MORTGAGE SERVICING RIGHTS (Tables)

3 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Loans serviced for others and fair value of mortgage servicing rights

September 30, (in thousands)	2013		2012
Residential mortgage loans serviced for others	$	146,726	$	141,834
Fair value of mortgage servicing rights		1,550		989

Changes in mortgage servicing rights

Changes in mortgage servicing rights are as follows:

	Three months						Nine months
Periods ended September 30, (in thousands)	2013			2012			2013			2012
Loan Servicing Rights
Balance, beginning of period	$	1,109		$	916		$	1,076		$	772
Originated		31			197			261			503
Amortization (1)		(101	)		(115	)		(298	)		(277	)
Balance, end of period		1,039			998			1,039			998
Valuation Allowance
Balance, beginning of period		(4	)		(123	)		(38	)		(22	)
(Increase) decrease in impairment reserve (1)		(38	)		12			(4	)		(89	)
Balance, end of period		(42	)		(111	)		(42	)		(111	)
Loan servicing rights, net	$	997		$	887		$	997		$	887

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