Loan Servicing

3 Months Ended

Mar. 31, 2022

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 $1.6 billion and $1.5 billion at March 31, 2022 and December 31, 2021.

The aggregate fair value of capitalized mortgage servicing rights was approximately $18.6 million and $15.2 million at March 31, 2022 and December 31, 2021, compared to the carrying values of $18.6 million and $15.2 million at March 31, 2022 and December 31, 2021, 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.

	Three Months Ended
	March 31,		March 31,
	2022		2021
Mortgage servicing rights
Balance, beginning of period	$	17,780	$	17,644
Servicing rights capitalized	1,562		1,130
Amortization of servicing rights	(750)		(962)
Balance, end of period	18,592		17,812
Impairment allowance
Balance, beginning of period	(2,594)		(5,172)
Additions	—		—
Reductions	2,594		235
Balance, end of period	—		(4,937)
Mortgage servicing rights, net	$	18,592	$	12,875

The Bank reduced impairment by approximately $2.6 million for the three months ended March 31, 2022 and $235,000 for the three months ended March 31, 2021.