MORTGAGE BANKING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2017

Mortgage Banking [Abstract]

Principal Balance of Mortgage Servicing Rights

Mortgage loans serviced for others are not reported as assets. The principal balance of these loans at year-end are as follows:

	2017		2016
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	1,003,441	$	956,278
FNMA		242,444		208,114
Private investor		23,404		-

Capitalized Mortgage Servicing Rights

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

	For the Year Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Balance, beginning of period	$	6,070		$	5,686		$	5,535
Originations		2,555			2,478			1,951
Amortized to expense		(1,944	)		(2,094	)		(1,800	)
Balance, end of period		6,681			6,070			5,686
Less valuation allowance		(9	)		—			(39	)
Net balance	$	6,672		$	6,070		$	5,647

Valuation Allowance for Mortgage Servicing Rights

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

	For the Year Ended December 31,
	2017			2016			2015
	(Dollars in thousands)
Balance, beginning of period	$	—		$	(39	)	$	(58	)
Impairment charges		(15	)		(727	)		(299	)
Recoveries		6			766			318
Balance, end of period	$	(9	)	$	—		$	(39	)

Key Economic Assumptions in Measuring Value of Mortgage Servicing Rights

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

	2017			2016
Weighted average prepayment rate	181 PSA			165 PSA
Weighted average life (in years)	6.35			6.64
Weighted average discount rate		9	%		9	%