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Mortgage Servicing Rights
 9 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Mortgage Servicing Rights
Mortgage Servicing Rights
The Corporation has originated mortgage servicing rights which are included in other intangible assets on the consolidated balance sheets. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income on a basis similar to the interest method and an accelerated amortization method for loan payoffs. Mortgage servicing rights are subject to impairment testing on a quarterly basis. The aggregate fair value of these rights was $7.3 million and $7.2 million at September 30, 2014 and December 31, 2013, respectively. The fair value of mortgage servicing rights was determined using a discount rate of 10.0% at September 30, 2014, and discount rates ranging from 5.0% to 10.0% at December 31, 2013.
Changes in the mortgage servicing rights balance are summarized as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(Dollars in thousands)
2014
 
2013
 
2014
 
2013
Beginning of period
$
5,378

 
$
5,227

 
$
5,519

 
$
4,152

Servicing rights capitalized
365

 
544

 
724

 
2,183

Amortization of servicing rights
(561
)
 
(287
)
 
(1,068
)
 
(1,099
)
Changes in valuation allowance
243

 
—

 
250

 
248

End of period
$
5,425

 
$
5,484

 
$
5,425

 
$
5,484

Mortgage loans serviced for others
$
779,701

 
$
736,017

 
$
779,701

 
$
736,017


Activity in the valuation allowance for mortgage servicing rights was as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(Dollars in thousands)
2014
 
2013
 
2014
 
2013
Valuation allowance, beginning of period
$
(243
)
 
$
(249
)
 
$
(250
)
 
$
(497
)
Additions
—

 
—

 
—

 
—

Reductions
243

 
—

 
250

 
248

Direct write-downs
—

 
—

 
—

 
—

Valuation allowance, end of period
$
—

 
$
(249
)
 
$
—

 
$
(249
)

The estimated amortization expense of mortgage servicing rights for the remainder of 2014 and the succeeding fiscal years is as follows:
Year
(Dollars in thousands)
Amount
Remainder of 2014
 
$
206

2015
 
799

2016
 
693

2017
 
596

2018
 
511

Thereafter
 
2,620