XML 107 R33.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans sales and securitizations (Tables)
 3 Months Ended
Sep. 30, 2013
Loan Sales and Securitizations [Abstract]  
Summarizes activity relating to residential mortgage loans sold with servicing retained

The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the three-month and nine-month periods ended September 30, 2013 and 2012:

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
(dollar amounts in thousands) 2013  2012  2013  2012
Residential mortgage loans sold with servicing retained$ 853,287 $ 889,769 $ 2,603,414 $ 2,746,068
Pretax gains resulting from above loan sales (1)  23,224   30,195   91,519   83,849
             
(1)Recorded in mortgage banking income.      
Summarizes activity relating to loans sold with servicing retained using the fair value method

The following tables summarize the changes in MSRs recorded using either the fair value method or the amortization method for the three-month and nine-month periods ended September 30, 2013 and 2012:

   Three Months Ended  Nine Months Ended
Fair Value Method: September 30,  September 30,
(dollar amounts in thousands) 2013  2012  2013  2012
Fair value, beginning of period$ 37,544 $ 45,061 $ 35,202 $ 65,001
Change in fair value during the period due to:           
 Time decay (1)  (727)   (633)   (1,961)   (2,282)
 Payoffs (2)  (3,015)   (3,043)   (9,774)   (11,334)
 Changes in valuation inputs or assumptions (3)  304   (4,764)   10,639   (14,764)
Fair value, end of period:$ 34,106 $ 36,621 $ 34,106 $ 36,621
Weighted-average life (years)  4.1   3.0   4.1   3.0
             
(1)Represents decrease in value due to passage of time, including the impact from both regularly scheduled loan principal payments and partial loan paydowns.
(2)Represents decrease in value associated with loans that paid off during the period.
(3)Represents change in value resulting primarily from market-driven changes in interest rates and prepayment spreads.
Summarizes activity relating to loans sold with servicing retained using the amortization method
             
   Three Months Ended  Nine Months Ended
Amortization Method: September 30,  September 30,
(dollar amounts in thousands) 2013  2012  2013  2012
Carrying value, beginning of period$ 117,978 $ 83,236 $ 85,545 $ 72,434
New servicing assets created  9,864   7,725   28,614   26,081
Impairment (charge) / recovery  (132)   (14,779)   21,459   (13,886)
Amortization and other  (3,040)   (4,729)   (10,948)   (13,176)
Carrying value, end of period$ 124,670 $ 71,453 $ 124,670 $ 71,453
Fair value, end of period$ 136,590 $ 71,453 $ 136,590 $ 71,453
Weighted-average life (years)  6.3   2.7   6.3   2.7

Changes in the carrying value of automobile loan servicing rights for the three-month and nine-month periods ended September 30, 2013 and 2012, and the fair value at the end of each period were as follows:
Summary of key assumptions and the sensitivity of the servicing rights value to changes in the assumptions

For MSRs under the fair value method, a summary of key assumptions and the sensitivity of the MSR value at September 30, 2013 and December 31, 2012, to changes in these assumptions follows:

 

 September 30, 2013 December 31, 2012
     Decline in fair value due to     Decline in fair value due to
     10%  20%     10%  20%
     adverse  adverse     adverse  adverse
(dollar amounts in thousands) Actual change  change Actual  change  change
Constant prepayment rate (annualized)  11.90%$ (2,100) $ (4,180)  19.52% $ (2,608) $ (5,051)
Spread over forward interest rate swap rates  1,236bps  (1,424)   (2,849)  1,288bps   (1,290)   (2,580)

For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value at September 30, 2013 and December 31, 2012, to changes in these assumptions follows:

 

 September 30, 2013 December 31, 2012
     Decline in fair value due to     Decline in fair value due to
     10%  20%     10%  20%
     adverse  adverse     adverse  adverse
(dollar amounts in thousands) Actual change  change Actual  change  change
Constant prepayment rate (annualized)  7.50%$ (7,283) $ (14,154)  15.45% $ (4,936) $ (9,451)
Spread over forward interest rate swap rates  873bps  (5,351)   (10,702)  940bps   (3,060)   (6,119)

A summary of key assumptions and the sensitivity of the automobile loan servicing rights value to changes in these assumptions at September 30, 2013 and December 31, 2012 follows:

 

 September 30, 2013 December 31, 2012
     Decline in fair value due to     Decline in fair value due to
     10%  20%     10%  20%
     adverse  adverse     adverse  adverse
(dollar amounts in thousands) Actual change  change Actual  change  change
Constant prepayment rate (annualized)  14.66%$ (660) $ (1,334)  13.80% $ (880) $ (1,771)
Spread over forward interest rate swap rates  500bps  (9)   (18)  500bps   (18)   (36)