MORTGAGE SERVICING RIGHTS

12 Months Ended

Dec. 31, 2013

Mortgage Loans on Real Estate [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

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

Years ended December 31, (in thousands)		2013		2012
Residential mortgage loans serviced for others	$	146,258	$	145,934
Fair value of mortgage servicing rights		1,579		1,159

Changes in mortgage servicing rights are as follows:

Years ended December 31, (in thousands)		2013			2012			2011
Loan Servicing Rights
Balance, beginning of period	$	1,075		$	772		$	683
Originated		294			682			329
Amortization (1)		(389	)		(379	)		(240	)
Balance, end of period		980			1,075			772
Valuation Allowance
Balance, beginning of period		(38	)		(22	)		(10	)
Decrease (Increase) in impairment reserve (1)		23			(16	)		(12	)
Balance, end of period		(15	)		(38	)		(22	)
Loan servicing rights, net	$	965		$	1,037		$	750

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