Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, 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) | 18,810,055 | |
Entity Central Index Key | 0001518715 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 226,704 | $ 72,828 |
Investment securities | 1,294,634 | 1,400,212 |
Loans held for sale ("LHFS") | 33,879 | 17,327 |
Loans held for investment ("LHFI") (net of allowance for credit losses of $40,000 and $41,500) | 7,400,501 | 7,384,820 |
Mortgage servicing rights ("MSRs") | 107,611 | 111,873 |
Premises and equipment, net | 54,114 | 51,172 |
Other real estate owned ("OREO") | 984 | 1,839 |
Goodwill and other intangibles | 10,429 | 29,980 |
Other assets | 329,895 | 294,709 |
Total assets | 9,458,751 | 9,364,760 |
Liabilities: | ||
Deposits | 6,745,551 | 7,451,919 |
Borrowings | 1,873,000 | 1,016,000 |
Long-term debt | 224,671 | 224,404 |
Accounts payable and other liabilities | 113,042 | 110,290 |
Total liabilities | 8,956,264 | 8,802,613 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, no par value, authorized 160,000,000 shares; issued and outstanding, 18,794,030 shares and 18,730,380 shares | 228,972 | 226,592 |
Retained earnings | 400,533 | 435,085 |
Accumulated other comprehensive income (loss) | (127,018) | (99,530) |
Total shareholders' equity | 502,487 | 562,147 |
Total liabilities and shareholders' equity | $ 9,458,751 | $ 9,364,760 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 40,000 | $ 41,500 |
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) | 18,794,030 | 18,730,380 |
Common stock, shares outstanding (in shares) | 18,794,030 | 18,730,380 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Loans | $ 85,899 | $ 73,329 | $ 254,250 | $ 186,108 |
Investment securities | 12,309 | 9,014 | 37,944 | 22,359 |
Cash, Fed Funds and other | 2,498 | 1,060 | 6,270 | 1,655 |
Total interest income | 100,706 | 83,403 | 298,464 | 210,122 |
Interest expense: | ||||
Deposits | 33,840 | 8,321 | 98,603 | 13,498 |
Borrowings | 27,954 | 12,064 | 68,097 | 19,004 |
Total interest expense | 61,794 | 20,385 | 166,700 | 32,502 |
Net interest income | 38,912 | 63,018 | 131,764 | 177,620 |
Provision for credit losses | (1,110) | 0 | (886) | (9,000) |
Net interest income after provision for credit losses | 40,022 | 63,018 | 132,650 | 186,620 |
Noninterest income: | ||||
Net gain on loan origination and sale activities | 2,372 | 2,647 | 7,238 | 16,213 |
Loan servicing income | 3,092 | 2,741 | 9,390 | 9,706 |
Deposit fees | 2,455 | 2,223 | 7,817 | 6,516 |
Other | 2,545 | 5,711 | 6,520 | 9,458 |
Total noninterest income | 10,464 | 13,322 | 30,965 | 41,893 |
Noninterest expense: | ||||
Compensation and benefits | 27,002 | 27,341 | 84,031 | 89,563 |
Information services | 7,579 | 7,038 | 22,207 | 21,880 |
Occupancy | 5,306 | 6,052 | 16,834 | 18,315 |
General, administrative and other | 9,202 | 9,458 | 29,432 | 25,241 |
Goodwill impairment charge | 0 | 0 | 39,857 | 0 |
Total noninterest expense | 49,089 | 49,889 | 192,361 | 154,999 |
Income (loss) before income taxes | 1,397 | 26,451 | (28,746) | 73,514 |
Income tax expense (benefit) | (898) | 6,084 | (4,657) | 15,475 |
Net income (loss) | $ 2,295 | $ 20,367 | $ (24,089) | $ 58,039 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.12 | $ 1.09 | $ (1.28) | $ 3.05 |
Diluted (in dollars per share) | $ 0.12 | $ 1.08 | $ (1.28) | $ 3.03 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 18,792,893 | 18,716,864 | 18,774,593 | 19,000,007 |
Diluted (in shares) | 18,792,893 | 18,796,737 | 18,774,593 | 19,137,848 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,295 | $ 20,367 | $ (24,089) | $ 58,039 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on investment securities available for sale ("AFS") | (34,881) | (56,189) | (37,830) | (166,921) |
Reclassification for net (gains) losses included in income | 0 | 47 | (3) | (24) |
Other comprehensive income (loss) before tax | (34,881) | (56,142) | (37,833) | (166,945) |
Income tax impact of: | ||||
Unrealized gain (loss) on investment securities AFS | (8,632) | (13,485) | (10,344) | (39,868) |
Reclassification for net (gains) losses included in income | 0 | 11 | (1) | (6) |
Total | (8,632) | (13,474) | (10,345) | (39,874) |
Other comprehensive income (loss) | (26,249) | (42,668) | (27,488) | (127,071) |
Total comprehensive income (loss) | $ (23,954) | $ (22,301) | $ (51,577) | $ (69,032) |
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, 2021 | 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 | 58,039 | 58,039 | ||
Share-based compensation expense | 3,239 | $ 3,239 | ||
Common stock issued - Stock grants (in shares) | 130,546 | |||
Common stock issued - Stock grants | 0 | |||
Other comprehensive income (loss) | (127,071) | (127,071) | ||
Dividends declared on common stock | (20,435) | (20,435) | ||
Common stock repurchased (in shares) | (1,498,325) | |||
Common stock repurchased | (76,322) | $ (27,370) | (48,952) | |
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2022 | 18,717,557 | |||
Ending balance at Sep. 30, 2022 | 552,789 | $ 225,725 | 432,995 | (105,931) |
Common stock shares outstanding, beginning balance (in shares) at Jun. 30, 2022 | 18,712,789 | |||
Beginning balance at Jun. 30, 2022 | 580,767 | $ 224,776 | 419,254 | (63,263) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 20,367 | 20,367 | ||
Share-based compensation expense | 942 | $ 942 | ||
Common stock issued - Stock grants (in shares) | 4,328 | |||
Common stock issued - Stock grants | 0 | |||
Other comprehensive income (loss) | (42,668) | (42,668) | ||
Dividends declared on common stock | (6,638) | (6,638) | ||
Common stock repurchased (in shares) | (440) | |||
Common stock repurchased | 19 | $ 7 | 12 | |
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2022 | 18,717,557 | |||
Ending balance at Sep. 30, 2022 | $ 552,789 | $ 225,725 | 432,995 | (105,931) |
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2022 | 18,730,380 | 18,730,380 | ||
Beginning balance at Dec. 31, 2022 | $ 562,147 | $ 226,592 | 435,085 | (99,530) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | (24,089) | (24,089) | ||
Share-based compensation expense | 2,696 | $ 2,696 | ||
Common stock issued - Stock grants (in shares) | 76,744 | |||
Common stock issued - Stock grants | 0 | |||
Other comprehensive income (loss) | (27,488) | (27,488) | ||
Dividends declared on common stock | (10,463) | (10,463) | ||
Common stock repurchased (in shares) | (13,094) | |||
Common stock repurchased | $ (316) | $ (316) | ||
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2023 | 18,794,030 | 18,794,030 | ||
Ending balance at Sep. 30, 2023 | $ 502,487 | $ 228,972 | 400,533 | (127,018) |
Common stock shares outstanding, beginning balance (in shares) at Jun. 30, 2023 | 18,776,597 | |||
Beginning balance at Jun. 30, 2023 | 527,623 | $ 228,260 | 400,132 | (100,769) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 2,295 | 2,295 | ||
Share-based compensation expense | 712 | $ 712 | ||
Common stock issued - Stock grants (in shares) | 17,433 | |||
Common stock issued - Stock grants | 0 | |||
Other comprehensive income (loss) | (26,249) | (26,249) | ||
Dividends declared on common stock | (1,894) | (1,894) | ||
Common stock repurchased (in shares) | 0 | |||
Common stock repurchased | $ 0 | |||
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2023 | 18,794,030 | 18,794,030 | ||
Ending balance at Sep. 30, 2023 | $ 502,487 | $ 228,972 | $ 400,533 | $ (127,018) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock (in dollars per share) | $ 0.10 | $ 0.35 | $ 0.55 | $ 1.05 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (24,089) | $ 58,039 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Goodwill impairment charge | 39,857 | 0 |
Provision for credit losses | (886) | (9,000) |
Depreciation and amortization, premises and equipment | 5,441 | 7,308 |
Amortization of premiums and discounts: investment securities, deposits, debt | 61 | 2,833 |
Operating leases: excess of payments over amortization | (2,404) | (3,146) |
Amortization of finance leases | 328 | 442 |
Amortization of core deposit intangibles | 2,163 | 728 |
Amortization of deferred loan fees and costs | (773) | (656) |
Share-based compensation expense | 2,696 | 3,239 |
Deferred income tax expense (credit) | 12,149 | (4,306) |
Origination of LHFS | (288,479) | (600,037) |
Proceeds from sale of LHFS | 274,915 | 763,057 |
Net fair value adjustment and gain on sale of LHFS | (480) | 6,304 |
Origination of MSRs | (2,721) | (10,945) |
Net gain on sale of loans originated as LHFI | 0 | (88) |
Change in fair value of MSRs | 3,080 | (8,563) |
Amortization of servicing rights | 4,363 | 5,877 |
Gain on sale of OREO | (621) | 0 |
Gain on sale of branches | 0 | (4,270) |
Net change in trading securities | (2,584) | (21,104) |
(Increase) decrease in other assets | (42,197) | 10,475 |
Increase (decrease) in accounts payable and other liabilities | 18,689 | 13,268 |
Net cash provided by (used in) operating activities | (1,492) | 209,455 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment securities | (53,232) | (621,813) |
Proceeds from sale of investment securities | 4,693 | 75,361 |
Principal payments on investment securities | 119,710 | 94,739 |
Proceeds from sale of OREO | 1,725 | 952 |
Proceeds from sale of loans originated as LHFI | 0 | 4,613 |
Net cash distributed in sale of branches | 0 | (138,756) |
Net decrease (increase) in LHFI | 4,171 | (1,727,944) |
Purchase of premises and equipment | (2,667) | (4,939) |
Net cash received from acquisition of branches | 327,901 | 0 |
Proceeds from sale of Federal Home Loan Bank stock | 116,046 | 68,966 |
Purchases of Federal Home Loan Bank stock | (126,071) | (130,033) |
Net cash provided by (used in) investing activities | 392,276 | (2,378,854) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
(Decrease) increase in deposits, net | (1,083,087) | 631,290 |
Changes in short-term borrowings, net | 212,000 | 1,528,000 |
Proceeds from other long-term borrowings | 745,000 | 0 |
Repayment of other long-term borrowings | (100,000) | 0 |
Proceeds from debt issuance, net | 0 | 98,035 |
Repayment of finance lease principal | (358) | (449) |
Repurchases of common stock | 0 | (75,000) |
Dividends paid on common stock | (10,463) | (20,435) |
Net cash provided by (used in) financing activities | (236,908) | 2,161,441 |
Net increase (decrease) in cash and cash equivalents | 153,876 | (7,958) |
Cash and cash equivalents, beginning of year | 72,828 | 65,214 |
Cash and cash equivalents, end of period | 226,704 | 57,256 |
Cash paid during the period for: | ||
Interest | 153,957 | 29,289 |
Federal and state income taxes | 86 | 2,348 |
Non-cash activities: | ||
Increase in lease assets and lease liabilities | 2,538 | 4,877 |
LHFI foreclosed and transferred to OREO | 107 | 1,018 |
Loans transferred from LHFI to LHFS, net | 2,507 | 12,511 |
Ginnie Mae loans derecognized with the right to repurchase, net | 1,360 | 5,567 |
Repurchase of common stock-award shares | 316 | 1,322 |
Acquisition: | ||
Loans acquired | 21,197 | 0 |
Premises and equipment and other assets | 5,845 | 0 |
Liabilities assumed | 377,412 | 0 |
Goodwill and other intangibles | $ 22,469 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
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 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, 2022 ("2022 Annual Report on Form 10-K"), filed with the U.S. Securities and Exchange Commission ("SEC"). Branch Acquisition On February 10, 2023, the Company completed its acquisition of three branches in southern California, whereby we assumed approximately $376 million in deposits and purchased approximately $21 million in loans. The application of the acquisition method of accounting resulted in recording goodwill of $12 million and a core deposit intangible of $11 million. Goodwill Goodwill is recorded upon completion of a business combination as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill has been determined to have an indefinite useful life and is not amortized, but tested for impairment at least annually or more frequently if events and circumstances occur that indicate it is more likely than not the fair value of the reporting unit is less than its carrying value necessitating an impairment test. The Company performs its annual impairment testing on August 31 each year, or sooner if a triggering event occurs. Triggering events include, among other factors, declines in historical or projected revenue, operating income or cash flows, and sustained declines in the Company’s stock price or market capitalization, considered both in absolute terms and relative to peers. As a result of sustained decreases in the Company’s stock price and associated market value during the second quarter of 2023, the Company conducted an impairment analysis of its goodwill as of June 30, 2023. We applied an income-based valuation approach using the Company’s strategic forecast, general market growth assumptions and other market-based inputs, which determined, that goodwill was impaired as the indicated enterprise fair value of the Company was lower than the book value of equity as of the measurement date. As a result, in the second quarter of 2023, we recorded an impairment charge of our entire goodwill balance of $39.9 million as the deficit of enterprise fair value to book value of equity exceeded the amount of goodwill on the balance sheet. This was a non-cash charge to earnings and had no impact on tangible or regulatory capital, cash flows or our liquidity position. The following table presents the changes in the carrying amount of goodwill in 2023: (in thousands) Balance, December 31, 2022 $ 27,900 Additions - branch acquisition in February 2023 11,957 Goodwill impairment charge (39,857) Balance September 30, 2023 $ — Recent Accounting Developments In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 London Interbank Offered Rate ("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. In December 2022, the FASB issued ASU No. 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848," which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The adoption of these ASUs did not have a material impact on the Company’s financial position or results of operations. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326). The amendments in this ASU eliminate the accounting guidance for Troubled Debt Restructuring ("TDRs") by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower experiences financial difficulty. In addition, the amendments require that an entity disclose current period gross charge-offs by year of origination in a vintage table. We prospectively adopted the portion of ASU No. 2022-02 with respect to amendments about TDRs and related disclosure enhancements as of January 1, 2022. We prospectively adopted the vintage table disclosure requirement of ASU 2022-02 on January 1, 2023. The adoption of ASU 2022-02 did not have a material impact on the Company’s financial position or results of operations. In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. ASU 2023-02 is not expected to have a material impact on the Company’s financial position or results of operations. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 (in thousands) Amortized Gross Gross Fair AFS Mortgage backed securities ("MBS"): Residential $ 198,589 $ 48 $ (15,668) $ 182,969 Commercial 57,481 — (9,918) 47,563 Collateralized mortgage obligations ("CMOs"): Residential 526,683 — (47,127) 479,556 Commercial 65,686 — (6,934) 58,752 Municipal bonds 455,467 106 (77,275) 378,298 Corporate debt securities 45,664 — (6,696) 38,968 U.S. Treasury securities 22,746 — (3,301) 19,445 Agency debentures 67,133 — (2,030) 65,103 Total $ 1,439,449 $ 154 $ (168,949) $ 1,270,654 HTM Municipal bonds $ 2,389 $ — $ (96) $ 2,293 At December 31, 2022 (in thousands) Amortized Gross Gross Fair AFS MBS: Residential $ 207,445 $ — $ (10,183) $ 197,262 Commercial 65,411 — (9,362) 56,049 CMOs: Residential 592,449 12 (39,422) 553,039 Commercial 77,909 — (7,390) 70,519 Municipal bonds 469,346 41 (57,839) 411,548 Corporate debt securities 46,672 74 (3,801) 42,945 U.S. Treasury securities 23,005 — (3,071) 19,934 Agency debentures 27,499 8 (29) 27,478 Total $ 1,509,736 $ 135 $ (131,097) $ 1,378,774 HTM Municipal bonds $ 2,441 $ — $ (56) $ 2,385 At September 30, 2023, and December 31, 2022, the Company held $22 million and $19 million, respectively, of trading securities, consisting of US Treasury notes used as economic hedges of our single family mortgage servicing rights, which are carried at fair value and included with investment securities on the balance sheet. For the quarters ended September 30, 2023 and 2022, net losses of $0.9 million and $2.6 million on trading securities, respectively, and for the nine months ended September 30, 2023 and 2022, net losses of $1.4 million and $6.4 million on trading securities, respectively, were recorded in servicing income. MBS and CMOs represent securities issued or guaranteed 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 September 30, 2023 and December 31, 2022, substantially all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon nationally recognized statistical rating organizations where available and, where not available, based upon internal ratings. 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 September 30, 2023 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AFS MBS: Residential $ (37) $ 1,601 $ (15,631) $ 175,779 $ (15,668) $ 177,380 Commercial — 63 (9,918) 47,500 (9,918) 47,563 CMOs: Residential (581) 110,423 (46,546) 369,133 (47,127) 479,556 Commercial (12) 4,045 (6,922) 54,707 (6,934) 58,752 Municipal bonds (2,397) 30,863 (74,878) 341,014 (77,275) 371,877 Corporate debt securities (44) 9,956 (6,652) 29,012 (6,696) 38,968 U.S. Treasury securities — — (3,301) 19,445 (3,301) 19,445 Agency debentures (455) 54,078 (1,575) 11,025 (2,030) 65,103 Total $ (3,526) $ 211,029 $ (165,423) $ 1,047,615 $ (168,949) $ 1,258,644 HTM Municipal bonds $ — $ — $ (96) $ 2,293 $ (96) $ 2,293 At December 31, 2022 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AFS MBS: Residential $ (8,845) $ 191,398 $ (1,338) $ 5,763 $ (10,183) $ 197,161 Commercial (5,729) 41,416 (3,633) 14,619 (9,362) 56,035 CMOs: Residential (27,789) 498,333 (11,633) 45,689 (39,422) 544,022 Commercial (4,787) 56,671 (2,603) 13,848 (7,390) 70,519 Municipal bonds (44,513) 350,918 (13,326) 46,377 (57,839) 397,295 Corporate debt securities (3,801) 32,871 — — (3,801) 32,871 U.S. Treasury securities — — (3,071) 19,934 (3,071) 19,934 Agency debentures (29) 15,970 — — (29) 15,970 Total $ (95,493) $ 1,187,577 $ (35,604) $ 146,230 $ (131,097) $ 1,333,807 HTM Municipal bonds $ (56) $ 2,385 $ — $ — $ (56) $ 2,385 The Company has evaluated AFS securities in an unrealized loss position and has determined 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 September 30, 2023 or December 31, 2022. In addition, as of September 30, 2023 and December 31, 2022, 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 September 30, 2023 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 $ — — % $ 5,669 1.78 % $ 53,217 3.00 % $ 319,412 2.51 % $ 378,298 2.56 % Corporate debt securities 4,441 3.51 % 13,600 5.26 % 20,927 3.80 % — — % 38,968 4.25 % U.S. Treasury securities — — % 4,618 1.14 % 14,827 1.08 % — — % 19,445 1.10 % Agency debentures 18,430 4.91 % 35,648 5.13 % 7,887 2.09 % 3,138 1.95 % 65,103 4.49 % Total $ 22,871 4.64 % $ 59,535 4.48 % $ 96,858 2.82 % $ 322,550 2.50 % $ 501,814 2.85 % HTM Municipal bonds $ — — % $ 2,293 1.79 % $ — — % $ — — % $ 2,293 1.79 % At December 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 $ — — % $ 3,644 1.96 % $ 38,977 3.04 % $ 368,927 2.83 % $ 411,548 2.84 % Corporate debt securities — — % 15,342 5.13 % 27,603 4.25 % — — % 42,945 4.54 % U.S. Treasury securities — — % — — % 19,934 1.11 % — — % 19,934 1.11 % Agency debentures 10,485 4.74 % 16,993 4.94 % — — % — — % 27,478 4.86 % Total $ 10,485 4.74 % $ 35,979 4.69 % $ 86,514 2.97 % $ 368,927 2.83 % $ 501,905 3.01 % HTM Municipal bonds $ — — % $ 2,385 2.04 % $ — — % $ — — % $ 2,385 2.04 % The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security. 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 September 30, 2023 and December 31, 2022 was 3.09% and 3.08%, respectively. Sales of AFS investment securities were as follows: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Proceeds $ — $ 74,399 $ 4,693 $ 75,361 Gross gains — 1,334 3 1,405 Gross losses — (1,381) — (1,381) 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 September 30, 2023 At December 31, 2022 Federal Reserve Bank to secure borrowings $ 647,933 $ — Washington, Oregon and California to secure public deposits 10,655 212,806 Other securities pledged 1,466 2,011 Total securities pledged as collateral $ 660,054 $ 214,817 The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have little credit risk. |
LOANS AND CREDIT QUALITY
