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Mortgage Servicing Rights
 6 Months Ended
Jun. 30, 2022
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights Mortgage Servicing Rights
The following table summarizes the changes in MSRs, which are included in other assets on the consolidated balance sheets, with adjustments to the carrying value included in mortgage banking income on the consolidated statements of income:
Three months ended June 30Six months ended June 30
 2022202120222021
 (in thousands)
Amortized cost:
Balance at beginning of period$35,624 $37,803 $35,993 $38,745 
Originations of MSRs1,053 1,457 2,407 4,268 
Amortization(1,428)(3,198)(3,151)(6,951)
Balance at end of period$35,249 $36,062 $35,249 $36,062 
Valuation allowance:
Balance at beginning of period$— $(4,400)$(600)$(10,500)
Reduction (addition) to valuation allowance— (2,200)600 3,900 
Balance at end of period$— $(6,600)$— $(6,600)
Net MSRs at end of period$35,249 $29,462 $35,249 $29,462 
Estimated fair value of MSRs at end of period$49,804 $29,462 $49,804 $29,462 

MSRs represent the economic value of contractual rights to service mortgage loans that have been sold. The total portfolio of mortgage loans serviced by the Corporation for unrelated third parties was $4.3 billion as of June 30, 2022 and December 31, 2021. Actual and expected prepayments of the underlying mortgage loans can impact the fair values of the 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. The fair values of MSRs were $49.8 million and $35.4 million at June 30, 2022 and December 31, 2021, respectively. Based on its fair value analysis as of June 30, 2022, the Corporation determined that no valuation allowance was required as of June 30, 2022.