Mortgage Servicing Rights (“MSRs”) (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Fees Received on Mortgage Servicing Rights

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,
	2026		2025
Contractual servicing fees	$	2,211	$	1,682
Late fees	15		17
Other fees	—		3
Change in fair value of MSRs and paid in full	$	1,322	$	(707)
Total	$	3,548	$	995

Schedule of Servicing Asset at Amortized Cost

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,
	2026		2025
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

Schedule of Significant Assumptions Used

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, 2026							December 31, 2025
	Actual			10% Adverse Change		20% Adverse Change		Actual			10% Adverse Change		20% Adverse Change
Discount rate change	9.5		%	$	19,790	$	19,032	9.5		%	$	16,416	$	15,829
Constant prepayment rate	10.2		%	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