Loan Servicing Rights

12 Months Ended

Dec. 31, 2014

NOTE 9. LOAN SERVICING RIGHTS

The following is a summary of the activity for loan servicing rights during years ended December 31, 2014 and 2013:


(Dollars in Thousands)	2014		2013
Balance, January 1	$	378	$	-
Additions		589		274
Disposals		-		-
Acquired in acquisitions		-		113
Amortized to expense		(115)		(9)

Ending balance	$	852	$	378

The fair value of servicing rights was $1,134,000 and $614,000 at December 31, 2014 and 2013, respectively. Fair value at December 31, 2014 was determined using discount rates ranging from 9.5% to 12.0%, prepayment speeds ranging from 11.1% to 24.7%, depending on the stratification of the specific right, and a weighted average default rate of 0.7%. Fair value at December 31, 2013 was determined using discount rates ranging from 10.5% to 13.0%, prepayment speeds ranging from 8.5% to 24.7%, depending on the stratification of the specific right, and a weighted average default rate of 2.62%.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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