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Mortgage Servicing Rights | 6 Months Ended
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Jun. 30, 2019
Mortgage Servicing Rights | 5. Mortgage Servicing Rights ​ Mortgage servicing activities include collecting principal, interest, tax, and insurance payments from borrowers while accounting for and remitting payments to investors, taxing authorities, and insurance companies. The Company also monitors delinquencies and administers foreclosure proceedings. ​ Mortgage loan servicing income is recorded in noninterest income as a part of other service charges and fees and amortization of the servicing assets is recorded in noninterest income as part of other income. The unpaid principal amount of residential real estate loans serviced for others was $2.5 billion and $2.7 billion as of June 30, 2019 and December 31, 2018, respectively. Servicing fees include contractually specified fees, late charges, and ancillary fees, and were $1.6 million and $1.9 million for the three months ended June 30, 2019 and 2018, respectively, and $3.2 million and $3.6 million for the six months ended June 30, 2019 and 2018, respectively. ​ Amortization of mortgage servicing rights (“MSRs”) was $0.8 million and $1.0 million for the three months ended June 30, 2019 and 2018, respectively, and $1.6 million and $2.0 million for the six months ended June 30, 2019 and 2018, respectively. The estimated future amortization expenses for MSRs over the next five years are as follows: ​
​ | ​ | ​ | ​
​ | ​ | Estimated
(dollars in thousands) |  | Amortization
Under one year | ​ | $ | 2,254
One to two years | ​ | ​ | 1,950
Two to three years | ​ | ​ | 1,687
Three to four years | ​ | ​ | 1,463
Four to five years | ​ | ​ | 1,269
​ The details of the Company’s MSRs are presented below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
(dollars in thousands) |  | 2019 |  | 2018
Gross carrying amount | ​ | $ | 63,366 | ​ | $ | 63,342
Less: accumulated amortization | ​ | ​ | 48,793 | ​ | ​ | 47,187
Net carrying value | ​ | $ | 14,573 | ​ | $ | 16,155
​ The following table presents changes in amortized MSRs for the three and six months ended June 30, 2019 and 2018: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended June 30, | ​ | Six Months Ended June 30,
(dollars in thousands) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Balance at beginning of period | ​ | $ | 15,399 | ​ | $ | 18,659 | ​ | $ | 16,155 | ​ | $ | 13,196
Originations | ​ | ​ | 16 | ​ | ​ | 21 | ​ | ​ | 24 | ​ | ​ | 28
Purchases | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 6,444
Amortization | ​ | ​ | (842) | ​ | ​ | (1,020) | ​ | ​ | (1,606) | ​ | ​ | (2,008)
Balance at end of period | ​ | $ | 14,573 | ​ | $ | 17,660 | ​ | $ | 14,573 | ​ | $ | 17,660
Fair value of amortized MSRs at beginning of period | ​ | $ | 26,383 | ​ | $ | 29,048 | ​ | $ | 27,662 | ​ | $ | 21,697
Fair value of amortized MSRs at end of period | ​ | $ | 23,398 | ​ | $ | 28,344 | ​ | $ | 23,398 | ​ | $ | 28,344
​ MSRs are evaluated for impairment if events and circumstances indicate a possible impairment. No impairment of MSRs was recorded for the six months ended June 30, 2019 and 2018. ​ The quantitative assumptions used in determining the lower of cost or fair value of the Company’s MSRs as of June 30, 2019 and December 31, 2018 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2019 | ​ | December 31, 2018 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted | ​ | ​ | ​ | ​ | ​ | ​ | Weighted | ​
​ |  | Range | ​ | Average | ​ | Range | ​ | Average | ​
Conditional prepayment rate | ​ | 9.57 | % | - | 22.35 | % | 10.01 | % | 7.86 | % | - | 19.26 | % | 8.31 | %
Life in years (of the MSR) | ​ | 2.16 | ​ | - | 6.85 | ​ | 6.44 | ​ | 3.43 | ​ | - | 7.68 | ​ | 7.19 | ​
Weighted-average coupon rate | ​ | 3.96 | % | - | 7.38 | % | 4.02 | % | 3.97 | % | - | 6.70 | % | 4.02 | %
Discount rate | ​ | 10.00 | % | - | 10.01 | % | 10.00 | % | 10.00 | % | - | 10.02 | % | 10.00 | %
​ The sensitivities surrounding MSRs are expected to have an immaterial impact on fair value.

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- Definition The entire disclosure for mortgage servicing rights. + References No definition available. + Details
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