Capitalized Mortgage Servicing Rights

6 Months Ended

Jun. 30, 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 6.5 years and 6.9 years at June 30, 2025 and December 31, 2024, respectively.

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


	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
	Originated		Acquired		Total		Originated		Acquired		Total
Beginning balance	$	353,005	$	4,215	$	357,220	$	363,861	$	4,817	$	368,678
Additions	10,931		—		10,931		20,337		—		20,337
Amortization	(17,264)		(503)		(17,767)		(34,459)		(1,066)		(35,525)
Write-downs and payoffs	(2,042)		(16)		(2,058)		(5,109)		(55)		(5,164)
Ending balance	$	344,630	$	3,696	$	348,326	$	344,630	$	3,696	$	348,326

	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
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

We collected prepayment fees totaling $0.9 million and $1.9 million during the three and six months ended June 30, 2025, respectively, and $0.4 million and $0.8 million during the three and six months ended June 30, 2024, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income. At June 30, 2025 and December 31, 2024, no MSRs were considered impaired.

The expected amortization of capitalized MSRs recorded at June 30, 2025 is as follows (in thousands):


Year	Amortization
2025 (six months ending 12/31/2025)	$	35,164
2026	66,172
2027	61,719
2028	54,745
2029	45,764
Thereafter	84,762
Total	$	348,326

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