6. Secondary Market Mortgage Activities

The following summarizes secondary market mortgage activities for the years ended December 31, 2013, 2012, and 2011:


	2013		2012		2011

Loans originated for resale, net of principal pay downs	$	19,883	$	32,626	$	19,927
Proceeds from sales of loans held for sale		22,252		32,512		23,324
Net gains on sales of loans held for sale		808		927		638
Loan servicing fees		375		340		349

Total loans serviced for others was $114,428, $104,017, and $109,006 at December 31, 2013, 2012, and 2011, respectively.

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2013, 2012, and 2011:


	2013			2012			2011
Balance, beginning of year	$	714		$	906		$	909
Additions		350			85			249
Servicing rights acquired		83			0			0
Amortization		(242	)		(277	)		(252	)

Balance, end of year	$	905		$	714		$	906

The fair value of mortgage servicing rights is based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The fair value of mortgage servicing rights was $915, $718, and $959 at December 31, 2013, 2012, and 2011, respectively. No valuation allowance is deemed necessary at December 31, 2013, 2012, or 2011. The fair value of interest rate lock commitments was not material at December 31, 2013 or 2012.