XML 55 R16.htm IDEA: XBRL DOCUMENT
v3.20.1

Mortgage Servicing Rights | 3 Months Ended
--- | ---
Mar. 31, 2020
Transfers and Servicing [Abstract] |
Mortgage Servicing Rights | Mortgage Servicing Rights (In Thousands) The Company retains the right to service certain mortgage loans that it sells to secondary market investors. These mortgage servicing rights (“MSRs”) are recognized as a separate asset on the date the corresponding mortgage loan is sold. MSRs are amortized in proportion to and over the period of estimated net servicing income. These servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is recognized through a valuation allowance in the amount that unamortized cost exceeds fair value. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in valuation allowances related to servicing rights are reported in mortgage banking income on the Consolidated Statements of Income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. There were $9,571 of valuation adjustments on MSRs during the three months ended March 31, 2020, primarily arising on account of the difference between actual prepayment speeds and the Company’s assumptions with respect to prepayment speeds; no valuation adjustments were recognized during the three months ended March 31, 2019. A continued decline in mortgage interest rates and an increase in actual prepayment speeds may cause additional negative adjustments to the valuation of the Company’s MSRs. Changes in the Company’s MSRs were as follows:
Balance at January 1, 2020 | $ | 53,208 |
Capitalization | 4,945 |
Amortization | (2,217 | )
Valuation adjustment | (9,571 | )
Balance at March 31, 2020 | $ | 46,365 |
Data and key economic assumptions related to the Company’s MSRs are as follows as of the dates presented:
| March 31, 2020 |  | December 31, 2019 |
Unpaid principal balance | $ | 5,051,174 |  |  | $ | 4,871,155 |  |
Weighted-average prepayment speed (CPR) | 13.51 | % |  | 11.48 | % |
Estimated impact of a 10% increase | $ | (1,675 | ) |  | $ | (2,469 | ) |
Estimated impact of a 20% increase | (3,234 | ) |  | (4,774 | ) |
Discount rate | 9.73 | % |  | 9.69 | % |
Estimated impact of a 10% increase | $ | (2,701 | ) |  | $ | (2,027 | ) |
Estimated impact of a 20% increase | (5,203 | ) |  | (3,908 | ) |
Weighted-average coupon interest rate | 4.01 | % |  | 4.04 | % |
Weighted-average servicing fee (basis points) | 29.62 |  |  | 29.20 |  |
Weighted-average remaining maturity (in years) | 5.65 |  | 6.35 |
The Company recorded servicing fees of $2,623 and $2,254 for the three months ended March 31, 2020 and 2019, respectively, which are included in “Mortgage banking income” in the Consolidated Statements of Income. The Company recorded servicing fees of $2,623 and $2,254 for the three months ended March 31, 2020 and 2019, respectively.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -URI http://asc.fasb.org/topic&trid=2197590 + Details
Name: | us-gaap_TransfersAndServicingOfFinancialAssetsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration