Residential Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2019

The Company measures its mortgage servicing rights at fair value with changes in fair value reported in residential mortgage banking revenue in the Condensed Consolidated Statements of Income. The following table presents the changes in the Company's residential mortgage servicing rights ("MSR") for the three and nine months ended September 30, 2019 and 2018:


(in thousands)	Three Months Ended						Nine Months Ended
	September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Balance, beginning of period	$	139,780	$	166,217	$	169,025	$	153,151
Additions for new MSR capitalized	7,393		8,622		16,772		22,012
Changes in fair value:
Changes due to collection/realization of expected cash flows over time	(6,835)		(6,007)		(20,171)		(18,108)
Changes due to valuation inputs or assumptions⁽¹⁾	11,045		6,206		(14,243)		17,983
Balance, end of period	$	151,383	$	175,038	$	151,383	$	175,038

⁽¹⁾The changes in valuation inputs and assumptions principally reflect changes in discount rates and prepayment speeds, which are primarily affected by changes in interest rates.

Information related to our serviced loan portfolio as of September 30, 2019 and December 31, 2018 is as follows:


(dollars in thousands)	September 30, 2019			December 31, 2018
Balance of loans serviced for others	$	15,707,519		$	15,978,885
MSR as a percentage of serviced loans	0.96		%	1.06		%

The amount of contractually specified servicing fees, late fees and ancillary fees earned, recorded in residential mortgage banking revenue, was $11.3 million and $33.2 million for the three and nine months ended September 30, 2019, respectively, as compared to $10.3 million and $31.2 million for the three and nine months ended September 30, 2018, respectively.