
(Dollars in thousands)
	2024		2023		2022
Loans originated for resale, net of principal payments	$	74,299	$	56,085	$	71,829
Proceeds from loan sales	$	73,107	$	57,342	$	77,681
Net gains on sales of loans held for sale	$	2,439	$	1,954	$	2,343
Loan servicing fees, net of amortization	$	44	$	211	$	175

Net gains on sales of loans held for sale include capitalization of loan servicing rights. Loans serviced for others are not reported as assets in the accompanying consolidated balance sheets. The unpaid principal balances of these loans were $502.0 million and $495.7 million at December 31, 2024 and 2023, respectively. The Bank maintains custodial escrow balances in connection with these serviced loans; however, such escrows were immaterial at December 31, 2024 and 2023.

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


(Dollars in thousands)
	2024			2023			2022
Balance, beginning of year	$	3,834		$	4,322		$	4,667
Capitalized		1,053			820			1,007
Amortization		(1,509	)		(1,308	)		(1,352	)
Balance, end of year	$	3,378		$	3,834		$	4,322

The fair value of loan servicing rights was $5.7 million, $5.6 million and $5.9 million as of December 31, 2024, 2023 and 2022, respectively. Valuation allowances of $0 were recorded at December 31, 2024, 2023 and 2022. The fair value of the Bank’s servicing rights at December 31, 2024 was determined using a discount rate of 9.5% to 11.5% and prepayment speeds ranging from 5.1% to 6.7%. The fair value of the Bank’s servicing rights at December 31, 2023 was determined using a discount rate of 9.5% to 10.5% and prepayment speeds ranging from 5.7% to 7.5%. The fair value of the Bank’s servicing rights at December 31, 2022 was determined using a discount rate of 8.00% and prepayment speeds ranging from 5.2% to 6.7%.