v3.26.3
Mortgage Servicing Rights (Tables)
9 Months Ended
Sep. 30, 2026
Mortgage Servicing Rights  
Schedule of change in fair value of the Company's MSR asset

The following tables present the changes in fair value of the Company’s MSR asset and other information related to the serviced portfolio (dollars in thousands).

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Three Months Ended September 30,

 

Nine Months Ended September 30,

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2026

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2025

 

2026

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2025

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Balance, beginning of period

$

22,755

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$

7,887

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$

17,491

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$

5,723

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Additions

 

2,518

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5,087

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8,293

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8,201

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Sales

 

(65)

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—

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(113)

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—

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Changes in fair value:

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Due to changes in model inputs or assumptions (1)

 

3,628

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(604)

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3,972

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(1,368)

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Due to customer payoffs

 

(741)

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(97)

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(1,548)

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(283)

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Balance, end of period

$

28,095

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$

12,273

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$

28,095

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$

12,273

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September 30,

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December 31,

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2026

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2025

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Mortgage loans serviced for others (2)

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$

1,467,936

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$

1,145,063

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MSR asset as a percentage of serviced mortgage loans

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1.91

%  

 

1.53

%  

(1)Primarily represents normal customer payments, the impact of changes in interest rates, changes in discount rates and prepayment speed assumptions, and the refinement of other MSR model assumptions.
(2)Represents unpaid principal balance of mortgage loans serviced for others.
Schedule of key assumptions used in measuring the fair value of the Company's MSR

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September 30,

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December 31,

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2026

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2025

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Weighted average constant prepayment rate

 

10.48

%  

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14.68

%

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Weighted average discount rate

 

11.56

%  

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11.45

%

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Weighted average life (in years)

 

7.6

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5.8

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Schedule of sensitivity analysis of fair value of the Company's MSR to certain key assumptions

A sensitivity analysis of the fair value of the Company’s MSR asset to certain key assumptions is presented in the following table (in thousands).

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September 30,

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December 31,

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2026

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2025

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Constant prepayment rate:

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Impact of 10% adverse change

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$

(1,123)

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$

(899)

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Impact of 20% adverse change

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(2,162)

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(1,714)

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Discount rate:

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Impact of 10% adverse change

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(1,256)

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(651)

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Impact of 20% adverse change

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(2,402)

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(1,253)

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