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

12 Months Ended

Dec. 31, 2021

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)		2021			2020			2019
Increase (decrease) in fair value of MSRs		$	9,930		$	(7,421)		$	(6,976)
Decay of MSRs			(14,863)			(8,793)			(4,589)
Gain (loss) related to derivatives			(4,892)			10,177			3,967
Net effect on statements of income		$	(9,825)		$	(6,037)		$	(7,598)

Schedule of characteristics and sensitivity analysis of the MSR


		December 31,
(Dollars in thousands)		2021			2020
Composition of residential loans serviced for others
Fixed-rate mortgage loans			99.9	%		99.9	%
Adjustable-rate mortgage loans			0.1	%		0.1	%
Total			100.0	%		100.0	%
Weighted average life			7.35	years		6.10	years
Constant Prepayment rate (CPR)			8.4	%		12.3	%
Weighted average discount rate			9.0	%		9.0	%
Effect on fair value due to change in interest rates
25 basis point increase		$	3,961		$	2,744
50 basis point increase			7,261			5,520
25 basis point decrease			(4,371)			(2,497)
50 basis point decrease			(8,966)			(4,114)