Capitalized Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2024

Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived primarily from loans sold in our Agency Business or acquired MSRs. The discount rates used to determine the present value of all our MSRs throughout the periods presented were between 8% - 14% (representing a weighted average discount rate of 12%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 7.5 years and 8.0 years at June 30, 2024 and December 31, 2023, respectively.

A summary of our capitalized MSR activity is as follows (in thousands):


	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
	Originated		Acquired		Total		Originated		Acquired		Total
Beginning balance	$	377,747	$	7,773	$	385,520	$	382,582	$	8,672	$	391,254
Additions	14,717		—		14,717		27,401		—		27,401
Amortization	(16,151)		(736)		(16,887)		(31,972)		(1,546)		(33,518)
Write-downs and payoffs	(2,154)		(477)		(2,631)		(3,852)		(566)		(4,418)
Ending balance	$	374,159	$	6,560	$	380,719	$	374,159	$	6,560	$	380,719

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
Beginning balance	$	383,636	$	12,998	$	396,634	$	386,878	$	14,593	$	401,471
Additions	18,980		—		18,980		32,866		—		32,866
Amortization	(14,592)		(1,013)		(15,605)		(28,878)		(2,142)		(31,020)
Write-downs and payoffs	(4,757)		(842)		(5,599)		(7,599)		(1,308)		(8,907)
Ending balance	$	383,267	$	11,143	$	394,410	$	383,267	$	11,143	$	394,410

We collected prepayment fees totaling $0.4 million and $0.8 million during the three and six months ended June 30, 2024, respectively, and $3.0 million and $5.0 million during the three and six months ended June 30, 2023, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income. At June 30, 2024 and December 31, 2023, we had no valuation allowance recorded on any of our MSRs.

The expected amortization of capitalized MSRs recorded at June 30, 2024 is as follows (in thousands):


Year	Amortization
2024 (six months ending 12/31/2024)	$	34,199
2025	65,880
2026	60,425
2027	55,923
2028	48,630
Thereafter	115,662
Total	$	380,719

Based on scheduled maturities, actual amortization may vary from these estimates.