(7)

Other Assets

A summary of major components of other assets follows:

	December 31,
(in thousands)	2016		2015

Cash surrender value of life insurance other than BOLI	$	13,543	$	12,473
Net deferred tax asset		12,896		12,365
Investments in tax credit related ventures		5,244		5,289
Other real estate owned and other foreclosed property		5,033		4,541
Other short term receivables		2,100		1,921
Core deposit intangible		1,405		1,601
Mortgage servicing rights (MSRs)		921		1,018
Goodwill		682		682
Investment in bank in expansion market		-		520
Other		7,553		5,806
Total	$	49,377	$	46,216

Bancorp maintains life insurance policies other than BOLI in conjunction with its non-qualified defined benefit retirement and non-qualified compensation plans.

Mortgage servicing rights (MSRs) are initially recognized at fair value when mortgage loans are sold and amortized in proportion to and over the period of estimated net servicing income, considering appropriate prepayment assumptions. MSRs are evaluated quarterly for impairment by comparing carrying value to fair value. Estimated fair values of MSRs at

December

31,

2016

and

2015

were

$2.7

million and

$3.1

million, respectively. Total outstanding principal balances of loans serviced by Bancorp were

$372.2

million and

$410.8

million at

December

31,

2016,

and

2015

respectively.

Changes in the net carrying amount of MSRs are shown in the following table.

(in thousands)	2016			2015

Balance at January 1	$	1,018		$	1,131
Originations		177			528
Amortization		(274	)		(641	)

Balance at December 31	$	921		$	1,018