Investment in Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2011

Investment in Mortgage Servicing Rights [Abstract]

Investment in Mortgage Servicing Rights

(10) Investment in Mortgage Servicing Rights
A summary of mortgage servicing activity is as follows:

	Six Months ended			Twelve Months ended			Six Months ended
(Dollars in thousands)	June 30, 2011			December 31, 2010			June 30, 2010
Mortgage servicing rights:
Balance, beginning of period	$	1,586			1,315			1,315
Originations		147			753			333
Amortization		(213	)		(482	)		(219	)
Balance, end of period	$	1,520			1,586			1,429
Fair value of mortgage servicing rights	$	2,297			2,263			2,331

All of the loans being serviced are single family loans serviced for the Federal National Mortgage Association (FNMA) under the mortgage-backed security program or the individual loan sale program. Loans are sold under general representations and warranties and based on insignificant requests for repurchase, a liability has not been recorded for repurchase requests from FNMA. The following is a summary of the risk characteristics of the loans being serviced at June 30, 2011.

	Loan Principal		Weighted Average			Weighted Average
(Dollars in thousands)	Balance		Interest Rate			Remaining Term		Number of Loans
Original term 30 year fixed rate	$	218,415		5.20	%		299		1,879
Original term 15 year fixed rate		97,291		4.63	%		123		1,445
Adjustable rate		693		3.13	%		269		9

The gross carrying amount of mortgage servicing rights and the associated accumulated amortization at June 30, 2011 is presented in the table below.

	Gross		Accumulated			Unamortized
(Dollars in thousands)	Carrying Amount		Amortization			Intangible Assets
Mortgage servicing rights	$	4,067		(2,547	)		1,520
Total	$	4,067		(2,547	)		1,520

The following table indicates the estimated future amortization expense for mortgage servicing rights:

	Mortgage
(Dollars in thousands)	Servicing Rights
Year ended December 31,
2011	$	180
2012		330
2013		312
2014		282
2015		236
Thereafter		180

Projections of amortization are based on existing asset balances and the existing interest rate environment as of June 30, 2011. The Company’s actual experiences may be significantly different depending upon changes in mortgage interest rates and other market conditions.