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Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2018
Transfers and Servicing [Abstract]  
Servicing Asset at Amortized Cost
The following summarizes the Corporation’s activity related to MSRs for the years ended December 31:
(dollars in thousands)
2018
 
2017
 
2016
Balance, January 1
$
5,861

 
$
5,582

 
$
5,142

Additions
16

 
1,025

 
1,321

Amortization
(803
)
 
(791
)
 
(750
)
(Impairment) / Recovery
(27
)
 
45

 
(131
)
Balance, December 31
$
5,047

 
$
5,861

 
$
5,582

Fair value
$
6,277

 
$
6,397

 
$
6,154

Residential mortgage loans serviced for others
$
578,788

 
$
650,703

 
$
631,889
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets
The following summarizes the Corporation’s activity related to changes in the impairment valuation allowance of MSRs for the years ended December 31:
(dollars in thousands)
2018
 
2017
 
2016
Balance, January 1
$
(1,760
)
 
$
(1,805
)
 
$
(1,674
)
Impairment
(103
)
 
(52
)
 
(715
)
Recovery
76

 
97

 
584

Balance, December 31
$
(1,787
)
 
$
(1,760
)
 
$
(1,805
)
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets
As of December 31, 2018 and 2017, key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10 and 20 percent adverse changes in those assumptions are as follows:
 
December 31,
(dollars in thousands)
2018
 
2017
Fair value amount of MSRs
$
6,277

 
$
6,397

Weighted average life (in years)
6.7

 
6.1

Prepayment speeds (constant prepayment rate)(1)
9.1
%
 
10.3
%
Impact on fair value:
 
 
 
10% adverse change
$
(124
)
 
$
(194
)
20% adverse change
$
(257
)
 
$
(394
)
Discount rate
9.55
%
 
9.55
%
Impact on fair value:
 
 
 
10% adverse change
$
(234
)
 
$
(225
)
20% adverse change
$
(451
)
 
$
(434
)
(1) Represents the weighted average prepayment rate for the life of the MSR asset.