Annual report pursuant to Section 13 and 15(d)

MORTGAGE BANKING ACTIVITIES (Tables)

v3.24.0.1
MORTGAGE BANKING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2023
Mortgage Banking Activities [Abstract]  
Summary of Unpaid Principal Balance of Residential Mortgage Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2023
December 31, 2022
Unpaid Principal
Unpaid Principal
(Dollars in Thousands)
Balance/Notional
Fair Value
Balance/Notional
Fair Value
Residential Mortgage Loans Held for Sale
$
27,944
$
28,211
$
26,274
$
26,909
Residential Mortgage Loan Commitments
(1)
23,545
523
36,535
819
Forward Sales Contracts
(2)
24,500
209
15,500
187
$
28,943
$
27,915
(1)
Recorded in other assets at fair value
(2)
Recorded in other assets and (other liabilities)
 
at fair value
Mortgage Banking Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2023
2022
2021
Net realized gain on sales of mortgage loans
$
5,297
$
5,565
$
49,355
Net change in unrealized gain on mortgage loans held for sale
(252)
(1,164)
(2,410)
Net change in the fair value of mortgage loan commitments
(296)
(439)
(3,567)
Net change in the fair value of forward sales contracts
(395)
192
900
Pair-Offs on net settlement of forward
 
sales contracts
367
4,956
2,956
Mortgage servicing rights additions
651
565
1,416
Net origination fees
5,028
2,234
3,775
Total mortgage banking
 
revenues
$
10,400
$
11,909
$
52,425
Summary of Mortgage Servicing Rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2023
2022
Number of residential mortgage loans serviced for others
450
1,769
Outstanding principal balance of residential mortgage loans serviced
 
for others
$
108,897
$
410,470
Weighted average
 
interest rate
5.37%
3.62%
Remaining contractual term (in months)
309
298
Activity in the Capitalized Mortgage Servicing Rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2023
2022
2021
Beginning balance
$
2,599
$
3,774
$
3,452
Additions due to loans sold with servicing retained
651
565
1,416
Deletions and amortization
(232)
(1,291)
(1,344)
Valuation
 
Allowance reversal
-
-
250
Sale of Servicing Rights
(1)
(2,187)
(449)
-
Ending balance
$
831
$
2,599
$
3,774
(1)
In 2023, the Company sold an MSR portfolio with an unpaid principal balance of
 
$
334
 
million for a sales price of $
4.0
 
million,
 
recognizing a $
1.38
 
million gain on sale, recorded
 
in other noninterest income on the Consolidated Statement
 
of Income.
In 2022, the Company sold an MSR portfolio with an unpaid principal balance
 
of $
50
 
million for a sales price of $
0.6
 
million,
 
recognizing a $
0.2
 
million gain on sale, recorded
 
in other noninterest income on the Consolidated Statement
 
of Income.
Key Unobservable Inputs used in Determining the Fair Value of Mortgage Servicing Rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2023
2022
Minimum
Maximum
Minimum
Maximum
Discount rates
9.50%
12.00%
9.50%
12.00%
Annual prepayment speeds
11.23%
17.79%
12.33%
20.23%
Cost of servicing (per loan)
$
85
95
$
85
95
Warehouse Line Borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts
(Dollars in Thousands)
Outstanding
$
25
 
million master repurchase agreement without defined expiration.
 
Interest is at the SOFR rate plus
2.00%
 
to
plus
3.00%
, with a floor rate of
3.25%
 
to
4.25%
.
 
A cash pledge deposit of $
0.1
 
million is required by the
lender.
$
192
$
60
 
million warehouse line of credit agreement expiring in
December 2024
.
 
Interest is at the SOFR plus
2.75%
to
3.25%
.
8,192
$
8,384