Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Mortgage Servicing Rights

At June 30, 2023, the Company was servicing approximately $231.1 million of loans sold to the secondary market compared to $240.5 million at December 31, 2022, and $252.3 million at June 30, 2022. Mortgage loan servicing fees, reported in real estate servicing fees, net, earned on loans sold were $0.2 million and $0.3 million for the three and six months ended June 30, 2023, respectively, compared to $0.2 million and $0.4 million for the three and six months ended June 30, 2022, 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)	2023		2022		2023		2022
Balance at beginning of period	$	2,934	$	2,639	$	2,899	$	2,659
Originated mortgage servicing rights	24		12		30		40
Changes in fair value:
Due to changes in model inputs and assumptions (1)	7		160		101		190
Other changes in fair value (2)	(63)		(81)		(128)		(159)
Total changes in fair value	(56)		79		(27)		31
Balance at end of period	$	2,902	$	2,730	$	2,902	$	2,730

(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, 2023 and 2022, respectively:


	Six Months Ended June 30,
	2023		2022
Weighted average constant prepayment rate	6.74	%	7.48	%
Weighted average note rate	3.47	%	3.38	%
Weighted average discount rate	11.00	%	9.25	%
Weighted average expected life (in years)	7.12		6.97