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Transfers and Servicing of Financial Assets
 6 Months Ended
Jun. 30, 2023
Transfers and Servicing [Abstract]  
Transfers and Servicing of Financial Assets Transfers and Servicing of Financial Assets
The Company originates and sells residential mortgage loans in the normal course of business, primarily to government-sponsored entities through established programs and securitizations. Residential mortgage origination fees, adjustments for changes in fair value, and any gain or loss recognized on residential mortgage loans sold are included in Mortgage banking activities on the accompanying Condensed Consolidated Statements of Income.
The following table summarizes information related to mortgage banking activities:
 Three months ended June 30,Six months ended June 30,
(In thousands)2023202220232022
Net gain on sale$91 $106 $168 $503 
Origination fees34 37 45 172 
Fair value adjustment4 (41)(25)(145)
Mortgage banking activities$129 $102 $188 $530 
Proceeds from sale$4,828 $6,080 $8,660 $32,833 
Loans sold with servicing rights retained4,119 4,954 5,348 30,317 
Under certain circumstances, the Company may decide to sell loans that were not originated or otherwise acquired with the intent to sell. During the three months ended June 30, 2023, and 2022, the Company sold commercial loans not originated for sale for proceeds of $334.4 million and $67.4 million, respectively, which resulted in net gains on sale of $0.6 million and $1.4 million, respectively. During the six months ended June 30, 2023, and 2022, the Company sold commercial loans not originated for sale for proceeds of $441.1 million and $118.5 million, respectively, which resulted in net gains on sale of $0.7 million and $3.2 million, respectively.
In addition, the Company may retain servicing rights on its residential mortgage loans sold in the normal course of business. At June 30, 2023, and December 31, 2022, the aggregate principal balance of residential mortgage loans serviced for others totaled $1.9 billion and $2.0 billion, respectively. Mortgage servicing rights are held at the lower of cost, net of accumulated amortization, or fair market value, and are included in Accrued interest receivable and other assets on the accompanying Condensed Consolidated Balance Sheets. The Company assesses mortgage servicing rights for impairment each quarter and establishes or adjusts the valuation allowance to the extent that amortized cost exceeds the estimated fair market value.
The following table presents the change in the carrying amount for mortgage servicing rights:
Three months ended June 30,Six months ended June 30,
(In thousands)2023202220232022
Balance, beginning of period$9,189 $9,735 $9,515 $9,237 
Acquired from Sterling— — — 859 
Additions37 56 52 265 
Amortization(368)(1,199)(709)(1,769)
Balance, end of period$8,858 $8,592 $8,858 $8,592 
Loan servicing fees, net of mortgage servicing rights amortization, were $1.3 million and $0.5 million for the three months ended June 30, 2023, and 2022, respectively, and $2.6 million and $1.6 million for the six months ended June 30, 2023, and 2022, respectively, and are included in Loan and lease related fees on the accompanying Condensed Consolidated Statements of Income. Information regarding the fair value of loans held for sale and mortgage servicing rights can be found within Note 14: Fair Value Measurements.