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Mortgage Banking
 12 Months Ended
Dec. 31, 2015
Mortgage Banking [Abstract]  
Mortgage Banking

Note 4 – Mortgage Banking

 

Activity in secondary market loans during the year was as follows:  

                         
(Dollars in thousands)     2015       2014       2013  
Loans originated for resale, net of principal payments   $ 47,498     $ 29,850     $ 42,906  
Proceeds from loan sales     46,077       29,561       45,204  
Net gains on sales of loans held for sale     1,416       1,023       1,566  
Loan servicing fees, net of amortization     113       166       167  

  

Loans serviced for others are not reported as assets in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $79.4 million and $91.4 million at December 31, 2015 and 2014, respectively. The Bank maintains custodial escrow balances in connection with these serviced loans; however, such escrows were immaterial at December 31, 2015 and 2014.

 

Activity for loan servicing rights (included in other assets) was as follows:  

                         
(Dollars in thousands)     2015       2014       2013  
Balance, beginning of year   $ 489     $ 544     $ 473  
Capitalized     49       73       211  
Amortization     (161 )     (128 )     (140 )
Balance, end of year   $ 378     $ 489     $ 544  

  

The fair value of loan servicing rights was $739,000 and $942,000 as of December 31, 2015 and 2014, respectively. Consequently, a valuation allowance was not necessary at year-end 2015 or 2014. The fair value of servicing rights at December 31, 2015 was determined using a discount rate of 6.37% and prepayment speeds ranging from 9% to 13%. The fair value of servicing rights at December 31, 2014 was determined using a discount rate of 6.20% and prepayment speeds ranging from 7% to 13%.