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MORTGAGE BANKING ACTIVITIES (Tables)
6 Months Ended
Jun. 30, 2023
MORTGAGE BANKING ACTIVITIES  
Activity for Mortgage Loans Held for Sale, at fair value

    

Three Months Ended

Six Months Ended

    

June 30, 

June 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Balance, beginning of period

$

1,034

$

13,302

$

1,302

$

29,393

Origination of mortgage loans held for sale

 

13,948

 

61,489

 

29,890

 

162,150

Proceeds from the sale of mortgage loans held for sale

 

(11,483)

 

(67,759)

 

(28,113)

 

(186,971)

Net gain on sale of mortgage loans held for sale

 

539

 

1,459

 

959

 

3,919

Balance, end of period

$

4,038

$

8,491

$

4,038

$

8,491

Components of Mortgage Banking Income

    

Three Months Ended

    

Six Months Ended

June 30, 

June 30, 

(in thousands)

2023

    

2022

2023

    

2022

Net gain realized on sale of mortgage loans held for sale

$

357

$

2,674

$

605

$

5,407

Net change in fair value recognized on loans held for sale

 

47

 

109

 

39

 

(597)

Net change in fair value recognized on rate lock loan commitments

 

93

 

(222)

 

187

 

(1,184)

Net change in fair value recognized on forward contracts

 

42

 

(1,102)

 

128

 

293

Net gain recognized

 

539

 

1,459

 

959

 

3,919

Loan servicing income

 

852

 

884

 

1,722

 

1,749

Amortization of mortgage servicing rights

 

(484)

 

(580)

 

(974)

 

(1,248)

Change in mortgage servicing rights valuation allowance

 

 

 

 

Net servicing income recognized

 

368

 

304

 

748

 

501

Total Mortgage Banking income

$

907

$

1,763

$

1,707

$

4,420

Activity for capitalized mortgage servicing rights

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Balance, beginning of period

$

8,406

$

9,502

$

8,769

$

9,196

Additions

 

73

 

485

 

200

 

1,459

Amortized to expense

 

(484)

 

(580)

 

(974)

 

(1,248)

Change in valuation allowance

 

 

 

 

Balance, end of period

$

7,995

$

9,407

$

7,995

$

9,407

Schedule of activity in the valuation allowance for capitalized mortgage servicing rights

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Beginning valuation allowance

$

$

$

$

Charge during the period

 

 

 

 

Ending valuation allowance

$

$

$

$

Other information relating to mortgage servicing rights

(dollars in thousands)

    

June 30, 2023

  

  

December 31, 2022

 

Fair value of mortgage servicing rights portfolio

$

16,955

$

17,145

Monthly weighted average prepayment rate of unpaid principal balance*

 

121

%

 

127

%

Discount rate

10.29

%

10.21

%

Weighted average foreclosure rate

0.07

%

0.10

%

Weighted average life in years

 

7.68

 

7.54

*

Rates are applied to individual tranches with similar characteristics.

Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives

June 30, 2023

    

December 31, 2022

Notional

Notional

(in thousands)

Amount

    

Fair Value

Amount

    

Fair Value

Included in Mortgage loans held for sale:

Mortgage loans held for sale, at fair value

$

3,961

$

4,038

$

1,265

$

1,302

Included in other assets:

Rate lock loan commitments

$

12,896

$

189

$

4,118

$

2

Mandatory forward contracts

Included in other liabilities:

Mandatory forward contracts

10,057

61

4,009

67