Loan Servicing, Mortgage Origination, and Loans Held for Sale (Tables)

9 Months Ended

Sep. 30, 2022

Loan Servicing, Mortgage Origination, and Loans Held for Sale

Summary of changes in the fair value of MSRs and its offsetting hedge

	Three Months Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Increase in fair value of MSRs	$	2,661	$	1,659	$	18,274	$	7,543
Decay of MSRs		(2,530)		(3,427)		(8,052)		(11,276)
Loss related to derivatives		(3,572)		(577)		(17,963)		(4,178)
Net effect on statements of income	$	(3,441)	$	(2,345)	$	(7,741)	$	(7,911)

Schedule of characteristics and sensitivity analysis of the MSR

The characteristics and sensitivity analysis of the MSRs are included in the following table:

	September 30,			December 31,
(Dollars in thousands)	2022			2021
Composition of residential loans serviced for others
Fixed-rate mortgage loans		100.0	%		99.9	%
Adjustable-rate mortgage loans		—	%		0.1	%
Total		100.0	%		100.0	%
Weighted average life		8.43	years		7.35	years
Constant Prepayment rate (CPR)		6.4	%		8.4	%
Weighted average discount rate		10.2	%		9.0	%
Effect on fair value due to change in interest rates
25 basis point increase	$	510		$	3,961
50 basis point increase		925			7,261
25 basis point decrease		(628)			(4,371)
50 basis point decrease		(1,389)			(8,966)