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Mortgage servicing rights
 12 Months Ended
Dec. 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 years ended December 31, 2019, 2018, and 2017:
 
 
Year Ended December 31,
 
 
 
2019

 
2018

 
2017

Carrying value at beginning of period
 
$
88,829

 
$
76,107

 
$
32,070

Fair value impact of change in accounting policy (See Note 1)
 
—

 
—

 
1,011

Carrying value at beginning of period
 
88,829

 
76,107

 
33,081

Capitalization
 
42,151

 
54,913

 
58,984

Sales
 
(29,160
)
 
(39,428
)
 
(11,686
)
Loss on sale
 
—

 
—

 
(249
)
Change in fair value:
 
 
 
 
 
 
Due to pay-offs/pay-downs
 
(16,350
)
 
(11,062
)
 
(3,104
)
Due to change in valuation inputs or assumptions
 
(9,949
)
 
8,299

 
(919
)
Carrying value at end of period
 
$
75,521

 
$
88,829

 
$
76,107



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, 2019, 2018, and 2017: 
 
 
Year Ended December 31,
 
 
 
2019

 
2018

 
2017

Servicing income:
 
 
 
 
 
 
Servicing income
 
$
17,677

 
$
20,591

 
$
13,168

Change in fair value of mortgage servicing rights
 
(26,299
)
 
(2,763
)
 
(4,023
)
Change in fair value of derivative hedging instruments
 
9,310

 
(5,910
)
 
599

Servicing income
 
688

 
11,918

 
9,744

Servicing expenses:
 
 
 
 
 
 
Loss on sale of mortgage servicing rights, related hedges and
    transaction costs on sale
 
—

 
—

 
249

Other servicing expenses
 
6,832

 
7,675

 
4,896

Total servicing expenses
 
6,832

 
7,675

 
5,145

Net servicing (loss) income(1)
 
$
(6,144
)
 
$
4,243

 
$
4,599


(1) - Excludes benefit of custodial service related noninterest bearing deposits held by the Bank.
Data and key economic assumptions related to the Company’s mortgage servicing rights as of December 31, 2019 and 2018 are as follows: 
 
 


 
December 31,

 
 
2019


2018

Unpaid principal balance
 
$
6,734,496

 
$
6,755,114

Weighted-average prepayment speed (CPR)
 
10.05
%
 
8.58
%
Estimated impact on fair value of a 10% increase
 
$
(2,839
)
 
$
(2,072
)
Estimated impact on fair value of a 20% increase
 
$
(5,474
)
 
$
(4,006
)
Discount rate
 
9.68
%
 
10.45
%
Estimated impact on fair value of a 100 bp increase
 
$
(3,086
)
 
$
(2,505
)
Estimated impact on fair value of a 200 bp increase
 
$
(5,932
)
 
$
(4,807
)
Weighted-average coupon interest rate
 
4.20
%
 
4.21
%
Weighted-average servicing fee (basis points)
 
29

 
30

Weighted-average remaining maturity (in months)
 
335

 
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 17, "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, the Company generally continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. During the years ended December 31, 2019, 2018, and 2017, the Company sold $29,160, $39,428, and $11,686 of mortgage servicing rights on $2,034,374, $3,181,483, and $1,086,465 of serviced mortgage loans, respectively. There was not a significant gain or loss recognized in connection with the sales during the years ended December 31, 2019 or 2018. As of December 31, 2019 and 2018, there were no loans being serviced that related to the bulk sale of mortgage servicing rights. As of December 31, 2019 and 2018, mortgage escrow deposits totaled to $92,610 and $53,468, respectively.