MORTGAGE SERVICING RIGHTS

12 Months Ended

Dec. 31, 2014

Mortgage Loans on Real Estate [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 5 - 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:

December 31, (in thousands)		2014		2013
Residential mortgage loans serviced for others	$	138,106	$	146,258
Fair value of mortgage servicing rights		1,568		1,579

Changes in mortgage servicing rights are as follows:

Years ended December 31, (in thousands)		2014			2013			2012
Mortgage Servicing Rights
Balance, beginning of period	$	980		$	1,075		$	772
Originated		17			294			682
Amortization (1)		(303	)		(389	)		(379	)
Balance, end of period		694			980			1,075
Valuation Allowance
Balance, beginning of period		(15	)		(38	)		(22	)
Decrease (increase) in impairment reserve (1)		15			23			(16	)
Balance, end of period		—			(15	)		(38	)
Mortgage servicing rights, net	$	694		$	965		$	1,037

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