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Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2020
Mortgage Servicing Rights [Abstract]  
Mortgage servicing rights
The following table presents changes in the servicing asset during the three and nine months ended September 30, 2020 and 2019:
Three months ended September 30Nine months ended September 30
(Dollars in thousands)2020201920202019
Beginning balance$18,664 $20,665 $22,963 $21,396 
Servicing rights originated1,994 1,532 5,673 3,943 
Amortization(2,208)(1,581)(6,150)(4,595)
Valuation allowance (increase) decrease(305)(45)(4,341)(173)
Ending balance$18,145 $20,571 $18,145 $20,571 
Schedule of Activity in Servicing Asset Valuation Allowance
The following table presents the activity in the servicing asset valuation allowance for the three and nine months ended September 30, 2020 and 2019:
Three months ended September 30Nine months ended September 30
(Dollars in thousands)2020201920202019
Beginning balance$4,258 $128 $222 $— 
Valuation allowance increase (decrease)305 45 4,341 173 
Ending balance$4,563 $173 $4,563 $173 
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, 2020December 31, 2019
Discount rate - conventional fixed loans7.68 %8.92 %
Discount rate - all loans excluding conventional fixed loans8.68 %9.92 %
Weighted average constant prepayment rate20.80 %13.72 %
Weighted average cost to service a loan$87.30 $87.09