v3.25.2
Mortgage Servicing Rights
 6 Months Ended
Jun. 30, 2025
Transfers and Servicing of Financial Assets [Abstract]  
Mortgage Servicing Rights Mortgage servicing rights
Changes in the Company’s mortgage servicing rights were as follows for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
 202520242025 2024 
Carrying value at beginning of period$156,379 $165,674 $162,038 $164,249 
Capitalization1,228 1,518 1,649 2,649 
Change in fair value:
    Due to payoffs/paydowns
(3,154)(3,825)(6,265)(6,549)
    Due to change in valuation inputs or assumptions(989)1,138 (3,958)4,156 
        Carrying value at end of period$153,464 $164,505 $153,464 $164,505 
The following table summarizes servicing income and expense, which are included in mortgage banking income and other noninterest expense, respectively, in the consolidated statements of income for the three and six months ended June 30, 2025 and 2024: 
 Three Months Ended June 30,Six Months Ended June 30,
 202520242025 2024 
   Servicing income$6,936 $7,316 $14,013 $14,663 
   Change in fair value of mortgage servicing rights(4,143)(2,687)(10,223)(2,393)
   Change in fair value of derivative hedging instruments(88)(1,649)2,923 (4,984)
Servicing income
2,705 2,980 6,713 7,286 
Servicing expenses1,843 1,933 3,565 3,880 
          Net servicing income
$862 $1,047 $3,148 $3,406 
Data and key economic assumptions, as well as the valuation's sensitivity to interest rate fluctuations, related to the Company’s mortgage servicing rights as of June 30, 2025 and December 31, 2024 are as follows: 
 June 30,December 31,
 20252024
Unpaid principal balance of mortgage loans sold and serviced for others$9,901,599 $10,235,048 
Weighted-average prepayment speed (CPR)6.43%6.04%
Estimated impact on fair value of a 10% increase$(4,266)$(4,213)
Estimated impact on fair value of a 20% increase$(8,263)$(8,168)
Discount rate9.68%10.2%
Estimated impact on fair value of a 100 bp increase$(7,195)$(7,515)
Estimated impact on fair value of a 200 bp increase$(13,782)$(14,397)
Weighted-average coupon interest rate3.62%3.59%
Weighted-average servicing fee (basis points)2727
Weighted-average remaining maturity (in months)337336
The sensitivity calculations above are hypothetical changes and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of an adverse variation in a particular assumption on the fair value of the mortgage servicing rights is calculated without changing any other assumption, while in reality changes in one factor may result in changes in another, which may either magnify or counteract the effect of the change. The derivative instruments utilized by the Company, which were not included in the above sensitivities, would serve to offset the estimated impacts to fair value included in the table above. See Note 9, “Derivatives” for additional information on these derivative instruments.
As of June 30, 2025 and December 31, 2024, the Company held mortgage escrow deposits totaling $114,704 and $68,995, respectively, related to loans sold with servicing retained.