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Mortgage Servicing Rights
 12 Months Ended
Dec. 31, 2024
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:
202420232022
 (dollars in thousands)
Amortized cost:
Balance at beginning of period$31,602 $34,217 $35,993 
Originations of MSRs3,758 2,475 4,067 
Amortization(4,669)(5,090)(5,843)
Balance at end of period$30,691 $31,602 $34,217 
Valuation allowance:
Balance at beginning of period$— $— $(600)
Reduction (addition) to valuation allowance— — 600 
Balance at end of period$— $— $— 
Net MSRs at end of period$30,691 $31,602 $34,217 
Estimated fair value of MSRs at end of period$53,972 $49,696 $50,044 

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 as of December 31, 2024 and 2023, 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 $54.0 million, $49.7 million and $50.0 million as of December 31, 2024, 2023 and 2022, respectively. Based on its fair value analysis as of December 31, 2024, 2023, and 2022, the Corporation determined that no valuation allowances were required.

Total servicing income, included in mortgage banking income in the consolidated statements of income, was $10.2 million, $10.2 million and $10.6 million as of December 31, 2024, 2023 and 2022, respectively.

Total MSRs amortization expense, recognized as a reduction to mortgage banking income in the consolidated statements of income, was $4.7 million, $5.1 million and $5.8 million in 2024, 2023 and 2022, respectively. Estimated future MSRs
amortization expense, based on balances as of December 31, 2024, and the estimated remaining lives of the underlying loans, is as follows (dollars in thousands):
Year 
2025$3,509 
20263,169 
20272,856 
20282,577 
20292,331 
Thereafter16,249 
Total estimated amortization expense$30,691