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Mortgage Servicing Rights
 12 Months Ended
Dec. 31, 2016
Mortgage Banking [Abstract]  
Mortgage Servicing Rights
Mortgage Servicing Rights

We own rights to service mortgage loans for investors with aggregate unpaid principal balances of $1.35 billion at December 31, 2016 and $1.40 billion at December 31, 2015, which are not reflected in the accompanying consolidated statements of financial condition.  As described in Note 1, we outsource our residential mortgage loan servicing to a third party under a sub-servicing agreement.

The estimated fair value of our MSR was $10.1 million at December 31, 2016 and $11.0 million at December 31, 2015.  The fair value of MSR is highly sensitive to changes in assumptions.  See Note 18 for a description of the assumptions used to estimate the fair value of MSR.

The following table summarizes MSR activity for the years indicated.
 
For the Year Ended December 31,
(In Thousands)
2016
 
2015
 
2014
Carrying amount before valuation allowance at beginning of year
$
13,181

 
$
14,136

 
$
15,595

Additions – servicing obligations that result from transfers of financial assets
1,301

 
1,352

 
1,123

Amortization
(2,160
)
 
(2,307
)
 
(2,582
)
Carrying amount before valuation allowance at end of year
12,322

 
13,181

 
14,136

Valuation allowance at beginning of year
(2,167
)
 
(2,735
)
 
(2,795
)
(Provision for) recovery of valuation allowance
(25
)
 
568

 
60

Valuation allowance at end of year
(2,192
)
 
(2,167
)
 
(2,735
)
Net carrying amount at end of year
$
10,130

 
$
11,014

 
$
11,401



The following table summarizes mortgage banking income, net, for the years indicated.
 
For the Year Ended December 31,
(In Thousands)
2016
 
2015
 
2014
Loan servicing fees
$
3,769

 
$
3,940

 
$
4,085

Net gain on sales of loans
2,142

 
2,021

 
1,763

Amortization of MSR
(2,160
)
 
(2,307
)
 
(2,582
)
(Provision for) recovery of valuation allowance on MSR
(25
)
 
568

 
60

Total mortgage banking income, net
$
3,726

 
$
4,222

 
$
3,326



At December 31, 2016, estimated future MSR amortization through 2021 was as follows: $1.6 million for 2017, $1.5 million for 2018, $1.3 million for 2019, $1.1 million for 2020 and $1.0 million for 2021.  Actual results will vary depending upon the level of repayments on the loans currently serviced.