MORTGAGE SERVICING RIGHTS

3 Months Ended

Mar. 31, 2015

Mortgage Loans on Real Estate [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

March 31, (in thousands)		2015		2014
Residential mortgage loans serviced for others	$	137,186	$	144,197
Fair value of mortgage servicing rights		1,355		1,646

Changes in mortgage servicing rights are as follows:

		Three months
Periods ended March 31, (in thousands)		2015			2014
Mortgage Servicing Rights
Balance, beginning of period	$	694		$	980
Originated		62			5
Amortization (1)		(119	)		(79	)
Balance, end of period	$	637		$	906
Valuation Allowance
Balance, beginning of period	$	1		$	(15	)
Decrease in impairment reserve (1)		(10	)		11
Balance, end of period		(9	)		(4	)
Loan servicing rights, net	$	628		$	902

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