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Mortgage Servicing Rights
 12 Months Ended
Dec. 31, 2014
Servicing Asset [Abstract]  
Mortgage Servicing Rights
Mortgage Servicing Rights
 
We own rights to service mortgage loans for investors with aggregate unpaid principal balances of $1.45 billion at December 31, 2014 and $1.50 billion at December 31, 2013, which are not reflected in the accompanying consolidated statements of financial condition.  As described in Note 1, we outsource our residential mortgage loan servicing to a third party under a sub-servicing agreement.
 
The estimated fair value of our MSR was $11.4 million at December 31, 2014 and $12.8 million at December 31, 2013.  The fair value of MSR is highly sensitive to changes in assumptions.  See Note 16 for a description of the assumptions used to estimate the fair value of MSR.
 
The following table summarizes MSR activity for the years indicated.
 
 
For the Year Ended December 31,
(In Thousands)  
2014
 
2013
 
2012
Carrying amount before valuation allowance at beginning of year
$
15,595

 
$
15,143

 
$
15,401

Additions – servicing obligations that result from transfers of financial assets
1,123

 
3,681

 
3,651

Amortization
(2,582
)
 
(3,229
)
 
(3,909
)
Carrying amount before valuation allowance at end of year
14,136

 
15,595

 
15,143

Valuation allowance at beginning of year
(2,795
)
 
(8,196
)
 
(7,265
)
Recovery of (provision for) valuation allowance
60

 
5,401

 
(931
)
Valuation allowance at end of year
(2,735
)
 
(2,795
)
 
(8,196
)
Net carrying amount at end of year
$
11,401

 
$
12,800

 
$
6,947


 
The following table summarizes mortgage banking income, net, for the years indicated.
 
 
For the Year Ended December 31,
(In Thousands)  
2014
 
2013
 
2012
Loan servicing fees
$
4,085

 
$
4,189

 
$
4,070

Net gain on sales of loans
1,763

 
6,880

 
7,590

Amortization of MSR
(2,582
)
 
(3,229
)
 
(3,909
)
Recovery of (provision for) valuation allowance on MSR
60

 
5,401

 
(931
)
Total mortgage banking income, net
$
3,326

 
$
13,241

 
$
6,820


 
At December 31, 2014, estimated future MSR amortization through 2019 was as follows:  $2.3 million for 2015, $2.0 million for 2016, $1.6 million for 2017, $1.4 million for 2018 and $1.2 million for 2019.  Actual results will vary depending upon the level of repayments on the loans currently serviced.