Loan Servicing

12 Months Ended

Dec. 31, 2011

Loan Servicing [Abstract]

Loan Servicing [Text Block]

NOTE 6 - LOAN SERVICING

Loans serviced for others are not included in the accompanying consolidated financial statements. The unpaid principal balance of loans serviced for others was $735,108,000 and $655,054,000 at December 31, 2011 and 2010, respectively. The balance of loans serviced for others related to servicing rights that have been capitalized was $732,591,000 and $651,629,000 at December 31, 2011 and 2010, respectively.

Unamortized cost of loan servicing rights included in accrued interest receivable and other assets on the consolidated balance sheet, for the years ended December 31 was as follows:

In thousands of dollars	2011			2010
Balance, January 1	$	4,763		$	3,775
Amount capitalized		1,791			1,922
Amount amortized		(1,149	)		(935	)
Change in valuation allowance		-			1
Balance, December 31	$	5,405		$	4,763

The fair value of servicing rights was as follows at December 31:

In thousands of dollars	2011		2010
Fair value, January 1		5,806	$	4,535
Fair value, December 31	$	7,331	$	5,806