(4.) LOANS HELD FOR SALE AND LOAN SERVICING RIGHTS

Loans held for sale were entirely comprised of residential real estate mortgages and totaled $755 thousand and $3.4 million as of December 31, 2014 and 2013, respectively.

The Company sells certain qualifying newly originated or refinanced residential real estate mortgages on the secondary market. Residential real estate mortgages serviced for others, which are not included in the consolidated statements of financial condition, amounted to $215.2 million and $237.9 million as of December 31, 2014 and 2013, respectively. In connection with these mortgage-servicing activities, the Company administered escrow and other custodial funds which amounted to approximately $4.6 million and $4.9 million as of December 31, 2014 and 2013, respectively.

The activity in capitalized mortgage servicing assets is summarized as follows for the years ended December 31 (in thousands):


		2014			2013			2012
Mortgage servicing assets, beginning of year	$	1,479		$	1,637		$	1,609
Originations		172			277			554
Amortization		(316	)		(435	)		(526	)
Mortgage servicing assets, end of year		1,335			1,479			1,637
Valuation allowance		(6	)		(3	)		(168	)
Mortgage servicing assets, net, end of year	$	1,329		$	1,476		$	1,469