FHN originates mortgage loans for sale into the secondary market. The loans originated for sale primarily consist of residential first mortgages that conform to standards established by the government-sponsored entities ("GSEs") that are major investors in U.S. home mortgages, but can

also consist of junior lien loans secured by residential property. These loans are primarily sold to private companies that are unaffiliated with the GSEs on a servicing-released basis.

Mortgage Servicing Rights

Effective with the IBKC merger, FHN made an election to record mortgage servicing rights at the lower of cost or market value and amortize over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights are included in Other assets on the Consolidated Balance Sheets. Mortgage servicing rights had the following carrying values as of the period indicated.

September 30, 2020

(Dollars in thousands)

Gross Carrying Amount

Valuation Allowance

Accumulated Amortization

Net Carrying Amount

Mortgage servicing rights

22,142

(61)

(1,413)

20,668

In addition, there was an insignificant amount of non-mortgage and commercial servicing rights as of September 30, 2020 and December 31, 2019.

Total mortgage servicing fees included in Mortgage banking and title income were $0.6 million and $0.5 million for the three months ended September 30, 2020 and 2019, respectively. Total mortgage servicing fees included in Mortgage banking and title income were $1.4 million for the nine months ended September 30, 2020 and 2019.