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Mortgage Banking and Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2019
Mortgage Banking and Servicing Rights [Abstract]  
Components of Mortgage Banking Income The following table presents the components of mortgage banking income:

(in thousands)
Year Ended December 31
  
2019
    
2018
    
2017
  
Net gain on sale of mortgage loans held for sale
  
$
1,746
    
$
1,288
    
$
1,232
  
Net loan servicing income (expense)
                        
Servicing fees
    
1,297
      
1,275
      
1,255
  
Late fees
    
72
      
73
      
84
  
Ancillary fees
    
190
      
282
      
239
  
Fair value adjustments
    
(975
)
    
(343
)
    
(361
)
Net loan servicing income
    
584
      
1,287
      
1,217
  
Mortgage banking income
  
$
2,330
    
$
2,575
    
$
2,449
  
Activity for Capitalized Mortgage Servicing Rights Using Fair Value Method Activity for capitalized mortgage servicing rights using the fair value method is as follows:

(in thousands)
  
2019
    
2018
    
2017
  
Fair value of MSRs, beginning of period
  
$
3,607
    
$
3,484
    
$
3,433
  
New servicing assets created
    
631
      
466
      
412
  
Change in fair value during the period due to:
                        
Time decay (1)
    
(167
)
    
(189
)
    
(184
)
Payoffs (2)
    
(293
)
    
(227
)
    
(268
)
Changes in valuation inputs or assumptions (3)
    
(515
)
    
73
      
91
  
Fair value of MSRs, end of period
  
$
3,263
    
$
3,607
    
$
3,484
  

(1)
Represents decrease in value due to regularly scheduled loan principal payments and partial loan paydowns.
(2)
Represents decrease in value due to loans that paid off during the period.
(3)
Represents change in value resulting from market-driven changes in interest rates.