The Company originates residential mortgage loans for the purpose of selling to the GSEs or other third-party investors in the secondary market on a servicing-retained basis, typically within 60 days of origination. The Company also holds a small amount of mortgage loans purchased from the collateral underlying its MSR. Mortgage loans held-for-sale are recorded at fair value as a result of a fair value option election. The following table presents the carrying value of Company’s mortgage loans held-for-sale as of June 30, 2026 and December 31, 2025:


(in thousands)	June 30, 2026		December 31, 2025
Unpaid principal balance	$	12,542	$	13,336
Mark-to-market adjustments	195		294
Total mortgage loans held-for-sale	$	12,737	$	13,630

The following table presents a reconciliation of the Company’s mortgage loans held-for-sale for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2026		2025		2026		2025
Balance at beginning of period	$	18,536	$	8,406	$	13,630	$	2,334
Originations and purchases of mortgage loans	83,976		48,669		176,294		77,539
Sales and principal collections	(89,825)		(47,260)		(177,088)		(70,175)
Unrealized (losses) gains on mortgage loans	50		73		(99)		190
Balance at end of period	$	12,737	$	9,888	$	12,737	$	9,888

The Company is subject to credit risk associated with its originated mortgage loans during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be minimal as it holds the loans for a short period of time and the market for these loans continues to be highly liquid.

The Company utilizes repurchase agreements and warehouse lines of credit to finance its mortgage loans held-for-sale. At June 30, 2026 and December 31, 2025, the Company had pledged mortgage loans held-for-sale with a carrying value of $12.2 million and $13.4 million, respectively, as collateral for its repurchase agreements and warehouse line of credit. See Note 12 - Financing.