Servicing Assets

9 Months Ended

Sep. 30, 2019

Servicing Asset [Abstract]

Servicing Assets

Note 7. Servicing Assets

Activity for loan servicing assets during the three and nine months ended September 30, 2019 and 2018 is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
		2019			2018			2019			2018
	(Dollars in thousands)
Beginning balance	$	6,996		$	6,994		$	6,987		$	6,771
Additions		552			588			1,553			1,621
Amortized to expense		(589	)		(485	)		(1,581	)		(1,295	)
Ending balance	$	6,959		$	7,097		$	6,959		$	7,097

There was no valuation allowance recorded against the carrying value of the servicing assets as of September 30, 2019 or 2018.

The fair value of the servicing assets was $8.3 million at September 30, 2019, which was determined using discount rates ranging from 1.8% to 10.0% and prepayment speeds ranging from 13.4% to 14.6%, depending on the stratification of the specific assets.

The fair value of the servicing assets was $8.6 million at September 30, 2018, which was determined using discount rates ranging from 4.7% to 11.0% and prepayment speeds ranging from 11.4% to 13.3%, depending on the stratification of the specific assets.