balance CRE Non-owner occupied CRE $ 7,509 $ — $ — $ (5,215) $ 2,294 Multifamily 5,854 — — 2,573 8,427 Construction/land development Multifamily construction 507 — — (51) 456 CRE construction 150 — — 34 184 Single family construction 6,411 — — 1,324 7,735 Single family construction to permanent 1,055 — — (65) 990 Total 21,486 — — (1,400) 20,086 Commercial and industrial loans Owner occupied CRE 5,006 — — (1,470) 3,536 Commercial business 12,273 (11) 24 (5,376) 6,910 Total 17,279 (11) 24 (6,846) 10,446 Consumer loans Single family 4,394 — 4 (636) 3,762 Home equity and other 3,964 (33) 60 (341) 3,650 Total 8,358 (33) 64 (977) 7,412 Total ACL $ 47,123 $ (44) $ 88 $ (9,223) $ 37,944 Quarter Ended March 31, 2021 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending balance CRE Non-owner occupied CRE $ 8,845 $ — $ — $ 373 $ 9,218 Multifamily 6,072 — — 897 6,969 Construction/land development Multifamily construction 4,903 — — (967) 3,936 CRE construction 1,670 — — 238 1,908 Single family construction 5,130 — — (123) 5,007 Single family construction to permanent 1,315 — — (191) 1,124 Total 27,935 — — 227 28,162 Commercial and industrial loans Owner occupied CRE 4,994 — — 272 5,266 Commercial business 17,043 — 74 (12) 17,105 Total 22,037 — 74 260 22,371 Consumer loans Single family 6,906 (70) 120 (221) 6,735 Home equity and other 7,416 (56) 56 (637) 6,779 Total 14,322 (126) 176 (858) 13,514 Total ACL $ 64,294 $ (126) $ 250 $ (371) $ 64,047 The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status. At March 31, 2022 (in thousands) 2022 2021 2020 2019 2018 2017 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Non-owner occupied CRE Pass $ 23,614 $ 68,572 $ 50,276 $ 158,484 $ 121,836 $ 274,775 $ 853 $ 867 $ 699,277 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 23,614 68,572 50,276 158,484 121,836 274,775 853 867 699,277 Multifamily Pass 364,731 1,311,572 551,187 233,790 60,103 179,862 — — 2,701,245 Special Mention — — 8,695 19,835 — — — — 28,530 Substandard — — — — — — — — — Total 364,731 1,311,572 559,882 253,625 60,103 179,862 — — 2,729,775 Multifamily construction Pass — 12,163 24,664 — — — — — 36,827 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total — 12,163 24,664 — — — — — 36,827 CRE construction Pass — 11,668 3,959 — 1,924 548 — — 18,099 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total — 11,668 3,959 — 1,924 548 — — 18,099 Single family construction Pass 31,784 142,275 24,226 12,434 — 76 108,005 — 318,800 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 31,784 142,275 24,226 12,434 — 76 108,005 — 318,800 Single family construction to permanent Current 6,613 106,419 29,026 10,575 1,775 — — — 154,408 Past due: 30-59 days — — — — — — — — — 60-89 days — — — — — — — — — 90+ days — — — — — — — — — Total 6,613 106,419 29,026 10,575 1,775 — — — 154,408 Owner occupied CRE Pass 20,055 70,792 47,176 57,012 46,661 164,101 248 1,689 407,734 Special Mention — — — 18,499 2,180 23,202 — — 43,881 Substandard — — — — 1,111 11,572 — 58 12,741 Total 20,055 70,792 47,176 75,511 49,952 198,875 248 1,747 464,356 Commercial business Pass 32,359 58,371 48,943 36,976 23,289 27,808 113,186 2,131 343,063 Special Mention — 213 29 7,047 838 5,264 7,543 212 21,146 Substandard — 8,214 3,253 2,414 3,392 1,827 4,616 13 23,729 Total 32,359 66,798 52,225 46,437 27,519 34,899 125,345 2,356 387,938 Total commercial portfolio $ 479,156 $ 1,790,259 $ 791,434 $ 557,066 $ 263,109 $ 689,035 $ 234,451 $ 4,970 $ 4,809,480 The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status: At March 31, 2022 (in thousands) 2022 2021 2020 2019 2018 2017 and prior Revolving Revolving-term Total CONSUMER PORTFOLIO Single family Current $ 44,563 $ 178,656 $ 152,443 $ 49,114 $ 56,757 $ 275,042 $ — $ — $ 756,575 Past due: 30-59 days — — — — — 872 — — 872 60-89 days — — — — — 270 — — 270 90+ days — — — 994 452 123 — — 1,569 Total (1) 44,563 178,656 152,443 50,108 57,209 276,307 — — 759,286 Home equity and other Current 797 1,585 334 294 197 2,407 284,426 4,755 294,795 Past due: 30-59 days — 3 — — — — 57 — 60 60-89 days — 8 — — 15 — 7 — 30 90+ days — — — — — 98 679 62 839 Total 797 1,596 334 294 212 2,505 285,169 4,817 295,724 Total consumer portfolio $ 45,360 $ 180,252 $ 152,777 $ 50,402 $ 57,421 $ 278,812 $ 285,169 $ 4,817 $ 1,055,010 Total LHFI $ 524,516 $ 1,970,511 $ 944,211 $ 607,468 $ 320,530 $ 967,847 $ 519,620 $ 9,787 $ 5,864,490 (1) Includes $7.0 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements. The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status: At December 31, 2021 (in thousands) 2021 2020 2019 2018 2017 2016 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Non-owner occupied CRE Pass $ 68,647 $ 50,571 $ 169,711 $ 130,877 $ 100,674 $ 183,024 $ 963 $ 892 $ 705,359 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 68,647 50,571 169,711 130,877 100,674 183,024 963 892 705,359 Multifamily Pass 1,315,204 561,666 286,826 60,372 26,065 165,225 1 — 2,415,359 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 1,315,204 561,666 286,826 60,372 26,065 165,225 1 — 2,415,359 Multifamily construction Pass 7,825 22,863 7,173 — — — — — 37,861 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 7,825 22,863 7,173 — — — — — 37,861 CRE construction Pass 7,694 3,960 — 1,962 — 556 — — 14,172 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 7,694 3,960 — 1,962 — 556 — — 14,172 Single family construction Pass 146,595 35,640 14,509 — — 77 99,206 — 296,027 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 146,595 35,640 14,509 — — 77 99,206 — 296,027 Single family construction to permanent Current 90,311 42,636 13,362 1,775 — — — — 148,084 Past due: 30-59 days — — — — — — — — — 60-89 days — — — — — — — — — 90+ days — — — — — — — — — Total 90,311 42,636 13,362 1,775 — — — — 148,084 Owner occupied CRE Pass 70,902 47,536 57,423 47,716 67,042 106,659 798 2,839 400,915 Special Mention — — — 2,196 6,019 145 — 60 8,420 Substandard — — 18,665 1,111 10,151 18,444 — — 48,371 Total 70,902 47,536 76,088 51,023 83,212 125,248 798 2,899 457,706 Commercial business Pass 88,139 51,453 44,882 24,711 11,859 21,258 112,759 2,104 357,165 Special Mention — — 7,396 — 4,396 — 5,613 134 17,539 Substandard 9,716 3,399 1,667 5,928 1,096 1,328 3,932 102 27,168 Total 97,855 54,852 53,945 30,639 17,351 22,586 122,304 2,340 401,872 Total commercial portfolio $ 1,805,033 $ 819,724 $ 621,614 $ 276,648 $ 227,302 $ 496,716 $ 223,272 $ 6,131 $ 4,476,440 The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status: At December 31, 2021 (in thousands) 2021 2020 2019 2018 2017 2016 and prior Revolving Revolving-term Total CONSUMER PORTFOLIO Single family Current $ 176,110 $ 156,360 $ 62,369 $ 66,063 $ 95,988 $ 204,229 $ — $ — $ 761,119 Past due: 30-59 days — — 291 — — — — — 291 60-89 days — — — — 314 471 — — 785 90+ days — — 561 452 — 123 — — 1,136 Total (1) 176,110 156,360 63,221 66,515 96,302 204,823 — — 763,331 Home equity and other Current 2,005 474 393 532 516 2,609 290,512 5,273 302,314 Past due: 30-59 days — 3 — — — 94 40 — 137 60-89 days — — — — — — 12 62 74 90+ days 3 — — — — 6 544 — 553 Total 2,008 477 393 532 516 2,709 291,108 5,335 303,078 Total consumer portfolio $ 178,118 $ 156,837 $ 63,614 $ 67,047 $ 96,818 $ 207,532 $ 291,108 $ 5,335 $ 1,066,409 Total LHFI $ 1,983,151 $ 976,561 $ 685,228 $ 343,695 $ 324,120 $ 704,248 $ 514,380 $ 11,466 $ 5,542,849 (1) Includes $7.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements. Collateral Dependent Loans The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type: At March 31, 2022 (in thousands) Land 1-4 Family Non-residential real estate Other non-real estate Total Commercial and industrial loans Owner occupied CRE $ 1,111 $ — $ 2,428 $ — $ 3,539 Commercial business 380 16 562 286 1,244 Total 1,491 16 2,990 286 4,783 Consumer loans Single family — 2,049 — — 2,049 Home equity loans and other — 345 — — 345 Total — 2,394 — — 2,394 Total collateral-dependent loans $ 1,491 $ 2,410 $ 2,990 $ 286 $ 7,177 At December 31, 2021 (in thousands) Land 1-4 Family Non-residential real estate Other non-real estate Total Commercial and industrial loans Owner occupied CRE $ 1,111 $ — $ 2,456 $ — $ 3,567 Commercial business 362 27 562 286 1,237 Total 1,473 27 3,018 286 4,804 Consumer loans Single family — 1,598 — — 1,598 Home equity loans and other — 19 — — 19 Total — 1,617 — — 1,617 Total collateral-dependent loans $ 1,473 $ 1,644 $ 3,018 $ 286 $ 6,421 Nonaccrual and Past Due Loans The following table presents nonaccrual status for loans: At March 31, 2022 At December 31, 2021 (in thousands) Nonaccrual with no related ACL Total Nonaccrual Nonaccrual with no related ACL Total Nonaccrual Commercial and industrial loans Owner occupied CRE $ 3,539 $ 3,539 $ 3,568 $ 3,568 Commercial business 1,244 3,996 1,210 5,023 Total 4,783 7,535 4,778 8,591 Consumer loans Single family 2,325 2,918 1,324 2,802 Home equity and other 52 1,393 23 808 Total 2,377 4,311 1,347 3,610 Total nonaccrual loans $ 7,160 $ 11,846 $ 6,125 $ 12,201 The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class: At March 31, 2022 Past Due and Still Accruing (in thousands) 30-59 days 60-89 days 90 days or Nonaccrual Total past due and nonaccrual (3) Current Total CRE Non-owner occupied CRE $ — $ — $ — $ — $ — $ 699,277 $ 699,277 Multifamily — — — — — 2,729,775 2,729,775 Construction/land development Multifamily construction — — — — — 36,827 36,827 CRE construction — — — — — 18,099 18,099 Single family construction — — — — — 318,800 318,800 Single family construction to permanent — — — — — 154,408 154,408 Total — — — — — 3,957,186 3,957,186 Commercial and industrial loans Owner occupied CRE — — — 3,539 3,539 460,817 464,356 Commercial business — — — 3,996 3,996 383,942 387,938 Total — — — 7,535 7,535 844,759 852,294 Consumer loans Single family 3,753 1,821 6,903 (2) 2,918 15,395 743,891 759,286 (1) Home equity and other 61 31 — 1,393 1,485 294,239 295,724 Total 3,814 1,852 6,903 4,311 16,880 1,038,130 1,055,010 Total loans $ 3,814 $ 1,852 $ 6,903 $ 11,846 $ 24,415 $ 5,840,075 $ 5,864,490 % 0.07 % 0.03 % 0.12 % 0.20 % 0.42 % 99.58 % 100.00 % At December 31, 2021 Past Due and Still Accruing (in thousands) 30-59 days 60-89 days 90 days or Nonaccrual Total past due and nonaccrual (3) Current Total CRE Non-owner occupied CRE $ — $ — $ — $ — $ — $ 705,359 $ 705,359 Multifamily — — — — — 2,415,359 2,415,359 Construction/land development Multifamily construction — — — — — 37,861 37,861 CRE construction — — — — — 14,172 14,172 Single family construction — — — — — 296,027 296,027 Single family construction to permanent — — — — — 148,084 148,084 Total — — — — — 3,616,862 3,616,862 Commercial and industrial loans Owner occupied CRE — — — 3,568 3,568 454,138 457,706 Commercial business 198 — — 5,023 5,221 396,651 401,872 Total 198 — — 8,591 8,789 850,789 859,578 Consumer loans Single family 892 820 6,717 (2) 2,802 11,231 752,100 763,331 (1) Home equity and other 118 74 — 808 1,000 302,078 303,078 Total 1,010 894 6,717 3,610 12,231 1,054,178 1,066,409 Total loans $ 1,208 $ 894 $ 6,717 $ 12,201 $ 21,020 $ 5,521,829 $ 5,542,849 % 0.02 % 0.02 % 0.12 % 0.22 % 0.38 % 99.62 % 100.00 % (1) Includes $7.0 million and $7.3 million of loans at March 31, 2022 and December 31, 2021, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements. (2) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. (3) Includes loans whose repayments are insured by the FHA or guaranteed by the VA or SBA of $11.0 million and $8.4 million at March 31, 2022 and December 31, 2021, respectively. Loan Modifications The Company provides modifications to borrowers experiencing financial difficulty which may include delays in payment of amounts due, extension of the terms of the notes or reduction in the interest rates on the notes. In certain instances, the Company may grant more than one type of modification. The granting of modifications in the quarter ending March 31, 2022 did not have any material impact on the ACL. The following tables provide information related to loans modified during the quarter ended March 31, 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted: (in thousands) Significant Payment Delay Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 153 0.02 % (in thousands) Term Extension Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 37 — % (in thousands) Interest Rate Reduction and Term Extension Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 1,110 0.15 % (in thousands) Significant Payment Delay and Term Extension Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 6,397 0.84 % Home equity and other 52 0.02 % (in thousands) Interest Rate Reduction, Significant Payment Delay and Term Extension Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 5,762 0.76 % The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: Loan Type Financial Effect of: Interest Rate Reduction Single family Reduced weighted-average contractual interest rate from 4.28% to 3.25%. Significant Payment Delay Single family Provided payment deferrals to borrowers. A weighted average 0.3% of loan balances were capitalized and added to the remaining term of the loan. Home equity and other Provided payment deferrals to borrowers. A weighted average 6.3% of loan balances were capitalized and added to the remaining term of the loan. Term Extension Single family Added a weighted average 3.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Home equity and other Added a weighted average 16.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2022 | |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
DEPOSITS | DEPOSITS: Deposit balances, including their weighted average rates, were as follows: At March 31, 2022 At December 31, 2021 (dollars in thousands) Amount Weighted Average Rate Amount Weighted Average Rate Noninterest-bearing demand deposits $ 1,654,229 — % $ 1,617,069 — % Interest-bearing demand deposits 591,148 0.10 % 513,810 0.10 % Savings 309,462 0.06 % 302,389 0.06 % Money market 2,800,215 0.18 % 2,806,313 0.15 % Certificates of deposit 915,481 0.45 % 906,928 0.51 % Total $ 6,270,535 0.16 % $ 6,146,509 0.15 % Certificates of deposit outstanding mature as follows: (in thousands) March 31, 2022 Within one year $ 761,588 One to two years 133,251 Two to three years 16,491 Three to four years 2,756 Four to five years 1,395 Total $ 915,481 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: On January 19, 2022, we completed a $100 million subordinated notes offering due in 2032 (the “Notes”). Interest on the Notes initially will accrue at a rate equal to 3.5% per annum from and including the date of original issuance to, but excluding, January 30, 2027, payable semiannually in arrears. From and including January 30, 2027, to, but excluding, the maturity date or the date of earlier redemption, the Notes will bear interest equal to the three-month term Secured Overnight Financing Rate ("SOFR") plus 215 basis points, payable quarterly in arrears. Net proceeds to the Company were $98 million, after deducting underwriting discounts and offering expenses. The Company intends to use a significant portion of the net proceeds from the Notes offering to repurchase shares of its common stock through open market purchases, with the remainder of the net proceeds used for working capital and other general corporate purposes, including support for growth of its total assets. At March 31, 2022 the Company had outstanding $98 million of subordinated notes. At March 31, 2022 and December 31, 2021, the Company had outstanding $64 million of Senior Notes which bear interest at a rate of 6.50% and mature in 2026. The Company issued trust preferred securities during the period from 2005 through 2007, resulting in a debt balance of $62 million that remains outstanding at March 31, 2022 and December 31, 2021. In connection with the issuance of trust preferred securities, HomeStreet, Inc. issued to HomeStreet Statutory Trust Junior Subordinated Deferrable Interest Debentures. The sole assets of the HomeStreet Statutory Trust are the Subordinated Debt Securities I, II, III, and IV. The Subordinated Debt Securities outstanding as of March 31, 2022 and December 31, 2021 are as follows: HomeStreet Statutory Trust (dollars in thousands) I II III IV Date issued June 2005 September 2005 February 2006 March 2007 Amount $5,155 $20,619 $20,619 $15,464 Interest rate 3 MO LIBOR + 1.70% 3 MO LIBOR + 1.50% 3 MO LIBOR + 1.37% 3 MO LIBOR + 1.68% Maturity date June 2035 December 2035 March 2036 June 2037 Call option (1) Quarterly Quarterly Quarterly Quarterly (1) Call options are exercisable at par and are callable, without penalty on a quarterly basis, starting five years after issuance. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES: To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as single family mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges. The notional amounts and fair values for derivatives, which are included in other assets or accounts payable and other liabilities on the consolidated balance sheet, consist of the following: At March 31, 2022 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 670,018 $ 5,079 $ (3,528) Interest rate lock commitments 100,992 683 (605) Interest rate swaps 276,561 5,619 (5,620) Futures 93,200 97 — Options 30,000 389 — Total derivatives before netting $ 1,170,771 11,867 (9,753) Netting adjustment/Cash collateral (1) (9,096) 3,072 Carrying value on consolidated balance sheet $ 2,771 $ (6,681) At December 31, 2021 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 793,208 $ 723 $ (640) Interest rate lock commitments 115,025 2,487 (3) Interest rate swaps 287,352 4,381 (4,541) Futures 139,900 334 — Total derivatives before netting $ 1,335,485 7,925 (5,184) Netting adjustment/Cash collateral (1) 1,355 3,921 Carrying value on consolidated balance sheet $ 9,280 $ (1,263) (1) Includes net cash collateral received of $6.0 million and paid of $5.3 million at March 31, 2022 and December 31, 2021, respectively. The following table presents gross fair value and net carrying value information about derivative instruments: (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value At March 31, 2022 Derivative assets $ 11,867 $ (9,096) $ 2,771 Derivative liabilities (9,753) 3,072 (6,681) At December 31, 2021 Derivative assets $ 7,925 $ 1,355 $ 9,280 Derivative liabilities (5,184) 3,921 (1,263) (1) Includes net cash collateral received of $6.0 million and paid of $5.3 million at March 31, 2022 and December 31, 2021, respectively. The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties is included in other assets. Payables related to cash collateral that has been received from counterparties is included in accounts payable and other liabilities. Interest is owed on amounts received from counterparties and we earn interest on cash paid to counterparties. Any securities pledged to counterparties as collateral remain on the consolidated balance sheets. At March 31, 2022 and December 31, 2021, the Company had liabilities of $7.6 million and zero, respectively, in cash collateral received from counterparties and receivables of $1.6 million and $5.3 million, respectively, in cash collateral paid to counterparties. The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated: Quarter Ended March 31, (in thousands) 2022 2021 Recognized in noninterest income: Net gain (loss) on loan origination and sale activities (1) $ 4,613 $ 3,858 Loan servicing income (loss) (2) (9,439) (12,591) Other (3) 159 299 (1) Comprised of IRLCs and forward contracts used as an economic hedge of loans held for sale. (2) Comprised of interest rate swaps, interest rate swaptions, futures, US Treasury notes and US Treasury options and forward contracts used as economic hedges of single family MSRs. (3) Impact of interest rate swap agreements executed with commercial banking customers. |
