Loan Servicing

12 Months Ended

Dec. 31, 2013

Transfers and Servicing [Abstract]

Loan Servicing

LOAN SERVICING

Mortgage loans serviced for others, consisting of loans sold to Fannie Mae and Freddie Mac, are not included in the accompanying consolidated balance sheets. Mortgage loan portfolios serviced for Fannie Mae and Freddie Mac were $406,966,111 and $330,818,219 at December 31, 2013 and 2012, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing. Total servicing fees received were $943,408, $713,881 and $608,513 during 2013, 2012 and 2011, respectively, and were included in mortgage banking activities. At December 31, 2013 and 2012, mortgage servicing rights were $4.5 million and $2.5 million respectively and are included in other assets on the consolidated balance sheets. Servicing rights recorded on loans originated and sold by the Bank and the changes in the fair value were recorded in the consolidated statements of income (loss) under the caption, mortgage banking activities. Amortization/market value adjustments related to mortgage servicing rights were $624,143, $(447,403) and $(559,394) for the years ended 2013, 2012 and 2011, respectively and recorded as a reduction to the mortgage banking activities.

	2013		2012
	(Amounts in thousands)
Mortgage servicing assets, beginning of year	$	2,525	$	1,871
Capitalized	1,387		1,101
Change in fair value	624		(447		)
Mortgage servicing assets, end of year	$	4,536	$	2,525

Custodial escrow balances maintained in connection with the loan servicing were $259,209 and $318,649 at December 31, 2013 and 2012, respectively.