Loans are summarized as follows:


	December 31,
(Dollar amounts in thousands)	2021		2020
Commercial	$	1,674,066	$	1,521,711
Residential	664,509		604,652
Consumer	474,026		479,750
Total gross loans	2,812,601		2,606,113
Deferred costs, net	3,294		4,181
Allowance for credit losses	(48,305)		(44,076)
TOTAL	$	2,767,590	$	2,566,218

The Corporation periodically sells residential mortgage loans it originates based on the overall loan demand of the Corporation and the outstanding balances in the residential mortgage portfolio. At December 31, 2021 and 2020, loans held for sale were $4.2 million and $7.1 million, respectively, and are included in the totals above.

In the normal course of business, the Corporation’s subsidiary banks make loans to directors and executive officers and to their associates. In 2021, the aggregate dollar amount of these loans to directors and executive officers who held office amounted to

$57.5 million at the beginning of the year. During 2021, advances of $57.5 million, repayments of $64.1 million, and additions for new directors of $0.0 million were made with respect to related party loans for an aggregate dollar amount outstanding of $50.9 million at December 31, 2021.

Loans serviced for others, which are not reported as assets, total $542.8 million and $490.4 million at year-end 2021 and 2020. Custodial escrow balances maintained in connection with serviced loans were $3.0 million and $3.0 million at year-end 2021 and 2020.

Activity for capitalized mortgage servicing rights (included in other assets) was as follows:


	December 31,
(Dollar amounts in thousands)	2021		2020		2019
Servicing rights:
Beginning of year	$	1,601	$	1,435	$	1,431
Additions	1,094		956		579
Amortized to expense	(736)		(790)		(575)
End of year	$	1,959	$	1,601	$	1,435

Third party valuations are conducted periodically for mortgage servicing rights. Based on these valuations, fair values were approximately $2.7 million and $2.4 million at year end 2021 and 2020. There was no valuation allowance in 2021 or 2020.