MORTGAGE SERVICING RIGHTS

12 Months Ended

Dec. 31, 2016

Transfers and Servicing of Financial Assets [Text Block]

NOTE 5 — MORTGAGE SERVICING RIGHTS

The mortgage loans sold and serviced for others are not included in the Consolidated Balance Sheets. The unpaid principal balances of mortgage loans serviced for others were $99,294,000 and $98,619,000 at December 31, 2016 and 2015, respectively. The balances of amortized capitalized mortgage servicing rights, included in other assets were $431,000 at December 31, 2016 and $493,000 at December 31, 2015. The amount of servicing income earned was $245,000, $239,000, and $223,000 at December 31, 2016, 2015, and 2014, respectively. Amortization recognized in relation to mortgage servicing rights was $136,000, $132,000, and $123,000 at December 31, 2016, 2015, and 2014, respectively. Both income and amortization are included in service charges and fees on the Consolidated Statements of Income.

The following summarizes mortgage servicing rights capitalized and amortized for the years 2016, 2015 and 2014:

(Dollars in thousands)
	2016		2015		2014
Balance, January 1	$	493	$	481	$	521
Servicing asset additions		74		144		83
Amortization		(136)		(132)		(123)
Balance, December 31	$	431	$	493	$	481

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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