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MORTGAGE BANKING ACTIVITIES (Tables)
6 Months Ended
Jun. 30, 2022
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)

2022

    

2021

    

2022

    

2021

Balance, beginning of period

$

13,302

$

63,636

$

29,393

$

46,867

Origination of mortgage loans held for sale

 

61,489

 

141,177

 

162,150

 

354,764

Proceeds from the sale of mortgage loans held for sale

 

(67,759)

 

(176,424)

 

(186,971)

 

(380,239)

Net gain on sale of mortgage loans held for sale

 

1,459

 

4,012

 

3,919

 

11,009

Balance, end of period

$

8,491

$

32,401

$

8,491

$

32,401

Components of Mortgage Banking Income

    

Three Months Ended

    

Six Months Ended

June 30, 

June 30, 

(in thousands)

2022

    

2021

2022

    

2021

Net gain realized on sale of mortgage loans held for sale

$

2,674

$

5,711

$

5,407

$

13,756

Net change in fair value recognized on loans held for sale

 

109

 

(143)

 

(597)

 

(1,154)

Net change in fair value recognized on rate lock loan commitments

 

(222)

 

299

 

(1,184)

 

(2,338)

Net change in fair value recognized on forward contracts

 

(1,102)

 

(1,855)

 

293

 

745

Net gain recognized

 

1,459

 

4,012

 

3,919

 

11,009

Loan servicing income

 

884

 

808

 

1,749

 

1,601

Amortization of mortgage servicing rights

 

(580)

 

(738)

 

(1,248)

 

(1,735)

Change in mortgage servicing rights valuation allowance

 

 

100

 

 

500

Net servicing income recognized

 

304

 

170

 

501

 

366

Total Mortgage Banking income

$

1,763

$

4,182

$

4,420

$

11,375

Activity for capitalized mortgage servicing rights

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2022

    

2021

    

2022

    

2021

Balance, beginning of period

$

9,502

$

7,711

$

9,196

$

7,095

Additions

 

485

 

1,262

 

1,459

 

2,475

Amortized to expense

 

(580)

 

(738)

 

(1,248)

 

(1,735)

Change in valuation allowance

 

 

100

 

 

500

Balance, end of period

$

9,407

$

8,335

$

9,407

$

8,335

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

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2022

    

2021

    

2022

    

2021

Beginning valuation allowance

$

$

100

$

$

500

Charge during the period

 

 

(100)

 

 

(500)

Ending valuation allowance

$

$

$

$

Other information relating to mortgage servicing rights

(dollars in thousands)

    

June 30, 2022

  

  

December 31, 2021

 

Fair value of mortgage servicing rights portfolio

$

16,568

$

11,540

Monthly weighted average prepayment rate of unpaid principal balance*

 

128

%

 

208

%

Discount rate

10.17

%

10.15

%

Weighted average foreclosure rate

0.15

%

0.19

%

Weighted average life in years

 

7.55

 

5.93

*

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, 2022

    

December 31, 2021

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

$

8,363

$

8,491

$

28,668

$

29,393

Included in other assets:

Rate lock loan commitments

$

28,072

$

220

$

56,736

$

1,404

Mandatory forward contracts

29,812

359

70,812

66