LOANS AND CREDIT QUALITY | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 At December 31, 2022 CRE Non-owner occupied CRE $ 633,083 $ 658,085 Multifamily 3,957,209 3,975,754 Construction/land development 566,289 627,663 Total 5,156,581 5,261,502 Commercial and industrial loans Owner occupied CRE 428,253 443,363 Commercial business 385,148 359,747 Total 813,401 803,110 Consumer loans Single family 1,099,644 1,009,001 Home equity and other 370,875 352,707 Total (1) 1,470,519 1,361,708 Total LHFI 7,440,501 7,426,320 Allowance for credit losses ("ACL") (40,000) (41,500) Total LHFI less ACL $ 7,400,501 $ 7,384,820 (1) Includes $1.2 million and $5.9 million at September 30, 2023 and December 31, 2022, 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 $5.7 billion and $5.2 billion at September 30, 2023 and December 31, 2022, respectively, were pledged to secure borrowings from the Federal Home Loan Bank ("FHLB") and loans totaling $528 million and $497 million at September 30, 2023 and December 31, 2022, 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 September 30, 2023, single family and multifamily loans in the state of Washington and California represented 11% and 36% of the total LHFI portfolio, respectively. At December 31, 2022, multifamily loans in the state of California represented 36% of the total LHFI portfolio. 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. As of September 30, 2023, the historical expected loss rates decreased when compared to December 31, 2022 due to product mix risk composition changes. During the third quarter of 2023, expected loss rates decreased due to product mix risk composition changes, and the qualitative factors decreased due to economic conditions performing better than expected and improved single-family collateral forecasts offset slightly by deteriorated commercial collateral conditions. As of September 30, 2023, the Bank expects improvement in commercial collateral values and deterioration in single family collateral values and economic conditions over the two-year forecast period in the markets in which it operates. 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 $1.6 million and $2.2 million at September 30, 2023 and December 31, 2022, respectively. The Bank has elected to exclude accrued interest receivable from the evaluation of the ACL. Accrued interest on LHFI was $27.7 million and $26.9 million at September 30, 2023 and December 31, 2022, 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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 41,500 $ 37,355 $ 41,500 $ 47,123 Provision for credit losses (990) 249 (290) (9,190) Net (charge-offs) recoveries (510) 2 (1,210) (327) Ending balance $ 40,000 $ 37,606 $ 40,000 $ 37,606 Allowance for unfunded commitments: Beginning balance $ 1,721 $ 2,843 $ 2,197 $ 2,404 Provision for credit losses (120) (249) (596) 190 Ending balance $ 1,601 $ 2,594 $ 1,601 $ 2,594 Provision for credit losses: Allowance for credit losses - loans $ (990) $ 249 $ (290) $ (9,190) Allowance for unfunded commitments (120) (249) (596) 190 Total $ (1,110) $ — $ (886) $ (9,000) Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows: Quarter Ended September 30, 2023 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending balance CRE Non-owner occupied CRE $ 2,242 $ — $ — $ 123 $ 2,365 Multifamily 9,695 — — 1,011 10,706 Construction/land development Multifamily construction 1,566 — — 26 1,592 CRE construction 169 — — (16) 153 Single family construction 11,067 — — (1,322) 9,745 Single family construction to permanent 1,421 — — (430) 991 Total 26,160 — — (608) 25,552 Commercial and industrial loans Owner occupied CRE 930 — — 172 1,102 Commercial business 3,837 (543) 25 282 3,601 Total 4,767 (543) 25 454 4,703 Consumer loans Single family 6,617 — 4 (838) 5,783 Home equity and other 3,956 (92) 96 2 3,962 Total 10,573 (92) 100 (836) 9,745 Total ACL $ 41,500 $ (635) $ 125 $ (990) $ 40,000 Quarter Ended September 30, 2022 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending balance CRE Non-owner occupied CRE $ 2,180 $ — $ — $ (74) $ 2,106 Multifamily 10,074 — — 1,109 11,183 Construction/land development Multifamily construction 566 — — 99 665 CRE construction 185 — — (25) 160 Single family construction 10,687 — — (1,123) 9,564 Single family construction to permanent 1,159 — — (19) 1,140 Total 24,851 — — (33) 24,818 Commercial and industrial loans Owner occupied CRE 1,092 — — (123) 969 Commercial business 3,578 (81) 25 197 3,719 Total 4,670 (81) 25 74 4,688 Consumer loans Single family 4,027 — 1 436 4,464 Home equity and other 3,807 (43) 100 (228) 3,636 Total 7,834 (43) 101 208 8,100 Total ACL $ 37,355 $ (124) $ 126 $ 249 $ 37,606 Nine Months Ended September 30, 2023 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending CRE Non-owner occupied CRE $ 2,102 $ — $ — $ 263 $ 2,365 Multifamily 10,974 — — (268) 10,706 Construction/land development Multifamily construction 998 — — 594 1,592 CRE construction 196 — — (43) 153 Single family construction 12,418 — — (2,673) 9,745 Single family construction to permanent 1,171 — — (180) 991 Total 27,859 — — (2,307) 25,552 Commercial and industrial loans Owner occupied CRE 1,030 — — 72 1,102 Commercial business 3,247 (1,342) 73 1,623 3,601 Total 4,277 (1,342) 73 1,695 4,703 Consumer loans Single family 5,610 — 21 152 5,783 Home equity and other 3,754 (232) 270 170 3,962 Total 9,364 (232) 291 322 9,745 Total ACL $ 41,500 $ (1,574) $ 364 $ (290) $ 40,000 Nine Months Ended September 30, 2022 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending CRE Non-owner occupied CRE $ 7,509 $ — $ — $ (5,403) $ 2,106 Multifamily 5,854 — — 5,329 11,183 Construction/land development Multifamily construction 507 — — 158 665 CRE construction 150 — — 10 160 Single family construction 6,411 — — 3,153 9,564 Single family construction to permanent 1,055 — — 85 1,140 Total 21,486 — — 3,332 24,818 Commercial and industrial loans Owner occupied CRE 5,006 — — (4,037) 969 Commercial business 12,273 (741) 94 (7,907) 3,719 Total 17,279 (741) 94 (11,944) 4,688 Consumer loans Single family 4,394 — 141 (71) 4,464 Home equity and other 3,964 (109) 288 (507) 3,636 Total 8,358 (109) 429 (578) 8,100 Total ACL $ 47,123 $ (850) $ 523 $ (9,190) $ 37,606 The following table presents a vintage analysis of the commercial portfolio segment by loan sub-class and risk rating or delinquency status. At September 30, 2023 (in thousands) 2023 2022 2021 2020 2019 2018 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Non-owner occupied CRE Pass $ 1,514 $ 70,440 $ 68,131 $ 41,245 $ 119,562 $ 280,125 $ 599 $ — $ 581,616 Special Mention — — — — — 34,435 — — 34,435 Substandard — — — — 16,871 — 161 — 17,032 Total 1,514 70,440 68,131 41,245 136,433 314,560 760 — 633,083 Multifamily Pass 108,330 1,815,620 1,153,149 483,726 190,380 179,339 — — 3,930,544 Special Mention — — 3,942 12,981 2,369 4,290 — — 23,582 Substandard — — — — — 3,083 — — 3,083 Total 108,330 1,815,620 1,157,091 496,707 192,749 186,712 — — 3,957,209 Multifamily construction Pass (206) 41,430 100,778 — — — — — 142,002 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total (206) 41,430 100,778 — — — — — 142,002 CRE construction Pass 7 — 14,459 — — — — — 14,466 Special Mention — — — — — — — — — Substandard — — — 3,871 — — — — 3,871 Total 7 — 14,459 3,871 — — — — 18,337 Single family construction Pass 62,297 56,402 17,502 — — 72 126,829 — 263,102 Special Mention — 4,207 — — — — — — 4,207 Substandard — — 1,050 — — — — — 1,050 Total 62,297 60,609 18,552 — — 72 126,829 — 268,359 Single family construction to permanent Current 23,201 82,282 30,299 1,809 — — — — 137,591 Past due: 30-59 days — — — — — — — — — 60-89 days — — — — — — — — — 90+ days — — — — — — — — — Total 23,201 82,282 30,299 1,809 — — — — 137,591 Owner occupied CRE Pass 10,747 69,650 40,278 41,918 66,055 143,484 1 905 373,038 Special Mention 1,891 1,487 7,963 — 2,689 34,784 — — 48,814 Substandard — — — — — 6,401 — — 6,401 Total 12,638 71,137 48,241 41,918 68,744 184,669 1 905 428,253 Commercial business Pass 29,506 47,718 33,317 38,177 18,217 27,702 152,176 1,354 348,167 Special Mention — 11,307 3,270 — 953 164 4,091 — 19,785 Substandard — — 2,324 6,996 3,475 4,067 260 74 17,196 Total 29,506 59,025 38,911 45,173 22,645 31,933 156,527 1,428 385,148 Total commercial portfolio $ 237,287 $ 2,200,543 $ 1,476,462 $ 630,723 $ 420,571 $ 717,946 $ 284,117 $ 2,333 $ 5,969,982 The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status: At September 30, 2023 (in thousands) 2023 2022 2021 2020 2019 2018 and prior Revolving Revolving-term Total CONSUMER PORTFOLIO Single family Current $ 16,110 $ 322,349 $ 304,831 $ 148,640 $ 49,434 $ 254,394 $ — $ — $ 1,095,758 Past due: 30-59 days — — — — — 525 — — 525 60-89 days — — — — — 461 — — 461 90+ days — — — — — 2,900 — — 2,900 Total 16,110 322,349 304,831 148,640 49,434 258,280 — — 1,099,644 Home equity and other Current 1,542 2,839 393 142 65 1,670 356,808 6,223 369,682 Past due: 30-59 days 3 4 4 — — — 557 26 594 60-89 days — 1 — — — — 68 73 142 90+ days — 30 — — — 25 402 — 457 Total 1,545 2,874 397 142 65 1,695 357,835 6,322 370,875 Total consumer portfolio (1) $ 17,655 $ 325,223 $ 305,228 $ 148,782 $ 49,499 $ 259,975 $ 357,835 $ 6,322 $ 1,470,519 Total LHFI $ 254,942 $ 2,525,766 $ 1,781,690 $ 779,505 $ 470,070 $ 977,921 $ 641,952 $ 8,655 $ 7,440,501 (1) Includes $1.2 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, 2022 (in thousands) 2022 2021 2020 2019 2018 2017 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Non-owner occupied CRE Pass $ 68,301 $ 68,356 $ 42,181 $ 139,760 $ 87,197 $ 242,544 $ 2,016 $ 786 $ 651,141 Special Mention — — — — 2,702 4,242 — — 6,944 Substandard — — — — — — — — — Total 68,301 68,356 42,181 139,760 89,899 246,786 2,016 786 658,085 Multifamily Pass 1,828,568 1,165,434 528,077 221,974 59,340 140,126 — — 3,943,519 Special Mention — — 4,893 19,834 — 7,508 — — 32,235 Substandard — — — — — — — — — Total 1,828,568 1,165,434 532,970 241,808 59,340 147,634 — — 3,975,754 Multifamily construction Pass 18,110 63,394 13,613 — — — — — 95,117 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 18,110 63,394 13,613 — — — — — 95,117 CRE construction Pass 341 14,348 3,960 — — 305 — — 18,954 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 341 14,348 3,960 — — 305 — — 18,954 Single family construction Pass 149,133 50,936 24,807 519 — 74 123,303 — 348,772 Special Mention — — — — — — — — — Substandard — 6,782 — — — — — — 6,782 Total 149,133 57,718 24,807 519 — 74 123,303 — 355,554 Single family construction to permanent Current 66,034 76,814 11,128 3,268 794 — — — 158,038 Past due: 30-59 days — — — — — — — — — 60-89 days — — — — — — — — — 90+ days — — — — — — — — — Total 66,034 76,814 11,128 3,268 794 — — — 158,038 Owner occupied CRE Pass 70,192 51,919 44,778 71,652 36,457 139,691 3 1,104 415,796 Special Mention — 743 — — 6,179 13,485 — — 20,407 Substandard — — — — 2,149 5,011 — — 7,160 Total 70,192 52,662 44,778 71,652 44,785 158,187 3 1,104 443,363 Commercial business Pass 65,566 42,921 45,940 18,594 13,548 18,779 130,427 2,041 337,816 Special Mention — 612 — 3,577 9 3,444 403 — 8,045 Substandard — 338 2,638 4,449 2,591 2,206 1,563 101 13,886 Total 65,566 43,871 48,578 26,620 16,148 24,429 132,393 2,142 359,747 Total commercial portfolio $ 2,266,245 $ 1,542,597 $ 722,015 $ 483,627 $ 210,966 $ 577,415 $ 257,715 $ 4,032 $ 6,064,612 The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status: At December 31, 2022 (in thousands) 2022 2021 2020 2019 2018 2017 and prior Revolving Revolving-term Total CONSUMER PORTFOLIO Single family Current $ 273,786 $ 253,937 $ 152,773 $ 49,302 $ 43,511 $ 231,277 $ — $ — $ 1,004,586 Past due: 30-59 days — — — — 340 2,113 — — 2,453 60-89 days — — — — — 258 — — 258 90+ days — — — 290 273 1,141 — — 1,704 Total 273,786 253,937 152,773 49,592 44,124 234,789 — — 1,009,001 Home equity and other Current 4,156 692 220 150 72 1,593 340,567 4,017 351,467 Past due: 30-59 days — 6 — — — 9 446 — 461 60-89 days 6 24 — — — 48 517 — 595 90+ days — — — — — 151 33 — 184 Total 4,162 722 220 150 72 1,801 341,563 4,017 352,707 Total consumer portfolio (1) $ 277,948 $ 254,659 $ 152,993 $ 49,742 $ 44,196 $ 236,590 $ 341,563 $ 4,017 $ 1,361,708 Total LHFI $ 2,544,193 $ 1,797,256 $ 875,008 $ 533,369 $ 255,162 $ 814,005 $ 599,278 $ 8,049 $ 7,426,320 (1) Includes $5.9 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 and consumer portfolio segment by loan sub-class and gross charge-offs: Nine Months Ended September 30, 2023 (in thousands) 2023 2022 2021 2020 2019 2018 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Commercial business Gross charge-offs $ — $ — $ (185) $ — $ (564) $ (543) $ — $ (50) $ (1,342) CONSUMER PORTFOLIO Home equity and other Gross charge-offs — (71) (22) — — (4) (135) — (232) Total LHFI $ — $ (71) $ (207) $ — $ (564) $ (547) $ (135) $ (50) $ (1,574) Collateral Dependent Loans The following table presents the amortized cost basis of collateral-dependent loans by loan sub-class and collateral type: At September 30, 2023 (in thousands) Land 1-4 Family Non-residential real estate Other non-real estate Total Commercial real estate loans Non-owner occupied commercial real estate $ — $ 161 $ 16,440 $ — $ 16,601 Construction/land development Commercial real estate construction — — 3,871 — 3,871 Total — 161 20,311 — 20,472 Commercial and industrial loans Owner occupied CRE — — 2,136 — 2,136 Commercial business — 2,848 6,285 2,040 11,173 Total — 2,848 8,421 2,040 13,309 Consumer loans Single family — 783 — — 783 Total — 783 — — 783 Total collateral-dependent loans $ — $ 3,792 $ 28,732 $ 2,040 $ 34,564 At December 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 $ — $ 1,410 $ — $ 2,521 Commercial business 62 3,186 562 — 3,810 Total collateral-dependent loans $ 1,173 $ 3,186 $ 1,972 $ — $ 6,331 Nonaccrual and Past Due Loans The following table presents nonaccrual status for loans: At September 30, 2023 At December 31, 2022 (in thousands) Nonaccrual with no related ACL Total Nonaccrual Nonaccrual with no related ACL Total Nonaccrual Commercial real estate loans Non-owner occupied commercial real estate $ 16,601 $ 16,601 $ — $ — Construction/land development Commercial real estate construction 3,871 3,871 — — Total 20,472 20,472 — — Commercial and industrial loans Owner occupied CRE 2,136 2,136 2,521 2,521 Commercial business 10,595 11,758 785 4,269 Total 12,731 13,894 3,306 6,790 Consumer loans Single family 783 3,437 332 2,584 Home equity and other — 962 3 681 Total 783 4,399 335 3,265 Total nonaccrual loans $ 33,986 $ 38,765 $ 3,641 $ 10,055 The following tables present an aging analysis of past due loans by loan portfolio segment and loan sub-class: At September 30, 2023 Past Due and Still Accruing (in thousands) 30-59 days 60-89 days 90 days or Nonaccrual Total past due and nonaccrual (1) Current Total CRE Non-owner occupied CRE $ — $ — $ — $ 16,601 $ 16,601 $ 616,482 $ 633,083 Multifamily — — — — — 3,957,209 3,957,209 Construction/land development Multifamily construction — — — — — 142,002 142,002 CRE construction — — — 3,871 3,871 14,466 18,337 Single family construction — — — — — 268,359 268,359 Single family construction to permanent — — — — — 137,591 137,591 Total — — — 20,472 20,472 5,136,109 5,156,581 Commercial and industrial loans Owner occupied CRE — — — 2,136 2,136 426,117 428,253 Commercial business — — — 11,758 11,758 373,390 385,148 Total — — — 13,894 13,894 799,507 813,401 Consumer loans Single family 3,562 1,476 3,337 (2) 3,437 11,812 1,087,832 1,099,644 Home equity and other 519 137 — 962 1,618 369,257 370,875 Total 4,081 1,613 3,337 4,399 13,430 1,457,089 1,470,519 (3) Total loans $ 4,081 $ 1,613 $ 3,337 $ 38,765 $ 47,796 $ 7,392,705 $ 7,440,501 % 0.06 % 0.02 % 0.04 % 0.52 % 0.64 % 99.36 % 100.00 % At December 31, 2022 Past Due and Still Accruing (in thousands) 30-59 days 60-89 days 90 days or Nonaccrual Total past due and nonaccrual (1) Current Total CRE Non-owner occupied CRE $ — $ — $ — $ — $ — $ 658,085 $ 658,085 Multifamily — — — — — 3,975,754 3,975,754 Construction/land development Multifamily construction — — — — — 95,117 95,117 CRE construction — — — — — 18,954 18,954 Single family construction — — — — — 355,554 355,554 Single family construction to permanent — — — — — 158,038 158,038 Total — — — — — 5,261,502 5,261,502 Commercial and industrial loans Owner occupied CRE — — — 2,521 2,521 440,842 443,363 Commercial business — — — 4,269 4,269 355,478 359,747 Total — — — 6,790 6,790 796,320 803,110 Consumer loans Single family 4,556 1,724 4,372 (2) 2,584 13,236 995,765 1,009,001 Home equity and other 267 296 — 681 1,244 351,463 352,707 Total 4,823 2,020 4,372 3,265 14,480 1,347,228 1,361,708 (3) Total loans $ 4,823 $ 2,020 $ 4,372 $ 10,055 $ 21,270 $ 7,405,050 $ 7,426,320 % 0.06 % 0.03 % 0.06 % 0.14 % 0.29 % 99.71 % 100.00 % (1) Includes loans whose repayments are insured by the FHA or guaranteed by the VA or Small Business Administration ("SBA") of $10.2 million and $10.6 million at September 30, 2023 and December 31, 2022, respectively. (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 $1.2 million and $5.9 million of loans at September 30, 2023 and December 31, 2022, 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. Loan Modifications The Company provides modifications to borrowers experiencing financial difficulty ("MBFD"), 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 quarters and nine months ended September 30, 2023 and 2022 did not have a material impact on the ACL. The following tables provide information related to loans modified during the quarters and nine months ended September 30, 2023 and 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted: Significant Payment Delay Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Single family $ 847 0.08 % $ 682 0.08 % $ 847 0.08 % $ 1,209 0.13 % Home equity and other — — % — — % — — % 70 0.02 % Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Commercial business $ 9,663 2.51 % — — % $ 10,396 2.70 % $ 1,570 0.43 % Single family 273 0.02 % — — % 273 0.02 % 270 0.03 % Interest Rate Reduction and Significant Payment Delay Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Commercial business $ — — % $ 477 0.13 % $ — — % $ 477 0.13 % Interest Rate Reduction and Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Single family $ — — % $ — — % $ — — % $ 819 0.09 % Significant Payment Delay and Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Non-owner occupied CRE $ 16,440 2.60 % $ — — % $ 16,440 2.60 % $ — — % Construction/land development 3,871 0.68 % — — % 3,871 0.68 % — — % Single family 1,167 0.11 % 4,033 0.44 % 2,284 0.21 % 13,325 1.47 % Home equity and other — — % — — % — — % 51 0.01 % Interest Rate Reduction, Significant Payment Delay and Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Single family $ — — % $ 294 0.03 % $ 192 0.02 % $ 7,185 0.79 % The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: Interest Rate Reduction Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Commercial business — Reduced weighted-average contractual interest rate from 5.72% to 4.00%. — Reduced weighted-average contractual interest rate from 5.72% to 4.00%. Single family — Reduced weighted-average contractual interest rate from 4.38% to 4.13%. Reduced weighted-average contractual interest rate from 5.25% to 5.00%. Reduced weighted-average contractual interest rate from 4.35% to 3.39%. Significant Payment Delay Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Non-owner occupied CRE The weighted average duration of loan payments deferred is 1.6 years. — The weighted average duration of loan payments deferred is 1.6 years. — Construction/land development The weighted average duration of loan payments deferred is 2.1 years. — The weighted average duration of loan payments deferred is 2.1 years. — Single Family Provided payment deferrals to borrowers. A weighted average 1.08% of loan balances were capitalized and added to the remaining term of the loan. Provided payment deferrals to borrowers. A weighted average 1.83% of loan balances were capitalized and added to the remaining term of the loan. Provided payment deferrals to borrowers. A weighted average 0.48% of loan balances were capitalized and added to the remaining term of the loan. Provided payment deferrals to borrowers. A weighted average 0.22% 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 3.44% of loan balances were capitalized and added to the remaining term of the loan. Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Non-owner occupied CRE Added a weighted average 1.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Added a weighted average 1.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Construction/land development Added a weighted average 2.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Added a weighted average 2.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Commercial business Added a weighted average 1.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Added a weighted average 1.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Single family Added a weighted average 3.4 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Added a weighted average 3.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Added a weighted average 4.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Added a weighted average 4.4 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. Upon determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. The following table depicts the payment status of loans that were classified as MBFDs on or after July 1, 2022 through June 30, 2023: Payment Status (Amortized Cost Basis) at September 30, 2023 (in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-owner occupied CRE $ 16,440 $ — $ — Construction/land development 3,871 — — Commercial business 14,335 — — Single family 8,090 700 518 Total $ 42,736 $ 700 $ 518 The following tables provide the amortized cost basis as of September 30, 2023 of MBFDs on or after July 1, 2022 through June 30, 2023 and subsequently had a payment default: Amortized Cost Basis of Modified Loans That Subsequently Defaulted Quarter Ended September 30, 2023 (in thousands) Significant Payment Delay Term Extension Interest Rate Reduction and Term Extension Significant Payment Delay and Term Extension Interest Rate Reduction, Significant Payment Delay and Term Extension Commercial business $ — $ 2,990 $ — $ — $ — Single family 235 — — 634 70 Amortized Cost Basis of Modified Loans That Subsequently Defaulted Nine Months Ended September 30, 2023 (in thousands) Significant Payment Delay Term Extension Interest Rate Reduction and Term Extension Significant Payment Delay and Term Extension Interest Rate Reduction, Significant Payment Delay and Term Extension Commercial business $ — $ 2,990 $ — $ — $ — Single family 235 — — 2,879 1,162 The following tables presents loans that were modified from January 1, 2022 through June 30, 2022 and subsequently had a payment default. Amortized Cost Basis of Modified Loans That Subsequently Defaulted Quarter Ended September 30, 2022 (in thousands) Significant Payment Delay Term Extension Interest Rate Reduction and Term Extension Significant Payment Delay and Term Extension Interest Rate Reduction, Significant Payment Delay and Term Extension Single family $ — $ — $ — $ — $ 553 Amortized Cost Basis of Modified Loans That Subsequently Defaulted Nine Months Ended September 30, 2022 (in thousands) Significant Payment Delay Term Extension Interest Rate Reduction and Term Extension Significant Payment Delay and Term Extension Interest Rate Reduction, Significant Payment Delay and Term Extension Single family $ — $ — $ — $ 172 $ 1,555 |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2023 | |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
DEPOSITS | DEPOSITS: Deposit balances, including their weighted average rates, were as follows: At September 30, 2023 At December 31, 2022 (dollars in thousands) Amount Weighted Average Rate Amount Weighted Average Rate Noninterest-bearing demand deposits $ 1,437,057 — % $ 1,399,912 — % Interest bearing: Interest-bearing demand deposits 352,529 0.21 % 466,490 0.10 % Savings 284,663 0.06 % 258,977 0.06 % Money market 1,723,924 1.67 % 2,383,209 1.22 % Certificates of deposit 2,947,378 4.13 % 2,943,331 3.07 % Total interest bearing deposits 5,308,494 2.82 % 6,052,007 1.98 % Total deposits $ 6,745,551 2.25 % $ 7,451,919 1.61 % Certificates of deposit outstanding mature as follows: (in thousands) September 30, 2023 Within one year $ 2,855,303 One to two years 66,263 Two to three years 13,283 Three to four years 5,160 Four to five years 7,027 Thereafter 342 Total $ 2,947,378 |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 53,602 $ 479 $ (74) Interest rate lock commitments 34,513 118 (193) Interest rate swaps 238,837 14,916 (14,916) Futures 5,100 — (2) Options 8,900 7 — Total derivatives before netting $ 340,952 15,520 (15,185) Netting adjustment/Cash collateral (1) (14,908) (245) Carrying value on consolidated balance sheet $ 612 $ (15,430) At December 31, 2022 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 51,252 $ 293 $ (151) Interest rate lock commitments 17,463 141 (36) Interest rate swaps 236,533 13,093 (13,093) Futures 23,000 18 — Options 14,000 218 — Total derivatives before netting $ 342,248 $ 13,763 $ (13,280) Netting adjustment/Cash collateral (1) (12,870) 101 Carrying value on consolidated balance sheet $ 893 $ (13,179) (1) Includes net cash collateral received of $15.2 million and $12.8 million at September 30, 2023 and December 31, 2022, respectively. The following table presents gross fair value and net carrying value information for derivative instruments: (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value At September 30, 2023 Derivative assets $ 15,520 $ (14,908) $ 612 Derivative liabilities (15,185) (245) (15,430) At December 31, 2022 Derivative assets $ 13,763 $ (12,870) $ 893 Derivative liabilities (13,280) 101 (13,179) (1) Includes net cash collateral received of $15.2 million and $12.8 million at September 30, 2023 and December 31, 2022, 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 are included in other assets. Payables related to cash collateral that has been received from counterparties are 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 September 30, 2023 and December 31, 2022, the Company had liabilities of $15.2 million and $12.8 million, respectively, in cash collateral received from counterparties and receivables of $0.02 million and $0.03 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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Recognized in noninterest income: Net gain (loss) on loan origination and sale activities (1) $ 513 $ 958 $ 780 $ 8,221 Loan servicing income (loss) (2) (247) (422) (1,475) (12,051) Other (3) 1 — — 160 (1) Comprised of forward contracts used as an economic hedge of loans held for sale and interest rate lock commitments ("IRLCs") to customers. (2) Comprised of futures, 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 and broker dealer counterparties. |
MORTGAGE BANKING OPERATIONS
MORTGAGE BANKING OPERATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Mortgage Banking [Abstract] | |
