v3.26.1
Mortgage Servicing Rights (“MSRs”)
 3 Months Ended
Mar. 31, 2026
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights (“MSRs”) Mortgage Servicing Rights (“MSRs”)
The right to service loans for others is recognized as an MSR on the balance sheet. MSRs are recognized either when purchased or when originated loans are sold with servicing retained. The unpaid principal balances of loans serviced for others were approximately $2.0 billion and $1.8 billion at March 31, 2026 and December 31, 2025, respectively. In addition, approximately $3.3 billion and $3.1 billion at March 31, 2026 and December 31, 2025, respectively, of loans were sub-serviced on behalf of other unaffiliated investors.
The following summarizes the components of loan servicing fees which are reported in loan servicing fees in the Company’s consolidated statements of income as of the periods set forth in the table below (dollars in thousands):
Three Months Ended March 31,
20262025
Contractual servicing fees$2,211 $1,682 
Late fees15 17 
Other fees— 3 
Change in fair value of MSRs and paid in full$1,322 $(707)
Total$3,548 $995 

At March 31, 2026 the fair value of MSRs was determined using discount rates between 9.5% and 11.5%, average cost of servicing between $70 and $85 per file per year, and a prepayment speed of 11.5%. At December 31, 2025 the fair value of MSRs was determined using discount rates between 9.0% and 11.5%, average cost of servicing between $70 and $85 per file per year, and a prepayment speed of 12.1%.
The following summarizes mortgage servicing rights capitalized and amortized as of the periods set forth in the table below (dollars in thousands):
Three Months Ended March 31,
20262025
Balance – Beginning of period
$17,048 $15,133 
Additions
2,238 1,066 
Paid in full loans
(488)(128)
Change in fair value
1,810 (579)
Balance – End of period
$20,608 $15,492 
The following table summarizes the hypothetical effect on the fair value of servicing rights using adverse changes of 10.0% and 20.0% to the weighted-average of certain significant assumptions used in valuing these assets as of the dates indicated (dollars in thousands, except per loan):
March 31, 2026December 31, 2025
Actual10%
Adverse
Change		20%
Adverse
Change		Actual10%
Adverse
Change		20%
Adverse
Change
Discount rate change9.5 %$19,790 $19,032 9.5 %$16,416 $15,829 
Constant prepayment rate10.2 %19,770 18,996 12.1 %16,321 15,662 
Cost to service (per loan)$74 20,347 20,087 $74 16,813 16,579