MORTGAGE BANKING OPERATIONS
MORTGAGE BANKING OPERATIONS | 3 Months Ended |
Mar. 31, 2022 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING OPERATIONS | MORTGAGE BANKING OPERATIONS: LHFS consisted of the following: (in thousands) At March 31, 2022 At December 31, 2021 Single family $ 48,994 $ 128,041 CRE, multifamily and SBA 10,156 48,090 Total $ 59,150 $ 176,131 Loans sold consisted of the following for the periods indicated: Quarter Ended March 31, (in thousands) 2022 2021 Single family $ 323,070 $ 573,040 CRE, multifamily and SBA 49,137 257,717 Total $ 372,207 $ 830,757 Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: Quarter Ended March 31, (in thousands) 2022 2021 Single family $ 6,169 $ 26,187 CRE, multifamily and SBA 2,105 7,272 Total $ 8,274 $ 33,459 The Company's portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. The unpaid principal balance of loans serviced for others is as follows: (in thousands) At March 31, 2022 At December 31, 2021 Single family $ 5,545,145 $ 5,539,180 CRE, multifamily and SBA 2,035,801 2,031,087 Total $ 7,580,946 $ 7,570,267 The Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, appraisal errors, early payment defaults and fraud. The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses: Quarter Ended March 31, (in thousands) 2022 2021 Balance, beginning of period $ 1,312 $ 2,122 Additions, net of adjustments (1) 358 (20) Realized (losses) recoveries, net (2) (32) (161) Balance, end of period $ 1,638 $ 1,941 (1) Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans. (2) Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related expenses. The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $2.7 million and $1.9 million were recorded in other assets as of March 31, 2022 and December 31, 2021, respectively. When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company records the balance of the loans as other assets and other liabilities. At March 31, 2022 and December 31, 2021, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets totaled $10 million and $12 million, respectively. Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following: Quarter Ended March 31, (in thousands) 2022 2021 Servicing income, net: Servicing fees and other $ 8,321 $ 8,913 Amortization of single family MSRs (1) (3,425) (5,693) Amortization of multifamily and SBA MSRs (1,712) (1,344) Total 3,184 1,876 Risk management, single family MSRs: Changes in fair value of MSRs due to assumptions (2) 10,303 11,463 Net gain (loss) from economic hedging (10,183) (12,591) Total 120 (1,128) Loan servicing income (loss) $ 3,304 $ 748 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. The changes in single family MSRs measured at fair value are as follows: Quarter Ended March 31, (in thousands) 2022 2021 Beginning balance $ 61,584 $ 49,966 Additions and amortization: Originations 3,916 6,616 Amortization (1) (3,425) (5,693) Net additions and amortization 491 923 Changes in fair value assumptions (2) 10,303 11,463 Ending balance $ 72,378 $ 62,352 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows: Quarter Ended March 31, (rates per annum) (1) 2022 2021 Constant prepayment rate ("CPR") (2) 9.38 % 8.37 % Discount rate 8.34 % 8.37 % (1) Based on a weighted average. (2) Represents an expected lifetime average CPR used in the model. For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below: At March 31, 2022 At December 31, 2021 Range of Inputs Average (1) Range of Inputs Average (1) CPRs 7.38% - 16.66% 9.42 % 7.90% - 17.35% 10.35 % Discount Rates 8.10% - 15.18% 9.05 % 6.94% - 13.96% 7.97 % (1) Weighted averages of all the inputs within the range. To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below: (dollars in thousands) At March 31, 2022 Fair value of single family MSR $ 72,378 Expected weighted-average life (in years) 7.14 CPR Impact on fair value of 25 basis points adverse change in interest rates $ (2,208) Impact on fair value of 50 basis points adverse change in interest rates $ (4,909) Discount rate Impact on fair value of 100 basis points increase $ (3,217) Impact on fair value of 200 basis points increase $ (6,187) The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows: Quarter Ended March 31, (in thousands) 2022 2021 Beginning balance $ 39,415 $ 35,774 Originations 1,576 5,196 Amortization (1,712) (1,344) Ending balance $ 39,279 $ 39,626 |
GUARANTEES AND MORTGAGE REPURCH
GUARANTEES AND MORTGAGE REPURCHASE LIABILITY | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
GUARANTEES AND MORTGAGE REPURCHASE LIABILITY | GUARANTEES AND MORTGAGE REPURCHASE LIABILITY: In the ordinary course of business, the Company sells loans through the Fannie Mae Multifamily Delegated Underwriting and Servicing Program ("DUS"®) that are subject to a credit loss sharing arrangement. The Company services the loans for Fannie Mae and shares in the risk of loss with Fannie Mae under the terms of the DUS contracts. Under the DUS program, the Company and Fannie Mae share losses on a pro rata basis, where the Company is responsible for losses incurred up to one-third of principal balance on each loan with two-thirds of the loss covered by Fannie Mae. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. As of March 31, 2022 and December 31, 2021, the total unpaid principal balance of loans sold under this program was $1.9 billion. The Company's reserve liability related to this arrangement totaled $0.6 million at both March 31, 2022 and December 31, 2021. There were no actual losses incurred under this arrangement during the quarters ended March 31, 2022 and 2021.In the ordinary course of business, the Company sells residential mortgage loans to GSEs and other entities. Under the terms of these sales agreements, the Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $5.5 billion at both March 31, 2022 and December 31, 2021. At March 31, 2022 and December 31, 2021, the Company had recorded a mortgage repurchase liability for loans sold on a servicing-retained and servicing-released basis, included in accounts payable and other liabilities on the consolidated balance sheets, of $1.6 million and $1.3 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The following table summarizes the calculation of earnings per share: Quarter Ended March 31, (in thousands, except share and per share data) 2022 2021 Net income $ 19,951 $ 29,663 Weighted average shares: Basic weighted-average number of common shares outstanding 19,585,753 21,637,671 Dilutive effect of outstanding common stock equivalents 206,160 324,157 Diluted weighted-average number of common shares outstanding 19,791,913 21,961,828 Net income per share: Basic earnings per share $ 1.02 $ 1.37 Diluted earnings per share 1.01 1.35 |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT: The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company's approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Fair Value Hierarchy A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability for substantially the full term of the financial instrument. • Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company's assumptions of what market participants would use in pricing the asset or liability. The Company's policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period. Estimation of Fair Value Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange. The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company's assets and liabilities valued at fair value on a recurring basis. Asset/Liability class Valuation methodology, inputs and assumptions Classification Investment securities Trading securities Fair Value is based on quoted prices in an active market. Level 1 recurring fair value measurement. Investment securities AFS Observable market prices of identical or similar securities are used where available. Level 2 recurring fair value measurement. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 3 recurring fair value measurement. LHFS Single family loans, excluding loans transferred from held for investment Fair value is based on observable market data, including: • Quoted market prices, where available • Dealer quotes for similar loans • Forward sale commitments Level 2 recurring fair value measurement. When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs: • Benchmark yield curve • Estimated discount spread to the benchmark yield curve • Expected prepayment speeds Estimated fair value classified as Level 3. Mortgage servicing rights Single family MSRs For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement. Derivatives Futures and Options Fair value is based on closing exchange prices. Level 1 recurring fair value measurement. Forward sale commitments Interest rate swaps Fair value is based on quoted prices for identical or similar instruments, when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs including: Level 2 recurring fair value measurement. Interest rate lock commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement. The following tables presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis: At March 31, 2022 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets: Trading securities - U.S. Treasury securities $ 19,313 $ 19,313 $ — $ — Investment securities AFS Mortgage backed securities: Residential 29,187 — 26,954 2,233 Commercial 66,392 — 66,392 — Collateralized mortgage obligations: Residential 266,492 — 266,492 — Commercial 134,879 — 134,879 — Municipal bonds 515,139 — 515,139 — Corporate debt securities 26,373 — 26,299 74 U.S. Treasury securities 21,722 — 21,722 — Single family LHFS 48,994 — 48,994 — Single family LHFI 6,981 — — 6,981 Single family mortgage servicing rights 72,378 — — 72,378 Derivatives Futures 97 97 — — Forward sale commitments 5,079 — 5,079 — Options 389 389 — — Interest rate lock commitments 683 — — 683 Interest rate swaps 5,619 — 5,619 — Total assets $ 1,219,717 $ 19,799 $ 1,117,569 $ 82,349 Liabilities: Derivatives Forward sale commitments 3,528 — 3,528 — Interest rate lock commitments 605 — — 605 Interest rate swaps 5,620 — 5,620 — Total liabilities $ 9,753 $ — $ 9,148 $ 605 At December 31, 2021 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets: Investment securities AFS Mortgage backed securities: Residential $ 32,963 $ — $ 30,556 $ 2,407 Commercial 62,792 — 62,792 — Collateralized mortgage obligations: Residential 187,394 — 187,394 — Commercial 136,659 — 136,659 — Municipal bonds 539,923 — 539,923 — Corporate debt securities 19,616 — 19,541 75 U.S. Treasury securities 23,175 — 23,175 — Single family LHFS 128,041 — 128,041 — Single family LHFI 7,287 — — 7,287 Single family mortgage servicing rights 61,584 — — 61,584 Derivatives Futures 334 334 — — Forward sale commitments 723 — 723 — Interest rate lock commitments 2,487 — — 2,487 Interest rate swaps 4,381 — 4,381 — Total assets $ 1,207,359 $ 334 $ 1,133,185 $ 73,840 Liabilities: Derivatives Forward sale commitments $ 640 $ — $ 640 $ — Interest rate lock commitments 3 — — 3 Interest rate swaps 4,541 — 4,541 — Total liabilities $ 5,184 $ — $ 5,181 $ 3 There were no transfers between levels of the fair value hierarchy during the quarters ended March 31, 2022 and 2021. Level 3 Recurring Fair Value Measurements The Company's level 3 recurring fair value measurements consist of investment securities AFS, single family MSRs, single family LHFI where fair value option was elected, certain single family LHFS and interest rate lock commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the quarters ended March 31, 2022 and 2021, see Note 7, Mortgage Banking Operations of this Quarterly Report on Form 10-Q. The fair value of IRLCs considers several factors, including the fair value in the secondary market of the underlying loan resulting from the exercise of the commitment, the expected net future cash flows related to the associated servicing of the loan (referred to as the value of servicing) and the probability that the commitment will not be converted into a funded loan (referred to as a fall-out factor). The fair value of IRLCs on LHFS, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. The significance of the fall-out factor to the fair value measurement of an individual IRLC is generally highest at the time that the rate lock is initiated and declines as closing procedures are performed and the underlying loan gets closer to funding. The fall-out factor applied is based on historical experience. The value of servicing is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs and underlying portfolio characteristics. Because these inputs are not observable in market trades, the fall-out factor and value of servicing are considered to be level 3 inputs. The fair value of IRLCs decreases in value upon an increase in the fall-out factor and increases in value upon an increase in the value of servicing. Changes in the fall-out factor and value of servicing do not increase or decrease based on movements in other significant unobservable inputs. The Company recognizes unrealized gains and losses from the time that an IRLC is initiated until the gain or loss is realized at the time the loan closes, which generally occurs within 30-90 days. For IRLCs that fall out, any unrealized gain or loss is reversed, which generally occurs at the end of the commitment period. The gains and losses recognized on IRLC derivatives generally correlates to volume of single family interest rate lock commitments made during the reporting period (after adjusting for estimated fallout) while the amount of unrealized gains and losses realized at settlement generally correlates to the volume of single family closed loans during the reporting period. The Company uses the discounted cash flow model to estimate the fair value of certain loans that have been transferred from held for sale to held for investment and single family LHFS when the fair value of the loans is not derived using observable market inputs. The key assumption in the valuation model is the implied spread to benchmark interest rate curve. The implied spread is not directly observable in the market and is derived from third party pricing which is based on market information from comparable loan pools. The fair value estimate of single family loans that have been transferred from held for sale to held for investment are sensitive to changes in the benchmark interest rate which might result in a significantly higher or lower fair value measurement. The Company transferred certain loans from held for sale to held for investment. These loans were originated as held for sale loans where the Company had elected fair value option. The Company determined these loans to be level 3 recurring assets as the valuation technique included a significant unobservable input. The total amount of held for investment loans where fair value option election was made was $7.0 million and $7.3 million at March 31, 2022 and December 31, 2021, respectively. The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets: (dollars in thousands) Fair Value Valuation Significant Unobservable Low High Weighted Average March 31, 2022 Investment securities AFS $ 2,307 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% Single family LHFI 6,981 Income approach Implied spread to benchmark interest rate curve 2.49% 4.76% 3.14% Interest rate lock commitments, net 78 Income approach Fall-out factor 0.20% 29.60% 11.71% Value of servicing 0.45% 1.39% 1.06% December 31, 2021 Investment securities AFS $ 2,482 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% Single family LHFI 7,287 Income approach Implied spread to benchmark interest rate curve 2.39% 7.96% 3.56% Interest rate lock commitments, net 2,484 Income approach Fall-out factor 0.15% 21.93% 8.44% Value of servicing 0.35% 1.46% 1.15% We had no LHFS where the fair value was not derived with significant observable inputs at March 31, 2022 and December 31, 2021. The following table presents fair value changes and activity for certain Level 3 assets for the periods indicated: (in thousands) Beginning balance Additions Transfers Payoffs/Sales Change in mark to market (1) Ending balance Quarter Ended March 31, 2022 Investment securities AFS $ 2,482 $ — $ — $ (48) $ (127) $ 2,307 Single family LHFI 7,287 — — — (306) 6,981 Quarter Ended March 31, 2021 Investment securities AFS $ 2,710 $ — $ — $ (48) $ (172) $ 2,490 Single family LHFI 7,108 360 — (3,191) 47 4,324 (1) Changes in fair value for single LHFI are recorded in other noninterest income on the consolidated income statements. The following table presents fair value changes and activity for Level 3 interest rate lock commitments: Quarter Ended March 31, (in thousands) 2022 2021 Beginning balance, net $ 2,484 $ 17,392 Total realized/unrealized gains (losses) (2,177) (3,469) Settlements (229) (7,435) Ending balance, net $ 78 $ 6,488 Nonrecurring Fair Value Measurements Certain assets held by the Company are not included in the tables above, but are measured at fair value on a periodic basis. These assets include certain LHFI and OREO that are carried at the lower of cost or fair value of the underlying collateral, less the estimated costs to sell. The estimated fair values of real estate collateral are generally based on internal evaluations and appraisals of such collateral, which use the market approach and income approach methodologies. We have omitted disclosure related to quantitative inputs given the insignificance of assets measured on a nonrecurring basis. The fair value of commercial properties is generally based on third-party appraisals that consider recent sales of comparable properties, including their income-generating characteristics, adjusted (generally based on unobservable inputs) to reflect the general assumptions that a market participant would make when analyzing the property for purchase. The Company uses a fair value of collateral technique to apply adjustments to the appraisal value of certain commercial LHFI that are collateralized by real estate. The Company uses a fair value of collateral technique to apply adjustments to the stated value of certain commercial LHFI that are not collateralized by real estate and to the appraisal value of OREO. Residential properties are generally based on unadjusted third-party appraisals. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. These adjustments include management assumptions that are based on the type of collateral dependent loan and may increase or decrease an appraised value. Management adjustments vary significantly depending on the location, physical characteristics and income producing potential of each individual property. The quality and volume of market information available at the time of the appraisal can vary from period-to-period and cause significant changes to the nature and magnitude of the unobservable inputs used. Given these variations, changes in these unobservable inputs are generally not a reliable indicator for how fair value will increase or decrease from period to period. The following table presents assets classified as Level 3 that had changes in their recorded fair value for the periods indicated and what we still held at the end of the respective reporting period: (in thousands) Fair Value Total Gains (Losses) At or for the Quarter Ended March 31, 2022 LHFI (1) $ 904 $ 10 (1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral. Fair Value of Financial Instruments The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company's financial instruments other than assets and liabilities measured at fair value on a recurring basis: At March 31, 2022 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 73,862 $ 73,862 $ 73,862 $ — $ — Investment securities HTM 4,143 4,134 — 4,134 — LHFI 5,819,565 5,712,390 — — 5,712,390 LHFS – multifamily and other 10,156 10,248 — 10,248 — Mortgage servicing rights – multifamily and SBA 39,279 43,453 — — 43,453 Federal Home Loan Bank stock 19,596 19,596 — 19,596 — Other assets - GNMA EBO loans 9,940 9,940 — — 9,940 Liabilities: Certificates of deposit $ 915,481 $ 908,030 $ — $ 908,030 $ — Borrowings 273,000 273,000 273,000 Long-term debt 224,137 214,853 — 214,853 — At December 31, 2021 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 65,214 $ 65,214 $ 65,214 $ — $ — Investment securities HTM 4,169 4,305 — 4,305 — LHFI 5,488,439 5,588,719 — — 5,588,719 LHFS – multifamily and other 48,090 48,425 — 48,425 — Mortgage servicing rights – multifamily and SBA 39,415 43,199 — — 43,199 Federal Home Loan Bank stock 10,361 10,361 — 10,361 — Other assets-GNMA EBO loans 12,342 12,342 — — 12,342 Liabilities: Certificates of deposit $ 906,928 $ 906,064 $ — $ 906,064 $ — Borrowings 41,000 41,000 — 41,000 — Long-term debt 126,026 116,845 — 116,845 — Fair Value Option Single family loans held for sale accounted under the fair value option are measured initially at fair value with subsequent changes in fair value recognized in earnings. Gains and losses from such changes in fair value are recognized in net gain on mortgage loan origination and sale activities within noninterest income. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in fair value of the related servicing asset, resulting in revaluations adjustments to the recorded fair value. The use of the fair value option allows the change in the fair value of loans to more effectively offset the change in fair value of derivative instruments that are used as economic hedges of loans held for sale. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option: At March 31, 2022 At December 31, 2021 (in thousands) Fair Value Aggregate Unpaid Principal Balance Fair Value Less Aggregated Unpaid Principal Balance Fair Value Aggregate Unpaid Principal Balance Fair Value Less Aggregated Unpaid Principal Balance Single family LHFS $ 48,994 $ 49,457 $ (463) $ 128,041 $ 124,933 $ 3,108 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT:On April 28, 2022 the Board authorized a dividend of $0.35 per share, payable on May 24, 2022 to shareholders of record on May 10, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. The Company allocates resources and assesses financial performance on a consolidated basis and therefore has one reporting segment. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ significantly from those estimates. |
