| Loan Servicing |
Loan Servicing Loans serviced for others are not included in the accompanying condensed consolidated balance sheets. The unpaid principal balances of loans serviced for others totaled approximately $1.39 billion and $1.41 billion at June 30, 2026 and December 31, 2025.
Activity for mortgage servicing rights and the related impairment allowance were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30,
2026 | | June 30,
2025 | | June 30,
2026 | | June 30,
2025 | | | | | | Mortgage servicing rights | | | | | | | | | | | | | Balances, beginning of period | $ | 17,271 | | | $ | 17,933 | | | $ | 17,534 | | | $ | 18,195 | | | | | | | Servicing rights capitalized | 469 | | | 337 | | | 785 | | | 582 | | | | | | | Amortization of servicing rights | (525) | | | (518) | | | (1,104) | | | (1,025) | | | | | | | Ending balance | 17,215 | | | 17,752 | | | 17,215 | | | 17,752 | | | | | | | Impairment allowance | | | | | | | | | | | | | Beginning balance | — | | | — | | | — | | | — | | | | | | | Additions | — | | | — | | | — | | | — | | | | | | | Reductions | — | | | — | | | — | | | — | | | | | | | Ending balance | — | | | — | | | — | | | — | | | | | | | Mortgage servicing rights, net | $ | 17,215 | | | $ | 17,752 | | | $ | 17,215 | | | $ | 17,752 | | | | | | | | | | | | | | | | | | | Fair value, beginning of period | $ | 18,025 | | | 18,811 | | | $ | 17,547 | | | $ | 19,766 | | | | | | | Fair value, end of period | 18,206 | | | 18,251 | | | 18,206 | | | 18,251 | | | | | |
Fair value at June 30, 2026 was determined using a discounted cash flow analysis with the discount rates ranging from 8.5% to 11.0% and prepayment speeds ranging from 6.0% to 13.2%, depending on the stratification of the specific type. Fair value at June 30, 2025 was determined using a discounted cash flow analysis with discount rates ranging from 9.0% to 11.5% and prepayment speeds ranging from 5.8% to 12.5%, depending on the stratification of the specific type.
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