Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2013

NOTE 13. MORTGAGE SERVICING RIGHTS

For the years ended December 31, 2013, 2012 and 2011, the 1-4 family mortgage loans that were sold to Federal National Mortgage Association, or FNMA, amounted to $62.9 million, $82.9 million and $67.9 million. At December 31, 2013, 2012 and 2011 our servicing portfolio totaled $327.4 million, $329.2 million and $332.6 million.

The following table indicates MSRs and the net carrying values:


(dollars in thousands)	Servicing Rights			Valuation Allowance			Net Carrying Value

Balance at December 31, 2011	$	3,320		$	1,167		$	2,153
Additions		826			—			826
Amortization		(940	)		—			(940	)
Temporary impairment recapture		—			(67	)		67
Balance at December 31, 2012	$	3,206		$	1,100		$	2,106
Additions		780			—			780
Amortization		(778	)		—			(778	)
Temporary impairment recapture		—			(811	)		811
Balance at December 31, 2013	$	3,208		$	289		$	2,919