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Mortgage Servicing Rights
 6 Months Ended
Jun. 30, 2025
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights Mortgage Servicing Rights
The unpaid principal balance of the Company’s mortgage servicing rights portfolio totaled $414.1 million at June 30, 2025 compared to $425.8 million at December 31, 2024. Of these total balances, the unpaid principal balances of loans serviced for Federal National Mortgage Association (“Fannie Mae”) at June 30, 2025 and December 31, 2024 were $412.1 million and $423.7 million, respectively. The unpaid principal balance of loans serviced for other financial institutions totaled $2.1 million at both June 30, 2025 and December 31, 2024. Loans serviced for Fannie Mae and others are not included in the Company’s financial statements as they are not assets of the Company.
A summary of the change in the balance of mortgage servicing assets during the periods indicated were as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Beginning balance, at fair value$4,688 $4,612 $4,769 $4,632 
Servicing rights that result from transfers and sale of financial assets30 44 48 89 
Changes in fair value:
Due to changes in model inputs or assumptions and other(1)
(80)(116)(179)(181)
Ending balance, at fair value$4,638 $4,540 $4,638 $4,540 
(1) Represents changes due to collection/realization of expected cash flows and curtailments.
The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows:
June 30, 2025December 31, 2024
Prepayment speed (Public Securities Association “PSA” model)125 %125 %
Weighted-average life10.4 years10.6 years
Weighted average discount rate10.0 %10.0 %
The amount of contractually specified servicing, late and ancillary fees earned on mortgage servicing rights, which are included in mortgage servicing income on the Condensed Consolidated Statements of Income, totaled $263 thousand and $531 thousand for three and six months ended June 30, 2025, and $279 thousand and $561 thousand for the three and six months ended June 30, 2024, respectively.