MORTGAGE BANKING OPERATIONS | MORTGAGE BANKING OPERATIONS: LHFS consisted of the following: (in thousands) At September 30, 2023 At December 31, 2022 Single family $ 23,945 $ 14,075 CRE, multifamily and SBA 9,934 3,252 Total $ 33,879 $ 17,327 Loans sold consisted of the following for the periods indicated: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Single family $ 101,575 $ 131,228 $ 257,835 $ 641,921 CRE, multifamily and SBA 2,821 29,965 16,220 129,394 Total $ 104,396 $ 161,193 $ 274,055 $ 771,315 Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Single family $ 2,267 $ 1,778 $ 6,656 $ 11,896 CRE, multifamily and SBA 105 869 582 4,317 Total $ 2,372 $ 2,647 $ 7,238 $ 16,213 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 September 30, 2023 At December 31, 2022 Single family $ 5,349,832 $ 5,436,899 CRE, multifamily and SBA 1,900,102 1,938,484 Total $ 7,249,934 $ 7,375,383 The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 1,728 $ 1,491 $ 2,232 $ 1,312 Additions, net of adjustments (1) (73) 838 (184) 1,329 Realized (losses) recoveries, net (2) (10) (370) (403) (682) Balance, end of period $ 1,645 $ 1,959 $ 1,645 $ 1,959 (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 $3.1 million and $1.6 million were recorded in other assets as of September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets totaled $5.6 million and $6.9 million, respectively. Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Servicing income, net: Servicing fees and other $ 6,405 $ 7,673 $ 19,666 $ 25,501 Amortization of single family MSRs (1) (1,564) (2,112) (4,874) (8,052) Amortization of multifamily and SBA MSRs (1,374) (1,828) (4,363) (5,877) Total 3,467 3,733 10,429 11,572 Risk management, single family MSRs: Changes in fair value of MSRs due to assumptions (2) 785 1,989 1,794 16,615 Net gain (loss) from economic hedging (1,160) (2,981) (2,833) (18,481) Total (375) (992) (1,039) (1,866) Loan servicing income $ 3,092 $ 2,741 $ 9,390 $ 9,706 (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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 76,314 $ 76,481 $ 76,617 $ 61,584 Additions and amortization: Originations 935 1,453 2,473 7,664 Purchases — — 460 — Amortization (1) (1,564) (2,112) (4,874) (8,052) Net additions and amortization (629) (659) (1,941) (388) Changes in fair value assumptions (2) 785 1,989 1,794 16,615 Ending balance $ 76,470 $ 77,811 $ 76,470 $ 77,811 (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 September 30, Nine Months Ended September 30, (rates per annum) (1) 2023 2022 2023 2022 Constant prepayment rate ("CPR") (2) 15.13 % 13.06 % 14.20 % 10.72 % Discount rate 11.70 % 10.36 % 10.83 % 9.19 % (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 September 30, 2023 At December 31, 2022 Range of Inputs Average (1) Range of Inputs Average (1) CPRs 6.20% - 25.30% 6.50 % 6.01% - 11.10% 8.19 % Discount Rates 10.00% - 17.00% 10.93 % 9.74% - 16.88% 10.66 % (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 September 30, 2023 Fair value of single family MSR $ 76,470 Expected weighted-average life (in years) 8.45 CPR Impact on fair value of 25 basis points adverse change in interest rates $ (316) Impact on fair value of 50 basis points adverse change in interest rates $ (706) Discount rate Impact on fair value of 100 basis points increase $ (1,162) Impact on fair value of 200 basis points increase $ (2,894) The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 32,477 $ 38,130 $ 35,256 $ 39,415 Originations 38 517 248 3,281 Amortization (1,374) (1,828) (4,363) (5,877) Ending balance $ 31,141 $ 36,819 $ 31,141 $ 36,819 |
GUARANTEES AND MORTGAGE REPURCH
GUARANTEES AND MORTGAGE REPURCHASE LIABILITY | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022, the total unpaid principal balance of loans sold under this program was $1.8 billion. The Company's reserve liability related to this arrangement totaled $0.5 million and $0.6 million at September 30, 2023 and December 31, 2022, respectively. There were no actual losses incurred under this arrangement during the quarters and nine months ended September 30, 2023 and 2022.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 $5.3 billion and $5.4 billion as of September 30, 2023 and December 31, 2022, respectively. At September 30, 2023 and December 31, 2022, 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 $2.2 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE: The following table summarizes the calculation of earnings per share: Quarter Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2023 2022 2023 2022 Net income (loss) $ 2,295 $ 20,367 $ (24,089) $ 58,039 Weighted average shares: Basic weighted-average number of common shares outstanding 18,792,893 18,716,864 18,774,593 19,000,007 Dilutive effect of outstanding common stock equivalents — 79,873 — 137,841 Diluted weighted-average number of common shares outstanding 18,792,893 18,796,737 18,774,593 19,137,848 Net income (loss) per share: Basic earnings per share $ 0.12 $ 1.09 $ (1.28) $ 3.05 Diluted earnings per share (1) 0.12 1.08 (1.28) 3.03 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the quarters and nine months ended September 30, 2023 and 2022 were certain unvested RSUs and PSUs. On a weighted average basis, 236,628 and 118,746 unvested stock units convertible into shares |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2023 | |
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 6 , 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. IRLC 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 September 30, 2023 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets: Trading securities - U.S. Treasury securities $ 21,591 $ 21,591 $ — $ — Investment securities AFS Mortgage backed securities: Residential 182,969 — 181,174 1,795 Commercial 47,563 — 47,563 — Collateralized mortgage obligations: Residential 479,556 — 479,556 — Commercial 58,752 — 58,752 — Municipal bonds 378,298 — 378,298 — Corporate debt securities 38,968 — 38,968 — U.S. Treasury securities 19,445 — 19,445 — Agency debentures 65,103 — 65,103 — Single family LHFS 23,945 — 23,945 — Single family LHFI 1,225 — — 1,225 Single family mortgage servicing rights 76,470 — — 76,470 Derivatives Forward sale commitments 479 — 479 — Options 7 7 — — Interest rate lock commitments 118 — — 118 Interest rate swaps 14,916 — 14,916 — Total assets $ 1,409,405 $ 21,598 $ 1,308,199 $ 79,608 Liabilities: Derivatives Futures $ 2 $ 2 $ — $ — Forward sale commitments 74 — 74 — Interest rate lock commitments 193 — — 193 Interest rate swaps 14,916 — 14,916 — Total liabilities $ 15,185 $ 2 $ 14,990 $ 193 At December 31, 2022 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets: Trading securities - U.S. Treasury securities $ 18,997 $ 18,997 $ — $ — Investment securities AFS Mortgage backed securities: Residential 197,262 — 195,321 1,941 Commercial 56,049 — 56,049 — Collateralized mortgage obligations: Residential 553,039 — 553,039 — Commercial 70,519 — 70,519 — Municipal bonds 411,548 — 411,548 — Corporate debt securities 42,945 — 42,877 68 U.S. Treasury securities 19,934 — 19,934 — Agency debentures 27,478 — 27,478 — Single family LHFS 14,075 — 14,075 — Single family LHFI 5,868 — — 5,868 Single family mortgage servicing rights 76,617 — — 76,617 Derivatives Futures 18 18 — — Options 218 218 — — Forward sale commitments 293 — 293 — Interest rate lock commitments 141 — — 141 Interest rate swaps 13,093 — 13,093 — Total assets $ 1,508,094 $ 19,233 $ 1,404,226 $ 84,635 Liabilities: Derivatives Forward sale commitments $ 151 $ — $ 151 $ — Interest rate lock commitments 36 — — 36 Interest rate swaps 13,093 — 13,093 — Total liabilities $ 13,280 $ — $ 13,244 $ 36 There were no transfers between levels of the fair value hierarchy during the quarters and nine months ended September 30, 2023 and 2022. 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 and nine months ended September 30, 2023 and 2022, see Note 6, 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 $1.2 million and $5.9 million at September 30, 2023 and December 31, 2022, 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 September 30, 2023 Investment securities AFS $ 1,795 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% Single family LHFI 1,225 Income approach Implied spread to benchmark interest rate curve 3.19% 5.64% 3.99% Interest rate lock commitments, net (75) Income approach Fall-out factor 0.40% 17.28% 8.36% Value of servicing 0.38% 1.11% 0.74% December 31, 2022 Investment securities AFS $ 2,009 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% Single family LHFI 5,868 Income approach Implied spread to benchmark interest rate curve 2.87% 5.15% 4.14% Interest rate lock commitments, net 105 Income approach Fall-out factor 0.10% 17.50% 6.43% Value of servicing 0.54% 1.11% 0.95% We had no LHFS where the fair value was not derived with significant observable inputs at September 30, 2023 and December 31, 2022. 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 September 30, 2023 Investment securities AFS $ 1,913 $ — $ — $ (48) $ (70) $ 1,795 Single family LHFI 1,269 — — — (44) 1,225 Quarter Ended September 30, 2022 Investment securities AFS $ 2,160 $ — $ — $ (48) $ (79) $ 2,033 Single family LHFI 6,508 — — — (658) 5,850 Nine Months Ended September 30, 2023 Investment securities AFS $ 2,009 $ — $ — $ (144) $ (70) $ 1,795 Single family LHFI 5,868 — — (4,607) (36) 1,225 Nine Months Ended September 30, 2022 Investment securities AFS $ 2,482 $ — $ — $ (145) $ (304) $ 2,033 Single family LHFI 7,287 — — — (1,437) 5,850 (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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Beginning balance, net $ 79 $ 322 $ 105 $ 2,484 Total realized/unrealized gains (losses) 371 70 1,484 (769) Settlements (525) (752) (1,664) (2,075) Ending balance, net $ (75) $ (360) $ (75) $ (360) 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 September 30, 2023 LHFI (1) $ 3,774 $ (579) At or for the Nine Months Ended September 30, 2023 LHFI (1) $ 3,774 $ (854) (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 September 30, 2023 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 226,704 $ 226,704 $ 226,704 $ — $ — Investment securities HTM 2,389 2,293 — 2,293 — LHFI 7,399,276 6,858,955 — — 6,858,955 LHFS – multifamily and other 9,934 9,959 — 9,959 — Mortgage servicing rights – multifamily and SBA 31,141 36,271 — — 36,271 Federal Home Loan Bank stock 59,330 59,330 — 59,330 — Other assets - GNMA EBO loans 5,558 5,558 — — 5,558 Liabilities: Certificates of deposit $ 2,947,378 $ 2,929,803 $ — $ 2,929,803 $ — Borrowings 1,873,000 1,856,840 1,856,840 Long-term debt 224,671 150,333 — 150,333 — At December 31, 2022 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 72,828 $ 72,828 $ 72,828 $ — $ — Investment securities HTM 2,441 2,385 — 2,385 — LHFI 7,378,952 6,988,363 — — 6,988,363 LHFS – multifamily and other 3,252 3,291 — 3,291 — Mortgage servicing rights – multifamily and SBA 35,256 39,792 — — 39,792 Federal Home Loan Bank stock 49,305 49,305 — 49,305 — Other assets-GNMA EBO loans 6,918 6,918 — — 6,918 Liabilities: Certificates of deposit $ 2,943,331 $ 2,910,301 $ — $ 2,910,301 $ — Borrowings 1,016,000 1,014,973 — 1,014,973 — Long-term debt 224,404 202,338 — 202,338 — 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 September 30, 2023 At December 31, 2022 (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 $ 23,945 $ 24,026 $ (81) $ 14,075 $ 13,914 $ 161 |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS: During the first nine months of 2023, the Company borrowed $745 million and repaid $100 million from the Federal Reserve Bank (“FRB”) under the Bank Term Funding Program (“BTFP”). The BTFP offers up to one year fixed-rate term borrowings that are prepayable without penalty. The balances, maturity and rate of the outstanding borrowings from the FHLB and the FRB BTFP were as follows at September 30, 2023: (dollars in thousands) Amount Weighted Average Rate Within one year $ 873,000 4.87 % One to three years 450,000 4.56 % Three through five years 550,000 4.35 % Total $ 1,873,000 4.64 % |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES:As of September 30, 2023, HomeStreet was obligated on a $146 million letter of credit to the FHLB which is being used as collateral for public fund deposits. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS:On October 26, 2023, the Board authorized a dividend of $0.10 per share, payable on November 22, 2023 to shareholders of record on November 8, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 2,295 | $ 20,367 | $ (24,089) | $ 58,039 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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 Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 London Interbank Offered Rate ("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. In December 2022, the FASB issued ASU No. 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848," which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The adoption of these ASUs did not have a material impact on the Company’s financial position or results of operations. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326). The amendments in this ASU eliminate the accounting guidance for Troubled Debt Restructuring ("TDRs") by creditors, while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower experiences financial difficulty. In addition, the amendments require that an entity disclose current period gross charge-offs by year of origination in a vintage table. We prospectively adopted the portion of ASU No. 2022-02 with respect to amendments about TDRs and related disclosure enhancements as of January 1, 2022. We prospectively adopted the vintage table disclosure requirement of ASU 2022-02 on January 1, 2023. The adoption of ASU 2022-02 did not have a material impact on the Company’s financial position or results of operations. In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. ASU 2023-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023. ASU 2023-02 is 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 6 , 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. IRLC 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. |
Goodwill and Intangible Assets | Goodwill Goodwill is recorded upon completion of a business combination as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill has been determined to have an indefinite useful life and is not amortized, but tested for impairment at least annually or more frequently if events and circumstances occur that indicate it is more likely than not the fair value of the reporting unit is less than its carrying value necessitating an impairment test. The Company performs its annual impairment testing on August 31 each year, or sooner if a triggering event occurs. Triggering events include, among other factors, declines in historical or projected revenue, operating income or cash flows, and sustained declines in the Company’s stock price or market capitalization, considered both in absolute terms and relative to peers. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Goodwill Activity | (in thousands) Balance, December 31, 2022 $ 27,900 Additions - branch acquisition in February 2023 11,957 Goodwill impairment charge (39,857) Balance September 30, 2023 $ — |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 (in thousands) Amortized Gross Gross Fair AFS Mortgage backed securities ("MBS"): Residential $ 198,589 $ 48 $ (15,668) $ 182,969 Commercial 57,481 — (9,918) 47,563 Collateralized mortgage obligations ("CMOs"): Residential 526,683 — (47,127) 479,556 Commercial 65,686 — (6,934) 58,752 Municipal bonds 455,467 106 (77,275) 378,298 Corporate debt securities 45,664 — (6,696) 38,968 U.S. Treasury securities 22,746 — (3,301) 19,445 Agency debentures 67,133 — (2,030) 65,103 Total $ 1,439,449 $ 154 $ (168,949) $ 1,270,654 HTM Municipal bonds $ 2,389 $ — $ (96) $ 2,293 At December 31, 2022 (in thousands) Amortized Gross Gross Fair AFS MBS: Residential $ 207,445 $ — $ (10,183) $ 197,262 Commercial 65,411 — (9,362) 56,049 CMOs: Residential 592,449 12 (39,422) 553,039 Commercial 77,909 — (7,390) 70,519 Municipal bonds 469,346 41 (57,839) 411,548 Corporate debt securities 46,672 74 (3,801) 42,945 U.S. Treasury securities 23,005 — (3,071) 19,934 Agency debentures 27,499 8 (29) 27,478 Total $ 1,509,736 $ 135 $ (131,097) $ 1,378,774 HTM Municipal bonds $ 2,441 $ — $ (56) $ 2,385 |
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 September 30, 2023 (in thousands) Amortized Gross Gross Fair AFS Mortgage backed securities ("MBS"): Residential $ 198,589 $ 48 $ (15,668) $ 182,969 Commercial 57,481 — (9,918) 47,563 Collateralized mortgage obligations ("CMOs"): Residential 526,683 — (47,127) 479,556 Commercial 65,686 — (6,934) 58,752 Municipal bonds 455,467 106 (77,275) 378,298 Corporate debt securities 45,664 — (6,696) 38,968 U.S. Treasury securities 22,746 — (3,301) 19,445 Agency debentures 67,133 — (2,030) 65,103 Total $ 1,439,449 $ 154 $ (168,949) $ 1,270,654 HTM Municipal bonds $ 2,389 $ — $ (96) $ 2,293 At December 31, 2022 (in thousands) Amortized Gross Gross Fair AFS MBS: Residential $ 207,445 $ — $ (10,183) $ 197,262 Commercial 65,411 — (9,362) 56,049 CMOs: Residential 592,449 12 (39,422) 553,039 Commercial 77,909 — (7,390) 70,519 Municipal bonds 469,346 41 (57,839) 411,548 Corporate debt securities 46,672 74 (3,801) 42,945 U.S. Treasury securities 23,005 — (3,071) 19,934 Agency debentures 27,499 8 (29) 27,478 Total $ 1,509,736 $ 135 $ (131,097) $ 1,378,774 HTM Municipal bonds $ 2,441 $ — $ (56) $ 2,385 |
Unrealized Gain (Loss) on Investments | 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 September 30, 2023 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AFS MBS: Residential $ (37) $ 1,601 $ (15,631) $ 175,779 $ (15,668) $ 177,380 Commercial — 63 (9,918) 47,500 (9,918) 47,563 CMOs: Residential (581) 110,423 (46,546) 369,133 (47,127) 479,556 Commercial (12) 4,045 (6,922) 54,707 (6,934) 58,752 Municipal bonds (2,397) 30,863 (74,878) 341,014 (77,275) 371,877 Corporate debt securities (44) 9,956 (6,652) 29,012 (6,696) 38,968 U.S. Treasury securities — — (3,301) 19,445 (3,301) 19,445 Agency debentures (455) 54,078 (1,575) 11,025 (2,030) 65,103 Total $ (3,526) $ 211,029 $ (165,423) $ 1,047,615 $ (168,949) $ 1,258,644 HTM Municipal bonds $ — $ — $ (96) $ 2,293 $ (96) $ 2,293 At December 31, 2022 Less than 12 months 12 months or more Total (in thousands) Gross Fair Gross Fair Gross Fair AFS MBS: Residential $ (8,845) $ 191,398 $ (1,338) $ 5,763 $ (10,183) $ 197,161 Commercial (5,729) 41,416 (3,633) 14,619 (9,362) 56,035 CMOs: Residential (27,789) 498,333 (11,633) 45,689 (39,422) 544,022 Commercial (4,787) 56,671 (2,603) 13,848 (7,390) 70,519 Municipal bonds (44,513) 350,918 (13,326) 46,377 (57,839) 397,295 Corporate debt securities (3,801) 32,871 — — (3,801) 32,871 U.S. Treasury securities — — (3,071) 19,934 (3,071) 19,934 Agency debentures (29) 15,970 — — (29) 15,970 Total $ (95,493) $ 1,187,577 $ (35,604) $ 146,230 $ (131,097) $ 1,333,807 HTM Municipal bonds $ (56) $ 2,385 $ — $ — $ (56) $ 2,385 |
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 September 30, 2023 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 $ — — % $ 5,669 1.78 % $ 53,217 3.00 % $ 319,412 2.51 % $ 378,298 2.56 % Corporate debt securities 4,441 3.51 % 13,600 5.26 % 20,927 3.80 % — — % 38,968 4.25 % U.S. Treasury securities — — % 4,618 1.14 % 14,827 1.08 % — — % 19,445 1.10 % Agency debentures 18,430 4.91 % 35,648 5.13 % 7,887 2.09 % 3,138 1.95 % 65,103 4.49 % Total $ 22,871 4.64 % $ 59,535 4.48 % $ 96,858 2.82 % $ 322,550 2.50 % $ 501,814 2.85 % HTM Municipal bonds $ — — % $ 2,293 1.79 % $ — — % $ — — % $ 2,293 1.79 % At December 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 $ — — % $ 3,644 1.96 % $ 38,977 3.04 % $ 368,927 2.83 % $ 411,548 2.84 % Corporate debt securities — — % 15,342 5.13 % 27,603 4.25 % — — % 42,945 4.54 % U.S. Treasury securities — — % — — % 19,934 1.11 % — — % 19,934 1.11 % Agency debentures 10,485 4.74 % 16,993 4.94 % — — % — — % 27,478 4.86 % Total $ 10,485 4.74 % $ 35,979 4.69 % $ 86,514 2.97 % $ 368,927 2.83 % $ 501,905 3.01 % HTM Municipal bonds $ — — % $ 2,385 2.04 % $ — — % $ — — % $ 2,385 2.04 % |
Schedule of Sales of Investment Securities | Sales of AFS investment securities were as follows: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Proceeds $ — $ 74,399 $ 4,693 $ 75,361 Gross gains — 1,334 3 1,405 Gross losses — (1,381) — (1,381) |
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 September 30, 2023 At December 31, 2022 Federal Reserve Bank to secure borrowings $ 647,933 $ — Washington, Oregon and California to secure public deposits 10,655 212,806 Other securities pledged 1,466 2,011 Total securities pledged as collateral $ 660,054 $ 214,817 |
LOANS AND CREDIT QUALITY (Table
LOANS AND CREDIT QUALITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans Held for Investment | LHFI consists of the following: (in thousands) At September 30, 2023 At December 31, 2022 CRE Non-owner occupied CRE $ 633,083 $ 658,085 Multifamily 3,957,209 3,975,754 Construction/land development 566,289 627,663 Total 5,156,581 5,261,502 Commercial and industrial loans Owner occupied CRE 428,253 443,363 Commercial business 385,148 359,747 Total 813,401 803,110 Consumer loans Single family 1,099,644 1,009,001 Home equity and other 370,875 352,707 Total (1) 1,470,519 1,361,708 Total LHFI 7,440,501 7,426,320 Allowance for credit losses ("ACL") (40,000) (41,500) Total LHFI less ACL $ 7,400,501 $ 7,384,820 |
Activity in Allowance for Credit Losses | Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 41,500 $ 37,355 $ 41,500 $ 47,123 Provision for credit losses (990) 249 (290) (9,190) Net (charge-offs) recoveries (510) 2 (1,210) (327) Ending balance $ 40,000 $ 37,606 $ 40,000 $ 37,606 Allowance for unfunded commitments: Beginning balance $ 1,721 $ 2,843 $ 2,197 $ 2,404 Provision for credit losses (120) (249) (596) 190 Ending balance $ 1,601 $ 2,594 $ 1,601 $ 2,594 Provision for credit losses: Allowance for credit losses - loans $ (990) $ 249 $ (290) $ (9,190) Allowance for unfunded commitments (120) (249) (596) 190 Total $ (1,110) $ — $ (886) $ (9,000) Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows: Quarter Ended September 30, 2023 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending balance CRE Non-owner occupied CRE $ 2,242 $ — $ — $ 123 $ 2,365 Multifamily 9,695 — — 1,011 10,706 Construction/land development Multifamily construction 1,566 — — 26 1,592 CRE construction 169 — — (16) 153 Single family construction 11,067 — — (1,322) 9,745 Single family construction to permanent 1,421 — — (430) 991 Total 26,160 — — (608) 25,552 Commercial and industrial loans Owner occupied CRE 930 — — 172 1,102 Commercial business 3,837 (543) 25 282 3,601 Total 4,767 (543) 25 454 4,703 Consumer loans Single family 6,617 — 4 (838) 5,783 Home equity and other 3,956 (92) 96 2 3,962 Total 10,573 (92) 100 (836) 9,745 Total ACL $ 41,500 $ (635) $ 125 $ (990) $ 40,000 Quarter Ended September 30, 2022 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending balance CRE Non-owner occupied CRE $ 2,180 $ — $ — $ (74) $ 2,106 Multifamily 10,074 — — 1,109 11,183 Construction/land development Multifamily construction 566 — — 99 665 CRE construction 185 — — (25) 160 Single family construction 10,687 — — (1,123) 9,564 Single family construction to permanent 1,159 — — (19) 1,140 Total 24,851 — — (33) 24,818 Commercial and industrial loans Owner occupied CRE 1,092 — — (123) 969 Commercial business 3,578 (81) 25 197 3,719 Total 4,670 (81) 25 74 4,688 Consumer loans Single family 4,027 — 1 436 4,464 Home equity and other 3,807 (43) 100 (228) 3,636 Total 7,834 (43) 101 208 8,100 Total ACL $ 37,355 $ (124) $ 126 $ 249 $ 37,606 Nine Months Ended September 30, 2023 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending CRE Non-owner occupied CRE $ 2,102 $ — $ — $ 263 $ 2,365 Multifamily 10,974 — — (268) 10,706 Construction/land development Multifamily construction 998 — — 594 1,592 CRE construction 196 — — (43) 153 Single family construction 12,418 — — (2,673) 9,745 Single family construction to permanent 1,171 — — (180) 991 Total 27,859 — — (2,307) 25,552 Commercial and industrial loans Owner occupied CRE 1,030 — — 72 1,102 Commercial business 3,247 (1,342) 73 1,623 3,601 Total 4,277 (1,342) 73 1,695 4,703 Consumer loans Single family 5,610 — 21 152 5,783 Home equity and other 3,754 (232) 270 170 3,962 Total 9,364 (232) 291 322 9,745 Total ACL $ 41,500 $ (1,574) $ 364 $ (290) $ 40,000 Nine Months Ended September 30, 2022 (in thousands) Beginning balance Charge-offs Recoveries Provision Ending CRE Non-owner occupied CRE $ 7,509 $ — $ — $ (5,403) $ 2,106 Multifamily 5,854 — — 5,329 11,183 Construction/land development Multifamily construction 507 — — 158 665 CRE construction 150 — — 10 160 Single family construction 6,411 — — 3,153 9,564 Single family construction to permanent 1,055 — — 85 1,140 Total 21,486 — — 3,332 24,818 Commercial and industrial loans Owner occupied CRE 5,006 — — (4,037) 969 Commercial business 12,273 (741) 94 (7,907) 3,719 Total 17,279 (741) 94 (11,944) 4,688 Consumer loans Single family 4,394 — 141 (71) 4,464 Home equity and other 3,964 (109) 288 (507) 3,636 Total 8,358 (109) 429 (578) 8,100 Total ACL $ 47,123 $ (850) $ 523 $ (9,190) $ 37,606 |
