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Mortgage Servicing Rights Mortgage Servicing Rights (Tables)
 3 Months Ended
Mar. 31, 2015
Mortgage Servicing Rights [Abstract]  
Mortgage servicing rights

The activity of the servicing asset for first quarter 2015 and 2014 is presented in the following table:
 
Three months ended March 31
(Dollars in thousands)
2015
 
2014
Balance at January 1
$
16,688

 
$
16

Servicing rights originated
662

 
—

Amortization
(852
)
 
(164
)
Servicing rights acquired in the 1st Financial merger
—

 
148

Valuation allowance provision
$
(62
)
 
$
—

Balance at March 31
$
16,436

 
$
—
Mortgage servicing rights valuation allowance
The following table presents the activity in the servicing asset valuation allowance for first quarter 2015 and 2014:
 
Three months ended March 31
(Dollars in thousands)
2015
 
2014
Balance at January 1
$
850

 
$
—

Valuation allowance provision
62

 
—

Balance at March 31
$
912

 
$
—
Mortgage servicing rights economic assumptions
Valuation of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and evaluated on a discounted earnings basis to determine the present value of future earnings. Key economic assumptions used to value mortgage servicing rights as of March 31, 2015 and December 31, 2014 were as follows:
 
March 31, 2015
 
December 31, 2014
Discount rate - conventional fixed loans
6.95
%
 
7.20
%
Discount rate - all loans excluding conventional fixed loans
8.95
%
 
9.20
%
Weighted average constant prepayment rate
16.07
%
 
14.25
%
Weighted average cost to service loans
$
56.02

 
$
56.02