v3.26.1
Mortgage Servicing Rights (“MSRs”)
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights (“MSRs”) Mortgage Servicing Rights (“MSRs”)
The right to service loans for others is recognized as an MSR on the balance sheet. MSRs are recognized either when purchased or when originated loans are sold with servicing retained. The unpaid principal balances of loans serviced for others were approximately $2.0 billion and $1.8 billion at June 30, 2026 and December 31, 2025, respectively. In addition, approximately $3.5 billion and $3.1 billion at June 30, 2026 and December 31, 2025, respectively, of loans were sub-serviced on behalf of other unaffiliated investors.
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 June 30, Six Months Ended June 30,
2026202520262025
Contractual servicing fees$2,374 $1,817 $4,585 $3,499 
Late fees14 10 29 27 
Other fees— — — 3 
Change in fair value of MSRs and paid in full$(120)$(302)$1,202 $(1,009)
Total$2,268 $1,525 $5,816 $2,520 

At June 30, 2026 the fair value of MSRs was determined using discount rates between 9.5% and 11.5%, average cost of servicing between $70 and $85 per file per year, and a prepayment speed of 10.0%. At December 31, 2025 the fair value of MSRs was determined using discount rates between 9.0% and 11.5%, average cost of servicing between $70 and $85 per file per year, and a prepayment speed of 12.1%.
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 June 30,Six Months Ended June 30,
2026202520262025
Balance – Beginning of period
$20,608 $15,492 $17,048 $15,133 
Additions
2,750 902 4,988 1,968 
Paid in full loans
(416)(172)(904)(300)
Change in fair value
296 (130)2,106 (709)
Proceeds from sale
(227)— (227)— 
Bulk purchases
— 296 — 296 
Gain on sale
77 — 77 — 
Balance – End of period
$23,088 $16,388 $23,088 $16,388 
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):
June 30, 2026December 31, 2025
Actual10%
Adverse
Change		20%
Adverse
Change		Actual10%
Adverse
Change		20%
Adverse
Change
Discount rate change9.5 %$22,083 $21,229 9.5 %$16,416 $15,829 
Constant prepayment rate10.0 %22,081 21,311 12.1 %16,321 15,662 
Cost to service (per loan)$74 22,738 22,470 $74 16,813 16,579