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Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Mortgage Servicing Rights
At December 31, 2023 the Company was servicing $220.7 million of loans sold to the secondary market compared to $240.5 million and $270.0 million at December 31, 2022 and 2021, respectively. Mortgage loan servicing fees, reported in real estate servicing fees, net, earned on loans sold and serviced for others were $0.6 million, $0.8 million, and $0.8 million, for the years ended December 31, 2023, 2022, and 2021, respectively.
The table below presents changes in mortgage servicing rights for the years ended December 31, 2023, 2022, and 2021.
(in thousands)202320222021
Balance at beginning of year$2,899 $2,659 $2,445 
Originated mortgage servicing rights39 64 400 
Changes in fair value:
Due to changes in model inputs and assumptions (1)(939)479 258 
Other changes in fair value (2)(261)(303)(444)
Total changes in fair value(1,200)176 (186)
Balance at end of year$1,738 $2,899 $2,659 
(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. The fourth quarter of 2023 includes a $1.1 million MSR valuation write-down upon accepting a letter of intent to sell the Company's servicing portfolio during the first quarter of 2024.
(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. In the fourth quarter of 2023, the Company recognized a $1.1 million mortgage MSR valuation write-down upon accepting a letter of intent to sell the Company's servicing portfolio which closed during the first quarter of 2024. Prior to the fourth quarter of 2023, valuation assumptions were reviewed with a third party specialist. The following key data and assumptions were used in estimating the fair value of the Company's MSRs as of December 31, 2023 and 2022:
20232022
Weighted average constant prepayment rate6.55 %6.61 %
Weighted average note rate3.52 %3.43 %
Weighted average discount rate11.00 %11.25 %
Weighted average expected life (in years)7.17.2