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Mortgage Servicing Rights

9 Months Ended

Sep. 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 September 30, 2021 and $1.3 billion at December 31, 2020. Contractually specified servicing fees of $0.9 million and $2.5 million were included in mortgage loan servicing fees in the consolidated income statement for the three months and nine months ended September 30, 2021, respectively. Servicing fees of $0.8 million and $2.4 million were included for the three and nine months ended September 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 September 30,						Nine Months Ended September 30,
($ in thousands)	2021			2020			2021			2020

Balance at beginning of period	$	10,678		$	8,168		$	7,759		$	11,017
Mortgage servicing rights capitalized during the period		1,211			1,349			3,658			3,971
Mortgage servicing rights amortization during the period		(943	)		(1,308	)		(3,078	)		(3,479	)
Net change in valuation allowance		248			326			2,855			(2,974	)
Balance at end of period	$	11,194		$	8,535		$	11,194		$	8,535

Valuation allowance:
Balance at beginning of period	$	2,285		$	4,606		$	4,892		$	1,306
Increase (decrease)		(248	)		(326	)		(2,855	)		2,974
Balance at end of period	$	2,037		$	4,280		$	2,037		$	4,280