|
Loans sales and securitizations (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| Loan Sales and Securitizations [Abstract] |
|
| Summarizes activity relating to residential mortgage loans sold with servicing retained |
Residential Mortgage Portfolio
The following table summarizes activity relating to residential mortgage loans sold with servicing retained for the years ended December 31, 2012, 2011, and 2010:
| (dollar amounts in thousands) |
|
2012 |
|
|
2011 |
|
|
2010 |
| Residential mortgage loans sold with servicing retained |
$ |
3,954,762 |
|
$ |
3,078,475 |
|
$ |
3,943,830 |
| Pretax gains resulting from above loan sales (1) |
|
128,408 |
|
|
77,591 |
|
|
106,495 |
| |
|
|
|
|
|
|
|
|
|
| (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 years ended December 31, 2012 and 2011:
| Fair Value Method |
|
|
|
|
|
| (dollar amounts in thousands) |
|
2012 |
|
|
2011 |
| Fair value, beginning of year |
$ |
65,001 |
|
$ |
125,679 |
| Change in fair value during the period due to: |
|
|
|
|
|
| |
Time decay (1) |
|
(2,881) |
|
|
(4,966) |
| |
Payoffs (2) |
|
(14,389) |
|
|
(19,464) |
| |
Changes in valuation inputs or assumptions (3) |
|
(12,529) |
|
|
(36,248) |
| Fair value, end of year |
$ |
35,202 |
|
$ |
65,001 |
| Weighted-average life (years) |
|
3.2 |
|
|
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 |
The following tables summarize the changes in MSRs recorded using either the fair value method or the amortization method for the years ended December 31, 2012 and 2011:
| |
|
|
|
|
|
|
| Amortization Method |
|
|
|
|
|
| (dollar amounts in thousands) |
|
2012 |
|
|
2011 |
| Carrying value, beginning of year |
$ |
72,434 |
|
$ |
70,516 |
| New servicing assets created |
|
36,123 |
|
|
32,505 |
| Impairment charge |
|
(4,374) |
|
|
(17,649) |
| Amortization and other |
|
(18,638) |
|
|
(12,938) |
| Carrying value, end of year |
$ |
85,545 |
|
$ |
72,434 |
| Fair value, end of year |
$ |
85,612 |
|
$ |
72,586 |
Changes in the carrying value of automobile loan servicing rights for the years ended December 31, 2012 and 2011, and the fair value at the end of each period were as follows:
| |
|
|
|
|
|
|
| (dollar amounts in thousands) |
|
2012 |
|
|
2011 |
| Carrying value, beginning of year |
$ |
13,377 |
|
$ |
97 |
| New servicing assets created |
|
38,043 |
|
|
16,039 |
| Impairment charge |
|
(75) |
|
|
--- |
| Amortization and other |
|
(15,739) |
|
|
(2,759) |
| Carrying value, end of year |
$ |
35,606 |
|
$ |
13,377 |
| |
|
|
|
|
|
|
| Fair value, end of year |
$ |
36,470 |
|
$ |
13,428 |
| Weighted-average life (years) |
|
4.3 |
|
|
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 to changes in these assumptions at December 31, 2012, and 2011 follows:
| |
|
December 31, 2012 |
|
December 31, 2011 |
| |
|
|
|
|
|
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)
|
|
19.52 |
% |
|
$ |
(2,608) |
|
$ |
(5,051) |
|
20.11 |
% |
|
$ |
(4,720) |
|
$ |
(9,321) |
| Spread over forward interest rate swap rates |
|
1,288 |
bps |
|
|
(1,290) |
|
|
(2,580) |
|
650 |
bps |
|
|
(1,511) |
|
|
(3,023) |
For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value to changes in these assumptions at December 31, 2012 and 2011 follows:
| |
|
December 31, 2012 |
|
December 31, 2011 |
| |
|
|
|
|
|
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)
|
|
15.45 |
% |
|
$ |
(4,936) |
|
$ |
(9,451) |
|
15.92 |
% |
|
$ |
(3,679) |
|
$ |
(7,160) |
| Spread over forward interest rate swap rates |
|
940 |
bps |
|
|
(3,060) |
|
|
(6,119) |
|
953 |
bps |
|
|
(2,605) |
|
|
(5,211) |
A summary of key assumptions and the sensitivity of the automobile loan servicing rights value to changes in these assumptions at December 31, 2012 and 2011 follows:
| |
|
December 31, 2012 |
|
December 31, 2011 |
| |
|
|
|
|
|
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)
|
|
13.80 |
% |
|
$ |
(880) |
|
$ |
(1,771) |
|
15.60 |
% |
|
$ |
(362) |
|
$ |
(708) |
| Spread over forward interest rate swap rates |
|
500 |
bps |
|
|
(18) |
|
|
(36) |
|
NA |
|
|
|
NA |
|
|
NA |
|