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 September 30, 2023 (in thousands) 2023 2022 2021 2020 2019 2018 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Non-owner occupied CRE Pass $ 1,514 $ 70,440 $ 68,131 $ 41,245 $ 119,562 $ 280,125 $ 599 $ — $ 581,616 Special Mention — — — — — 34,435 — — 34,435 Substandard — — — — 16,871 — 161 — 17,032 Total 1,514 70,440 68,131 41,245 136,433 314,560 760 — 633,083 Multifamily Pass 108,330 1,815,620 1,153,149 483,726 190,380 179,339 — — 3,930,544 Special Mention — — 3,942 12,981 2,369 4,290 — — 23,582 Substandard — — — — — 3,083 — — 3,083 Total 108,330 1,815,620 1,157,091 496,707 192,749 186,712 — — 3,957,209 Multifamily construction Pass (206) 41,430 100,778 — — — — — 142,002 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total (206) 41,430 100,778 — — — — — 142,002 CRE construction Pass 7 — 14,459 — — — — — 14,466 Special Mention — — — — — — — — — Substandard — — — 3,871 — — — — 3,871 Total 7 — 14,459 3,871 — — — — 18,337 Single family construction Pass 62,297 56,402 17,502 — — 72 126,829 — 263,102 Special Mention — 4,207 — — — — — — 4,207 Substandard — — 1,050 — — — — — 1,050 Total 62,297 60,609 18,552 — — 72 126,829 — 268,359 Single family construction to permanent Current 23,201 82,282 30,299 1,809 — — — — 137,591 Past due: 30-59 days — — — — — — — — — 60-89 days — — — — — — — — — 90+ days — — — — — — — — — Total 23,201 82,282 30,299 1,809 — — — — 137,591 Owner occupied CRE Pass 10,747 69,650 40,278 41,918 66,055 143,484 1 905 373,038 Special Mention 1,891 1,487 7,963 — 2,689 34,784 — — 48,814 Substandard — — — — — 6,401 — — 6,401 Total 12,638 71,137 48,241 41,918 68,744 184,669 1 905 428,253 Commercial business Pass 29,506 47,718 33,317 38,177 18,217 27,702 152,176 1,354 348,167 Special Mention — 11,307 3,270 — 953 164 4,091 — 19,785 Substandard — — 2,324 6,996 3,475 4,067 260 74 17,196 Total 29,506 59,025 38,911 45,173 22,645 31,933 156,527 1,428 385,148 Total commercial portfolio $ 237,287 $ 2,200,543 $ 1,476,462 $ 630,723 $ 420,571 $ 717,946 $ 284,117 $ 2,333 $ 5,969,982 The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status: At September 30, 2023 (in thousands) 2023 2022 2021 2020 2019 2018 and prior Revolving Revolving-term Total CONSUMER PORTFOLIO Single family Current $ 16,110 $ 322,349 $ 304,831 $ 148,640 $ 49,434 $ 254,394 $ — $ — $ 1,095,758 Past due: 30-59 days — — — — — 525 — — 525 60-89 days — — — — — 461 — — 461 90+ days — — — — — 2,900 — — 2,900 Total 16,110 322,349 304,831 148,640 49,434 258,280 — — 1,099,644 Home equity and other Current 1,542 2,839 393 142 65 1,670 356,808 6,223 369,682 Past due: 30-59 days 3 4 4 — — — 557 26 594 60-89 days — 1 — — — — 68 73 142 90+ days — 30 — — — 25 402 — 457 Total 1,545 2,874 397 142 65 1,695 357,835 6,322 370,875 Total consumer portfolio (1) $ 17,655 $ 325,223 $ 305,228 $ 148,782 $ 49,499 $ 259,975 $ 357,835 $ 6,322 $ 1,470,519 Total LHFI $ 254,942 $ 2,525,766 $ 1,781,690 $ 779,505 $ 470,070 $ 977,921 $ 641,952 $ 8,655 $ 7,440,501 (1) Includes $1.2 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, 2022 (in thousands) 2022 2021 2020 2019 2018 2017 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Non-owner occupied CRE Pass $ 68,301 $ 68,356 $ 42,181 $ 139,760 $ 87,197 $ 242,544 $ 2,016 $ 786 $ 651,141 Special Mention — — — — 2,702 4,242 — — 6,944 Substandard — — — — — — — — — Total 68,301 68,356 42,181 139,760 89,899 246,786 2,016 786 658,085 Multifamily Pass 1,828,568 1,165,434 528,077 221,974 59,340 140,126 — — 3,943,519 Special Mention — — 4,893 19,834 — 7,508 — — 32,235 Substandard — — — — — — — — — Total 1,828,568 1,165,434 532,970 241,808 59,340 147,634 — — 3,975,754 Multifamily construction Pass 18,110 63,394 13,613 — — — — — 95,117 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 18,110 63,394 13,613 — — — — — 95,117 CRE construction Pass 341 14,348 3,960 — — 305 — — 18,954 Special Mention — — — — — — — — — Substandard — — — — — — — — — Total 341 14,348 3,960 — — 305 — — 18,954 Single family construction Pass 149,133 50,936 24,807 519 — 74 123,303 — 348,772 Special Mention — — — — — — — — — Substandard — 6,782 — — — — — — 6,782 Total 149,133 57,718 24,807 519 — 74 123,303 — 355,554 Single family construction to permanent Current 66,034 76,814 11,128 3,268 794 — — — 158,038 Past due: 30-59 days — — — — — — — — — 60-89 days — — — — — — — — — 90+ days — — — — — — — — — Total 66,034 76,814 11,128 3,268 794 — — — 158,038 Owner occupied CRE Pass 70,192 51,919 44,778 71,652 36,457 139,691 3 1,104 415,796 Special Mention — 743 — — 6,179 13,485 — — 20,407 Substandard — — — — 2,149 5,011 — — 7,160 Total 70,192 52,662 44,778 71,652 44,785 158,187 3 1,104 443,363 Commercial business Pass 65,566 42,921 45,940 18,594 13,548 18,779 130,427 2,041 337,816 Special Mention — 612 — 3,577 9 3,444 403 — 8,045 Substandard — 338 2,638 4,449 2,591 2,206 1,563 101 13,886 Total 65,566 43,871 48,578 26,620 16,148 24,429 132,393 2,142 359,747 Total commercial portfolio $ 2,266,245 $ 1,542,597 $ 722,015 $ 483,627 $ 210,966 $ 577,415 $ 257,715 $ 4,032 $ 6,064,612 The following table presents a vintage analysis of the consumer portfolio segment by loan sub-class and delinquency status: At December 31, 2022 (in thousands) 2022 2021 2020 2019 2018 2017 and prior Revolving Revolving-term Total CONSUMER PORTFOLIO Single family Current $ 273,786 $ 253,937 $ 152,773 $ 49,302 $ 43,511 $ 231,277 $ — $ — $ 1,004,586 Past due: 30-59 days — — — — 340 2,113 — — 2,453 60-89 days — — — — — 258 — — 258 90+ days — — — 290 273 1,141 — — 1,704 Total 273,786 253,937 152,773 49,592 44,124 234,789 — — 1,009,001 Home equity and other Current 4,156 692 220 150 72 1,593 340,567 4,017 351,467 Past due: 30-59 days — 6 — — — 9 446 — 461 60-89 days 6 24 — — — 48 517 — 595 90+ days — — — — — 151 33 — 184 Total 4,162 722 220 150 72 1,801 341,563 4,017 352,707 Total consumer portfolio (1) $ 277,948 $ 254,659 $ 152,993 $ 49,742 $ 44,196 $ 236,590 $ 341,563 $ 4,017 $ 1,361,708 Total LHFI $ 2,544,193 $ 1,797,256 $ 875,008 $ 533,369 $ 255,162 $ 814,005 $ 599,278 $ 8,049 $ 7,426,320 (1) Includes $5.9 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 and consumer portfolio segment by loan sub-class and gross charge-offs: Nine Months Ended September 30, 2023 (in thousands) 2023 2022 2021 2020 2019 2018 and prior Revolving Revolving-term Total COMMERCIAL PORTFOLIO Commercial business Gross charge-offs $ — $ — $ (185) $ — $ (564) $ (543) $ — $ (50) $ (1,342) CONSUMER PORTFOLIO Home equity and other Gross charge-offs — (71) (22) — — (4) (135) — (232) Total LHFI $ — $ (71) $ (207) $ — $ (564) $ (547) $ (135) $ (50) $ (1,574) |
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 September 30, 2023 (in thousands) Land 1-4 Family Non-residential real estate Other non-real estate Total Commercial real estate loans Non-owner occupied commercial real estate $ — $ 161 $ 16,440 $ — $ 16,601 Construction/land development Commercial real estate construction — — 3,871 — 3,871 Total — 161 20,311 — 20,472 Commercial and industrial loans Owner occupied CRE — — 2,136 — 2,136 Commercial business — 2,848 6,285 2,040 11,173 Total — 2,848 8,421 2,040 13,309 Consumer loans Single family — 783 — — 783 Total — 783 — — 783 Total collateral-dependent loans $ — $ 3,792 $ 28,732 $ 2,040 $ 34,564 At December 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 $ — $ 1,410 $ — $ 2,521 Commercial business 62 3,186 562 — 3,810 Total collateral-dependent loans $ 1,173 $ 3,186 $ 1,972 $ — $ 6,331 |
Schedule of Loans on Nonaccrual with no Related Allowance for Credit Loss | The following table presents nonaccrual status for loans: At September 30, 2023 At December 31, 2022 (in thousands) Nonaccrual with no related ACL Total Nonaccrual Nonaccrual with no related ACL Total Nonaccrual Commercial real estate loans Non-owner occupied commercial real estate $ 16,601 $ 16,601 $ — $ — Construction/land development Commercial real estate construction 3,871 3,871 — — Total 20,472 20,472 — — Commercial and industrial loans Owner occupied CRE 2,136 2,136 2,521 2,521 Commercial business 10,595 11,758 785 4,269 Total 12,731 13,894 3,306 6,790 Consumer loans Single family 783 3,437 332 2,584 Home equity and other — 962 3 681 Total 783 4,399 335 3,265 Total nonaccrual loans $ 33,986 $ 38,765 $ 3,641 $ 10,055 |
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 September 30, 2023 Past Due and Still Accruing (in thousands) 30-59 days 60-89 days 90 days or Nonaccrual Total past due and nonaccrual (1) Current Total CRE Non-owner occupied CRE $ — $ — $ — $ 16,601 $ 16,601 $ 616,482 $ 633,083 Multifamily — — — — — 3,957,209 3,957,209 Construction/land development Multifamily construction — — — — — 142,002 142,002 CRE construction — — — 3,871 3,871 14,466 18,337 Single family construction — — — — — 268,359 268,359 Single family construction to permanent — — — — — 137,591 137,591 Total — — — 20,472 20,472 5,136,109 5,156,581 Commercial and industrial loans Owner occupied CRE — — — 2,136 2,136 426,117 428,253 Commercial business — — — 11,758 11,758 373,390 385,148 Total — — — 13,894 13,894 799,507 813,401 Consumer loans Single family 3,562 1,476 3,337 (2) 3,437 11,812 1,087,832 1,099,644 Home equity and other 519 137 — 962 1,618 369,257 370,875 Total 4,081 1,613 3,337 4,399 13,430 1,457,089 1,470,519 (3) Total loans $ 4,081 $ 1,613 $ 3,337 $ 38,765 $ 47,796 $ 7,392,705 $ 7,440,501 % 0.06 % 0.02 % 0.04 % 0.52 % 0.64 % 99.36 % 100.00 % At December 31, 2022 Past Due and Still Accruing (in thousands) 30-59 days 60-89 days 90 days or Nonaccrual Total past due and nonaccrual (1) Current Total CRE Non-owner occupied CRE $ — $ — $ — $ — $ — $ 658,085 $ 658,085 Multifamily — — — — — 3,975,754 3,975,754 Construction/land development Multifamily construction — — — — — 95,117 95,117 CRE construction — — — — — 18,954 18,954 Single family construction — — — — — 355,554 355,554 Single family construction to permanent — — — — — 158,038 158,038 Total — — — — — 5,261,502 5,261,502 Commercial and industrial loans Owner occupied CRE — — — 2,521 2,521 440,842 443,363 Commercial business — — — 4,269 4,269 355,478 359,747 Total — — — 6,790 6,790 796,320 803,110 Consumer loans Single family 4,556 1,724 4,372 (2) 2,584 13,236 995,765 1,009,001 Home equity and other 267 296 — 681 1,244 351,463 352,707 Total 4,823 2,020 4,372 3,265 14,480 1,347,228 1,361,708 (3) Total loans $ 4,823 $ 2,020 $ 4,372 $ 10,055 $ 21,270 $ 7,405,050 $ 7,426,320 % 0.06 % 0.03 % 0.06 % 0.14 % 0.29 % 99.71 % 100.00 % (1) Includes loans whose repayments are insured by the FHA or guaranteed by the VA or Small Business Administration ("SBA") of $10.2 million and $10.6 million at September 30, 2023 and December 31, 2022, respectively. (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 quarters and nine months ended September 30, 2023 and 2022 to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted: Significant Payment Delay Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Single family $ 847 0.08 % $ 682 0.08 % $ 847 0.08 % $ 1,209 0.13 % Home equity and other — — % — — % — — % 70 0.02 % Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Commercial business $ 9,663 2.51 % — — % $ 10,396 2.70 % $ 1,570 0.43 % Single family 273 0.02 % — — % 273 0.02 % 270 0.03 % Interest Rate Reduction and Significant Payment Delay Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Commercial business $ — — % $ 477 0.13 % $ — — % $ 477 0.13 % Interest Rate Reduction and Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Single family $ — — % $ — — % $ — — % $ 819 0.09 % Significant Payment Delay and Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Non-owner occupied CRE $ 16,440 2.60 % $ — — % $ 16,440 2.60 % $ — — % Construction/land development 3,871 0.68 % — — % 3,871 0.68 % — — % Single family 1,167 0.11 % 4,033 0.44 % 2,284 0.21 % 13,325 1.47 % Home equity and other — — % — — % — — % 51 0.01 % Interest Rate Reduction, Significant Payment Delay and Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands, except percentages) Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Amortized Cost Basis at Period End % of Total Class of Financing Receivable Single family $ — — % $ 294 0.03 % $ 192 0.02 % $ 7,185 0.79 % |
Schedule of Financial Effects of Loan Modifications | The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty: Interest Rate Reduction Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Commercial business — Reduced weighted-average contractual interest rate from 5.72% to 4.00%. — Reduced weighted-average contractual interest rate from 5.72% to 4.00%. Single family — Reduced weighted-average contractual interest rate from 4.38% to 4.13%. Reduced weighted-average contractual interest rate from 5.25% to 5.00%. Reduced weighted-average contractual interest rate from 4.35% to 3.39%. Significant Payment Delay Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Non-owner occupied CRE The weighted average duration of loan payments deferred is 1.6 years. — The weighted average duration of loan payments deferred is 1.6 years. — Construction/land development The weighted average duration of loan payments deferred is 2.1 years. — The weighted average duration of loan payments deferred is 2.1 years. — Single Family Provided payment deferrals to borrowers. A weighted average 1.08% of loan balances were capitalized and added to the remaining term of the loan. Provided payment deferrals to borrowers. A weighted average 1.83% of loan balances were capitalized and added to the remaining term of the loan. Provided payment deferrals to borrowers. A weighted average 0.48% of loan balances were capitalized and added to the remaining term of the loan. Provided payment deferrals to borrowers. A weighted average 0.22% 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 3.44% of loan balances were capitalized and added to the remaining term of the loan. Term Extension Quarter Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Non-owner occupied CRE Added a weighted average 1.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Added a weighted average 1.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Construction/land development Added a weighted average 2.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Added a weighted average 2.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Commercial business Added a weighted average 1.1 years to the life of loans, which reduced the monthly payment amounts to the borrowers. — Added a weighted average 1.2 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Added a weighted average 0.8 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Single family Added a weighted average 3.4 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Added a weighted average 3.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Added a weighted average 4.6 years to the life of loans, which reduced the monthly payment amounts to the borrowers. Added a weighted average 4.4 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. |
Schedule of Loan Modifications, Payment Status | The following table depicts the payment status of loans that were classified as MBFDs on or after July 1, 2022 through June 30, 2023: Payment Status (Amortized Cost Basis) at September 30, 2023 (in thousands) Current 30-89 Days Past Due 90+ Days Past Due Non-owner occupied CRE $ 16,440 $ — $ — Construction/land development 3,871 — — Commercial business 14,335 — — Single family 8,090 700 518 Total $ 42,736 $ 700 $ 518 |
Schedule of Loan Modifications with Subsequent Default | The following tables provide the amortized cost basis as of September 30, 2023 of MBFDs on or after July 1, 2022 through June 30, 2023 and subsequently had a payment default: Amortized Cost Basis of Modified Loans That Subsequently Defaulted Quarter Ended September 30, 2023 (in thousands) Significant Payment Delay Term Extension Interest Rate Reduction and Term Extension Significant Payment Delay and Term Extension Interest Rate Reduction, Significant Payment Delay and Term Extension Commercial business $ — $ 2,990 $ — $ — $ — Single family 235 — — 634 70 Amortized Cost Basis of Modified Loans That Subsequently Defaulted Nine Months Ended September 30, 2023 (in thousands) Significant Payment Delay Term Extension Interest Rate Reduction and Term Extension Significant Payment Delay and Term Extension Interest Rate Reduction, Significant Payment Delay and Term Extension Commercial business $ — $ 2,990 $ — $ — $ — Single family 235 — — 2,879 1,162 The following tables presents loans that were modified from January 1, 2022 through June 30, 2022 and subsequently had a payment default. Amortized Cost Basis of Modified Loans That Subsequently Defaulted Quarter Ended September 30, 2022 (in thousands) Significant Payment Delay Term Extension Interest Rate Reduction and Term Extension Significant Payment Delay and Term Extension Interest Rate Reduction, Significant Payment Delay and Term Extension Single family $ — $ — $ — $ — $ 553 Amortized Cost Basis of Modified Loans That Subsequently Defaulted Nine Months Ended September 30, 2022 (in thousands) Significant Payment Delay Term Extension Interest Rate Reduction and Term Extension Significant Payment Delay and Term Extension Interest Rate Reduction, Significant Payment Delay and Term Extension Single family $ — $ — $ — $ 172 $ 1,555 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |
Deposit Balances, Including Stated Rates | Deposit balances, including their weighted average rates, were as follows: At September 30, 2023 At December 31, 2022 (dollars in thousands) Amount Weighted Average Rate Amount Weighted Average Rate Noninterest-bearing demand deposits $ 1,437,057 — % $ 1,399,912 — % Interest bearing: Interest-bearing demand deposits 352,529 0.21 % 466,490 0.10 % Savings 284,663 0.06 % 258,977 0.06 % Money market 1,723,924 1.67 % 2,383,209 1.22 % Certificates of deposit 2,947,378 4.13 % 2,943,331 3.07 % Total interest bearing deposits 5,308,494 2.82 % 6,052,007 1.98 % Total deposits $ 6,745,551 2.25 % $ 7,451,919 1.61 % |
Certificates of Deposit Outstanding | Certificates of deposit outstanding mature as follows: (in thousands) September 30, 2023 Within one year $ 2,855,303 One to two years 66,263 Two to three years 13,283 Three to four years 5,160 Four to five years 7,027 Thereafter 342 Total $ 2,947,378 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 53,602 $ 479 $ (74) Interest rate lock commitments 34,513 118 (193) Interest rate swaps 238,837 14,916 (14,916) Futures 5,100 — (2) Options 8,900 7 — Total derivatives before netting $ 340,952 15,520 (15,185) Netting adjustment/Cash collateral (1) (14,908) (245) Carrying value on consolidated balance sheet $ 612 $ (15,430) At December 31, 2022 Notional amount Fair value derivatives (in thousands) Asset Liability Forward sale commitments $ 51,252 $ 293 $ (151) Interest rate lock commitments 17,463 141 (36) Interest rate swaps 236,533 13,093 (13,093) Futures 23,000 18 — Options 14,000 218 — Total derivatives before netting $ 342,248 $ 13,763 $ (13,280) Netting adjustment/Cash collateral (1) (12,870) 101 Carrying value on consolidated balance sheet $ 893 $ (13,179) |
Fair Value, Concentration of Risk | The following table presents gross fair value and net carrying value information for derivative instruments: (in thousands) Gross fair value Netting adjustments/ Cash collateral (1) Carrying value At September 30, 2023 Derivative assets $ 15,520 $ (14,908) $ 612 Derivative liabilities (15,185) (245) (15,430) At December 31, 2022 Derivative assets $ 13,763 $ (12,870) $ 893 Derivative liabilities (13,280) 101 (13,179) |
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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Recognized in noninterest income: Net gain (loss) on loan origination and sale activities (1) $ 513 $ 958 $ 780 $ 8,221 Loan servicing income (loss) (2) (247) (422) (1,475) (12,051) Other (3) 1 — — 160 (1) Comprised of forward contracts used as an economic hedge of loans held for sale and interest rate lock commitments ("IRLCs") to customers. (2) Comprised of futures, 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 and broker dealer counterparties. |
MORTGAGE BANKING OPERATIONS (Ta
MORTGAGE BANKING OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Mortgage Banking [Abstract] | |
Mortgage Loans on Real Estate, by Loan | LHFS consisted of the following: (in thousands) At September 30, 2023 At December 31, 2022 Single family $ 23,945 $ 14,075 CRE, multifamily and SBA 9,934 3,252 Total $ 33,879 $ 17,327 Loans sold consisted of the following for the periods indicated: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Single family $ 101,575 $ 131,228 $ 257,835 $ 641,921 CRE, multifamily and SBA 2,821 29,965 16,220 129,394 Total $ 104,396 $ 161,193 $ 274,055 $ 771,315 |
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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Single family $ 2,267 $ 1,778 $ 6,656 $ 11,896 CRE, multifamily and SBA 105 869 582 4,317 Total $ 2,372 $ 2,647 $ 7,238 $ 16,213 |
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 September 30, 2023 At December 31, 2022 Single family $ 5,349,832 $ 5,436,899 CRE, multifamily and SBA 1,900,102 1,938,484 Total $ 7,249,934 $ 7,375,383 |
Mortgage Repurchase Losses | The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses: Quarter Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Balance, beginning of period $ 1,728 $ 1,491 $ 2,232 $ 1,312 Additions, net of adjustments (1) (73) 838 (184) 1,329 Realized (losses) recoveries, net (2) (10) (370) (403) (682) Balance, end of period $ 1,645 $ 1,959 $ 1,645 $ 1,959 (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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Servicing income, net: Servicing fees and other $ 6,405 $ 7,673 $ 19,666 $ 25,501 Amortization of single family MSRs (1) (1,564) (2,112) (4,874) (8,052) Amortization of multifamily and SBA MSRs (1,374) (1,828) (4,363) (5,877) Total 3,467 3,733 10,429 11,572 Risk management, single family MSRs: Changes in fair value of MSRs due to assumptions (2) 785 1,989 1,794 16,615 Net gain (loss) from economic hedging (1,160) (2,981) (2,833) (18,481) Total (375) (992) (1,039) (1,866) Loan servicing income $ 3,092 $ 2,741 $ 9,390 $ 9,706 (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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 76,314 $ 76,481 $ 76,617 $ 61,584 Additions and amortization: Originations 935 1,453 2,473 7,664 Purchases — — 460 — Amortization (1) (1,564) (2,112) (4,874) (8,052) Net additions and amortization (629) (659) (1,941) (388) Changes in fair value assumptions (2) 785 1,989 1,794 16,615 Ending balance $ 76,470 $ 77,811 $ 76,470 $ 77,811 (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 September 30, Nine Months Ended September 30, (rates per annum) (1) 2023 2022 2023 2022 Constant prepayment rate ("CPR") (2) 15.13 % 13.06 % 14.20 % 10.72 % Discount rate 11.70 % 10.36 % 10.83 % 9.19 % (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 September 30, 2023 At December 31, 2022 Range of Inputs Average (1) Range of Inputs Average (1) CPRs 6.20% - 25.30% 6.50 % 6.01% - 11.10% 8.19 % Discount Rates 10.00% - 17.00% 10.93 % 9.74% - 16.88% 10.66 % (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 September 30, 2023 Fair value of single family MSR $ 76,470 Expected weighted-average life (in years) 8.45 CPR Impact on fair value of 25 basis points adverse change in interest rates $ (316) Impact on fair value of 50 basis points adverse change in interest rates $ (706) Discount rate Impact on fair value of 100 basis points increase $ (1,162) Impact on fair value of 200 basis points increase $ (2,894) |
