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Mortgage Loan Servicing, Origination, and Loans Held for Sale (Tables)

9 Months Ended

Sep. 30, 2023

Mortgage Loan Servicing, Origination, and Loans Held for Sale

Summary of changes in the fair value of MSRs and its offsetting hedge


		Three Months Ended						Nine Months Ended
(Dollars in thousands)		September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
Increase in fair value of MSRs		$	1,762		$	2,661		$	2,450		$	18,274
Decay of MSRs			(2,543)			(2,530)			(6,336)			(8,052)
Loss related to derivatives			(2,170)			(3,572)			(4,288)			(17,963)
Net effect on Consolidated Statements of Net Income		$	(2,951)		$	(3,441)		$	(8,174)		$	(7,741)

Schedule of characteristics and sensitivity analysis of the MSR

The characteristics and sensitivity analysis of the MSRs are included in the following table:


		September 30,				December 31,
(Dollars in thousands)		2023				2022
Composition of residential loans serviced for others
Fixed-rate mortgage loans			100.0	%			100.0	%
Adjustable-rate mortgage loans			—	%			—	%
Total			100.0	%			100.0	%
Weighted average life			8.26	years			8.37	years
Constant Prepayment rate (CPR)			6.6	%			6.4	%
Weighted average discount rate			10.6	%			10.0	%
Effect on fair value due to change in interest rates
25 basis point increase		$	686			$	774
50 basis point increase			1,231				1,428
25 basis point decrease			(848)				(902)
50 basis point decrease			(1,877)				(1,938)