XML 29 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2019
Transfers and Servicing of Financial Assets [Abstract]  
Analysis of mortgage servicing rights accounted for under the fair value measurement method
For the years ended December 31, 2019, December 31, 2018, and December 31, 2017, the change in the fair value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:
(dollars in thousands)
2019

 
2018

 
2017

Balance at Beginning of Year
$
1,290

 
$
1,454

 
$
1,655

Changes in Fair Value:
 
 
 
 
 
Due to Payoffs
(164
)
 
(164
)
 
(201
)
Total Changes in Fair Value of Mortgage Servicing Rights
(164
)
 
(164
)
 
(201
)
Balance at End of Year
$
1,126

 
$
1,290

 
$
1,454
Analysis of mortgage servicing rights accounted for under the amortization method
For the years ended December 31, 2019, December 31, 2018, and December 31, 2017, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:
(dollars in thousands)
2019

 
2018

 
2017

Balance at Beginning of Year
$
23,020

 
$
23,168

 
$
22,008

Servicing Rights that Resulted From Asset Transfers
4,485

 
2,470

 
3,976

Amortization
(3,609
)
 
(2,618
)
 
(2,816
)
Balance at End of Year
$
23,896

 
$
23,020

 
$
23,168

 
 
 
 
 
 
Fair Value:
 
 
 
 
 
Balance at Beginning of Year
$
29,218

 
$
26,716

 
$
25,148

Balance at End of Year
$
25,714

 
$
29,218

 
$
26,716
Schedule of key data and assumptions used in estimating the fair value of mortgage servicing rights
The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of December 31, 2019, and December 31, 2018 were as follows:
 
December 31,
 
2019
 
2018
 
Weighted-Average Constant Prepayment Rate 1
10.76
%
7.01
%
Weighted-Average Life (in years)
6.20
 
7.89
 
Weighted-Average Note Rate
3.99
%
4.06
%
Weighted-Average Discount Rate 2
7.33
%
9.59
%
1 
Represents annualized loan prepayment rate assumption.
2 
Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.
Schedule of sensitivity analysis of the fair value of mortgage servicing rights
A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of December 31, 2019, and December 31, 2018, is presented in the following table.
 
December 31,
(dollars in thousands)
2019

 
2018

Constant Prepayment Rate
 
 
 
Decrease in fair value from 25 basis points (“bps”) adverse change
$
(296
)
 
$
(361
)
Decrease in fair value from 50 bps adverse change
(586
)
 
(716
)
Discount Rate
 
 
 
Decrease in fair value from 25 bps adverse change
(264
)
 
(325
)
Decrease in fair value from 50 bps adverse change
(522
)
 
(643
)