|
Loans sales and securitizations (Tables)
|
3 Months Ended |
|
Mar. 31, 2013
|
| Loan Sales and Securitizations [Abstract] |
|
| Summarizes activity relating to residential mortgage loans sold with servicing retained |
The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the three-month periods ended March 31, 2013 and 2012:
| |
|
|
Three Months Ended |
| |
|
|
March 31, |
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
| Residential mortgage loans sold with servicing retained |
$ |
836,134 |
|
$ |
1,006,084 |
| Pretax gains resulting from above loan sales (1) |
|
35,569 |
|
|
28,941 |
| |
|
|
|
|
|
|
| (1) |
Recorded in mortgage banking income. |
|
| 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 periods ended March 31, 2013 and 2012:
| |
|
|
|
|
|
|
| |
|
|
Three Months Ended |
| Fair Value Method: |
|
March 31, |
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
| Fair value, beginning of period |
$ |
35,202 |
|
$ |
65,001 |
| Change in fair value during the period due to: |
|
|
|
|
|
| |
Time decay (1) |
|
(609) |
|
|
(856) |
| |
Payoffs (2) |
|
(3,157) |
|
|
(4,039) |
| |
Changes in valuation inputs or assumptions (3) |
|
4,146 |
|
|
2,348 |
| Fair value, end of period |
$ |
35,582 |
|
$ |
62,454 |
| Weighted-average life (years) |
|
3.6 |
|
|
3.2 |
| |
|
|
|
|
|
|
| (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 spreads. |
|
| Summarizes activity relating to loans sold with servicing retained using the amortization method |
| |
|
|
|
|
|
|
| |
|
|
Three Months Ended |
| Amortization Method: |
|
March 31, |
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
| Carrying value, beginning of year |
$ |
85,545 |
|
$ |
72,434 |
| New servicing assets created |
|
9,286 |
|
|
10,287 |
| Impairment recovery / (charge) |
|
13,651 |
|
|
7,558 |
| Amortization and other |
|
(4,137) |
|
|
(4,384) |
| Carrying value, end of period |
$ |
104,345 |
|
$ |
85,895 |
| Fair value, end of period |
$ |
104,512 |
|
$ |
86,060 |
| Weighted-average life (years) |
|
4.6 |
|
|
3.7 |
Changes in the carrying value of automobile loan servicing rights for the three-month periods ended March 31, 2013 and 2012, and the fair value at the end of each period were as follows:
| |
|
|
Three Months Ended |
| |
|
|
March 31, |
| (dollar amounts in thousands) |
|
2013 |
|
|
2012 |
| Carrying value, beginning of period |
$ |
35,606 |
|
$ |
13,377 |
| New servicing assets created |
|
--- |
|
|
19,883 |
| Impairment charge |
|
(217) |
|
|
--- |
| Amortization and other |
|
(4,953) |
|
|
(2,480) |
| Carrying value, end of period |
$ |
30,436 |
|
$ |
30,780 |
| |
|
|
|
|
|
|
| Fair value, end of period |
$ |
30,823 |
|
$ |
31,509 |
| Weighted-average life (years) |
|
4.1 |
|
|
4.7 |
|
| 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 March 31, 2013 and December 31, 2012, to changes in these assumptions follows:
| |
March 31, 2013 |
|
December 31, 2012 |
| |
|
|
|
|
Decline in fair value due to |
|
|
|
|
|
Decline in fair value due to |
| |
|
|
|
|
10% |
|
|
20% |
|
|
|
|
|
10% |
|
|
20% |
| |
|
|
|
|
adverse |
|
|
adverse |
|
|
|
|
|
adverse |
|
|
adverse |
| (dollar amounts in thousands) |
|
Actual |
|
change |
|
|
change |
|
Actual |
|
|
change |
|
|
change |
|
Constant prepayment rate (annualized)
|
|
15.60 |
% |
$ |
(2,218) |
|
$ |
(4,484) |
|
19.52 |
% |
|
$ |
(2,608) |
|
$ |
(5,051) |
| Spread over forward interest rate swap rates |
|
1,306 |
bps |
|
(1,426) |
|
|
(2,853) |
|
1,288 |
bps |
|
|
(1,290) |
|
|
(2,580) |
For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value at March 31, 2013 and December 31, 2012, to changes in these assumptions follows:
| |
March 31, 2013 |
|
December 31, 2012 |
| |
|
|
|
|
Decline in fair value due to |
|
|
|
|
|
Decline in fair value due to |
| |
|
|
|
|
10% |
|
|
20% |
|
|
|
|
|
10% |
|
|
20% |
| |
|
|
|
|
adverse |
|
|
adverse |
|
|
|
|
|
adverse |
|
|
adverse |
| (dollar amounts in thousands) |
|
Actual |
|
change |
|
|
change |
|
Actual |
|
|
change |
|
|
change |
|
Constant prepayment rate (annualized)
|
|
10.60 |
% |
$ |
(5,017) |
|
$ |
(9,705) |
|
15.45 |
% |
|
$ |
(4,936) |
|
$ |
(9,451) |
| Spread over forward interest rate swap rates |
|
946 |
bps |
|
(4,087) |
|
|
(8,173) |
|
940 |
bps |
|
|
(3,060) |
|
|
(6,119) |
A summary of key assumptions and the sensitivity of the automobile loan servicing rights value to changes in these assumptions at March 31, 2013 and December 31, 2012 follows:
| |
March 31, 2013 |
|
December 31, 2012 |
| |
|
|
|
|
Decline in fair value due to |
|
|
|
|
|
Decline in fair value due to |
| |
|
|
|
|
10% |
|
|
20% |
|
|
|
|
|
10% |
|
|
20% |
| |
|
|
|
|
adverse |
|
|
adverse |
|
|
|
|
|
adverse |
|
|
adverse |
| (dollar amounts in thousands) |
|
Actual |
|
change |
|
|
change |
|
Actual |
|
|
change |
|
|
change |
|
Constant prepayment rate (annualized)
|
|
15.12 |
% |
$ |
(1,023) |
|
$ |
(2,048) |
|
13.80 |
% |
|
$ |
(880) |
|
$ |
(1,771) |
| Spread over forward interest rate swap rates |
|
500 |
bps |
|
(15) |
|
|
(30) |
|
500 |
bps |
|
|
(18) |
|
|
(36) |
|