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Loans sales and securitizations (Tables)
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3 Months Ended |
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Jun. 30, 2013
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| Loan Sales and Securitizations [Abstract] |
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| 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 and six-month periods ended June 30, 2013 and 2012:
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Three Months Ended |
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Six Months Ended |
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June 30, |
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|
June 30, |
| (dollar amounts in thousands) |
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2013 |
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|
2012 |
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|
2013 |
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|
2012 |
| Residential mortgage loans sold with servicing retained |
$ |
913,994 |
|
$ |
850,215 |
|
$ |
1,750,127 |
|
$ |
1,856,300 |
| Pretax gains resulting from above loan sales (1) |
|
32,727 |
|
|
24,713 |
|
|
68,295 |
|
|
53,654 |
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| (1) |
Recorded in mortgage banking income. |
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| 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 six-month periods ended June 30, 2013 and 2012:
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Three Months Ended |
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Six Months Ended |
| Fair Value Method: |
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June 30, |
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|
June 30, |
| (dollar amounts in thousands) |
|
2013 |
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|
2012 |
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|
2013 |
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|
2012 |
| Fair value, beginning of period |
$ |
35,582 |
|
$ |
62,454 |
|
$ |
35,202 |
|
$ |
65,001 |
| Change in fair value during the period due to: |
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Time decay (1) |
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(625) |
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(793) |
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(1,234) |
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|
(1,649) |
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Payoffs (2) |
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(3,601) |
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(4,253) |
|
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(6,759) |
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(8,292) |
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Changes in valuation inputs or assumptions (3) |
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6,188 |
|
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(12,347) |
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|
10,335 |
|
|
(9,999) |
| Fair value, end of period: |
$ |
37,544 |
|
$ |
45,061 |
|
$ |
37,544 |
|
$ |
45,061 |
| Weighted-average life (years) |
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4.2 |
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3.2 |
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4.2 |
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3.2 |
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| (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. |
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| Summarizes activity relating to loans sold with servicing retained using the amortization method |
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Three Months Ended |
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Six Months Ended |
| Amortization Method: |
|
June 30, |
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|
June 30, |
| (dollar amounts in thousands) |
|
2013 |
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|
2012 |
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|
2013 |
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|
2012 |
| Carrying value, beginning of period |
$ |
104,345 |
|
$ |
85,895 |
|
$ |
85,545 |
|
$ |
72,434 |
| New servicing assets created |
|
9,465 |
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|
8,069 |
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|
18,750 |
|
|
18,356 |
| Impairment (charge) / recovery |
|
7,940 |
|
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(6,665) |
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|
21,591 |
|
|
893 |
| Amortization and other |
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(3,772) |
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(4,063) |
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(7,908) |
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(8,447) |
| Carrying value, end of period |
$ |
117,978 |
|
$ |
83,236 |
|
$ |
117,978 |
|
$ |
83,236 |
| Fair value, end of period |
$ |
129,050 |
|
$ |
83,320 |
|
$ |
129,050 |
|
$ |
83,320 |
| Weighted-average life (years) |
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6.4 |
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3.6 |
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6.4 |
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3.6 |
Changes in the carrying value of automobile loan servicing rights for the three-month and six-month periods ended June 30, 2013 and 2012, and the fair value at the end of each period were as follows:
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| 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 June 30, 2013 and December 31, 2012, to changes in these assumptions follows:
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June 30, 2013 |
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December 31, 2012 |
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Decline in fair value due to |
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Decline in fair value due to |
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10% |
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20% |
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10% |
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20% |
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adverse |
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|
adverse |
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|
adverse |
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adverse |
| (dollar amounts in thousands) |
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Actual |
|
change |
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|
change |
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Actual |
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|
change |
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|
change |
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Constant prepayment rate (annualized)
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11.80 |
% |
$ |
(2,280) |
|
$ |
(4,436) |
|
19.52 |
% |
|
$ |
(2,608) |
|
$ |
(5,051) |
| Spread over forward interest rate swap rates |
|
1,233 |
bps |
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(1,560) |
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|
(3,120) |
|
1,288 |
bps |
|
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(1,290) |
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(2,580) |
For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value at June 30, 2013 and December 31, 2012, to changes in these assumptions follows:
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June 30, 2013 |
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December 31, 2012 |
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Decline in fair value due to |
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Decline in fair value due to |
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10% |
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20% |
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10% |
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20% |
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adverse |
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adverse |
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adverse |
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adverse |
| (dollar amounts in thousands) |
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Actual |
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change |
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|
change |
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Actual |
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|
change |
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|
change |
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Constant prepayment rate (annualized)
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|
7.40 |
% |
$ |
(6,892) |
|
$ |
(13,474) |
|
15.45 |
% |
|
$ |
(4,936) |
|
$ |
(9,451) |
| Spread over forward interest rate swap rates |
|
915 |
bps |
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(5,175) |
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(10,350) |
|
940 |
bps |
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(3,060) |
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(6,119) |
A summary of key assumptions and the sensitivity of the automobile loan servicing rights value to changes in these assumptions at June 30, 2013 and December 31, 2012 follows:
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June 30, 2013 |
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December 31, 2012 |
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Decline in fair value due to |
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Decline in fair value due to |
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10% |
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20% |
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10% |
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20% |
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adverse |
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|
adverse |
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adverse |
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|
adverse |
| (dollar amounts in thousands) |
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Actual |
|
change |
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|
change |
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Actual |
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|
change |
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|
change |
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Constant prepayment rate (annualized)
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|
15.10 |
% |
$ |
(795) |
|
$ |
(1,602) |
|
13.80 |
% |
|
$ |
(880) |
|
$ |
(1,771) |
| Spread over forward interest rate swap rates |
|
500 |
bps |
|
(13) |
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(27) |
|
500 |
bps |
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(18) |
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(36) |
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