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Loans sales and securitizations (Tables)
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3 Months Ended |
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Sep. 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 nine-month periods ended September 30, 2013 and 2012:
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 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 |
$ |
853,287 |
|
$ |
889,769 |
|
$ |
2,603,414 |
|
$ |
2,746,068 |
| Pretax gains resulting from above loan sales (1) |
|
23,224 |
|
|
30,195 |
|
|
91,519 |
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|
83,849 |
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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 nine-month periods ended September 30, 2013 and 2012:
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Three Months Ended |
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Nine Months Ended |
| Fair Value Method: |
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September 30, |
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|
September 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 |
$ |
37,544 |
|
$ |
45,061 |
|
$ |
35,202 |
|
$ |
65,001 |
| Change in fair value during the period due to: |
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Time decay (1) |
|
(727) |
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(633) |
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(1,961) |
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(2,282) |
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Payoffs (2) |
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(3,015) |
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(3,043) |
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(9,774) |
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(11,334) |
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Changes in valuation inputs or assumptions (3) |
|
304 |
|
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(4,764) |
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|
10,639 |
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(14,764) |
| Fair value, end of period: |
$ |
34,106 |
|
$ |
36,621 |
|
$ |
34,106 |
|
$ |
36,621 |
| Weighted-average life (years) |
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4.1 |
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3.0 |
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4.1 |
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3.0 |
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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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Nine Months Ended |
| Amortization Method: |
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September 30, |
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|
September 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 |
$ |
117,978 |
|
$ |
83,236 |
|
$ |
85,545 |
|
$ |
72,434 |
| New servicing assets created |
|
9,864 |
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|
7,725 |
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|
28,614 |
|
|
26,081 |
| Impairment (charge) / recovery |
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(132) |
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(14,779) |
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|
21,459 |
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(13,886) |
| Amortization and other |
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(3,040) |
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(4,729) |
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(10,948) |
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(13,176) |
| Carrying value, end of period |
$ |
124,670 |
|
$ |
71,453 |
|
$ |
124,670 |
|
$ |
71,453 |
| Fair value, end of period |
$ |
136,590 |
|
$ |
71,453 |
|
$ |
136,590 |
|
$ |
71,453 |
| Weighted-average life (years) |
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6.3 |
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2.7 |
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6.3 |
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2.7 |
Changes in the carrying value of automobile loan servicing rights for the three-month and nine-month periods ended September 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 September 30, 2013 and December 31, 2012, to changes in these assumptions follows:
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September 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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|
11.90 |
% |
$ |
(2,100) |
|
$ |
(4,180) |
|
19.52 |
% |
|
$ |
(2,608) |
|
$ |
(5,051) |
| Spread over forward interest rate swap rates |
|
1,236 |
bps |
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(1,424) |
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|
(2,849) |
|
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 September 30, 2013 and December 31, 2012, to changes in these assumptions follows:
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September 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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|
7.50 |
% |
$ |
(7,283) |
|
$ |
(14,154) |
|
15.45 |
% |
|
$ |
(4,936) |
|
$ |
(9,451) |
| Spread over forward interest rate swap rates |
|
873 |
bps |
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(5,351) |
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(10,702) |
|
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 September 30, 2013 and December 31, 2012 follows:
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September 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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|
14.66 |
% |
$ |
(660) |
|
$ |
(1,334) |
|
13.80 |
% |
|
$ |
(880) |
|
$ |
(1,771) |
| Spread over forward interest rate swap rates |
|
500 |
bps |
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(9) |
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(18) |
|
500 |
bps |
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(18) |
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(36) |
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