Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2022

Transfers And Servicing Of Financial Assets [Abstract]

Summary of Carrying Value Under the Fair Value Measurement Method

For the three months ended March 31, 2022, and March 31, 2021, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:

	Three Months Ended March 31,
(dollars in thousands)	2022			2021
Balance at Beginning of Period	$	800		$	958
Change in Fair Value Due to Payoffs		(19	)		(39	)
Balance at End of Period	$	781		$	919

Summary of Carrying Value Under the Amortization Method

For the three months ended March 31, 2022, and March 31, 2021, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:

	Three Months Ended March 31,
(dollars in thousands)	2022			2021
Balance at Beginning of Period	$	21,451		$	18,694
Servicing Rights that Resulted From Asset Transfers		751			1,680
Amortization		(844	)		(1,163	)
Valuation Allowance Recovery (Provision)		1,829			2,190
Balance at End of Period	$	23,187		$	21,401
Valuation Allowance:
Balance at Beginning of Period	$	(1,829	)	$	(3,892	)
Valuation Allowance Recovery (Provision)		1,829			2,190
Balance at End of Period	$	—		$	(1,702	)
Fair Value of Mortgage Servicing Rights Accounted for    Under the Amortization Method
Beginning of Period	$	21,451		$	18,694
End of Period	$	26,088		$	21,401

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 March 31, 2022, and December 31, 2021, were as follows:

	March 31, 2022			December 31, 2021
Weighted-Average Constant Prepayment Rate 1		6.64	%		10.70	%
Weighted-Average Life (in years)		8.07			6.18
Weighted-Average Note Rate		3.59	%		3.62	%
Weighted-Average Discount Rate 2		9.66	%		7.04	%

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 March 31, 2022, and December 31, 2021, is presented in the following table.

(dollars in thousands)	March 31, 2022			December 31, 2021
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change	$	(327	)	$	(252	)
Decrease in fair value from 50 bps adverse change		(648	)		(498	)
Discount Rate
Decrease in fair value from 25 bps adverse change		(288	)		(223	)
Decrease in fair value from 50 bps adverse change		(570	)		(441	)