Reclassifications | Certain amounts in the financial statements from prior periods have been reclassified to conform to the current financial statement presentation. |
Recent Accounting Developments | Recent Accounting Developments In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR rates expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848)," which clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting applied to derivatives that are affected by the transition to alternative rates. The ASUs are effective for all entities as of March 12, 2020 through December 31, 2022. These ASUs are not expected to have a material impact on the Company’s financial position or results of operations. |
Derivatives and Hedging Activities | To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as single family mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges |
Fair Value Measurement | The term "fair value" is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company's approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Fair Value Hierarchy A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability for substantially the full term of the financial instrument. • Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company's assumptions of what market participants would use in pricing the asset or liability. The Company's policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period. Estimation of Fair Value Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange. The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company's assets and liabilities valued at fair value on a recurring basis. Asset/Liability class Valuation methodology, inputs and assumptions Classification Investment securities Trading securities Fair Value is based on quoted prices in an active market. Level 1 recurring fair value measurement. Investment securities AFS Observable market prices of identical or similar securities are used where available. Level 2 recurring fair value measurement. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 3 recurring fair value measurement. LHFS Single family loans, excluding loans transferred from held for investment Fair value is based on observable market data, including: • Quoted market prices, where available • Dealer quotes for similar loans • Forward sale commitments Level 2 recurring fair value measurement. When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs: • Benchmark yield curve • Estimated discount spread to the benchmark yield curve • Expected prepayment speeds Estimated fair value classified as Level 3. Mortgage servicing rights Single family MSRs For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement. Derivatives Futures and Options Fair value is based on closing exchange prices. Level 1 recurring fair value measurement. Forward sale commitments Interest rate swaps Fair value is based on quoted prices for identical or similar instruments, when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs including: Level 2 recurring fair value measurement. Interest rate lock commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement. |
INVESTMENT SECURITIES - (Tables
INVESTMENT SECURITIES - (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Fair Value of Available-for-Sale Securities | The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and held-to-maturity ("HTM"): At March 31, 2022 (in thousands) Amortized Gross Gross Fair AFS Mortgage backed securities ("MBS"): Residential $ 30,689 $ 6 $ (1,508) $ 29,187 Commercial 70,312 38 (3,958) 66,392 Collateralized mortgage obligations ("CMOs"): Residential 276,246 186 (9,940) 266,492 Commercial 138,168 135 (3,424) 134,879 Municipal bonds 535,353 2,802 (23,016) 515,139 Corporate debt securities 26,850 97 (574) 26,373 U.S. Treasury securities 23,263 — (1,541) 21,722 Total $ 1,100,881 $ 3,264 $ (43,961) $ 1,060,184 HTM Municipal bonds $ 4,143 $ 8 $ (17) $ 4,134 At December 31, 2021 (in thousands) Amortized Gross Gross Fair AFS MBS: Residential $ 32,905 $ 396 $ (338) $ 32,963 Commercial 62,094 933 (235) 62,792 CMOs: Residential 186,703 2,012 (1,321) 187,394 Commercial 135,102 1,890 (333) 136,659 Municipal bonds 516,693 24,154 (924) 539,923 Corporate debt securities 18,918 699 (1) 19,616 U.S. Treasury securities 23,348 — (173) 23,175 Total $ 975,763 $ 30,084 $ (3,325) $ 1,002,522 HTM Municipal bonds $ 4,169 $ 136 $ — $ 4,305 |
Amortized Cost and Fair Value of Held-to-Maturity Securities | The following table sets forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and held-to-maturity ("HTM"): At March 31, 2022 (in thousands) Amortized Gross Gross Fair AFS Mortgage backed securities ("MBS"): Residential $ 30,689 $ 6 $ (1,508) $ 29,187 Commercial 70,312 38 (3,958) 66,392 Collateralized mortgage obligations ("CMOs"): Residential 276,246 186 (9,940) 266,492 Commercial 138,168 135 (3,424) 134,879 Municipal bonds 535,353 2,802 (23,016) 515,139 Corporate debt securities 26,850 97 (574) 26,373 U.S. Treasury securities 23,263 — (1,541) 21,722 Total $ 1,100,881 $ 3,264 $ (43,961) $ 1,060,184 HTM Municipal bonds $ 4,143 $ 8 $ (17) $ 4,134 At December 31, 2021 (in thousands) Amortized Gross Gross Fair AFS MBS: Residential $ 32,905 $ 396 $ (338) $ 32,963 Commercial 62,094 933 (235) 62,792 CMOs: Residential 186,703 2,012 (1,321) 187,394 Commercial 135,102 1,890 (333) 136,659 Municipal bonds 516,693 24,154 (924) 539,923 Corporate debt securities 18,918 699 (1) 19,616 U.S. Treasury securities 23,348 — (173) 23,175 Total $ 975,763 $ 30,084 $ (3,325) $ 1,002,522 HTM Municipal bonds $ 4,169 $ 136 $ — $ 4,305 |
Investment Securities in an Unrealized Loss Position | Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position: At March 31, 2022 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AFS MBS: Residential $ (1,064) $ 25,716 $ (444) $ 2,233 $ (1,508) $ 27,949 Commercial (3,958) 58,243 — — (3,958) 58,243 CMOs: Residential (7,475) 177,481 (2,465) 21,315 (9,940) 198,796 Commercial (2,802) 103,919 (622) 7,608 (3,424) 111,527 Municipal bonds (21,126) 375,801 (1,890) 12,141 (23,016) 387,942 Corporate debt securities (574) 16,758 — — (574) 16,758 U.S. Treasury securities (1,541) 21,723 — — (1,541) 21,723 Total $ (38,540) $ 779,641 $ (5,421) $ 43,297 $ (43,961) $ 822,938 HTM Municipal bonds $ (17) $ 2,474 $ — $ — $ (17) $ 2,474 At December 31, 2021 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair MBS: Residential $ (38) $ 5,324 $ (300) $ 2,406 $ (338) $ 7,730 Commercial (235) 18,127 — — (235) 18,127 CMOs: Residential (1,007) 53,068 (314) 7,116 (1,321) 60,184 Commercial (135) 14,806 (198) 5,132 (333) 19,938 Municipal bonds (914) 64,237 (10) 1,058 (924) 65,295 Corporate debt securities (1) 3,164 — — (1) 3,164 U.S. Treasury securities (173) 23,175 — — (173) 23,175 Total $ (2,503) $ 181,901 $ (822) $ 15,712 $ (3,325) $ 197,613 |
Computation of Weighted Average Yield using Coupon on the Fair Value | The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield: At March 31, 2022 Within one year After one year After five years After Total (dollars in thousands) Fair Weighted Fair Weighted Fair Weighted Fair Weighted Fair Weighted AFS Municipal bonds $ 4,159 3.57 % $ 13,675 3.23 % $ 66,619 3.40 % $ 430,686 3.03 % $ 515,139 3.09 % Corporate debt securities — — % 5,573 3.54 % 20,800 4.39 % — — % 26,373 4.22 % U.S. Treasury securities — — % — — % 21,722 1.20 % — — % 21,722 1.20 % Total $ 4,159 3.57 % $ 19,248 3.32 % $ 109,141 3.13 % $ 430,686 3.03 % $ 563,234 3.07 % HTM Municipal bonds $ 1,659 2.91 % $ 2,475 2.07 % $ — — % $ — — % $ 4,134 2.41 % At December 31, 2021 Within one year After one year After five years After Total (dollars in thousands) Fair Weighted Fair Weighted Fair Weighted Fair Weighted Fair Weighted AFS Municipal bonds $ 4,933 3.79 % $ 14,366 3.26 % $ 68,025 3.60 % $ 452,599 3.23 % $ 539,923 3.28 % Corporate debt securities — — % 6,563 3.60 % 13,053 5.03 % — — % 19,616 4.55 % U.S. Treasury securities — — % — — % 23,175 1.27 % — — % 23,175 1.27 % Total $ 4,933 3.79 % $ 20,929 3.37 % $ 104,253 3.23 % $ 452,599 3.23 % $ 582,714 3.24 % HTM Municipal bonds $ 1,684 2.86 % $ 2,621 2.12 % $ — — % $ — — % $ 4,305 2.42 % |
Schedule of Sales of Investment Securities | Sales of AFS investment securities were as follows: Quarter Ended March 31, (in thousands) 2022 Proceeds $ 962 Gross gains 71 Gross losses — |
Carrying Value of Securities Pledged as Collateral | The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law: (in thousands) At March 31, 2022 At December 31, 2021 Washington, Oregon and California State to secure public deposits $ 201,444 $ 206,153 Other securities pledged 4,972 5,258 Total securities pledged as collateral $ 206,416 $ 211,411 |
LOANS AND CREDIT QUALITY - (Tab
LOANS AND CREDIT QUALITY - (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans Held for Investment | LHFI consists of the following: (in thousands) At March 31, 2022 At December 31, 2021 CRE Non-owner occupied CRE $ 699,277 $ 705,359 Multifamily 2,729,775 2,415,359 Construction/land development 528,134 496,144 Total 3,957,186 3,616,862 Commercial and industrial loans Owner occupied CRE 464,356 457,706 Commercial business 387,938 401,872 Total 852,294 859,578 Consumer loans Single family (1) 759,286 763,331 Home equity and other 295,724 303,078 Total 1,055,010 1,066,409 Total LHFI 5,864,490 5,542,849 Allowance for credit losses ("ACL") (37,944) (47,123) Total LHFI less ACL $ 5,826,546 $ 5,495,726 |
Activity in Allowance for Credit Losses | Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows: Quarter Ended March 31, (in thousands) 2022 2021 Beginning balance $ 47,123 $ 64,294 Provision for credit losses (9,223) (371) Net (charge-offs) recoveries 44 124 Ending balance $ 37,944 $ 64,047 Allowance for unfunded commitments: Beginning balance $ 2,404 $ 1,588 Provision for credit losses 223 371 Ending balance $ 2,627 $ 1,959 Provision for credit losses: Allowance for credit losses - loans $ (9,223) $ (371) Allowance for unfunded commitments 223 371 Total $ (9,000) $ — Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows: Quarter Ended March 31, 2022 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending balance CRE Non-owner occupied CRE $ 7,509 $ — $ — $ (5,215) $ 2,294 Multifamily 5,854 — — 2,573 8,427 Construction/land development Multifamily construction 507 — — (51) 456 CRE construction 150 — — 34 184 Single family construction 6,411 — — 1,324 7,735 Single family construction to permanent 1,055 — — (65) 990 Total 21,486 — — (1,400) 20,086 Commercial and industrial loans Owner occupied CRE 5,006 — — (1,470) 3,536 Commercial business 12,273 (11) 24 (5,376) 6,910 Total 17,279 (11) 24 (6,846) 10,446 Consumer loans Single family 4,394 — 4 (636) 3,762 Home equity and other 3,964 (33) 60 (341) 3,650 Total 8,358 (33) 64 (977) 7,412 Total ACL $ 47,123 $ (44) $ 88 $ (9,223) $ 37,944 Quarter Ended March 31, 2021 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending balance CRE Non-owner occupied CRE $ 8,845 $ — $ — $ 373 $ 9,218 Multifamily 6,072 — — 897 6,969 Construction/land development Multifamily construction 4,903 — — (967) 3,936 CRE construction 1,670 — — 238 1,908 Single family construction 5,130 — — (123) 5,007 Single family construction to permanent 1,315 — — (191) 1,124 Total 27,935 — — 227 28,162 Commercial and industrial loans Owner occupied CRE 4,994 — — 272 5,266 Commercial business 17,043 — 74 (12) 17,105 Total 22,037 — 74 260 22,371 Consumer loans Single family 6,906 (70) 120 (221) 6,735 Home equity and other 7,416 (56) 56 (637) 6,779 Total 14,322 (126) 176 (858) 13,514 Total ACL $ 64,294 $ (126) $ 250 $ (371) $ 64,047 |
Designated Loan Grades by Loan Portfolio Segment and Loan Class | The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status. At March 31, 2022 (in thousands) 2022 2021 2020 2019 2018 2017 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Non-owner occupied CRE Pass $ 23,614 $ 68,572 $ 50,276 $ 158,484 $ 121,836 $ 274,775 $ 853 $ 867 $ 699,277 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 23,614 68,572 50,276 158,484 121,836 274,775 853 867 699,277 Multifamily Pass 364,731 1,311,572 551,187 233,790 60,103 179,862 — — 2,701,245 Special Mention — — 8,695 19,835 — — — — 28,530 Substandard — — — — — — — — — Total 364,731 1,311,572 559,882 253,625 60,103 179,862 — — 2,729,775 Multifamily construction Pass — 12,163 24,664 — — — — — 36,827 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total — 12,163 24,664 — — — — — 36,827 CRE construction Pass — 11,668 3,959 — 1,924 548 — — 18,099 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total — 11,668 3,959 — 1,924 548 — — 18,099 Single family construction Pass 31,784 142,275 24,226 12,434 — 76 108,005 — 318,800 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 31,784 142,275 24,226 12,434 — 76 108,005 — 318,800 Single family construction to permanent Current 6,613 106,419 29,026 10,575 1,775 — — — 154,408 Past due: 30-59 days — — — — — — — — — 60-89 days — — — — — — — — — 90+ days — — — — — — — — — Total 6,613 106,419 29,026 10,575 1,775 — — — 154,408 Owner occupied CRE Pass 20,055 70,792 47,176 57,012 46,661 164,101 248 1,689 407,734 Special Mention — — — 18,499 2,180 23,202 — — 43,881 Substandard — — — — 1,111 11,572 — 58 12,741 Total 20,055 70,792 47,176 75,511 49,952 198,875 248 1,747 464,356 Commercial business Pass 32,359 58,371 48,943 36,976 23,289 27,808 113,186 2,131 343,063 Special Mention — 213 29 7,047 838 5,264 7,543 212 21,146 Substandard — 8,214 3,253 2,414 3,392 1,827 4,616 13 23,729 Total 32,359 66,798 52,225 46,437 27,519 34,899 125,345 2,356 387,938 Total commercial portfolio $ 479,156 $ 1,790,259 $ 791,434 $ 557,066 $ 263,109 $ 689,035 $ 234,451 $ 4,970 $ 4,809,480 The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status: At March 31, 2022 (in thousands) 2022 2021 2020 2019 2018 2017 and prior Revolving Revolving-term Total CONSUMER PORTFOLIO Single family Current $ 44,563 $ 178,656 $ 152,443 $ 49,114 $ 56,757 $ 275,042 $ — $ — $ 756,575 Past due: 30-59 days — — — — — 872 — — 872 60-89 days — — — — — 270 — — 270 90+ days — — — 994 452 123 — — 1,569 Total (1) 44,563 178,656 152,443 50,108 57,209 276,307 — — 759,286 Home equity and other Current 797 1,585 334 294 197 2,407 284,426 4,755 294,795 Past due: 30-59 days — 3 — — — — 57 — 60 60-89 days — 8 — — 15 — 7 — 30 90+ days — — — — — 98 679 62 839 Total 797 1,596 334 294 212 2,505 285,169 4,817 295,724 Total consumer portfolio $ 45,360 $ 180,252 $ 152,777 $ 50,402 $ 57,421 $ 278,812 $ 285,169 $ 4,817 $ 1,055,010 Total LHFI $ 524,516 $ 1,970,511 $ 944,211 $ 607,468 $ 320,530 $ 967,847 $ 519,620 $ 9,787 $ 5,864,490 (1) Includes $7.0 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements. The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status: At December 31, 2021 (in thousands) 2021 2020 2019 2018 2017 2016 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Non-owner occupied CRE Pass $ 68,647 $ 50,571 $ 169,711 $ 130,877 $ 100,674 $ 183,024 $ 963 $ 892 $ 705,359 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 68,647 50,571 169,711 130,877 100,674 183,024 963 892 705,359 Multifamily Pass 1,315,204 561,666 286,826 60,372 26,065 165,225 1 — 2,415,359 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 1,315,204 561,666 286,826 60,372 26,065 165,225 1 — 2,415,359 Multifamily construction Pass 7,825 22,863 7,173 — — — — — 37,861 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 7,825 22,863 7,173 — — — — — 37,861 CRE construction Pass 7,694 3,960 — 1,962 — 556 — — 14,172 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 7,694 3,960 — 1,962 — 556 — — 14,172 Single family construction Pass 146,595 35,640 14,509 — — 77 99,206 — 296,027 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 146,595 35,640 14,509 — — 77 99,206 — 296,027 Single family construction to permanent Current 90,311 42,636 13,362 1,775 — — — — 148,084 Past due: 30-59 days — — — — — — — — — 60-89 days — — — — — — — — — 90+ days — — — — — — — — — Total 90,311 42,636 13,362 1,775 — — — — 148,084 Owner occupied CRE Pass 70,902 47,536 57,423 47,716 67,042 106,659 798 2,839 400,915 Special Mention — — — 2,196 6,019 145 — 60 8,420 Substandard — — 18,665 1,111 10,151 18,444 — — 48,371 Total 70,902 47,536 76,088 51,023 83,212 125,248 798 2,899 457,706 Commercial business Pass 88,139 51,453 44,882 24,711 11,859 21,258 112,759 2,104 357,165 Special Mention — — 7,396 — 4,396 — 5,613 134 17,539 Substandard 9,716 3,399 1,667 5,928 1,096 1,328 3,932 102 27,168 Total 97,855 54,852 53,945 30,639 17,351 22,586 122,304 2,340 401,872 Total commercial portfolio $ 1,805,033 $ 819,724 $ 621,614 $ 276,648 $ 227,302 $ 496,716 $ 223,272 $ 6,131 $ 4,476,440 The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status: At December 31, 2021 (in thousands) 2021 2020 2019 2018 2017 2016 and prior Revolving Revolving-term Total CONSUMER PORTFOLIO Single family Current $ 176,110 $ 156,360 $ 62,369 $ 66,063 $ 95,988 $ 204,229 $ — $ — $ 761,119 Past due: 30-59 days — — 291 — — — — — 291 60-89 days — — — — 314 471 — — 785 90+ days — — 561 452 — 123 — — 1,136 Total (1) 176,110 156,360 63,221 66,515 96,302 204,823 — — 763,331 Home equity and other Current 2,005 474 393 532 516 2,609 290,512 5,273 302,314 Past due: 30-59 days — 3 — — — 94 40 — 137 60-89 days — — — — — — 12 62 74 90+ days 3 — — — — 6 544 — 553 Total 2,008 477 393 532 516 2,709 291,108 5,335 303,078 Total consumer portfolio $ 178,118 $ 156,837 $ 63,614 $ 67,047 $ 96,818 $ 207,532 $ 291,108 $ 5,335 $ 1,066,409 Total LHFI $ 1,983,151 $ 976,561 $ 685,228 $ 343,695 $ 324,120 $ 704,248 $ 514,380 $ 11,466 $ 5,542,849 (1) Includes $7.3 million of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in the consolidated income statements. |
