MORTGAGE SERVICING RIGHTS

6 Months Ended

Jun. 30, 2016

Mortgage Loans on Real Estate [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

June 30, (in thousands)		2016		2015
Residential mortgage loans serviced for others	$	128,141	$	135,831
Fair value of mortgage servicing rights		961		1,383

Changes in mortgage servicing rights are as follows:

		Three months						Six months
Periods ended June 30, (in thousands)		2016			2015			2016			2015
Mortgage Servicing Rights
Balance, beginning of period	$	456		$	637		$	487		$	694
Originated		24			40			45			102
Amortization (1)		(64	)		(78	)		(116	)		(197	)
Balance, end of period		416			599			416			599
Valuation Allowance
Balance, beginning of period		(24	)		(9	)		(4	)		—
(Increase) decrease in impairment reserve (1)		(1	)		7			(21	)		(2	)
Balance, end of period		(25	)		(2	)		(25	)		(2	)
Loan servicing rights, net	$	391		$	597		$	391		$	597

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