Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2024

Transfers and Servicing [Abstract]

Mortgage Servicing Rights

Note 8 — Mortgage Servicing Rights

Mortgage loans serviced are related to the Century business and not included in the consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others amounted to $707.7 million and $500.7 million as of June 30, 2024 and 2023,

respectively. The Company has elected to record its mortgage servicing rights using the fair value measurement method. Significant assumptions used in determining the fair value of servicing rights as of June 30, 2024 and December 31, 2023 include: 1) Weighted average discount rate of 8.0%, and 2) Weighted average conditional prepayment rate of 4.7% and 6.5%, respectively.

The following table presents the Company's mortgage servicing rights activity during the quarter and year-to-date ended June 30, 2024 and 2023:

	Three Months Ended June 30,					Six Months Ended June 30,
	2024			2023		2024		2023
	(In thousands)
Balance at the beginning of period	$	9,022		$	9,143	$	8,578	$	9,238
Mortgage servicing rights acquired		3,580			—		3,580		—
Additions		—			235		—		250
Fair value adjustments		(373	)		67		71		(43	)
Balance at the end of period	$	12,229		$	9,445	$	12,229	$	9,445