Transfers and Servicing of Financial Assets (Including Mortgage Banking Activity)

12 Months Ended

Dec. 31, 2015

Transfers and Servicing of Financial Assets (Including Mortgage Banking Activity)

TRANSFERS AND SERVICING OF FINANCIAL ASSETS (INCLUDING MORTGAGE BANKING ACTIVITY)

Commercial Banking Activity

The unpaid principal balances of loans serviced for others were $888.4 million and $533.8 million at December 31, 2015 and 2014, respectively. Custodial escrow balances maintained in connection with the foregoing portfolio of loans serviced for others, and included in demand deposits, were immaterial at December 31, 2015 and 2014.

Mortgage Banking Activity

IBERIABANK through its subsidiary, IMC, originates mortgage loans for sale into the secondary market. The loans originated primarily consist of residential first mortgages that conform to standards established by the GSEs, but can also consist of junior lien loans secured by residential property. These sales are primarily to private companies that are unaffiliated with the GSEs on a servicing-released basis. Changes to the carrying amount of mortgage loans held for sale at December 31 are presented in the following table.



(Dollars in thousands)	2015			2014			2013
Balance at beginning of period	$	140,072		$	128,442		$	267,475
Originations and purchases	2,464,588			1,675,538			2,116,460
Sales, net of gains	(2,432,979		)	(1,657,409		)	(2,255,493		)
Other	(5,434		)	(6,499		)	—
Balance at end of period	$	166,247		$	140,072		$	128,442

The following table details the components of mortgage income for the years ended December 31:



(Dollars in thousands)	2015			2014			2013
Fair value changes of derivatives and mortgage loans held for sale:
Mortgage loans held for sale and derivatives	$	2,216		$	631		$	(4,822	)
Derivative settlements, net	(5,017		)	(8,743		)	3,100
Gains on sales	83,131			59,156			65,393
Servicing and other income, net	792			753			526
	$	81,122		$	51,797		$	64,197

Mortgage Servicing Rights

Mortgage servicing rights are recorded at the lower of cost or market value in “other assets” on the Company's consolidated balance sheets and amortized over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights had the following carrying values as of the periods indicated:



	December 31, 2015							December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Mortgage servicing rights	$	6,104	$	(2,320	)	$	3,784	$	4,751	$	(1,253	)	$	3,498

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References + Details