LOAN SERVICING (Tables)

12 Months Ended

Dec. 31, 2023

Mortgage Servicing Rights

Servicing Assets at Fair Value [Line Items]

Servicing Asset at Amortized Cost

The unpaid principal balance of mortgage loans serviced for others is listed below:

TABLE 8.1

December 31	2023		2022
(in millions)
Mortgage loans sold with servicing retained	$	5,729	$	5,242

The following table summarizes activity relating to mortgage loans sold with servicing retained:

TABLE 8.2

Year Ended December 31	2023		2022		2021
(in millions)
Mortgage loans sold with servicing retained	$	980	$	1,056	$	1,762
Pre-tax net gains (losses) resulting from above loan sales (1)	3		(12)		43
Mortgage servicing fees (1)	14		13		12

(1) Recorded in mortgage banking operations on the Consolidated Statements of Income.

Following is a summary of activity relating to MSRs:

TABLE 8.3

Year Ended December 31	2023		2022		2021
(in millions)
Balance at beginning of period	$	52.8	$	44.4	$	35.6
Additions	11.3		13.0		19.2
Payoffs and curtailments	(2.2)		(4.4)		(12.8)
Impairment (charge) / recovery	(0.2)		2.5		4.8
Amortization	(2.2)		(2.7)		(2.4)
Balance at end of period	$	59.5	$	52.8	$	44.4
Fair value, beginning of period	$	68.6	$	46.0	$	35.6
Fair value, end of period	71.8		68.6		46.0

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement

Following is a summary of the sensitivity of the fair value of MSRs to changes in key assumptions:

TABLE 8.4

December 31	2023			2022
(dollars in millions)
Weighted average life (months)	92			96
Constant prepayment rate (annualized)	7.9		%	7.3		%
Discount rate	10.2		%	10.0		%
Effect on fair value due to change in interest rates:
+2.00%	$	7		$	9
+1.00%	5			4
+0.50%	3			2
+0.25%	2			1
-0.25%	(2)			(1)
-0.50%	(4)			(3)
-1.00%	(8)			(6)
-2.00%	(21)			(15)
-3.00%	(42)			(29)

SBA-Guaranteed Loan Servicing

Servicing Assets at Fair Value [Line Items]

Servicing Asset at Amortized Cost

The unpaid principal balance of SBA-guaranteed loans serviced for investors was as follows:

TABLE 8.5

December 31	2023		2022
(in millions)
SBA loans sold to investors with servicing retained	$	142	$	186

The following table summarizes activity relating to SBA loans sold with servicing retained:

TABLE 8.6

Year Ended December 31	2023		2022		2021
(in millions)
SBA loans sold with servicing retained	$	7	$	15	$	64
Pretax gains resulting from above loan sales (1)	1		1		8
SBA servicing fees (1)	2		2		2

(1) Recorded in other non-interest income on the Consolidated Statements of Income.

Following is a summary of SBA servicing rights:

TABLE 8.7

Year Ended December 31	2023		2022		2021
(in millions)
Balance at end of period	$	1	$	2	$	3
Fair value, end of period	1		2		3