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Mortgage Servicing Rights
 12 Months Ended
Dec. 31, 2015
Servicing Asset [Abstract]  
Mortgage Servicing Rights
Mortgage Servicing Rights

We own rights to service mortgage loans for investors with aggregate unpaid principal balances of $1.40 billion at December 31, 2015 and $1.45 billion at December 31, 2014, 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 $11.0 million at December 31, 2015 and $11.4 million at December 31, 2014.  The fair value of MSR is highly sensitive to changes in assumptions.  See Note 18 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)
2015
 
2014
 
2013
Carrying amount before valuation allowance at beginning of year
$
14,136

 
$
15,595

 
$
15,143

Additions – servicing obligations that result from transfers of financial assets
1,352

 
1,123

 
3,681

Amortization
(2,307
)
 
(2,582
)
 
(3,229
)
Carrying amount before valuation allowance at end of year
13,181

 
14,136

 
15,595

Valuation allowance at beginning of year
(2,735
)
 
(2,795
)
 
(8,196
)
Recovery of valuation allowance
568

 
60

 
5,401

Valuation allowance at end of year
(2,167
)
 
(2,735
)
 
(2,795
)
Net carrying amount at end of year
$
11,014

 
$
11,401

 
$
12,800



The following table summarizes mortgage banking income, net, for the years indicated.
 
For the Year Ended December 31,
(In Thousands)
2015
 
2014
 
2013
Loan servicing fees
$
3,940

 
$
4,085

 
$
4,189

Net gain on sales of loans
2,021

 
1,763

 
6,880

Amortization of MSR
(2,307
)
 
(2,582
)
 
(3,229
)
Recovery of valuation allowance on MSR
568

 
60

 
5,401

Total mortgage banking income, net
$
4,222

 
$
3,326

 
$
13,241



At December 31, 2015, estimated future MSR amortization through 2020 was as follows: $1.8 million for 2016, $1.6 million for 2017, $1.4 million for 2018, $1.2 million for 2019 and $1.1 million for 2020.  Actual results will vary depending upon the level of repayments on the loans currently serviced.