MORTGAGE SERVICING RIGHTS

3 Months Ended

Mar. 31, 2014

Mortgage Loans on Real Estate [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

March 31, (in thousands)		2014		2013
Residential mortgage loans serviced for others	$	144,197	$	148,705
Fair value of mortgage servicing rights		1,646		1,739

Changes in mortgage servicing rights are as follows:

	Three months
Periods ended March 31, (in thousands)		2014			2013
Mortgage Servicing Rights
Balance, beginning of period	$	980		$	1,075
Originated		5			152
Amortization (1)		(79	)		(103	)
Balance, end of period		906			1,124
Valuation Allowance
Balance, beginning of period		(15	)		(38	)
Decrease in impairment reserve (1)		11			33
Balance, end of period		(4	)		(5	)
Loan servicing rights, net	$	902		$	1,119

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