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Loan Servicing
 12 Months Ended
Dec. 31, 2014
Transfers and Servicing of Financial Assets [Abstract]  
Loan Servicing
Loan Servicing
Park serviced sold mortgage loans of $1,265 million at December 31, 2014, compared to $1,326 million at December 31, 2013 and $1,311 million at December 31, 2012. At December 31, 2014, $7.0 million of the sold mortgage loans were sold with recourse compared to $10.7 million at December 31, 2013. Management closely monitors the delinquency rates on the mortgage loans sold with recourse. As of December 31, 2014 and 2013, management had established a reserve of $379,000 and $1.0 million, respectively, to account for future loan repurchases.
 
The amortization of mortgage loan servicing rights is included within “Other service income”. Generally, mortgage servicing rights are capitalized and amortized on an individual sold loan basis. When a sold mortgage loan is paid off, the related mortgage servicing rights are fully amortized.
 
Activity for mortgage servicing rights and the related valuation allowance follows:
 
December 31 (In thousands)
 
2014
 
2013
 
2012
Mortgage servicing rights:
 
 
 
 
 
 
Carrying amount, net, beginning of year
 
$
9,013

 
$
7,763

 
$
9,301

Additions
 
1,026

 
2,436

 
3,399

Amortization
 
(1,631
)
 
(2,479
)
 
(3,634
)
Change in valuation allowance
 
205

 
1,293

 
(1,303
)
Carrying amount, net, end of year
 
$
8,613

 
$
9,013

 
$
7,763

Valuation allowance:
 
 
 
 
 
 
Beginning of year
 
$
1,031

 
$
2,324

 
$
1,021

Change in valuation allowance
 
(205
)
 
(1,293
)
 
1,303

End of year
 
$
826

 
$
1,031

 
$
2,324



The fair value of mortgage servicing rights was $9.1 million and $9.5 million at December 31, 2014 and 2013, respectively. The fair value of mortgage servicing rights at December 31, 2014 was established using a discount rate of 10% and constant prepayment speeds ranging from 5.7% to 22.3%. The fair value of mortgage servicing rights at December 31, 2013 was established using a discount rate of 10% and constant prepayment speeds ranging from 6.6% to 22.5%.

Servicing fees included in other service income were $3.5 million, $3.6 million and $3.6 million for the years ended December 31, 2014, 2013 and 2012, respectively.