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Mortgage Servicing Rights
 12 Months Ended
Dec. 31, 2023
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights
NOTE 8 - 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:
202320222021
 (dollars in thousands)
Amortized cost:
Balance at beginning of period$34,217 $35,993 $38,745 
Originations of MSRs2,475 4,067 9,216 
Amortization(5,090)(5,843)(11,968)
Balance at end of period$31,602 $34,217 $35,993 
Valuation allowance:
Balance at beginning of period$— $(600)$(10,500)
Reduction (addition) to valuation allowance— 600 9,900 
Balance at end of period$— $— $(600)
Net MSRs at end of period$31,602 $34,217 $35,393 
Estimated fair value of MSRs at end of period$49,696 $50,044 $35,393 

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 $4.1 billion and $4.2 billion as of December 31, 2023 and 2022, respectively. Actual and expected prepayments of the underlying mortgage loans can impact the fair 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. The fair values of MSRs were $49.7 million and $50.0 million as of December 31, 2023 and 2022, respectively. Based on its fair value analysis as of December 31, 2023 and 2022, the Corporation determined that no valuation allowance was required for the years ended December 31, 2023 and 2022. The valuation allowance was $0.6 million at December 31, 2021.

Total servicing income, included in mortgage banking income in the consolidated statements of income, was $10.2 million, $10.6 million and $11.2 million as of December 31, 2023, 2022 and 2021, respectively.

Total MSR amortization expense, recognized as a reduction to mortgage banking income in the consolidated statements of income, was $5.1 million, $5.8 million and $12.0 million in 2023, 2022 and 2021, respectively. Estimated future MSR amortization expense, based on balances as of December 31, 2023, and the estimated remaining lives of the underlying loans, follows (dollars in thousands):
Year 
2024$3,822 
20253,425 
20263,061 
20272,741 
20282,455 
Thereafter16,098 
Total estimated amortization expense$31,602