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Loan Servicing Rights
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
Loan Servicing Rights LOAN SERVICING RIGHTS
Loan servicing rights are included in other assets on the balance sheet. Loans serviced for others are not reported as assets. The principal balance of mortgage loans serviced for others totaled $6.9 billion at December 31, 2025 and $4.6 billion at December 31, 2024. Custodial escrow balances maintained in connection with serviced loans totaled $50.9 million at December 31, 2025 and $29.8 million at December 31, 2024.
The following table summarizes the carrying values and activity related to loan servicing rights and the related valuation allowance:
Years Ended December 31,
(dollars in thousands)202520242023
Balance at beginning of period$40,972 $35,789 $37,267 
Additions (1)
35,494 10,829 3,657 
Amortization(7,908)(5,646)(5,135)
Balance before valuation allowance at end of period68,558 40,972 35,789 
Valuation allowance:
Balance at beginning of period(36)— — 
(Additions)/recoveries(108)(36)— 
Balance at end of period(144)(36)— 
Loan servicing rights, net$68,414 $40,936 $35,789 
(1)Additions in 2025 included loan servicing rights of $22.7 million acquired in the Bremer transaction on May 1, 2025. Additions in 2024 included loan servicing rights of $2.7 million acquired in the CapStar transaction on April 1, 2024.
At December 31, 2025, the fair value of servicing rights was $82.6 million, which was determined using a discount rate of 9% and a conditional prepayment rate of 9%. At December 31, 2024, the fair value of servicing rights was $55.7 million, which was determined using a discount rate of 10% and a conditional prepayment rate of 8%.