The carrying amount of goodwill has decreased $175 since December 31, 2022 as a result of a deferred tax correction related to the CLF acquisition, as discussed in Note 2. The balance of goodwill was $125,520 at December 31, 2023 and $125,695 at December 31, 2022.

Management performs an evaluation of goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2023. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2023.

Acquired intangible assets were as follows as of year-end.


	2023						2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible assets(1):
Core deposit intangibles		12,668		6,178		6,490		12,953		4,883		8,070
Total core deposit intangible assets	$	12,668	$	6,178	$	6,490	$	12,953	$	4,883	$	8,070

(1)

Excludes fully amortized core deposit intangible assets

Aggregate core deposit intangible amortization expense was $1,579, $1,296 and $890 for 2023, 2022 and 2021, respectively.

Activity for mortgage servicing rights (MSRs) and the related valuation allowance follows:


	2023		2022
Mortgage Servicing Rights:
Beginning of year	$	2,689	$	2,642
Additions		659		397
Disposals		—		—
Amortized to expense		330		350
Other Charges		—		—
Change in valuation allowance		—		—
End of year	$	3,018	$	2,689

Valuation allowance:
Beginning of year	$	—	$	—
Additions expensed		—		—
Reductions credited to operations		—		—
Direct write-offs		—		—
End of year	$	—	$	—

The unpaid principal balance of mortgage loans serviced for third parties was $442,635 at December 31, 2023, compared to $456,149 at December 31, 2022 and $405,786 at December 31, 2021.

Aggregate mortgage servicing rights (MSRs) amortization was $330, $350 and $572 for 2023, 2022 and 2021, respectively.

Mortgage loan contractual servicing fees were $1,137, $1,063 and $947 for 2023, 2022 and 2021, respectively. Mortgage loan contractual servicing fees are included in Other income on the Consolidated Statements of Operations.

The fair value of servicing rights was $3,018 and $2,689 at year-end 2023 and 2022, respectively. Fair value at year-end 2023 was determined using a discount rate of 12.0%, prepayment speeds ranging from 4.6% to 11.0%, depending on the stratification of the specific right, and a weighted average default rate of 0.0%. Fair value at year-end 2022 was determined using a discount rate of 12.0%, prepayment speeds ranging from 5.0% to 20.0%, depending on the stratification of the specific right, and a default rate of 0.14%.

Estimated amortization expense for each of the next five years and thereafter is as follows:


	MSRs		Core deposit intangibles		Total
2024	$	170	$	1,489	$	1,659
2025		169		1,311		1,480
2026		167		1,193		1,360
2027		163		1,071		1,234
2028		155		782		937
Thereafter		2,194		644		2,838
	$	3,018	$	6,490	$	9,508