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Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2014

Mortgage Servicing Rights [Abstract]

Note 9: Mortgage Servicing Rights

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $662.7 million and $606.0 million at December 31, 2014 and 2013, respectively. Contractually specified servicing fees of approximately $1.6 million and $1.4 million were included in mortgage loan servicing fees in the income statement at December 31, 2014 and 2013, respectively.

The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance:

($ in thousands)	2014			2013

Carrying amount, beginning of year	$	5,180		$	3,775
Mortgage servicing rights capitalized during the year		1,367			1,603
Mortgage servicing rights amortization during the year		(612	)		(827	)
Net change in valuation allowance		(231	)		629
Carrying amount, end of year	$	5,704		$	5,180

Valuation allowance:
Beginning of year	$	181		$	810
Reduction		231			(629	)

End of year	$	412		$	181

Fair Value, beginning of period	$	6,237		$	4,329
Fair Value, end of period	$	6,358		$	6,237

During 2014, the valuation allowance was increased by $0.23 million compared to a recapture of $0.63 million during 2013. These adjustments were taken to adjust the carrying value of the impaired mortgage servicing rights to the fair value for indicated tranches. The fair value is determined by an independent analysis conducted by a third party on a quarterly basis.