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Loan Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2018
Transfers and Servicing [Abstract]  
Schedule of activity for loan servicing rights and the related fair value changes
The following table represents the activity for LSRs and the related fair value changes:
(Dollars in thousands)
 
Commercial
Real Estate
 
Mortgage
 
Total
For the three months ended September 30, 2018
 
 
 
 
 
 
Fair value, beginning of period
 
$
457

 
$
69,907

 
$
70,364

Additions from loans sold with servicing retained
 
51

 
2,035

 
2,086

Changes in fair value due to:
 
 
 
 
 
 
Reductions from pay-offs, pay downs and run-off
 
(28
)
 
(647
)
 
(675
)
Changes in estimates of fair value (1)
 
—

 
932

 
932

Fair value, end of period
 
$
480

 
$
72,227

 
$
72,707

For the nine months ended September 30, 2018
 
 
 
 
 
 
Fair value, beginning of period
 
$
427

 
$
63,414

 
$
63,841

Additions from loans sold with servicing retained
 
139

 
6,198

 
6,337

Changes in fair value due to:
 
0

 
0

 
 
Reductions from pay-offs, pay downs and run-off
 
(86
)
 
(2,039
)
 
(2,125
)
Changes in estimates of fair value (1)
 
—

 
4,654

 
4,654

Fair value, end of period
 
$
480

 
$
72,227

 
$
72,707

Principal balance of loans serviced
 
$
42,070

 
$
6,869,131

 
$
6,911,201

For the three months ended September 30, 2017
 
 
 
 
 
 
Fair value, beginning of period
 
$
486

 
$
64,036

 
$
64,522

Additions from loans sold with servicing retained
 
—

 
2,324

 
2,324

Changes in fair value due to:
 
 
 
 
 
0

Reductions from pay-offs, pay downs and run-off
 
(31
)
 
(579
)
 
(610
)
Changes in estimates of fair value(1)
 
—

 
(4,041
)
 
(4,041
)
Fair value, end of period
 
$
455

 
$
61,740

 
$
62,195

For the nine months ended September 30, 2017
 
 
 
 
 
 
Fair value, beginning of period
 
$
344

 
$
47,741

 
$
48,085

Transfers in based on new accounting policy election(2)
 
—

 
15,891

 
15,891

Additions from loans sold with servicing retained
 
188

 
6,273

 
6,461

Changes in fair value due to:
 
 
 
 
 
 
Reductions from pay-offs, pay downs and run-off
 
(77
)
 
(1,803
)
 
(1,880
)
Change in estimates of fair value(1)
 
—

 
(6,362
)
 
(6,362
)
Fair value, end of period
 
$
455

 
$
61,740

 
$
62,195

Principal balance of loans serviced
 
$
41,798

 
$
7,102,485

 
$
7,144,283

(1) 
Represents estimated LSR value change resulting primarily from market-driven changes in interest rates and prepayments. Included in "Net gain on sale of loans and other mortgage banking revenue" in the Consolidated Statements of Income.
(2) 
The Corporation elected as of January 1, 2017 to account for all loan servicing rights previously accounted for at the lower of cost or fair value under the fair value measurement method. For further information on this election, refer to Note 1, Basis of Presentation and Significant Accounting Policies.
Schedule of assumptions included in loan servicing rights
The following table presents assumptions utilized in determining the fair value of loan servicing rights as of September 30, 2018 and December 31, 2017.
 
 
Mortgage
As of September 30, 2018
 
 

Prepayment speed
 
0.0 - 25.74%

Weighted average ("WA") discount rate
 
10.1
%
WA cost to service/per year
 
$
66

WA ancillary income/per year
 
$
31

WA float range
 
2.3
%
As of December 31, 2017
 
 

Prepayment speed
 
0.0 - 38.8%

WA discount rate
 
10.1
%
WA cost to service/per year
 
$
66

WA ancillary income/per year
 
$
31

WA float range
 
1.6
%