6. Secondary Market Mortgage Activities

The following summarizes secondary market mortgage activities for the years ended December 31, 2016, 2015, and 2014:


	2016		2015		2014

Loans originated for resale, net of principal pay downs	$	31,255	$	15,171	$	10,271
Proceeds from sales of loans held for sale		33,045		14,927		10,227
Net gains on sales of loans held for sale		818		630		596
Loan servicing fees		421		390		473

Total loans serviced for others were $121,938, $107,165, and $112,002 at December 31, 2016, 2015, and 2014, respectively.

The following summarizes activity for capitalized mortgage servicing rights for the years ended December 31, 2016, 2015, and 2014:


	2016			2015			2014
Balance, beginning of year	$	962		$	856		$	904
Additions		200			380			240
Servicing rights acquired		367			0			0
Amortization		(138	)		(274	)		(288	)

Balance, end of year	$	1,391		$	962		$	856

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 $1,391, $964, and $896 at December 31, 2016, 2015, and 2014, respectively. No valuation allowance is deemed necessary at December 31, 2016, 2015, or 2014. The fair value of interest rate lock commitments and forward commitments to sell loans was not material at December 31, 2016 or 2015.