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Mortgage Servicing Rights (Tables)
 6 Months Ended
Jun. 30, 2017
Mortgage Servicing Rights [Abstract]  
Mortgage servicing rights
The activity of the servicing asset for the three and six months ended June 30, 2017 and 2016 is presented in the following table:
 
Three months ended June 30
 
Six months ended June 30
(Dollars in thousands)
2017
 
2016
 
2017
 
2016
Beginning balance
$
20,771

 
$
17,186

 
$
20,415

 
$
19,351

Servicing rights originated
1,123

 
1,351

 
2,825

 
2,328

Amortization
(1,370
)
 
(1,333
)
 
(2,720
)
 
(2,601
)
Valuation allowance (provision) reversal
—

 
(380
)
 
4

 
(2,254
)
Ending balance
$
20,524

 
$
16,824

 
$
20,524

 
$
16,824
Mortgage servicing rights valuation allowance
The following table presents the activity in the servicing asset valuation allowance for the three and six months ended June 30, 2017 and 2016:
 
Three months ended June 30
 
Six months ended June 30
(Dollars in thousands)
2017
 
2016
 
2017
 
2016
Beginning balance
$
—

 
$
1,969

 
$
4

 
$
95

Valuation allowance provision (reversal)
—

 
380

 
(4
)
 
2,254

Ending balance
$
—

 
$
2,349

 
$
—

 
$
2,349
Mortgage servicing rights economic assumptions
Valuation of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and evaluated on a discounted earnings basis to determine the present value of future earnings. Key economic assumptions used to value mortgage servicing rights as of June 30, 2017 and December 31, 2016 were as follows:
 
June 30, 2017
 
December 31, 2016
Discount rate - conventional fixed loans
9.30
%
 
9.45
%
Discount rate - all loans excluding conventional fixed loans
10.30
%
 
10.45
%
Weighted average constant prepayment rate
10.41
%
 
10.42
%
Weighted average cost to service a loan
$
64.01

 
$
62.75