Mortgage Servicing Rights ("MSRs")

6 Months Ended

Jun. 30, 2014

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 June 30, 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 June 30, 2014 and December 31, 2013 was $2.2 million. There was no valuation allowance at June 30, 2014 or December 31, 2013.

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



	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	2,228		$	1,546		$	2,232		$	1,308
Additions	191			339			286			649
Amortization	(180		)	(99		)	(279		)	(171		)
Change in valuation allowance	—			—			—			—
Balances at end of period	$	2,239		$	1,786		$	2,239		$	1,786

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



	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
Origination and processing fees	$	196		$	123		$	298		$	296
Gain on sales of mortgage loans, net	442			918			716			1,882
MSR valuation allowance	—			—			—			—
Servicing fees	164			118			321			213
Amortization	(180		)	(99		)	(279		)	(171		)
Mortgage banking income, net	$	622		$	1,060		$	1,056		$	2,220

- 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.

+ References+ Details