MORTGAGE BANKING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2018

MORTGAGE BANKING ACTIVITIES

Activity for Mortgage Loans Held for Sale, at fair value

	Three Months Ended
	March 31,
(in thousands)	2018		2017
Balance, beginning of period	$	5,761	$	11,662
Origination of mortgage loans held for sale		29,410		33,245
Proceeds from the sale of mortgage loans held for sale		(31,452)		(40,691)
Net gain on sale of mortgage loans held for sale		777		977
Balance, end of period	$	4,496	$	5,193

Components of Mortgage Banking Income

	Three Months Ended
	March 31,
(in thousands)	2018		2017
Net gain realized on sale of mortgage loans held for sale	$	597	$	788
Net change in fair value recognized on loans held for sale		(9)		(7)
Net change in fair value recognized on rate lock loan commitments		133		319
Net change in fair value recognized on forward contracts		56		(123)
Net gain recognized		777		977
Loan servicing income		605		536
Amortization of mortgage servicing rights		(362)		(353)
Net servicing income recognized		243		183
Total Mortgage Banking income	$	1,020	$	1,160

Activity for capitalized mortgage servicing rights

	Three Months Ended
	March 31,
(in thousands)	2018		2017
Balance, beginning of period	$	5,044	$	5,180
Additions		243		331
Amortized to expense		(362)		(353)
Balance, end of period	$	4,925	$	5,158

Other information relating to mortgage servicing rights

(in thousands)	March 31, 2018			December 31, 2017
Fair value of mortgage servicing rights portfolio	$	8,841		$	7,984
Monthly weighted average prepayment rate of unpaid principal balance*		176	%		200	%
Discount rate		10	%		10	%
Weighted average default rate		4.08	%		3.75	%
Weighted average life in years		5.99			5.49

* Rates are applied to individual tranches with similar characteristics.

Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives

	March 31, 2018				December 31, 2017
	Notional				Notional
(in thousands)	Amount		Fair Value		Amount		Fair Value
Included in Mortgage loans held for sale:
Mortgage loans held for sale, at fair value	$	4,412	$	4,496	$	5,668	$	5,761
Included in other assets:
Rate lock loan commitments	$	21,663	$	443	$	14,696	$	310
Mandatory forward contracts		21,604		47		—		—
Included in other liabilities:
Mandatory forward contracts	$	—	$	—	$	17,159	$	9