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LOANS HELD FOR SALE

3 Months Ended

Mar. 31, 2025

3.LOANS HELD FOR SALE

The following table provides the fair value and contractual principal balance outstanding of loans held for sale accounted for under the fair value option:


	March 31,		December 31,
	2025		2024

	(in thousands)

Loans held for sale, fair value	$	19,304	$	36,768
Loans held for sale, contractual principal outstanding		18,837		36,205
Fair value less unpaid principal balance	$	467	$	563

The Company has elected the fair value option for mortgage loans held for sale to better match changes in fair value of the loans with changes in the fair value of the forward sale commitment contracts used to economically hedge them. Changes in fair value of mortgage loans held for sale accounted for under the fair value option election amounted to a decrease of $96,000 in the three months ended March 31, 2025 to $467,000, compared to a decrease of $222,000 in the three months ended March 31, 2024 to $309,000. These amounts are offset in earnings by the changes in fair value of forward sale commitments. The changes in fair value are reported as a component of gain on sale of mortgage loans in the unaudited Consolidated Statements of Income.

At March 31, 2025 and December 31, 2024, there were no loans held for sale that were greater than 90 days past due.