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Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2021
Mortgage Servicing Rights [Abstract]  
Mortgage servicing rights
The following table presents changes in the servicing asset during the three and nine months ended September 30, 2021 and 2020:
Three months ended September 30Nine months ended September 30
(Dollars in thousands)2021202020212020
Beginning balance$21,985 $18,664 $18,426 $22,963 
Servicing rights originated1,891 1,994 8,436 5,673 
Amortization(2,180)(2,208)(6,505)(6,150)
Valuation allowance (increase) decrease— (305)1,339 (4,341)
Ending balance$21,696 $18,145 $21,696 $18,145 
Schedule of Activity in Servicing Asset Valuation Allowance
The following table presents the activity in the servicing asset valuation allowance for the three and nine months ended September 30, 2021 and 2020:
Three months ended September 30Nine months ended September 30
(Dollars in thousands)2021202020212020
Beginning balance$3,026 $4,258 $4,365 $222 
Valuation allowance increase (decrease)— 305 (1,339)4,341 
Ending balance$3,026 $4,563 $3,026 $4,563 
Mortgage servicing rights economic assumptions
Mortgage servicing rights valuations are performed using a pooling methodology where loans with similar risk characteristics are grouped together and evaluated using discounted cash flows to estimate the present value of future earnings. Key economic assumptions used to value mortgage servicing rights were as follows:
September 30, 2021December 31, 2020
Discount rate - conventional fixed loans8.49 %7.92 %
Discount rate - all loans excluding conventional fixed loans9.49 %8.92 %
Weighted average constant prepayment rate17.32 %20.62 %
Weighted average cost to service a loan$87.58 $87.58