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Mortgage Servicing Assets (Tables)
12 Months Ended
Dec. 31, 2017
Mortgage Banking [Abstract]  
Summary of Mortgage Servicing Rights

A summary of mortgage servicing rights follows:

 

  

 

2017

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

Beginning of year mortgage servicing rights:

 

$

2,271

 

 

$

2,040

 

 

$

2,072

 

Amounts capitalized

 

 

587

 

 

 

982

 

 

 

657

 

Amortization

 

 

(733

)

 

 

(751

)

 

 

(689

)

Impairment

 

 

 

 

 

 

 

 

 

End of year

 

$

2,125

 

 

$

2,271

 

 

$

2,040

 

 

Estimated Amortization Expense

Amortization expense is estimated as follows:

 

Year ending December 31,

 

(dollars in thousands)

 

2018

 

$

501

 

2019

 

 

434

 

2020

 

 

367

 

2021

 

 

300

 

2022

 

 

232

 

Thereafter

 

 

291

 

Total

 

$

2,125

 

 

Key Assumptions Used to Value Mortgage Servicing Rights

The key assumptions used to value mortgage servicing rights were as follows:

 

  

 

2017

 

 

2016

 

Weighted average remaining life

 

264 months

 

 

262 months

 

Weighted average discount rate

 

 

13

%

 

 

14

%

Weighted average coupon

 

 

3.94

%

 

 

3.89

%

Weighted average prepayment speed

 

 

150

%

 

 

145

%