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Mortgage Servicing Rights (Tables)
3 Months Ended
Mar. 31, 2023
Mortgage Servicing Rights  
Schedule of change in fair value of the Company's MSR asset

The following tables present the changes in fair value of the Company’s MSR asset and other information related to the serviced portfolio (dollars in thousands).

 

Three Months Ended March 31,

 

2023

2022

 

Balance, beginning of period

$

100,825

$

86,990

Additions

 

13,210

 

7,301

Sales

 

 

(1,876)

Changes in fair value:

Due to changes in model inputs or assumptions (1)

 

(9,865)

 

10,856

Due to customer payoffs

 

(856)

 

(2,796)

Balance, end of period

$

103,314

$

100,475

March 31,

December 31,

2023

2022

Mortgage loans serviced for others (2)

$

5,739,393

$

5,144,558

MSR asset as a percentage of serviced mortgage loans

 

1.80

%  

 

1.96

%  

(1)Primarily represents normal customer payments, the impact of changes in interest rates, changes in discount rates and prepayment speed assumptions, and the refinement of other MSR model assumptions.
(2)Represents unpaid principal balance of mortgage loans serviced for others.

Schedule of key assumptions used in measuring the fair value of the Company's MSR

March 31,

December 31,

2023

2022

Weighted average constant prepayment rate

 

9.08

%  

8.14

%

Weighted average discount rate

 

12.08

%  

12.10

%

Weighted average life (in years)

 

7.9

8.4

Schedule of sensitivity analysis of fair value of the Company's MSR to certain key assumptions

A sensitivity analysis of the fair value of the Company’s MSR asset to certain key assumptions is presented in the following table (in thousands).

March 31,

December 31,

    

2023

    

2022

Constant prepayment rate:

Impact of 10% adverse change

$

(3,738)

$

(3,288)

Impact of 20% adverse change

 

(7,228)

 

(6,375)

Discount rate:

Impact of 10% adverse change

 

(4,680)

 

(4,797)

Impact of 20% adverse change

 

(8,938)

 

(9,147)