XML 29 R15.htm IDEA: XBRL DOCUMENT v3.22.0.1
Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Mortgage Servicing Rights
At December 31, 2021 the Company was servicing $270.0 million of loans sold to the secondary market compared to $292.7 million and $271.4 million at December 31, 2020 and 2019, respectively. Mortgage loan servicing fees, reported in real estate servicing fees, net, earned on loans sold and serviced for others were $0.8 million, $0.9 million, and $0.8 million, for the years ended December 31, 2021, 2020, and 2019, respectively.
The table below presents changes in mortgage servicing rights (MSRs) for the years ended December 31, 2021, 2020, and 2019.
(in thousands)202120202019
Balance at beginning of period$2,445 $2,482 $2,931 
Originated mortgage servicing rights400 866 290 
Changes in fair value:
Due to changes in model inputs and assumptions (1)258 (422)(434)
Other changes in fair value (2)(444)(481)(305)
Total changes in fair value(186)(903)(739)
Balance at end of period$2,659 $2,445 $2,482 
(1)The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates.
(2)Other changes in fair value reflect changes due to customer payments and passage of time.
Total changes in fair value are reported in real estate servicing fees, net, reported in non-interest income in the Company's consolidated statements of income.
The following key data and assumptions were used in estimating the fair value of the Company's mortgage servicing rights as of December 31, 2021 and 2020:
20212020
Weighted average constant prepayment rate10.65 %15.74 %
Weighted average note rate3.37 %3.55 %
Weighted average discount rate8.00 %7.75 %
Weighted average expected life (in years)6.14.8