LOAN SERVICING (Tables) - Mortgage Servicing Rights

3 Months Ended

Mar. 31, 2024

Servicing Assets at Fair Value [Line Items]

Schedule of Servicing Asset at Amortized Cost

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

TABLE 6.1

(in millions)	March 31, 2024		December 31, 2023
Mortgage loans sold with servicing retained	$	5,924	$	5,729

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

TABLE 6.2

	Three Months Ended March 31,
(in millions)	2024		2023
Mortgage loans sold with servicing retained	$	316	$	198
Pre-tax net gains (losses) resulting from above loan sales (1)	6		—
Mortgage servicing fees (1)	4		3

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

Following is a summary of activity relating to MSRs:

TABLE 6.3

	Three Months Ended March 31,
(in millions)	2024		2023
Balance at beginning of period	$	59.5	$	52.8
Additions	3.9		2.5
Payoffs and curtailments	(0.5)		(0.3)
Impairment (charge) / recovery	0.2		—
Amortization / other	(0.6)		(0.7)
Balance at end of period	$	62.5	$	54.3
Fair value, beginning of period	$	71.8	$	68.6
Fair value, end of period	75.2		67.8

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 6.4

(dollars in millions)	March 31, 2024			December 31, 2023
Weighted average life (months)	93			92
Constant prepayment rate (annualized)	7.8		%	7.9		%
Discount rate	10.3		%	10.2		%
Effect on fair value due to change in interest rates:
+2.00%	$	6		$	7
+1.00%	5			5
+0.50%	3			3
+0.25%	2			2
-0.25%	(2)			(2)
-0.50%	(4)			(4)
-1.00%	(7)			(8)
-2.00%	(16)			(21)
-3.00%	(34)			(42)