MORTGAGE BANKING ACTIVITIES (Tables) |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Mortgage Banking Activities [Abstract] | |
| Residential Mortgage Loan Production |
September 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
$
35,899
$
34,013
$
26,274
$
26,909
Residential Mortgage Loan Commitments ("IRLCs")
(1)
50,726
859
36,535
819
Forward Sales Contracts
(1)
28,500
180
15,500
187
$
35,052
$
27,915
(1)
Recorded in other assets at fair value
|
| Mortgage banking revenue |
Three Months Ended
September 30,
Nine Months Ended
September 30,
(Dollars in Thousands)
2023
2022
2023
2022
Net realized gains on sales of mortgage loans
$
1,350
$
1,478
$
4,843
$
5,716
Net change in unrealized gain on mortgage loans held for sale
(1,223)
(1,205)
(1,700)
(1,600)
Net change in the fair value of mortgage loan commitments (IRLCs)
(412)
439
39
116
Net change in the fair value of forward sales contracts
80
655
(5)
616
Pair-Offs on net settlement of forward sales contracts
359
637
454
4,846
Mortgage servicing rights additions
184
126
471
449
Net origination fees
1,501
765
3,970
1,664
Total mortgage banking
$
1,839
$
2,895
$
8,072
$
11,807
|
| Summary of mortgage servicing rights |
(Dollars in Thousands)
September 30, 2023
December 31, 2022
Number of residential mortgage loans serviced for others
411
1,769
Outstanding principal balance of residential mortgage loans serviced
$
97,479
$
410,740
Weighted average
5.38%
3.62%
Remaining contractual term (in months)
306
298
|
| Capitalized mortgage servicing rights |
Three Months Ended
September 30,
Nine Months Ended
September 30,
(Dollars in Thousands)
2023
2022
2023
2022
Beginning balance
$
565
$
3,415
$
2,599
$
3,774
Additions due to loans sold with servicing retained
184
126
471
449
Deletions and amortization
(45)
(337)
(79)
(1,019)
Sale of servicing rights
(1)
-
-
(2,287)
-
Ending balance
$
704
$
3,204
$
704
$
3,204
(1)
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 |
September 30, 2023
December 31, 2022
Minimum
Maximum
Minimum
Maximum
Discount rates
9.50%
12.00%
9.50%
12.00%
Annual prepayment speeds
10.58%
16.83%
12.33%
20.23%
Cost of servicing (per loan)
$
85
$
95
$
85
$
95
|
| Warehouse Line Borrowings |
Amounts
(Dollars in Thousands)
Outstanding
$
50
2.00%
3.00%
, with a floor rate of
3.25%
.
0.5
$
10,504
$
60
December 2023
.
2.25%
,
to
3.25%
.
8,282
Total Warehouse
$
18,786
|