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LOAN SERVICING (Tables)
 9 Months Ended
Sep. 30, 2018
Mortgage Servicing Rights [Member]  
Servicing Assets at Fair Value [Line Items]  
Servicing Asset at Amortized Cost
The unpaid principal balance of mortgage loans serviced for others, as of September 30, 2018 and December 31, 2017, is listed below:
TABLE 7.1
(in thousands)
September 30,
2018
 
December 31, 2017
Mortgage loans sold with servicing retained
$
3,802,891

 
$
3,256,548





The following table summarizes activity relating to mortgage loans sold with servicing retained:
TABLE 7.2
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Mortgage loans sold with servicing retained
$
295,243

 
$
305,752

 
$
814,256

 
$
1,469,352

Pretax gains resulting from above loan sales (1)
6,116

 
5,865

 
14,938

 
15,136

Mortgage servicing fees (1)
2,316

 
1,902

 
6,713

 
5,512


(1) Recorded in mortgage banking operations.
Following is a summary of the MSR activity:
TABLE 7.3
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Balance at beginning of period
$
32,970

 
$
24,444

 
$
29,053

 
$
13,521

Fair value of MSRs acquired
—

 
—

 
—

 
8,553

Additions
3,513

 
3,500

 
9,538

 
7,530

Payoffs and curtailments
(526
)
 
(432
)
 
(1,435
)
 
(1,012
)
Impairment charge
(13
)
 
—

 
(13
)
 
—

Amortization
(599
)
 
(626
)
 
(1,798
)
 
(1,706
)
Balance at end of period
$
35,345

 
$
26,886

 
$
35,345

 
$
26,886

Fair value, beginning of period
$
38,603

 
$
27,173

 
$
32,419

 
$
17,546

Fair value, end of period
41,715

 
29,004

 
41,715

 
29,004
Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement
Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:
TABLE 7.4
(dollars in thousands)
September 30,
2018
 
December 31,
2017
Weighted average life (months)
86.4

 
80.4

Constant prepayment rate (annualized)
9.0
%
 
9.9
%
Discount rate
9.9
%
 
9.9
%
Effect on fair value due to change in interest rates:
 
 
 
+0.25%
$
1,305

 
$
1,737

+0.50%
2,295

 
3,220

-0.25%
(1,666
)
 
(1,937
)
-0.50%
(3,775
)
 
(4,007
)
SBA-Guaranteed Loan Servicing [Member]  
Servicing Assets at Fair Value [Line Items]  
Servicing Asset at Amortized Cost
The unpaid principal balance of SBA-guaranteed loans serviced for investors, as of September 30, 2018 and December 31, 2017, was as follows:
TABLE 7.5
(in thousands)
September 30,
2018
 
December 31,
2017
SBA loans sold to investors with servicing retained
$
283,361

 
$
305,977

The following table summarizes activity relating to SBA loans sold with servicing retained:
TABLE 7.6
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
SBA loans sold with servicing retained
$
10,138

 
$
16,443

 
$
33,651

 
$
42,172

Pretax gains resulting from above loan sales (1)
849

 
964

 
3,121

 
1,780

SBA servicing fees (1)
707

 
702

 
2,156

 
1,444

(1) Recorded in non-interest income.
Following is a summary of the activity in SBA servicing rights:
TABLE 7.7
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Balance at beginning of period
$
4,894

 
$
5,284

 
$
5,058

 
$
—

Fair value of servicing rights acquired
—

 
—

 
—

 
5,399

Additions
113

 
391

 
759

 
655

Impairment (charge) / recovery
(422
)
 
(50
)
 
(651
)
 
(50
)
Amortization
(280
)
 
(342
)
 
(861
)
 
(721
)
Balance at end of period
$
4,305

 
$
5,283

 
$
4,305

 
$
5,283

Fair value, beginning of period
$
4,894

 
$
5,299

 
$
5,058

 
$
—

Fair value, end of period
4,305

 
5,283

 
4,305

 
5,283
Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement
Following is a summary of key assumptions and the sensitivity of the SBA loan servicing rights to changes in these assumptions:
TABLE 7.8
 
September 30, 2018
 
December 31, 2017
 
 
 
Decline in fair value due to
 
 
 
Decline in fair value due to
(dollars in thousands)
Actual
 
10% adverse change
 
20% adverse change
 
1% adverse change
 
2% adverse change
 
Actual
 
10% adverse change
 
20% adverse change
 
1% adverse change
 
2% adverse change
Weighted-average life (months)
54.7

 
 
 
 
 
 
 
 
 
63.5

 
 
 
 
 
 
 
 
Constant prepayment rate (annualized)
11.54
%
 
$
(148
)
 
$
(287
)
 
$
—

 
$
—

 
9.29
%
 
$
(145
)
 
$
(284
)
 
$
—

 
$
—

Discount rate
19.37

 
—

 
—

 
(114
)
 
(221
)
 
14.87

 
—

 
—

 
(147
)
 
(286
)