XML 60 R34.htm IDEA: XBRL DOCUMENT v3.20.1
Mortgage servicing rights (Tables)
 3 Months Ended
Mar. 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 three months ended March 31, 2020 and 2019:
 
 
Three Months Ended March 31,
 
 
 
2020

 
2019

Carrying value at beginning of period
 
$
75,521

 
$
88,829

Capitalization
 
7,796

 
8,720

Sales
 
—

 
(29,160
)
Change in fair value:
 
 
 
 
Due to pay-offs/pay-downs
 
(4,643
)
 
(1,795
)
Due to change in valuation inputs or assumptions
 
(16,093
)
 
(2,563
)
Carrying value at end of period
 
$
62,581

 
$
64,031
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 three months ended March 31, 2020 and 2019: 
 
 
Three Months Ended March 31,
 
 
 
2020

 
2019

Servicing income:
 
 
 
 
Servicing income
 
$
5,018

 
$
4,751

Change in fair value of mortgage servicing rights
 
(20,736
)
 
(4,358
)
Change in fair value of derivative hedging instruments
 
14,868

 
2,477

Servicing income
 
(850
)
 
2,870

Servicing expenses
 
1,401

 
1,744

Net servicing (loss) income(1)
 
$
(2,251
)
 
$
1,126


(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 March 31, 2020 and December 31, 2019 are as follows: 
 
 
March 31,

 
December 31,

 
 
2020


2019

Unpaid principal balance
 
$
7,048,917

 
$
6,734,496

Weighted-average prepayment speed (CPR)
 
16.32
%
 
10.05
%
Estimated impact on fair value of a 10% increase
 
$
(4,064
)
 
$
(2,839
)
Estimated impact on fair value of a 20% increase
 
$
(7,732
)
 
$
(5,474
)
Discount rate
 
8.21
%
 
9.68
%
Estimated impact on fair value of a 100 bp increase
 
$
(2,470
)
 
$
(3,086
)
Estimated impact on fair value of a 200 bp increase
 
$
(4,751
)
 
$
(5,932
)
Weighted-average coupon interest rate
 
4.13
%
 
4.20
%
Weighted-average servicing fee (basis points)
 
28

 
29

Weighted-average remaining maturity (in months)
 
333

 
335