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Mortgage Servicing Rights
 9 Months Ended
Sep. 30, 2025
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights Mortgage Servicing Rights
(In Thousands)
The Company retains the right to service certain mortgage loans that it sells to secondary market investors. These mortgage servicing rights (“MSRs”) are recognized as a separate asset on the date the corresponding mortgage loan is sold. MSRs are amortized in proportion to and over the period of estimated net servicing income. These servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions, including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors, and is subject to significant fluctuation as a result of actual prepayment speeds, default rates and losses differing from estimates thereof. For example, an increase in mortgage interest rates or a decrease in actual prepayment speeds may cause positive adjustments to the valuation of the Company’s MSRs.
MSRs are evaluated for impairment (or reversals of prior impairments) quarterly based upon the fair value of the rights as compared to the carrying amount. Impairment is recognized through a valuation allowance in the amount that unamortized cost exceeds fair value. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the valuation allowance may be recorded as an increase to income. Changes in valuation allowances related to servicing rights are reported in “Mortgage banking income” on the Consolidated Statements of Income.
There was no valuation adjustment on MSRs during the nine months ended September 30, 2025 or 2024.
Changes in the Company’s MSRs were as follows:
20252024
Balance at January 1$72,991 $91,688 
Sale of MSRs(7,886)(19,539)
Capitalization7,092 6,860 
Amortization(6,731)(7,019)
Balance at September 30$65,466 $71,990 

Data and key economic assumptions related to the Company’s MSRs are as follows as of the dates presented:
 
September 30, 2025December 31, 2024
Unpaid principal balance$5,632,116 $5,874,481 
Weighted-average prepayment speed (CPR)10.38 %8.87 %
Estimated impact of a 10% increase$(2,903)$(3,066)
Estimated impact of a 20% increase(5,594)(5,941)
Discount rate9.96 %11.09 %
Estimated impact of a 10% increase$(3,292)$(3,924)
Estimated impact of a 20% increase(6,337)(7,557)
Weighted-average coupon interest rate4.54 %4.13 %
Weighted-average servicing fee (basis points)33.96 36.06 
Weighted-average remaining maturity (in years)7.07.5
The Company recorded servicing fees of $2,841 and $3,594 for the three months ended September 30, 2025 and 2024, respectively, and $9,498 and $11,463 for the nine months ended September 30, 2025 and 2024, respectively, all of which are included in “Mortgage banking income” in the Consolidated Statements of Income.