Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2018

Mortgage Servicing Rights

Schedule of estimated future amortization expense for mortgage servicing assets

Amortization of mortgage servicing rights (“MSRs”) was $1.0 million and $0.9 million for the three months ended June 30, 2018 and 2017, respectively, and $2.0 million and $1.9 million for the six months ended June 30, 2018 and 2017, respectively. The estimated future amortization expenses for MSRs over the next five years are as follows:

	Estimated
(dollars in thousands)	Amortization
Under one year	$	2,469
One to two years		2,183
Two to three years		1,932
Three to four years		1,707
Four to five years		1,508

Schedule of gross carrying values, accumulated amortization, and net carrying values of mortgage servicing assets

	June 30,		December 31,
(dollars in thousands)	2018		2017
Gross carrying amount	$	63,043	$	56,571
Less: accumulated amortization		45,383		43,375
Net carrying value	$	17,660	$	13,196

Schedule of changes in amortized mortgage servicing assets

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2018		2017		2018		2017
Balance at beginning of period	$	18,659	$	15,800	$	13,196	$	16,809
Originations		21		1		28		4
Purchases		—		—		6,444		—
Amortization		(1,020)		(924)		(2,008)		(1,936)
Balance at end of period	$	17,660	$	14,877	$	17,660	$	14,877
Fair value of amortized MSRs at beginning of period	$	29,048	$	24,495	$	21,697	$	25,160
Fair value of amortized MSRs at end of period	$	28,344	$	23,263	$	28,344	$	23,263

Schedule of quantitative assumptions used in determining lower of cost or fair value of MSRs

	June 30, 2018							December 31, 2017
						Weighted							Weighted
	Range					Average		Range					Average
Conditional prepayment rate	7.72	%	-	20.28	%	8.13	%	8.53	%	-	19.63	%	9.04	%
Life in years (of the MSR)	3.26		-	7.98		7.31		3.29		-	7.15		6.76
Weighted-average coupon rate	3.96	%	-	6.75	%	4.02	%	3.97	%	-	6.79	%	4.04	%
Discount rate	10.50	%	-	10.50	%	10.50	%	10.50	%	-	10.52	%	10.50	%