9.OTHER INTANGIBLE ASSETS

Other intangible assets include a core deposit premium and mortgage servicing rights. The following table presents changes in other intangible assets for the periods presented:

	Core			Mortgage
	Deposit			Servicing
	Premium			Rights			Total
	(Dollars in thousands)

Balance as of December 31, 2012	$	15,378		$	22,121		$	37,499
Additions	—			2,702			2,702
Amortization	(2,674		)	(4,744		)	(7,418		)
Balance as of December 31, 2013	$	12,704		$	20,079		$	32,783
Additions	—			2,246			2,246
Amortization	(2,675		)	(2,657		)	(5,332		)
Balance as of December 31, 2014	$	10,029		$	19,668		$	29,697

The gross carrying value, accumulated amortization and net carrying value related to our other intangible assets are presented below:

	December 31, 2014							December 31, 2013
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Value		Amortization			Value		Value		Amortization			Value
	(Dollars in thousands)

Core deposit premium	$	44,642	$	(34,613	)	$	10,029	$	44,642	$	(31,938	)	$	12,704
Mortgage servicing rights	56,687		(37,019		)	19,668		54,441		(34,362		)	20,079
Total	$	101,329	$	(71,632	)	$	29,697	$	99,083	$	(66,300	)	$	32,783

Based on our other intangible assets held as of December 31, 2014, estimated amortization expense for the next five succeeding fiscal years and all years thereafter are as follows:

	Estimated Amortization Expense
			Mortgage
	Core Deposit		Servicing
	Premium		Rights		Total
	(Dollars in thousands)

2015	$	2,674	$	2,595	$	5,269
2016	2,674		1,906		4,580
2017	2,674		1,431		4,105
2018	2,007		1,069		3,076
2019	—		761		761
Thereafter	—		11,906		11,906
Total	$	10,029	$	19,668	$	29,697

At December 31, 2014, there were no events or changes in circumstances that would indicate that the assets assigned to our Banking Operations reporting unit, which includes the entire core deposit premium, were not recoverable.

We utilize the amortization method to measure our mortgage servicing rights. Under the amortization method, we amortize our mortgage servicing rights in proportion to and over the period of net servicing income. Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $2.2 million, $2.7 million, and $5.7 million in 2014, 2013 and 2012, respectively. Amortization of the servicing rights is reported as amortization of other intangible assets in our consolidated statements of income. Ancillary income is recorded in other income. Mortgage servicing rights are recorded when loans are sold to third-parties with servicing of those loans retained and we classify our entire mortgage servicing rights into one class.

Initial fair value of the servicing right is calculated by a discounted cash flow model prepared by a third party service provider based on market value assumptions at the time of origination and we assess the servicing right for impairment using current market value assumptions at each reporting period. Critical assumptions used in the discounted cash flow model include mortgage prepayment speeds, discount rates, costs to service and ancillary income. Variations in our assumptions could materially affect the estimated fair values. Changes to our assumptions are made when current trends and market data indicate that new trends have developed. Current market value assumptions based on loan product types (fixed rate, adjustable rate and balloon loans) include average discount rates, servicing costs and ancillary income. Many of these assumptions are subjective and require a high level of management judgment. Our mortgage servicing rights portfolio and valuation assumptions are periodically reviewed by management.

Prepayment speeds may be affected by economic factors such as home price appreciation, market interest rates, the availability of other credit products to our borrowers and customer payment patterns. Prepayment speeds include the impact of all borrower prepayments, including full payoffs, additional principal payments and the impact of loans paid off due to foreclosure liquidations. As market interest rates decline, prepayment speeds will generally increase as customers refinance existing mortgages under more favorable interest rate terms. As prepayment speeds increase, anticipated cash flows will generally decline resulting in a potential reduction, or impairment, to the fair value of the capitalized mortgage servicing rights. Alternatively, an increase in market interest rates may cause a decrease in prepayment speeds and therefore an increase in fair value of mortgage servicing rights.

The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights:

	Year Ended December 31,
	2014			2013
	(Dollars in thousands)

Fair market value, beginning of period	$	21,399		$	22,356
Fair market value, end of period	19,975			21,399
Weighted average discount rate	9.5		%	8.0		%
Weighted average prepayment speed assumption	13.2			13.6

Fair values at December 31, 2014 and 2013 reflected approximately $2.4 billion in loans serviced for others.