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Loan Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2017
Transfers and Servicing [Abstract]  
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:
(Dollars in thousands)
 
Commercial
Real Estate
 
Mortgage
 
Total
For the three months ended September 30, 2017
 
 
 
 
 
 
Fair value, beginning of period
 
$
486

 
$
64,036

 
$
64,522

Additions from loans sold with servicing retained
 
—

 
2,324

 
2,324

Changes in fair value due to:
 
 
 
 
 
 
Reductions from pay-offs, pay downs and run-off
 
(31
)
 
(579
)
 
(610
)
Changes in estimates of fair value (1)
 
—

 
(4,041
)
 
(4,041
)
Fair value, end of period
 
$
455

 
$
61,740

 
$
62,195

For the nine months ended September 30, 2017
 
344

 
47741

 
48085

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
 
188

 
6,273

 
6,461

Changes in fair value due to:
 
0

 
0

 
 
Reductions from pay-offs, pay downs and run-off
 
(77
)
 
(1,803
)
 
(1,880
)
Changes in estimates of fair value (1)
 
—

 
(6,362
)
 
(6,362
)
Fair value, end of period
 
$
455

 
$
61,740

 
$
62,195

Principal balance of loans serviced for others that have servicing capitalized
 
$
41,798

 
$
7,102,485

 
$
7,144,283

For the three and nine months ended September 30, 2016
 
0

 
0

 
0

Fair value, beginning of period
 
$
—

 
$
—

 
$
—

Acquired in Talmer Bancorp, Inc. merger
 
$
365

 
$
42,097

 
$
42,462

Additions from loans sold with servicing retained
 
—

 
810

 
810

Changes in fair value due to:
 
 
 
 
 
0

Reductions from pay-offs, pay downs and run-off
 
(2
)
 
(685
)
 
(687
)
Changes in estimates of fair value(1)
 
—

 
(657
)
 
(657
)
Fair value, end of period
 
$
363

 
$
41,565

 
$
41,928

Principal balance of loans serviced
 
$
79,405

 
$
5,523,423

 
$
5,602,828

(1) 
Represents estimated LSR value change resulting primarily from market-driven changes in interest rates and prepayments. Included in "Net gain on sale of loans and other 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 and nine months ended September 30, 2016 are as follows:
(Dollars in thousands)
 
For the Three Months Ended September 30, 2016
 
For the Nine Months Ended September 30, 2016
Balance at beginning of period
 
$
9,677

 
$
11,122

Additions
 
695

 
1,612

Amortization
 
(1,105
)
 
(3,055
)
Change in valuation allowance
 
198

 
(214
)
Balance at end of period
 
$
9,465

 
$
9,465
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 September 30, 2017 and December 31, 2016.
 
 
Mortgage
As of September 30, 2017
 
 

Prepayment speed
 
0.0 - 37.66%

Weighted average ("WA") discount rate
 
10.1
%
Cost to service/per year
 
$
66

Ancillary income/per year
 
$
31

WA float range
 
1.2
%
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
%