MORTGAGE SERVICING RIGHTS

6 Months Ended

Jun. 30, 2014

Mortgage Loans on Real Estate [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

June 30, (in thousands)		2014		2013
Residential mortgage loans serviced for others	$	143,244	$	149,388
Fair value of mortgage servicing rights		1,638		1,661

Changes in mortgage servicing rights are as follows:

	Three months						Six months
Periods ended June 30, (in thousands)		2014			2013			2014			2013
Mortgage Servicing Rights
Balance, beginning of period	$	906		$	1,124		$	980		$	1,076
Originated		16			78			22			230
Amortization (1)		(85	)		(93	)		(165	)		(197	)
Balance, end of period		837			1,109			837			1,109
Valuation Allowance
Balance, beginning of period		(3	)		(5	)		(15	)		(38	)
Decrease in impairment reserve (1)		2			1			14			34
Balance, end of period		(1	)		(4	)		(1	)		(4	)
Loan servicing rights, net	$	836		$	1,105		$	836		$	1,105

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