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Mortgage Servicing Rights (Tables)
 3 Months Ended
Mar. 31, 2021
Mortgage Servicing Rights [Abstract]  
Mortgage servicing rights
The following table presents changes in the servicing asset during the three months ended March 31, 2021 and 2020:
Three months ended March 31
(Dollars in thousands)20212020
Beginning balance$18,426 $22,963 
Servicing rights originated3,444 1,583 
Amortization(2,248)(1,823)
Valuation allowance decrease (increase)3,123 (2,967)
Ending balance$22,745 $19,756 
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, 2021 and 2020:
Three months ended March 31
(Dollars in thousands)20212020
Beginning balance$4,365 $222 
Valuation allowance (decrease) increase(3,123)2,967 
Ending balance$1,242 $3,189 
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, 2021December 31, 2020
Discount rate - conventional fixed loans8.74 %7.92 %
Discount rate - all loans excluding conventional fixed loans9.74 %8.92 %
Weighted average constant prepayment rate16.54 %20.62 %
Weighted average cost to service a loan$87.58 $87.58