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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Beginning balance $ 32,477 $ 38,130 $ 35,256 $ 39,415 Originations 38 517 248 3,281 Amortization (1,374) (1,828) (4,363) (5,877) Ending balance $ 31,141 $ 36,819 $ 31,141 $ 36,819 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the calculation of earnings per share: Quarter Ended September 30, Nine Months Ended September 30, (in thousands, except share and per share data) 2023 2022 2023 2022 Net income (loss) $ 2,295 $ 20,367 $ (24,089) $ 58,039 Weighted average shares: Basic weighted-average number of common shares outstanding 18,792,893 18,716,864 18,774,593 19,000,007 Dilutive effect of outstanding common stock equivalents — 79,873 — 137,841 Diluted weighted-average number of common shares outstanding 18,792,893 18,796,737 18,774,593 19,137,848 Net income (loss) per share: Basic earnings per share $ 0.12 $ 1.09 $ (1.28) $ 3.05 Diluted earnings per share (1) 0.12 1.08 (1.28) 3.03 (1) Excluded from the computation of diluted earnings per share (due to their antidilutive effect) for the quarters and nine months ended September 30, 2023 and 2022 were certain unvested RSUs and PSUs. On a weighted average basis, 236,628 and 118,746 unvested stock units convertible into shares |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 6 , 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. IRLC 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 September 30, 2023 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets: Trading securities - U.S. Treasury securities $ 21,591 $ 21,591 $ — $ — Investment securities AFS Mortgage backed securities: Residential 182,969 — 181,174 1,795 Commercial 47,563 — 47,563 — Collateralized mortgage obligations: Residential 479,556 — 479,556 — Commercial 58,752 — 58,752 — Municipal bonds 378,298 — 378,298 — Corporate debt securities 38,968 — 38,968 — U.S. Treasury securities 19,445 — 19,445 — Agency debentures 65,103 — 65,103 — Single family LHFS 23,945 — 23,945 — Single family LHFI 1,225 — — 1,225 Single family mortgage servicing rights 76,470 — — 76,470 Derivatives Forward sale commitments 479 — 479 — Options 7 7 — — Interest rate lock commitments 118 — — 118 Interest rate swaps 14,916 — 14,916 — Total assets $ 1,409,405 $ 21,598 $ 1,308,199 $ 79,608 Liabilities: Derivatives Futures $ 2 $ 2 $ — $ — Forward sale commitments 74 — 74 — Interest rate lock commitments 193 — — 193 Interest rate swaps 14,916 — 14,916 — Total liabilities $ 15,185 $ 2 $ 14,990 $ 193 At December 31, 2022 (in thousands) Fair Value Level 1 Level 2 Level 3 Assets: Trading securities - U.S. Treasury securities $ 18,997 $ 18,997 $ — $ — Investment securities AFS Mortgage backed securities: Residential 197,262 — 195,321 1,941 Commercial 56,049 — 56,049 — Collateralized mortgage obligations: Residential 553,039 — 553,039 — Commercial 70,519 — 70,519 — Municipal bonds 411,548 — 411,548 — Corporate debt securities 42,945 — 42,877 68 U.S. Treasury securities 19,934 — 19,934 — Agency debentures 27,478 — 27,478 — Single family LHFS 14,075 — 14,075 — Single family LHFI 5,868 — — 5,868 Single family mortgage servicing rights 76,617 — — 76,617 Derivatives Futures 18 18 — — Options 218 218 — — Forward sale commitments 293 — 293 — Interest rate lock commitments 141 — — 141 Interest rate swaps 13,093 — 13,093 — Total assets $ 1,508,094 $ 19,233 $ 1,404,226 $ 84,635 Liabilities: Derivatives Forward sale commitments $ 151 $ — $ 151 $ — Interest rate lock commitments 36 — — 36 Interest rate swaps 13,093 — 13,093 — Total liabilities $ 13,280 $ — $ 13,244 $ 36 |
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 September 30, 2023 Investment securities AFS $ 1,795 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% Single family LHFI 1,225 Income approach Implied spread to benchmark interest rate curve 3.19% 5.64% 3.99% Interest rate lock commitments, net (75) Income approach Fall-out factor 0.40% 17.28% 8.36% Value of servicing 0.38% 1.11% 0.74% December 31, 2022 Investment securities AFS $ 2,009 Income approach Implied spread to benchmark interest rate curve 2.00% 2.00% 2.00% Single family LHFI 5,868 Income approach Implied spread to benchmark interest rate curve 2.87% 5.15% 4.14% Interest rate lock commitments, net 105 Income approach Fall-out factor 0.10% 17.50% 6.43% Value of servicing 0.54% 1.11% 0.95% |
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 September 30, 2023 Investment securities AFS $ 1,913 $ — $ — $ (48) $ (70) $ 1,795 Single family LHFI 1,269 — — — (44) 1,225 Quarter Ended September 30, 2022 Investment securities AFS $ 2,160 $ — $ — $ (48) $ (79) $ 2,033 Single family LHFI 6,508 — — — (658) 5,850 Nine Months Ended September 30, 2023 Investment securities AFS $ 2,009 $ — $ — $ (144) $ (70) $ 1,795 Single family LHFI 5,868 — — (4,607) (36) 1,225 Nine Months Ended September 30, 2022 Investment securities AFS $ 2,482 $ — $ — $ (145) $ (304) $ 2,033 Single family LHFI 7,287 — — — (1,437) 5,850 (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 September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Beginning balance, net $ 79 $ 322 $ 105 $ 2,484 Total realized/unrealized gains (losses) 371 70 1,484 (769) Settlements (525) (752) (1,664) (2,075) Ending balance, net $ (75) $ (360) $ (75) $ (360) |
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 September 30, 2023 LHFI (1) $ 3,774 $ (579) At or for the Nine Months Ended September 30, 2023 LHFI (1) $ 3,774 $ (854) (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 September 30, 2023 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 226,704 $ 226,704 $ 226,704 $ — $ — Investment securities HTM 2,389 2,293 — 2,293 — LHFI 7,399,276 6,858,955 — — 6,858,955 LHFS – multifamily and other 9,934 9,959 — 9,959 — Mortgage servicing rights – multifamily and SBA 31,141 36,271 — — 36,271 Federal Home Loan Bank stock 59,330 59,330 — 59,330 — Other assets - GNMA EBO loans 5,558 5,558 — — 5,558 Liabilities: Certificates of deposit $ 2,947,378 $ 2,929,803 $ — $ 2,929,803 $ — Borrowings 1,873,000 1,856,840 1,856,840 Long-term debt 224,671 150,333 — 150,333 — At December 31, 2022 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 72,828 $ 72,828 $ 72,828 $ — $ — Investment securities HTM 2,441 2,385 — 2,385 — LHFI 7,378,952 6,988,363 — — 6,988,363 LHFS – multifamily and other 3,252 3,291 — 3,291 — Mortgage servicing rights – multifamily and SBA 35,256 39,792 — — 39,792 Federal Home Loan Bank stock 49,305 49,305 — 49,305 — Other assets-GNMA EBO loans 6,918 6,918 — — 6,918 Liabilities: Certificates of deposit $ 2,943,331 $ 2,910,301 $ — $ 2,910,301 $ — Borrowings 1,016,000 1,014,973 — 1,014,973 — Long-term debt 224,404 202,338 — 202,338 — |
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 September 30, 2023 At December 31, 2022 (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 $ 23,945 $ 24,026 $ (81) $ 14,075 $ 13,914 $ 161 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of loans from FHLB | The balances, maturity and rate of the outstanding borrowings from the FHLB and the FRB BTFP were as follows at September 30, 2023: (dollars in thousands) Amount Weighted Average Rate Within one year $ 873,000 4.87 % One to three years 450,000 4.56 % Three through five years 550,000 4.35 % Total $ 1,873,000 4.64 % |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Feb. 10, 2023 USD ($) branch | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Asset Acquisition [Line Items] | |||||||
Number of reporting segments | segment | 1 | ||||||
Goodwill | $ 0 | $ 0 | $ 27,900 | ||||
Goodwill impairment charge | $ 0 | $ 39,900 | $ 0 | $ 39,857 | $ 0 | ||
California | Three Branches Purchase | |||||||
Asset Acquisition [Line Items] | |||||||
Number of branches purchased | branch | 3 | ||||||
Deposit liabilities assumed | $ 376,000 | ||||||
Acquired receivables | 21,000 | ||||||
Goodwill | 12,000 | ||||||
Intangible assets acquired | $ 11,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Goodwill Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | |||||
Beginning balance | $ 27,900 | ||||
Additions - branch acquisition in February 2023 | 11,957 | ||||
Goodwill impairment charge | $ 0 | $ (39,900) | $ 0 | (39,857) | $ 0 |
Ending balance | $ 0 | $ 0 |
INVESTMENT SECURITIES - Unreali
INVESTMENT SECURITIES - Unrealized Gain/Loss on Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
AFS | ||
Amortized cost | $ 1,439,449 | $ 1,509,736 |
Gross unrealized gains | 154 | 135 |
Gross unrealized losses | (168,949) | (131,097) |
Fair value | 1,270,654 | 1,378,774 |
Residential mortgage-backed securities | ||
AFS | ||
Amortized cost | 198,589 | 207,445 |
Gross unrealized gains | 48 | 0 |
Gross unrealized losses | (15,668) | (10,183) |
Fair value | 182,969 | 197,262 |
Commercial mortgage-backed securities | ||
AFS | ||
Amortized cost | 57,481 | 65,411 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (9,918) | (9,362) |
Fair value | 47,563 | 56,049 |
Residential collateralized mortgage obligations | ||
AFS | ||
Amortized cost | 526,683 | 592,449 |
Gross unrealized gains | 0 | 12 |
Gross unrealized losses | (47,127) | (39,422) |
Fair value | 479,556 | 553,039 |
Commercial collateralized mortgage obligations | ||
AFS | ||
Amortized cost | 65,686 | 77,909 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (6,934) | (7,390) |
Fair value | 58,752 | 70,519 |
Municipal bonds | ||
AFS | ||
Amortized cost | 455,467 | 469,346 |
Gross unrealized gains | 106 | 41 |
Gross unrealized losses | (77,275) | (57,839) |
Fair value | 378,298 | 411,548 |
HTM | ||
Amortized cost | 2,389 | 2,441 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (96) | (56) |
Fair value | 2,293 | 2,385 |
Corporate debt securities | ||
AFS | ||
Amortized cost | 45,664 | 46,672 |
Gross unrealized gains | 0 | 74 |
Gross unrealized losses | (6,696) | (3,801) |
Fair value | 38,968 | 42,945 |
U.S. Treasury securities | ||
AFS | ||
Amortized cost | 22,746 | 23,005 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3,301) | (3,071) |
Fair value | 19,445 | 19,934 |
Agency debentures | ||
AFS | ||
Amortized cost | 67,133 | 27,499 |
Gross unrealized gains | 0 | 8 |
Gross unrealized losses | (2,030) | (29) |
Fair value | $ 65,103 | $ 27,478 |
INVESTMENT SECURITIES - Continu
INVESTMENT SECURITIES - Continuous Unrealized Loss on Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | $ (3,526) | $ (95,493) |
AFS, Less than 12 months, Fair value | 211,029 | 1,187,577 |
AFS, Twelve months or more, Gross unrealized losses | (165,423) | (35,604) |
AFS, Twelve months or more, Fair value | 1,047,615 | 146,230 |
AFS, Total, Gross unrealized losses | (168,949) | (131,097) |
AFS, Total, Fair value | 1,258,644 | 1,333,807 |
Residential mortgage-backed securities | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (37) | (8,845) |
AFS, Less than 12 months, Fair value | 1,601 | 191,398 |
AFS, Twelve months or more, Gross unrealized losses | (15,631) | (1,338) |
AFS, Twelve months or more, Fair value | 175,779 | 5,763 |
AFS, Total, Gross unrealized losses | (15,668) | (10,183) |
AFS, Total, Fair value | 177,380 | 197,161 |
Commercial mortgage-backed securities | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | 0 | (5,729) |
AFS, Less than 12 months, Fair value | 63 | 41,416 |
AFS, Twelve months or more, Gross unrealized losses | (9,918) | (3,633) |
AFS, Twelve months or more, Fair value | 47,500 | 14,619 |
AFS, Total, Gross unrealized losses | (9,918) | (9,362) |
AFS, Total, Fair value | 47,563 | 56,035 |
Residential collateralized mortgage obligations | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (581) | (27,789) |
AFS, Less than 12 months, Fair value | 110,423 | 498,333 |
AFS, Twelve months or more, Gross unrealized losses | (46,546) | (11,633) |
AFS, Twelve months or more, Fair value | 369,133 | 45,689 |
AFS, Total, Gross unrealized losses | (47,127) | (39,422) |
AFS, Total, Fair value | 479,556 | 544,022 |
Commercial collateralized mortgage obligations | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (12) | (4,787) |
AFS, Less than 12 months, Fair value | 4,045 | 56,671 |
AFS, Twelve months or more, Gross unrealized losses | (6,922) | (2,603) |
AFS, Twelve months or more, Fair value | 54,707 | 13,848 |
AFS, Total, Gross unrealized losses | (6,934) | (7,390) |
AFS, Total, Fair value | 58,752 | 70,519 |
Municipal bonds | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (2,397) | (44,513) |
AFS, Less than 12 months, Fair value | 30,863 | 350,918 |
AFS, Twelve months or more, Gross unrealized losses | (74,878) | (13,326) |
AFS, Twelve months or more, Fair value | 341,014 | 46,377 |
AFS, Total, Gross unrealized losses | (77,275) | (57,839) |
AFS, Total, Fair value | 371,877 | 397,295 |
HTM | ||
HFM, Less than 12 months, Gross unrealized losses | 0 | (56) |
HFM, Less than 12 months, Fair value | 0 | 2,385 |
HFM, 12 months or more, Gross unrealized losses | (96) | 0 |
HFM, 12 months or more, Fair value | 2,293 | 0 |
HFM, Total, Gross unrealized losses | (96) | (56) |
HTM, Total, Fair value | 2,293 | 2,385 |
Corporate debt securities | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (44) | (3,801) |
AFS, Less than 12 months, Fair value | 9,956 | 32,871 |
AFS, Twelve months or more, Gross unrealized losses | (6,652) | 0 |
AFS, Twelve months or more, Fair value | 29,012 | 0 |
AFS, Total, Gross unrealized losses | (6,696) | (3,801) |
AFS, Total, Fair value | 38,968 | 32,871 |
U.S. Treasury securities | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | 0 | 0 |
AFS, Less than 12 months, Fair value | 0 | 0 |
AFS, Twelve months or more, Gross unrealized losses | (3,301) | (3,071) |
AFS, Twelve months or more, Fair value | 19,445 | 19,934 |
AFS, Total, Gross unrealized losses | (3,301) | (3,071) |
AFS, Total, Fair value | 19,445 | 19,934 |
Agency debentures | ||
AFS | ||
AFS, Less than 12 months, Gross unrealized losses | (455) | (29) |
AFS, Less than 12 months, Fair value | 54,078 | 15,970 |
AFS, Twelve months or more, Gross unrealized losses | (1,575) | 0 |
AFS, Twelve months or more, Fair value | 11,025 | 0 |
AFS, Total, Gross unrealized losses | (2,030) | (29) |
AFS, Total, Fair value | $ 65,103 | $ 15,970 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Trading gain (losses) recorded in servicing income | $ (0.9) | $ (2.6) | $ (1.4) | $ (6.4) | |
Tax exempt interest income on available-for-sale securities | $ 2.8 | $ 3.1 | $ 8.4 | $ 8.9 | |
Mortgage Backed Securities and Collateralized Mortgage Obligations | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Weighted average yield | 3.09% | 3.09% | 3.08% | ||
US Treasury Notes Securities | Not Designated as Hedging Instrument, Economic Hedge | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Trading securities | $ 22 | $ 22 | $ 19 |
INVESTMENT SECURITIES - Weighte
INVESTMENT SECURITIES - Weighted Average Yield (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
AFS | ||
Fair value | $ 1,270,654 | $ 1,378,774 |
Total | ||
AFS | ||
Due within one year, Fair value | $ 22,871 | $ 10,485 |
Weighted Average Yield, due within one year | 4.64% | 4.74% |
Due in one through five years, Fair value | $ 59,535 | $ 35,979 |
Weighted Average Yield, due after one year through five years | 4.48% | 4.69% |
Due after five years through ten years, Fair value | $ 96,858 | $ 86,514 |
Weighted Average Yield, due after five years through ten years | 2.82% | 2.97% |
Due after 10 years, Fair value | $ 322,550 | $ 368,927 |
Weighted Average Yield, due after ten years | 2.50% | 2.83% |
Fair value | $ 501,814 | $ 501,905 |
Weighted Average Yield, Total | 2.85% | 3.01% |
Municipal bonds | ||
AFS | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0% | 0% |
Due in one through five years, Fair value | $ 5,669 | $ 3,644 |
Weighted Average Yield, due after one year through five years | 1.78% | 1.96% |
Due after five years through ten years, Fair value | $ 53,217 | $ 38,977 |
Weighted Average Yield, due after five years through ten years | 3% | 3.04% |
Due after 10 years, Fair value | $ 319,412 | $ 368,927 |
Weighted Average Yield, due after ten years | 2.51% | 2.83% |
Fair value | $ 378,298 | $ 411,548 |
Weighted Average Yield, Total | 2.56% | 2.84% |
HTM | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0% | 0% |
Due in one through five years, Fair value | $ 2,293 | $ 2,385 |
Weighted Average Yield, due after one year through five years | 1.79% | 2.04% |
Due after five years through ten years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after five years through ten years | 0% | 0% |
Due after ten years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after ten years | 0% | 0% |
Fair Value | $ 2,293 | $ 2,385 |
Weighted Average Yield, Total | 1.79% | 2.04% |
Corporate debt securities | ||
AFS | ||
Due within one year, Fair value | $ 4,441 | $ 0 |
Weighted Average Yield, due within one year | 3.51% | 0% |
Due in one through five years, Fair value | $ 13,600 | $ 15,342 |
Weighted Average Yield, due after one year through five years | 5.26% | 5.13% |
Due after five years through ten years, Fair value | $ 20,927 | $ 27,603 |
Weighted Average Yield, due after five years through ten years | 3.80% | 4.25% |
Due after 10 years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after ten years | 0% | 0% |
Fair value | $ 38,968 | $ 42,945 |
Weighted Average Yield, Total | 4.25% | 4.54% |
U.S. Treasury securities | ||
AFS | ||
Due within one year, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due within one year | 0% | 0% |
Due in one through five years, Fair value | $ 4,618 | $ 0 |
Weighted Average Yield, due after one year through five years | 1.14% | 0% |
Due after five years through ten years, Fair value | $ 14,827 | $ 19,934 |
Weighted Average Yield, due after five years through ten years | 1.08% | 1.11% |
Due after 10 years, Fair value | $ 0 | $ 0 |
Weighted Average Yield, due after ten years | 0% | 0% |
Fair value | $ 19,445 | $ 19,934 |
Weighted Average Yield, Total | 1.10% | 1.11% |
Agency debentures | ||
AFS | ||
Due within one year, Fair value | $ 18,430 | $ 10,485 |
Weighted Average Yield, due within one year | 4.91% | 4.74% |
Due in one through five years, Fair value | $ 35,648 | $ 16,993 |
Weighted Average Yield, due after one year through five years | 5.13% | 4.94% |
Due after five years through ten years, Fair value | $ 7,887 | $ 0 |
Weighted Average Yield, due after five years through ten years | 2.09% | 0% |
Due after 10 years, Fair value | $ 3,138 | $ 0 |
Weighted Average Yield, due after ten years | 1.95% | 0% |
Fair value | $ 65,103 | $ 27,478 |
Weighted Average Yield, Total | 4.49% | 4.86% |
INVESTMENT SECURITIES - Realize
INVESTMENT SECURITIES - Realized Gain/Loss on Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 0 | $ 74,399 | $ 4,693 | $ 75,361 |
Gross gains | 0 | 1,334 | 3 | 1,405 |
Gross losses | $ 0 | $ (1,381) | $ 0 | $ (1,381) |
INVESTMENT SECURITIES - Pledged
INVESTMENT SECURITIES - Pledged to Secure Borrowings and Public Deposits (Details) - Asset Pledged as Collateral without Right - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Total securities pledged as collateral | $ 660,054 | $ 214,817 |
Deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Federal Reserve Bank to secure borrowings | 647,933 | 0 |
Washington, Oregon and California to secure public deposits | 10,655 | 212,806 |
Notes Payable, Other Payables | ||
Debt Securities, Available-for-sale [Line Items] | ||
Other securities pledged | $ 1,466 | $ 2,011 |
LOANS AND CREDIT QUALITY - Narr
LOANS AND CREDIT QUALITY - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) portfolioSegment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Financing Receivable, Impaired [Line Items] | |||||
Number of portfolio segments | portfolioSegment | 2 | ||||
Loans held for investment ("LHFI") | $ 7,400,501 | $ 7,400,501 | $ 7,384,820 | ||
Allowance for unfunded commitments | 1,600 | 1,600 | 2,200 | ||
Accrued interest receivable | 27,700 | 27,700 | $ 26,900 | ||
Single family | Consumer loans | Significant Payment Delay | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loan modifications with subsequent default | 235 | $ 0 | 235 | $ 0 | |
Single family | Consumer loans | Term Extension | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loan modifications with subsequent default | 0 | 0 | 0 | 0 | |
Single family | Consumer loans | Interest Rate Reduction and Term Extension | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loan modifications with subsequent default | 0 | 0 | 0 | 0 | |
Single family | Consumer loans | Significant Payment Delay and Term Extension | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loan modifications with subsequent default | 634 | 0 | 2,879 | 172 | |
Single family | Consumer loans | Interest Rate Reduction, Significant Payment Delay and Term Extension | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loan modifications with subsequent default | $ 70 | $ 553 | $ 1,162 | $ 1,555 | |
California | Multifamily | |||||
Financing Receivable, Impaired [Line Items] | |||||
Percentage of loan portfolio | 36% | ||||
California | Single and Multifamily Residental | |||||
Financing Receivable, Impaired [Line Items] | |||||
Percentage of loan portfolio | 36% | 36% | |||
Washington | Single and Multifamily Residental | |||||
Financing Receivable, Impaired [Line Items] | |||||
Percentage of loan portfolio | 11% | 11% | |||
Federal Home Loan Bank Advances | Asset Pledged as Collateral without Right | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loans held for investment ("LHFI") | $ 5,700,000 | $ 5,700,000 | $ 5,200,000 | ||
Federal Reserve Bank Advances | Asset Pledged as Collateral without Right | |||||
Financing Receivable, Impaired [Line Items] | |||||
Loans held for investment ("LHFI") | $ 528,000 | $ 528,000 | $ 497,000 |
LOANS AND CREDIT QUALITY - Loan
LOANS AND CREDIT QUALITY - Loans Held for Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Loans held for investment | ||||||
Loans held for investment | $ 7,440,501 | $ 7,426,320 | ||||
Allowance for credit losses | (40,000) | $ (41,500) | (41,500) | $ (37,606) | $ (37,355) | $ (47,123) |
Loans held for investment less allowance for credit losses | 7,400,501 | 7,384,820 | ||||
Recurring | ||||||
Loans held for investment | ||||||
Single family LHFI | 1,225 | 5,868 | ||||
Recurring | Level 3 | ||||||
Loans held for investment | ||||||
Single family LHFI | 1,225 | 5,868 | ||||
Commercial loans | ||||||
Loans held for investment | ||||||
Loans held for investment | 5,969,982 | 6,064,612 | ||||
Commercial loans | Real Estate Sector | ||||||
Loans held for investment | ||||||
Loans held for investment | 5,156,581 | 5,261,502 | ||||
Allowance for credit losses | (25,552) | (26,160) | (27,859) | (24,818) | (24,851) | (21,486) |
Commercial loans | Commercial and Industrial Sector | ||||||
Loans held for investment | ||||||
Loans held for investment | 813,401 | 803,110 | ||||
Allowance for credit losses | (4,703) | (4,767) | (4,277) | (4,688) | (4,670) | (17,279) |
Commercial loans | Non-owner occupied CRE | ||||||
Loans held for investment | ||||||
Loans held for investment | 633,083 | 658,085 | ||||
Allowance for credit losses | (2,365) | (2,242) | (2,102) | (2,106) | (2,180) | (7,509) |
Commercial loans | Multifamily | ||||||
Loans held for investment | ||||||
Loans held for investment | 3,957,209 | 3,975,754 | ||||
Allowance for credit losses | (10,706) | (9,695) | (10,974) | (11,183) | (10,074) | (5,854) |
Commercial loans | Construction/land development | ||||||
Loans held for investment | ||||||
