Residential Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2021

Transfers and Servicing [Abstract]

Residential Mortgage Servicing Rights

Residential Mortgage Servicing Rights 

The Company measures its mortgage servicing rights at fair value with changes in fair value reported in residential mortgage banking revenue, net. The following table presents the changes in the Company's residential mortgage servicing rights for the three and six months ended June 30, 2021 and 2020: 

	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Balance, beginning of period	$	100,413	$	94,346	$	92,907	$	115,010
Additions for new MSR capitalized	8,330		13,447		22,395		23,470
Changes in fair value:
Changes due to collection/realization of expected cash flows over time	(4,366)		(5,042)		(8,911)		(10,371)
Changes due to valuation inputs or assumptions (1)	(1,678)		(6,395)		(3,692)		(31,753)
Balance, end of period	$	102,699	$	96,356	$	102,699	$	96,356

(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 the Bank's serviced loan portfolio as of June 30, 2021 and December 31, 2020 is as follows: 

(dollars in thousands)	June 30, 2021			December 31, 2020
Balance of loans serviced for others	$	12,897,032		$	13,026,720
MSR as a percentage of serviced loans	0.80		%	0.71		%

The amount of contractually specified servicing fees, late fees and ancillary fees earned, recorded in residential mortgage banking revenue on the Condensed Consolidated Statements of Income, was $9.1 million and $18.2 million for the three and six months ended June 30, 2021, respectively, as compared to $8.5 million and $17.4 million for the three and six months ended June 30, 2020, respectively.