Mortgage servicing rights (Tables)

12 Months Ended

Dec. 31, 2020

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 years ended December 31, 2020, 2019, and 2018:

	Year Ended December 31,
	2020		2019		2018
Carrying value at beginning of period	$	75,521	$	88,829	76,107
Capitalization	47,025		42,151		54,913
Mortgage servicing rights acquired from Franklin, at fair value	5,111		—
Sales	—		(29,160)		(39,428)
Change in fair value:
Due to pay-offs/pay-downs	(27,834)		(16,350)		(11,062)
Due to change in valuation inputs or assumptions	(19,826)		(9,949)		8,299
Carrying value at end of period	$	79,997	$	75,521	$	88,829

Schedule of Servicing Income and Expense Included in Mortgage Banking Income

The following table summarizes servicing income and expense, which are included in 'Mortgage banking income' and 'Other noninterest expense', respectively, within the Mortgage segment operating results for the years ended December 31, 2020, 2019, and 2018: 

	Year Ended December 31,
	2020		2019		2018
Servicing income:
Servicing income	$	22,128	$	17,677	$	20,591
Change in fair value of mortgage servicing rights	(47,660)		(26,299)		(2,763)
Change in fair value of derivative hedging instruments	13,286		9,310		(5,910)
Servicing income	(12,246)		688		11,918
Servicing expenses	7,890		6,832		7,675
Net servicing (loss) income (1)	$	(20,136)	$	(6,144)	$	4,243

(1) Excludes benefit of custodial service related noninterest-bearing deposits held by the Bank.

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 December 31, 2020 and 2019 are as follows: 

	December 31,
	2020			2019
Unpaid principal balance	$	9,787,657		$	6,734,496
Weighted-average prepayment speed (CPR)	14.07		%	10.05		%
Estimated impact on fair value of a 10% increase	$	(4,493)		$	(2,839)
Estimated impact on fair value of a 20% increase	$	(8,599)		$	(5,474)
Discount rate	11.49		%	9.68		%
Estimated impact on fair value of a 100 bp increase	$	(2,942)		$	(3,086)
Estimated impact on fair value of a 200 bp increase	$	(5,674)		$	(5,932)
Weighted-average coupon interest rate	3.58		%	4.20		%
Weighted-average servicing fee (basis points)	28			29
Weighted-average remaining maturity (in months)	328			335