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

9 Months Ended

Sep. 30, 2018

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, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Increase (decrease) in fair value of MSRs	$	683	$	(684)	$	3,628	$	(1,055)
Decay of MSRs		(1,201)		(977)		(3,271)		(2,809)
Gain (loss) related to derivatives		(559)		(85)	$	(2,452)	$	1,010
Net effect on statements of income	$	(1,077)	$	(1,746)	$	(2,095)	$	(2,854)

Schedule of characteristics and sensitivity analysis of the MSR

	September 30,			December 31,			September 30,
(Dollars in thousands)	2018			2017			2017
Composition of residential loans serviced for others
Fixed-rate mortgage loans		99.8	%		99.7	%		99.7	%
Adjustable-rate mortgage loans		0.2	%		0.3	%		0.3	%
Total		100.0	%		100.0	%		100.0	%
Weighted average life		8.67	years		7.64	years		7.38	years
Constant Prepayment rate (CPR)		6.0	%		7.7	%		8.3	%
Weighted average discount rate		9.4	%		9.6	%		9.5	%
Effect on fair value due to change in interest rates
25 basis point increase	$	816		$	1,485		$	1,605
50 basis point increase		1,423			2,664			2,934
25 basis point decrease		(1,261)			(1,850)			(1,940)
50 basis point decrease		(2,892)			(4,014)			(4,249)