| Summary of changes in the fair value of MSRs and its offsetting hedge |
| | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | (Dollars in thousands) | | June 30, 2026 | | June 30, 2025 | | June 30, 2026 | | June 30, 2025 | | Increase/(decrease) in fair value of MSRs | | $ | 2,756 | | $ | (1,689) | | $ | 9,319 | | $ | (4,770) | | Decay of MSRs | | | (3,222) | | | (2,284) | | | (5,427) | | | (3,312) | | (Loss) gain related to derivatives | | | (2,203) | | | 1,248 | | | (3,929) | | | 3,588 | | Net effect on Consolidated Statements of Income | | $ | (2,669) | | $ | (2,725) | | $ | (37) | | $ | (4,494) | |
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| 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) | | 2026 | | | 2025 | | | 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 | | | 7.6 | years | | | 7.5 | years | | Constant Prepayment rate (CPR) | | | 7.6 | % | | | 7.9 | % | | Estimated impact on fair value of a 10% increase | | $ | (1,179) | | | $ | (1,082) | | | Estimated impact on fair value of a 20% increase | | | (2,423) | | | | (2,101) | | | Estimated impact on fair value of a 10% decrease | | | 1,239 | | | | 1,142 | | | Estimated impact on fair value of a 20% decrease | | | 2,535 | | | | 2,333 | | | Weighted average discount rate | | | 9.5 | % | | | 10.7 | % | | Estimated impact on fair value of a 10% increase | | $ | (3,784) | | | $ | (3,140) | | | Estimated impact on fair value of a 20% increase | | | (7,268) | | | | (6,208) | | | Estimated impact on fair value of a 10% decrease | | | 4,120 | | | | 3,105 | | | Estimated impact on fair value of a 20% decrease | | | 8,620 | | | | 5,982 | | | Effect on fair value due to change in interest rates | | | | | | | | | | 25 basis point increase | | $ | 3,303 | | | $ | 2,505 | | | 50 basis point increase | | | 6,481 | | | | 4,822 | | | 25 basis point decrease | | | (3,300) | | | | (2,599) | | | 50 basis point decrease | | | (6,556) | | | | (5,128) | | |
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