Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2022

Mortgage Servicing Rights

Schedule of change in fair value of the Company's MSR asset

The following tables present the changes in fair value of the Company’s MSR asset and other information related to the serviced portfolio (dollars in thousands).

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022			2021
Balance, beginning of period	$	100,475	$	142,125	$	86,990		$	143,742
Additions		11,210		15,815		18,510			50,115
Sales		—		(31,850)		(1,876)			(84,633)
Changes in fair value:
Due to changes in model inputs or assumptions (1)		13,237		4,536		24,093			28,674
Due to customer payoffs		(3,234)		(6,129)		(6,029)			(13,401)
Balance, end of period	$	121,688	$	124,497	$	121,688		$	124,497
					June 30,			December 31,
					2022			2021
Mortgage loans serviced for others (2)					$	6,940,571		$	6,355,927
MSR asset as a percentage of serviced mortgage loans						1.75	%		1.37	%

(1) Primarily represents normal customer payments, the impact of changes in interest rates, changes in discount rates and prepayment speed assumptions, and the refinement of other MSR model assumptions. Included in the three and six months ended June 30, 2021 are MSR asset fair value adjustments totaling $9.2 million and $18.9 million, respectively, which reflect the difference between the MSR carrying value and the sales price reflected in the letter of intent to sell the applicable MSR assets.

(2) Represents unpaid principal balance of mortgage loans serviced for others.

Schedule of key assumptions used in measuring the fair value of the Company's MSR

	June 30,			December 31,
	2022			2021
Weighted average constant prepayment rate		8.42	%		10.02	%
Weighted average discount rate		12.15	%		14.32	%
Weighted average life (in years)		7.9			7.1

Schedule of sensitivity analysis of fair value of the Company's MSR to certain key assumptions

A sensitivity analysis of the fair value of the Company’s MSR asset to certain key assumptions is presented in the following table (in thousands).

	June 30,		December 31,
	2022		2021
Constant prepayment rate:
Impact of 10% adverse change	$	(4,046)	$	(2,603)
Impact of 20% adverse change		(7,852)		(5,315)
Discount rate:
Impact of 10% adverse change		(5,612)		(4,070)
Impact of 20% adverse change		(10,716)		(7,753)