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MORTGAGE SERVICING RIGHTS
3 Months Ended
Mar. 31, 2013
Accounting Policies [Abstract]  
MORTGAGE SERVICING RIGHTS

 

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:

March 31, (in thousands)     2013       2012  
Residential mortgage loans serviced for others   $ 148,705     $ 125,086  
Fair value of mortgage servicing rights     1,739       754  

Changes in mortgage servicing rights are as follows:

      Three months
Periods ended March 31, (in thousands)     2013       2012  
Loan Servicing Rights                
Balance, beginning of period   $ 1,075     $ 772  
Originated     152       177  
Amortization (1)     (104 )     (77 )
Balance, end of period     1,123       872  
Valuation Allowance                
Balance, beginning of period     (38 )     (22 )
Decrease (increase) in impairment reserve (1)     33       (92 )
Balance, end of period     (5 )     (114 )
Loan servicing rights, net   $ 1,119     $ 758  

 

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