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MORTGAGE BANKING ACTIVITIES (Tables)
9 Months Ended
Sep. 30, 2022
MORTGAGE BANKING ACTIVITIES  
Activity for Mortgage Loans Held for Sale, at fair value

    

Three Months Ended

Nine Months Ended

    

September 30, 

September 30, 

(in thousands)

2022

    

2021

    

2022

    

2021

Balance, beginning of period

$

8,491

$

32,401

$

29,393

$

46,867

Origination of mortgage loans held for sale

 

32,856

 

170,482

 

195,006

 

525,246

Proceeds from the sale of mortgage loans held for sale

 

(39,220)

 

(182,422)

 

(226,191)

 

(562,661)

Net gain on sale of mortgage loans held for sale

 

785

 

5,330

 

4,704

 

16,339

Balance, end of period

$

2,912

$

25,791

$

2,912

$

25,791

Components of Mortgage Banking Income

    

Three Months Ended

    

Nine Months Ended

September 30, 

September 30, 

(in thousands)

2022

    

2021

2022

    

2021

Net gain realized on sale of mortgage loans held for sale

$

1,041

$

5,008

$

6,448

$

18,764

Net change in fair value recognized on loans held for sale

 

(141)

 

(373)

 

(738)

 

(1,527)

Net change in fair value recognized on rate lock loan commitments

 

(395)

 

(258)

 

(1,579)

 

(2,596)

Net change in fair value recognized on forward contracts

 

280

 

953

 

573

 

1,698

Net gain recognized

 

785

 

5,330

 

4,704

 

16,339

Loan servicing income

 

894

 

832

 

2,643

 

2,433

Amortization of mortgage servicing rights

 

(525)

 

(882)

 

(1,773)

 

(2,617)

Change in mortgage servicing rights valuation allowance

 

 

 

 

500

Net servicing income recognized

 

369

 

(50)

 

870

 

316

Total Mortgage Banking income

$

1,154

$

5,280

$

5,574

$

16,655

Activity for capitalized mortgage servicing rights

    

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

(in thousands)

2022

    

2021

    

2022

    

2021

Balance, beginning of period

$

9,407

$

8,335

$

9,196

$

7,095

Additions

 

296

 

1,414

 

1,755

 

3,889

Amortized to expense

 

(525)

 

(882)

 

(1,773)

 

(2,617)

Change in valuation allowance

 

 

 

 

500

Balance, end of period

$

9,178

$

8,867

$

9,178

$

8,867

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

    

Three Months Ended

Nine Months Ended

September 30, 

September 30, 

(in thousands)

2022

    

2021

    

2022

    

2021

Beginning valuation allowance

$

$

$

$

500

Charge during the period

 

 

 

 

(500)

Ending valuation allowance

$

$

$

$

Other information relating to mortgage servicing rights

(dollars in thousands)

    

September 30, 2022

  

  

December 31, 2021

 

Fair value of mortgage servicing rights portfolio

$

17,592

$

11,540

Monthly weighted average prepayment rate of unpaid principal balance*

 

125

%

 

208

%

Discount rate

10.21

%

10.15

%

Weighted average foreclosure rate

0.13

%

0.19

%

Weighted average life in years

 

7.60

 

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

September 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

$

2,925

$

2,912

$

28,668

$

29,393

Included in other assets:

Rate lock loan commitments

$

$

$

56,736

$

1,404

Mandatory forward contracts

13,852

639

70,812

66

Included in other liabilities:

Rate lock loan commitments

$

12,168

$

175

$

$