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Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of change in fair value of the Company's MSR, as included in other assets within the consolidated balance sheets

The following tables present the changes in fair value of the Company’s MSR asset, as included in other assets within the consolidated balance sheets, and other information related to the serviced portfolio (dollars in thousands).


	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020		2019
Balance, beginning of period	$	30,299		$	62,049		$	55,504	$	66,102
Additions		59,440			2,547			63,915		4,408
Sales		—			—			(18,650)		—
Changes in fair value:
Due to changes in model inputs or assumptions ⁽¹⁾		(6,284)			(8,739)			(15,878)		(13,772)
Due to customer payoffs		(2,191)			(2,162)			(3,627)		(3,043)
Balance, end of period	$	81,264		$	53,695		$	81,264	$	53,695

	June 30,			December 31,
	2020			2019
Mortgage loans serviced for others	$	8,635,201		$	4,948,441
MSR asset as a percentage of serviced mortgage loans		0.94	%		1.12	%

(1)

Primarily represents normal customer payments, changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates and the refinement of other MSR model assumptions.

Schedule of key assumptions used in measuring the fair value of the Company's MSR


	June 30,		December 31,
	2020		2019
Weighted average constant prepayment rate	13.45	%	13.16	%
Weighted average discount rate	14.62	%	11.14	%
Weighted average life (in years)	5.9		6.0

Schedule of sensitivity analysis of fair value of the Company's MSR to certain key assumptions

A sensitivity analysis of the fair value of the Company’s MSR asset to certain key assumptions is presented in the following table (in thousands).


	June 30,		December 31,
	2020		2019
Constant prepayment rate:
Impact of 10% adverse change	$	(3,838)	$	(3,072)
Impact of 20% adverse change		(7,458)		(5,943)
Discount rate:
Impact of 10% adverse change		(3,434)		(2,094)
Impact of 20% adverse change		(6,569)		(4,028)