XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Residential Mortgage Servicing Rights | 12 Months Ended
--- | ---
Dec. 31, 2023
Transfers and Servicing [Abstract] |
Residential Mortgage Servicing Rights | Residential Mortgage Servicing Rights The Company measures its MSR asset at fair value with changes in fair value reported in residential mortgage banking revenue, net. The following table presents the changes in the Company's residential MSR for the years ended December 31, 2023, 2022, and 2021:
(in thousands) | 2023 |  | 2022 |  | 2021
Balance, beginning of period | $ | 185,017 |  |  | $ | 123,615 |  |  | $ | 92,907 |
Additions for new MSR capitalized | 5,347 |  |  | 24,137 |  |  | 38,522 |
Sale of MSR assets | (57,305) |  |  | — |  |  | — |
Changes in fair value: |  |  |  |  |
Changes due to collection/realization of expected cash flows over time | (17,694) |  |  | (20,272) |  |  | (18,903) |
Changes due to valuation inputs or assumptions (1) | (6,122) |  |  | 57,537 |  |  | 11,089 |
Balance, end of period | $ | 109,243 |  |  | $ | 185,017 |  |  | $ | 123,615 |
(1) The changes in valuation inputs and assumptions principally reflect changes in discount rates and prepayment speeds, which are primarily affected by changes in interest rates. Information related to the serviced loan portfolio as of December 31, 2023, 2022, and 2021 is as follows:
(dollars in thousands) | December 31, 2023 |  | December 31, 2022 |  | December 31, 2021
Balance of loans serviced for others | $ | 8,175,664 |  |  | $ | 13,020,189 |  |  | $ | 12,755,671 |
MSR as a percentage of serviced loans | 1.34 | % |  | 1.42 | % |  | 0.97 | %
The amount of contractually specified servicing fees, late fees and ancillary fees earned, recorded in residential mortgage banking revenue, were $33.4 million, $37.4 million, and $36.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. During the year, the Company closed the sale of $57.3 million in residential mortgage servicing rights associated with $4.3 billion of residential mortgage loans serviced for others, which relates to the non-relationship component of the serviced loan portfolio. Key assumptions used in measuring the fair value of MSR as of December 31, 2023, 2022, and 2021 were as follows:
| December 31, 2023 |  | December 31, 2022 |  | December 31, 2021
Constant prepayment rate | 6.78 | % |  | 6.39 | % |  | 12.75 | %
Discount rate | 10.25 | % |  | 10.06 | % |  | 9.57 | %
Weighted average life (years) | 8.3 |  | 8.7 |  | 5.9
A sensitivity analysis of the current fair value to changes in discount and prepayment speed assumptions as of December 31, 2023 and 2022 is as follows:
| December 31, 2023 |  | December 31, 2022
Constant prepayment rate |  |  |
Effect on fair value of a 10% adverse change | $ | (2,858) |  |  | $ | (4,870) |
Effect on fair value of a 20% adverse change | $ | (5,575) |  |  | $ | (9,518) |
Discount rate |  |  |
Effect on fair value of a 100 basis point adverse change | $ | (4,620) |  |  | $ | (8,229) |
Effect on fair value of a 200 basis point adverse change | $ | (8,888) |  |  | $ | (15,807) |
The sensitivity analysis presents the hypothetical effect on fair value of the MSR, due to the change in assumptions. The effect of such hypothetical change in assumptions generally cannot be extrapolated because the relationship of the change in an assumption to the change in fair value is not linear. Additionally, in the analysis, the impact of an adverse change in one assumption is calculated independent of any impact on other assumptions. In reality, changes in one assumption may change another assumption. The Company has entered into a fair value hedge by purchasing interest rate futures and forward settling mortgage-backed securities to hedge the interest rate risk of MSRs. Refer to Note 19 - Derivatives for further information.

X
- References No definition available. + Details
Name: | us-gaap_TransfersAndServicingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a)(7) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481229/860-50-50-4 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481326/860-20-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b)(2)(ii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481326/860-20-50-3 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481326/860-20-50-4 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 210 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(11)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481229/860-50-50-3 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(4)(ii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481229/860-50-50-3 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(5) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481229/860-50-50-3 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481229/860-50-50-2 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//860/tableOfContent Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481326/860-20-50-3 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (cc) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481326/860-20-50-3 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a)(5)(ii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481326/860-20-50-4 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481326/860-20-50-4 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4D -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481326/860-20-50-4D Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481420/860-30-50-7 Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481229/860-50-50-2 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481229/860-50-50-2 Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481229/860-50-50-4 + Details
Name: | us-gaap_TransfersAndServicingOfFinancialAssetsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration