v3.25.2
Mortgage Loan Servicing, Origination, and Loans Held for Sale (Tables)
6 Months Ended
Jun. 30, 2025
Mortgage Loan Servicing, Origination, and Loans Held for Sale  
Summary of changes in the fair value of MSRs and its offsetting hedge

Three Months Ended

    

Six Months Ended

 

(Dollars in thousands)

    

June 30, 2025

    

June 30, 2024

    

June 30, 2025

    

June 30, 2024

 

 

(Decrease)/increase in fair value of MSRs

$

(1,689)

$

830

$

(4,770)

$

3,214

Decay of MSRs

 

(2,284)

 

(2,566)

 

(3,312)

 

(4,007)

Gain (loss) related to derivatives

1,248

(1,424)

3,588

(4,004)

Net effect on Consolidated Statements of Income

$

(2,725)

$

(3,160)

$

(4,494)

$

(4,797)

Schedule of characteristics and sensitivity analysis of the MSR

The characteristics and sensitivity analysis of the MSRs are included in the following table:

June 30,

December 31,

(Dollars in thousands)

    

2025

   

    

2024

   

   

Composition of residential loans serviced for others

Fixed-rate mortgage loans

100.0

%  

100.0

%  

Adjustable-rate mortgage loans

%  

%  

Total

100.0

%  

100.0

%  

Weighted average life

7.66

years

7.97

years  

Constant Prepayment rate (CPR)

7.6

%  

7.0

%  

Estimated impact on fair value of a 10% increase

$

(965)

$

(658)

Estimated impact on fair value of a 20% increase

(1,900)

(1,298)

Estimated impact on fair value of a 10% decrease

1,005

666

Estimated impact on fair value of a 20% decrease

2,056

1,328

Weighted average discount rate

10.7

%  

10.9

%  

Estimated impact on fair value of a 10% increase

$

(3,215)

$

(3,166)

Estimated impact on fair value of a 20% increase

(6,362)

(6,339)

Estimated impact on fair value of a 10% decrease

3,167

3,022

Estimated impact on fair value of a 20% decrease

6,075

5,738

Effect on fair value due to change in interest rates

25 basis point increase

$

2,313

$

1,761

50 basis point increase

4,439

3,296

25 basis point decrease

(2,389)

(1,952)

50 basis point decrease

(4,803)

(4,052)