Annual report [Section 13 and 15(d), not S-K Item 405]

MORTGAGE BANKING ACTIVITIES (Tables)

v3.25.4
MORTGAGE BANKING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2025
Mortgage Banking Activities [Abstract]  
Summary of Unpaid Principal Balance of Residential Mortgage Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2025
December 31, 2024
Unpaid Principal
Unpaid Principal
(Dollars in Thousands)
Balance/Notional
Fair Value
Balance/Notional
Fair Value
Residential Mortgage Loans Held for Sale
$
20,944
$
21,695
$
28,117
$
28,672
Residential Mortgage Loan Commitments
(1)
20,699
464
15,000
248
Forward Sales Contracts
(2)
25,500
(84)
16,000
96
$
22,075
$
29,016
(1)
Recorded in other assets at fair value
(2)
Recorded in other liabilities and other assets at fair value
 
at December 31, 2025 and 2024, respectively
Mortgage Banking Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2025
2024
2023
Net realized gain on sales of mortgage loans
$
13,605
$
11,492
$
5,297
Net change in unrealized gain on mortgage loans held for sale
326
(384)
(252)
Net change in the fair value of mortgage loan commitments
216
(275)
(296)
Net change in the fair value of forward sales contracts
(180)
305
(395)
Pair-Offs on net settlement of forward
 
sales contracts
(473)
331
367
Mortgage servicing rights additions
167
303
651
Net origination fees
3,298
2,571
5,028
Total mortgage banking
 
revenues
$
16,959
$
14,343
$
10,400
Summary of Mortgage Servicing Rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2025
2024
Number of residential mortgage loans serviced for others
456
504
Outstanding principal balance of residential mortgage loans serviced
 
for others
$
118,429
$
135,416
Weighted average
 
interest rate
5.69%
5.86%
Remaining contractual term (in months)
354
348
Activity in the Capitalized Mortgage Servicing Rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
2025
2024
2023
Beginning balance
$
933
$
831
$
2,599
Additions due to loans sold with servicing retained
167
303
651
Deletions and amortization
(176)
(201)
(232)
Sale of Servicing Rights
(1)
-
-
(2,187)
Ending balance
$
924
$
933
$
831
(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.
Key Unobservable Inputs used in Determining the Fair Value of Mortgage Servicing Rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2025
2024
Minimum
Maximum
Minimum
Maximum
Discount rates
9.50%
12.00%
9.50%
12.00%
Annual prepayment speeds
8.50%
18.73%
9.14%
18.88%
Cost of servicing (per loan)
$
85
95
$
85
95
Warehouse Line Borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts
(Dollars in Thousands)
Outstanding
$
20
 
million master repurchase agreement without defined expiration.
 
Interest is at the SOFR rate plus
2.25%
 
to plus
3.25%
, with a floor rate of
3.25%
 
to
4.25%
.
 
A cash pledge deposit of $
0.1
 
million is
required by the lender.
$
13,104
$
25
 
million warehouse line of credit agreement expiring in
June 2026
.
 
Interest is at the SOFR plus
2.50%
to
3.00%
.
14,970
$
28,074