6. Secondary Market Mortgage Activities

The following summarizes secondary market mortgage activities for the years ended December 31, 2014, 2013, and 2012:


	2014		2013		2012

Loans originated for resale, net of principal pay downs	$	10,271	$	19,883	$	32,626
Proceeds from sales of loans held for sale		10,227		22,252		32,512
Net gains on sales of loans held for sale		596		808		927
Loan servicing fees		473		375		340

Total loans serviced for others were $112,002, $114,428, and $104,017 at December 31, 2014, 2013, and 2012, respectively.

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2014, 2013, and 2012:


	2014			2013			2012
Balance, beginning of year	$	904		$	714		$	906
Additions		240			350			85
Servicing rights acquired		0			83			0
Amortization		(288	)		(243	)		(277	)

Balance, end of year	$	856		$	904		$	714

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 $896, $915, and $718 at December 31, 2014, 2013, and 2012, respectively. No valuation allowance is deemed necessary at December 31, 2014, 2013, or 2012. The fair value of interest rate lock commitments and forward commitments to sell loans was not material at December 31, 2014 or 2013.