Loan Servicing

6 Months Ended

Jun. 30, 2020

Payments for (Proceeds from) Mortgage Servicing Rights [Abstract]

Loan Servicing

Loan Servicing

Loans serviced for others are not included in the accompanying condensed consolidated balance sheets. The unpaid principal balances of loans serviced for others totaled approximately $1.5 billiom and $1.4 billion at June 30, 2020 and December 31, 2019.

The aggregate fair value of capitalized mortgage servicing rights was approximately $12.1 million and $14.4 million at June 30, 2020 and December 31, 2019, compared to the carrying values of $12.4 million and $14.3 million at June 30, 2020 and December 31, 2019, respectively. Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of measuring impairment, risk characteristics including product type, investor type and interest rates, were used to stratify the originated mortgage servicing rights.

	June 30,		December 31,
	2020		2019
Mortgage servicing rights
Balance, beginning of period	$	15,046	$	12,876
Servicing rights capitalized	2,573		3,547
Amortization of servicing rights	(1,310)		(1,377)
Balance, end of period	16,309		15,046
Impairment allowance
Balance, beginning of period	(719)		(527)
Additions	(3,201)		(234)
Reductions	—		42
Balance, end of period	(3,920)		(719)
Mortgage servicing rights, net	$	12,389	$	14,327

The Bank recorded additional impairment of approximately $3.2 million and $192,000 for the six months ended June 30, 2020 and December 31, 2019, respectively.