Schedule of Collateral Dependent Loans | The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type: At March 31, 2022 (in thousands) Land 1-4 Family Non-residential real estate Other non-real estate Total Commercial and industrial loans Owner occupied CRE $ 1,111 $ — $ 2,428 $ — $ 3,539 Commercial business 380 16 562 286 1,244 Total 1,491 16 2,990 286 4,783 Consumer loans Single family — 2,049 — — 2,049 Home equity loans and other — 345 — — 345 Total — 2,394 — — 2,394 Total collateral-dependent loans $ 1,491 $ 2,410 $ 2,990 $ 286 $ 7,177 |
Schedule of Loans on Nonaccrual with no Related Allowance for Credit Loss | At December 31, 2021 (in thousands) Land 1-4 Family Non-residential real estate Other non-real estate Total Commercial and industrial loans Owner occupied CRE $ 1,111 $ — $ 2,456 $ — $ 3,567 Commercial business 362 27 562 286 1,237 Total 1,473 27 3,018 286 4,804 Consumer loans Single family — 1,598 — — 1,598 Home equity loans and other — 19 — — 19 Total — 1,617 — — 1,617 Total collateral-dependent loans $ 1,473 $ 1,644 $ 3,018 $ 286 $ 6,421 Nonaccrual and Past Due Loans The following table presents nonaccrual status for loans: At March 31, 2022 At December 31, 2021 (in thousands) Nonaccrual with no related ACL Total Nonaccrual Nonaccrual with no related ACL Total Nonaccrual Commercial and industrial loans Owner occupied CRE $ 3,539 $ 3,539 $ 3,568 $ 3,568 Commercial business 1,244 3,996 1,210 5,023 Total 4,783 7,535 4,778 8,591 Consumer loans Single family 2,325 2,918 1,324 2,802 Home equity and other 52 1,393 23 808 Total 2,377 4,311 1,347 3,610 Total nonaccrual loans $ 7,160 $ 11,846 $ 6,125 $ 12,201 |
Schedule of Loans Past Due | The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class: At March 31, 2022 Past Due and Still Accruing (in thousands) 30-59 days 60-89 days 90 days or Nonaccrual Total past due and nonaccrual (3) Current Total CRE Non-owner occupied CRE $ — $ — $ — $ — $ — $ 699,277 $ 699,277 Multifamily — — — — — 2,729,775 2,729,775 Construction/land development Multifamily construction — — — — — 36,827 36,827 CRE construction — — — — — 18,099 18,099 Single family construction — — — — — 318,800 318,800 Single family construction to permanent — — — — — 154,408 154,408 Total — — — — — 3,957,186 3,957,186 Commercial and industrial loans Owner occupied CRE — — — 3,539 3,539 460,817 464,356 Commercial business — — — 3,996 3,996 383,942 387,938 Total — — — 7,535 7,535 844,759 852,294 Consumer loans Single family 3,753 1,821 6,903 (2) 2,918 15,395 743,891 759,286 (1) Home equity and other 61 31 — 1,393 1,485 294,239 295,724 Total 3,814 1,852 6,903 4,311 16,880 1,038,130 1,055,010 Total loans $ 3,814 $ 1,852 $ 6,903 $ 11,846 $ 24,415 $ 5,840,075 $ 5,864,490 % 0.07 % 0.03 % 0.12 % 0.20 % 0.42 % 99.58 % 100.00 % At December 31, 2021 Past Due and Still Accruing (in thousands) 30-59 days 60-89 days 90 days or Nonaccrual Total past due and nonaccrual (3) Current Total CRE Non-owner occupied CRE $ — $ — $ — $ — $ — $ 705,359 $ 705,359 Multifamily — — — — — 2,415,359 2,415,359 Construction/land development Multifamily construction — — — — — 37,861 37,861 CRE construction — — — — — 14,172 14,172 Single family construction — — — — — 296,027 296,027 Single family construction to permanent — — — — — 148,084 148,084 Total — — — — — 3,616,862 3,616,862 Commercial and industrial loans Owner occupied CRE — — — 3,568 3,568 454,138 457,706 Commercial business 198 — — 5,023 5,221 396,651 401,872 Total 198 — — 8,591 8,789 850,789 859,578 Consumer loans Single family 892 820 6,717 (2) 2,802 11,231 752,100 763,331 (1) Home equity and other 118 74 — 808 1,000 302,078 303,078 Total 1,010 894 6,717 3,610 12,231 1,054,178 1,066,409 Total loans $ 1,208 $ 894 $ 6,717 $ 12,201 $ 21,020 $ 5,521,829 $ 5,542,849 % 0.02 % 0.02 % 0.12 % 0.22 % 0.38 % 99.62 % 100.00 % (1) Includes $7.0 million and $7.3 million of loans at March 31, 2022 and December 31, 2021, respectively, where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes in fair value recognized in our consolidated income statements. (2) FHA-insured and VA-guaranteed single family loans that are 90 days or more past due are maintained on accrual status if they are determined to have little to no risk of loss. |
Schedule of Loan Modifications | The following tables provide information related to loans modified during the quarter ended March 31, 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted: (in thousands) Significant Payment Delay Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 153 0.02 % (in thousands) Term Extension Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 37 — % (in thousands) Interest Rate Reduction and Term Extension Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 1,110 0.15 % (in thousands) Significant Payment Delay and Term Extension Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 6,397 0.84 % Home equity and other 52 0.02 % (in thousands) Interest Rate Reduction, Significant Payment Delay and Term Extension Loan Type Amortized Cost Basis at March 31, 2022 % of Total Class of Financing Receivable Single family $ 5,762 0.76 % |
Schedule of Financial Effects of Loan Modifications | The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: Loan Type Financial Effect of: Interest Rate Reduction Single family Reduced weighted-average contractual interest rate from 4.28% to 3.25%. Significant Payment Delay Single family Provided payment deferrals to borrowers. A weighted average 0.3% of loan balances were capitalized and added to the remaining term of the loan. Home equity and other Provided payment deferrals to borrowers. A weighted average 6.3% of loan balances were capitalized and added to the remaining term of the loan. Term Extension Single family Added a weighted average 3.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Home equity and other Added a weighted average 16.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers. |
DEPOSITS - (Tables)
DEPOSITS - (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
Deposit Balances, Including Stated Rates | Deposit balances, including their weighted average rates, were as follows: At March 31, 2022 At December 31, 2021 (dollars in thousands) Amount Weighted Average Rate Amount Weighted Average Rate Noninterest-bearing demand deposits $ 1,654,229 — % $ 1,617,069 — % Interest-bearing demand deposits 591,148 0.10 % 513,810 0.10 % Savings 309,462 0.06 % 302,389 0.06 % Money market 2,800,215 0.18 % 2,806,313 0.15 % Certificates of deposit 915,481 0.45 % 906,928 0.51 % Total $ 6,270,535 0.16 % $ 6,146,509 0.15 % |
Certificates of Deposit Outstanding | Certificates of deposit outstanding mature as follows: (in thousands) March 31, 2022 Within one year $ 761,588 One to two years 133,251 Two to three years 16,491 Three to four years 2,756 Four to five years 1,395 Total $ 915,481 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The Subordinated Debt Securities outstanding as of March 31, 2022 and December 31, 2021 are as follows: HomeStreet Statutory Trust (dollars in thousands) I II III IV Date issued June 2005 September 2005 February 2006 March 2007 Amount $5,155 $20,619 $20,619 $15,464 Interest rate 3 MO LIBOR + 1.70% 3 MO LIBOR + 1.50% 3 MO LIBOR + 1.37% 3 MO LIBOR + 1.68% Maturity date June 2035 December 2035 March 2036 June 2037 Call option (1) Quarterly Quarterly Quarterly Quarterly (1) Call options are exercisable at par and are callable, without penalty on a quarterly basis, starting five years after issuance. |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES - (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amount and Fair Value for Derivatives | The notional amounts and fair values for derivatives, which are included in other assets or accounts payable and other liabilities on the consolidated balance sheet, consist of the following: At March 31, 2022 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 670,018 $ 5,079 $ (3,528) Interest rate lock commitments 100,992 683 (605) Interest rate swaps 276,561 5,619 (5,620) Futures 93,200 97 — Options 30,000 389 — Total derivatives before netting $ 1,170,771 11,867 (9,753) Netting adjustment/Cash collateral (1) (9,096) 3,072 Carrying value on consolidated balance sheet $ 2,771 $ (6,681) At December 31, 2021 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 793,208 $ 723 $ (640) Interest rate lock commitments 115,025 2,487 (3) Interest rate swaps 287,352 4,381 (4,541) Futures 139,900 334 — Total derivatives before netting $ 1,335,485 7,925 (5,184) Netting adjustment/Cash collateral (1) 1,355 3,921 Carrying value on consolidated balance sheet $ 9,280 $ (1,263) |
Fair Value, Concentration of Risk | The following table presents gross fair value and net carrying value information about derivative instruments: (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value At March 31, 2022 Derivative assets $ 11,867 $ (9,096) $ 2,771 Derivative liabilities (9,753) 3,072 (6,681) At December 31, 2021 Derivative assets $ 7,925 $ 1,355 $ 9,280 Derivative liabilities (5,184) 3,921 (1,263) |
Net Gains (Losses) Recognized on Economic Hedge Derivatives | The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated: Quarter Ended March 31, (in thousands) 2022 2021 Recognized in noninterest income: Net gain (loss) on loan origination and sale activities (1) $ 4,613 $ 3,858 Loan servicing income (loss) (2) (9,439) (12,591) Other (3) 159 299 (1) Comprised of IRLCs and forward contracts used as an economic hedge of loans held for sale. (2) Comprised of interest rate swaps, interest rate swaptions, futures, US Treasury notes and US Treasury options and forward contracts used as economic hedges of single family MSRs. (3) Impact of interest rate swap agreements executed with commercial banking customers. |
MORTGAGE BANKING OPERATIONS - (
MORTGAGE BANKING OPERATIONS - (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Mortgage Banking [Abstract] | |
Mortgage Loans on Real Estate, by Loan | LHFS consisted of the following: (in thousands) At March 31, 2022 At December 31, 2021 Single family $ 48,994 $ 128,041 CRE, multifamily and SBA 10,156 48,090 Total $ 59,150 $ 176,131 Loans sold consisted of the following for the periods indicated: Quarter Ended March 31, (in thousands) 2022 2021 Single family $ 323,070 $ 573,040 CRE, multifamily and SBA 49,137 257,717 Total $ 372,207 $ 830,757 |
Net Gain on Loan Origination and Sale Activity | Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: Quarter Ended March 31, (in thousands) 2022 2021 Single family $ 6,169 $ 26,187 CRE, multifamily and SBA 2,105 7,272 Total $ 8,274 $ 33,459 |
Company's Portfolio of Loans Serviced for Others | The Company's portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. The unpaid principal balance of loans serviced for others is as follows: (in thousands) At March 31, 2022 At December 31, 2021 Single family $ 5,545,145 $ 5,539,180 CRE, multifamily and SBA 2,035,801 2,031,087 Total $ 7,580,946 $ 7,570,267 |
Mortgage Repurchase Losses | The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses: Quarter Ended March 31, (in thousands) 2022 2021 Balance, beginning of period $ 1,312 $ 2,122 Additions, net of adjustments (1) 358 (20) Realized (losses) recoveries, net (2) (32) (161) Balance, end of period $ 1,638 $ 1,941 (1) Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans. (2) Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related expenses. |
Revenue from Mortgage Servicing, Including the Effects of Derivative Risk Management Instruments | Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following: Quarter Ended March 31, (in thousands) 2022 2021 Servicing income, net: Servicing fees and other $ 8,321 $ 8,913 Amortization of single family MSRs (1) (3,425) (5,693) Amortization of multifamily and SBA MSRs (1,712) (1,344) Total 3,184 1,876 Risk management, single family MSRs: Changes in fair value of MSRs due to assumptions (2) 10,303 11,463 Net gain (loss) from economic hedging (10,183) (12,591) Total 120 (1,128) Loan servicing income (loss) $ 3,304 $ 748 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. |
Changes in Single Family MSRs Measured at Fair Value | The changes in single family MSRs measured at fair value are as follows: Quarter Ended March 31, (in thousands) 2022 2021 Beginning balance $ 61,584 $ 49,966 Additions and amortization: Originations 3,916 6,616 Amortization (1) (3,425) (5,693) Net additions and amortization 491 923 Changes in fair value assumptions (2) 10,303 11,463 Ending balance $ 72,378 $ 62,352 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. |
Key Economic Assumptions Used in Measuring Initial FV of Capitalized Single Family MSRs | Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows: Quarter Ended March 31, (rates per annum) (1) 2022 2021 Constant prepayment rate ("CPR") (2) 9.38 % 8.37 % Discount rate 8.34 % 8.37 % (1) Based on a weighted average. (2) Represents an expected lifetime average CPR used in the model. |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below: At March 31, 2022 At December 31, 2021 Range of Inputs Average (1) Range of Inputs Average (1) CPRs 7.38% - 16.66% 9.42 % 7.90% - 17.35% 10.35 % Discount Rates 8.10% - 15.18% 9.05 % 6.94% - 13.96% 7.97 % (1) Weighted averages of all the inputs within the range. To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below: (dollars in thousands) At March 31, 2022 Fair value of single family MSR $ 72,378 Expected weighted-average life (in years) 7.14 CPR Impact on fair value of 25 basis points adverse change in interest rates $ (2,208) Impact on fair value of 50 basis points adverse change in interest rates $ (4,909) Discount rate Impact on fair value of 100 basis points increase $ (3,217) Impact on fair value of 200 basis points increase $ (6,187) |
Changes in Multifamily MSRs Measured at the Lower of Amortized Cost or Fair Value | The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows: Quarter Ended March 31, (in thousands) 2022 2021 Beginning balance $ 39,415 $ 35,774 Originations 1,576 5,196 Amortization (1,712) (1,344) Ending balance $ 39,279 $ 39,626 |
EARNINGS PER SHARE - (Tables)
EARNINGS PER SHARE - (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the calculation of earnings per share: Quarter Ended March 31, (in thousands, except share and per share data) 2022 2021 Net income $ 19,951 $ 29,663 Weighted average shares: Basic weighted-average number of common shares outstanding 19,585,753 21,637,671 Dilutive effect of outstanding common stock equivalents 206,160 324,157 Diluted weighted-average number of common shares outstanding 19,791,913 21,961,828 Net income per share: Basic earnings per share $ 1.02 $ 1.37 Diluted earnings per share 1.01 1.35 |
FAIR VALUE MEASUREMENT - (Table
FAIR VALUE MEASUREMENT - (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement Methodologies | The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company's assets and liabilities valued at fair value on a recurring basis. Asset/Liability class Valuation methodology, inputs and assumptions Classification Investment securities Trading securities Fair Value is based on quoted prices in an active market. Level 1 recurring fair value measurement. Investment securities AFS Observable market prices of identical or similar securities are used where available. Level 2 recurring fair value measurement. If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: • Expected prepayment speeds • Estimated credit losses • Market liquidity adjustments Level 3 recurring fair value measurement. LHFS Single family loans, excluding loans transferred from held for investment Fair value is based on observable market data, including: • Quoted market prices, where available • Dealer quotes for similar loans • Forward sale commitments Level 2 recurring fair value measurement. When not derived from observable market inputs, fair value is based on discounted cash flows, which considers the following inputs: • Benchmark yield curve • Estimated discount spread to the benchmark yield curve • Expected prepayment speeds Estimated fair value classified as Level 3. Mortgage servicing rights Single family MSRs For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 7 , Mortgage Banking Operations . Level 3 recurring fair value measurement. Derivatives Futures and Options Fair value is based on closing exchange prices. Level 1 recurring fair value measurement. Forward sale commitments Interest rate swaps Fair value is based on quoted prices for identical or similar instruments, when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs including: Level 2 recurring fair value measurement. Interest rate lock commitments The fair value considers several factors including: • Fair value of the underlying loan based on quoted prices in the secondary market, when available. • Value of servicing • Fall-out factor Level 3 recurring fair value measurement. |
Schedule of Fair Value Hierarchy Measurement | The following tables presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis: At March 31, 2022 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets: Trading securities - U.S. Treasury securities $ 19,313 $ 19,313 $ — $ — Investment securities AFS Mortgage backed securities: Residential 29,187 — 26,954 2,233 Commercial 66,392 — 66,392 — Collateralized mortgage obligations: Residential 266,492 — 266,492 — Commercial 134,879 — 134,879 — Municipal bonds 515,139 — 515,139 — Corporate debt securities 26,373 — 26,299 74 U.S. Treasury securities 21,722 — 21,722 — Single family LHFS 48,994 — 48,994 — Single family LHFI 6,981 — — 6,981 Single family mortgage servicing rights 72,378 — — 72,378 Derivatives Futures 97 97 — — Forward sale commitments 5,079 — 5,079 — Options 389 389 — — Interest rate lock commitments 683 — — 683 Interest rate swaps 5,619 — 5,619 — Total assets $ 1,219,717 $ 19,799 $ 1,117,569 $ 82,349 Liabilities: Derivatives Forward sale commitments 3,528 — 3,528 — Interest rate lock commitments 605 — — 605 Interest rate swaps 5,620 — 5,620 — Total liabilities $ 9,753 $ — $ 9,148 $ 605 At December 31, 2021 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets: Investment securities AFS Mortgage backed securities: Residential $ 32,963 $ — $ 30,556 $ 2,407 Commercial 62,792 — 62,792 — Collateralized mortgage obligations: Residential 187,394 — 187,394 — Commercial 136,659 — 136,659 — Municipal bonds 539,923 — 539,923 — Corporate debt securities 19,616 — 19,541 75 U.S. Treasury securities 23,175 — 23,175 — Single family LHFS 128,041 — 128,041 — Single family LHFI 7,287 — — 7,287 Single family mortgage servicing rights 61,584 — — 61,584 Derivatives Futures 334 334 — — Forward sale commitments 723 — 723 — Interest rate lock commitments 2,487 — — 2,487 Interest rate swaps 4,381 — 4,381 — Total assets $ 1,207,359 $ 334 $ 1,133,185 $ 73,840 Liabilities: Derivatives Forward sale commitments $ 640 $ — $ 640 $ — Interest rate lock commitments 3 — — 3 Interest rate swaps 4,541 — 4,541 — Total liabilities $ 5,184 $ — $ 5,181 $ 3 |
