MORTGAGE BANKING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2017

The principal balances of mortgage loans serviced for others are as follows:

	March 31, 2017		December 31, 2016
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	958,111	$	956,278
FNMA		206,472		208,114

Activity for capitalized mortgage servicing rights, included in other assets, was as follows:

	For the Three Months Ended March 31,
	2017			2016
	(Dollars in thousands)
Balance, beginning of period	$	6,070		$	5,686
Originations		355			509
Amortized to expense		(448	)		(468	)
Balance, end of period		5,977			5,727
Less valuation allowance		(3	)		(474	)
Net balance	$	5,974		$	5,253

Activity in the valuation allowance for mortgage servicing rights was as follows:

	For the Three Months Ended March 31,
	2017			2016
	(Dollars in thousands)
Balance, beginning of period	$	—		$	(39	)
Impairment charges		(3	)		(435	)
Recoveries		—			—
Balance, end of period	$	(3	)	$	(474	)

Key economic assumptions in measuring the value of mortgage servicing rights at March 31, 2017, and December 31, 2016, were as follows:

	March 31, 2017		December 31, 2016
Weighted average prepayment rate	162 PSA		165 PSA
Weighted average life (in years)	6.72		6.64
Weighted average discount rate		9.00%		9.00%