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Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2025

Transfers and Servicing of Financial Assets [Abstract]

Summary of Carrying Value Under the Fair Value Measurement Method

For the three and six months ended June 30, 2025 and 2024, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:

			Three Months Ended June 30,									Six Months Ended June 30,
(dollars in thousands)			2025			2024						2025			2024
Balance at Beginning of Period			$	628		$	674					$	647		$	678
Change in Fair Value Due to Payoffs			(9)			(6)						(28)			(10)
Balance at End of Period			$	619		$	668					$	619		$	668

Summary of Carrying Value Under the Amortization Method

For the three and six months ended June 30, 2025 and 2024, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:

			Three Months Ended June 30,									Six Months Ended June 30,
(dollars in thousands)			2025			2024						2025			2024
Balance at Beginning of Period			$	18,141		$	19,748					$	18,552		$	20,201
Servicing Rights that Resulted From Asset Transfers			92			63						179			158
Amortization			(490)			(525)						(988)			(1,073)
Balance at End of Period			$	17,743		$	19,286					$	17,743		$	19,286
Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method
Beginning of Period			$	24,569		$	25,649					$	24,989		$	26,173
End of Period			$	24,218		$	25,326					$	24,218		$	25,326

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 June 30, 2025 and December 31, 2024, were as follows:

			June 30, 2025			December 31, 2024
Weighted-Average Constant Prepayment Rate 1			4.12		%	4.00		%
Weighted-Average Life (in years)			9.09			9.28
Weighted-Average Note Rate			3.76		%	3.74		%
Weighted-Average Discount Rate 2			9.55		%	9.92		%

1Represents annualized loan prepayment rate assumption.

2Derived 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 June 30, 2025 and December 31, 2024, is presented in the following table.

(dollars in thousands)			June 30, 2025			December 31, 2024
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change			$	(300)		$	(306)
Decrease in fair value from 50 bps adverse change			(593)			(606)
Discount Rate
Decrease in fair value from 25 bps adverse change			(275)			(282)
Decrease in fair value from 50 bps adverse change			(544)			(558)

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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