Loan Servicing, Mortgage Origination, and Loans Held for Sale (Tables)

6 Months Ended

Jun. 30, 2015

Loan Servicing, Mortgage Origination, and Loans Held for Sale

Summary of changes in the fair value of MSRs and its offsetting hedge

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2015			2014			2015			2014
Increase (decrease) in fair value of MSRs	$	2,374		$	(483	)	$	1,539		$	(692	)
Decay of MSRs	(899		)	(621		)	(1,736		)	(1,076		)
Gains (losses) related to derivatives	(1,092		)	1,140			430			1,935
Net effect on Statements of Income	$	383		$	36		$	233		$	167

Schedule of analysis of the activity in the MSRs

	June 30,			December 31,			June 30,
(Dollars in thousands)	2015			2014			2014
Composition of residential loans serviced for others
Fixed-rate mortgage loans	99.3		%	99.2		%	99.1		%
Adjustable-rate mortgage loans	0.7		%	0.8		%	0.9		%
Total	100.0		%	100.0		%	100.0		%
Weighted average life	7.38 years			6.30 years			6.01 years
Constant prepayment rate	9.0		%	11.4		%	12.1		%
Weighted average discount rate	9.7		%	9.7		%	9.4		%
Effect on fair value due to change in interest rates:
25 basis point increase	$	1,335		$	1,365		$	1,311
50 basis point increase	2,490			2,555			2,499
25 basis point decrease	(1,567		)	(1,562		)	(1,470		)
50 basis point decrease	(3,313		)	(3,221		)	(2,736		)