Schedule of Inputs Used to Measure Fair Value | The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets: (dollars in thousands) Fair Value Valuation Significant Unobservable Low High Weighted Average March 31, 2022 Investment securities AFS $ 2,307 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% Single family LHFI 6,981 Income approach Implied spread to benchmark interest rate curve 2.49% 4.76% 3.14% Interest rate lock commitments, net 78 Income approach Fall-out factor 0.20% 29.60% 11.71% Value of servicing 0.45% 1.39% 1.06% December 31, 2021 Investment securities AFS $ 2,482 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% Single family LHFI 7,287 Income approach Implied spread to benchmark interest rate curve 2.39% 7.96% 3.56% Interest rate lock commitments, net 2,484 Income approach Fall-out factor 0.15% 21.93% 8.44% Value of servicing 0.35% 1.46% 1.15% |
Schedule of Fair Value Changes and Activity for Level 3 | The following table presents fair value changes and activity for certain Level 3 assets for the periods indicated: (in thousands) Beginning balance Additions Transfers Payoffs/Sales Change in mark to market (1) Ending balance Quarter Ended March 31, 2022 Investment securities AFS $ 2,482 $ — $ — $ (48) $ (127) $ 2,307 Single family LHFI 7,287 — — — (306) 6,981 Quarter Ended March 31, 2021 Investment securities AFS $ 2,710 $ — $ — $ (48) $ (172) $ 2,490 Single family LHFI 7,108 360 — (3,191) 47 4,324 (1) Changes in fair value for single LHFI are recorded in other noninterest income on the consolidated income statements. The following table presents fair value changes and activity for Level 3 interest rate lock commitments: Quarter Ended March 31, (in thousands) 2022 2021 Beginning balance, net $ 2,484 $ 17,392 Total realized/unrealized gains (losses) (2,177) (3,469) Settlements (229) (7,435) Ending balance, net $ 78 $ 6,488 |
Schedule of Assets that had Changes in their Recorded Fair Value | The following table presents assets classified as Level 3 that had changes in their recorded fair value for the periods indicated and what we still held at the end of the respective reporting period: (in thousands) Fair Value Total Gains (Losses) At or for the Quarter Ended March 31, 2022 LHFI (1) $ 904 $ 10 (1) Represents the carrying value of loans for which adjustments are based on the fair value of the collateral. |
Schedule of the Fair Value Hierarchy | The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company's financial instruments other than assets and liabilities measured at fair value on a recurring basis: At March 31, 2022 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 73,862 $ 73,862 $ 73,862 $ — $ — Investment securities HTM 4,143 4,134 — 4,134 — LHFI 5,819,565 5,712,390 — — 5,712,390 LHFS – multifamily and other 10,156 10,248 — 10,248 — Mortgage servicing rights – multifamily and SBA 39,279 43,453 — — 43,453 Federal Home Loan Bank stock 19,596 19,596 — 19,596 — Other assets - GNMA EBO loans 9,940 9,940 — — 9,940 Liabilities: Certificates of deposit $ 915,481 $ 908,030 $ — $ 908,030 $ — Borrowings 273,000 273,000 273,000 Long-term debt 224,137 214,853 — 214,853 — At December 31, 2021 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 65,214 $ 65,214 $ 65,214 $ — $ — Investment securities HTM 4,169 4,305 — 4,305 — LHFI 5,488,439 5,588,719 — — 5,588,719 LHFS – multifamily and other 48,090 48,425 — 48,425 — Mortgage servicing rights – multifamily and SBA 39,415 43,199 — — 43,199 Federal Home Loan Bank stock 10,361 10,361 — 10,361 — Other assets-GNMA EBO loans 12,342 12,342 — — 12,342 Liabilities: Certificates of deposit $ 906,928 $ 906,064 $ — $ 906,064 $ — Borrowings 41,000 41,000 — 41,000 — Long-term debt 126,026 116,845 — 116,845 — Fair Value Option Single family loans held for sale accounted under the fair value option are measured initially at fair value with subsequent changes in fair value recognized in earnings. Gains and losses from such changes in fair value are recognized in net gain on mortgage loan origination and sale activities within noninterest income. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in fair value of the related servicing asset, resulting in revaluations adjustments to the recorded fair value. The use of the fair value option allows the change in the fair value of loans to more effectively offset the change in fair value of derivative instruments that are used as economic hedges of loans held for sale. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option: At March 31, 2022 At December 31, 2021 (in thousands) Fair Value Aggregate Unpaid Principal Balance Fair Value Less Aggregated Unpaid Principal Balance Fair Value Aggregate Unpaid Principal Balance Fair Value Less Aggregated Unpaid Principal Balance Single family LHFS $ 48,994 $ 49,457 $ (463) $ 128,041 $ 124,933 $ 3,108 |
Loans Held For Sale Accounted for Under the Fair Value Option | The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option: At March 31, 2022 At December 31, 2021 (in thousands) Fair Value Aggregate Unpaid Principal Balance Fair Value Less Aggregated Unpaid Principal Balance Fair Value Aggregate Unpaid Principal Balance Fair Value Less Aggregated Unpaid Principal Balance Single family LHFS $ 48,994 $ 49,457 $ (463) $ 128,041 $ 124,933 $ 3,108 |
INVESTMENT SECURITIES - Unreali
INVESTMENT SECURITIES - Unrealized Gain/Loss on Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
AFS | ||
Amortized cost | $ 1,100,881 | $ 975,763 |
Gross unrealized gains | 3,264 | 30,084 |
Gross unrealized losses | (43,961) | (3,325) |
Fair value | 1,060,184 | 1,002,522 |
Residential mortgage-backed securities | ||
AFS | ||
Amortized cost | 30,689 | 32,905 |
Gross unrealized gains | 6 | 396 |
Gross unrealized losses | (1,508) | (338) |
Fair value | 29,187 | 32,963 |
Commercial mortgage-backed securities | ||
AFS | ||
Amortized cost | 70,312 | 62,094 |
Gross unrealized gains | 38 | 933 |
Gross unrealized losses | (3,958) | (235) |
Fair value | 66,392 | 62,792 |
Residential collateralized mortgage obligations | ||
AFS | ||
Amortized cost | 276,246 | 186,703 |
Gross unrealized gains | 186 | 2,012 |
Gross unrealized losses | (9,940) | (1,321) |
Fair value | 266,492 | 187,394 |
Commercial collateralized mortgage obligations | ||
AFS | ||
Amortized cost | 138,168 | 135,102 |
Gross unrealized gains | 135 | 1,890 |
Gross unrealized losses | (3,424) | (333) |
Fair value | 134,879 | 136,659 |
Municipal bonds | ||
AFS | ||
Amortized cost | 535,353 | 516,693 |
Gross unrealized gains | 2,802 | 24,154 |
Gross unrealized losses | (23,016) | (924) |
Fair value | 515,139 | 539,923 |
HTM | ||
Amortized cost | 4,143 | 4,169 |
Gross unrealized gains | 8 | 136 |
Gross unrealized losses | (17) | 0 |
Fair value | 4,134 | 4,305 |
Corporate debt securities | ||
AFS | ||
Amortized cost | 26,850 | 18,918 |
Gross unrealized gains | 97 | 699 |
Gross unrealized losses | (574) | (1) |
Fair value | 26,373 | 19,616 |
U.S. Treasury securities | ||
AFS | ||
Amortized cost | 23,263 | 23,348 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,541) | (173) |
Fair value | $ 21,722 | $ 23,175 |
INVESTMENT SECURITIES - Continu
INVESTMENT SECURITIES - Continuous Unrealized Loss on Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | $ (38,540) | $ (2,503) |
AFS, Less than 12 months, Fair value | 779,641 | 181,901 |
AFS, Twelve months or more, Gross unrealized losses | (5,421) | (822) |
AFS, Twelve months or more, Fair value | 43,297 | 15,712 |
AFS, Total, Gross unrealized losses | (43,961) | (3,325) |
AFS, Total, Fair value | 822,938 | 197,613 |
Residential mortgage-backed securities | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (1,064) | (38) |
AFS, Less than 12 months, Fair value | 25,716 | 5,324 |
AFS, Twelve months or more, Gross unrealized losses | (444) | (300) |
AFS, Twelve months or more, Fair value | 2,233 | 2,406 |
AFS, Total, Gross unrealized losses | (1,508) | (338) |
AFS, Total, Fair value | 27,949 | 7,730 |
Commercial mortgage-backed securities | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (3,958) | (235) |
AFS, Less than 12 months, Fair value | 58,243 | 18,127 |
AFS, Twelve months or more, Gross unrealized losses | 0 | 0 |
AFS, Twelve months or more, Fair value | 0 | 0 |
AFS, Total, Gross unrealized losses | (3,958) | (235) |
AFS, Total, Fair value | 58,243 | 18,127 |
Residential collateralized mortgage obligations | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (7,475) | (1,007) |
AFS, Less than 12 months, Fair value | 177,481 | 53,068 |
AFS, Twelve months or more, Gross unrealized losses | (2,465) | (314) |
AFS, Twelve months or more, Fair value | 21,315 | 7,116 |
AFS, Total, Gross unrealized losses | (9,940) | (1,321) |
AFS, Total, Fair value | 198,796 | 60,184 |
Commercial collateralized mortgage obligations | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (2,802) | (135) |
AFS, Less than 12 months, Fair value | 103,919 | 14,806 |
AFS, Twelve months or more, Gross unrealized losses | (622) | (198) |
AFS, Twelve months or more, Fair value | 7,608 | 5,132 |
AFS, Total, Gross unrealized losses | (3,424) | (333) |
AFS, Total, Fair value | 111,527 | 19,938 |
Municipal bonds | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (21,126) | (914) |
AFS, Less than 12 months, Fair value | 375,801 | 64,237 |
AFS, Twelve months or more, Gross unrealized losses | (1,890) | (10) |
AFS, Twelve months or more, Fair value | 12,141 | 1,058 |
AFS, Total, Gross unrealized losses | (23,016) | (924) |
AFS, Total, Fair value | 387,942 | 65,295 |
HTM | ||
HFM, Less than 12 months, Gross unrealized losses | (17) | |
HFM, Less than 12 months, Fair value | 2,474 | |
HFM, 12 months or more, Gross unrealized losses | 0 | |
HFM, 12 months or more, Fair value | 0 | |
HFM, Total, Gross unrealized losses | (17) | |
HTM, Total, Fair value | 2,474 | |
Corporate debt securities | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (574) | (1) |
AFS, Less than 12 months, Fair value | 16,758 | 3,164 |
AFS, Twelve months or more, Gross unrealized losses | 0 | 0 |
AFS, Twelve months or more, Fair value | 0 | 0 |
AFS, Total, Gross unrealized losses | (574) | (1) |
AFS, Total, Fair value | 16,758 | 3,164 |
U.S. Treasury securities | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (1,541) | (173) |
AFS, Less than 12 months, Fair value | 21,723 | 23,175 |
AFS, Twelve months or more, Gross unrealized losses | 0 | 0 |
AFS, Twelve months or more, Fair value | 0 | 0 |
AFS, Total, Gross unrealized losses | (1,541) | (173) |
AFS, Total, Fair value | $ 21,723 | $ 23,175 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||
Tax exempt interest income on available-for-sale securities | $ 2,700 | $ 2,400 | |
Mortgage Backed Securities and Collateralized Mortgage Obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Weighted average yield | 1.88% | 1.82% | |
US Treasury Notes Securities | Not Designated as Hedging Instrument, Economic Hedge | |||
Debt Securities, Available-for-sale [Line Items] | |||
Trading securities | $ 19,000 | ||
Unrealized loss on trading securities | $ 700 |
INVESTMENT SECURITIES - Weighte
INVESTMENT SECURITIES - Weighted Average Yield (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
AFS | ||
Fair value | $ 1,060,184 | $ 1,002,522 |
Total | ||
AFS | ||
Due within one year, Fair value | $ 4,159 | $ 4,933 |
Weighted Average Yield, due within one year | 3.57% | 3.79% |
Due in one through five years, Fair value | $ 19,248 | $ 20,929 |
Weighted Average Yield, due after one year through five years | 3.32% | 3.37% |
Due after five years through ten years, Fair value | $ 109,141 | $ 104,253 |
Weighted Average Yield, due after five years through ten years | 3.13% | 3.23% |
Due after 10 years, Fair value | $ 430,686 | $ 452,599 |
Weighted Average Yield, due after ten years | 3.03% | 3.23% |
Fair value | $ 563,234 | $ 582,714 |
Weighted Average Yield, Total | 3.07% | 3.24% |
Municipal bonds | ||
AFS | ||
Due within one year, Fair value | $ 4,159 | $ 4,933 |
Weighted Average Yield, due within one year | 3.57% | 3.79% |
Due in one through five years, Fair value | $ 13,675 | $ 14,366 |
Weighted Average Yield, due after one year through five years | 3.23% | 3.26% |
Due after five years through ten years, Fair value | $ 66,619 | $ 68,025 |
Weighted Average Yield, due after five years through ten years | 3.40% | 3.60% |
Due after 10 years, Fair value | $ 430,686 | $ 452,599 |
Weighted Average Yield, due after ten years | 3.03% | 3.23% |
Fair value | $ 515,139 | $ 539,923 |
Weighted Average Yield, Total | 3.09% | 3.28% |
HTM | ||
Due within one year, Fair value | $ 1,659 | $ 1,684 |
Weighted Average Yield, due within one year | 2.91% | 2.86% |
Due in one through five years, Fair value | $ 2,475 | $ 2,621 |
Weighted Average Yield, due after one year through five years | 2.07% | 2.12% |
Due after five years through ten years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after five years through ten years | 0.00% | 0.00% |
Due after ten years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after ten years | 0.00% | 0.00% |
Fair Value | $ 4,134 | $ 4,305 |
Weighted Average Yield, Total | 2.41% | 2.42% |
Corporate debt securities | ||
AFS | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 5,573 | $ 6,563 |
Weighted Average Yield, due after one year through five years | 3.54% | 3.60% |
Due after five years through ten years, Fair value | $ 20,800 | $ 13,053 |
Weighted Average Yield, due after five years through ten years | 4.39% | 5.03% |
Due after 10 years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after ten years | 0.00% | 0.00% |
Fair value | $ 26,373 | $ 19,616 |
Weighted Average Yield, Total | 4.22% | 4.55% |
U.S. Treasury securities | ||
AFS | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0.00% | 0.00% |
Due in one through five years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after one year through five years | 0.00% | 0.00% |
Due after five years through ten years, Fair value | $ 21,722 | $ 23,175 |
Weighted Average Yield, due after five years through ten years | 1.20% | 1.27% |
Due after 10 years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after ten years | 0.00% | 0.00% |
Fair value | $ 21,722 | $ 23,175 |
Weighted Average Yield, Total | 1.20% | 1.27% |
INVESTMENT SECURITIES - Realize
INVESTMENT SECURITIES - Realized Gain/Loss on Investment (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Proceeds | $ 962 |
Gross gains | 71 |
Gross losses | $ 0 |
INVESTMENT SECURITIES - Pledged
INVESTMENT SECURITIES - Pledged to Secure Borrowings And Public Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Washington, Oregon and California State to secure public deposits | $ 201,444 | $ 206,153 |
Other securities pledged | 4,972 | 5,258 |
Total securities pledged as collateral | $ 206,416 | $ 211,411 |
LOANS AND CREDIT QUALITY - Narr
LOANS AND CREDIT QUALITY - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)portfolioSegment | Dec. 31, 2021USD ($) | |
Financing Receivable, Impaired [Line Items] | ||
Number of portfolio segments | portfolioSegment | 2 | |
Allowance for unfunded commitments | $ 2,600 | $ 2,400 |
Accrued interest receivable | 18,100 | 17,800 |
Total past due and nonaccrual | $ 24,415 | $ 21,020 |
California | Multifamily | ||
Financing Receivable, Impaired [Line Items] | ||
Percentage of loan portfolio | 34.00% | 33.00% |
Federal Home Loan Bank Advances | ||
Financing Receivable, Impaired [Line Items] | ||
Loans pledged as collateral | $ 3,200,000 | $ 2,800,000 |
Federal Reserve Bank Advances | ||
Financing Receivable, Impaired [Line Items] | ||
Loans pledged as collateral | $ 421,000 | $ 419,000 |
LOANS AND CREDIT QUALITY - Loan
LOANS AND CREDIT QUALITY - Loans Held for Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Loans held for investment | ||||
Total LHFI | $ 5,864,490 | $ 5,542,849 | ||
Allowance for credit losses | (37,944) | (47,123) | $ (64,047) | $ (64,294) |
Loans held for investment | 5,826,546 | 5,495,726 | ||
Recurring | ||||
Loans held for investment | ||||
Single family LHFI | 6,981 | 7,287 | ||
Recurring | Level 3 | ||||
Loans held for investment | ||||
Single family LHFI | 6,981 | 7,287 | ||
Commercial loans | ||||
Loans held for investment | ||||
Total LHFI | 4,809,480 | 4,476,440 | ||
Commercial loans | Real Estate Sector | ||||
Loans held for investment | ||||
Total LHFI | 3,957,186 | 3,616,862 | ||
Commercial loans | Commercial and Industrial Sector | ||||
Loans held for investment | ||||
Total LHFI | 852,294 | 859,578 | ||
Commercial loans | Non-owner occupied CRE | ||||
Loans held for investment | ||||
Total LHFI | 699,277 | 705,359 | ||
Commercial loans | Multifamily | ||||
Loans held for investment | ||||
Total LHFI | 2,729,775 | 2,415,359 | ||
Commercial loans | Construction/land development | ||||
Loans held for investment | ||||
Total LHFI | 528,134 | 496,144 | ||
Commercial loans | Owner occupied CRE | ||||
Loans held for investment | ||||
Total LHFI | 464,356 | 457,706 | ||
Commercial loans | Commercial business | ||||
Loans held for investment | ||||
Total LHFI | 387,938 | 401,872 | ||
Consumer loans | ||||
Loans held for investment | ||||
Total LHFI | 1,055,010 | 1,066,409 | ||
Consumer loans | Single family | ||||
Loans held for investment | ||||
Total LHFI | 759,286 | 763,331 | ||
Consumer loans | Home equity and other | ||||
Loans held for investment | ||||
Total LHFI | $ 295,724 | $ 303,078 |
LOANS AND CREDIT QUALITY - Allo
LOANS AND CREDIT QUALITY - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
ACL for LHFI | ||
Beginning balance | $ 47,123 | $ 64,294 |
Provision for credit losses | (9,223) | (371) |
Net (charge-offs) recoveries | 44 | 124 |
Ending balance | 37,944 | 64,047 |
Allowance for unfunded commitments: | ||
Beginning balance | 2,404 | 1,588 |
Provision for credit losses | 223 | 371 |
Allowance for credit losses - loans | (9,223) | (371) |
Ending balance | 2,627 | 1,959 |
Total | $ (9,000) | $ 0 |
LOANS AND CREDIT QUALITY - Acti
LOANS AND CREDIT QUALITY - Activity in Allowance for Credit Losses by Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance for credit losses by loan portfolio | ||
Beginning balance | $ 47,123 | $ 64,294 |
Charge-offs | (44) | (126) |
Recoveries | 88 | 250 |
Provision | (9,223) | (371) |
Ending balance | 37,944 | 64,047 |
Commercial loans | Real Estate Sector | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 21,486 | 27,935 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (1,400) | 227 |
Ending balance | 20,086 | 28,162 |
Commercial loans | Commercial and Industrial Sector | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 17,279 | 22,037 |
Charge-offs | (11) | 0 |
Recoveries | 24 | 74 |
Provision | (6,846) | 260 |
Ending balance | 10,446 | 22,371 |
Commercial loans | Non-owner occupied CRE | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 7,509 | 8,845 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (5,215) | 373 |
Ending balance | 2,294 | 9,218 |
Commercial loans | Multifamily | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 5,854 | 6,072 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 2,573 | 897 |
Ending balance | 8,427 | 6,969 |
Commercial loans | Multifamily construction | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 507 | 4,903 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (51) | (967) |
Ending balance | 456 | 3,936 |
Commercial loans | CRE construction | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 150 | 1,670 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | 34 | 238 |
Ending balance | 184 | 1,908 |
Commercial loans | Single family construction | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 6,411 | 5,130 |
Charge-offs | 0 | 0 |
Recoveries | 0 | |
Provision | 1,324 | (123) |
Ending balance | 7,735 | 5,007 |
Commercial loans | Single family construction to permanent | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 1,055 | 1,315 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (65) | (191) |
Ending balance | 990 | 1,124 |
Commercial loans | Owner occupied CRE | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 5,006 | 4,994 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision | (1,470) | 272 |
