MORTGAGE SERVICING RIGHTS

3 Months Ended

Sep. 30, 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:

September 30, (in thousands)	2013		2012
Residential mortgage loans serviced for others	$	146,726	$	141,834
Fair value of mortgage servicing rights		1,550		989

Changes in mortgage servicing rights are as follows:

	Three months						Nine months
Periods ended September 30, (in thousands)	2013			2012			2013			2012
Loan Servicing Rights
Balance, beginning of period	$	1,109		$	916		$	1,076		$	772
Originated		31			197			261			503
Amortization (1)		(101	)		(115	)		(298	)		(277	)
Balance, end of period		1,039			998			1,039			998
Valuation Allowance
Balance, beginning of period		(4	)		(123	)		(38	)		(22	)
(Increase) decrease in impairment reserve (1)		(38	)		12			(4	)		(89	)
Balance, end of period		(42	)		(111	)		(42	)		(111	)
Loan servicing rights, net	$	997		$	887		$	997		$	887

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