Quarterly report pursuant to Section 13 or 15(d)

MORTGAGE BANKING ACTIVITIES (Tables)

v3.21.1
MORTGAGE BANKING ACTIVITIES (Tables)
 3 Months Ended
Mar. 31, 2021
Mortgage Banking Activities [Abstract]  
Residential Mortgage Loan Production
March 31, 2021
December 31, 2020
Unpaid Principal
Unpaid Principal
(Dollars in Thousands)
Balance/Notional
Fair Value
Balance/Notional
Fair Value
Residential Mortgage Loans Held for Sale
$
79,903
$
82,081
$
109,831
$
114,039
Residential Mortgage Loan Commitments ("IRLCs")
(1)
144,155
2,982
147,494
4,825
Forward Sales Contracts
(2)
137,500
1,356
158,500
(907)
$
86,419
$
117,957
(1)
Recorded in other assets at fair value
(2)
Recorded at fair value in other assets at March
 
31, 2021 and other liabilities at December 31, 2020
Mortgage banking revenue
Three Months Ended March 31,
(Dollars in Thousands)
2021
2020
Net realized gains on sales of mortgage loans
$
14,424
$
3,407
Net change in unrealized gain on mortgage loans held
 
for sale
(2,031)
738
Net change in the fair value of mortgage loan commitments
 
(IRLCs)
(1,843)
1,655
Net change in the fair value of forward sales contracts
2,263
(1,394)
Pair-Offs on net settlement of forward
 
sales contracts
3,310
(1,376)
Mortgage servicing rights additions
187
-
Net origination fees
815
223
Total mortgage
 
banking revenues
$
17,125
$
3,253
Summary of mortgage servicing rights
(Dollars in Thousands)
March 31, 2021
December 31, 2020
Number of residential mortgage loans serviced for others
1,800
1,796
Outstanding principal balance of residential mortgage
 
loans serviced for others
$
454,382
$
456,135
Weighted average
 
interest rate
3.62%
3.64%
Remaining contractual term (in months)
320
321
Summary of mortgage servicing rights
Three Months Ended March 31,
(Dollars in Thousands)
2021
2020
Beginning balance
$
3,452
$
910
Additions due to loans sold with servicing retained
187
25
Deletions and amortization
(306)
(25)
Valuation
 
allowance reversal
250
-
Ending balance
$
3,583
$
910
Key unobservable inputs used in determining the fair value of mortgage servicing rights
March 31, 2021
December 31, 2020
Minimum
Maximum
Minimum
Maximum
Discount rates
11.00%
15.00%
11.00%
15.00%
Annual prepayment speeds
9.60%
24.96%
13.08%
23.64%
Cost of servicing (per loan)
$
90
$
110
$
90
$
110
Warehouse Line Borrowings
Amounts
(Dollars in Thousands)
Outstanding
$
25
 
million warehouse line of credit agreement expiring
October 2021
.
 
Interest is at LIBOR plus
2.25%
, with a
floor rate of
3.50%
.
 
A cash pledge deposit of $
0.1
 
million is required by the lender.
$
7,788
$
50
 
million master repurchase agreement without defined expiration.
 
Interest is at the LIBOR plus
2.24%
 
to
3.00%
, with a floor rate of
3.25%
.
 
A cash pledge deposit of $
0.5
 
million is required by the lender.
27,622
$
50
 
million warehouse line of credit agreement expiring in
September 2021
.
 
Interest is at the LIBOR plus
2.75%
, with a floor rate of
3.25%
.
13,403
Total Warehouse
 
Borrowings
$
48,813