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

3 Months Ended

Mar. 31, 2017

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
(Dollars in thousands)	March 31, 2017		March 31, 2016
Increase (decrease) in fair value of MSRs	$	444	$	(2,606)
Decay of MSRs		(803)		(780)
Gains related to derivatives	$	266	$	3,045
Net effect on statements of income	$	(93)	$	(341)

Schedule of characteristics and sensitivity analysis of the MSR

	March 31,			December 31,			March 31,
(Dollars in thousands)	2017			2016			2016
Composition of residential loans serviced for others
Fixed-rate mortgage loans		99.6	%		99.6	%		99.4	%
Adjustable-rate mortgage loans		0.4	%		0.4	%		0.6	%
Total		100.0	%		100.0	%		100.0	%
Weighted average life		7.68	years		7.70	years		6.10	years
Constant Prepayment rate (CPR)		7.8	%		7.7	%		11.8	%
Weighted average discount rate		9.8	%		9.8	%		9.8	%
Effect on fair value due to change in interest rates
25 basis point increase	$	1,375		$	1,399		$	1,884
50 basis point increase		2,431			2,557			3,532
25 basis point decrease		(1,746)			(1,713)			(2,206)
50 basis point decrease		(3,774)			(3,670)			(4,477)