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Mortgage Servicing Rights (Tables)
 3 Months Ended
Mar. 31, 2019
Transfers and Servicing of Financial Assets [Abstract]  
Analysis of mortgage servicing rights accounted for under the fair value measurement method
For the three months ended March 31, 2019 and 2018, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:
 
Three Months Ended
March 31,
(dollars in thousands)
2019

 
2018

Balance at Beginning of Period
$
1,290

 
$
1,454

Change in Fair Value:
 

 
 

Due to Payoffs
(22
)
 
(50
)
Total Changes in Fair Value of Mortgage Servicing Rights
(22
)
 
(50
)
Balance at End of Period
$
1,268

 
$
1,404
Analysis of mortgage servicing rights accounted for under the amortization method
For the three months ended March 31, 2019 and 2018, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:
 
Three Months Ended
March 31,
(dollars in thousands)
2019

 
2018

Balance at Beginning of Period
$
23,020

 
$
23,168

Servicing Rights that Resulted From Asset Transfers
551

 
621

Amortization
(690
)
 
(700
)
Balance at End of Period
$
22,881

 
$
23,089

 
 
 
 
Fair Value of Mortgage Servicing Rights Accounted for
 Under the Amortization Method
 

 
 

Beginning of Period
$
29,218

 
$
26,716

End of Period
$
26,814

 
$
28,600
Schedule of key data and assumptions used in estimating the fair value of mortgage servicing rights
The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31,
2019

 
December 31, 2018

Weighted-Average Constant Prepayment Rate 1
8.62
%
 
7.01
%
Weighted-Average Life (in years)
7.08

 
7.89

Weighted-Average Note Rate
4.06
%
 
4.06
%
Weighted-Average Discount Rate 2
8.57
%
 
9.59
%
1 
Represents annualized loan prepayment rate assumption.
2 
Derived from multiple interest rate scenarios that incorporate a spread to a market yield curve and market volatilities.
Schedule of sensitivity analysis of the fair value of mortgage servicing rights
A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of March 31, 2019 and December 31, 2018 is presented in the following table.
(dollars in thousands)
March 31,
2019

 
December 31,
2018

Constant Prepayment Rate
 

 
 

Decrease in fair value from 25 basis points (“bps”) adverse change
$
(322
)
 
$
(361
)
Decrease in fair value from 50 bps adverse change
(640
)
 
(716
)
Discount Rate
 

 
 

Decrease in fair value from 25 bps adverse change
(288
)
 
(325
)
Decrease in fair value from 50 bps adverse change
(569
)
 
(643
)