Mortgage Servicing Rights ("MSRs")

9 Months Ended

Sep. 30, 2012

Mortgage Servicing Rights [Abstract]

Mortgage Servicing Rights [Text Block]

6. Mortgage Servicing Rights (“MSRs”)

The Bank sells a predominant share of the mortgage loans it originates into the secondary market while retaining servicing of such loans. MSRs included in accrued interest and other assets in the condensed consolidated financial statements as of September 30, 2012 are accounted for at the lower of origination value less accumulated amortization or current fair value. The net carrying value of MSRs at September 30, 2012 was $986 thousand, which includes a valuation allowance of $139 thousand.

The following table presents activity in MSRs for the periods shown (dollars in thousands):

	Three months ended September 30,			Nine months ended September 30,
	2012			2012
Balance at beginning of period	$	774		$	-
Additions		391			1,209
Amortization		(40	)		(84	)
Change in valuation allowance		(139	)		(139	)
Balances at end of period	$	986		$	986

There were no significant transactions in MSRs during the year ended December 31, 2011.