XML 55 R14.htm IDEA: XBRL DOCUMENT

Loan Servicing

9 Months Ended

Sep. 30, 2015

Note 6. Loan Servicing

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans as of September 30, 2015 and December 31, 2014, were $320,669 and $332,075, respectively, and consist of one- to four-family residential real estate loans. These loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and Federal National Mortgage Association.

Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in advances from borrowers for taxes and insurance, were $3,176 and $2,347 at September 30, 2015 and December 31, 2014, respectively.

Mortgage servicing rights are summarized as follows for the nine months ended September 30, 2015 and 2014:

	September 30,			September 30,
	2015			2014

Balance at beginning of year, net	$	1,886		$	1,952
Mortgage servicing rights capitalized		251			181
Amortization expense		(275	)		(239	)
Valuation provision change		-			-
Balance at end of period, net	$	1,862		$	1,894

The estimated fair value of mortgage servicing rights was $2,143 and $2,578 at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015 and December 31, 2014, the valuation allowance was $15 and $15, respectively.