HTLF had goodwill of $576.0 million at both September 30, 2022, and December 31, 2021. HTLF conducts its annual internal assessment of the goodwill both at the consolidated level and at its subsidiaries as of September 30. HTLF 's annual quantitative assessment is completed in the fourth quarter of every year as of September 30. The most recent assessment was completed in the fourth quarter of 2021 as of September 30, 2021, and there was no goodwill impairment identified.

At September 30, 2022, HTLF's intangible assets consisted of core deposit intangibles and mortgage servicing rights. At December 31, 2021, HTLF's intangible assets consisted of core deposit intangibles, mortgage servicing rights, customer relationship intangibles, and commercial servicing rights. The gross carrying amount of these intangible assets and the associated accumulated amortization at September 30, 2022, and December 31, 2021, are presented in the table below, in thousands:


	September 30, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Core deposit intangibles	$	101,185	$	74,190	$	26,995	$	101,185	$	68,330	$	32,855
Customer relationship intangibles	1,177		1,177		—		1,177		1,044		133
Mortgage servicing rights	14,008		5,629		8,379		12,790		6,378		6,412
Commercial servicing rights	7,054		7,054		—		7,054		6,576		478
Total	$	123,424	$	88,050	$	35,374	$	122,206	$	82,328	$	39,878


	Core Deposit Intangibles		Mortgage Servicing Rights		Total
Three months ending December 31, 2022	$	1,841	$	147	$	1,988
Year ending December 31,
2023	6,739		2,058		8,797
2024	5,591		1,764		7,355
2025	4,700		1,470		6,170
2026	3,533		1,176		4,709
2027	2,601		882		3,483
Thereafter	1,990		882		2,872
Total	$	26,995	$	8,379	$	35,374

Projections of amortization expense for mortgage servicing rights are based on existing asset balances and the existing interest rate environment as of September 30, 2022. HTLF's actual experience may be significantly different depending upon changes in mortgage interest rates and market conditions. Mortgage loans serviced for others were approximately $734.9 million at September 30, 2022, compared to $723.3 million at December 31, 2021. Custodial escrow balances maintained in connection with the mortgage loan servicing portfolio were approximately $17.0 million at September 30, 2022, and $4.5 million at December 31, 2021.

Fees collected for the servicing of mortgage loans for others were $472,000 and $446,000 for the quarters ended September 30, 2022, and September 30, 2021, respectively. Fees collected for the servicing of mortgage loans for others were $1.4 million and $1.4 million for the nine months ended September 30, 2022, and September 30, 2021, respectively.

The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights for the nine months ended September 30, 2022, and September 30, 2021:


	2022			2021
Balance at January 1,	$	6,412		$	5,189
Originations	1,218			1,055
Amortization	(909)			(1,029)



Valuation adjustment	1,658			586
Balance at period end	$	8,379		$	5,801

Mortgage servicing rights, net to servicing portfolio	1.14		%	0.82		%

Mortgage rights are initially recorded at fair value in net gains on sale of loans held for sale when they are capitalized through loan sales. Fair value is based on market prices for comparable servicing contracts, when available, or based on a valuation model that calculates the present value of estimated future net servicing income.

Mortgage rights are subsequently measured using the amortization method, which requires the asset to be amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are evaluated for impairment at each HTLF subsidiary which has servicing rights based upon the fair value of the assets as compared to the carrying amount. Impairment is recognized through a valuation allowance for specific tranches to the extent that fair value is less than the carrying amount at each HTLF subsidiary which has servicing rights, and a valuation adjustment is recorded into noninterest income.

At September 30, 2022, no valuation allowance was required on the mortgage servicing rights 15-year tranche, and no valuation allowance was required on the mortgage servicing rights 30-year tranche. At December 31, 2021, a $327,000 valuation allowance was required on the mortgage servicing rights 15-year tranche and a $1.3 million valuation allowance was required on the mortgage servicing rights 30-year tranche.

For the three months ended September 30, 2022, and September 30, 2021, a valuation adjustment benefit of $0 and $195,000, respectively, was recorded for the total mortgage servicing rights portfolio. For the nine months ended September 30, 2022, and September 30, 2021, a valuation adjustment benefit of $1.7 million and $586,000, respectively, was recorded for the total mortgage servicing rights portfolio.

The following table summarizes, in thousands, the book value, the fair value of each tranche of the mortgage servicing rights and any recorded valuation allowance at September 30, 2022, and December 31, 2021:


	Book Value 15-Year Tranche		Fair Value 15-Year Tranche		Valuation Allowance 15-Year Tranche		Book Value 30-Year Tranche		Fair Value 30-Year Tranche		Valuation Allowance 30-Year Tranche

September 30, 2022	$	1,540	$	1,871	$	—	$	6,839	$	8,176	$	—



December 31, 2021	$	1,607	$	1,280	$	327	$	6,463	$	5,132	$	1,331

The fair value of mortgage servicing rights is calculated based upon a discounted cash flow analysis. Cash flow assumptions, including prepayment speeds, servicing costs and escrow earnings of the mortgage servicing rights are considered in the

calculation. The following table presents key assumptions used to value the mortgage servicing rights as of September 30, 2022, and December 31, 2021, dollars in thousands:


	As of
	September 30, 2022			December 31, 2021
Weighted average constant prepayment rate	7.80		%	13.40		%
Weighted average discount rate	10.05		%	9.02		%
Fair value of mortgage servicing rights	$	10,047		$	6,412