Loans held for investment | 566,289 | 627,663 | ||||
Commercial loans | Owner occupied CRE | ||||||
Loans held for investment | ||||||
Loans held for investment | 428,253 | 443,363 | ||||
Allowance for credit losses | (1,102) | (930) | (1,030) | (969) | (1,092) | (5,006) |
Commercial loans | Commercial business | ||||||
Loans held for investment | ||||||
Loans held for investment | 385,148 | 359,747 | ||||
Allowance for credit losses | (3,601) | (3,837) | (3,247) | (3,719) | (3,578) | (12,273) |
Consumer loans | ||||||
Loans held for investment | ||||||
Loans held for investment | 1,470,519 | 1,361,708 | ||||
Allowance for credit losses | (9,745) | (10,573) | (9,364) | (8,100) | (7,834) | (8,358) |
Consumer loans | Single family | ||||||
Loans held for investment | ||||||
Loans held for investment | 1,099,644 | 1,009,001 | ||||
Allowance for credit losses | (5,783) | (6,617) | (5,610) | (4,464) | (4,027) | (4,394) |
Consumer loans | Home equity and other | ||||||
Loans held for investment | ||||||
Loans held for investment | 370,875 | 352,707 | ||||
Allowance for credit losses | $ (3,962) | $ (3,956) | $ (3,754) | $ (3,636) | $ (3,807) | $ (3,964) |
LOANS AND CREDIT QUALITY - Allo
LOANS AND CREDIT QUALITY - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
ACL for LHFI | ||||
Beginning balance | $ 41,500 | $ 37,355 | $ 41,500 | $ 47,123 |
Provision for credit losses | (990) | 249 | (290) | (9,190) |
Net (charge-offs) recoveries | (510) | 2 | (1,210) | (327) |
Ending balance | 40,000 | 37,606 | 40,000 | 37,606 |
Allowance for unfunded commitments: | ||||
Beginning balance | 1,721 | 2,843 | 2,197 | 2,404 |
Provision for credit losses | (120) | (249) | (596) | 190 |
Ending balance | 1,601 | 2,594 | 1,601 | 2,594 |
Provision for credit losses: | ||||
Allowance for credit losses - loans | (990) | 249 | (290) | (9,190) |
Allowance for unfunded commitments | (120) | (249) | (596) | 190 |
Total | $ (1,110) | $ 0 | $ (886) | $ (9,000) |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses by loan portfolio | ||||
Beginning balance | $ 41,500 | $ 37,355 | $ 41,500 | $ 47,123 |
Charge-offs | (635) | (124) | (1,574) | (850) |
Recoveries | 125 | 126 | 364 | 523 |
Provision | (990) | 249 | (290) | (9,190) |
Ending balance | 40,000 | 37,606 | 40,000 | 37,606 |
Commercial and industrial loans | Real Estate Sector | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 26,160 | 24,851 | 27,859 | 21,486 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (608) | (33) | (2,307) | 3,332 |
Ending balance | 25,552 | 24,818 | 25,552 | 24,818 |
Commercial and industrial loans | Commercial and Industrial Sector | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 4,767 | 4,670 | 4,277 | 17,279 |
Charge-offs | (543) | (81) | (1,342) | (741) |
Recoveries | 25 | 25 | 73 | 94 |
Provision | 454 | 74 | 1,695 | (11,944) |
Ending balance | 4,703 | 4,688 | 4,703 | 4,688 |
Commercial and industrial loans | Non-owner occupied CRE | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 2,242 | 2,180 | 2,102 | 7,509 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 123 | (74) | 263 | (5,403) |
Ending balance | 2,365 | 2,106 | 2,365 | 2,106 |
Commercial and industrial loans | Multifamily | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 9,695 | 10,074 | 10,974 | 5,854 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 1,011 | 1,109 | (268) | 5,329 |
Ending balance | 10,706 | 11,183 | 10,706 | 11,183 |
Commercial and industrial loans | Multifamily construction | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 1,566 | 566 | 998 | 507 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 26 | 99 | 594 | 158 |
Ending balance | 1,592 | 665 | 1,592 | 665 |
Commercial and industrial loans | CRE construction | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 169 | 185 | 196 | 150 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (16) | (25) | (43) | 10 |
Ending balance | 153 | 160 | 153 | 160 |
Commercial and industrial loans | Single family construction | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 11,067 | 10,687 | 12,418 | 6,411 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (1,322) | (1,123) | (2,673) | 3,153 |
Ending balance | 9,745 | 9,564 | 9,745 | 9,564 |
Commercial and industrial loans | Single family construction to permanent | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 1,421 | 1,159 | 1,171 | 1,055 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | (430) | (19) | (180) | 85 |
Ending balance | 991 | 1,140 | 991 | 1,140 |
Commercial and industrial loans | Owner occupied CRE | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 930 | 1,092 | 1,030 | 5,006 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision | 172 | (123) | 72 | (4,037) |
Ending balance | 1,102 | 969 | 1,102 | 969 |
Commercial and industrial loans | Commercial business | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 3,837 | 3,578 | 3,247 | 12,273 |
Charge-offs | (543) | (81) | (1,342) | (741) |
Recoveries | 25 | 25 | 73 | 94 |
Provision | 282 | 197 | 1,623 | (7,907) |
Ending balance | 3,601 | 3,719 | 3,601 | 3,719 |
Consumer loans | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 10,573 | 7,834 | 9,364 | 8,358 |
Charge-offs | (92) | (43) | (232) | (109) |
Recoveries | 100 | 101 | 291 | 429 |
Provision | (836) | 208 | 322 | (578) |
Ending balance | 9,745 | 8,100 | 9,745 | 8,100 |
Consumer loans | Single family | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 6,617 | 4,027 | 5,610 | 4,394 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 4 | 1 | 21 | 141 |
Provision | (838) | 436 | 152 | (71) |
Ending balance | 5,783 | 4,464 | 5,783 | 4,464 |
Consumer loans | Home equity and other | ||||
Allowance for credit losses by loan portfolio | ||||
Beginning balance | 3,956 | 3,807 | 3,754 | 3,964 |
Charge-offs | (92) | (43) | (232) | (109) |
Recoveries | 96 | 100 | 270 | 288 |
Provision | 2 | (228) | 170 | (507) |
Ending balance | $ 3,962 | $ 3,636 | $ 3,962 | $ 3,636 |
LOANS AND CREDIT QUALITY - Lo_2
LOANS AND CREDIT QUALITY - Loans Credit Quality by Year and Type (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | $ 254,942 | $ 2,544,193 |
Financing receivable, year two | 2,525,766 | 1,797,256 |
Financing receivable, year three | 1,781,690 | 875,008 |
Financing receivable, year four | 779,505 | 533,369 |
Financing receivable, year five | 470,070 | 255,162 |
Financing receivable, prior to year five | 977,921 | 814,005 |
Revolving | 641,952 | 599,278 |
Revolving-term | 8,655 | 8,049 |
Total | 7,440,501 | 7,426,320 |
Recurring | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Single family LHFI | 1,225 | 5,868 |
Level 3 | Recurring | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Single family LHFI | 1,225 | 5,868 |
30-59 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 4,081 | 4,823 |
60-89 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 1,613 | 2,020 |
90+ days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Total | 3,337 | 4,372 |
Commercial loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 237,287 | 2,266,245 |
Financing receivable, year two | 2,200,543 | 1,542,597 |
Financing receivable, year three | 1,476,462 | 722,015 |
Financing receivable, year four | 630,723 | 483,627 |
Financing receivable, year five | 420,571 | 210,966 |
Financing receivable, prior to year five | 717,946 | 577,415 |
Revolving | 284,117 | 257,715 |
Revolving-term | 2,333 | 4,032 |
Total | 5,969,982 | 6,064,612 |
Commercial loans | Non-owner occupied CRE | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 1,514 | 68,301 |
Financing receivable, year two | 70,440 | 68,356 |
Financing receivable, year three | 68,131 | 42,181 |
Financing receivable, year four | 41,245 | 139,760 |
Financing receivable, year five | 136,433 | 89,899 |
Financing receivable, prior to year five | 314,560 | 246,786 |
Revolving | 760 | 2,016 |
Revolving-term | 0 | 786 |
Total | 633,083 | 658,085 |
Commercial loans | Non-owner occupied CRE | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 1,514 | 68,301 |
Financing receivable, year two | 70,440 | 68,356 |
Financing receivable, year three | 68,131 | 42,181 |
Financing receivable, year four | 41,245 | 139,760 |
Financing receivable, year five | 119,562 | 87,197 |
Financing receivable, prior to year five | 280,125 | 242,544 |
Revolving | 599 | 2,016 |
Revolving-term | 0 | 786 |
Total | 581,616 | 651,141 |
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 | 2,702 |
Financing receivable, prior to year five | 34,435 | 4,242 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 34,435 | 6,944 |
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 | 16,871 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 161 | 0 |
Revolving-term | 0 | 0 |
Total | 17,032 | 0 |
Commercial loans | Multifamily | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 108,330 | 1,828,568 |
Financing receivable, year two | 1,815,620 | 1,165,434 |
Financing receivable, year three | 1,157,091 | 532,970 |
Financing receivable, year four | 496,707 | 241,808 |
Financing receivable, year five | 192,749 | 59,340 |
Financing receivable, prior to year five | 186,712 | 147,634 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 3,957,209 | 3,975,754 |
Commercial loans | Multifamily | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 108,330 | 1,828,568 |
Financing receivable, year two | 1,815,620 | 1,165,434 |
Financing receivable, year three | 1,153,149 | 528,077 |
Financing receivable, year four | 483,726 | 221,974 |
Financing receivable, year five | 190,380 | 59,340 |
Financing receivable, prior to year five | 179,339 | 140,126 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 3,930,544 | 3,943,519 |
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 | 3,942 | 4,893 |
Financing receivable, year four | 12,981 | 19,834 |
Financing receivable, year five | 2,369 | 0 |
Financing receivable, prior to year five | 4,290 | 7,508 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 23,582 | 32,235 |
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 | 3,083 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 3,083 | 0 |
Commercial loans | Multifamily construction | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | (206) | 18,110 |
Financing receivable, year two | 41,430 | 63,394 |
Financing receivable, year three | 100,778 | 13,613 |
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 | 142,002 | 95,117 |
Commercial loans | Multifamily construction | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | (206) | 18,110 |
Financing receivable, year two | 41,430 | 63,394 |
Financing receivable, year three | 100,778 | 13,613 |
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 | 142,002 | 95,117 |
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 | 7 | 341 |
Financing receivable, year two | 0 | 14,348 |
Financing receivable, year three | 14,459 | 3,960 |
Financing receivable, year four | 3,871 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 305 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 18,337 | 18,954 |
Commercial loans | CRE construction | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 7 | 341 |
Financing receivable, year two | 0 | 14,348 |
Financing receivable, year three | 14,459 | 3,960 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 305 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 14,466 | 18,954 |
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 | 3,871 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 3,871 | 0 |
Commercial loans | Single family construction | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 62,297 | 149,133 |
Financing receivable, year two | 60,609 | 57,718 |
Financing receivable, year three | 18,552 | 24,807 |
Financing receivable, year four | 0 | 519 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 72 | 74 |
Revolving | 126,829 | 123,303 |
Revolving-term | 0 | 0 |
Total | 268,359 | 355,554 |
Commercial loans | Single family construction | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 62,297 | 149,133 |
Financing receivable, year two | 56,402 | 50,936 |
Financing receivable, year three | 17,502 | 24,807 |
Financing receivable, year four | 0 | 519 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 72 | 74 |
Revolving | 126,829 | 123,303 |
Revolving-term | 0 | 0 |
Total | 263,102 | 348,772 |
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 | 4,207 | 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 | 4,207 | 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 | 6,782 |
Financing receivable, year three | 1,050 | 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 | 1,050 | 6,782 |
Commercial loans | Single family construction to permanent | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 23,201 | 66,034 |
Financing receivable, year two | 82,282 | 76,814 |
Financing receivable, year three | 30,299 | 11,128 |
Financing receivable, year four | 1,809 | 3,268 |
Financing receivable, year five | 0 | 794 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 137,591 | 158,038 |
Commercial loans | Single family construction to permanent | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 23,201 | 66,034 |
Financing receivable, year two | 82,282 | 76,814 |
Financing receivable, year three | 30,299 | 11,128 |
Financing receivable, year four | 1,809 | 3,268 |
Financing receivable, year five | 0 | 794 |
Financing receivable, prior to year five | 0 | 0 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 137,591 | 158,038 |
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 | 12,638 | 70,192 |
Financing receivable, year two | 71,137 | 52,662 |
Financing receivable, year three | 48,241 | 44,778 |
Financing receivable, year four | 41,918 | 71,652 |
Financing receivable, year five | 68,744 | 44,785 |
Financing receivable, prior to year five | 184,669 | 158,187 |
Revolving | 1 | 3 |
Revolving-term | 905 | 1,104 |
Total | 428,253 | 443,363 |
Commercial loans | Owner occupied CRE | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 10,747 | 70,192 |
Financing receivable, year two | 69,650 | 51,919 |
Financing receivable, year three | 40,278 | 44,778 |
Financing receivable, year four | 41,918 | 71,652 |
Financing receivable, year five | 66,055 | 36,457 |
Financing receivable, prior to year five | 143,484 | 139,691 |
Revolving | 1 | 3 |
Revolving-term | 905 | 1,104 |
Total | 373,038 | 415,796 |
Commercial loans | Owner occupied CRE | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 1,891 | 0 |
Financing receivable, year two | 1,487 | 743 |
Financing receivable, year three | 7,963 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 2,689 | 6,179 |
Financing receivable, prior to year five | 34,784 | 13,485 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 48,814 | 20,407 |
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 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 2,149 |
Financing receivable, prior to year five | 6,401 | 5,011 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 6,401 | 7,160 |
Commercial loans | Commercial business | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 29,506 | 65,566 |
Financing receivable, year two | 59,025 | 43,871 |
Financing receivable, year three | 38,911 | 48,578 |
Financing receivable, year four | 45,173 | 26,620 |
Financing receivable, year five | 22,645 | 16,148 |
Financing receivable, prior to year five | 31,933 | 24,429 |
Revolving | 156,527 | 132,393 |
Revolving-term | 1,428 | 2,142 |
Total | 385,148 | 359,747 |
Commercial loans | Commercial business | Pass | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 29,506 | 65,566 |
Financing receivable, year two | 47,718 | 42,921 |
Financing receivable, year three | 33,317 | 45,940 |
Financing receivable, year four | 38,177 | 18,594 |
Financing receivable, year five | 18,217 | 13,548 |
Financing receivable, prior to year five | 27,702 | 18,779 |
Revolving | 152,176 | 130,427 |
Revolving-term | 1,354 | 2,041 |
Total | 348,167 | 337,816 |
Commercial loans | Commercial business | Special Mention | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 11,307 | 612 |
Financing receivable, year three | 3,270 | 0 |
Financing receivable, year four | 0 | 3,577 |
Financing receivable, year five | 953 | 9 |
Financing receivable, prior to year five | 164 | 3,444 |
Revolving | 4,091 | 403 |
Revolving-term | 0 | 0 |
Total | 19,785 | 8,045 |
Commercial loans | Commercial business | Substandard | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 0 | 338 |
Financing receivable, year three | 2,324 | 2,638 |
Financing receivable, year four | 6,996 | 4,449 |
Financing receivable, year five | 3,475 | 2,591 |
Financing receivable, prior to year five | 4,067 | 2,206 |
Revolving | 260 | 1,563 |
Revolving-term | 74 | 101 |
Total | 17,196 | 13,886 |
Consumer loans | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 17,655 | 277,948 |
Financing receivable, year two | 325,223 | 254,659 |
Financing receivable, year three | 305,228 | 152,993 |
Financing receivable, year four | 148,782 | 49,742 |
Financing receivable, year five | 49,499 | 44,196 |
Financing receivable, prior to year five | 259,975 | 236,590 |
Revolving | 357,835 | 341,563 |
Revolving-term | 6,322 | 4,017 |
Total | 1,470,519 | 1,361,708 |
Consumer loans | Single family | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 16,110 | 273,786 |
Financing receivable, year two | 322,349 | 253,937 |
Financing receivable, year three | 304,831 | 152,773 |
Financing receivable, year four | 148,640 | 49,592 |
Financing receivable, year five | 49,434 | 44,124 |
Financing receivable, prior to year five | 258,280 | 234,789 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 1,099,644 | 1,009,001 |
Consumer loans | Single family | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 16,110 | 273,786 |
Financing receivable, year two | 322,349 | 253,937 |
Financing receivable, year three | 304,831 | 152,773 |
Financing receivable, year four | 148,640 | 49,302 |
Financing receivable, year five | 49,434 | 43,511 |
Financing receivable, prior to year five | 254,394 | 231,277 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 1,095,758 | 1,004,586 |
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 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 340 |
Financing receivable, prior to year five | 525 | 2,113 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 525 | 2,453 |
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 | 0 |
Financing receivable, prior to year five | 461 | 258 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 461 | 258 |
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 | 0 |
Financing receivable, year four | 0 | 290 |
Financing receivable, year five | 0 | 273 |
Financing receivable, prior to year five | 2,900 | 1,141 |
Revolving | 0 | 0 |
Revolving-term | 0 | 0 |
Total | 2,900 | 1,704 |
Consumer loans | Home equity and other | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 1,545 | 4,162 |
Financing receivable, year two | 2,874 | 722 |
Financing receivable, year three | 397 | 220 |
Financing receivable, year four | 142 | 150 |
Financing receivable, year five | 65 | 72 |
Financing receivable, prior to year five | 1,695 | 1,801 |
Revolving | 357,835 | 341,563 |
Revolving-term | 6,322 | 4,017 |
Total | 370,875 | 352,707 |
Consumer loans | Home equity and other | Current | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 1,542 | 4,156 |
Financing receivable, year two | 2,839 | 692 |
Financing receivable, year three | 393 | 220 |
Financing receivable, year four | 142 | 150 |
Financing receivable, year five | 65 | 72 |
Financing receivable, prior to year five | 1,670 | 1,593 |
Revolving | 356,808 | 340,567 |
Revolving-term | 6,223 | 4,017 |
Total | 369,682 | 351,467 |
Consumer loans | Home equity and other | 30-59 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 3 | 0 |
Financing receivable, year two | 4 | 6 |
Financing receivable, year three | 4 | 0 |
Financing receivable, year four | 0 | 0 |
Financing receivable, year five | 0 | 0 |
Financing receivable, prior to year five | 0 | 9 |
Revolving | 557 | 446 |
Revolving-term | 26 | 0 |
Total | 594 | 461 |
Consumer loans | Home equity and other | 60-89 days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 6 |
Financing receivable, year two | 1 | 24 |
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 | 48 |
Revolving | 68 | 517 |
Revolving-term | 73 | 0 |
Total | 142 | 595 |
Consumer loans | Home equity and other | 90+ days | ||
Financing Receivable, before Allowance for Credit Loss [Abstract] | ||
Financing receivable, year one | 0 | 0 |
Financing receivable, year two | 30 | 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 | 25 | 151 |
Revolving | 402 | 33 |
Revolving-term | 0 | 0 |
Total | $ 457 | $ 184 |
LOANS AND CREDIT QUALITY - Gros
LOANS AND CREDIT QUALITY - Gross Charge-offs by Year and Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing receivable, year one, Gross charge-offs | $ 0 | |||
Financing receivable, year two, Gross charge-offs | (71) | |||
Financing receivable, year three, Gross charge-offs | (207) | |||
Financing receivable, year four, Gross charge-offs | 0 | |||
Financing receivable, year five, Gross charge-offs | (564) | |||
Financing receivable, prior to year five, Gross charge-offs | (547) | |||
Revolving | (135) | |||
Revolving-term | (50) | |||
Charge-offs | $ (635) | $ (124) | (1,574) | $ (850) |
Commercial loans | Commercial business | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing receivable, year one, Gross charge-offs | 0 | |||
Financing receivable, year two, Gross charge-offs | 0 | |||
Financing receivable, year three, Gross charge-offs | (185) | |||
Financing receivable, year four, Gross charge-offs | 0 | |||
Financing receivable, year five, Gross charge-offs | (564) | |||
Financing receivable, prior to year five, Gross charge-offs | (543) | |||
Revolving | 0 | |||
Revolving-term | (50) | |||
Charge-offs | (543) | (81) | (1,342) | (741) |
Consumer loans | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Charge-offs | (92) | (43) | (232) | (109) |
Consumer loans | Home equity and other | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing receivable, year one, Gross charge-offs | 0 | |||
Financing receivable, year two, Gross charge-offs | (71) | |||
Financing receivable, year three, Gross charge-offs | (22) | |||
Financing receivable, year four, Gross charge-offs | 0 | |||
Financing receivable, year five, Gross charge-offs | 0 | |||
Financing receivable, prior to year five, Gross charge-offs | (4) | |||
Revolving | (135) | |||
Revolving-term | 0 | |||
Charge-offs | $ (92) | $ (43) | $ (232) | $ (109) |
LOANS AND CREDIT QUALITY - Coll
LOANS AND CREDIT QUALITY - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | $ 7,440,501 | $ 7,426,320 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 5,969,982 | 6,064,612 |
Commercial and industrial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 813,401 | 803,110 |
Commercial and industrial loans | Non-owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 633,083 | 658,085 |
Commercial and industrial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 428,253 | 443,363 |
Commercial and industrial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 385,148 | 359,747 |
Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,470,519 | 1,361,708 |
Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,099,644 | 1,009,001 |
Total | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 34,564 | |
Total | Commercial real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 20,472 | |
Total | Commercial real estate loans | Non-owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 16,601 | |
Total | Commercial real estate loans | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 3,871 | |
Total | Commercial and industrial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 13,309 | 6,331 |
Total | Commercial and industrial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,136 | 2,521 |
Total | Commercial and industrial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 11,173 | 3,810 |
Total | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 783 | |
