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

9 Months Ended

Sep. 30, 2016

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				Nine Months Ended
(Dollars in thousands)	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
Increase (decrease) in fair value of MSRs	$	171	$	(1,631)	$	(4,305)	$	(92)
Decay of MSRs		(1,245)		(878)		(3,015)		(2,614)
Gains (losses) related to derivatives	$	(492)	$	1,720	$	4,521	$	2,150
Net effect on statements of income	$	(1,566)	$	(789)	$	(2,799)	$	(556)

Schedule of characteristics and sensitivity analysis of the MSR

	September 30,			December 31,			September 30,
(Dollars in thousands)	2016			2015			2015
Composition of residential loans serviced for others
Fixed-rate mortgage loans		99.5	%		99.4	%		99.4	%
Adjustable-rate mortgage loans		0.5	%		0.6	%		0.6	%
Total		100.0	%		100.0	%		100.0	%
Weighted average life		5.80	years		7.05	years		6.79	years
Constant Prepayment rate (CPR)		12.3	%		9.6	%		10.2	%
Weighted average discount rate		9.8	%		9.8	%		9.8	%
Effect on fair value due to change in interest rates
25 basis point increase	$	2,093		$	1,562		$	1,555
50 basis point increase		3,968			2,950			2,945
25 basis point decrease		(2,398)			(1,866)			(1,883)
50 basis point decrease		(4,845)			(4,021)			(3,964)