MORTGAGE SERVICING RIGHTS

6 Months Ended

Jun. 30, 2015

Mortgage Loans on Real Estate [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

June 30, (in thousands)		2015		2014
Residential mortgage loans serviced for others	$	135,831	$	143,244
Fair value of mortgage servicing rights		1,383		1,638

Changes in mortgage servicing rights are as follows:

	Three months						Six months
Periods ended June 30, (in thousands)		2015			2014			2015			2014
Mortgage Servicing Rights
Balance, beginning of period	$	637		$	906		$	694		$	980
Originated		40			16			102			22
Amortization (1)		(78	)		(85	)		(197	)		(165	)
Balance, end of period		599			837			599			837
Valuation Allowance
Balance, beginning of period		(9	)		(3	)		—			(15	)
Decrease (increase) in impairment reserve (1)		7			2			(2	)		14
Balance, end of period		(2	)		(1	)		(2	)		(1	)
Loan servicing rights, net	$	597		$	836		$	597		$	836

(1) Amortization expense and changes in the impairment reserve are recorded in mortgage servicing, net.