Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2014

Mortgage Servicing Rights [Abstract]

Mortgage Servicing Rights

NOTE 7          Mortgage Servicing Rights

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of residential mortgage loans serviced for FHLB and FNMA were $279,865 and $272,280 at December 31, 2014 and 2013, respectively. The following is a summary of changes in the balance of MSRs: 

	Originated			Valuation
	MSR			Allowance			Total
Balance at January 1, 2012	$	1,286		$	(81	)	$	1,205
Additions from originated servicing		774			0			774
Amortization charged to earnings		(547	)		0			(547	)
Change in valuation allowance credited to earnings		0			(199	)		(199	)
Balance at December 31, 2012		1,513			(280	)		1,233
Additions from originated servicing		625			0			625
Amortization charged to earnings		(421	)		0			(421	)
Change in valuation allowance charged to earnings		0			259			259
Balance at December 31, 2013		1,717			(21	)		1,696
Additions from originated servicing		339			0			339
Amortization charged to earnings		(278	)		0			(278	)
Change in valuation allowance credited to earnings		0			(19	)		(19	)
Balance at December 31, 2014	$	1,778		$	(40	)	$	1,738

The table below summarizes the components of PSB’s mortgage banking income for the three years ended December 31.

	Years Ending December 31,
	2014			2013			2012
Cash gain on sale of mortgage loans	$	659		$	826		$	1,113
Originated mortgage servicing rights		339			625			774
Increase (decrease) in accrued mortgage rate lock commitments		(7	)		(78	)		31
Gain on sale of mortgage loans		991			1,373			1,918
Mortgage servicing fee income		691			674			649
Provision for representation and warranty losses on serviced loans		(8	)		(294	)		(0	)
Foreclosure servicing losses		(4	)		0			(26	)
Amortization of mortgage servicing rights		(278	)		(421	)		(547	)
Decrease (increase) in servicing right valuation allowance		(19	)		259			(199	)
Loan servicing fee income, net		382			218			(123	)
Mortgage banking income, net	$	1,373		$	1,591		$	1,795