LOAN SALES AND SECURITIZATIONS (Tables)
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9 Months Ended |
Sep. 30, 2016 |
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| Transfers and Servicing [Abstract] |
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| Summarizes activity relating to loans securitized 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, 2016 and 2015:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
(dollar amounts in thousands) |
2016 |
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2015 |
|
2016 |
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2015 |
Residential mortgage loans sold with servicing retained |
$ |
1,204,547 |
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$ |
920,974 |
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$ |
2,552,602 |
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$ |
2,490,070 |
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Pretax gains resulting from above loan sales (1) |
32,073 |
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|
22,529 |
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|
64,804 |
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|
64,103 |
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(1) |
Recorded in mortgage banking income. |
The following table summarizes activity relating to SBA loans sold with servicing retained for the three-month and nine-month periods ended September 30, 2016 and 2015:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
(dollar amounts in thousands) |
2016 |
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2015 |
|
2016 |
|
2015 |
SBA loans sold with servicing retained |
$ |
62,803 |
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$ |
49,216 |
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$ |
167,321 |
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$ |
145,150 |
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Pretax gains resulting from above loan sales (1) |
4,679 |
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|
3,712 |
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12,862 |
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11,981 |
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(1) |
Recorded in gain on sale of loans. |
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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, 2016 and 2015:
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Fair Value Method: |
Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
(dollar amounts in thousands) |
2016 |
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2015 |
|
2016 |
|
2015 |
Fair value, beginning of period |
$ |
13,105 |
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|
$ |
20,681 |
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$ |
17,585 |
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$ |
22,786 |
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Change in fair value during the period due to: |
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Time decay (1) |
(217 |
) |
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(324 |
) |
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(734 |
) |
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(996 |
) |
Payoffs (2) |
(423 |
) |
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(651 |
) |
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(1,392 |
) |
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(2,465 |
) |
Changes in valuation inputs or assumptions (3) |
(37 |
) |
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(1,641 |
) |
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(3,031 |
) |
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(1,260 |
) |
Fair value, end of period: |
$ |
12,428 |
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$ |
18,065 |
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$ |
12,428 |
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$ |
18,065 |
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Weighted-average life (years) |
5.1 |
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4.9 |
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5.1 |
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4.9 |
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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. |
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(2) |
Represents decrease in value associated with loans that paid off during the period. |
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(3) |
Represents change in value resulting primarily from market-driven changes in interest rates and prepayment speeds. |
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| Summarizes activity relating to loans sold with servicing retained using the amortization method |
The following tables summarize the changes in the carrying value of the servicing asset for the three-month and nine-month periods ended September 30, 2016 and 2015, and the fair value at the end of each period were as follows:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
(dollar amounts in thousands) |
2016 |
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2015 |
|
2016 |
|
2015 |
Carrying value, beginning of period |
$ |
19,612 |
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$ |
18,272 |
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$ |
19,747 |
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$ |
18,536 |
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New servicing assets created |
1,879 |
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|
1,684 |
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|
5,259 |
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|
4,980 |
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Amortization and other |
(1,745 |
) |
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(1,594 |
) |
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(5,260 |
) |
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(5,154 |
) |
Carrying value, end of period |
$ |
19,746 |
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$ |
18,362 |
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$ |
19,746 |
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$ |
18,362 |
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Fair value, end of period |
$ |
24,065 |
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$ |
20,906 |
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$ |
24,065 |
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$ |
20,906 |
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Weighted-average life (years) |
3.3 |
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3.3 |
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3.3 |
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3.3 |
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Amortization Method: |
Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
(dollar amounts in thousands) |
2016 |
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2015 |
|
2016 |
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2015 |
Carrying value, beginning of period |
$ |
121,292 |
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$ |
143,127 |
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$ |
143,133 |
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$ |
132,813 |
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New servicing assets created |
12,434 |
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9,918 |
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25,820 |
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26,710 |
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Servicing assets acquired |
15,317 |
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— |
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15,317 |
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— |
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Impairment (charge) / recovery |
2,543 |
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(12,472 |
) |
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(21,093 |
) |
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(7,492 |
) |
Amortization and other |
(7,194 |
) |
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(5,106 |
) |
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(18,785 |
) |
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(16,564 |
) |
Carrying value, end of period |
$ |
144,392 |
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$ |
135,467 |
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$ |
144,392 |
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$ |
135,467 |
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Fair value, end of period |
