Quarterly report pursuant to Section 13 or 15(d)

LOAN SALES AND SECURITIZATIONS (Tables)

v3.3.0.814
LOAN SALES AND SECURITIZATIONS (Tables)
9 Months Ended
Sep. 30, 2015
Transfers and Servicing [Abstract]  
Summarizes activity relating to loans securitized sold with servicing retained
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Automobile loans securitized with servicing retained
$

 
$

 
$
750,000

 
$

Pretax gains resulting from above loan sales (1)

 

 
5,333

 

The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the three-month and nine-month periods ended September 30, 2015 and 2014:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Residential mortgage loans sold with servicing retained
$
920,974

 
$
654,747

 
$
2,490,070

 
$
1,703,056

Pretax gains resulting from above loan sales (1)
22,529

 
16,781

 
64,103

 
43,853

(1)
Recorded in mortgage banking income.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
SBA loans sold with servicing retained
$
49,216

 
$
63,470

 
$
145,150

 
$
149,571

Pretax gains resulting from above loan sales (1)
3,712

 
7,432

 
11,981

 
17,204

Summarizes activity relating to loans sold with servicing retained using the fair value method
The following tables summarize the changes in MSRs recorded using either the fair value method or the amortization method for the three-month and nine-month periods ended September 30, 2015 and 2014:
Fair Value Method:
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Fair value, beginning of period
$
20,681

 
$
26,747

 
$
22,786

 
$
34,236

Change in fair value during the period due to:
 
 
 
 
 
 
 
Time decay (1)
(324
)
 
(467
)
 
(996
)
 
(1,848
)
Payoffs (2)
(651
)
 
(1,343
)
 
(2,465
)
 
(4,869
)
Changes in valuation inputs or assumptions (3)
(1,641
)
 
501

 
(1,260
)
 
(2,081
)
Fair value, end of period:
$
18,065

 
$
25,438

 
$
18,065

 
$
25,438

Weighted-average life (years)
4.9

 
5.2

 
4.9

 
5.2

(1)
Represents decrease in value due to passage of time, including the impact from both regularly scheduled loan principal payments and partial loan paydowns.
(2)
Represents decrease in value associated with loans that paid off during the period.
(3)
Represents change in value resulting primarily from market-driven changes in interest rates and prepayment speeds.
Summarizes activity relating to loans sold with servicing retained using the amortization method
Amortization Method:
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Carrying value, beginning of period
$
143,127

 
$
133,113

 
$
132,813

 
$
128,064

New servicing assets created
9,918

 
7,173

 
26,710

 
17,802

Servicing assets acquired

 

 

 
3,505

Impairment (charge) / recovery
(12,472
)
 
487

 
(7,492
)
 
(1,573
)
Amortization and other
(5,106
)
 
(4,311
)
 
(16,564
)
 
(11,336
)
Carrying value, end of period
$
135,467

 
$
136,462

 
$
135,467

 
$
136,462

Fair value, end of period
$
135,499

 
$
141,976

 
$
135,499

 
$
141,976

Weighted-average life (years)
6.0

 
6.7

 
6.0

 
6.7

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in thousands)
2015
 
2014
 
2015
 
2014
Carrying value, beginning of period
$
18,272

 
$
17,192

 
$
18,536

 
$
16,865

New servicing assets created
1,684

 
2,181

 
4,980

 
5,042

Amortization and other
(1,594
)
 
(1,458
)
 
(5,154
)
 
(3,992
)
Carrying value, end of period
$
18,362

 
$
17,915

 
$
18,362

 
$
17,915

Fair value, end of period
$
20,906

 
$
17,915

 
$
20,906

 
$
17,915

Weighted-average life (years)
3.3

 
3.5

 
3.3

 
3.5

Summary of key assumptions and the sensitivity of the servicing rights value to changes in the assumptions
For MSRs under the fair value method, a summary of key assumptions and the sensitivity of the MSR value at September 30, 2015 and December 31, 2014, to changes in these assumptions follows:
 
September 30, 2015
 
December 31, 2014
 
 
 
Decline in fair value due to
 
 
 
Decline in fair value due to
(dollar amounts in thousands)
Actual
 
10%
adverse
change
 
20%
adverse
change
 
Actual
 
10%
adverse
change
 
20%
adverse
change
Constant prepayment rate (annualized)
14.30
%
 
$
(880
)
 
$
(1,688
)
 
15.60
%
 
$
(1,176
)
 
$
(2,248
)
Spread over forward interest rate swap rates
599 bps

 
(566
)
 
(1,097
)
 
546 bps

 
(699
)
 
(1,355
)

For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value at September 30, 2015 and December 31, 2014, to changes in these assumptions follows:
 
September 30, 2015
 
December 31, 2014
 
 
 
Decline in fair value due to
 
 
 
Decline in fair value due to
(dollar amounts in thousands)
Actual
 
10%
adverse
change
 
20%
adverse
change
 
Actual
 
10%
adverse
change
 
20%
adverse
change
Constant prepayment rate (annualized)
11.20
%
 
$
(5,300
)
 
$
(10,187
)
 
11.40
%
 
$
(5,289
)
 
$
(10,164
)
Spread over forward interest rate swap rates
971 bps

 
(4,291
)
 
(8,303
)
 
856 bps

 
(4,343
)
 
(8,403
)
 
September 30, 2015
 
December 31, 2014
 
 
 
Decline in fair value due to
 
 
 
Decline in fair value due to
(dollar amounts in thousands)
Actual
 
10%
adverse
change
 
20%
adverse
change
 
Actual
 
10%
adverse
change
 
20%
adverse
change
Constant prepayment rate (annualized)
15.90
%
 
$
(374
)
 
$
(672
)
 
14.62
%
 
$
(305
)
 
$
(496
)
Spread over forward interest rate swap rates
500 bps

 
(8
)
 
(16
)
 
500 bps

 
(2
)
 
(4
)
 
September 30, 2015
 
December 31, 2014
 
 
 
Decline in fair value due to
 
 
 
Decline in fair value due to
(dollar amounts in thousands)
Actual
 
10%
adverse
change
 
20%
adverse
change
 
Actual
 
10%
adverse
change
 
20%
adverse
change
Constant prepayment rate (annualized)
7.80
%
 
$
(299
)
 
$
(593
)
 
5.60
%
 
$
(211
)
 
$
(419
)
Discount rate
1,500
 bps
 
(559
)
 
(1,096
)
 
1,500 bps

 
(563
)
 
(1,102
)