v3.25.2
Servicing Rights
 6 Months Ended
Jun. 30, 2025
Transfers and Servicing [Abstract]  
Servicing Rights Servicing Rights
Mortgage servicing rights
The following table details the activity in the Company's mortgage servicing rights (“MSR”) for the three and six-month periods ended June 30, 2025 and 2024:
Three Months Ended March 31,Six Months Ended June 30,
(In Thousands)2025202420252024
Balance, beginning of period$26,814 $20,055 $26,439 $19,564 
Additions for new MSR capitalized1,510 1,103 2,740 1,619 
Changes in fair value:
  Due to changes in model inputs of assumptions (1)
(355)239 (677)528 
  Other (2)
(463)(320)(996)(634)
Balance, end of period$27,506 $21,077 $27,506 $21,077 

(1) Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
(2) Represents changes due to collection/realization of expected cash flows over time.

The following table details information related to our serviced mortgage loan portfolio as of June 30, 2025 and December 31, 2024:
(In Thousands)June 30, 2025December 31, 2024
Balance of mortgage loans serviced for others$1,553,987 $1,460,720 
Weighted average rate of note
4.59 %4.46 %
MSR as a percentage of serviced loans1.77 %1.81 %

    The Company recognized servicing fees of $1.4 million and $1.1 million during the three-month periods ending June 30, 2025 and 2024, respectively, and $2.9 million and $2.1 million during the six-month periods ending June 30, 2025 and 2024, respectively, which includes contractually specified servicing fees and ancillary fees as a component of other noninterest income in the Company's Consolidated Statements of Income.
    The following table outlines the weighted average key assumptions used in measuring the fair value of MSRs and the sensitivity of the current fair value of MSRs to immediate adverse changes in those assumptions as of the dates indicated. See Note 9 for additional information on key assumptions for MSR fair value determinations.

(In Thousands)
June 30, 2025December 31, 2024
Fair value of MSRs
$27,506 $26,439 
Expected weighted-average life (in years)
9.509.51
Key assumptions:
   Constant prepayment rate1
9.12 %9.09 %
      Impact on fair value from 10% adverse change
($930)($935)
      Impact on fair value from 25% adverse change
($2,215)($2,222)
   Discount rate
10.96 %10.99 %
      Impact on fair value from 100 basis point increase
($1,081)($1,592)
      Impact on fair value from 200 basis point increase
($2,071)($2,544)
   Cost to service assumptions ($ per loan)
$81 $81 
      Impact on fair value from 10% adverse change
($237)($235)
      Impact on fair value from 25% adverse change
($592)($588)
1Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.
    These sensitivities in the preceding table are hypothetical and caution should be exercised when relying on this data. Changes in value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in the value may not be linear. Also, the effect of a variation in a particular assumption on the value of the MSR held is calculated independently without changing any other assumptions. In reality, changes in one factor may result in changes in others, which might magnify or counteract the sensitivities.

Commercial servicing rights
    The commercial servicing rights asset (“CSR”) has a carrying value of $2.4 million at June 30, 2025 and $2.2 million at December 31, 2024, respectively, and is included in other assets and carried at fair value on the Company's Consolidated Balance Sheets. Total commercial loans serviced for others were $306.0 million and $279.7 million at June 30, 2025 and December 31, 2024, respectively. Key assumptions used in measuring the fair value of the CSR as of June 30, 2025 and December 31, 2024 include a constant prepayment rate of 11.38% and a discount rate of 12.00%.