Loan Servicing

12 Months Ended

Dec. 31, 2019

Mortgage loans sold to and serviced for others are not included in the accompanying statements of financial condition. The unpaid principal balances of these loans as of December 31 of the years indicated are summarized as follows:


(dollars in thousands)	2019		2018
Mortgage loans sold to Federal Home Loan Mortgage Corporation without recourse	$	3,723	$	4,438
Mortgage loans sold to Federal National Mortgage Association without recourse	114,895		134,550
Mortgage loans sold to Federal Home Loan Bank without recourse	200		315
Total, end of period	$	118,818	$	139,303

The Company records servicing assets related to mortgage loans sold and serviced at fair value and will amortize these servicing assets over the period of estimated net servicing income associated with each loan. Management assesses servicing assets for potential impairment annually. Changes in the carrying value of servicing assets are recorded in service fees and charges on the Consolidated Statements of Income. Activity related to servicing assets for the years ended December 31, 2019, 2018 and 2017 is summarized as follows.


(dollars in thousands)	2019		2018		2017
Balance, beginning of period	$	272	$	422	$	622
Amortization	(111)		(150)		(200)
Balance, end of period	161		272		422
Fair value, end of period	$	530	$	789	$	1,141

Custodial and escrow account balances maintained in connection with the foregoing loan servicing arrangements were $2,201,000 and $2,366,000 as of December 31, 2019 and 2018, respectively.