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Mortgage Banking Activities
 3 Months Ended
Mar. 31, 2026
Transfers and Servicing [Abstract]  
Mortgage Banking Activities Mortgage Banking Activities
The Company originates mortgage loans and sells those loans to the FHLMC, FNMA, GNMA, and private investors. Typically, these loans are sold with servicing retained by the Bank. Loans sold with servicing retained for the three months ended March 31, 2026 and 2025 aggregated $105.7 million and $71.1 million, respectively. Loans serviced for investors aggregated $4.6 billion and $4.7 billion at March 31, 2026 and March 31, 2025, respectively.
Included in mortgage banking revenues in the accompanying consolidated statements of income for March 31, 2026 and 2025 are the following:
Three Months Ended March 31,
20262025
(dollars in thousands)
Gains on sale of mortgage loans$6,285 $5,530 
Fees on real estate loans sold
541 389 
(Losses) on interest rate lock commitments (IRLC) and associated hedging(131)(95)
Servicing fees2,841 2,903 
Mortgage banking revenues, net$9,536 $8,727 
The following assumptions were used in determining the fair value of the capitalized mortgage servicing rights:
Three Months Ended March 31,
20262025
Discount rate9.16%9.17%
Prepayment speed6.60%6.30%
Delinquency rate0.80%0.69%
A summary of the mortgage servicing rights is as follows:
Three Months Ended March 31,
20262025
(dollars in thousands)
Balance at beginning of period$29,391 $30,423 
Capitalized mortgage servicing rights1,398 775 
Amortization(1,532)(1,403)
Change in valuation allowance- - 
Balance at end of period$29,257 $29,795 
The valuation allowance at each of March 31, 2026 and December 31, 2025 was $0.