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Intangible Assets
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Mortgage Servicing Rights
On January 31, 2024 the Company sold the mortgage servicing rights portfolio and all serviced loans transferred to the new servicer on April 30, 2024. At March 31, 2024, the balance of the servicing portfolio for loans sold to the secondary market was approximately $215.2 million compared to $220.7 million at December 31, 2023, and $235.2 million at March 31, 2023. Mortgage loan servicing fees, reported in real estate servicing fees, net, earned on loans sold were $0.1 million for the three months ended March 31, 2024 compared to $0.2 million for the three months ended March 31, 2023.
The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated.
Three Months Ended March 31,
(in thousands)20242023
Balance at beginning of period$1,738$2,899
Originated mortgage servicing rights—6
Sale proceeds(1,552)— 
Changes in fair value:
Due to changes in model inputs and assumptions (1)—93 
Other changes in fair value (2)(59)(64)
Total changes in fair value(59)29
Balance at end of period$127$2,934
(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.
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 March 31, 2023:
Three Months Ended March 31,
20242023
Weighted average constant prepayment rate6.51 %6.51 %
Weighted average note rate3.49 %3.44 %
Weighted average discount rate11.00 %11.00 %
Weighted average expected life (in years)7.147.18