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Mortgage Servicing Rights
 9 Months Ended
Sep. 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 $406.2 million at September 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 September 30, 2025 and December 31, 2024 were $404.1 million and $423.7 million, respectively. The unpaid principal balance of loans serviced for other financial institutions totaled $2.1 million at both September 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 September 30,Nine Months Ended September 30,
2025202420252024
Beginning balance, at fair value$4,638 $4,540 $4,769 $4,632 
Servicing rights that result from transfers and sale of financial assets39 24 87 114 
Changes in fair value:
Due to changes in model inputs or assumptions and other(1)
(372)101 (551)(81)
Ending balance, at fair value$4,305 $4,665 $4,305 $4,665 
(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:
September 30, 2025December 31, 2024
Prepayment speed (Public Securities Association “PSA” model)125 %125 %
Weighted-average life10.2 years10.6 years
Weighted average discount rate10.0 %10.0 %
Average debt service cost per residential loan$96.00 $80.00 
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 $262 thousand and $794 thousand for three and nine months ended September 30, 2025, and $280 thousand and $841 thousand for the three and nine months ended September 30, 2024, respectively.