Note 13: Loan Servicing

Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans consist of the following:



	2015		2014
Loans serviced for
Freddie Mac	$	295,613	$	295,589
Fannie Mae		11,535		16,024
FHLB		12,677		12,963
Other investors		1,763		1,670
	$	321,588	$	326,246

The aggregate fair value of capitalized mortgage servicing rights is based on comparable market values and expected cash flows, with impairment assessed based on portfolio characteristics including product type and interest rates. The amount of servicing fees collected during 2015, 2014 and 2013 totaled approximately $814,000, $832,000, and $896,000, respectively.



	2015		2014		2013
Mortgage-servicing rights
Balances, January 1	$	1,417	$	1,858	$	2,396
Servicing rights capitalized		458		278		464
Amortization of servicing rights		(540)		(719)		(1,002)
		1,335		1,417		1,858
Valuation allowance		-		-		-
	$	1,335	$	1,417	$	1,858

The fair value of servicing rights subsequently measured using the amortization method was as follows:



	2015		2014		2013
Mortgage-servicing rights
Fair value, beginning of period	$	2,048	$	2,106	$	1,731
Fair value, end of period		2,179		2,048		2,106

Activity in the valuation allowance for mortgage servicing rights was as follows:



	2015		2014		2013
Balance, beginning of year	$	-	$	-	$	665
Additions		-		-		-
Reductions		-		-		(665)
Balance, end of year	$	-	$	-	$	-