Mortgage Servicing Rights ("MSRs")

9 Months Ended

Sep. 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 September 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 September 30, 2014 and December 31, 2013 was $2.3 million and $2.2 million, respectively. There was no valuation allowance at September 30, 2014 or December 31, 2013.

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



	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Balance at beginning of period	$	2,239		$	1,786		$	2,232		$	1,308
Additions	256			369			542			1,018
Amortization	(207		)	(111		)	(486		)	(282		)
Change in valuation allowance	—			—			—			—
Balances at end of period	$	2,288		$	2,044		$	2,288		$	2,044

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



	Three months ended September 30,						Nine months ended September 30,
	2014			2013			2014			2013
Origination and processing fees	$	264		$	245		$	562		$	542
Gain on sales of mortgage loans, net	502			1,007			1,218			2,888
MSR valuation allowance	—			—			—			—
Servicing fees	175			143			496			356
Amortization	(207		)	(111		)	(486		)	(282		)
Mortgage banking income, net	$	734		$	1,284		$	1,790		$	3,504

- 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