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Servicing Rights
 12 Months Ended
Dec. 31, 2024
Transfers and Servicing [Abstract]  
Servicing Rights Servicing Rights
Mortgage servicing rights
    The following table details the activity in the Company's MSR for the year indicated:
(In Thousands)202420232022
Balance, beginning of period$19,564 $18,635 $13,724 
Purchased MSRs2,328 — — 
Additions for new MSR capitalized4,748 3,616 4,623 
Changes in fair value:
  Due to changes in model inputs of assumptions (1)
1,334 (922)1,615 
  Other (2)
(1,535)(1,765)(1,327)
Carrying value, December 31$26,439 $19,564 $18,635 

(1) Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
(2) Represents changes due to collection/realization of expected cash flows over time.

    The following table details information related to our serviced mortgage loan portfolio as of the dates indicated:
(In Thousands)December 31, 2024December 31, 2023
Balance of mortgage loans serviced for others$1,460,720 $1,044,516 
Weighted average rate of note4.46 %4.03 %
MSR as a percentage of serviced loans1.81 %1.87 %

    The Company recognized servicing fees of $4.4 million, $3.8 million, and $3.3 million during 2024, 2023, and 2022, respectively, which includes contractually specified servicing fees and ancillary fees which are included in "Mortgage banking income" as a component of other noninterest income in the Company's Consolidated Statements of Income.

    The following table outlines the weighted average key assumptions used in measuring the fair value of MSRs and the sensitivity of the current fair value of MSRs to immediate adverse changes in those assumptions as of the dates indicated. See Note 25 for additional information on key assumptions for MSRs.

(In Thousands)
December 31, 2024December 31, 2023
Fair value of MSRs
$26,439 $19,564 
Expected weighted-average life (in years)
9.5110.23
Key assumptions:
   Constant prepayment rate1
9.09 %8.48 %
      Impact on fair value from 10% adverse change
($935)($1,754)
      Impact on fair value from 25% adverse change
($2,222)($2,552)
   Discount rate
10.99 %10.98 %
      Impact on fair value from 100 basis point increase
($1,592)($811)
      Impact on fair value from 200 basis point increase
($2,544)($1,560)
   Cost to service assumptions ($ per loan)
$81 $82 
      Impact on fair value from 10% adverse change
($235)($160)
      Impact on fair value from 25% adverse change
($588)($401)
1Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.
    These sensitivities in the preceding table are hypothetical and caution should be exercised when relying on this data. Changes in value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in the assumption to the change in the value may not be linear. Also, the effect of a variation in a particular assumption on the value of the MSR held is calculated independently without changing any other assumptions. In reality, changes in one factor may result in changes in others, which might magnify or counteract the sensitivities.

Commercial servicing rights
    CSRs have a carrying value of $2.2 million at both December 31, 2024 and 2023, and total commercial loans serviced for others were $279.7 million and $282.2 million at December 31, 2024 and 2023, respectively. Key assumptions used in measuring the fair value of CSRs as of December 31, 2024 and 2023 include an average conditional prepayment rate of 11.38% and 11.76% and a discount rate of 12.00% and 9.50%, respectively.