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Mortgage Banking and Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2015
Mortgage Banking and Servicing Rights [Abstract]  
Components of Mortgage Banking Income
The following table presents the components of mortgage banking income:

(in thousands)
Year Ended December 31
 
2015
  
2014
  
2013
 
Net gain on sale of loans held for sale
 
$
1,978
  
$
1,468
  
$
3,098
 
Net loan servicing income (expense)
            
Servicing fees
  
1,197
   
1,129
   
1,121
 
Late fees
  
88
   
112
   
98
 
Ancillary fees
  
212
   
149
   
368
 
Fair value adjustments
  
(289
)
  
(830
)
  
206
 
Net loan servicing income
  
1,208
   
560
   
1,793
 
Mortgage banking income
 
$
3,186
  
$
2,028
  
$
4,891
 
Activity for Capitalized Mortgage Servicing Rights Using Fair Value Method
Activity for capitalized mortgage servicing rights using the fair value method is as follows:

(in thousands)
 
2015
  
2014
  
2013
 
Fair value of MSRs, beginning of period
 
$
2,968
  
$
3,424
  
$
2,364
 
New servicing assets created
  
557
   
374
   
854
 
Change in fair value during the period due to:
            
Time decay (1)
  
(168
)
  
(162
)
  
(159
)
Payoffs (2)
  
(247
)
  
(202
)
  
(423
)
Changes in valuation inputs or assumptions (3)
  
126
   
(466
)
  
788
 
Fair value of MSRs, end of period
 
$
3,236
  
$
2,968
  
$
3,424
 

(1)
Represents decrease in value due to regularly scheduled loan principal payments and partial loan paydowns.
(2)
Represents decrease in value due to loans that paid off during the period.
(3)
Represents change in value resulting from market-driven changes in interest rates.