Quarterly report pursuant to Section 13 or 15(d)

MORTGAGE BANKING ACTIVITIES (Tables)

v3.23.4
MORTGAGE BANKING ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2023
Mortgage Banking Activities [Abstract]  
Mortgage banking revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(As Restated)
(As Restated)
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
$
2,301
$
2,099
$
3,494
$
4,238
Net change in unrealized gain on mortgage loans held for sale
(934)
503
(476)
(396)
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
96
320
287
324
Net origination fees
1,563
1,060
2,468
899
Total mortgage banking
 
revenues
$
3,363
$
4,857
$
6,234
$
8,912
Summary of mortgage servicing rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(As Restated)
(As Restated)
(Dollars in Thousands)
June 30, 2023
December 31, 2022
Number of residential mortgage loans serviced for others
381
1,769
Outstanding principal balance of residential mortgage loans serviced
 
for others
$
86,920
$
410,740
Weighted average
 
interest rate
4.93%
3.62%
Remaining contractual term (in months)
301
298
Capitalized mortgage servicing rights
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(As Restated)
(As Restated)
Three Months Ended
 
June 30,
Six Months Ended
 
June 30,
(Dollars in Thousands)
2023
2022
2023
2022
Beginning balance
$
2,792
$
3,410
$
2,599
$
3,774
Additions due to loans sold with servicing retained
96
320
287
324
Deletions and amortization
(36)
(315)
(34)
(683)
Sale of servicing rights
(1)
(2,287)
-
(2,287)
-
Ending balance
$
565
$
3,415
$
565
$
3,415
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(As Restated)
(As Restated)
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%
20.23%
Cost of servicing (per loan)
$
85
$
95
$
85
$
95
Warehouse Line Borrowings
 
 
 
 
 
 
 
 
 
Amounts
(Dollars in Thousands)
Outstanding
$
75
 
million master repurchase agreement without defined expiration.
 
Interest is at the SOFR rate plus
2.00%
 
to
3.00%
, with a floor rate of
3.25%
.
 
A cash pledge deposit of $
0.5
 
million is required by the lender.
11,105
$
60
 
million warehouse line of credit agreement expiring in
December 2023
.
 
Interest is at the SOFR plus
2.25%
,
to
3.25%
.
16,948
Total Warehouse
 
Borrowings
$
28,053