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Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2019
Mortgage Servicing Rights [Abstract]  
Mortgage servicing rights
The following table explains changes in the servicing asset during the three and nine months ended September 30, 2019 and 2018:
 
Three months ended September 30
 
Nine months ended September 30
(Dollars in thousands)
2019
 
2018
 
2019
 
2018
Beginning balance
$
20,665

 
$
21,657

 
$
21,396

 
$
21,945

Servicing rights originated
1,532

 
1,396

 
3,943

 
4,026

Amortization
(1,581
)
 
(1,420
)
 
(4,595
)
 
(4,338
)
Valuation allowance (increase) decrease
(45
)
 
—

 
(173
)
 
—

Ending balance
$
20,571

 
$
21,633

 
$
20,571

 
$
21,633
Mortgage servicing rights economic assumptions Mortgage servicing rights valuations are performed using a pooling methodology where loans with similar risk characteristics are grouped together and evaluated using discounted cash flows to estimate the present value of future earnings. Key economic assumptions used to value mortgage servicing rights were as follows:
 
September 30, 2019
 
December 31, 2018
Discount rate - conventional fixed loans
8.67
%
 
9.69
%
Discount rate - all loans excluding conventional fixed loans
9.67
%
 
10.69
%
Weighted average constant prepayment rate
14.15
%
 
9.26
%
Weighted average cost to service a loan
$
87.09

 
$
87.52