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Mortgage Servicing Rights
 6 Months Ended
Jun. 30, 2020
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights Mortgage Servicing Rights
FASB ASC Topic 860 "Transfers and Servicing" requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable. The Company's servicing assets and servicing liabilities are reported using the amortization method and carried at the lower of amortized cost or fair value by strata. In evaluating the carrying values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. The model utilizes several assumptions, the most significant of which is loan prepayments, calculated using a three-months moving average of weekly prepayment data published by the Public Securities Association (PSA) and modeled against the serviced loan portfolio, and the discount rate to discount future cash flows. As of June 30, 2020, the prepayment assumption using the PSA model was 321, which translates into an anticipated prepayment rate of 19.26%. The discount rate is 9.00%. Other assumptions include delinquency rates, foreclosure rates, servicing cost inflation, and annual unit loan cost. All assumptions are adjusted periodically to reflect current circumstances. Amortization of mortgage servicing rights, as well as write-offs due to prepayments of the related mortgage loans, are recorded as a charge against mortgage servicing fee income.
For the six months ended June 30, 2020 and 2019, servicing rights capitalized totaled $464,000 and $128,000, respectively. Servicing rights amortized for the six-month periods ended June 30, 2020 and 2019 were $135,000 and $114,000, respectively. The fair value of servicing rights was $1,777,000, $2,089,000 and $2,087,000 at June 30, 2020, December 31, 2019 and June 30, 2019, respectively. The Bank serviced loans for others totaling $287,987,000, $266,173,000 and $259,889,000 at June 30, 2020, December 31, 2019, and June 30, 2019, respectively.

Mortgage servicing rights are included in other assets and detailed in the following table:
June 30,
2020		December 31,
2019		June 30,
2019
Mortgage servicing rights$6,603,000  $6,140,000  $5,846,000  
Accumulated amortization(4,729,000) (4,594,000) (4,478,000) 
$1,874,000  $1,546,000  $1,368,000