MORTGAGE BANKING ACTIVITIES (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| MORTGAGE BANKING ACTIVITIES |
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| Activity for Mortgage Loans Held for Sale, at fair value |
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Years Ended December 31, (in thousands)
|
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2016
|
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2015
|
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2014
|
|
|
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|
|
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|
|
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|
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Balance, beginning of period
|
|
$
|
4,083
|
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$
|
6,388
|
|
$
|
3,506
|
|
|
Origination of mortgage loans held for sale
|
|
|
216,812
|
|
|
160,989
|
|
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82,457
|
|
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Transferred from held for investment to held for sale
|
|
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71,201
|
|
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—
|
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—
|
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Proceeds from the sale of mortgage loans held for sale
|
|
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(287,090)
|
|
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(167,209)
|
|
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(82,015)
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|
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Net gain on sale of mortgage loans held for sale
|
|
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6,656
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|
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3,915
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|
|
2,440
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Balance, end of period
|
|
$
|
11,662
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|
$
|
4,083
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$
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6,388
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|
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| Components of Mortgage Banking Income |
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Years Ended December 31, (in thousands)
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2016
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2015
|
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2014
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|
|
|
|
|
|
|
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|
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Net gain realized on sale of mortgage loans held for sale
|
|
$
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5,478
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$
|
3,882
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$
|
2,278
|
|
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Net gain realized on sale of mortgage loans transferred from held for investment to held for sale
|
|
|
1,129
|
|
|
—
|
|
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—
|
|
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Net change in fair value recognized on loans held for sale
|
|
|
4
|
|
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(33)
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|
|
34
|
|
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Net change in fair value recognized on rate lock loan commitments
|
|
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(8)
|
|
|
57
|
|
|
173
|
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Net change in fair value recognized on forward contracts
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|
|
53
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9
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(45)
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Net gain recognized
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6,656
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3,915
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2,440
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Loan servicing income
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1,983
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|
1,896
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|
1,752
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Amortization of mortgage servicing rights
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(1,757)
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(1,400)
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(1,330)
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Net servicing income recognized
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|
|
226
|
|
|
496
|
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|
422
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Total Mortgage Banking income
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$
|
6,882
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$
|
4,411
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$
|
2,862
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| Activity for capitalized mortgage servicing rights |
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Years Ended December 31, (in thousands)
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2016
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2015
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2014
|
|
|
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|
|
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|
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Balance, beginning of period
|
|
$
|
4,912
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$
|
4,813
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$
|
5,409
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Additions
|
|
|
2,025
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|
1,499
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|
|
734
|
|
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Amortized to expense
|
|
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(1,757)
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(1,400)
|
|
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(1,330)
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Balance, end of period
|
|
$
|
5,180
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|
$
|
4,912
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$
|
4,813
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| Other information relating to mortgage servicing rights |
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December 31, (dollars in thousands)
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2016
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2015
|
|
|
|
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Fair value of mortgage servicing rights portfolio
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$
|
7,478
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$
|
7,242
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|
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Monthly prepayment rate of unpaid principal balance*
|
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104% - 419%
|
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105% - 369%
|
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Discount rate
|
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13%
|
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10%
|
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Weighted average default rate
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1.50%
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1.50%
|
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Weighted average life in years
|
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6.75
|
|
|
6.38
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* Rates are applied to individual tranches with similar characteristics.
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| Schedule of estimated future amortization expense of the MSR portfolio (net of the impairment charge) |
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Year
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(in thousands)
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2017
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$
|
1,030
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2018
|
|
|
1,029
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2019
|
|
|
991
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2020
|
|
|
871
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2021
|
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566
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2022
|
|
|
473
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2023
|
|
|
220
|
|
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Total
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|
$
|
5,180
|
|
|
| Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives |
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2016
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2015
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Notional
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Notional
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December 31, (in thousands)
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Amount
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Fair Value
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Amount
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Fair Value
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Included in Mortgage loans held for sale:
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Mortgage loans held for sale, at fair value
|
|
|
$
|
11,568
|
|
$
|
11,662
|
|
$
|
3,993
|
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$
|
4,083
|
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Included in other assets:
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Rate lock loan commitments
|
|
|
$
|
19,521
|
|
$
|
299
|
|
$
|
21,580
|
|
$
|
306
|
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Mandatory forward contracts
|
|
|
|
25,618
|
|
|
204
|
|
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—
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—
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Included in other liabilities:
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Mandatory forward contracts
|
|
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$
|
—
|
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$
|
—
|
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$
|
19,232
|
|
$
|
25
|
|
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