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Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2017
Mortgage Servicing Rights [Abstract]  
Mortgage servicing rights
The activity of the servicing asset for the three and nine months ended September 30, 2017 and 2016 is presented in the following table:
 
Three months ended September 30
 
Nine months ended September 30
(Dollars in thousands)
2017
 
2016
 
2017
 
2016
Beginning balance
$
20,524

 
$
16,824

 
$
20,415

 
$
19,351

Servicing rights originated
2,896

 
1,923

 
5,721

 
4,251

Amortization
(1,417
)
 
(1,377
)
 
(4,137
)
 
(3,978
)
Valuation allowance (provision) reversal
—

 
360

 
4

 
(1,894
)
Ending balance
$
22,003

 
$
17,730

 
$
22,003

 
$
17,730
Mortgage servicing rights valuation allowance
The following table presents the activity in the servicing asset valuation allowance for the three and nine months ended September 30, 2017 and 2016:
 
Three months ended September 30
 
Nine months ended September 30
(Dollars in thousands)
2017
 
2016
 
2017
 
2016
Beginning balance
$
—

 
$
2,349

 
$
4

 
$
95

Valuation allowance provision (reversal)
—

 
(360
)
 
(4
)
 
1,894

Ending balance
$
—

 
$
1,989

 
$
—

 
$
1,989
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 September 30, 2017 and December 31, 2016 were as follows:
 
September 30, 2017
 
December 31, 2016
Discount rate - conventional fixed loans
9.33
%
 
9.45
%
Discount rate - all loans excluding conventional fixed loans
10.33
%
 
10.45
%
Weighted average constant prepayment rate
11.39
%
 
10.42
%
Weighted average cost to service a loan
$
64.11

 
$
62.75