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Mortgage servicing rights
 12 Months Ended
Dec. 31, 2018
Transfers and Servicing of Financial Assets [Abstract]  
Mortgage servicing rights
Mortgage servicing rights:
Changes in the Company’s mortgage servicing rights were as follows for years ended December 31, 2018, 2017 and 2016:
 
 
Year Ended December 31,
 
 
 
2018

 
2017

 
2016

Carrying value prior to policy change
 
$
76,107

 
$
32,070

 
$
29,711

Fair value impact of change in accounting policy (See Note 1)
 
—

 
1,011

 
—

Carrying value at beginning of period
 
76,107

 
33,081

 
29,711

Capitalization
 
54,913

 
58,984

 
46,070

Amortization
 
—

 
—

 
(8,321
)
Sales
 
(39,428
)
 
(11,686
)
 
(34,118
)
(Loss) gain on sale
 
—

 
(249
)
 
3,406

Impairment
 
—

 
—

 
(4,678
)
Change in fair value:
 
 
 
 
 
 
Due to pay-offs/pay-downs
 
(11,062
)
 
(3,104
)
 
—

Due to change in valuation inputs or assumptions
 
8,299

 
(919
)
 
—

Carrying value at December 31
 
$
88,829

 
$
76,107

 
$
32,070


The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the years ended December 31, 2018, 2017 and 2016, respectively: 
 
 
Year Ended December 31,
 
 
 
2018

 
2017

 
2016

Servicing income:
 
 
 
 
 
 
Servicing income
 
$
20,591

 
$
13,168

 
$
12,063

Change in fair value of mortgage servicing rights
 
(2,763
)
 
(4,023
)
 
—

Change in fair value of derivative hedging instruments
 
(5,910
)
 
599

 
—

Total servicing income
 
11,918

 
9,744

 
12,063

Servicing expenses:
 
 
 
 
 
 
Servicing asset amortization
 
—

 
—

 
8,321

Servicing asset impairment
 
—

 
—

 
4,678

Loss on sale of mortgage servicing rights, related hedges and
    transaction costs on sale
 
—

 
249

 
4,447

Other servicing expenses
 
7,675

 
4,896

 
2,325

Total servicing expenses
 
7,675

 
5,145

 
19,771

Net servicing income (loss)
 
$
4,243

 
$
4,599

 
$
(7,708
)

Data and key economic assumptions related to the Company’s mortgage servicing rights as of December 31, 2018 and 2017 are as follows: 
 
 
As of December 31,
 
 
 
2018


2017

Unpaid principal balance
 
$
6,755,114

 
$
6,529,431

Weighted-average prepayment speed (CPR)
 
8.58
%
 
8.90
%
Estimated impact on fair value of a 10% increase
 
(2,072
)
 
(3,026
)
Estimated impact on fair value of a 20% increase
 
(4,006
)
 
(5,855
)
Discount rate
 
10.45
%
 
9.75
%
Estimated impact on fair value of a 100 bp increase
 
(2,505
)
 
(3,052
)
Estimated impact on fair value of a 200 bp increase
 
(4,807
)
 
(5,867
)
Weighted-average coupon interest rate
 
4.21
%
 
3.94
%
Weighted-average servicing fee (basis points)
 
30


28

Weighted-average remaining maturity (in months)
 
325

 
335


During the second quarter of 2017, the Company began hedging the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights. As of December 31, 2018, the MSR asset was fully hedged with respect to changes in the underlying interest rates (see Note 16).
From time to time, the Company enters agreements to sell certain tranches of mortgage servicing rights. Upon consummation of the sale, occasionally the Company continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. During the years ended December 31, 2018, 2017 and 2016, the Company sold $39,428, $11,686, and $34,118 of mortgage servicing rights on $3,181,483, $1,086,465 and $3,370,395 of serviced mortgage loans, respectively. There was not a material gain or loss recognized during the year ended December 31, 2018 in connection with the sale. As of December 31, 2018 and 2017, there were no loans being serviced that related to bulk sale of mortgage servicing rights. As of December 31, 2018, mortgage escrow deposits amounts to $53,468.
During the fourth quarter of 2018, the Company entered into a letter of intent for the sale of certain mortgage servicing rights on approximately $2,061,175 of serviced mortgage loans. The transaction closed subsequent to the year ended December 31, 2018 during the first quarter of 2019, resulting in the reduction of $29,416 in mortgage servicing rights. The Company is currently subservicing the loans until they can be transferred to the purchaser in 2019. No significant gain or loss is was recognized related to this transaction.