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Loan Servicing Rights
 12 Months Ended
Dec. 31, 2020
Text Block [Abstract]  
Loan Servicing Rights LOAN SERVICING RIGHTSLoan servicing rights are included in other assets on the balance sheet. At December 31, 2020, loan servicing rights derived from mortgage loans sold with servicing retained totaled $26.7 million, compared to $25.4 million at December 31, 2019.  Loans serviced for others are not reported as assets.  The principal balance of mortgage loans serviced for others was $3.613 billion at December 31, 2020, compared to $3.445 billion at December 31, 2019.  Custodial escrow balances maintained in connection with serviced loans were $16.2 million at December 31, 2020 and $12.7 million at December 31, 2019.
The following table summarizes the carrying values and activity related to loan servicing rights and the related valuation allowance:
Years Ended December 31,
(dollars in thousands)202020192018
Balance at beginning of period$25,399 $24,512 $24,690 
Additions (1)12,810 6,499 4,264 
Amortization(10,085)(5,612)(4,442)
Balance before valuation allowance at end of period28,124 25,399 24,512 
Valuation allowance:
Balance at beginning of period(31)(15)(29)
(Additions)/recoveries(1,376)(16)14 
Balance at end of period(1,407)(31)(15)
Loan servicing rights, net$26,717 $25,368 $24,497 
(1)     Additions in 2018 include loan servicing rights of $0.3 million acquired from Klein in November 2018.
At December 31, 2020, the fair value of servicing rights was $26.8 million, which was determined using a discount rate of 9% and a conditional prepayment rate of 14%.  At December 31, 2019, the fair value of servicing rights was $26.5 million, which was determined using a discount rate of 12% and a conditional prepayment rate of 10%.