MORTGAGE SERVICING RIGHTS

9 Months Ended

Sep. 30, 2014

Mortgage Loans on Real Estate [Abstract]

MORTGAGE SERVICING RIGHTS

NOTE 4 - MORTGAGE SERVICING RIGHTS

September 30, (in thousands)		2014		2013
Residential mortgage loans serviced for others	$	140,893	$	146,726
Fair value of mortgage servicing rights		1,624		1,550

Changes in mortgage servicing rights are as follows:

	Three months						Nine months
Periods ended September 30, (in thousands)		2014			2013			2014			2013
Mortgage Servicing Rights
Balance, beginning of period	$	838		$	1,109		$	980		$	1,076
Originated		(17	)		31			5			261
Amortization (1)		(56	)		(101	)		(220	)		(298	)
Balance, end of period		765			1,039			765			1,039
Valuation Allowance
Balance, beginning of period		(1	)		(4	)		(15	)		(38	)
Decrease in impairment reserve (1)		1			(38	)		14			(4	)
Balance, end of period		—			(42	)		(1	)		(42	)
Loan servicing rights, net	$	765		$	997		$	765		$	997

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