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Loans Held for Sale and Loan Servicing
 12 Months Ended
Dec. 31, 2024
Transfers and Servicing [Abstract]  
Loans Held for Sale and Loan Servicing Loans Held for Sale and Loan Servicing
At December 31, 2024 and 2023, loans held for sale consisted of conventional residential mortgages originated for subsequent sale, with an estimated fair value in excess of their carrying value. Therefore, no valuation reserve was necessary for loans held for sale as of the balance sheet dates.
Commercial and residential mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of commercial and residential mortgage loans serviced for others was $722.1 million and $672.2 million at December 31, 2024 and 2023, respectively.
Loans sold consisted of the following during the years ended December 31:
20242023
Loans SoldNet Gains on SaleLoans SoldNet Gains on Sale
(Dollars in thousands)
Residential loans$113,458 $1,697 $75,592 $1,163 
There were no obligations to repurchase loans for any amount at December 31, 2024, but there were contractual risk sharing commitments on certain sold loans totaling $884 thousand as of such date. (See Note 19.)
The Company generally retains the servicing rights on loans sold. The unamortized balance of servicing rights on loans sold with servicing retained was $1.7 million at December 31, 2024 and 2023, and is included in Other assets. The estimated fair value of these servicing rights was in excess of their carrying value at December 31, 2024 and 2023, and therefore no impairment reserve was necessary. The capitalization and amortization of MSRs is included in Other expenses.
The following table presents the capitalization and amortization of loan servicing rights during the periods indicated:
For The Years Ended December 31,
20242023
(Dollars in thousands)
Capitalization of servicing rights$762 $480 
Amortization of servicing rights777 796 
Net amortization of servicing rights
$(15)$(316)