Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Mortgage Servicing Rights

At June 30, 2022, the Company was servicing approximately $252.3 million of loans sold to the secondary market compared to $270.0 million at December 31, 2021, and $286.6 million at June 30, 2021. Mortgage loan servicing fees, reported in real estate servicing fees, net, earned on loans sold were $0.2 million and $0.4 million for the three and six months ended June 30, 2022, respectively, compared to $0.2 million and $0.4 million for the three and six months ended June 30, 2021, respectively.

The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated.


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2022		2021		2022		2021
Balance at beginning of period	$	2,639	$	2,494	$	2,659	$	2,445
Originated mortgage servicing rights	12		123		40		292
Changes in fair value:
Due to changes in model inputs and assumptions (1)	160		260		190		282
Other changes in fair value (2)	(81)		(102)		(159)		(244)
Total changes in fair value	79		158		31		38
Balance at end of period	$	2,730	$	2,775	$	2,730	$	2,775

(1)The change in fair value resulting from changes in valuation inputs or assumptions, reported in real estate servicing fees, net, used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates.

(2)Other changes in fair value, reported in real estate servicing fees, net, reflect changes due to customer payments and passage of time.

The following key data and assumptions were used in estimating the fair value of the Company’s MSRs as of June 30, 2022 and 2021, respectively:


	Six Months Ended June 30,
	2022		2021
Weighted average constant prepayment rate	7.48	%	11.81	%
Weighted average note rate	3.38	%	3.41	%
Weighted average discount rate	9.25	%	8.00	%
Weighted average expected life (in years)	6.97		5.95