MORTGAGE SERVICING RIGHTS

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

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

Years ended December 31, (in thousands)	2012	2011
Residential mortgage loans serviced for others	$ 145,934	$ 114,800
Fair value of mortgage servicing rights	1,159	865

Changes in mortgage servicing rights are as follows:

Years ended December 31, (in thousands)	2012	2011	2010
Loan Servicing Rights
Balance, beginning of period	$ 772	$ 683	$ 427
Originated	682	329	453
Amortization (1)	(379)	(240)	(197)
Balance, end of period	1,075	772	683
Valuation Allowance
Balance, beginning of period	(22)	(10)	(30)
(Increase) decrease in impairment reserve (1)	(16)	(12)	20
Balance, end of period	(38)	(22)	(10)
Loan servicing rights, net	$ 1,037	$ 750	$ 673

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