7. Residential Mortgage-Banking Activities

Residential mortgage loans serviced for the benefit of others amounted to $386.0 million and $388.7 million at March 31, 2013 and December 31, 2012, respectively, and are excluded from the Consolidated Balance Sheets since they are not owned by the Company.

The book value of residential mortgage-servicing rights was $2.6 million at both March 31, 2013 and December 31, 2012. Residential mortgage-servicing rights are included in Other assets in the Consolidated Balance Sheets. The estimated fair value of residential mortgage-servicing rights was $3.2 million and $3.1 million at March 31, 2013 and December 31, 2012, respectively.

Residential Mortgage-Servicing Rights Activity

The following table summarizes the changes in residential mortgage-servicing rights at the dates and for the periods indicated (in thousands).


	For the three months ended March 31,
	2013			2012
Mortgage-servicing rights portfolio, net of valuation allowance, beginning of period	$	2,584		$	2,586
Capitalized mortgage-servicing rights		208			184
Mortgage-servicing rights portfolio amortization and impairment		(217	)		(207	)

Mortgage-servicing rights portfolio, net of valuation allowance, end of period	$	2,575		$	2,563

Valuation Allowance

The following table summarizes the activity in the valuation allowance for impairment of the residential mortgage-servicing rights portfolio at the dates and for the periods indicated (in thousands).


	For the three months ended March 31,
	2013		2012
Valuation allowance, beginning of period	$	41	$	39
Additions charged to (reduction credited from) operations		12		(1	)

Valuation allowance, end of period	$	53	$	38