Quarterly report pursuant to Section 13 or 15(d)

MORTGAGE BANKING ACTIVITIES (Tables)

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

 

 

September 30, 2020

 

 

Unpaid Principal

 

 

 

(Dollars in Thousands)

 

Balance/Notional

 

Fair Value

Residential Mortgage Loans Held for Sale

 

$

111,947

 

$

116,561

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

 

 

192,935

 

 

6,031

Forward Sales Contracts(2)

 

 

210,500

 

 

(400)

 

 

 

 

 

$

122,192

 

 

 

 

 

 

 

(1)Recorded in other assets at fair value

 

 

 

 

 

 

(2)Recorded in other liabilities at fair value

 

 

 

 

 

 

Mortgage banking revenue

 

 

Three Months Ended

 

Nine Months Ended

(Dollars in Thousands)

 

September 30, 2020

 

September 30, 2020

Net realized gains on sales of mortgage loans

 

$

21,423

 

$

39,410

Net change in unrealized gain on mortgage loans held for sale

 

 

1,499

 

 

3,329

Net change in the fair value of mortgage loan commitments (IRLCs)

 

 

691

 

 

3,833

Net change in the fair value of forward sales contracts

 

 

560

 

 

791

Pair-Offs on net settlement of forward sales contracts

 

 

(3,049)

 

 

(7,445)

Mortgage servicing rights additions

 

 

763

 

 

2,813

Net origination fees

 

 

1,096

 

 

2,902

Total mortgage banking revenues

 

$

22,983

 

$

45,633

Summary of mortgage servicing rights

(Dollars in Thousands)

 

September 30, 2020

Number of residential mortgage loans serviced for others

 

 

1,544

Outstanding principal balance of residential mortgage loans serviced for others

 

$

409,801

Weighted average interest rate

 

 

3.73%

Remaining contractual term (in months)

 

 

321

Summary of mortgage servicing rights

(Dollars in Thousands)

 

Beginning balance

$

910

Additions due to loans sold with servicing retained

 

2,813

Deletions and amortization

 

(375)

Ending balance

$

3,348

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

 

Minimum

 

 

Maximum

Discount rates

 

11.00%

 

 

15.00%

Annual prepayment speeds

 

9.54%

 

 

21.24%

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.(1)

$

23,860

 

 

 

$50 million master repurchase agreement without defined expiration. Interest is at the LIBOR plus 2.24% to 3.00%, with a floor rate of 3.25%. A cash pledge deposit of $0.5 million is required by the lender.

 

41,528

 

 

 

$50 million warehouse line of credit agreement expiring in September 2020. Interest is at the LIBOR plus 2.25%.(2)

 

19,585

 

 

 

 

$

84,973

(1) In October 2020, the warehouse line was extended to November 15, 2020 with a $40 million line of credit.

(2) In October 2020, the warehouse line was renewed through September 30, 2021 with an interest rate of LIBOR plus 2.75%.