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

    

Three Months Ended

Nine Months Ended

    

September 30, 

September 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Balance, beginning of period

$

4,038

$

8,491

$

1,302

$

29,393

Origination of mortgage loans held for sale

 

23,860

 

32,856

 

53,750

 

195,006

Proceeds from the sale of mortgage loans held for sale

 

(25,681)

 

(39,220)

 

(53,794)

 

(226,191)

Net gain on sale of mortgage loans held for sale

 

494

 

785

 

1,453

 

4,704

Balance, end of period

$

2,711

$

2,912

$

2,711

$

2,912

Components of Mortgage Banking Income

    

Three Months Ended

    

Nine Months Ended

September 30, 

September 30, 

(in thousands)

2023

    

2022

2023

    

2022

Net gain realized on sale of mortgage loans held for sale

$

608

$

1,041

$

1,213

$

6,448

Net change in fair value recognized on loans held for sale

 

(36)

 

(141)

 

3

 

(738)

Net change in fair value recognized on rate lock loan commitments

 

(94)

 

(395)

 

93

 

(1,579)

Net change in fair value recognized on forward contracts

 

16

 

280

 

144

 

573

Net gain recognized

 

494

 

785

 

1,453

 

4,704

Loan servicing income

 

824

 

894

 

2,546

 

2,643

Amortization of mortgage servicing rights

 

(466)

 

(525)

 

(1,440)

 

(1,773)

Change in mortgage servicing rights valuation allowance

 

 

 

 

Net servicing income recognized

 

358

 

369

 

1,106

 

870

Total Mortgage Banking income

$

852

$

1,154

$

2,559

$

5,574

Activity for capitalized mortgage servicing rights

    

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Balance, beginning of period

$

7,995

$

9,407

$

8,770

$

9,196

Additions

 

182

 

296

 

381

 

1,755

Amortized to expense

 

(466)

 

(525)

 

(1,440)

 

(1,773)

Change in valuation allowance

 

 

 

 

Balance, end of period

$

7,711

$

9,178

$

7,711

$

9,178

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

    

Three Months Ended

Nine Months Ended

September 30, 

September 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)

    

September 30, 2023

  

  

December 31, 2022

 

Fair value of mortgage servicing rights portfolio

$

17,300

$

17,145

Monthly weighted average prepayment rate of unpaid principal balance*

 

120

%

 

127

%

Discount rate

10.39

%

10.21

%

Weighted average foreclosure rate

0.11

%

0.10

%

Weighted average life in years

 

7.69

 

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

September 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

$

2,671

$

2,711

$

1,265

$

1,302

Included in other assets:

Rate lock loan commitments

$

9,487

$

95

$

4,118

$

2

Mandatory forward contracts

Included in other liabilities:

Mandatory forward contracts

$

9,325

$

77

$

4,009

$

67