Ending balance | 3,536 | 5,266 |
Commercial loans | Commercial business | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 12,273 | 17,043 |
Charge-offs | (11) | 0 |
Recoveries | 24 | 74 |
Provision | (5,376) | (12) |
Ending balance | 6,910 | 17,105 |
Consumer loans | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 8,358 | 14,322 |
Charge-offs | (33) | (126) |
Recoveries | 64 | 176 |
Provision | (977) | (858) |
Ending balance | 7,412 | 13,514 |
Consumer loans | Single family | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 4,394 | 6,906 |
Charge-offs | 0 | (70) |
Recoveries | 4 | 120 |
Provision | (636) | (221) |
Ending balance | 3,762 | 6,735 |
Consumer loans | Home equity and other | ||
Allowance for credit losses by loan portfolio | ||
Beginning balance | 3,964 | 7,416 |
Charge-offs | (33) | (56) |
Recoveries | 60 | 56 |
Provision | (341) | (637) |
Ending balance | $ 3,650 | $ 6,779 |
LOANS AND CREDIT QUALITY - Lo_2
LOANS AND CREDIT QUALITY - Loans Credit Quality by Year and Type (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | $ 524,516 | $ 1,983,151 |
Financing receivable, year two | 1,970,511 | 976,561 |
Financing receivable, year three | 944,211 | 685,228 |
Financing receivable, year four | 607,468 | 343,695 |
Financing receivable, year five | 320,530 | 324,120 |
Financing receivable, prior to year five | 967,847 | 704,248 |
Revolving | 519,620 | 514,380 |
Revolving-term | 9,787 | 11,466 |
Total | 5,864,490 | 5,542,849 |
Recurring | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Single family LHFI | 6,981 | 7,287 |
Level 3 | Recurring | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Single family LHFI | 6,981 | 7,287 |
30-59 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 3,814 | 1,208 |
60-89 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,852 | 894 |
90+ days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 6,903 | 6,717 |
Commercial loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 479,156 | 1,805,033 |
Financing receivable, year two | 1,790,259 | 819,724 |
Financing receivable, year three | 791,434 | 621,614 |
Financing receivable, year four | 557,066 | 276,648 |
Financing receivable, year five | 263,109 | 227,302 |
Financing receivable, prior to year five | 689,035 | 496,716 |
Revolving | 234,451 | 223,272 |
Revolving-term | 4,970 | 6,131 |
Total | 4,809,480 | 4,476,440 |
Commercial loans | Non-owner occupied CRE | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 23,614 | 68,647 |
Financing receivable, year two | 68,572 | 50,571 |
Financing receivable, year three | 50,276 | 169,711 |
Financing receivable, year four | 158,484 | 130,877 |
Financing receivable, year five | 121,836 | 100,674 |
Financing receivable, prior to year five | 274,775 | 183,024 |
Revolving | 853 | 963 |
Revolving-term | 867 | 892 |
Total | 699,277 | 705,359 |
Commercial loans | Non-owner occupied CRE | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 23,614 | 68,647 |
Financing receivable, year two | 68,572 | 50,571 |
Financing receivable, year three | 50,276 | 169,711 |
Financing receivable, year four | 158,484 | 130,877 |
Financing receivable, year five | 121,836 | 100,674 |
Financing receivable, prior to year five | 274,775 | 183,024 |
Revolving | 853 | 963 |
Revolving-term | 867 | 892 |
Total | 699,277 | 705,359 |
Commercial loans | Non-owner occupied CRE | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Non-owner occupied CRE | Substandard | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Multifamily | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 364,731 | 1,315,204 |
Financing receivable, year two | 1,311,572 | 561,666 |
Financing receivable, year three | 559,882 | 286,826 |
Financing receivable, year four | 253,625 | 60,372 |
Financing receivable, year five | 60,103 | 26,065 |
Financing receivable, prior to year five | 179,862 | 165,225 |
Revolving | 0 | 1 |
Revolving-term | 0 | 0 |
Total | 2,729,775 | 2,415,359 |
Commercial loans | Multifamily | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 364,731 | 1,315,204 |
Financing receivable, year two | 1,311,572 | 561,666 |
Financing receivable, year three | 551,187 | 286,826 |
Financing receivable, year four | 233,790 | 60,372 |
Financing receivable, year five | 60,103 | 26,065 |
Financing receivable, prior to year five | 179,862 | 165,225 |
Revolving | 0 | 1 |
Revolving-term | 0 | 0 |
Total | 2,701,245 | 2,415,359 |
Commercial loans | Multifamily | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 8,695 | 0 |
Financing receivable, year four | 19,835 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 28,530 | 0 |
Commercial loans | Multifamily | Substandard | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Multifamily construction | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 7,825 |
Financing receivable, year two | 12,163 | 22,863 |
Financing receivable, year three | 24,664 | 7,173 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 36,827 | 37,861 |
Commercial loans | Multifamily construction | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 7,825 |
Financing receivable, year two | 12,163 | 22,863 |
Financing receivable, year three | 24,664 | 7,173 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 36,827 | 37,861 |
Commercial loans | Multifamily construction | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Multifamily construction | Substandard | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | CRE construction | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 7,694 |
Financing receivable, year two | 11,668 | 3,960 |
Financing receivable, year three | 3,959 | 0 |
Financing receivable, year four | 0 | 1,962 |
Financing receivable, year five | 1,924 | 0 |
Financing receivable, prior to year five | 548 | 556 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 18,099 | 14,172 |
Commercial loans | CRE construction | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 7,694 |
Financing receivable, year two | 11,668 | 3,960 |
Financing receivable, year three | 3,959 | 0 |
Financing receivable, year four | 0 | 1,962 |
Financing receivable, year five | 1,924 | 0 |
Financing receivable, prior to year five | 548 | 556 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 18,099 | 14,172 |
Commercial loans | CRE construction | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | CRE construction | Substandard | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Single family construction | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 31,784 | 146,595 |
Financing receivable, year two | 142,275 | 35,640 |
Financing receivable, year three | 24,226 | 14,509 |
Financing receivable, year four | 12,434 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 76 | 77 |
Revolving | 108,005 | 99,206 |
Revolving-term | 0 | 0 |
Total | 318,800 | 296,027 |
Commercial loans | Single family construction | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 31,784 | 146,595 |
Financing receivable, year two | 142,275 | 35,640 |
Financing receivable, year three | 24,226 | 14,509 |
Financing receivable, year four | 12,434 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 76 | 77 |
Revolving | 108,005 | 99,206 |
Revolving-term | 0 | 0 |
Total | 318,800 | 296,027 |
Commercial loans | Single family construction | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Single family construction | Substandard | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Single family construction to permanent | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 6,613 | 90,311 |
Financing receivable, year two | 106,419 | 42,636 |
Financing receivable, year three | 29,026 | 13,362 |
Financing receivable, year four | 10,575 | 1,775 |
Financing receivable, year five | 1,775 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 154,408 | 148,084 |
Commercial loans | Single family construction to permanent | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 6,613 | 90,311 |
Financing receivable, year two | 106,419 | 42,636 |
Financing receivable, year three | 29,026 | 13,362 |
Financing receivable, year four | 10,575 | 1,775 |
Financing receivable, year five | 1,775 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 154,408 | 148,084 |
Commercial loans | Single family construction to permanent | 30-59 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Single family construction to permanent | 60-89 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Single family construction to permanent | 90+ days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 0 | 0 |
Commercial loans | Owner occupied CRE | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 20,055 | 70,902 |
Financing receivable, year two | 70,792 | 47,536 |
Financing receivable, year three | 47,176 | 76,088 |
Financing receivable, year four | 75,511 | 51,023 |
Financing receivable, year five | 49,952 | 83,212 |
Financing receivable, prior to year five | 198,875 | 125,248 |
Revolving | 248 | 798 |
Revolving-term | 1,747 | 2,899 |
Total | 464,356 | 457,706 |
Commercial loans | Owner occupied CRE | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 20,055 | 70,902 |
Financing receivable, year two | 70,792 | 47,536 |
Financing receivable, year three | 47,176 | 57,423 |
Financing receivable, year four | 57,012 | 47,716 |
Financing receivable, year five | 46,661 | 67,042 |
Financing receivable, prior to year five | 164,101 | 106,659 |
Revolving | 248 | 798 |
Revolving-term | 1,689 | 2,839 |
Total | 407,734 | 400,915 |
Commercial loans | Owner occupied CRE | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 18,499 | 2,196 |
Financing receivable, year five | 2,180 | 6,019 |
Financing receivable, prior to year five | 23,202 | 145 |
Revolving | 0 | 0 |
Revolving-term | 0 | 60 |
Total | 43,881 | 8,420 |
Commercial loans | Owner occupied CRE | Substandard | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 18,665 |
Financing receivable, year four | 0 | 1,111 |
Financing receivable, year five | 1,111 | 10,151 |
Financing receivable, prior to year five | 11,572 | 18,444 |
Revolving | 0 | 0 |
Revolving-term | 58 | 0 |
Total | 12,741 | 48,371 |
Commercial loans | Commercial business | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 32,359 | 97,855 |
Financing receivable, year two | 66,798 | 54,852 |
Financing receivable, year three | 52,225 | 53,945 |
Financing receivable, year four | 46,437 | 30,639 |
Financing receivable, year five | 27,519 | 17,351 |
Financing receivable, prior to year five | 34,899 | 22,586 |
Revolving | 125,345 | 122,304 |
Revolving-term | 2,356 | 2,340 |
Total | 387,938 | 401,872 |
Commercial loans | Commercial business | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 32,359 | 88,139 |
Financing receivable, year two | 58,371 | 51,453 |
Financing receivable, year three | 48,943 | 44,882 |
Financing receivable, year four | 36,976 | 24,711 |
Financing receivable, year five | 23,289 | 11,859 |
Financing receivable, prior to year five | 27,808 | 21,258 |
Revolving | 113,186 | 112,759 |
Revolving-term | 2,131 | 2,104 |
Total | 343,063 | 357,165 |
Commercial loans | Commercial business | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 213 | 0 |
Financing receivable, year three | 29 | 7,396 |
Financing receivable, year four | 7,047 | 0 |
Financing receivable, year five | 838 | 4,396 |
Financing receivable, prior to year five | 5,264 | 0 |
Revolving | 7,543 | 5,613 |
Revolving-term | 212 | 134 |
Total | 21,146 | 17,539 |
Commercial loans | Commercial business | Substandard | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 9,716 |
Financing receivable, year two | 8,214 | 3,399 |
Financing receivable, year three | 3,253 | 1,667 |
Financing receivable, year four | 2,414 | 5,928 |
Financing receivable, year five | 3,392 | 1,096 |
Financing receivable, prior to year five | 1,827 | 1,328 |
Revolving | 4,616 | 3,932 |
Revolving-term | 13 | 102 |
Total | 23,729 | 27,168 |
Consumer loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 45,360 | 178,118 |
Financing receivable, year two | 180,252 | 156,837 |
Financing receivable, year three | 152,777 | 63,614 |
Financing receivable, year four | 50,402 | 67,047 |
Financing receivable, year five | 57,421 | 96,818 |
Financing receivable, prior to year five | 278,812 | 207,532 |
Revolving | 285,169 | 291,108 |
Revolving-term | 4,817 | 5,335 |
Total | 1,055,010 | 1,066,409 |
Consumer loans | Single family | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 44,563 | 176,110 |
Financing receivable, year two | 178,656 | 156,360 |
Financing receivable, year three | 152,443 | 63,221 |
Financing receivable, year four | 50,108 | 66,515 |
Financing receivable, year five | 57,209 | 96,302 |
Financing receivable, prior to year five | 276,307 | 204,823 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 759,286 | 763,331 |
Consumer loans | Single family | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 44,563 | 176,110 |
Financing receivable, year two | 178,656 | 156,360 |
Financing receivable, year three | 152,443 | 62,369 |
Financing receivable, year four | 49,114 | 66,063 |
Financing receivable, year five | 56,757 | 95,988 |
Financing receivable, prior to year five | 275,042 | 204,229 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 756,575 | 761,119 |
Consumer loans | Single family | 30-59 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 291 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 872 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 872 | 291 |
Consumer loans | Single family | 60-89 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 314 |
Financing receivable, prior to year five | 270 | 471 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 270 | 785 |
Consumer loans | Single family | 90+ days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 561 |
Financing receivable, year four | 994 | 452 |
Financing receivable, year five | 452 | 0 |
Financing receivable, prior to year five | 123 | 123 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 1,569 | 1,136 |
Consumer loans | Home equity and other | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 797 | 2,008 |
Financing receivable, year two | 1,596 | 477 |
Financing receivable, year three | 334 | 393 |
Financing receivable, year four | 294 | 532 |
Financing receivable, year five | 212 | 516 |
Financing receivable, prior to year five | 2,505 | 2,709 |
Revolving | 285,169 | 291,108 |
Revolving-term | 4,817 | 5,335 |
Total | 295,724 | 303,078 |
Consumer loans | Home equity and other | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 797 | 2,005 |
Financing receivable, year two | 1,585 | 474 |
Financing receivable, year three | 334 | 393 |
Financing receivable, year four | 294 | 532 |
Financing receivable, year five | 197 | 516 |
Financing receivable, prior to year five | 2,407 | 2,609 |
Revolving | 284,426 | 290,512 |
Revolving-term | 4,755 | 5,273 |
Total | 294,795 | 302,314 |
Consumer loans | Home equity and other | 30-59 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 3 | 3 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 94 |
Revolving | 57 | 40 |
Revolving-term | 0 | 0 |
Total | 60 | 137 |
Consumer loans | Home equity and other | 60-89 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 8 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 15 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 7 | 12 |
Revolving-term | 0 | 62 |
Total | 30 | 74 |
Consumer loans | Home equity and other | 90+ days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 3 |
Financing receivable, year two | 0 | 0 |
Financing receivable, year three | 0 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 98 | 6 |
Revolving | 679 | 544 |
Revolving-term | 62 | 0 |
Total | $ 839 | $ 553 |
LOANS AND CREDIT QUALITY - Coll
LOANS AND CREDIT QUALITY - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | $ 5,864,490 | $ 5,542,849 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 4,809,480 | 4,476,440 |
Commercial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 852,294 | 859,578 |
Commercial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 464,356 | 457,706 |
Commercial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 387,938 | 401,872 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 1,055,010 | 1,066,409 |
Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 759,286 | 763,331 |
Consumer loans | Home equity and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 295,724 | 303,078 |
Total | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 7,177 | 6,421 |
Total | Commercial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 4,783 | 4,804 |
Total | Commercial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 3,539 | 3,567 |
Total | Commercial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 1,244 | 1,237 |
Total | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 2,394 | 1,617 |
Total | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 2,049 | 1,598 |
Total | Consumer loans | Home equity and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 345 | 19 |
Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 1,491 | 1,473 |
Land | Commercial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 1,491 | 1,473 |
Land | Commercial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 1,111 | 1,111 |
Land | Commercial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 380 | 362 |
Land | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
Land | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
Land | Consumer loans | Home equity and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 2,410 | 1,644 |
1-4 Family | Commercial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 16 | 27 |
1-4 Family | Commercial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
1-4 Family | Commercial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 16 | 27 |
1-4 Family | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 2,394 | 1,617 |
1-4 Family | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 2,049 | 1,598 |
1-4 Family | Consumer loans | Home equity and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 345 | 19 |
Non-residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 2,990 | 3,018 |
Non-residential real estate | Commercial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 2,990 | 3,018 |
Non-residential real estate | Commercial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 2,428 | 2,456 |
Non-residential real estate | Commercial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 562 | 562 |
Non-residential real estate | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
Non-residential real estate | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
Non-residential real estate | Consumer loans | Home equity and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
Other non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 286 | 286 |
Other non-real estate | Commercial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 286 | 286 |
Other non-real estate | Commercial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
Other non-real estate | Commercial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 286 | 286 |
Other non-real estate | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
Other non-real estate | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | 0 | 0 |
Other non-real estate | Consumer loans | Home equity and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total LHFI | $ 0 | $ 0 |
LOANS AND CREDIT QUALITY - Lo_3
LOANS AND CREDIT QUALITY - Loans on Nonaccrual with no related allowance (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | $ 7,160 | $ 6,125 |
Nonaccrual | 11,846 | 12,201 |
Commercial loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 4,783 | 4,778 |
