Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2011

Mortgage Servicing Rights [Abstract]

NOTE 4 - MORTGAGE SERVICING RIGHTS

Loans serviced for others are not included in the Consolidated Balance Sheets. The balance of loans serviced for others and the fair value of mortgage servicing rights are as follows:

June 30, (in thousands)	2011		2010
Residential mortgage loans serviced for others	$	101,584	$	78,119
Fair value of mortgage servicing rights		760		517

Changes in mortgage servicing rights are as follows:

	Three months						Six months
Periods ended June 30, (in thousands)	2011			2010			2011			2010
Loan Servicing Rights
Balance, beginning of period	$	701		$	424		$	683		$	427
Originated		29			84			105			112
Amortization (1)		(56	)		(43	)		(114	)		(74	)
Balance, end of period		674			465			674			465
Valuation Allowance
Balance, beginning of period		(8	)		(28	)		(10	)		(30	)
(Increase) decrease in impairment reserve (1)		(17	)		4			(15	)		6
Balance, end of period		(25	)		(24	)		(25	)		(24	)
Loan servicing rights, net	$	649		$	441		$	649		$	441

(1)	Amortization expense and changes in the impairment reserve are recorded in loan servicing fee income.