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Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2024

Transfers and Servicing of Financial Assets [Abstract]

Summary of Carrying Value Under the Fair Value Measurement Method

For the years ended December 31, 2024, 2023 and 2022, the change in the fair value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:

(dollars in thousands)		2024				2023				2022
Balance at Beginning of Year		$	678			$	717			$	800
Changes in Fair Value Due to Payoffs			(31	)			(39	)			(83	)
Balance at End of Year		$	647			$	678			$	717

Summary of Carrying Value Under the Amortization Method

For the years ended December 31, 2024, 2023 and 2022, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:

(dollars in thousands)		2024				2023				2022
Balance at Beginning of Year		$	20,201			$	21,902			$	21,451
Servicing Rights that Resulted From Asset Transfers			466				528				1,217
Amortization			(2,115	)			(2,229	)			(2,595	)
Valuation Allowance Recovery			—				—				1,829
Balance at End of Year		$	18,552			$	20,201			$	21,902
Valuation Allowance:
Balance at Beginning of Year		$	—			$	—			$	(1,829	)
Valuation Allowance Recovery			—				—				1,829
Balance at End of Year		$	—			$	—			$	—
Fair Value:
Balance at Beginning of Year		$	26,173			$	27,323			$	21,451
Balance at End of Year		$	24,989			$	26,173			$	27,323

Schedule of Key Data and Assumptions Used in Estimating the Fair Value

The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of December 31, 2024 and 2023 were as follows:

		December 31,
		2024				2023
Weighted-Average Constant Prepayment Rate 1			4.00	%			4.06	%
Weighted-Average Life (in years)			9.28				9.44
Weighted-Average Note Rate			3.74	%			3.67	%
Weighted-Average Discount Rate 2			9.92	%			9.48	%

1.Represents annualized loan prepayment rate assumption.

2.Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.

Schedule of Sensitivity Analysis of the Fair Value

A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of December 31, 2024 and 2023 is presented in the following table.

		December 31,
(dollars in thousands)		2024				2023
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change		$	(306	)		$	(326	)
Decrease in fair value from 50 bps adverse change			(606	)			(645	)
Discount Rate
Decrease in fair value from 25 bps adverse change			(282	)			(303	)
Decrease in fair value from 50 bps adverse change			(558	)			(600	)

X

- Definition

Tabular disclosure of all information related to the key inputs and assumptions (including, at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses) used in measuring the fair value of assets or liabilities that relate to the transferor's continuing involvement with transferred financial assets, as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-4

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X

- Definition

Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-4

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X

- Definition

Tabular disclosure of activity in the balance of servicing assets subsequently measured at amortized cost. Includes, but is not limited to, beginning and ending balances, additions, disposals, and amortization.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481229/860-50-50-4

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X

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481229/860-50-50-3

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- References

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