MORTGAGE BANKING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2019

MORTGAGE BANKING ACTIVITIES

Activity for Mortgage Loans Held for Sale, at fair value

	Three Months Ended
	March 31,
(in thousands)	2019		2018
Balance, beginning of period	$	8,971	$	5,761
Origination of mortgage loans held for sale		40,714		29,410
Proceeds from the sale of mortgage loans held for sale		(39,632)		(31,452)
Net gain on sale of mortgage loans held for sale		1,260		777
Balance, end of period	$	11,313	$	4,496

Components of Mortgage Banking Income

	Three Months Ended
	March 31,
(in thousands)	2019		2018
Net gain realized on sale of mortgage loans held for sale	$	875	$	597
Net change in fair value recognized on loans held for sale		(82)		(9)
Net change in fair value recognized on rate lock loan commitments		487		133
Net change in fair value recognized on forward contracts		(20)		56
Net gain recognized		1,260		777
Loan servicing income		601		605
Amortization of mortgage servicing rights		(322)		(362)
Net servicing income recognized		279		243
Total Mortgage Banking income	$	1,539	$	1,020

Activity for capitalized mortgage servicing rights

	Three Months Ended
	March 31,
(in thousands)	2019		2018
Balance, beginning of period	$	4,919	$	5,044
Additions		338		243
Amortized to expense		(322)		(362)
Balance, end of period	$	4,935	$	4,925

Other information relating to mortgage servicing rights

(in thousands)	March 31, 2019			December 31, 2018
Fair value of mortgage servicing rights portfolio	$	8,399		$	9,357
Monthly weighted average prepayment rate of unpaid principal balance*		202	%		160	%
Discount rate		10.00	%		10.00	%
Weighted average default rate		3.10	%		4.25	%
Weighted average life in years		5.69			6.32

* Rates are applied to individual tranches with similar characteristics.

Schedule of notional amounts and fair values of mortgage loans held for sale at fair value and mortgage banking derivatives

	March 31, 2019				December 31, 2018
	Notional				Notional
(in thousands)	Amount		Fair Value		Amount		Fair Value
Included in Mortgage loans held for sale:
Mortgage loans held for sale, at fair value	$	11,100	$	11,313	$	8,676	$	8,971
Included in other assets:
Rate lock loan commitments	$	39,002	$	843	$	14,788	$	356
Included in other liabilities:
Mandatory forward contracts	$	42,061	$	282	$	20,063	$	262