Nonaccrual | 7,535 | 8,591 |
Commercial loans | Owner occupied CRE | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 3,539 | 3,568 |
Nonaccrual | 3,539 | 3,568 |
Commercial loans | Commercial business | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 1,244 | 1,210 |
Nonaccrual | 3,996 | 5,023 |
Consumer loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 2,377 | 1,347 |
Nonaccrual | 4,311 | 3,610 |
Consumer loans | Single family | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 2,325 | 1,324 |
Nonaccrual | 2,918 | 2,802 |
Consumer loans | Home equity and other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 52 | 23 |
Nonaccrual | $ 1,393 | $ 808 |
LOANS AND CREDIT QUALITY - Agin
LOANS AND CREDIT QUALITY - Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 5,864,490 | $ 5,542,849 |
Nonaccrual | 11,846 | 12,201 |
Total past due and nonaccrual | $ 24,415 | $ 21,020 |
Nonaccrual, percent of total loans | 0.20% | 0.22% |
Past due and nonaccrual, percent of total loans | 0.42% | 0.38% |
Percent of total loans | 100.00% | 100.00% |
Federal Housing Administration, Veteran Affairs, Or Small Business Administration | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due and nonaccrual | $ 11,000 | $ 8,400 |
Recurring | ||
Financing Receivable, Past Due [Line Items] | ||
Single family LHFI | 6,981 | 7,287 |
Level 3 | Recurring | ||
Financing Receivable, Past Due [Line Items] | ||
Single family LHFI | 6,981 | 7,287 |
30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 3,814 | $ 1,208 |
Past due, percent of total loans | 0.07% | 0.02% |
60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 1,852 | $ 894 |
Past due, percent of total loans | 0.03% | 0.02% |
90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 6,903 | $ 6,717 |
Past due, percent of total loans | 0.12% | 0.12% |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 5,840,075 | $ 5,521,829 |
Not past due, percent of total loans | 99.58% | 99.62% |
Commercial loans, adjusted for credit analysis | Real Estate Sector | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 3,957,186 | $ 3,616,862 |
Nonaccrual | 0 | 0 |
Total past due and nonaccrual | 0 | 0 |
Commercial loans, adjusted for credit analysis | Real Estate Sector | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Real Estate Sector | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Real Estate Sector | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Real Estate Sector | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 3,957,186 | 3,616,862 |
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 852,294 | 859,578 |
Nonaccrual | 7,535 | 8,591 |
Total past due and nonaccrual | 7,535 | 8,789 |
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 198 |
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 844,759 | 850,789 |
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 699,277 | 705,359 |
Nonaccrual | 0 | 0 |
Total past due and nonaccrual | 0 | 0 |
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 699,277 | 705,359 |
Commercial loans, adjusted for credit analysis | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 2,729,775 | 2,415,359 |
Nonaccrual | 0 | 0 |
Total past due and nonaccrual | 0 | 0 |
Commercial loans, adjusted for credit analysis | Multifamily | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Multifamily | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Multifamily | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Multifamily | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 2,729,775 | 2,415,359 |
Commercial loans, adjusted for credit analysis | Multifamily construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 36,827 | 37,861 |
Nonaccrual | 0 | 0 |
Total past due and nonaccrual | 0 | 0 |
Commercial loans, adjusted for credit analysis | Multifamily construction | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Multifamily construction | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Multifamily construction | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Multifamily construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 36,827 | 37,861 |
Commercial loans, adjusted for credit analysis | CRE construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 18,099 | 14,172 |
Nonaccrual | 0 | 0 |
Total past due and nonaccrual | 0 | 0 |
Commercial loans, adjusted for credit analysis | CRE construction | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | CRE construction | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | CRE construction | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | CRE construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 18,099 | 14,172 |
Commercial loans, adjusted for credit analysis | Single family construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 318,800 | 296,027 |
Nonaccrual | 0 | 0 |
Total past due and nonaccrual | 0 | 0 |
Commercial loans, adjusted for credit analysis | Single family construction | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Single family construction | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Single family construction | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Single family construction | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 318,800 | 296,027 |
Commercial loans, adjusted for credit analysis | Single family construction to permanent | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 154,408 | 148,084 |
Nonaccrual | 0 | 0 |
Total past due and nonaccrual | 0 | 0 |
Commercial loans, adjusted for credit analysis | Single family construction to permanent | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Single family construction to permanent | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Single family construction to permanent | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Single family construction to permanent | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 154,408 | 148,084 |
Commercial loans, adjusted for credit analysis | Owner occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 464,356 | 457,706 |
Nonaccrual | 3,539 | 3,568 |
Total past due and nonaccrual | 3,539 | 3,568 |
Commercial loans, adjusted for credit analysis | Owner occupied CRE | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Owner occupied CRE | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Owner occupied CRE | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Owner occupied CRE | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 460,817 | 454,138 |
Commercial loans, adjusted for credit analysis | Commercial business | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 387,938 | 401,872 |
Nonaccrual | 3,996 | 5,023 |
Total past due and nonaccrual | 3,996 | 5,221 |
Commercial loans, adjusted for credit analysis | Commercial business | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 198 |
Commercial loans, adjusted for credit analysis | Commercial business | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Commercial business | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Commercial loans, adjusted for credit analysis | Commercial business | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 383,942 | 396,651 |
Consumer portfolio segment, adjusted for credit analysis | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,055,010 | 1,066,409 |
Nonaccrual | 4,311 | 3,610 |
Total past due and nonaccrual | 16,880 | 12,231 |
Consumer portfolio segment, adjusted for credit analysis | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 3,814 | 1,010 |
Consumer portfolio segment, adjusted for credit analysis | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,852 | 894 |
Consumer portfolio segment, adjusted for credit analysis | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 6,903 | 6,717 |
Consumer portfolio segment, adjusted for credit analysis | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,038,130 | 1,054,178 |
Consumer portfolio segment, adjusted for credit analysis | Single family | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 759,286 | 763,331 |
Nonaccrual | 2,918 | 2,802 |
Total past due and nonaccrual | 15,395 | 11,231 |
Consumer portfolio segment, adjusted for credit analysis | Single family | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 3,753 | 892 |
Consumer portfolio segment, adjusted for credit analysis | Single family | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,821 | 820 |
Consumer portfolio segment, adjusted for credit analysis | Single family | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 6,903 | 6,717 |
Consumer portfolio segment, adjusted for credit analysis | Single family | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 743,891 | 752,100 |
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 295,724 | 303,078 |
Nonaccrual | 1,393 | 808 |
Total past due and nonaccrual | 1,485 | 1,000 |
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 61 | 118 |
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 31 | 74 |
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 294,239 | $ 302,078 |
LOANS AND CREDIT QUALITY - Lo_4
LOANS AND CREDIT QUALITY - Loan Modification (Details) - Consumer loans $ in Thousands | Mar. 31, 2022USD ($) |
Single family | Significant Payment Delay | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 153 |
% of Total Class of Financing Receivable | 0.02% |
Single family | Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 37 |
% of Total Class of Financing Receivable | 0.00% |
Single family | Interest Rate Reduction and Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 1,110 |
% of Total Class of Financing Receivable | 0.15% |
Single family | Significant Payment Delay and Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 6,397 |
% of Total Class of Financing Receivable | 0.84% |
Single family | Interest Rate Reduction, Significant Payment Delay and Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 5,762 |
% of Total Class of Financing Receivable | 0.76% |
Home equity and other | Significant Payment Delay and Term Extension | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Amortized Cost Basis | $ 52 |
% of Total Class of Financing Receivable | 0.02% |
LOANS AND CREDIT QUALITY - Lo_5
LOANS AND CREDIT QUALITY - Loan Modifications, Financial Effect (Details) - Consumer loans | Mar. 31, 2022 |
Single family | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average contractual interest rate, before modification | 4.28% |
Weighted average contractual interest rate, after modification | 3.25% |
Weighted average percent of loan balances capitalized and added to term of loan | 0.30% |
Weighted average time added to life of loans (in years) | 3 years 2 months 12 days |
Home equity and other | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Weighted average percent of loan balances capitalized and added to term of loan | 6.30% |
Weighted average time added to life of loans (in years) | 16 years 1 month 6 days |
DEPOSITS - Schedule of Deposit
DEPOSITS - Schedule of Deposit Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Deposit balances, including stated rates | ||
Noninterest-bearing demand deposits | $ 1,654,229 | $ 1,617,069 |
Interest-bearing demand deposits | 591,148 | 513,810 |
Savings | 309,462 | 302,389 |
Money market | 2,800,215 | 2,806,313 |
Certificates of deposit | 915,481 | 906,928 |
Deposits, Total | $ 6,270,535 | $ 6,146,509 |
Weighted Average Rate, Interest-bearing demand deposits | 0.10% | 0.10% |
Weighted Average Rate, Savings | 0.06% | 0.06% |
Weighted Average Rate, Money market | 0.18% | 0.15% |
Weighted Average Rate, Certificates of deposit | 0.45% | 0.51% |
Weighted Average Rate Domestic Deposit, Total | 0.16% | 0.15% |
DEPOSITS - Schedule of Deposits
DEPOSITS - Schedule of Deposits Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Certificates of deposit outstanding | ||
Within one year | $ 761,588 | |
One to two years | 133,251 | |
Two to three years | 16,491 | |
Three to four years | 2,756 | |
Four to five years | 1,395 | |
Total | $ 915,481 | $ 906,928 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | ||
Time deposits, at or above FDIC insurance limit | $ 96 | $ 108 |
Brokered deposits | $ 195 | $ 145 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Jan. 19, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Outstanding balance, subordinated notes | $ 224,137,000 | $ 126,026,000 | |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Outstanding balance, subordinated notes | 62,000,000 | ||
3.5% Subordinated Notes Due 2032 | Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 100,000,000 | ||
Stated interest rate (percent) | 0.035% | ||
Basis spread on variable rate | 2.15% | ||
Net proceeds from issuance of subordinated notes | $ 98,000,000 | ||
Outstanding balance, subordinated notes | $ 98,000,000 | ||
Senior Notes 6.50% Due 2026 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 6.50% | 6.50% | |
Outstanding balance, subordinated notes | $ 64,000,000 | $ 64,000,000 | |
Home Street Statutory Trust Subordinated Debt Securities | Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Outstanding balance, subordinated notes | $ 62,000,000 |
LONG-TERM DEBT - Schedule of Su
LONG-TERM DEBT - Schedule of Subordinated Debt Securities (Details) - Subordinated Debt $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
HomeStreet Statutory Trust Subordinated Debt Securities I | |
Debt Instrument [Line Items] | |
Amount | $ 5,155 |
Call options, term exercisable without penalty | 5 years |
HomeStreet Statutory Trust Subordinated Debt Securities I | Three Month LIBOR | |
Debt Instrument [Line Items] | |
Interest rate | 1.70% |
HomeStreet Statutory Trust Subordinated Debt Securities II | |
Debt Instrument [Line Items] | |
Amount | $ 20,619 |
Call options, term exercisable without penalty | 5 years |
HomeStreet Statutory Trust Subordinated Debt Securities II | Three Month LIBOR | |
Debt Instrument [Line Items] | |
Interest rate | 1.50% |
HomeStreet Statutory Trust Subordinated Debt Securities III | |
Debt Instrument [Line Items] | |
Amount | $ 20,619 |
Call options, term exercisable without penalty | 5 years |
HomeStreet Statutory Trust Subordinated Debt Securities III | Three Month LIBOR | |
Debt Instrument [Line Items] | |
Interest rate | 1.37% |
HomeStreet Statutory Trust Subordinated Debt Securities IV. | |
Debt Instrument [Line Items] | |
Amount | $ 15,464 |
Call options, term exercisable without penalty | 5 years |
HomeStreet Statutory Trust Subordinated Debt Securities IV. | Three Month LIBOR | |
Debt Instrument [Line Items] | |
Interest rate | 1.68% |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 1,170,771 | $ 1,335,485 |
Derivatives before netting, derivative assets | 11,867 | 7,925 |
Netting adjustments/cash collateral, derivative assets | (9,096) | 1,355 |
Derivative assets | 2,771 | 9,280 |
Derivatives before netting, derivative Liabilities | (9,753) | (5,184) |
Netting adjustments/cash collateral, derivative liabilities | 3,072 | 3,921 |
Derivative liabilities | (6,681) | (1,263) |
Concentration of credit risk, master netting arrangements | ||
Derivatives, Fair Value [Line Items] | ||
Right to reclaim cash in excess of fair value of derivative liability | 6,000 | (5,300) |
Forward sale commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 670,018 | 793,208 |
Derivatives before netting, derivative assets | 5,079 | 723 |
Derivatives before netting, derivative Liabilities | (3,528) | (640) |
Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 100,992 | 115,025 |
Derivatives before netting, derivative assets | 683 | 2,487 |
Derivatives before netting, derivative Liabilities | (605) | (3) |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 276,561 | 287,352 |
Derivatives before netting, derivative assets | 5,619 | 4,381 |
Derivatives before netting, derivative Liabilities | (5,620) | (4,541) |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 93,200 | 139,900 |
Derivatives before netting, derivative assets | 97 | 334 |
Derivatives before netting, derivative Liabilities | 0 | $ 0 |
Options | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 30,000 | |
Derivatives before netting, derivative assets | 389 | |
Derivatives before netting, derivative Liabilities | $ 0 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Master Netting Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivatives before netting, derivative assets | $ 11,867 | $ 7,925 |
Netting adjustments/cash collateral, derivative assets | (9,096) | 1,355 |
Derivative assets | 2,771 | 9,280 |
Derivatives before netting, derivative Liabilities | (9,753) | (5,184) |
Netting adjustments/cash collateral, derivative liabilities | 3,072 | 3,921 |
Derivative liabilities | (6,681) | (1,263) |
Concentration of credit risk, master netting arrangements | ||
Derivative [Line Items] | ||
Right to reclaim cash in excess of fair value of derivative liability | $ 6,000 | $ (5,300) |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Liability for cash collateral received from counterparties | $ 7,600 | $ 0 |
Receivable for cash collateral paid to counterparties | 1,600 | 5,300 |
Notional amount of open interest rate swap agreements | 1,170,771 | 1,335,485 |
Interest rate swaps, back-to-back | ||
Derivative [Line Items] | ||
Notional amount of open interest rate swap agreements | $ 277,000 | $ 287,000 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES - Gain (Loss) Recognized in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loans | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) from economic hedging | $ 4,613 | $ 3,858 |
Servicing contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) from economic hedging | (9,439) | (12,591) |
Other Credit Derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) from economic hedging | $ 159 | $ 299 |
MORTGAGE BANKING OPERATIONS - L
MORTGAGE BANKING OPERATIONS - Loans Held for Sale (Details) - Commercial loans - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 59,150 | $ 176,131 |
Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | 48,994 | 128,041 |
CRE, multifamily and SBA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 10,156 | $ 48,090 |
MORTGAGE BANKING OPERATIONS -_2
MORTGAGE BANKING OPERATIONS - Loans Sold (Details) - Commercial loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Proceeds from sale of loans originated as held for sale | $ 372,207 | $ 830,757 |
Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Proceeds from sale of loans originated as held for sale | 323,070 | 573,040 |
CRE, multifamily and SBA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Proceeds from sale of loans originated as held for sale | $ 49,137 | $ 257,717 |
MORTGAGE BANKING OPERATIONS - G
MORTGAGE BANKING OPERATIONS - Gain on Sale (Details) - Commercial loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Gain on mortgage loan origination and sale activities [Line Items] | ||
Gain on loan origination and sale activities | $ 8,274 | $ 33,459 |
Single family | ||
Gain on mortgage loan origination and sale activities [Line Items] | ||
Gain on loan origination and sale activities | 6,169 | 26,187 |
CRE, multifamily and SBA | ||
Gain on mortgage loan origination and sale activities [Line Items] | ||
Gain on loan origination and sale activities | $ 2,105 | $ 7,272 |
MORTGAGE BANKING OPERATIONS -_3
MORTGAGE BANKING OPERATIONS - Loans Serviced for Others (Details) - Commercial loans - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 7,580,946 | $ 7,570,267 |
Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 5,545,145 | 5,539,180 |
CRE, multifamily and SBA | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 2,035,801 | $ 2,031,087 |
MORTGAGE BANKING OPERATIONS - M
