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

6 Months Ended

Jun. 30, 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				Six Months Ended
(Dollars in thousands)	June 30, 2017		June 30, 2016		June 30, 2017		June 30, 2016
Increase (decrease) in fair value of MSRs	$	(815)	$	(1,870)	$	(370)	$	(4,476)
Decay of MSRs		(1,029)		(990)		(1,832)		(1,769)
Gains related to derivatives	$	829	$	1,968	$	1,095	$	5,013
Net effect on statements of income	$	(1,015)	$	(892)	$	(1,107)	$	(1,232)

Schedule of characteristics and sensitivity analysis of the MSR

	June 30,			December 31,			June 30,
(Dollars in thousands)	2017			2016			2016
Composition of residential loans serviced for others
Fixed-rate mortgage loans		99.7	%		99.6	%		99.5	%
Adjustable-rate mortgage loans		0.3	%		0.4	%		0.5	%
Total		100.0	%		100.0	%		100.0	%
Weighted average life		7.52	years		7.70	years		5.60	years
Constant Prepayment rate (CPR)		8.1	%		7.7	%		12.7	%
Weighted average discount rate		9.6	%		9.8	%		9.8	%
Effect on fair value due to change in interest rates
25 basis point increase	$	1,457		$	1,399		$	2,106
50 basis point increase		2,651			2,557			3,977
25 basis point decrease		(1,783)			(1,713)			(2,334)
50 basis point decrease		(3,914)			(3,670)			(4,492)