Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Mortgage Servicing Rights

At September 30, 2022, the Company was servicing approximately $247.6 million of loans sold to the secondary market compared to $270.0 million at December 31, 2021, and $277.1 million at September 30, 2021. Mortgage loan servicing fees, reported in real estate servicing fees, net, earned on loans sold were $0.2 million and $0.7 million for the three and nine months ended September 30, 2022, respectively, compared to $0.2 million and $0.6 million for the three and nine months ended September 30, 2021, respectively.

The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated.


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	2,730	$	2,775	$	2,659	$	2,445
Originated mortgage servicing rights	21		66		61		359
Changes in fair value:
Due to changes in model inputs and assumptions (1)	228		(13)		418		269
Other changes in fair value (2)	(73)		(110)		(232)		(355)
Total changes in fair value	155		(123)		186		(86)
Balance at end of period	$	2,906	$	2,718	$	2,906	$	2,718

(1)The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, 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, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time.

The following key data and assumptions were used in estimating the fair value of the Company’s MSRs as of September 30, 2022 and 2021, respectively:


	Nine Months Ended September 30,
	2022		2021
Weighted average constant prepayment rate	7.30	%	11.41	%
Weighted average note rate	3.42	%	3.38	%
Weighted average discount rate	10.00	%	8.00	%
Weighted average expected life (in years)	6.98		6.03