Quarterly report pursuant to Section 13 or 15(d)

MORTGAGE BANKING ACTIVITIES (Tables)

v3.20.2
MORTGAGE BANKING ACTIVITIES (Tables)
6 Months Ended
Jun. 30, 2020
Mortgage Banking Activities [Abstract]  
Residential Mortgage Loan Production

 

 

June 30, 2020

 

 

Unpaid Principal

 

 

 

(Dollars in Thousands)

 

Balance/Notional

 

Fair Value

Residential Mortgage Loans Held for Sale

 

$

73,498

 

$

76,610

Residential Mortgage Loan Commitments ("IRLCs")(1)

 

 

154,759

 

 

5,342

Forward Sales Contracts(2)

 

 

178,500

 

 

(963)

 

 

 

 

 

$

80,989

 

 

 

 

 

 

 

(1)Recorded in other assets at fair value

 

 

 

 

 

 

(2)Recorded in other liabilities at fair value

 

 

 

 

 

 

Mortgage banking revenue

 

 

Three Months Ended

 

Six Months Ended

(Dollars in Thousands)

 

June 30, 2020

 

June 30, 2020

Net Realized Gains on Sales of Mortgage Loans

 

$

14,580

 

$

17,987

Net Change in Unrealized Gain on Mortgage Loans Held for Sale

 

 

1,092

 

 

1,830

Net Change in the Fair Value of Mortgage Loan Commitments (IRLCs)

 

 

1,487

 

 

3,142

Net Change in the Fair Value of Forward Sales Contracts

 

 

1,625

 

 

231

Pair-Offs on Net Settlement of Forward Sales Contracts

 

 

(3,019)

 

 

(4,395)

Mortgage Servicing Rights Additions

 

 

2,049

 

 

2,049

Total Mortgage Banking Revenues

 

$

17,814

 

$

20,844

Summary of mortgage servicing rights

(Dollars in Thousands)

 

June 30, 2020

Number of Residential Mortgage Loans Serviced for Others

 

 

1,375

Outstanding Principal Balance of Residential Mortgage Loans Serviced for Others

 

$

355,778

Weighted Average Interest Rate

 

 

3.94%

Remaining Contractual Term (in months)

 

 

318

Summary of mortgage servicing rights

(Dollars in Thousands)

 

Beginning Balance

$

910

Additions due to loans sold with servicing retained

 

2,049

Deletions and amortization

 

(97)

Ending Balance

$

2,862

Key unobservable inputs used in determining the fair value of mortgage servicing rights

 

Minimum

 

 

Maximum

Discount Rates

 

11.00%

 

 

15.00%

Annual prepayment speeds

 

10.02%

 

 

62.88%

Cost of Servicing (basis points)

 

90

 

 

110

Warehouse Line Borrowings

 

Amounts

(Dollars in Thousands)

Outstanding

$25 million warehouse line of credit agreement expiring October 2020. Interest is at LIBOR plus 2.25%, with a floor rate of 3.50%. A cash pledge deposit of $0.1 million is required by the lender.

$

16,220

 

 

 

$50 million master repurchase agreement without defined expiration. Interest is at the LIBOR plus 2.24% to 3.00%. A cash pledge deposit of $0.5 million is required by the lender.

 

27,844

 

 

 

$50 million warehouse line of credit agreement expiring in September 2020. Interest is at the LIBOR plus 2.25%

 

16,663

 

 

 

 

$

60,727