Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2023

Transfers and Servicing of Financial Assets [Abstract]

Mortgage Servicing Rights

Mortgage servicing rights

Changes in the Company’s mortgage servicing rights were as follows for the years ended December 31, 2023, 2022, and 2021:

	Years Ended December 31,
	2023		2022		2021
Carrying value at beginning of period	$	168,365	$	115,512	$	79,997
Capitalization	7,192		20,809		39,018
Change in fair value:
Due to payoffs/paydowns	(12,327)		(16,012)		(30,583)
Due to change in valuation inputs or assumptions	1,019		48,056		27,080
Carrying value at end of period	$	164,249	$	168,365	$	115,512

The following table summarizes servicing income and expense, which are included in “Mortgage banking income” and “Other noninterest expense,” respectively, in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021: 

	Years Ended December 31,
	2023		2022		2021
Servicing income:
Servicing income	$	30,263	$	30,763	$	28,890
Change in fair value of mortgage servicing rights	(11,308)		32,044		(3,503)
Change in fair value of derivative hedging instruments	(4,918)		(42,143)		(8,614)
Servicing income	14,037		20,664		16,773
Servicing expenses	8,093		10,259		9,862
Net servicing income	$	5,944	$	10,405	$	6,911

Data and key economic assumptions related to the Company’s mortgage servicing rights as of December 31, 2023 and 2022 are as follows: 

	December 31,
	2023			2022
Unpaid principal balance of mortgage loans sold and serviced for others	$	10,762,906		$	11,086,582
Weighted-average prepayment speed (CPR)	6.19		%	5.55		%
Estimated impact on fair value of a 10% increase	$	(4,616)		$	(4,886)
Estimated impact on fair value of a 20% increase	$	(8,924)		$	(9,447)
Discount rate	9.62		%	9.10		%
Estimated impact on fair value of a 100 bp increase	$	(7,637)		$	(8,087)
Estimated impact on fair value of a 200 bp increase	$	(14,624)		$	(15,475)
Weighted-average coupon interest rate	3.47		%	3.31		%
Weighted-average servicing fee (basis points)	27			27
Weighted-average remaining maturity (in months)	334			332

The Company economically hedges the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights. See Note 15, “Derivatives” for additional information on these hedging instruments.

As of December 31, 2023 and 2022, mortgage escrow deposits totaled $63,591 and $75,612, respectively.