Capitalized Mortgage Servicing Rights

3 Months Ended

Mar. 31, 2025

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 6.7 years and 6.9 years at March 31, 2025 and December 31, 2024, respectively.

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


	Three Months Ended March 31, 2025
	Originated		Acquired		Total
Beginning balance	$	363,861	$	4,817	$	368,678
Additions	9,406		—		9,406
Amortization	(17,195)		(563)		(17,758)
Write-downs and payoffs	(3,067)		(39)		(3,106)
Ending balance	$	353,005	$	4,215	$	357,220

	Three Months Ended March 31, 2024
Beginning balance	$	382,582	$	8,672	$	391,254
Additions	12,684		—		12,684
Amortization	(15,821)		(810)		(16,631)
Write-downs and payoffs	(1,698)		(89)		(1,787)
Ending balance	$	377,747	$	7,773	$	385,520

We collected prepayment fees totaling $1.0 million and $0.4 million during the three months ended March 31, 2025 and 2024, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income. At March 31, 2025 and December 31, 2024, no MSRs were considered impaired.

The expected amortization of capitalized MSRs recorded at March 31, 2025 is as follows (in thousands):


Year	Amortization
2025 (nine months ending 12/31/2025)	$	52,124
2026	64,715
2027	60,264
2028	53,258
2029	44,145
Thereafter	82,714
Total	$	357,220

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