MORTGAGE SERVICING RIGHTS

3 Months Ended

Sep. 30, 2012

Accounting Policies [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

Loans serviced for others are not included in the Consolidated Balance Sheets. The balance of loans serviced for others and the fair value of mortgage servicing rights are as follows:

September 30, (in thousands)	2012	2011
Residential mortgage loans serviced for others	$     141,834	$     105,256
Fair value of mortgage servicing rights	989	695

Changes in mortgage servicing rights are as follows:

	Three months		Nine months
Periods ended September 30, (in thousands)	2012	2011	2012	2011
Loan Servicing Rights
Balance, beginning of period	$       916	$        674	$         772	$         683
Originated	197	75	504	181
Amortization (1)	(115)	(50)	(278)	(165)
Balance, end of period	998	699	998	699
Valuation Allowance
Balance, beginning of period	(123)	(25)	(22)	(10)
(Increase) decrease in impairment reserve (1)	12	(65)	(89)	(80)
Balance, end of period	(111)	(90)	(111)	(90)
Loan servicing rights, net	$       887	$       609	$         887	$         609

(1) Amortization expense and changes in the impairment reserve are recorded in loan servicing fee income.