Annual report pursuant to Section 13 and 15(d)

MORTGAGE BANKING ACTIVITIES (Tables)

v3.23.4
MORTGAGE BANKING ACTIVITIES (Tables)
 12 Months Ended
Dec. 31, 2022
Mortgage Banking Activities [Abstract]  
Summary of unpaid principal balance of residential mortgage loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(As Restated)
December 31, 2022
December 31, 2021
Unpaid Principal
Unpaid Principal
(Dollars in Thousands)
Balance/Notional
Fair Value
Balance/Notional
Fair Value
Residential Mortgage Loans Held for Sale
$
26,274
$
26,909
$
50,773
$
52,532
Residential Mortgage Loan Commitments
(1)
36,535
819
51,883
1,258
Forward Sales Contracts
(2)
15,500
187
48,000
(7)
$
27,915
$
53,783
(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)
(As Restated)
 
2022
2021
2020
Net realized gain on sales of mortgage loans
$
5,565
$
49,355
$
59,709
Net change in unrealized gain on mortgage loans held for sale
(1,164)
(2,410)
2,926
Net change in the fair value of mortgage loan commitments
(439)
(3,567)
2,625
Net change in the fair value of forward sales contracts
192
900
284
Pair-Offs on net settlement of forward
 
sales contracts
4,956
2,956
(9,602)
Mortgage servicing rights additions
565
1,416
3,448
Net origination fees
2,234
3,775
3,954
Total mortgage banking
 
revenues
$
11,909
$
52,425
$
63,344
Summary of mortgage servicing rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(As Restated)
(Dollars in Thousands)
2022
2021
Number of residential mortgage loans serviced for others
1,769
2,106
Outstanding principal balance of residential mortgage loans serviced
 
for others
$
410,740
$
532,967
Weighted average
 
interest rate
3.62%
3.59%
Remaining contractual term (in months)
298
317
Activity in the capitalized mortgage servicing rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(As Restated)
(Dollars in Thousands)
2022
2021
2020
Beginning balance
$
3,774
$
3,452
$
910
Additions due to loans sold with servicing retained
565
1,416
3,448
Deletions and amortization
(1,291)
(1,344)
(656)
Valuation
 
Allowance reversal
-
250
(250)
Sale of Servicing Rights
(1)
(449)
-
-
Ending balance
$
2,599
$
3,774
$
3,452
(1)
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2022
2021
Minimum
Maximum
Minimum
Maximum
Discount rates
9.50%
12.00%
11.00%
15.00%
Annual prepayment speeds
12.33%
20.23%
11.98%
23.79%
Cost of servicing (per loan)
$
85
95
$
60
73
Warehouse Line Borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts
(Dollars in Thousands)
Outstanding
$
75
 
million master repurchase agreement without defined expiration.
 
Interest is at the Prime rate minus
1.00%
to plus
1.00%
, with a floor rate of
3.25%
.
 
A cash pledge deposit of $
0.5
 
million is required by the lender.
$
9,577
$
75
 
million warehouse line of credit agreement expiring in
December 2022
.
 
Interest is at the SOFR plus
2.25%
to
3.25%
.
40,575
$
50,152