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Mortgage Loan Servicing, Origination, and Loans Held for Sale (Tables)
6 Months Ended
Jun. 30, 2024
Mortgage Loan Servicing, Origination, and Loans Held for Sale  
Summary of changes in the fair value of MSRs and its offsetting hedge

Three Months Ended

    

Six Months Ended

(Dollars in thousands)

    

June 30, 2024

    

June 30, 2023

    

June 30, 2024

    

June 30, 2023

 

Increase in fair value of MSRs

$

830

$

1,977

$

3,214

$

688

Decay of MSRs

 

(2,566)

 

(2,385)

 

(4,007)

 

(3,793)

Loss related to derivatives

(1,424)

(2,264)

(4,004)

(2,119)

Net effect on Consolidated Statements of Income

$

(3,160)

$

(2,672)

$

(4,797)

$

(5,224)

Schedule of characteristics and sensitivity analysis of the MSR

The characteristics and sensitivity analysis of the MSRs are included in the following table:

June 30,

December 31,

(Dollars in thousands)

    

2024

   

    

2023

   

   

Composition of residential loans serviced for others

Fixed-rate mortgage loans

100.0

%  

100.0

%  

Adjustable-rate mortgage loans

%  

%  

Total

100.0

%  

100.0

%  

Weighted average life

8.02

years

8.03

years  

Constant Prepayment rate (CPR)

7.0

%  

7.0

%  

Estimated impact on fair value of a 10% increase

$

(504)

$

(522)

Estimated impact on fair value of a 20% increase

(1,022)

(1,014)

Estimated impact on fair value of a 10% decrease

504

551

Estimated impact on fair value of a 20% decrease

1,018

1,128

Weighted average discount rate

10.9

%  

10.7

%  

Estimated impact on fair value of a 10% increase

$

(3,081)

$

(3,270)

Estimated impact on fair value of a 20% increase

(6,173)

(6,458)

Estimated impact on fair value of a 10% decrease

2,938

3,242

Estimated impact on fair value of a 20% decrease

5,550

6,283

Effect on fair value due to change in interest rates

25 basis point increase

$

1,621

$

1,647

50 basis point increase

3,078

3,189

25 basis point decrease

(1,758)

(1,723)

50 basis point decrease

(3,623)

(3,501)