XML 52 R37.htm IDEA: XBRL DOCUMENT v3.19.1
Mortgage Servicing Rights (Tables)
 3 Months Ended
Mar. 31, 2019
Transfers and Servicing [Abstract]  
Servicing Asset at Amortized Cost
The following table summarizes the Corporation’s activity related to mortgage servicing rights (“MSRs”) for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31,
(dollars in thousands)
2019
 
2018
Balance, beginning of period
$
5,047

 
$
5,861

Additions
—

 
16

Amortization
(120
)
 
(221
)
(Impairment) / Recovery
(17
)
 
50

Balance, end of period
$
4,910

 
$
5,706

 
 
 
 
Fair value
$
5,754

 
$
6,791

Residential mortgage loans serviced for others
$
564,884

 
$
634,970
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets
As of March 31, 2019, and December 31, 2018, key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10% and 20% adverse changes in those assumptions are as follows:
(dollars in thousands)
March 31,
2019
 
December 31,
2018
Fair value amount of MSRs
$
5,754

 
$
6,277

Weighted average life (in years)
6.3

 
6.7

Prepayment speeds (constant prepayment rate)(1)
10.2
%
 
9.1
%
Impact on fair value:
 
 
 
10% adverse change
$
(161
)
 
$
(124
)
20% adverse change
$
(324
)
 
$
(257
)
Discount rate
9.55
%
 
9.55
%
Impact on fair value:
 
 
 
10% adverse change
$
(207
)
 
$
(234
)
20% adverse change
$
(400
)
 
$
(451
)
 
(1) Represents the weighted average prepayment rate for the life of the MSR asset.