Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]

Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]

The following table summarizes servicing rights activity for the years ended December 31, 2018 and 2017:

	2018		2017
Beginning balance	$	6,795	$	8,459
Additions		5,971		5,075
Sales		—		(4,751)
Servicing rights amortized		(2,337)		(1,988)
Ending balance	$	10,429	$	6,795

Valuation assumptions used in determining the fair value of servicing rights

Shown in the table below is the fair value of financial instruments measured under a Level 3 unobservable input on a recurring and nonrecurring basis at December 31, 2018:

Level 3		Significant	Range	Weighted
Fair Value Instruments	Valuation Technique	Unobservable Inputs	(Weighted Average)	Average
RECURRING
Interest rate lock commitments with customers	Quoted market prices	Pull-through expectations	80% - 99%	95.2	%
Individual forward sale commitments with investors	Quoted market prices	Pull-through expectations	80% - 99%	95.2	%
NONRECURRING
Impaired loans	Fair value of underlying collateral	Discount applied to the obtained appraisal	0% - 50%	25.0	%
OREO	Fair value of collateral	Discount applied to the obtained appraisal	0% - 75%	71.1	%

Key economic assumptions and the sensitivity of the current fair value for single family mortgage servicing rights

Key economic assumptions and the sensitivity of the current fair value for single family MSR to immediate adverse changes in those assumptions at December 31, 2018 and December 31, 2017 were as follows:

				December 31, 2018			December 31, 2017
Aggregate portfolio principal balance				$	1,186,858		$	775,093
Weighted average rate of note					4.3	%		4.1	%
At December 31, 2018	Base			0.5% Adverse Rate Change			1.0% Adverse Rate Change
Conditional prepayment rate		8.8	%		11.6	%		17.7	%
Fair value MSR	$	14,218		$	12,723		$	10,358
Percentage of MSR		1.2	%		1.1	%		0.9	%
Discount rate		9.6	%		10.1	%		10.6	%
Fair value MSR	$	14,218		$	13,912		$	13,617
Percentage of MSR		1.2	%		1.2	%		1.2	%
At December 31, 2017	Base			0.5% Adverse Rate Change			1.0% Adverse Rate Change
Conditional prepayment rate		10.9	%		17.7	%		24.5	%
Fair value MSR	$	8,602		$	6,811		$	5,614
Percentage of MSR		1.1	%		0.9	%		0.7	%
Discount rate		9.6	%		10.1	%		10.6	%
Fair value MSR	$	8,602		$	8,433		$	8,271
Percentage of MSR		1.1	%		1.1	%		1.1	%

Mortgage servicing rights

Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]

Valuation assumptions used in determining the fair value of servicing rights

The following provides valuation assumptions used in determining the fair value of MSR at the dates indicated:

	At December 31,
	2018		2017
Key assumptions:
Weighted average discount rate	9.5	%	9.5	%
Conditional prepayment rate (“CPR”)	9.4	%	10.9	%
Weighted average life in years	7.7		6.7