Mortgage Servicing Rights ("MSRs")

3 Months Ended

Mar. 31, 2014

Transfers and Servicing [Abstract]

Mortgage Servicing Rights (MSRs)

Mortgage Servicing Rights (“MSRs”)

The Bank sells a predominant share of the mortgage loans it originates into the secondary market while retaining servicing of such loans. MSRs included in other assets in the condensed consolidated financial statements as of March 31, 2014 and December 31, 2013 are accounted for at the lower of origination value less accumulated amortization or current fair value. The net carrying value of MSRs at both March 31, 2014 and December 31, 2013 was $2.2 million. There was no valuation allowance at March 31, 2014 or December 31, 2013.

The following table presents activity in MSRs for the periods shown (dollars in thousands):

	Three months ended    March 31,
	2014			2013
Balance at beginning of period	$	2,232		$	1,308
Additions	95			311
Amortization	(99		)	(73		)
Change in valuation allowance	—			—
Balances at end of period	$	2,228		$	1,546

Mortgage banking income, net, consisted of the following for the periods shown (dollars in thousands):

	Three months ended    March 31,
	2014			2013
Origination and processing fees	$	102		$	174
Gain on sales of mortgage loans, net	274			964
MSR valuation allowance	—			—
Servicing fees	157			95
Amortization	(99		)	(73		)
Mortgage banking income, net	$	434		$	1,160