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

12 Months Ended

Dec. 31, 2020

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)			2020			2019			2018
Increase (decrease) in fair value of MSRs			$	(7,421)		$	(6,976)		$	1,861
Decay of MSRs				(8,793)			(4,589)			(4,215)
Gain related to derivatives				10,177			3,967			(953)
Net effect on statements of income			$	(6,037)		$	(7,598)		$	(3,307)

Schedule of characteristics and sensitivity analysis of the MSR


		December 31,
(Dollars in thousands)		2020			2019
Composition of residential loans serviced for others
Fixed-rate mortgage loans			99.9	%		99.8	%
Adjustable-rate mortgage loans			0.1	%		0.2	%
Total			100.0	%		100.0	%
Weighted average life			6.10	years		6.55	years
Constant Prepayment rate (CPR)			12.3	%		10.3	%
Weighted average discount rate			9.0	%		9.4	%
Effect on fair value due to change in interest rates
25 basis point increase		$	2,744		$	2,477
50 basis point increase			5,520			4,452
25 basis point decrease			(2,497)			(2,938)
50 basis point decrease			(4,114)			(6,228)