Capitalized Mortgage Servicing Rights

3 Months Ended

Mar. 31, 2026

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 5.9 years and 6.1 years at March 31, 2026 and December 31, 2025, respectively.

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


	Three Months Ended March 31, 2026
	Originated		Acquired		Total
Beginning balance	$	338,174	$	2,668	$	340,842
Additions	10,427		—		10,427
Amortization	(17,953)		(340)		(18,293)
Write-downs and payoffs	(1,027)		(20)		(1,047)
Ending balance	$	329,621	$	2,308	$	331,929

	Three Months Ended March 31, 2025
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

We collected prepayment fees totaling $0.9 million and $1.0 million during the three months ended March 31, 2026 and 2025, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income. At March 31, 2026 and December 31, 2025, no MSRs were considered impaired.

The expected amortization of capitalized MSRs recorded at March 31, 2026 is as follows ($ in thousands):


Year	Amortization
2026 (nine months ending 12/31/2026)	$	53,739
2027	68,128
2028	61,367
2029	52,504
2030	38,542
Thereafter	57,649
Total	$	331,929

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