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

3 Months Ended

Mar. 31, 2020

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, 2020		March 31, 2019
Decrease in fair value of MSRs	$	(4,919)	$	(2,357)
Decay of MSRs		(1,204)		(886)
Gain related to derivatives		9,607		1,280
Net effect on statements of income	$	3,484	$	(1,963)

Schedule of characteristics and sensitivity analysis of the MSR

	March 31,			December 31,			March 31,
(Dollars in thousands)	2020			2019			2019
Composition of residential loans serviced for others
Fixed-rate mortgage loans		99.9	%		99.8	%		99.8	%
Adjustable-rate mortgage loans		0.1	%		0.2	%		0.2	%
Total		100.0	%		100.0	%		100.0	%
Weighted average life		5.98	years		6.55	years		7.08	years
Constant Prepayment rate (CPR)		11.8	%		10.3	%		8.8	%
Weighted average discount rate		9.6	%		9.4	%		9.4	%
Effect on fair value due to change in interest rates
25 basis point increase	$	2,652		$	2,477		$	2,044
50 basis point increase		4,897			4,452			3,747
25 basis point decrease		(2,971)			(2,938)			(2,438)
50 basis point decrease		(6,027)			(6,228)			(5,171)