MORTGAGE OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of assumptions used to estimate fair value of mortgage servicing rights

Key assumptions used in measuring the fair value of mortgage servicing rights as of June 30, 2014 and December 31,2013 were as follows:

	June 30, 2014			December 31, 2013

Constant prepayment rate		11.37	%		9.09	%
Discount rate		10.05	%		10.05	%
Weighted average life (years)		6.55			7.05

Schedule of mortgage servicing rights assets

The following table summarizes the Company’s mortgage servicing rights assets as of June 30, 2014 and December 31, 2013. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets.

	(in thousands)
	December 31, 2013		Additions		Reductions			June 30, 2014

Mortgage servicing rights	$	1,968	$	88	$	(172	)	$	1,884
Valuation allowance		—		—		—			—
Mortgage servicing rights, net of valuation allowance	$	1,968	$	88	$	(172	)	$	1,884