9.	Mortgage Banking

Net revenues from the sales and servicing of mortgage loans consisted of the following:

	Three Months Ended March 31,
	2015		2014
	(In Thousands)
Gain from sale of mortgage loans	$	1,285	$	641
Mortgage loans servicing revenue (expense):
Mortgage loans servicing revenue		875		905
Amortization of mortgage servicing rights		(411)		(292)
Mortgage servicing rights valuation adjustments		26		(7)
		490		606

Net revenue from sale and servicing of mortgage loans	$	1,775	$	1,247

The unpaid principal balance of residential mortgage loans serviced for third parties was $1.34 billion at March 31, 2015 and $1.35 billion at December 31, 2014.

Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three months ended March 31, 2015 and 2014:

	March 31, 2015		March 31, 2014
	(In Thousands)
Mortgage servicing assets:
Balance at beginning of period	$	9,923	$	10,133
Loans sold, servicing retained		320		207
Amortization		(411)		(292)
Carrying value before valuation allowance at end of period		9,832		10,048

Valuation allowance:
Balance at beginning of period		(911)		(1,027)
Impairment (expense) recovery		26		(7)
Balance at end of period		(885)		(1,034)
Net carrying value of MSRs at end of period	$	8,947	$	9,014
Fair value of MSRs at end of period	$	9,180	$	9,628

Amortization of mortgage servicing rights is computed based on payments and payoffs of the related mortgage loans serviced. Estimates of future amortization expense are not easily estimable.

The Company established an accrual for secondary market buy-back losses that resulted in a reversal of $58,000 in the first quarter of 2015 mainly due to no actual losses being recorded in the first quarter of 2015. In the first quarter of 2014, the Company accrued $92,000 which was mostly offset by reversing $67,000 of accrued expenses related to the Freddie Mac post-foreclosure review that began in the third quarter of 2013 and was reversed in 2014 with no losses resulting