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Mortgage Servicing Rights (Tables)
 6 Months Ended
Jun. 30, 2017
Transfers And Servicing Of Financial Assets [Abstract]  
Schedule of Changes in Mortgage Servicing Rights

Changes in the Company’s mortgage servicing rights were as follows for the three and six months ended June 30, 2017 and 2016:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2017

 

 

 

2016

 

 

 

2017

 

 

 

2016

 

Carrying value prior to policy change

 

$

47,593

 

 

$

36,611

 

 

$

32,070

 

 

$

29,711

 

Fair value impact of change in accounting policy (See

   Note 1)

 

 

—

 

 

 

—

 

 

 

1,011

 

 

 

—

 

Carrying value at beginning of period

 

 

47,593

 

 

 

36,611

 

 

 

33,081

 

 

 

29,711

 

Capitalization

 

 

14,646

 

 

 

10,653

 

 

 

29,659

 

 

 

19,783

 

Amortization

 

 

—

 

 

 

(1,968

)

 

 

—

 

 

 

(3,425

)

Sales

 

 

(11,935

)

 

 

—

 

 

 

(11,935

)

 

 

—

 

Impairment

 

 

—

 

 

 

(4,914

)

 

 

—

 

 

 

(5,687

)

Change in fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due to pay-offs/pay-downs

 

 

(532

)

 

 

—

 

 

 

(797

)

 

 

—

 

Due to change in valuation inputs or assumptions

 

 

(1,308

)

 

 

—

 

 

 

(1,544

)

 

 

—

 

Carrying value at June 30

 

$

48,464

 

 

$

40,382

 

 

$

48,464

 

 

$

40,382

 

 
Schedule of Servicing Income and Expense Included in Mortgage Banking Income

The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the three and six months ended June 30, 2017 and 2016, respectively:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2017

 

 

 

2016

 

 

 

2017

 

 

 

 

 

2016

 

Servicing income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

$

2,747

 

 

$

2,655

 

 

$

5,495

 

 

 

 

$

4,651

 

Change in fair value of mortgage servicing rights

 

 

(1,840

)

 

 

—

 

 

 

(2,341

)

 

 

 

 

—

 

Gross servicing income

 

 

907

 

 

 

2,655

 

 

 

3,154

 

 

 

 

 

4,651

 

Servicing expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing asset amortization

 

 

—

 

 

 

1,968

 

 

 

—

 

 

 

 

 

3,425

 

Servicing asset impairment

 

 

—

 

 

 

4,914

 

 

 

—

 

 

 

 

 

5,687

 

Loss on sale of mortgage servicing rights

 

 

249

 

 

 

—

 

 

 

249

 

 

 

 

 

—

 

Other servicing expenses

 

 

1,204

 

 

 

538

 

 

 

2,138

 

 

 

 

 

946

 

Gross servicing expenses

 

 

1,453

 

 

 

7,420

 

 

 

2,387

 

 

 

 

 

10,058

 

Net servicing (loss) income

 

$

(546

)

 

$

(4,765

)

 

$

767

 

 

 

 

$

(5,407

)

 
Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights

Data and key economic assumptions related to the Company’s mortgage servicing rights as of June 30, 2017 and December 31, 2016 are as follows:

 

 

 

June 30,

 

 

December 31,

 

 

 

 

2017

 

 

 

2016

 

Unpaid principal balance

 

$

4,245,457

 

 

$

2,833,958

 

Weighted-average prepayment speed (CPR)

 

 

9.10

%

 

 

8.40

%

Estimated impact on fair value of a 10% increase

 

 

(1,942

)

 

 

(1,256

)

Estimated impact on fair value of a 20% increase

 

 

(3,756

)

 

 

(2,434

)

Discount rate

 

 

9.87

%

 

 

9.54

%

Estimated impact on fair value of a 100 bp increase

 

 

(1,907

)

 

 

(1,394

)

Estimated impact on fair value of a 200 bp increase

 

 

(3,669

)

 

 

(2,679

)

Weighted-average coupon interest rate

 

 

3.88

%

 

 

3.59

%

Weighted-average servicing fee (basis points)

 

 

28

 

 

 

27

 

Weighted-average remaining maturity (in months)

 

 

337

 

 

 

328