HBHC » Topics » Mortgage Servicing Rights

These excerpts taken from the HBHC 10-K filed Feb 27, 2009.

Mortgage Servicing Rights

          The Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets on January 1, 2007 without material impact. SFAS No. 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable, and permits an entity to subsequently measure those servicing assets and servicing liabilities at fair value. Under SFAS. No. 156, the Company decided to continue to use the amortization method instead of adopting the fair value method. Management has determined that it has one class of servicing rights which is based on the type of loan. The risk characteristics of the underlying financial assets used to stratify servicing assets for purposes of measuring impairment are interest rate, type of product (fixed versus variable), duration and asset quality. The book value of mortgage servicing rights at December 31, 2008 and December 31, 2007 was $0.3 million and $0.5 million, respectively. The fair value of mortgage servicing rights at December 31, 2008 and December 31, 2007 was $1.0 million and $1.8 million, respectively.

Mortgage Servicing Rights

          The Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets on January 1, 2007 without material impact. SFAS No. 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable, and permits an entity to subsequently measure those servicing assets and servicing liabilities at fair value. Under SFAS. No. 156, the Company decided to continue to use the amortization method instead of adopting the fair value method. Management has determined that it has one class of servicing rights which is based on the type of loan. The risk characteristics of the underlying financial assets used to stratify servicing assets for purposes of measuring impairment are interest rate, type of product (fixed versus variable), duration and asset quality. The book value of mortgage servicing rights at December 31, 2008 and December 31, 2007 was $0.3 million and $0.5 million, respectively. The fair value of mortgage servicing rights at December 31, 2008 and December 31, 2007 was $1.0 million and $1.8 million, respectively.

Mortgage Servicing Rights

          The Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets on January 1, 2007 without material impact. SFAS No. 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable, and permits an entity to subsequently measure those servicing assets and servicing liabilities at fair value. Under SFAS. No. 156, the Company decided to continue to use the amortization method instead of adopting the fair value method. Management has determined that it has one class of servicing rights which is based on the type of loan. The risk characteristics of the underlying financial assets used to stratify servicing assets for purposes of measuring impairment are interest rate, type of product (fixed versus variable), duration and asset quality. The book value of mortgage servicing rights at December 31, 2008 and December 31, 2007 was $0.3 million and $0.5 million, respectively. The fair value of mortgage servicing rights at December 31, 2008 and December 31, 2007 was $1.0 million and $1.8 million, respectively.

Mortgage Servicing Rights



          The Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets on January 1, 2007 without material impact. SFAS No. 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable, and permits an entity to subsequently measure those servicing assets and
servicing liabilities at fair value. Under SFAS. No. 156, the Company decided to continue to use the amortization method instead of adopting the fair value method. Management has determined that it has one class of servicing rights which is based on the type of loan. The risk characteristics of the underlying financial assets used to stratify servicing assets for purposes of measuring impairment are interest rate, type of product (fixed versus variable), duration and asset quality.
The book value of mortgage servicing rights at December 31, 2008 and December 31, 2007 was $0.3 million and $0.5 million, respectively. The fair value of mortgage servicing rights at December 31, 2008 and December 31, 2007 was $1.0 million and $1.8 million, respectively.



These excerpts taken from the HBHC 10-K filed Feb 27, 2008.

Mortgage Servicing Rights

          The Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets on January 1, 2007 without material impact. SFAS No. 156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable, and permits an entity to subsequently measure those servicing assets and servicing liabilities at fair value. Under SFAS. No. 156, the Company decided to continue to use the amortization method instead of adopting the fair value method. Management has determined that it has one class of servicing rights which is based on the type of loan.

56



HANCOCK HOLDING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies (continued)

Mortgage
Servicing Rights




          The
Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets on
January 1, 2007 without material impact. SFAS No. 156 requires all separately
recognized servicing assets and servicing liabilities to be initially measured at fair
value, if practicable, and permits an entity to subsequently measure those servicing
assets and servicing liabilities at fair value. Under SFAS. No. 156, the Company
decided to continue to use the amortization method instead of adopting the fair value
method. Management has determined that it has one class of servicing rights which is
based on the type of loan.



56









HANCOCK
HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Note 1.
Summary of Significant Accounting Policies (continued)



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