MORTGAGE BANKING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2019

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

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	1,018,365	$	1,016,097
FNMA		395,438		347,294
Private investor		11,641		15,049

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance, beginning of period	$	8,041		$	6,843		$	7,704		$	6,681
Originations		703			641			1,486			1,303
Amortized to expense		(553	)		(542	)		(999	)		(1,042	)
Balance, end of period		8,191			6,942			8,191			6,942
Less valuation allowance		(1,565	)		(20	)		(1,565	)		(20	)
Net balance	$	6,626		$	6,922		$	6,626		$	6,922

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(Dollars in thousands)
Balance, beginning of period	$	(569	)	$	—		$	(70	)	$	(9	)
Impairment charges		(996	)		(20	)		(1,495	)		(20	)
Recoveries		—			—			—			9
Balance, end of period	$	(1,565	)	$	(20	)	$	(1,565	)	$	(20	)

Key economic assumptions in measuring the value of mortgage servicing rights at June 30, 2019, and December 31, 2018, were as follows:

	June 30, 2019	December 31, 2018
Weighted average prepayment rate	266 PSA	145 PSA
Weighted average life (in years)	5.27	7.26
Weighted average discount rate	11.00%	11.00%