MORTGAGE BANKING ACTIVITIES (Tables)
|
6 Months Ended |
Jun. 30, 2025 |
|---|
| MORTGAGE BANKING ACTIVITIES |
|
| Activity for Mortgage Loans HFS, at fair value |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | (in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | | Balance, beginning of period | | $ | 9,140 | | $ | 80,884 | | $ | 8,312 | | $ | 3,227 | | Origination of mortgage loans held for sale | | | 51,788 | | | 52,706 | | | 93,021 | | | 79,752 | | Transferred from held for investment to held for sale | | | — | | | (1,291) | | | — | | | 68,173 | | Proceeds from the sale of mortgage loans held for sale | | | (53,561) | | | (123,693) | | | (95,377) | | | (142,466) | | Net gain on mortgage loans held for sale | | | 1,483 | | | 1,097 | | | 2,894 | | | 1,017 | | Balance, end of period | | $ | 8,850 | | $ | 9,703 | | $ | 8,850 | | $ | 9,703 | |
|
| Components of Mortgage Banking Income |
| | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | | June 30, | | June 30, | | | (in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | | | | | Net gain realized on sale of mortgage loans held for sale | | $ | 1,354 | | $ | 1,120 | | $ | 2,637 | | $ | 1,685 | | | Fair value adjustment for correspondent loans reclassified to held for sale | | | — | | | — | | | — | | | (997) | | | Net change in fair value recognized on loans held for sale | | | 26 | | | (38) | | | (19) | | | 107 | | | Net change in fair value recognized on rate lock loan commitments | | | 166 | | | (21) | | | 478 | | | 202 | | | Net change in fair value recognized on forward contracts | | | (63) | | | 36 | | | (202) | | | 20 | | | Net gain recognized | | | 1,483 | | | 1,097 | | | 2,894 | | | 1,017 | | | | | | | | | | | | | | | | | | Loan servicing income | | | 825 | | | 938 | | | 1,650 | | | 1,754 | | | Amortization of mortgage servicing rights | | | (412) | | | (423) | | | (827) | | | (849) | | | Net servicing income recognized | | | 413 | | | 515 | | | 823 | | | 905 | | | Total mortgage banking income | | $ | 1,896 | | $ | 1,612 | | $ | 3,717 | | $ | 1,922 | | |
|
| Activity for capitalized MSRs |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | (in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | | | | | | | | Balance, beginning of period | | $ | 6,876 | | $ | 7,103 | | $ | 6,975 | | $ | 7,411 | Additions | | | 377 | | | 350 | | | 693 | | | 468 | Amortized to expense | | | (412) | | | (423) | | | (827) | | | (849) | Balance, end of period | | $ | 6,841 | | $ | 7,030 | | $ | 6,841 | | $ | 7,030 |
|
| Other information relating to MSRs |
| | | | | | | | | | (dollars in thousands) | | June 30, 2025 | | | December 31, 2024 | | | | | | | | | | | | | Fair value of mortgage servicing rights portfolio | | $ | 17,157 | | | $ | 17,159 | | | Monthly weighted average prepayment rate of unpaid principal balance* | | | 126 | % | | | 125 | % | | Discount rate | | | 9.84 | % | | | 10.25 | % | | Weighted average foreclosure rate | | | 0.08 | % | | | 0.06 | % | | Weighted average life in years | | | 7.55 | | | | 7.51 | | |
* | Rates are applied to individual tranches with similar characteristics. |
|
| Schedule of notional amounts and fair values of mortgage loans HFS at fair value and mortgage banking derivatives |
| | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | | | Notional | | | | | Notional | | | | | (in thousands) | | Amount | | Fair Value | | Amount | | Fair Value | | | | | | | | | | | | | | | | Included in Mortgage loans held for sale: | | | | | | | | | | | | | | Mortgage loans held for sale, at fair value | | $ | 8,674 | | $ | 8,850 | | $ | 8,117 | | $ | 8,312 | | | | | | | | | | | | | | | | Included in other assets: | | | | | | | | | | | | | | Rate lock loan commitments | | $ | 26,703 | | $ | 701 | | $ | 12,592 | | $ | 223 | | Mandatory forward contracts | | | — | | | — | | | 18,776 | | | 70 | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | | Mandatory forward contracts | | $ | 25,583 | | $ | 132 | | $ | — | | $ | — | |
|