MORTGAGE BANKING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2025

MORTGAGE BANKING ACTIVITIES

Activity for Mortgage Loans HFS, at fair value

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Balance, beginning of period	$	9,140	$	80,884	$	8,312	$	3,227
Origination of mortgage loans held for sale		51,788		52,706		93,021		79,752
Transferred from held for investment to held for sale		—		(1,291)		—		68,173
Proceeds from the sale of mortgage loans held for sale		(53,561)		(123,693)		(95,377)		(142,466)
Net gain on mortgage loans held for sale		1,483		1,097		2,894		1,017
Balance, end of period	$	8,850	$	9,703	$	8,850	$	9,703

Components of Mortgage Banking Income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Net gain realized on sale of mortgage loans held for sale	$	1,354	$	1,120	$	2,637	$	1,685
Fair value adjustment for correspondent loans reclassified to held for sale		—		—		—		(997)
Net change in fair value recognized on loans held for sale		26		(38)		(19)		107
Net change in fair value recognized on rate lock loan commitments		166		(21)		478		202
Net change in fair value recognized on forward contracts		(63)		36		(202)		20
Net gain recognized		1,483		1,097		2,894		1,017
Loan servicing income		825		938		1,650		1,754
Amortization of mortgage servicing rights		(412)		(423)		(827)		(849)
Net servicing income recognized		413		515		823		905
Total mortgage banking income	$	1,896	$	1,612	$	3,717	$	1,922

Activity for capitalized MSRs

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Balance, beginning of period	$	6,876	$	7,103	$	6,975	$	7,411
Additions		377		350		693		468
Amortized to expense		(412)		(423)		(827)		(849)
Balance, end of period	$	6,841	$	7,030	$	6,841	$	7,030

Other information relating to MSRs

(dollars in thousands)	June 30, 2025			December 31, 2024
Fair value of mortgage servicing rights portfolio	$	17,157		$	17,159
Monthly weighted average prepayment rate of unpaid principal balance*		126	%		125	%
Discount rate		9.84	%		10.25	%
Weighted average foreclosure rate		0.08	%		0.06	%
Weighted average life in years		7.55			7.51

* Rates are applied to individual tranches with similar characteristics.

Schedule of notional amounts and fair values of mortgage loans HFS at fair value and mortgage banking derivatives

	June 30, 2025				December 31, 2024
	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	$	8,674	$	8,850	$	8,117	$	8,312
Included in other assets:
Rate lock loan commitments	$	26,703	$	701	$	12,592	$	223
Mandatory forward contracts		—		—		18,776		70
Included in other liabilities:
Mandatory forward contracts	$	25,583	$	132	$	—	$	—