Loan Servicing (Tables)

3 Months Ended

Mar. 31, 2024

Loan Servicing

Summary of activity related to loan servicing

	Three months ended
	March 31,
(dollars in thousands)	2024		2023
Servicing Assets:
Balance at beginning of year	$	2,052	$	2,643
Additions (1)		260		261
Amortization (2)		(89)		(183)
Balance at end of year		2,223		2,721
Less valuation reserve (3)		(240)		(300)
Balance at end of year, net of valuation reserve	$	1,983	$	2,421
Fair value, beginning of year	$	2,062	$	2,314
Fair value, end of year	$	2,083	$	2,236

(1) Associated income was reported within mortgage banking income, net on the consolidated statements of income.

(2) Associated amortization expense was reported within other noninterest income on the consolidated statements of income.

(3) Associated valuation reserve was reported within mortgage and lending expenses on the consolidated statements of income.

Summary of key economic assumptions

	March 31,			December 31,
(dollars in thousands)	2024			2023
Fair value of servicing rights	$	2,083		$	2,062
Weighted-average remaining term, years		18.8			18.8
Prepayment speeds		6.2	%		6.2	%
Discount rate		11.1	%		11.1	%