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Mortgage Servicing Rights | 6 Months Ended
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Jun. 30, 2017
Transfers And Servicing Of Financial Assets [Abstract] |
Mortgage servicing rights | Note (6)—Mortgage servicing rights: Changes in the Company’s mortgage servicing rights were as follows for the three and six months ended June 30, 2017 and 2016:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  |  | 2017 |  |  |  | 2016 |  |  |  | 2017 |  |  |  | 2016 |
Carrying value prior to policy change |  | $ | 47,593 |  |  | $ | 36,611 |  |  | $ | 32,070 |  |  | $ | 29,711 |
Fair value impact of change in accounting policy (See Note 1) |  |  | — |  |  |  | — |  |  |  | 1,011 |  |  |  | — |
Carrying value at beginning of period |  |  | 47,593 |  |  |  | 36,611 |  |  |  | 33,081 |  |  |  | 29,711 |
Capitalization |  |  | 14,646 |  |  |  | 10,653 |  |  |  | 29,659 |  |  |  | 19,783 |
Amortization |  |  | — |  |  |  | (1,968 | ) |  |  | — |  |  |  | (3,425 | )
Sales |  |  | (11,935 | ) |  |  | — |  |  |  | (11,935 | ) |  |  | — |
Impairment |  |  | — |  |  |  | (4,914 | ) |  |  | — |  |  |  | (5,687 | )
Change in fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due to pay-offs/pay-downs |  |  | (532 | ) |  |  | — |  |  |  | (797 | ) |  |  | — |
Due to change in valuation inputs or assumptions |  |  | (1,308 | ) |  |  | — |  |  |  | (1,544 | ) |  |  | — |
Carrying value at June 30 |  | $ | 48,464 |  |  | $ | 40,382 |  |  | $ | 48,464 |  |  | $ | 40,382 |
The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the three and six months ended June 30, 2017 and 2016, respectively:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  |  | 2017 |  |  |  | 2016 |  |  |  | 2017 |  |  |  |  |  | 2016 |
Servicing income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Servicing income |  | $ | 2,747 |  |  | $ | 2,655 |  |  | $ | 5,495 |  |  |  |  | $ | 4,651 |
Change in fair value of mortgage servicing rights |  |  | (1,840 | ) |  |  | — |  |  |  | (2,341 | ) |  |  |  |  | — |
Gross servicing income |  |  | 907 |  |  |  | 2,655 |  |  |  | 3,154 |  |  |  |  |  | 4,651 |
Servicing expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Servicing asset amortization |  |  | — |  |  |  | 1,968 |  |  |  | — |  |  |  |  |  | 3,425 |
Servicing asset impairment |  |  | — |  |  |  | 4,914 |  |  |  | — |  |  |  |  |  | 5,687 |
Loss on sale of mortgage servicing rights |  |  | 249 |  |  |  | — |  |  |  | 249 |  |  |  |  |  | — |
Other servicing expenses |  |  | 1,204 |  |  |  | 538 |  |  |  | 2,138 |  |  |  |  |  | 946 |
Gross servicing expenses |  |  | 1,453 |  |  |  | 7,420 |  |  |  | 2,387 |  |  |  |  |  | 10,058 |
Net servicing (loss) income |  | $ | (546 | ) |  | $ | (4,765 | ) |  | $ | 767 |  |  |  |  | $ | (5,407 | )
Data and key economic assumptions related to the Company’s mortgage servicing rights as of June 30, 2017 and December 31, 2016 are as follows:
|  | June 30, |  |  | December 31, |
|  |  | 2017 |  |  |  | 2016 |
Unpaid principal balance |  | $ | 4,245,457 |  |  | $ | 2,833,958 |
Weighted-average prepayment speed (CPR) |  |  | 9.10 | % |  |  | 8.40 | %
Estimated impact on fair value of a 10% increase |  |  | (1,942 | ) |  |  | (1,256 | )
Estimated impact on fair value of a 20% increase |  |  | (3,756 | ) |  |  | (2,434 | )
Discount rate |  |  | 9.87 | % |  |  | 9.54 | %
Estimated impact on fair value of a 100 bp increase |  |  | (1,907 | ) |  |  | (1,394 | )
Estimated impact on fair value of a 200 bp increase |  |  | (3,669 | ) |  |  | (2,679 | )
Weighted-average coupon interest rate |  |  | 3.88 | % |  |  | 3.59 | %
Weighted-average servicing fee (basis points) |  |  | 28 |  |  |  | 27 |
Weighted-average remaining maturity (in months) |  |  | 337 |  |  |  | 328 |
From time to time, the Company enters agreements to sell certain tranches of mortgage servicing rights. Upon consummation of the sale, the Company continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. During the three and six months ended June 30, 2017, the Company sold $11,935 of mortgage servicing rights on $1,086,465 of serviced mortgage loans. As of June 30, 2017, the Company subserviced $1,065,761 related to this transaction. At December 31, 2016, the Company subserviced $3,332,903 relating to mortgage servicing rights sold during the last half of 2016. Subsequent to June 30, 2017, the Company began hedging approximately 50% of the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights.

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64830801&loc=d3e107207-111719 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=68078379&loc=d3e122596-111746 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=68078379&loc=d3e122739-111746 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=68078379&loc=d3e122625-111746 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=65883692&loc=SL6226446-111709 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=64830801&loc=d3e107314-111719 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65883692&loc=SL6226443-111709 + Details
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