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Mortgage Servicing Rights
 3 Months Ended
Mar. 31, 2017
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights
Mortgage Servicing Rights

The following table summarizes the changes in mortgage servicing rights ("MSRs"), which are included in other assets on the consolidated balance sheets:
 
Three months ended March 31
 
2017
 
2016
 
(in thousands)
Amortized cost:
 
 
 
Balance at beginning of period
$
38,822

 
$
40,944

Originations of mortgage servicing rights
1,183

 
920

Amortization
(1,462
)
 
(1,669
)
Balance at end of period
$
38,543

 
$
40,195

 
 
 
 
Valuation Allowance - Balance at end of period
$
(1,291
)
 
$
—

 
 
 
 
Net MSRs at end of period
$
37,252

 
$
40,195



MSRs represent the economic value of existing contractual rights to service mortgage loans that have been sold. Accordingly, actual and expected prepayments of the underlying mortgage loans can impact the value of MSRs. The Corporation accounts for MSRs at the lower of amortized cost or fair value.

The fair value of MSRs is estimated by discounting the estimated cash flows from servicing income, net of expense, over the expected life of the underlying loans at a discount rate commensurate with the risk associated with these assets. Expected life is based on the contractual terms of the loans, as adjusted for prepayment projections. Based on its fair value analysis, the Corporation determined that no adjustment to the valuation allowance was necessary for the three months ended March 31, 2017. No valuation allowance was determined to be necessary as of March 31, 2016.