XML 41 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 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 nine months ended September 30, 2017 and 2016:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2017

 

 

 

2016

 

 

 

2017

 

 

 

2016

 

Carrying value prior to policy change

 

$

48,464

 

 

$

40,382

 

 

$

32,070

 

 

$

29,711

 

Fair value impact of change in accounting policy (See

   Note 1)

 

 

—

 

 

 

—

 

 

 

1,011

 

 

 

—

 

Carrying value at beginning of period

 

 

48,464

 

 

 

40,382

 

 

 

33,081

 

 

 

29,711

 

Capitalization

 

 

15,965

 

 

 

11,107

 

 

 

45,624

 

 

 

30,890

 

Amortization

 

 

—

 

 

 

(2,796

)

 

 

—

 

 

 

(6,221

)

Sales

 

 

—

 

 

 

—

 

 

 

(11,935

)

 

 

—

 

Impairment

 

 

—

 

 

 

(2,402

)

 

 

—

 

 

 

(8,089

)

Change in fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due to pay-offs/pay-downs

 

 

(975

)

 

 

—

 

 

 

(1,772

)

 

 

—

 

Due to change in valuation inputs or assumptions

 

 

(408

)

 

 

—

 

 

 

(1,952

)

 

 

—

 

Carrying value at June 30

 

$

63,046

 

 

$

46,291

 

 

$

63,046

 

 

$

46,291

 

 
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 nine months ended September 30, 2017 and 2016, respectively:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2017

 

 

 

2016

 

 

 

2017

 

 

 

2016

 

Servicing income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing income

 

$

3,463

 

 

$

3,661

 

 

$

8,958

 

 

$

8,312

 

Change in fair value of mortgage servicing rights

 

 

(1,383

)

 

 

—

 

 

 

(3,724

)

 

 

—

 

Change in fair value of mortgage servicing rights hedging

    instruments

 

 

490

 

 

 

—

 

 

 

490

 

 

 

—

 

Gross servicing income

 

 

2,570

 

 

 

3,661

 

 

 

5,724

 

 

 

8,312

 

Servicing expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Servicing asset amortization

 

 

—

 

 

 

2,796

 

 

 

—

 

 

 

6,221

 

Servicing asset impairment

 

 

—

 

 

 

2,402

 

 

 

—

 

 

 

8,089

 

Loss on sale of mortgage servicing rights

 

 

—

 

 

 

—

 

 

 

249

 

 

 

—

 

Other servicing expenses

 

 

1,043

 

 

 

686

 

 

 

3,181

 

 

 

1,632

 

Gross servicing expenses

 

 

1,043

 

 

 

5,884

 

 

 

3,430

 

 

 

15,942

 

Net servicing income (loss)

 

$

1,527

 

 

$

(2,223

)

 

$

2,294

 

 

$

(7,630

)

 
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 September 30, 2017 and December 31, 2016 are as follows:

 

 

 

September 30,

 

 

December 31,

 

 

 

 

2017

 

 

 

2016

 

Unpaid principal balance

 

$

5,549,662

 

 

$

2,833,958

 

Weighted-average prepayment speed (CPR)

 

 

9.30

%

 

 

8.40

%

Estimated impact on fair value of a 10% increase

 

 

(2,579

)

 

 

(1,256

)

Estimated impact on fair value of a 20% increase

 

 

(4,985

)

 

 

(2,434

)

Discount rate

 

 

9.79

%

 

 

9.54

%

Estimated impact on fair value of a 100 bp increase

 

 

(2,486

)

 

 

(1,394

)

Estimated impact on fair value of a 200 bp increase

 

 

(4,782

)

 

 

(2,679

)

Weighted-average coupon interest rate

 

 

3.93

%

 

 

3.59

%

Weighted-average servicing fee (basis points)

 

 

28

 

 

 

27

 

Weighted-average remaining maturity (in months)

 

 

337

 

 

 

328