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MORTGAGE BANKING ACTIVITIES (Tables)
9 Months Ended
Sep. 30, 2024
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)

2024

    

2023

    

2024

    

2023

Balance, beginning of period

$

9,703

$

4,038

$

3,227

$

1,302

Origination of mortgage loans held for sale

 

57,142

 

23,860

 

137,891

 

53,750

Transferred from held for investment to held for sale

67,176

Proceeds from the sale of mortgage loans held for sale

 

(59,732)

 

(25,681)

 

(202,198)

 

(53,794)

Net gain (loss) on mortgage loans held for sale

 

1,413

 

494

 

2,430

 

1,453

Balance, end of period

$

8,526

$

2,711

$

8,526

$

2,711

Components of Mortgage Banking Income

    

Three Months Ended

    

Nine Months Ended

September 30, 

September 30, 

(in thousands)

2024

    

2023

2024

    

2023

Net gain realized on sale of mortgage loans held for sale

$

1,325

$

608

$

3,010

$

1,213

Fair value adjustment for correspondent loans reclassified to held for sale

(997)

Net change in fair value recognized on loans held for sale

 

70

 

(36)

 

177

 

3

Net change in fair value recognized on rate lock loan commitments

 

90

 

(94)

 

292

 

93

Net change in fair value recognized on forward contracts

 

(72)

 

16

 

(52)

 

144

Net gain (loss) recognized

 

1,413

 

494

 

2,430

 

1,453

Loan servicing income

 

1,071

 

824

 

2,825

 

2,546

Amortization of mortgage servicing rights

 

(422)

 

(466)

 

(1,271)

 

(1,440)

Change in mortgage servicing rights valuation allowance

 

 

 

 

Net servicing income recognized

 

649

 

358

 

1,554

 

1,106

Total mortgage banking income

$

2,062

$

852

$

3,984

$

2,559

Activity for capitalized mortgage servicing rights

    

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

(in thousands)

2024

    

2023

    

2024

    

2023

Balance, beginning of period

$

7,030

$

7,995

$

7,411

$

8,770

Additions

 

445

 

182

 

913

 

381

Amortized to expense

 

(422)

 

(466)

 

(1,271)

 

(1,440)

Change in valuation allowance

 

 

 

 

Balance, end of period

$

7,053

$

7,711

$

7,053

$

7,711

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

    

Three Months Ended

Nine Months Ended

September 30, 

September 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)

    

September 30, 2024

  

  

December 31, 2023

 

Fair value of mortgage servicing rights portfolio

$

15,753

$

16,054

Monthly weighted average prepayment rate of unpaid principal balance*

 

142

%

 

128

%

Discount rate

10.05

%

10.26

%

Weighted average foreclosure rate

0.10

%

0.16

%

Weighted average life in years

 

7.23

 

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

September 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

$

8,290

$

8,526

$

3,168

$

3,227

Included in other assets:

Rate lock loan commitments

$

23,386

$

535

$

9,275

$

243

Mandatory forward contracts

Included in other liabilities:

Mandatory forward contracts

$

25,939

$

113

$

9,092

$

61