Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2023

Transfers and Servicing [Abstract]

Mortgage Servicing Rights

Note 8 — Mortgage Servicing Rights

Mortgage loans serviced are related to the Century business and not included in the consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others amounted to $495.8 million and $491.9 million as of September 30, 2023 and December 31, 2022, respectively. The Company has elected to record its mortgage servicing rights using the fair value measurement method. Significant assumptions used in determining the fair value of servicing rights as of September 30, 2023 and December 31, 2022 include: 1) Weighted average discount rate of 8.0% and 8.1%. 2) Weighted average conditional prepayment rate of 6.4% and 6.3%.

The following table presents the Company's mortgage servicing rights as of September 30, 2023 and December 31, 2022 (in thousands):

	September 30, 2023		December 31, 2022
Balance at the beginning of year	$	9,238	$	7,152
Mortgage servicing rights acquired, at fair value		—		—
Additions		250		—
Fair value adjustments		298		2,086
Balance at end of period	$	9,786	$	9,238