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Mortgage servicing rights
 3 Months Ended
Mar. 31, 2019
Transfers and Servicing of Financial Assets [Abstract]  
Mortgage servicing rights
Mortgage servicing rights:
Changes in the Company’s mortgage servicing rights were as follows for three months ended March 31, 2019 and 2018:
 
 
Three Months Ended March 31,
 
 
 
2019

 
2018

Carrying value at beginning of period
 
$
88,829

 
$
76,107

Capitalization
 
8,720

 
13,510

Sales
 
(29,160
)
 
—

Change in fair value:
 
 
 
 
Due to pay-offs/pay-downs
 
(1,795
)
 
(3,060
)
Due to change in valuation inputs or assumptions
 
(2,563
)
 
6,603

Carrying value at period end
 
$
64,031

 
$
93,160


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 months ended March 31, 2019 and 2018, respectively: 
 
 
Three Months Ended March 31,
 
 
 
2019

 
2018

Servicing income:
 
 
 
 
Servicing income
 
$
4,751

 
$
4,793

Change in fair value of mortgage servicing rights
 
(4,358
)
 
3,543

Change in fair value of derivative hedging instruments
 
2,477

 
(5,256
)
Servicing income
 
2,870

 
3,080

Servicing expenses
 
1,744

 
1,795

Net servicing income
 
$
1,126

 
$
1,285


Data and key economic assumptions related to the Company’s mortgage servicing rights as of March 31, 2019 and December 31, 2018 are as follows: 
 
 
March 31,

 
December 31,

 
 
2019


2018

Unpaid principal balance
 
$
5,221,109

 
$
6,755,114

Weighted-average prepayment speed (CPR)
 
9.83
%
 
8.58
%
Estimated impact on fair value of a 10% increase
 
$
(2,493
)
 
$
(2,072
)
Estimated impact on fair value of a 20% increase
 
$
(4,813
)
 
$
(4,006
)
Discount rate
 
8.99
%
 
10.45
%
Estimated impact on fair value of a 100 bp increase
 
$
(2,701
)
 
$
(2,505
)
Estimated impact on fair value of a 200 bp increase
 
$
(5,181
)
 
$
(4,807
)
Weighted-average coupon interest rate
 
4.42
%
 
4.21
%
Weighted-average servicing fee (basis points)
 
29


30

Weighted-average remaining maturity (in months)
 
319

 
325


The Company hedges the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights. See Note 10, "Derivatives" for additional information on these hedging instruments.
From time to time, the Company enters agreements to sell certain tranches of mortgage servicing rights. Upon consummation of the sale, occasionally the Company continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. During the three months ended March 31, 2019, the Company sold $29,160 of mortgage servicing rights on $2,034,374 of serviced mortgage loans. There was not a material gain or loss recognized in connection with this sale. As of March 31, 2019, there were $2,015,273 of mortgage loans being serviced related to this transaction. There were no sales of mortgage servicing rights during the three months ended March 31, 2018. As of March 31, 2019 and December 31, 2018, mortgage escrow deposits totaled to $70,121 and $53,468, respectively.