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RESIDENTIAL MORTGAGE LOAN SERVICING
 12 Months Ended
Dec. 31, 2019
RESIDENTIAL MORTGAGE LOAN SERVICING  
RESIDENTIAL MORTGAGE LOAN SERVICING

NOTE 7 – RESIDENTIAL MORTGAGE LOAN SERVICING

Residential mortgage loans serviced for others are not reported as assets. The outstanding principal of these loans at December 31, 2019 and 2018 was $1.17 billion and $804.2 million, respectively.

Activity for mortgage loan servicing rights are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31, 

(Dollars in thousands)

    

2019

    

2018

    

2017

Beginning of period

 

$

14,934

 

$

6,843

 

$

 —

Additions

 

 

6,921

 

 

10,253

 

 

7,500

Disposals

 

 

 —

 

 

 —

 

 

 —

Amortization expense

 

 

(3,787)

 

 

(2,162)

 

 

(657)

End of period, carrying value

 

$

18,068

 

$

14,934

 

$

6,843

 

The fair value of servicing rights was $19.0 million and $16.5 million at December 31, 2019 and 2018, respectively. Fair value at December 31, 2019 was determined by using a discount rate of 14%, prepayment speeds of 16%, and a weighted average default rate of 0.98%. Fair value at December 31, 2018 was determined using discount rates ranging from 11% to 14%, prepayment speeds of 15%, and a weighted average default rate of 0.88%.