MORTGAGE BANKING OPERATIONS - Mortgage Repurchase Liability (Details) - Representations and warranties reserve for loan receivables - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Mortgage Repurchase Losses [Roll Forward] | ||
Balance, beginning of period | $ 1,312 | $ 2,122 |
Additions, net of adjustments | 358 | (20) |
Realized (losses) recoveries, net | (32) | (161) |
Balance, end of period | $ 1,638 | $ 1,941 |
MORTGAGE BANKING OPERATIONS - N
MORTGAGE BANKING OPERATIONS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Impaired [Line Items] | ||
Servicing advances | $ 2.7 | $ 1.9 |
GNMA Early buyout loans | ||
Financing Receivable, Impaired [Line Items] | ||
Loans receivable, in Ginnie Mae pool | $ 10 | $ 12 |
MORTGAGE BANKING OPERATIONS - R
MORTGAGE BANKING OPERATIONS - Revenue from Mortgage Servicing (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Servicing income, net: | ||
Servicing fees and other | $ 8,321 | $ 8,913 |
Amortization of single family MSRs | (3,425) | (5,693) |
Amortization of multifamily and SBA MSRs | (1,712) | (1,344) |
Net servicing income | 3,184 | 1,876 |
Risk management, single family MSRs: | ||
Changes in fair value of MSRs due to assumptions | 10,303 | 11,463 |
Mortgage servicing rights, risk management | 120 | (1,128) |
Loan servicing income | 3,304 | 748 |
Servicing contracts | ||
Risk management, single family MSRs: | ||
Net gain (loss) from economic hedging | $ (10,183) | $ (12,591) |
MORTGAGE BANKING OPERATIONS - S
MORTGAGE BANKING OPERATIONS - Single Family MSR Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Additions and amortization: | ||
Amortization | $ 3,425 | $ 5,693 |
Changes in fair value of MSR assumptions | 10,303 | 11,463 |
Ending balance | 72,378 | |
Single family | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Beginning balance | 61,584 | 49,966 |
Additions and amortization: | ||
Originations | 3,916 | 6,616 |
Amortization | (3,425) | (5,693) |
Net additions and amortization | 491 | 923 |
Changes in fair value of MSR assumptions | 10,303 | 11,463 |
Ending balance | $ 72,378 | $ 62,352 |
MORTGAGE BANKING OPERATIONS - K
MORTGAGE BANKING OPERATIONS - Key Economic Assumptions (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Constant prepayment rate | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Servicing asset, measurement input | 9.38% | 8.37% |
Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques | ||
Servicing asset, measurement input | 8.34% | 8.37% |
MORTGAGE BANKING OPERATIONS -_4
MORTGAGE BANKING OPERATIONS - Sensitivity Analysis (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($) | Dec. 31, 2021 | |
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Fair value of single family MSR | $ 72,378 | |
Expected weighted-average life (in years) | 7 years 1 month 20 days | |
Constant Prepayment Rate [Abstract] | ||
Impact on fair value of 25 basis points adverse change in interest rates | $ (2,208) | |
Impact on fair value of 50 basis points adverse change in interest rates | (4,909) | |
Discount Rate [Abstract] | ||
Impact on fair value of 100 basis points increase | (3,217) | |
Impact on fair value of 200 basis points increase | $ (6,187) | |
Minimum | CPRs | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.0738 | 0.0790 |
Minimum | Discount rate | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.0810 | 0.0694 |
Maximum | CPRs | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.1666 | 0.1735 |
Maximum | Discount rate | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.1518 | 0.1396 |
Weighted average | CPRs | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.0942 | 0.1035 |
Weighted average | Discount rate | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.0905 | 0.0797 |
MORTGAGE BANKING OPERATIONS -_5
MORTGAGE BANKING OPERATIONS - Multifamily MSR Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Beginning balance | $ 39,415 | $ 35,774 |
Origination | 1,576 | 5,196 |
Amortization | (1,712) | (1,344) |
Ending balance | $ 39,279 | $ 39,626 |
GUARANTEES AND MORTGAGE REPUR_2
GUARANTEES AND MORTGAGE REPURCHASE LIABILITY - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Representations and warranties reserve for loan receivables | ||||
Loss Contingencies [Line Items] | ||||
Unfunded commitment balance of loans sold on a servicing-retained basis | $ 5,500,000,000 | $ 5,500,000,000 | ||
Reserve liability related to mortgage repurchase | 1,638,000 | $ 1,941,000 | 1,312,000 | $ 2,122,000 |
Loss sharing relationship | ||||
Loss Contingencies [Line Items] | ||||
Reserve liability related to multifamily DUS program | 600,000 | 600,000 | ||
Loss sharing relationship | Multifamily | ||||
Loss Contingencies [Line Items] | ||||
UPB of loans sold through DUS | 1,900,000,000 | 1,900,000,000 | ||
Losses incurred - related to DUS | 0 | $ 0 | ||
Credit risk | ||||
Loss Contingencies [Line Items] | ||||
Reserve liability related to mortgage repurchase | $ 1,600,000 | $ 1,300,000 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of EPS Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income | $ 19,951 | $ 29,663 |
Weighted average shares: | ||
Basic weighted average number of shares outstanding (in shares) | 19,585,753 | 21,637,671 |
Dilutive effect of outstanding common stock equivalents (in shares) | 206,160 | 324,157 |
Diluted weighted-average number of shares outstanding (in shares) | 19,791,913 | 21,961,828 |
Net income per share: | ||
Basic earnings per share (in dollars per share) | $ 1.02 | $ 1.37 |
Diluted earnings per share (in dollars per share) | $ 1.01 | $ 1.35 |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Fair Value Hierarchy Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Investment securities AFS | $ 1,060,184 | $ 1,002,522 |
Single family mortgage servicing rights | 72,378 | |
Derivatives | 2,771 | 9,280 |
Liabilities: | ||
Derivative liabilities | 6,681 | 1,263 |
Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 29,187 | 32,963 |
Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 66,392 | 62,792 |
Municipal bonds | ||
Assets: | ||
Investment securities AFS | 515,139 | 539,923 |
Corporate debt securities | ||
Assets: | ||
Investment securities AFS | 26,373 | 19,616 |
U.S. Treasury securities | ||
Assets: | ||
Investment securities AFS | 21,722 | 23,175 |
Recurring | ||
Assets: | ||
Single family LHFS | 48,994 | 128,041 |
Single family LHFI | 6,981 | 7,287 |
Single family mortgage servicing rights | 72,378 | 61,584 |
Total assets | 1,219,717 | 1,207,359 |
Liabilities: | ||
Total liabilities | 9,753 | 5,184 |
Recurring | Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 29,187 | 32,963 |
Recurring | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 66,392 | 62,792 |
Recurring | Collateralized mortgage obligations residential | ||
Assets: | ||
Investment securities AFS | 266,492 | 187,394 |
Recurring | Collateralized mortgage obligations commercial | ||
Assets: | ||
Investment securities AFS | 134,879 | 136,659 |
Recurring | Municipal bonds | ||
Assets: | ||
Investment securities AFS | 515,139 | 539,923 |
Recurring | Corporate debt securities | ||
Assets: | ||
Investment securities AFS | 26,373 | 19,616 |
Recurring | U.S. Treasury securities | ||
Assets: | ||
Trading securities - U.S. Treasury securities | 19,313 | |
Investment securities AFS | 21,722 | 23,175 |
Recurring | Futures | ||
Assets: | ||
Derivatives | 97 | 334 |
Recurring | Forward sale commitments | ||
Assets: | ||
Derivatives | 5,079 | 723 |
Liabilities: | ||
Derivative liabilities | 3,528 | 640 |
Recurring | Options | ||
Assets: | ||
Derivatives | 389 | |
Recurring | Interest rate lock commitments | ||
Assets: | ||
Derivatives | 683 | 2,487 |
Liabilities: | ||
Derivative liabilities | 605 | 3 |
Recurring | Interest rate swaps | ||
Assets: | ||
Derivatives | 5,619 | 4,381 |
Liabilities: | ||
Derivative liabilities | 5,620 | 4,541 |
Level 1 | Recurring | ||
Assets: | ||
Single family LHFS | 0 | 0 |
Single family LHFI | 0 | 0 |
Single family mortgage servicing rights | 0 | 0 |
Total assets | 19,799 | 334 |
Liabilities: | ||
Total liabilities | 0 | 0 |
Level 1 | Recurring | Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | Collateralized mortgage obligations residential | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | Collateralized mortgage obligations commercial | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | Municipal bonds | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | Corporate debt securities | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | U.S. Treasury securities | ||
Assets: | ||
Trading securities - U.S. Treasury securities | 19,313 | |
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | Futures | ||
Assets: | ||
Derivatives | 97 | 334 |
Level 1 | Recurring | Forward sale commitments | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Recurring | Options | ||
Assets: | ||
Derivatives | 389 | |
Level 1 | Recurring | Interest rate lock commitments | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Recurring | Interest rate swaps | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 | Recurring | ||
Assets: | ||
Single family LHFS | 48,994 | 128,041 |
Single family LHFI | 0 | 0 |
Single family mortgage servicing rights | 0 | 0 |
Total assets | 1,117,569 | 1,133,185 |
Liabilities: | ||
Total liabilities | 9,148 | 5,181 |
Level 2 | Recurring | Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 26,954 | 30,556 |
Level 2 | Recurring | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 66,392 | 62,792 |
Level 2 | Recurring | Collateralized mortgage obligations residential | ||
Assets: | ||
Investment securities AFS | 266,492 | 187,394 |
Level 2 | Recurring | Collateralized mortgage obligations commercial | ||
Assets: | ||
Investment securities AFS | 134,879 | 136,659 |
Level 2 | Recurring | Municipal bonds | ||
Assets: | ||
Investment securities AFS | 515,139 | 539,923 |
Level 2 | Recurring | Corporate debt securities | ||
Assets: | ||
Investment securities AFS | 26,299 | 19,541 |
Level 2 | Recurring | U.S. Treasury securities | ||
Assets: | ||
Trading securities - U.S. Treasury securities | 0 | |
Investment securities AFS | 21,722 | 23,175 |
Level 2 | Recurring | Futures | ||
Assets: | ||
Derivatives | 0 | 0 |
Level 2 | Recurring | Forward sale commitments | ||
Assets: | ||
Derivatives | 5,079 | 723 |
Liabilities: | ||
Derivative liabilities | 3,528 | 640 |
Level 2 | Recurring | Options | ||
Assets: | ||
Derivatives | 0 | |
Level 2 | Recurring | Interest rate lock commitments | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 2 | Recurring | Interest rate swaps | ||
Assets: | ||
Derivatives | 5,619 | 4,381 |
Liabilities: | ||
Derivative liabilities | 5,620 | 4,541 |
Level 3 | Recurring | ||
Assets: | ||
Single family LHFS | 0 | 0 |
Single family LHFI | 6,981 | 7,287 |
Single family mortgage servicing rights | 72,378 | 61,584 |
Total assets | 82,349 | 73,840 |
Liabilities: | ||
Total liabilities | 605 | 3 |
Level 3 | Recurring | Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 2,233 | 2,407 |
Level 3 | Recurring | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 3 | Recurring | Collateralized mortgage obligations residential | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 3 | Recurring | Collateralized mortgage obligations commercial | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 3 | Recurring | Municipal bonds | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 3 | Recurring | Corporate debt securities | ||
Assets: | ||
Investment securities AFS | 74 | 75 |
Level 3 | Recurring | U.S. Treasury securities | ||
Assets: | ||
Trading securities - U.S. Treasury securities | 0 | |
Investment securities AFS | 0 | 0 |
Level 3 | Recurring | Futures | ||
Assets: | ||
Derivatives | 0 | 0 |
Level 3 | Recurring | Forward sale commitments | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 | Recurring | Options | ||
Assets: | ||
Derivatives | 0 | |
Level 3 | Recurring | Interest rate lock commitments | ||
Assets: | ||
Derivatives | 683 | 2,487 |
Liabilities: | ||
Derivative liabilities | 605 | 3 |
Level 3 | Recurring | Interest rate swaps | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT - Narrat
FAIR VALUE MEASUREMENT - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 | |
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Single family LHFI | 6,981,000 | $ 7,287,000 | |
Level 3 | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Single family LHFI | $ 6,981,000 | $ 7,287,000 |
FAIR VALUE MEASUREMENT - Sche_2
FAIR VALUE MEASUREMENT - Schedule of Level 3 Unobservable Inputs (Details) $ in Thousands | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate lock, net, fair value | $ 78 | $ 2,484 | $ 6,488 | $ 17,392 |
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Single family LHFI | 6,981 | 7,287 | ||
Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available for sale | 2,307 | 2,482 | ||
Single family LHFI | 6,981 | 7,287 | ||
Recurring | Level 3 | Interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate lock, net, fair value | $ 78 | $ 2,484 | ||
Implied spread to benchmark interest rate curve | Minimum | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available for sale, fair value inputs | 0.0200 | 0.0200 | ||
Loans held for investment, fair vale inputs | 0.0249 | 0.0239 | ||
Implied spread to benchmark interest rate curve | Maximum | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available for sale, fair value inputs | 0.0200 | 0.0200 | ||
Loans held for investment, fair vale inputs | 0.0476 | 0.0796 | ||
Implied spread to benchmark interest rate curve | Weighted average | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available for sale, fair value inputs | 0.0200 | 0.0200 | ||
Loans held for investment, fair vale inputs | 0.0314 | 0.0356 | ||
Fall-out factor | Minimum | Recurring | Level 3 | Interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate lock, net, fair value inputs | 0.0020 | 0.0015 | ||
Fall-out factor | Maximum | Recurring | Level 3 | Interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate lock, net, fair value inputs | 0.2960 | 0.2193 | ||
Fall-out factor | Weighted average | Recurring | Level 3 | Interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate lock, net, fair value inputs | 0.1171 | 0.0844 | ||
Value of servicing | Minimum | Recurring | Level 3 | Interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate lock, net, fair value inputs | 0.0045 | 0.0035 | ||
Value of servicing | Maximum | Recurring | Level 3 | Interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate lock, net, fair value inputs | 0.0139 | 0.0146 | ||
Value of servicing | Weighted average | Recurring | Level 3 | Interest rate lock commitments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate lock, net, fair value inputs | 0.0106 | 0.0115 |
FAIR VALUE MEASUREMENT - Sche_3
FAIR VALUE MEASUREMENT - Schedule of Fair Value Changes and Activity for Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest rate lock commitments | ||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||
Beginning balance | $ 2,484 | $ 17,392 |
Payoffs/Sales/Settlements | (229) | (7,435) |
Change in mark to market/Realized/unrealized gains (losses) | (2,177) | (3,469) |
Ending balance | 78 | 6,488 |
Investment securities AFS | ||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||
Beginning balance | 2,482 | 2,710 |
Additions | 0 | 0 |
Transfers | 0 | 0 |
Payoffs/Sales/Settlements | (48) | (48) |
Change in mark to market/Realized/unrealized gains (losses) | (127) | (172) |
Ending balance | 2,307 | 2,490 |
Single family LHFI | ||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||
Beginning balance | 7,287 | 7,108 |
Additions | 0 | 360 |
Transfers | 0 | 0 |
Payoffs/Sales/Settlements | 0 | (3,191) |
Change in mark to market/Realized/unrealized gains (losses) | (306) | 47 |
Ending balance | $ 6,981 | $ 4,324 |
FAIR VALUE MEASUREMENT - FV Uno
FAIR VALUE MEASUREMENT - FV Unobservable Inputs - Nonrecurring Basis (Details) - Nonrecurring $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Gains (Losses) | $ 10 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 904 |
FAIR VALUE MEASUREMENT - FV of
FAIR VALUE MEASUREMENT - FV of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Mortgage servicing rights – multifamily and SBA | $ 72,378 | |
Other assets - GNMA EBO loans | 5,826,546 | $ 5,495,726 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 73,862 | 65,214 |
Investment securities HTM | 4,143 | 4,169 |
LHFI | 5,819,565 | 5,488,439 |
Federal Home Loan Bank stock | 19,596 | 10,361 |
Liabilities: | ||
Certificates of deposit | 915,481 | 906,928 |
Borrowings | 273,000 | 41,000 |
Long-term debt | 224,137 | 126,026 |
Fair Value | ||
Assets: | ||
Cash and cash equivalents | 73,862 | 65,214 |
Investment securities HTM | 4,134 | 4,305 |
LHFI | 5,712,390 | 5,588,719 |
Federal Home Loan Bank stock | 19,596 | 10,361 |
Liabilities: | ||
Certificates of deposit | 908,030 | 906,064 |
Borrowings | 273,000 | 41,000 |
Long-term debt | 214,853 | 116,845 |
Multifamily | Carrying Value | ||
Assets: | ||
LHFS – multifamily and other | 10,156 | 48,090 |
Mortgage servicing rights – multifamily and SBA | 39,279 | 39,415 |
Multifamily | Fair Value | ||
Assets: | ||
LHFS – multifamily and other | 10,248 | 48,425 |
Mortgage servicing rights – multifamily and SBA | 43,453 | 43,199 |
Other assets - GNMA EBO loans | Carrying Value | ||
Assets: | ||
Other assets - GNMA EBO loans | 9,940 | 12,342 |
Other assets - GNMA EBO loans | Fair Value | ||
Assets: | ||
Other assets - GNMA EBO loans | 9,940 | 12,342 |
Level 1 | Fair Value | ||
Assets: | ||
Cash and cash equivalents | 73,862 | 65,214 |
Investment securities HTM | 0 | 0 |
LHFI | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Liabilities: | ||
Certificates of deposit | 0 | 0 |
Borrowings | 0 | |
Long-term debt | 0 | 0 |
Level 1 | Multifamily | Fair Value | ||
Assets: | ||
LHFS – multifamily and other | 0 | 0 |
Mortgage servicing rights – multifamily and SBA | 0 | 0 |
Level 1 | Other assets - GNMA EBO loans | Fair Value | ||
Assets: | ||
Other assets - GNMA EBO loans | 0 | 0 |
Level 2 | Fair Value | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities HTM | 4,134 | 4,305 |
LHFI | 0 | 0 |
Federal Home Loan Bank stock | 19,596 | 10,361 |
Liabilities: | ||
Certificates of deposit | 908,030 | 906,064 |
Borrowings | 273,000 | 41,000 |
Long-term debt | 214,853 | 116,845 |
Level 2 | Multifamily | Fair Value | ||
Assets: | ||
LHFS – multifamily and other | 10,248 | 48,425 |
Mortgage servicing rights – multifamily and SBA | 0 | 0 |
Level 2 | Other assets - GNMA EBO loans | Fair Value | ||
Assets: | ||
Other assets - GNMA EBO loans | 0 | 0 |
Level 3 | Fair Value | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities HTM | 0 | 0 |
LHFI | 5,712,390 | 5,588,719 |
Federal Home Loan Bank stock | 0 | 0 |
Liabilities: | ||
Certificates of deposit | 0 | 0 |
Borrowings | 0 | |
Long-term debt | 0 | 0 |
Level 3 | Multifamily | Fair Value | ||
Assets: | ||
LHFS – multifamily and other | 0 | 0 |
Mortgage servicing rights – multifamily and SBA | 43,453 | 43,199 |
Level 3 | Other assets - GNMA EBO loans | Fair Value | ||
Assets: | ||
Other assets - GNMA EBO loans | $ 9,940 | $ 12,342 |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Option (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Single family LHFS | $ 48,994 | $ 128,041 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Single family LHFS | 48,994 | 128,041 |
Aggregate Unpaid Principal Balance | 49,457 | 124,933 |
Fair Value Less Aggregated Unpaid Principal Balance | $ (463) | $ 3,108 |
SUBSEQUENT EVENT - Narrative (D
SUBSEQUENT EVENT - Narrative (Details) | Apr. 28, 2022$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends payable (in dollars per share) | $ 0.35 |