Total | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 783 | |
Land | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Land | Commercial real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Land | Commercial real estate loans | Non-owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Land | Commercial real estate loans | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Land | Commercial and industrial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 1,173 |
Land | Commercial and industrial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 1,111 |
Land | Commercial and industrial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 62 |
Land | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Land | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
1-4 Family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 3,792 | |
1-4 Family | Commercial real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 161 | |
1-4 Family | Commercial real estate loans | Non-owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 161 | |
1-4 Family | Commercial real estate loans | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
1-4 Family | Commercial and industrial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,848 | 3,186 |
1-4 Family | Commercial and industrial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
1-4 Family | Commercial and industrial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,848 | 3,186 |
1-4 Family | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 783 | |
1-4 Family | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 783 | |
Non-residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 28,732 | |
Non-residential real estate | Commercial real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 20,311 | |
Non-residential real estate | Commercial real estate loans | Non-owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 16,440 | |
Non-residential real estate | Commercial real estate loans | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 3,871 | |
Non-residential real estate | Commercial and industrial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 8,421 | 1,972 |
Non-residential real estate | Commercial and industrial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,136 | 1,410 |
Non-residential real estate | Commercial and industrial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 6,285 | 562 |
Non-residential real estate | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Non-residential real estate | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Other non-real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,040 | |
Other non-real estate | Commercial real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Other non-real estate | Commercial real estate loans | Non-owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Other non-real estate | Commercial real estate loans | Commercial real estate construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Other non-real estate | Commercial and industrial loans | Commercial and Industrial Sector | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,040 | 0 |
Other non-real estate | Commercial and industrial loans | Owner occupied CRE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Other non-real estate | Commercial and industrial loans | Commercial business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,040 | $ 0 |
Other non-real estate | Consumer loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | |
Other non-real estate | Consumer loans | Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | $ 0 |
LOANS AND CREDIT QUALITY - Lo_3
LOANS AND CREDIT QUALITY - Loans on Nonaccrual with No Related Allowance (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | $ 33,986 | $ 3,641 |
Total Nonaccrual | 38,765 | 10,055 |
Commercial real estate loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 20,472 | 0 |
Total Nonaccrual | 20,472 | 0 |
Commercial real estate loans | Non-owner occupied CRE | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 16,601 | 0 |
Total Nonaccrual | 16,601 | 0 |
Commercial real estate loans | CRE construction | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 3,871 | 0 |
Total Nonaccrual | 3,871 | 0 |
Commercial and industrial loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 12,731 | 3,306 |
Total Nonaccrual | 13,894 | 6,790 |
Commercial and industrial loans | Owner occupied CRE | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 2,136 | 2,521 |
Total Nonaccrual | 2,136 | 2,521 |
Commercial and industrial loans | Commercial business | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 10,595 | 785 |
Total Nonaccrual | 11,758 | 4,269 |
Consumer loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 783 | 335 |
Total Nonaccrual | 4,399 | 3,265 |
Consumer loans | Single family | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 783 | 332 |
Total Nonaccrual | 3,437 | 2,584 |
Consumer loans | Home equity and other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Nonaccrual with no related ACL | 0 | 3 |
Total Nonaccrual | $ 962 | $ 681 |
LOANS AND CREDIT QUALITY - Agin
LOANS AND CREDIT QUALITY - Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 7,440,501 | $ 7,426,320 |
Nonaccrual | 38,765 | 10,055 |
Total past due and nonaccrual | $ 47,796 | $ 21,270 |
Nonaccrual, percent of total loans | 0.52% | 0.14% |
Past due and nonaccrual, percent of total loans | 0.64% | 0.29% |
Percent of total loans | 100% | 100% |
Federal Housing Administration, Veteran Affairs, or Small Business Administration | ||
Financing Receivable, Past Due [Line Items] | ||
Total past due and nonaccrual | $ 10,200 | $ 10,600 |
Recurring | ||
Financing Receivable, Past Due [Line Items] | ||
Single family LHFI | 1,225 | 5,868 |
Level 3 | Recurring | ||
Financing Receivable, Past Due [Line Items] | ||
Single family LHFI | 1,225 | 5,868 |
30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 4,081 | $ 4,823 |
Past due, percent of total loans | 0.06% | 0.06% |
60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 1,613 | $ 2,020 |
Past due, percent of total loans | 0.02% | 0.03% |
90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 3,337 | $ 4,372 |
Past due, percent of total loans | 0.04% | 0.06% |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 7,392,705 | $ 7,405,050 |
Not past due, percent of total loans | 99.36% | 99.71% |
Commercial loans, adjusted for credit analysis | Real Estate Sector | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | $ 5,156,581 | $ 5,261,502 |
Nonaccrual | 20,472 | 0 |
Total past due and nonaccrual | 20,472 | 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 | 5,136,109 | 5,261,502 |
Commercial loans, adjusted for credit analysis | Commercial and Industrial Sector | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 813,401 | 803,110 |
Nonaccrual | 13,894 | 6,790 |
Total past due and nonaccrual | 13,894 | 6,790 |
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 | 0 |
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 | 799,507 | 796,320 |
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 633,083 | 658,085 |
Nonaccrual | 0 | |
Total past due and nonaccrual | 16,601 | 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 | 616,482 | 658,085 |
Commercial loans, adjusted for credit analysis | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 3,957,209 | 3,975,754 |
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 | 3,957,209 | 3,975,754 |
Commercial loans, adjusted for credit analysis | Multifamily construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 142,002 | 95,117 |
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 | 142,002 | 95,117 |
Commercial loans, adjusted for credit analysis | CRE construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 18,337 | 18,954 |
Nonaccrual | 0 | |
Total past due and nonaccrual | 3,871 | 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 | 14,466 | 18,954 |
Commercial loans, adjusted for credit analysis | Single family construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 268,359 | 355,554 |
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 | 268,359 | 355,554 |
Commercial loans, adjusted for credit analysis | Single family construction to permanent | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 137,591 | 158,038 |
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 | 137,591 | 158,038 |
Commercial loans, adjusted for credit analysis | Owner occupied CRE | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 428,253 | 443,363 |
Nonaccrual | 2,521 | |
Total past due and nonaccrual | 2,136 | 2,521 |
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 | 426,117 | 440,842 |
Commercial loans, adjusted for credit analysis | Commercial business | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 385,148 | 359,747 |
Nonaccrual | 4,269 | |
Total past due and nonaccrual | 11,758 | 4,269 |
Commercial loans, adjusted for credit analysis | Commercial business | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 0 | 0 |
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 | 373,390 | 355,478 |
Consumer portfolio segment, adjusted for credit analysis | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,470,519 | 1,361,708 |
Nonaccrual | 4,399 | 3,265 |
Total past due and nonaccrual | 13,430 | 14,480 |
Consumer portfolio segment, adjusted for credit analysis | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 4,081 | 4,823 |
Consumer portfolio segment, adjusted for credit analysis | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,613 | 2,020 |
Consumer portfolio segment, adjusted for credit analysis | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 3,337 | 4,372 |
Consumer portfolio segment, adjusted for credit analysis | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,457,089 | 1,347,228 |
Consumer portfolio segment, adjusted for credit analysis | Single family | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,099,644 | 1,009,001 |
Nonaccrual | 3,437 | 2,584 |
Total past due and nonaccrual | 11,812 | 13,236 |
Consumer portfolio segment, adjusted for credit analysis | Single family | 30-59 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 3,562 | 4,556 |
Consumer portfolio segment, adjusted for credit analysis | Single family | 60-89 days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,476 | 1,724 |
Consumer portfolio segment, adjusted for credit analysis | Single family | 90+ days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 3,337 | 4,372 |
Consumer portfolio segment, adjusted for credit analysis | Single family | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 1,087,832 | 995,765 |
Consumer portfolio segment, adjusted for credit analysis | Home equity and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans before allowance for credit loss | 370,875 | 352,707 |
Nonaccrual | 962 | 681 |
Total past due and nonaccrual | 1,618 | 1,244 |
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 | 519 | 267 |
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 | 137 | 296 |
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 | $ 369,257 | $ 351,463 |
LOANS AND CREDIT QUALITY - Lo_4
LOANS AND CREDIT QUALITY - Loan Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Consumer loans | Single family | Significant Payment Delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 847 | $ 682 | $ 847 | $ 1,209 |
% of Total Class of Financing Receivable | 0.08% | 0.08% | 0.08% | 0.13% |
Consumer loans | Single family | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 273 | $ 0 | $ 273 | $ 270 |
% of Total Class of Financing Receivable | 0.02% | 0% | 0.02% | 0.03% |
Consumer loans | Single family | Interest Rate Reduction and Payment Deferral | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 0 | $ 477 | $ 0 | $ 477 |
% of Total Class of Financing Receivable | 0% | 0.13% | 0% | 0.13% |
Consumer loans | Single family | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 0 | $ 0 | $ 0 | $ 819 |
% of Total Class of Financing Receivable | 0% | 0% | 0% | 0.09% |
Consumer loans | Single family | Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 1,167 | $ 4,033 | $ 2,284 | $ 13,325 |
% of Total Class of Financing Receivable | 0.11% | 0.44% | 0.21% | 1.47% |
Consumer loans | Single family | Interest Rate Reduction, Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 0 | $ 294 | $ 192 | $ 7,185 |
% of Total Class of Financing Receivable | 0% | 0.03% | 0.02% | 0.79% |
Consumer loans | Home equity and other | Significant Payment Delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 0 | $ 0 | $ 0 | $ 70 |
% of Total Class of Financing Receivable | 0% | 0% | 0% | 0.02% |
Consumer loans | Home equity and other | Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 0 | $ 0 | $ 0 | $ 51 |
% of Total Class of Financing Receivable | 0% | 0% | 0% | 0.01% |
Commercial loans, adjusted for credit analysis | Non-owner occupied CRE | Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 16,440 | $ 0 | $ 16,440 | $ 0 |
% of Total Class of Financing Receivable | 2.60% | 0% | 2.60% | 0% |
Commercial loans, adjusted for credit analysis | CRE construction | Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 3,871 | $ 0 | $ 3,871 | $ 0 |
% of Total Class of Financing Receivable | 0.68% | 0% | 0.68% | 0% |
Commercial loans, adjusted for credit analysis | Commercial business | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Amortized Cost Basis at Period End | $ 9,663 | $ 0 | $ 10,396 | $ 1,570 |
% of Total Class of Financing Receivable | 2.51% | 0% | 2.70% | 0.43% |
LOANS AND CREDIT QUALITY - Lo_5
LOANS AND CREDIT QUALITY - Loan Modifications, Financial Effect (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Commercial loans | Commercial business | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average contractual interest rate, before modification | 5.72% | 5.72% | ||
Weighted average contractual interest rate, after modification | 4% | 4% | ||
Commercial loans | Commercial business | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average time added to life of loans (in years) | 1 year 1 month 6 days | 1 year 2 months 12 days | 9 months 18 days | |
Commercial loans | Non-owner occupied CRE | Significant Payment Delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average time added to life of loans (in years) | 1 year 7 months 6 days | |||
Commercial loans | Non-owner occupied CRE | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average time added to life of loans (in years) | 1 year 7 months 6 days | 1 year 7 months 6 days | ||
Commercial loans | CRE construction | Significant Payment Delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average time added to life of loans (in years) | 2 years 1 month 6 days | |||
Commercial loans | CRE construction | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average time added to life of loans (in years) | 2 years 1 month 6 days | 2 years 1 month 6 days | ||
Consumer loans | Single family | Interest Rate Reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average contractual interest rate, before modification | 4.38% | 5.25% | 4.35% | |
Weighted average contractual interest rate, after modification | 4.13% | 5% | 3.39% | |
Consumer loans | Single family | Significant Payment Delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average percent of loan balances capitalized and added to term of loan | 1.08% | 1.83% | 0.48% | 0.22% |
Consumer loans | Single family | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average time added to life of loans (in years) | 3 years 4 months 24 days | 3 years 7 months 6 days | 4 years 7 months 6 days | 4 years 4 months 24 days |
Consumer loans | Home equity and other | Significant Payment Delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average percent of loan balances capitalized and added to term of loan | 3.44% | |||
Consumer loans | Home equity and other | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Weighted average time added to life of loans (in years) | 16 years 1 month 6 days |
LOANS AND CREDIT QUALITY - Lo_6
LOANS AND CREDIT QUALITY - Loan Modifications, by Payment Status (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | $ 42,736 |
30-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 700 |
90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 518 |
Non-owner occupied CRE | Commercial loans | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 16,440 |
Non-owner occupied CRE | Commercial loans | 30-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 0 |
Non-owner occupied CRE | Commercial loans | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 0 |
CRE construction | Commercial loans | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 3,871 |
CRE construction | Commercial loans | 30-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 0 |
CRE construction | Commercial loans | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 0 |
Commercial business | Commercial loans | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 14,335 |
Commercial business | Commercial loans | 30-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 0 |
Commercial business | Commercial loans | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 0 |
Single family | Consumer loans | Current | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 8,090 |
Single family | Consumer loans | 30-89 Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | 700 |
Single family | Consumer loans | 90+ Days Past Due | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Loans modified | $ 518 |
LOANS AND CREDIT QUALITY - Lo_7
LOANS AND CREDIT QUALITY - Loan Modifications with Subsequent Default, by Loan Modification (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Commercial business | Commercial business | Significant Payment Delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | $ 0 | $ 0 | ||
Commercial business | Commercial business | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | 2,990 | 2,990 | ||
Commercial business | Commercial business | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | 0 | 0 | ||
Commercial business | Commercial business | Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | 0 | 0 | ||
Commercial business | Commercial business | Interest Rate Reduction, Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | 0 | 0 | ||
Consumer loans | Single family | Significant Payment Delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | 235 | $ 0 | 235 | $ 0 |
Consumer loans | Single family | Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | 0 | 0 | 0 | 0 |
Consumer loans | Single family | Interest Rate Reduction and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | 0 | 0 | 0 | 0 |
Consumer loans | Single family | Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | 634 | 0 | 2,879 | 172 |
Consumer loans | Single family | Interest Rate Reduction, Significant Payment Delay and Term Extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with subsequent default | $ 70 | $ 553 | $ 1,162 | $ 1,555 |
DEPOSITS - Schedule of Deposit
DEPOSITS - Schedule of Deposit Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deposit balances, including stated rates | ||
Noninterest-bearing demand deposits | $ 1,437,057 | $ 1,399,912 |
Interest bearing: | ||
Interest-bearing demand deposits | 352,529 | 466,490 |
Savings | 284,663 | 258,977 |
Money market | 1,723,924 | 2,383,209 |
Certificates of deposit | 2,947,378 | 2,943,331 |
Total interest bearing deposits | 5,308,494 | 6,052,007 |
Total deposits | $ 6,745,551 | $ 7,451,919 |
Weighted Average Rate, Interest-bearing demand deposits | 0.21% | 0.10% |
Weighted Average Rate, Savings | 0.06% | 0.06% |
Weighted Average Rate, Money market | 1.67% | 1.22% |
Weighted Average Rate, Certificates of deposit | 4.13% | 3.07% |
Weighted Average Rate, Domestic, Total interest bearing deposits | 2.82% | 1.98% |
Weighted Average Rate, Domestic, Total deposits | 2.25% | 1.61% |
DEPOSITS - Schedule of Deposi_2
DEPOSITS - Schedule of Deposit Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Certificates of deposit outstanding | ||
Within one year | $ 2,855,303 | |
One to two years | 66,263 | |
Two to three years | 13,283 | |
Three to four years | 5,160 | |
Four to five years | 7,027 | |
Thereafter | 342 | |
Total | $ 2,947,378 | $ 2,943,331 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | ||
Time deposits, at or above FDIC insurance limit | $ 162 | $ 189 |
Brokered deposits | $ 973 | $ 1,400 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES - Fair Value of Derivatives (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 340,952,000 | $ 342,248,000 |
Derivative Asset [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Asset | 15,520,000 | 13,763,000 |
Netting adjustments/cash collateral, Fair value derivative, Asset | (14,908,000) | (12,870,000) |
Carrying value on consolidated balance sheet, Fair value derivatives, Asset | 612,000 | 893,000 |
Derivative Liability [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Liability | (15,185,000) | (13,280,000) |
Netting adjustments/cash collateral, Fair value derivative, Liability | (245,000) | 101,000 |
Carrying value on consolidated balance sheet, Fair value derivatives, Liability | (15,430,000) | (13,179,000) |
Liability for cash collateral received from counterparties | 15,200,000 | 12,800,000 |
Concentration of credit risk, master netting arrangements | ||
Derivative Liability [Abstract] | ||
Liability for cash collateral received from counterparties | 15,200,000 | 12,800,000 |
Forward sale commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 53,602,000 | 51,252,000 |
Derivative Asset [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Asset | 479,000 | 293,000 |
Derivative Liability [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Liability | (74,000) | (151,000) |
Interest rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 34,513,000 | 17,463,000 |
Derivative Asset [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Asset | 118,000 | 141,000 |
Derivative Liability [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Liability | (193,000) | (36,000) |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 238,837,000 | 236,533,000 |
Derivative Asset [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Asset | 14,916,000 | 13,093,000 |
Derivative Liability [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Liability | (14,916,000) | (13,093,000) |
Futures | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 5,100,000 | 23,000,000 |
Derivative Asset [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Asset | 0 | 18,000 |
Derivative Liability [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Liability | (2,000) | 0 |
Options | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 8,900,000 | 14,000,000 |
Derivative Asset [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Asset | 7,000 | 218,000 |
Derivative Liability [Abstract] | ||
Total derivatives before netting, Fair value derivatives, Liability | $ 0 | $ 0 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Master Netting Agreements (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Asset [Abstract] | ||
Derivative assets, Gross fair value | $ 15,520,000 | $ 13,763,000 |
Derivative assets, Netting adjustments/Cash collateral | (14,908,000) | (12,870,000) |
Derivative assets, Carrying value | 612,000 | 893,000 |
Derivative Liability [Abstract] | ||
Derivative liabilities, Gross fair value | (15,185,000) | (13,280,000) |
Derivative liabilities, Netting adjustments/Cash collateral | (245,000) | 101,000 |
Derivative liabilities, Carrying Value | (15,430,000) | (13,179,000) |
Liability for cash collateral received from counterparties | 15,200,000 | 12,800,000 |
Concentration of credit risk, master netting arrangements | ||
Derivative Liability [Abstract] | ||
Liability for cash collateral received from counterparties | $ 15,200,000 | $ 12,800,000 |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Liability for cash collateral received from counterparties | $ 15,200,000 | $ 12,800,000 |
Receivable for cash collateral paid to counterparties | 20,000 | 30,000 |
