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MORTGAGE BANKING ACTIVITIES (Tables)
6 Months Ended
Jun. 30, 2024
Mortgage Banking  
Activity for Mortgage Loans Held for Sale, at fair value

    

Three Months Ended

Six Months Ended

    

June 30, 

June 30, 

(in thousands)

2024

    

2023

    

2024

    

2023

Balance, beginning of period

$

80,884

$

1,034

$

3,227

$

1,302

Origination of mortgage loans held for sale

 

53,703

 

13,948

 

80,749

 

29,890

Transferred from held for investment to held for sale

(2,288)

67,176

Proceeds from the sale of mortgage loans held for sale

 

(123,693)

 

(11,483)

 

(142,466)

 

(28,113)

Net gain (loss) on mortgage loans held for sale

 

1,097

 

539

 

1,017

 

959

Balance, end of period

$

9,703

$

4,038

$

9,703

$

4,038

Components of Mortgage Banking Income

    

Three Months Ended

    

Six Months Ended

June 30, 

June 30, 

(in thousands)

2024

    

2023

2024

    

2023

Net gain realized on sale of mortgage loans held for sale

$

1,120

$

357

$

1,685

$

605

Fair value adjustment for correspondent loans reclassified to held for sale

(997)

Net change in fair value recognized on loans held for sale

 

(38)

 

47

 

107

 

39

Net change in fair value recognized on rate lock loan commitments

 

(21)

 

93

 

202

 

187

Net change in fair value recognized on forward contracts

 

36

 

42

 

20

 

128

Net gain (loss) recognized

 

1,097

 

539

 

1,017

 

959

Loan servicing income

 

938

 

852

 

1,754

 

1,722

Amortization of mortgage servicing rights

 

(423)

 

(484)

 

(849)

 

(974)

Change in mortgage servicing rights valuation allowance

 

 

 

 

Net servicing income recognized

 

515

 

368

 

905

 

748

Total mortgage banking income

$

1,612

$

907

$

1,922

$

1,707

Activity for capitalized mortgage servicing rights

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2024

    

2023

    

2024

    

2023

Balance, beginning of period

$

7,103

$

8,406

$

7,411

$

8,769

Additions

 

350

 

73

 

468

 

200

Amortized to expense

 

(423)

 

(484)

 

(849)

 

(974)

Change in valuation allowance

 

 

 

 

Balance, end of period

$

7,030

$

7,995

$

7,030

$

7,995

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

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2024

    

2023

    

2024

    

2023

Beginning valuation allowance

$

$

$

$

Charge during the period

 

 

 

 

Ending valuation allowance

$

$

$

$

Other information relating to mortgage servicing rights

(dollars in thousands)

    

June 30, 2024

  

  

December 31, 2023

 

Fair value of mortgage servicing rights portfolio

$

17,001

$

16,054

Monthly weighted average prepayment rate of unpaid principal balance*

 

123

%

 

128

%

Discount rate

10.21

%

10.26

%

Weighted average foreclosure rate

0.12

%

0.16

%

Weighted average life in years

 

7.60

 

7.52

*

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, 2024

    

December 31, 2023

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

$

9,538

$

9,703

$

3,168

$

3,227

Included in other assets:

Rate lock loan commitments

$

19,903

$

445

$

9,275

$

243

Mandatory forward contracts

$

24,273

$

42

$

$

Included in other liabilities:

Mandatory forward contracts

$

$

$

9,092

$

61