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Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2021

Mortgage Servicing Rights [Abstract]

NOTE 7 – MORTGAGE SERVICING RIGHTS

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $1.3 billion at June 30, 2021 and $1.3 billion at December 31, 2020. Contractually specified servicing fees of $0.8 million and $1.7 million were included in mortgage loan servicing fees in the consolidated income statement for the three months and six months ended June 30, 2021, respectively. Servicing fees of $0.8 million and $1.5 million were included for the three and six months ended June 30, 2020, respectively.

The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance:

	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2021			2020			2021			2020
Balance at beginning of period	$	10,490		$	8,974		$	7,759		$	11,017
Mortgage servicing rights capitalized during the period		1,235			1,856			2,447			2,622
Mortgage servicing rights amortization during the period		(948	)		(1,574	)		(2,135	)		(2,171	)
Net change in valuation allowance		(99	)		(1,088	)		2,607			(3,300	)
Balance at end of period	$	10,678		$	8,168		$	10,678		$	8,168
Valuation allowance:
Balance at beginning of period	$	2,186		$	3,518		$	4,892		$	1,306
Increase (decrease)		99			1,088			(2,607	)		3,300
Balance at end of period	$	2,285		$	4,606		$	2,285		$	4,606