XML 122 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Mortgage Servicing Rights
 6 Months Ended
Jun. 30, 2013
Goodwill And Intangible Assets Disclosure [Abstract]  
Mortgage Servicing Rights
Note 5. Mortgage Servicing Rights

The Corporation has originated mortgage servicing rights which are included in other intangible assets on the consolidated balance sheets. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income on a basis similar to the interest method and an accelerated amortization method for loan payoffs. Mortgage servicing rights are subject to impairment testing on a quarterly basis. The aggregate fair value of these rights was $6.5 million and $4.2 million at June 30, 2013 and December 31, 2012, respectively. The fair value of mortgage servicing rights was determined using discount rates ranging from 5.0% to 10.0% at June 30, 2013 and December 31, 2012.

 

Changes in the mortgage servicing rights balance are summarized as follows:

 

     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
(Dollars in thousands)    2013     2012     2013     2012  

Beginning of period

    $ 4,723      $ 3,067      $ 4,152      $ 2,739   

Servicing rights capitalized

      871        609        1,639        1,036   

Amortization of servicing rights

      (381 )      (373 )      (812 )      (684 ) 

Changes in valuation allowance

      14        (27 )      248        185   
  

 

 

    

 

 

    

 

 

    

 

 

  

End of period

    $ 5,227      $ 3,276      $ 5,227      $ 3,276   
  

 

 

    

 

 

    

 

 

    

 

 

  

Mortgage loans serviced for others

    $ 705,999      $ 491,536      $ 705,999      $ 491,536   
  

 

 

    

 

 

    

 

 

    

 

 

  

Activity in the valuation allowance for mortgage servicing rights was as follows:

 

     Three Months Ended
June 30,		     Six Months Ended
June 30,		  
(Dollars in thousands)    2013     2012     2013     2012  

Valuation allowance, beginning of period

    $ (263 )    $ (581 )    $ (497 )    $ (793 ) 

Additions

      —          (27 )      —          —     

Reductions

      14        —          248        185   

Direct write-downs

      —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Valuation allowance, end of period

    $ (249 )    $ (608 )    $ (249 )    $ (608 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The estimated amortization expense of mortgage servicing rights for the remainder of 2013 and the succeeding fiscal years is as follows:

 

Year (Dollars in thousands)

    Amount  

Remainder of 2013

    $ 423   

2014

      769   

2015

      654   

2016

      548   

2017

      445   

Thereafter

      2,388