Notional amount of open interest rate swap agreements | 340,952,000 | 342,248,000 |
Interest rate swaps, back-to-back | ||
Derivative [Line Items] | ||
Notional amount of open interest rate swap agreements | $ 239,000,000 | $ 237,000,000 |
DERIVATIVES AND HEDGING ACTIV_6
DERIVATIVES AND HEDGING ACTIVITIES - Gain (Loss) Recognized in Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net gain (loss) on loan origination and sale activities | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) from economic hedging | $ 513 | $ 958 | $ 780 | $ 8,221 |
Loan servicing income (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) from economic hedging | (247) | (422) | (1,475) | (12,051) |
Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) from economic hedging | $ 1 | $ 0 | $ 0 | $ 160 |
MORTGAGE BANKING OPERATIONS - L
MORTGAGE BANKING OPERATIONS - Loans Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 33,879 | $ 17,327 |
Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | 23,945 | 14,075 |
CRE, multifamily and SBA | Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 9,934 | $ 3,252 |
MORTGAGE BANKING OPERATIONS -_2
MORTGAGE BANKING OPERATIONS - Loans Sold (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of loans originated as held for sale | $ 104,396 | $ 161,193 | $ 274,055 | $ 771,315 |
Single family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of loans originated as held for sale | 101,575 | 131,228 | 257,835 | 641,921 |
CRE, multifamily and SBA | Commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from sale of loans originated as held for sale | $ 2,821 | $ 29,965 | $ 16,220 | $ 129,394 |
MORTGAGE BANKING OPERATIONS - G
MORTGAGE BANKING OPERATIONS - Gain on Origination and Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Gain on loan origination and sale activities | $ 2,372 | $ 2,647 | $ 7,238 | $ 16,213 |
Single family | ||||
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Gain on loan origination and sale activities | 2,267 | 1,778 | 6,656 | 11,896 |
CRE, multifamily and SBA | Commercial loans | ||||
Gain on mortgage loan origination and sale activities [Line Items] | ||||
Gain on loan origination and sale activities | $ 105 | $ 869 | $ 582 | $ 4,317 |
MORTGAGE BANKING OPERATIONS -_3
MORTGAGE BANKING OPERATIONS - Loans Serviced for Others (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 7,249,934 | $ 7,375,383 |
Single family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | 5,349,832 | 5,436,899 |
CRE, multifamily and SBA | Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans serviced for others | $ 1,900,102 | $ 1,938,484 |
MORTGAGE BANKING OPERATIONS - M
MORTGAGE BANKING OPERATIONS - Mortgage Repurchase Liability (Details) - Representations and warranties reserve for loan receivables - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Mortgage Repurchase Losses [Roll Forward] | ||||
Balance, beginning of period | $ 1,728 | $ 1,491 | $ 2,232 | $ 1,312 |
Additions, net of adjustments | (73) | 838 | (184) | 1,329 |
Realized (losses) recoveries, net | (10) | (370) | (403) | (682) |
Balance, end of period | $ 1,645 | $ 1,959 | $ 1,645 | $ 1,959 |
MORTGAGE BANKING OPERATIONS - N
MORTGAGE BANKING OPERATIONS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Impaired [Line Items] | ||
Servicing advances | $ 3.1 | $ 1.6 |
GNMA Early buyout loans | ||
Financing Receivable, Impaired [Line Items] | ||
Loans receivable, in Ginnie Mae pool | $ 5.6 | $ 6.9 |
MORTGAGE BANKING OPERATIONS - R
MORTGAGE BANKING OPERATIONS - Revenue from Mortgage Servicing (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing income, net: | ||||
Servicing fees and other | $ 6,405 | $ 7,673 | $ 19,666 | $ 25,501 |
Amortization of single family MSRs | (1,564) | (2,112) | (4,874) | (8,052) |
Amortization of multifamily and SBA MSRs | (1,374) | (1,828) | (4,363) | (5,877) |
Net servicing income | 3,467 | 3,733 | 10,429 | 11,572 |
Risk management, single family MSRs: | ||||
Changes in fair value of MSRs due to assumptions | 785 | 1,989 | 1,794 | 16,615 |
Mortgage servicing rights, risk management | (375) | (992) | (1,039) | (1,866) |
Loan servicing income | 3,092 | 2,741 | 9,390 | 9,706 |
Servicing contracts | ||||
Risk management, single family MSRs: | ||||
Net gain (loss) from economic hedging | $ (1,160) | $ (2,981) | $ (2,833) | $ (18,481) |
MORTGAGE BANKING OPERATIONS - S
MORTGAGE BANKING OPERATIONS - Single Family MSR Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Additions and amortization: | ||||
Amortization | $ 1,564 | $ 2,112 | $ 4,874 | $ 8,052 |
Changes in fair value of MSR assumptions | 785 | 1,989 | 1,794 | 16,615 |
Ending balance | 76,470 | 76,470 | ||
Single family | ||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Beginning balance | 76,314 | 76,481 | 76,617 | 61,584 |
Additions and amortization: | ||||
Originations | 935 | 1,453 | 2,473 | 7,664 |
Purchases | 0 | 0 | 460 | 0 |
Amortization | (1,564) | (2,112) | (4,874) | (8,052) |
Net additions and amortization | (629) | (659) | (1,941) | (388) |
Changes in fair value of MSR assumptions | 785 | 1,989 | 1,794 | 16,615 |
Ending balance | $ 76,470 | $ 77,811 | $ 76,470 | $ 77,811 |
MORTGAGE BANKING OPERATIONS - K
MORTGAGE BANKING OPERATIONS - Key Economic Assumptions (Details) - Single family | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Constant prepayment rate | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Servicing asset, measurement input | 15.13% | 13.06% | 14.20% | 10.72% |
Discount rate | ||||
Fair Value Measurement Inputs and Valuation Techniques | ||||
Servicing asset, measurement input | 11.70% | 10.36% | 10.83% | 9.19% |
MORTGAGE BANKING OPERATIONS -_4
MORTGAGE BANKING OPERATIONS - Sensitivity Analysis (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) | Dec. 31, 2022 | |
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Fair value of single family MSR | $ 76,470 | |
Expected weighted-average life (in years) | 8 years 5 months 12 days | |
Constant Prepayment Rate [Abstract] | ||
Impact on fair value of 25 basis points adverse change in interest rates | $ (316) | |
Impact on fair value of 50 basis points adverse change in interest rates | (706) | |
Discount Rate [Abstract] | ||
Impact on fair value of 100 basis points increase | (1,162) | |
Impact on fair value of 200 basis points increase | $ (2,894) | |
Low | CPRs | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.0620 | 0.0601 |
Low | Discount rate | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.1000 | 0.0974 |
High | CPRs | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.2530 | 0.1110 |
High | Discount rate | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.1700 | 0.1688 |
Weighted Average | CPRs | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.0650 | 0.0819 |
Weighted Average | Discount rate | ||
Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
Measurement input (as a percent) | 0.1093 | 0.1066 |
MORTGAGE BANKING OPERATIONS -_5
MORTGAGE BANKING OPERATIONS - Multifamily and SBA MSR Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||||
Beginning balance | $ 32,477 | $ 38,130 | $ 35,256 | $ 39,415 |
Originations | 38 | 517 | 248 | 3,281 |
Amortization | (1,374) | (1,828) | (4,363) | (5,877) |
Ending balance | $ 31,141 | $ 36,819 | $ 31,141 | $ 36,819 |
GUARANTEES AND MORTGAGE REPUR_2
GUARANTEES AND MORTGAGE REPURCHASE LIABILITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||||||||
Loans serviced for others | $ 7,249,934,000 | $ 7,249,934,000 | $ 7,375,383,000 | |||||
Single family | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loans serviced for others | 5,349,832,000 | 5,349,832,000 | 5,436,899,000 | |||||
Representations and warranties reserve for loan receivables | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to mortgage repurchase | 1,645,000 | $ 1,959,000 | 1,645,000 | $ 1,959,000 | $ 1,728,000 | 2,232,000 | $ 1,491,000 | $ 1,312,000 |
Loss sharing relationship | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to multifamily DUS program | 500,000 | 500,000 | 600,000 | |||||
Loss sharing relationship | Multifamily | ||||||||
Loss Contingencies [Line Items] | ||||||||
UPB of loans sold through DUS | 1,800,000,000 | 1,800,000,000 | 1,800,000,000 | |||||
Losses incurred - related to DUS | 0 | $ 0 | 0 | $ 0 | ||||
Credit risk | ||||||||
Loss Contingencies [Line Items] | ||||||||
Reserve liability related to mortgage repurchase | $ 1,600,000 | $ 1,600,000 | $ 2,200,000 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of EPS Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 2,295 | $ 20,367 | $ (24,089) | $ 58,039 |
Weighted average shares: | ||||
Basic weighted average number of shares outstanding (in shares) | 18,792,893 | 18,716,864 | 18,774,593 | 19,000,007 |
Dilutive effect of outstanding common stock equivalents (in shares) | 0 | 79,873 | 0 | 137,841 |
Diluted weighted-average number of shares outstanding (in shares) | 18,792,893 | 18,796,737 | 18,774,593 | 19,137,848 |
Net income (loss) per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.12 | $ 1.09 | $ (1.28) | $ 3.05 |
Diluted earnings per share (in dollars per share) | $ 0.12 | $ 1.08 | $ (1.28) | $ 3.03 |
Shares excluded from EPS computation due to antidilutive effect | 236,628 | 118,746 |
FAIR VALUE MEASUREMENT - Schedu
FAIR VALUE MEASUREMENT - Schedule of Fair Value Hierarchy Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Investment securities AFS | $ 1,270,654 | $ 1,378,774 |
Single family mortgage servicing rights | 76,470 | |
Derivatives | 612 | 893 |
Liabilities: | ||
Derivative liabilities | 15,430 | 13,179 |
Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 182,969 | 197,262 |
Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 47,563 | 56,049 |
Municipal bonds | ||
Assets: | ||
Investment securities AFS | 378,298 | 411,548 |
Corporate debt securities | ||
Assets: | ||
Investment securities AFS | 38,968 | 42,945 |
U.S. Treasury securities | ||
Assets: | ||
Investment securities AFS | 19,445 | 19,934 |
Agency debentures | ||
Assets: | ||
Investment securities AFS | 65,103 | 27,478 |
Recurring | ||
Assets: | ||
Single family LHFS | 23,945 | 14,075 |
Single family LHFI | 1,225 | 5,868 |
Single family mortgage servicing rights | 76,470 | 76,617 |
Total assets | 1,409,405 | 1,508,094 |
Liabilities: | ||
Total liabilities | 15,185 | 13,280 |
Recurring | Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 182,969 | 197,262 |
Recurring | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 47,563 | 56,049 |
Recurring | Collateralized mortgage obligations residential | ||
Assets: | ||
Investment securities AFS | 479,556 | 553,039 |
Recurring | Collateralized mortgage obligations commercial | ||
Assets: | ||
Investment securities AFS | 58,752 | 70,519 |
Recurring | Municipal bonds | ||
Assets: | ||
Investment securities AFS | 378,298 | 411,548 |
Recurring | Corporate debt securities | ||
Assets: | ||
Investment securities AFS | 38,968 | 42,945 |
Recurring | U.S. Treasury securities | ||
Assets: | ||
Trading securities - U.S. Treasury securities | 21,591 | 18,997 |
Investment securities AFS | 19,445 | 19,934 |
Recurring | Agency debentures | ||
Assets: | ||
Investment securities AFS | 65,103 | 27,478 |
Recurring | Futures | ||
Assets: | ||
Derivatives | 18 | |
Liabilities: | ||
Derivative liabilities | 2 | |
Recurring | Forward sale commitments | ||
Assets: | ||
Derivatives | 479 | 293 |
Liabilities: | ||
Derivative liabilities | 74 | 151 |
Recurring | Options | ||
Assets: | ||
Derivatives | 7 | 218 |
Recurring | Interest rate lock commitments | ||
Assets: | ||
Derivatives | 118 | 141 |
Liabilities: | ||
Derivative liabilities | 193 | 36 |
Recurring | Interest rate swaps | ||
Assets: | ||
Derivatives | 14,916 | 13,093 |
Liabilities: | ||
Derivative liabilities | 14,916 | 13,093 |
Level 1 | Recurring | ||
Assets: | ||
Single family LHFS | 0 | 0 |
Single family LHFI | 0 | 0 |
Single family mortgage servicing rights | 0 | 0 |
Total assets | 21,598 | 19,233 |
Liabilities: | ||
Total liabilities | 2 | 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 | 21,591 | 18,997 |
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | Agency debentures | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 1 | Recurring | Futures | ||
Assets: | ||
Derivatives | 18 | |
Liabilities: | ||
Derivative liabilities | 2 | |
Level 1 | Recurring | Forward sale commitments | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 | Recurring | Options | ||
Assets: | ||
Derivatives | 7 | 218 |
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 | 23,945 | 14,075 |
Single family LHFI | 0 | 0 |
Single family mortgage servicing rights | 0 | 0 |
Total assets | 1,308,199 | 1,404,226 |
Liabilities: | ||
Total liabilities | 14,990 | 13,244 |
Level 2 | Recurring | Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 181,174 | 195,321 |
Level 2 | Recurring | Commercial mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 47,563 | 56,049 |
Level 2 | Recurring | Collateralized mortgage obligations residential | ||
Assets: | ||
Investment securities AFS | 479,556 | 553,039 |
Level 2 | Recurring | Collateralized mortgage obligations commercial | ||
Assets: | ||
Investment securities AFS | 58,752 | 70,519 |
Level 2 | Recurring | Municipal bonds | ||
Assets: | ||
Investment securities AFS | 378,298 | 411,548 |
Level 2 | Recurring | Corporate debt securities | ||
Assets: | ||
Investment securities AFS | 38,968 | 42,877 |
Level 2 | Recurring | U.S. Treasury securities | ||
Assets: | ||
Trading securities - U.S. Treasury securities | 0 | 0 |
Investment securities AFS | 19,445 | 19,934 |
Level 2 | Recurring | Agency debentures | ||
Assets: | ||
Investment securities AFS | 65,103 | 27,478 |
Level 2 | Recurring | Futures | ||
Assets: | ||
Derivatives | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Level 2 | Recurring | Forward sale commitments | ||
Assets: | ||
Derivatives | 479 | 293 |
Liabilities: | ||
Derivative liabilities | 74 | 151 |
Level 2 | Recurring | Options | ||
Assets: | ||
Derivatives | 0 | 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 | 14,916 | 13,093 |
Liabilities: | ||
Derivative liabilities | 14,916 | 13,093 |
Level 3 | Recurring | ||
Assets: | ||
Single family LHFS | 0 | 0 |
Single family LHFI | 1,225 | 5,868 |
Single family mortgage servicing rights | 76,470 | 76,617 |
Total assets | 79,608 | 84,635 |
Liabilities: | ||
Total liabilities | 193 | 36 |
Level 3 | Recurring | Residential mortgage-backed securities | ||
Assets: | ||
Investment securities AFS | 1,795 | 1,941 |
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 | 0 | 68 |
Level 3 | Recurring | U.S. Treasury securities | ||
Assets: | ||
Trading securities - U.S. Treasury securities | 0 | 0 |
Investment securities AFS | 0 | 0 |
Level 3 | Recurring | Agency debentures | ||
Assets: | ||
Investment securities AFS | 0 | 0 |
Level 3 | Recurring | Futures | ||
Assets: | ||
Derivatives | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Level 3 | Recurring | Forward sale commitments | ||
Assets: | ||
Derivatives | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 | Recurring | Options | ||
Assets: | ||
Derivatives | 0 | 0 |
Level 3 | Recurring | Interest rate lock commitments | ||
Assets: | ||
Derivatives | 118 | 141 |
Liabilities: | ||
Derivative liabilities | 193 | 36 |
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 | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 | $ 0 | $ 0 | |
Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Single family LHFI | 1,225,000 | 1,225,000 | $ 5,868,000 | ||
Level 3 | Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Single family LHFI | $ 1,225,000 | $ 1,225,000 | $ 5,868,000 |
FAIR VALUE MEASUREMENT - Sche_2
FAIR VALUE MEASUREMENT - Schedule of Level 3 Unobservable Inputs (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities AFS | $ 1,270,654 | $ 1,378,774 | ||||
Interest rate lock commitments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate lock commitments, net | (75) | $ 79 | 105 | $ (360) | $ 322 | $ 2,484 |
Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Single family LHFI | 1,225 | 5,868 | ||||
Recurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Single family LHFI | 1,225 | 5,868 | ||||
Recurring | Level 3 | Investment securities AFS | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Investment securities AFS | 1,795 | 2,009 | ||||
Recurring | Level 3 | Single family LHFI | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Single family LHFI | 1,225 | 5,868 | ||||
Recurring | Level 3 | Interest rate lock commitments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest rate lock commitments, net | $ (75) | $ 105 | ||||
Implied spread to benchmark interest rate curve | Low | Recurring | Level 3 | Investment securities AFS | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Implied spread to benchmark interest rate curve | 0.0200 | 0.0200 | ||||
Implied spread to benchmark interest rate curve | Low | Recurring | Level 3 | Single family LHFI | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Implied spread to benchmark interest rate curve | 0.0319 | 0.0287 | ||||
Implied spread to benchmark interest rate curve | High | Recurring | Level 3 | Investment securities AFS | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Implied spread to benchmark interest rate curve | 0.0200 | 0.0200 | ||||
Implied spread to benchmark interest rate curve | High | Recurring | Level 3 | Single family LHFI | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Implied spread to benchmark interest rate curve | 0.0564 | 0.0515 | ||||
Implied spread to benchmark interest rate curve | Weighted Average | Recurring | Level 3 | Investment securities AFS | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Implied spread to benchmark interest rate curve | 0.0200 | 0.0200 | ||||
Implied spread to benchmark interest rate curve | Weighted Average | Recurring | Level 3 | Single family LHFI | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Implied spread to benchmark interest rate curve | 0.0399 | 0.0414 | ||||
Fall-out factor | Low | Recurring | Level 3 | Interest rate lock commitments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fall-out factor, Value of servicing | 0.0040 | 0.0010 | ||||
Fall-out factor | High | Recurring | Level 3 | Interest rate lock commitments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fall-out factor, Value of servicing | 0.1728 | 0.1750 | ||||
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] | ||||||
Fall-out factor, Value of servicing | 0.0836 | 0.0643 | ||||
Value of servicing | Low | Recurring | Level 3 | Interest rate lock commitments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fall-out factor, Value of servicing | 0.0038 | 0.0054 | ||||
Value of servicing | High | Recurring | Level 3 | Interest rate lock commitments | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fall-out factor, Value of servicing | 0.0111 | 0.0111 | ||||
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] | ||||||
Fall-out factor, Value of servicing | 0.0074 | 0.0095 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest rate lock commitments | ||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||
Change in mark to market | $ 371 | $ 70 | $ 1,484 | $ (769) |
Investment securities AFS | ||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||
Beginning balance | 1,913 | 2,160 | 2,009 | 2,482 |
Additions | 0 | 0 | 0 | 0 |
Transfers | 0 | 0 | 0 | 0 |
Payoffs/Sales | (48) | (48) | (144) | (145) |
Change in mark to market | (70) | (79) | (70) | (304) |
Ending balance | 1,795 | 2,033 | 1,795 | 2,033 |
Single family LHFI | ||||
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||
Beginning balance | 1,269 | 6,508 | 5,868 | 7,287 |
Additions | 0 | 0 | 0 | 0 |
Transfers | 0 | 0 | 0 | 0 |
Payoffs/Sales | 0 | 0 | (4,607) | 0 |
Change in mark to market | (44) | (658) | (36) | (1,437) |
Ending balance | $ 1,225 | $ 5,850 | $ 1,225 | $ 5,850 |
FAIR VALUE MEASUREMENT - Level
FAIR VALUE MEASUREMENT - Level 3 Interest Lock Commitments (Details) - Interest rate lock commitments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value Changes and Activity for Level 3 [Roll Forward] | ||||
Beginning balance, net | $ 79 | $ 322 | $ 105 | $ 2,484 |
Total realized/unrealized gains (losses) | 371 | 70 | 1,484 | (769) |
Settlements | (525) | (752) | (1,664) | (2,075) |
Ending balance, net | $ (75) | $ (360) | $ (75) | $ (360) |
FAIR VALUE MEASUREMENT - FV Uno
FAIR VALUE MEASUREMENT - FV Unobservable Inputs - Nonrecurring Basis (Details) - Nonrecurring - Level 3 $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,774 | $ 3,774 |
Total Gains (Losses) | $ (579) | $ (854) |
FAIR VALUE MEASUREMENT - FV of
FAIR VALUE MEASUREMENT - FV of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Mortgage servicing rights – multifamily and SBA | $ 76,470 | |
Other assets - GNMA EBO loans | 7,400,501 | $ 7,384,820 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 226,704 | 72,828 |
Investment securities HTM | 2,389 | 2,441 |
LHFI | 7,399,276 | 7,378,952 |
Federal Home Loan Bank stock | 59,330 | 49,305 |
Liabilities: | ||
Certificates of deposit | 2,947,378 | 2,943,331 |
Borrowings | 1,873,000 | 1,016,000 |
Long-term debt | 224,671 | 224,404 |
Fair Value | ||
Assets: | ||
Cash and cash equivalents | 226,704 | 72,828 |
Investment securities HTM | 2,293 | 2,385 |
LHFI | 6,858,955 | 6,988,363 |
Federal Home Loan Bank stock | 59,330 | 49,305 |
Liabilities: | ||
Certificates of deposit | 2,929,803 | 2,910,301 |
Borrowings | 1,856,840 | 1,014,973 |
Long-term debt | 150,333 | 202,338 |
Multifamily | Carrying Value | ||
Assets: | ||
LHFS – multifamily and other | 9,934 | 3,252 |
Mortgage servicing rights – multifamily and SBA | 31,141 | 35,256 |
Multifamily | Fair Value | ||
Assets: | ||
LHFS – multifamily and other | 9,959 | 3,291 |
Mortgage servicing rights – multifamily and SBA | 36,271 | 39,792 |
Other assets - GNMA EBO loans | Carrying Value | ||
Assets: | ||
Other assets - GNMA EBO loans | 5,558 | 6,918 |
Other assets - GNMA EBO loans | Fair Value | ||
Assets: | ||
Other assets - GNMA EBO loans | 5,558 | 6,918 |
Level 1 | Fair Value | ||
Assets: | ||
Cash and cash equivalents | 226,704 | 72,828 |
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 | 2,293 | 2,385 |
LHFI | 0 | 0 |
Federal Home Loan Bank stock | 59,330 | 49,305 |
Liabilities: | ||
Certificates of deposit | 2,929,803 | 2,910,301 |
Borrowings | 1,856,840 | 1,014,973 |
Long-term debt | 150,333 | 202,338 |
Level 2 | Multifamily | Fair Value | ||
Assets: | ||
LHFS – multifamily and other | 9,959 | 3,291 |
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 | 6,858,955 | 6,988,363 |
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 | 36,271 | 39,792 |
Level 3 | Other assets - GNMA EBO loans | Fair Value | ||
Assets: | ||
Other assets - GNMA EBO loans | $ 5,558 | $ 6,918 |
FAIR VALUE MEASUREMENT - Fair V
FAIR VALUE MEASUREMENT - Fair Value Option (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Single family LHFS | $ 23,945 | $ 14,075 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Single family LHFS | 23,945 | 14,075 |
Aggregate Unpaid Principal Balance | 24,026 | 13,914 |
Fair Value Less Aggregated Unpaid Principal Balance | $ (81) | $ 161 |
BORROWINGS (Details)
BORROWINGS (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Amount | |
Within one year | $ 873,000 |
One to three years | 450,000 |
Three through five years | 550,000 |
Total | $ 1,873,000 |
Weighted Average Rate | |
Within one year | 4.87% |
One to three years | 4.56% |
Three through five years | 4.35% |
Total | 4.64% |
Federal Reserve Bank Advances | Bank Term Funding Program | |
Debt Instrument [Line Items] | |
Amount borrowed from FRB under BTFP | $ 745,000 |
Repayment of borrowings | $ 100,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Asset Pledged as Collateral | Federal Home Loan Bank Advances | |
Other Commitments [Line Items] | |
Letters of credit | $ 146 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Oct. 26, 2023 $ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Dividends payable (in dollars per share) | $ 0.10 |