Mortgage loans serviced for others are not reported on the Company's consolidated balance sheets. The following table presents mortgage loans serviced for others by investor:


(dollars in thousands)	June 30, 2026		December 31, 2025
Mortgage loan portfolio serviced for:
Federal National Mortgage Association	$	720,516	$	741,186
Federal Home Loan Mortgage Corporation	409,672		429,933
Federal Home Loan Bank	286		303
Total loans serviced for others	$	1,130,474	$	1,171,422

The following tables present changes in the carrying value and the fair market value of mortgage servicing rights for the periods presented:


	Three Months Ended				Six Months Ended
(dollars in thousands)	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Beginning balance	$	8,520	$	8,418	$	8,672	$	8,473
Additions	57		223		170		360
Amortization	(213)		(205)		(478)		(397)
Ending balance	$	8,364	$	8,436	$	8,364	$	8,436


Fair market value, beginning balance	$	11,642	$	12,079	$	11,301	$	12,387
Fair market value, ending balance	$	11,467	$	11,897	$	11,467	$	11,897

The Company measures its mortgage servicing rights ("MSRs") using the amortization method, amortizing MSRs proportionally over the period of expected net servicing income. New MSRs and amortization are reported within mortgage banking income, while ancillary income is recorded in other operating income. MSRs are recognized when loans are sold with servicing retained and pooled by similar characteristics.

MSRs are initially recorded at fair value at the time of loan sale based on a discounted cash flow model prepared by a third-party service provider using market-based assumptions. Thereafter, MSRs are carried at the lower of amortized cost or fair value and are evaluated for impairment at each reporting date. Key assumptions used in estimating fair value include mortgage prepayment speeds, discount rates, servicing income, and servicing costs. These assumptions are subjective and require management judgment and are updated periodically to reflect changes in market conditions, loan characteristics, and expected borrower behavior.

MSRs are classified as Level 3 assets within the fair value hierarchy because the valuation relies on significant unobservable inputs. The Company estimates fair value using discounted cash flow models that incorporate expected servicing cash flows, prepayment assumptions, and servicing costs. Changes in prepayment speeds, which are influenced by interest rates, home prices, and borrower behavior, can have a significant impact on MSR fair values. Generally, declining interest rates increase prepayment activity and reduce MSR value, while rising rates decrease prepayment activity and may increase MSR values.

Fair value estimates and underlying assumptions are reviewed periodically and, where available, compared with observable market data and third-party valuations.


	June 30, 2026		December 31, 2025


Weighted average discount rate	9.5	%	9.5	%
Weighted average prepayment speed assumption	11.2		12.3

The Company evaluates MSRs for impairment at each reporting date. Impairment exists when the carrying amount of the MSRs exceeds their estimated fair value. Any impairment is recognized through a valuation allowance, with subsequent recoveries recognized to the extent of previously recorded impairment. The Company noted no impairment related to its MSRs as of June 30, 2026.