Loan Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of activity for loan servicing rights and the related fair value changes

The following table represents the activity for LSRs and the related fair value changes:



	For the three months ended March 31, 2017
(Dollars in thousands)	Commercial Real Estate			Mortgage			Total
Fair value, beginning of period	$	344		$	47,741		$	48,085
Transfers based on new accounting policy election	—			15,891			15,891
Additions from loans sold with servicing retained	—			1,753			1,753
Changes in fair value due to:
Reductions from pay-offs, pay downs and run-off	(24		)	(582		)	(606		)
Changes in estimates of fair value ⁽¹⁾	—			(519		)	(519		)
Fair value, end of period	$	320		$	64,284		$	64,604
Principal balance of loans serviced for others that have servicing capitalized	$	50,942		$	7,253,396		$	7,304,338

(1) Represents estimated LSR value change resulting primarily from market-driven changes in interest rates and prepayments. Included in "Mortgage banking revenue" in the Consolidated Statements of Income.

Activity for capitalized loan servicing rights

Activity for LSRs and the related valuation allowance for the three months ended March 31, 2016 are as follows:



(Dollars in thousands)	For the three months ended March 31, 2016
Balance at beginning of period	$	11,122
Additions	331
Amortization	(975		)
Balance at end of period	$	10,478

Schedule of assumptions included in loan servicing rights

The following table presents assumptions utilized in determining the fair value of loan servicing rights as of March 31, 2017 and December 31, 2016.



	Mortgage
As of March 31, 2017
Prepayment speed	0.0 - 36.6%
Weighted average (“WA”) discount rate	10.1		%
Cost to service/per year	$	65
Ancillary income/per year	$	31
WA float range	0.98		%
As of December 31, 2016
Prepayment speed	0.0 - 99.8%
WA discount rate	10.1		%
Cost to service/per year	$65-$90
Ancillary income/per year	$	28
WA float range	1.0		%