v3.26.1
Mortgage Banking Activities
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
Mortgage Banking Activities Mortgage Banking Activities
The Company originates mortgage loans and sells those loans to the FHLMC, FNMA, GNMA, and private investors. Typically, these loans are sold with servicing retained by the Bank. Loans sold with servicing retained for the six months ended June 30, 2026 and 2025 aggregated $267.3 million and $173.7 million, respectively. Loans serviced for investors aggregated $4.6 billion and $4.6 billion at June 30, 2026 and June 30, 2025, respectively.
Included in mortgage banking revenues in the accompanying consolidated statements of income for June 30, 2026 and 2025 are the following:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(dollars in thousands)
Gains on sale of mortgage loans$6,826 $7,730 $- $13,109 $13,260 
Fees on real estate loans sold
607 517 - 1,149906
Gains on interest rate lock commitments (IRLC) and associated hedging365 10 - 234 (85)
Servicing fees2,817 2,882 - 5,6595,785
Mortgage banking revenues, net$10,615 $11,139 $- $20,151 $19,866 
The following assumptions were used in determining the fair value of the capitalized mortgage servicing rights:
Six Months Ended June 30,
20262025
Discount rate9.16%9.16%
Prepayment speed6.70%6.40%
Delinquency rate1.00%0.91%
A summary of the mortgage servicing rights is as follows:
Six Months Ended June 30,
20262025
(dollars in thousands)
Balance at beginning of period$29,391 $30,423 
Capitalized mortgage servicing rights3,708 2,051 
Amortization(3,125)(2,918)
Change in valuation allowance- - 
Balance at end of period$29,974 $29,556 
Amortization is recorded as other noninterest expense. The valuation allowance at each of June 30, 2026 and December 31, 2025 was $0.