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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

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Three Months Ended

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Nine Months Ended

    

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September 30, 

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September 30, 

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(in thousands)

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2022

    

2021

    

2022

    

2021

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Balance, beginning of period

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$

8,491

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$

32,401

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$

29,393

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$

46,867

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Origination of mortgage loans held for sale

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32,856

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170,482

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195,006

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525,246

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Proceeds from the sale of mortgage loans held for sale

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(39,220)

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(182,422)

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(226,191)

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(562,661)

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Net gain on sale of mortgage loans held for sale

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785

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5,330

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4,704

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16,339

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Balance, end of period

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$

2,912

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$

25,791

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$

2,912

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$

25,791

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Components of Mortgage Banking Income

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Three Months Ended

    

Nine Months Ended

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September 30, 

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September 30, 

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(in thousands)

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2022

    

2021

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2022

    

2021

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Net gain realized on sale of mortgage loans held for sale

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$

1,041

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$

5,008

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$

6,448

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$

18,764

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Net change in fair value recognized on loans held for sale

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(141)

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(373)

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(738)

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(1,527)

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Net change in fair value recognized on rate lock loan commitments

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(395)

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(258)

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(1,579)

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(2,596)

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Net change in fair value recognized on forward contracts

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280

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953

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573

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1,698

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Net gain recognized

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785

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5,330

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4,704

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16,339

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Loan servicing income

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894

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832

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2,643

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2,433

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Amortization of mortgage servicing rights

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(525)

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(882)

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(1,773)

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(2,617)

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Change in mortgage servicing rights valuation allowance

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—

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—

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—

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500

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Net servicing income recognized

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369

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(50)

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870

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316

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Total Mortgage Banking income

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$

1,154

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$

5,280

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$

5,574

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$

16,655

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Activity for capitalized mortgage servicing rights

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Three Months Ended

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Nine Months Ended

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September 30, 

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September 30, 

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(in thousands)

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2022

    

2021

    

2022

    

2021

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Balance, beginning of period

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$

9,407

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$

8,335

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$

9,196

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$

7,095

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Additions

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296

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1,414

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1,755

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3,889

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Amortized to expense

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(525)

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(882)

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(1,773)

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(2,617)

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Change in valuation allowance

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—

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—

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—

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500

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Balance, end of period

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$

9,178

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$

8,867

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$

9,178

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$

8,867

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

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Three Months Ended

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Nine Months Ended

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September 30, 

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September 30, 

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(in thousands)

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2022

    

2021

    

2022

    

2021

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Beginning valuation allowance

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$

—

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$

—

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$

—

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$

500

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Charge during the period

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—

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—

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—

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(500)

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Ending valuation allowance

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$

—

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$

—

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$

—

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$

—

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Other information relating to mortgage servicing rights

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(dollars in thousands)

    

September 30, 2022

  

  

December 31, 2021

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Fair value of mortgage servicing rights portfolio

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$

17,592

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$

11,540

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Monthly weighted average prepayment rate of unpaid principal balance*

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125

%

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208

%

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Discount rate

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10.21

%

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10.15

%

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Weighted average foreclosure rate

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0.13

%

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0.19

%

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Weighted average life in years

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7.60

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5.93

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*

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

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September 30, 2022

    

December 31, 2021

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Notional

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Notional

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(in thousands)

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Amount

    

Fair Value

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Amount

    

Fair Value

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Included in Mortgage loans held for sale:

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Mortgage loans held for sale, at fair value

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$

2,925

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$

2,912

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$

28,668

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$

29,393

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Included in other assets:

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Rate lock loan commitments

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$

—

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$

—

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$

56,736

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$

1,404

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Mandatory forward contracts

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13,852

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639

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70,812

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66

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Included in other liabilities:

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Rate lock loan commitments

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$

12,168

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$

175

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$

—

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$

—

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