$ |
144,623 |
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$ |
135,499 |
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$ |
144,623 |
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$ |
135,499 |
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Weighted-average life (years) |
6.1 |
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6.0 |
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6.1 |
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6.0 |
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Changes in the carrying value of automobile loan servicing rights for the three-month and nine-month periods ended September 30, 2016 and 2015, and the fair value at the end of each period were as follows:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
(dollar amounts in thousands) |
2016 |
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2015 |
|
2016 |
|
2015 |
Carrying value, beginning of period |
$ |
5,458 |
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$ |
14,330 |
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$ |
8,771 |
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$ |
6,898 |
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New servicing assets created |
— |
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— |
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— |
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11,180 |
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Amortization and other |
(1,087 |
) |
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(2,990 |
) |
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(4,400 |
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(6,738 |
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Carrying value, end of period |
$ |
4,371 |
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$ |
11,340 |
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$ |
4,371 |
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$ |
11,340 |
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Fair value, end of period |
$ |
4,366 |
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$ |
11,341 |
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$ |
4,366 |
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$ |
11,341 |
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Weighted-average life (years) |
3.2 |
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3.3 |
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3.2 |
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3.3 |
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| Summary of key assumptions and the sensitivity of the servicing rights value to changes in the assumptions |
A summary of key assumptions and the sensitivity of the automobile loan servicing rights value to changes in these assumptions at September 30, 2016 and December 31, 2015 follows:
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September 30, 2016 |
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December 31, 2015 |
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Decline in fair value due to |
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Decline in fair value due to |
(dollar amounts in thousands) |
Actual |
|
10%
adverse
change |
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20%
adverse
change |
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Actual |
|
10%
adverse
change |
|
20%
adverse
change |
Constant prepayment rate (annualized)
|
18.86 |
% |
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$ |
(201 |
) |
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$ |
(453 |
) |
|
18.36 |
% |
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$ |
(500 |
) |
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$ |
(895 |
) |
Spread over forward interest rate swap rates |
500 bps |
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(4 |
) |
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(8 |
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|
500 bps |
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(10 |
) |
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(19 |
) |
A summary of key assumptions and the sensitivity of the SBA loan servicing rights value to changes in these assumptions at September 30, 2016 and December 31, 2015 follows:
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September 30, 2016 |
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December 31, 2015 |
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Decline in fair value due to |
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Decline in fair value due to |
(dollar amounts in thousands) |
Actual |
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10%
adverse
change
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20%
adverse
change
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Actual |
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10%
adverse
change
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20%
adverse
change
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Constant prepayment rate (annualized)
|
7.40 |
% |
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$ |
(325 |
) |
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$ |
(645 |
) |
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7.60 |
% |
|
$ |
(313 |
) |
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$ |
(622 |
) |
Discount rate |
15.00 |
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(645 |
) |
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(1,262 |
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15.00 |
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(610 |
) |
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(1,194 |
) |
For MSRs under the fair value method, a summary of key assumptions and the sensitivity of the MSR value at September 30, 2016 and December 31, 2015, to changes in these assumptions follows:
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September 30, 2016 |
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December 31, 2015 |
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Decline in fair value due to |
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Decline in fair value due to |
(dollar amounts in thousands) |
Actual |
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10%
adverse
change
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20%
adverse
change
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Actual |
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10%
adverse
change
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20%
adverse
change
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Constant prepayment rate (annualized)
|
12.40 |
% |
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$ |
(517 |
) |
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$ |
(998 |
) |
|
14.70 |
% |
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$ |
(864 |
) |
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$ |
(1,653 |
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Spread over forward interest rate swap rates |
553 bps |
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(379 |
) |
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(736 |
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539 bps |
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(559 |
) |
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(1,083 |
) |
For MSRs under the amortization method, a summary of key assumptions and the sensitivity of the MSR value at September 30, 2016 and December 31, 2015, to changes in these assumptions follows:
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September 30, 2016 |
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December 31, 2015 |
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Decline in fair value due to |
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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)
|
10.10 |
% |
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$ |
(4,935 |
) |
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$ |
(9,531 |
) |
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11.10 |
% |
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$ |
(5,543 |
) |
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$ |
(10,648 |
) |
Spread over forward interest rate swap rates |
1,205 bps |
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(4,083 |
) |
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(7,924 |
) |
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875 bps |
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(4,662 |
) |
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(9,017 |
) |
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