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Mortgage Servicing Rights (Tables)
 3 Months Ended
Mar. 31, 2020
Mortgage Servicing Rights [Abstract]  
Mortgage servicing rights
The following table explains changes in the servicing asset during the three months ended March 31, 2020 and 2019:
 
Three months ended March 31
(Dollars in thousands)
2020
 
2019
Beginning balance
$
22,963

 
$
21,396

Servicing rights originated
1,583

 
859

Amortization
(1,823
)
 
(1,447
)
Valuation allowance increase
(2,967
)
 
(161
)
Ending balance
$
19,756

 
$
20,647
Schedule of Activity in Servicing Asset Valuation Allowance
The following table presents the activity in the servicing asset valuation allowance for the three months ended March 31, 2020 and 2019:
 
Three months ended March 31
(Dollars in thousands)
2020
 
2019
Beginning balance
$
222

 
$
—

Valuation allowance increase
2,967

 
161

Ending balance
$
3,189

 
$
161
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:
 
March 31, 2020
 
December 31, 2019
Discount rate - conventional fixed loans
7.67
%
 
8.92
%
Discount rate - all loans excluding conventional fixed loans
8.67
%
 
9.92
%
Weighted average constant prepayment rate
19.38
%
 
13.72
%
Weighted average cost to service a loan
$
87.30

 
$
87.09