(

)

Intangible Assets

The Company’s intangible assets consist of core deposit intangibles, goodwill, and mortgage servicing rights. A summary of mortgage servicing activity is as follows:

(Dollars in thousands)	Three Months ended March 31, 2019			Twelve Months ended December 31, 2018			Three Months ended March 31, 2018
Balance, beginning of period	$	1,855			1,724			1,724
Originations		116			682			126
Amortization		(140	)		(551	)		(126	)
Balance, end of period	$	1,831			1,855			1,724
Fair value of mortgage servicing rights	$	3,702			3,901			3,458

All of the loans sold where the Company continues to service the loans are serviced for FNMA under the individual loan sale program. The following is a summary of the risk characteristics of the loans being serviced for FNMA at

March 31, 2019.

			Weighted			Weighted
	Loan		Average			Average
	Principal		Interest			Remaining		Number
(Dollars in thousands)	Balance		Rate			Term (months)		of Loans
Original term 30 year fixed rate	$	304,600		4.19	%		306		2,333
Original term 15 year fixed rate		91,584		3.19			128		951
Adjustable rate		53		4.38			266		2

The gross carrying amount of intangible assets and the associated accumulated amortization at

March 31, 2019

and

2018

is presented in the following table. Amortization expense for intangible assets was

$164,000

and

$151,000

for the

three

month periods ended

March 31, 2019

and

2018,

respectively.

	March 31, 2019
	Gross					Unamortized
	Carrying		Accumulated			Intangible
(Dollars in thousands)	Amount		Amortization			Assets
Mortgage servicing rights	$	4,565		(2,734	)		1,831
Core deposit intangible		574		(343	)		231
Goodwill		802		0			802
Total	$	5,941		(3,077	)		2,864

	March 31, 2018
	Gross					Unamortized
	Carrying		Accumulated			Intangible
(Dollars in thousands)	Amount		Amortization			Assets
Mortgage servicing rights	$	4,282		(2,558	)		1,724
Core deposit intangible		574		(244	)		330
Goodwill		802		0			802
Total	$	5,658		(2,802	)		2,856

The following table indicates the estimated future amortization expense for intangible assets:

(Dollars in thousands)	Mortgage Servicing Rights		Core Deposit Intangible		Total Intangible Assets
Year ending December 31,
2019	$	355		75		430
2020		402		99		501
2021		358		47		405
2022		299		10		309
2023		222		0		222
Thereafter		195		0		195
Total	$	1,831		231		2,062

Projections of amortization are based on existing asset balances and the existing interest rate environment as of

March 31, 2019.

The Company’s actual experience

may

be significantly different depending upon changes in mortgage interest rates and other market conditions.