Loan Servicing

12 Months Ended

Dec. 31, 2020

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

Loan Servicing

Loan Servicing

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

The aggregate fair value of capitalized mortgage servicing rights was approximately $12.4 million, $14.4 million and $13.9 million at December 31, 2020, 2019 and 2018, compared to the carrying values of $12.5 million, $14.3 million and $12.3 million, respectively. The fair value of capitalized mortgage servicing rights was approximately $12.2 million on January 1, 2018. 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. Mortgage servicing rights are included in other assets on the balance sheets as of December 31, 2020 and 2019.

	December 31 2020		December 31 2019		December 31 2018
Mortgage servicing rights
Balances, January 1	$	15,046	$	12,876	$	12,189
Servicing rights capitalized	5,530		3,547		1,883
Amortization of servicing rights	(2,932)		(1,377)		(1,196)
Balances, December 31	17,644		15,046		12,876
Impairment allowance
Balances, January 1	(719)		(527)		(587)
Additions	(5,106)		(234)		(78)
Reductions	653		42		138
Balances, December 31	(5,172)		(719)		(527)
Mortgage servicing rights, net	$	12,472	$	14,327	$	12,349

During 2020, 2019 and 2018 the Bank recorded additional impairment of approximately $4.5 million, $192,000 and $60,000, respectively.