MORTGAGE BANKING ACTIVITIES (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| MORTGAGE BANKING ACTIVITIES |
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| Activity in mortgage loans HFS carried at fair value |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | | June 30, | | June 30, | | (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | | | Balance, beginning of period | | $ | 12,953 | | $ | 9,140 | | $ | 7,516 | | $ | 8,312 | | Origination of mortgage loans held for sale | | | 67,334 | | | 51,788 | | | 115,324 | | | 93,021 | | Transferred from held for investment to held for sale | | | — | | | — | | | — | | | — | | Proceeds from the sale of mortgage loans held for sale | | | (65,182) | | | (53,561) | | | (109,224) | | | (95,377) | | Net gain on mortgage loans held for sale | | | 1,461 | | | 1,483 | | | 2,950 | | | 2,894 | | Balance, end of period | | $ | 16,566 | | $ | 8,850 | | $ | 16,566 | | $ | 8,850 | |
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| Components of mortgage banking income |
| | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | (in thousands) | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | | Net gain realized on sale of mortgage loans held for sale | $ | 1,516 | | $ | 1,354 | | $ | 2,555 | | $ | 2,637 | | Net change in fair value recognized on loans held for sale | | 278 | | | 26 | | | 220 | | | (19) | | Net change in fair value recognized on rate lock loan commitments | | 179 | | | 166 | | | 258 | | | 478 | | Net change in fair value recognized on forward contracts | | (512) | | | (63) | | | (83) | | | (202) | | Net gain recognized | | 1,461 | | | 1,483 | | | 2,950 | | | 2,894 | | | | | | | | | | | | | | | Loan servicing income | | 833 | | | 825 | | | 1,664 | | | 1,650 | | Amortization of mortgage servicing rights | | (495) | | | (412) | | | (990) | | | (827) | | Net servicing income recognized | | 338 | | | 413 | | | 674 | | | 823 | | Total mortgage banking income | $ | 1,799 | | $ | 1,896 | | $ | 3,624 | | $ | 3,717 | |
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| Activity for capitalized MSRs |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | Balance, beginning of period | | $ | 6,693 | | $ | 6,876 | | $ | 6,811 | | $ | 6,975 | Additions | | | 585 | | | 377 | | | 962 | | | 693 | Amortized to expense | | | (495) | | | (412) | | | (990) | | | (827) | Balance, end of period | | $ | 6,783 | | $ | 6,841 | | $ | 6,783 | | $ | 6,841 |
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| Fair value information for capitalized MSRs |
| | | | | | | | | | (dollars in thousands) | | June 30, 2026 | | | December 31, 2025 | | | | | | | | | | | | | Fair value of mortgage servicing rights portfolio | | $ | 18,607 | | | $ | 17,432 | | | Monthly weighted average prepayment rate of unpaid principal balance* | | | 125 | % | | | 131 | % | | Discount rate | | | 9.60 | % | | | 9.74 | % | | Weighted average foreclosure rate | | | 0.13 | % | | | 0.09 | % | | Weighted average life in years | | | 7.54 | | | | 7.35 | | |
* | Rates are applied to individual tranches with similar characteristics. |
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| Schedule of notional amounts and fair values of mortgage loans HFS at fair value and mortgage banking derivatives |
| | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | | Notional | | | | | Notional | | | | | (in thousands) | | Amount | | Fair Value | | Amount | | Fair Value | | | | | | | | | | | | | | | | Included in Mortgage loans held for sale: | | | | | | | | | | | | | | Mortgage loans held for sale, at fair value | | $ | 16,197 | | $ | 16,566 | | $ | 7,367 | | $ | 7,516 | | | | | | | | | | | | | | | | Included in other assets: | | | | | | | | | | | | | | Rate lock loan commitments | | $ | 23,857 | | $ | 537 | | $ | 12,617 | | $ | 279 | | Mandatory forward contracts | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | | | | | Mandatory forward contracts | | $ | 30,791 | | $ | 112 | | $ | 16,280 | | $ | 29 | |
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