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Capitalized Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2024

Our capitalized 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 6.9 years and 8.0 years at December 31, 2024 and 2023, respectively.

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


	Year Ended December 31, 2024						Year Ended December 31, 2023
	Originated		Acquired		Total		Originated		Acquired		Total
Beginning balance	$	382,582	$	8,672	$	391,254	$	386,878	$	14,593	$	401,471
Additions	54,346		—		54,346		67,612		—		67,612
Amortization	(65,570)		(2,852)		(68,422)		(59,182)		(3,911)		(63,093)
Write-downs and payoffs	(7,497)		(1,003)		(8,500)		(12,726)		(2,010)		(14,736)
Ending balance	$	363,861	$	4,817	$	368,678	$	382,582	$	8,672	$	391,254

We collected prepayment fees totaling $3.0 million and $6.4 million during 2024 and 2023, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income. At December 31, 2024 and 2023, no MSRs were considered impaired.

The expected amortization of capitalized MSRs recorded at December 31, 2024 is as follows (in thousands):


Year	Amortization
2025	$	69,382
2026	64,023
2027	59,510
2028	52,288
2029	43,178
Thereafter	80,297
Total	$	368,678

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