v3.25.3
Loan Servicing
 9 Months Ended
Sep. 30, 2025
Transfers and Servicing [Abstract]  
Loan Servicing Loan Servicing
Activity for loan servicing rights is as follows for the periods presented:
Loan servicing rights:
(in thousands)September 30, 2025December 31, 2024
Balance at beginning of period$5,511 $— 
Additions968 5,096 
Other changes in fair value(4,409)415 
Balance at end of period$2,070 $5,511 
The loan servicing rights balance consisted of a principal balance of $786 million and $807 million as of September 30, 2025 and December 31, 2024, respectively. The fair value at September 30, 2025 was determined using a discount rate of 13.3%, a weighted average prepayment speed of 16.5% and a weighted average default rate of 0.7%. The fair value at December 31, 2024 was determined using a discount rate of 13.5%, a weighted average prepayment speed of 15.6% and a weighted average default rate of 0.7%. The $4.4 million changes in fair value for loan servicing rights from December 31, 2024 to September 30, 2025 consisted of a negative $2.9 million impact from the fair value adjustment related to the loan servicing portfolio recorded as a measurement period adjustment to the Day-1 purchase accounting and a negative $1.5 million impact from other changes in fair value of the servicing assets post acquisition. The $1.0 million of additions includes $0.8 million to establish the unguaranteed servicing asset as a measurement period adjustment to the Day-1 purchase accounting.