6. Secondary Market Mortgage Activities

The following summarizes secondary market mortgage activities for the years ended December 31, 2015, 2014, and 2013:


	2015		2014		2013

Loans originated for resale, net of principal pay downs	$	15,171	$	10,271	$	19,883
Proceeds from sales of loans held for sale		14,927		10,227		22,252
Net gains on sales of loans held for sale		630		596		808
Loan servicing fees		390		473		375

Total loans serviced for others were $107,165, $112,002, and $114,428 at December 31, 2015, 2014, and 2013, respectively.

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2015, 2014, and 2013:


	2015			2014			2013
Balance, beginning of year	$	856		$	904		$	714
Additions		380			240			350
Servicing rights acquired		0			0			83
Amortization		(274	)		(288	)		(243	)

Balance, end of year	$	962		$	856		$	904

The fair value of mortgage servicing rights is based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income. The fair value of mortgage servicing rights was $964, $896, and $915 at December 31, 2015, 2014, and 2013, respectively. No valuation allowance is deemed necessary at December 31, 2015, 2014, or 2013. The fair value of interest rate lock commitments and forward commitments to sell loans was not material at December 31, 2015 or 2014.