MORTGAGE BANKING ACTIVITIES (Tables) |
6 Months Ended |
|---|---|
Jun. 30, 2023 | |
| Mortgage Banking Activities [Abstract] | |
| Residential Mortgage Loan Production |
June 30, 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
$
68,127
$
67,908
$
54,488
$
54,635
Residential Mortgage Loan Commitments ("IRLCs")
(1)
61,126
1,270
36,535
819
Forward Sales Contracts
(2)
29,000
100
15,500
187
$
69,278
$
55,641
(1)
Recorded in other assets at fair value
(2)
Recorded in other assets at fair value at June 30,2023
|
| Mortgage banking revenue |
Three Months Ended
June 30,
Six Months Ended
June 30,
(Dollars in Thousands)
2023
2022
2023
2022
Net realized gains on sales of mortgage loans
$
3,547
$
4,800
$
6,739
$
9,935
Net change in unrealized gain on mortgage loans held for sale
(894)
79
(365)
(895)
Net change in the fair value of mortgage loan commitments (IRLCs)
(75)
(183)
452
(324)
Net change in the fair value of forward sales contracts
316
(896)
(86)
(38)
Pair-Offs on net settlement of forward sales contracts
96
1,954
95
4,209
Mortgage servicing rights additions
632
1,457
1,666
2,088
Net origination fees
2,215
1,854
4,331
3,036
Total mortgage banking
$
5,837
$
9,065
$
12,832
$
18,011
|
| Summary of mortgage servicing rights |
(Dollars in Thousands)
June 30, 2023
December 31, 2022
Number of residential mortgage loans serviced for others
1,956
2,975
Outstanding principal balance of residential mortgage loans serviced
$
735,091
$
895,145
Weighted average
4.93%
4.19%
Remaining contractual term (in months)
351
345
|
| Capitalized mortgage servicing rights |
Three Months Ended
June 30,
Six Months Ended
June 30,
(Dollars in Thousands)
2023
2022
2023
2022
Beginning balance
$
6,801
$
4,001
$
6,067
$
3,774
Additions due to loans sold with servicing retained
632
1,457
1,767
2,088
Deletions and amortization
(406)
(372)
(807)
(776)
Sale of servicing rights
(1)
(2,287)
-
(2,287)
-
Ending balance
$
4,740
$
5,086
$
4,740
$
5,086
The Company sold an MSR portfolio with an unpaid principal balance of $
334
4.0
recognizing a $
1.38
|
| Key unobservable inputs used in determining the fair value of mortgage servicing rights |
June 30, 2023
December 31, 2022
Minimum
Maximum
Minimum
Maximum
Discount rates
9.51%
12.00%
9.50%
12.00%
Annual prepayment speeds
11.26%
17.07%
12.33%
20.45%
Cost of servicing (per loan)
$
85
$
95
$
85
$
95
|
| Warehouse Line Borrowings |
Amounts
(Dollars in Thousands)
Outstanding
$
75
2.00%
3.00%
, with a floor rate of
3.25%
.
0.5
11,105
$
60
December 2023
.
2.25%
,
to
3.25%
.
16,948
Total Warehouse
$
28,053
|