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

12 Months Ended

Dec. 31, 2017

Loan Servicing, Mortgage Origination, and Loans Held for Sale

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

	Year Ended December 31,
(Dollars in thousands)	2017		2016		2015
Increase (decrease) in fair value of MSRs	$	(595)	$	560	$	1,015
Decay of MSRs		(3,762)		(4,153)		(3,371)
Gain (loss) related to derivatives		200		(402)		751
Net effect on statements of income	$	(4,157)	$	(3,995)	$	(1,605)

Schedule of characteristics and sensitivity analysis of the MSR

	December 31,
(Dollars in thousands)	2017			2016
Composition of residential loans serviced for others
Fixed-rate mortgage loans		99.7	%		99.6	%
Adjustable-rate mortgage loans		0.3	%		0.4	%
Total		100.0	%		100.0	%
Weighted average life		7.64	years		7.70	years
Constant Prepayment rate (CPR)		7.7	%		7.7	%
Weighted average discount rate		9.6	%		9.8	%
Effect on fair value due to change in interest rates
25 basis point increase	$	1,485		$	1,399
50 basis point increase		2,664			2,557
25 basis point decrease		(1,850)			(1,713)
50 basis point decrease		(4,014)			(3,670)