Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2021

Transfers And Servicing Of Financial Assets [Abstract]

Summary of Carrying Value Under the Fair Value Measurement Method

For the years ended December 31, 2021, December 31, 2020, and December 31, 2019, 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)	2021			2020			2019
Balance at Beginning of Year	$	958		$	1,126		$	1,290
Changes in Fair Value Due to Payoffs		(158	)		(168	)		(164	)
Balance at End of Year	$	800		$	958		$	1,126

Summary of Carrying Value Under the Amortization Method

For the years ended December 31, 2021, December 31, 2020, and December 31, 2019, 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)	2021			2020			2019
Balance at Beginning of Year	$	18,694		$	23,896		$	23,020
Servicing Rights that Resulted From Asset Transfers		4,921			3,592			4,485
Amortization		(4,227	)		(4,902	)		(3,609	)
Valuation Allowance Recovery (Provision)		2,063			(3,892	)		—
Balance at End of Year	$	21,451		$	18,694		$	23,896
Valuation Allowance:
Balance at Beginning of Year	$	(3,892	)	$	—		$	—
Valuation Allowance Recovery (Provision)		2,063			(3,892	)		—
Balance at End of Year	$	(1,829	)	$	(3,892	)	$	—
Fair Value:
Balance at Beginning of Year	$	18,694		$	25,714		$	29,218
Balance at End of Year	$	21,451		$	18,694		$	25,714

Schedule of Key Data and Assumptions Used in Estimating the Fair Value

The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of December 31, 2021, and December 31, 2020 were as follows:

	December 31,
	2021			2020
Weighted-Average Constant Prepayment Rate 1		10.70	%	14.42		%
Weighted-Average Life (in years)		6.18			4.99
Weighted-Average Note Rate	3.62		%	3.87		%
Weighted-Average Discount Rate 2	7.04		%	5.81		%

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

A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of December 31, 2021, and December 31, 2020, is presented in the following table.

	December 31,
(dollars in thousands)	2021			2020
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change	$	(252	)	$	(203	)
Decrease in fair value from 50 bps adverse change		(498	)		(401	)
Discount Rate
Decrease in fair value from 25 bps adverse change		(223	)		(184	)
Decrease in fair value from 50 bps adverse change		(441	)		(365	)