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MORTGAGE BANKING ACTIVITIES (Tables)
6 Months Ended
Jun. 30, 2020
MORTGAGE BANKING ACTIVITIES  
Activity for Mortgage Loans Held for Sale, at fair value

    

Three Months Ended

Six Months Ended

    

June 30, 

June 30, 

(in thousands)

2020

    

2019

    

2020

    

2019

Balance, beginning of period

$

39,384

$

11,313

$

19,224

$

8,971

Origination of mortgage loans held for sale

 

218,668

 

81,982

 

343,941

 

122,696

Proceeds from the sale of mortgage loans held for sale

 

(226,723)

 

(81,630)

 

(336,641)

 

(121,262)

Net gain on sale of mortgage loans held for sale

 

8,699

 

2,218

 

13,504

 

3,478

Balance, end of period

$

40,028

$

13,883

$

40,028

$

13,883

Components of Mortgage Banking Income

    

Three Months Ended

    

Six Months Ended

June 30, 

June 30, 

(in thousands)

2020

    

2019

2020

    

2019

Net gain realized on sale of mortgage loans held for sale

$

6,050

$

1,896

$

9,128

$

2,771

Net change in fair value recognized on loans held for sale

 

614

 

128

 

1,256

 

46

Net change in fair value recognized on rate lock loan commitments

 

(132)

 

379

 

3,647

 

866

Net change in fair value recognized on forward contracts

 

2,167

 

(185)

 

(527)

 

(205)

Net gain recognized

 

8,699

 

2,218

 

13,504

 

3,478

Loan servicing income

 

707

 

609

 

1,382

 

1,210

Amortization of mortgage servicing rights

 

(1,008)

 

(411)

 

(1,593)

 

(733)

Change in mortgage servicing rights valuation allowance

 

 

 

(100)

 

Net servicing income recognized

 

(301)

 

198

 

(311)

 

477

Total Mortgage Banking income

$

8,398

$

2,416

$

13,193

$

3,955

Activity for capitalized mortgage servicing rights

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2020

    

2019

    

2020

    

2019

Balance, beginning of period

$

5,994

$

4,935

$

5,888

$

4,919

Additions

 

1,725

 

634

 

2,516

 

972

Amortized to expense

 

(1,008)

 

(411)

 

(1,593)

 

(733)

Change in valuation allowance

 

 

 

(100)

 

Balance, end of period

$

6,711

$

5,158

$

6,711

$

5,158

Schedule of activity in the valuation allowance for capitalized mortgage servicing rights

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2020

    

2019

    

2020

    

2019

Beginning valuation allowance

$

$

$

$

Charge (credit) during the period

 

 

 

100

 

Ending valuation allowance

$

$

$

100

$

Other information relating to mortgage servicing rights

(in thousands)

    

June 30, 2020

  

  

December 31, 2019

 

Fair value of mortgage servicing rights portfolio

$

6,892

$

9,068

Monthly weighted average prepayment rate of unpaid principal balance*

 

330

%

 

202

%

Discount rate

10.00

%

10.00

%

Weighted average foreclosure rate

0.13

%

0.14

%

Weighted average life in years

 

4.12

 

5.76

*

Rates are applied to individual tranches with similar characteristics.

Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives

June 30, 2020

    

December 31, 2019

Notional

Notional

(in thousands)

Amount

    

Fair Value

Amount

    

Fair Value

Included in Mortgage loans held for sale:

Mortgage loans held for sale, at fair value

$

38,238

$

40,028

$

18,690

$

19,224

Included in other assets:

Rate lock loan commitments

$

110,176

$

4,436

$

32,776

$

789

Included in other liabilities:

Mandatory forward contracts

$

128,040

$

659

$

44,919

$

131