Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2012

The following table presents the changes in the Company’s mortgage servicing rights (“MSR”) for the three and six months ended June 30, 2012 and 2011:


(in thousands)
	Three months ended				Six months ended
	June 30,				June 30,
	2012		2011		2012		2011
Balance, beginning of period	$	20,210	$	15,605	$	18,184	$	14,454
Additions for new mortgage servicing rights capitalized		3,333		1,073		6,281		2,407
Changes in fair value:
Due to changes in model inputs or assumptions⁽¹⁾		(969)		(103)		(1,063)		25
Other⁽²⁾		(61)		(225)		(889)		(536)
Balance, end of period	$	22,513	$	16,350	$	22,513	$	16,350

Information related to our serviced loan portfolio as of June 30, 2012 and December 31, 2011 was as follows:


(dollars in thousands)
	June 30, 2012		December 31, 2011
Balance of loans serviced for others	$	2,423,572	$	2,009,849
MSR as a percentage of serviced loans		0.93%		0.90%

The amount of contractually specified servicing fees, late fees and ancillary fees earned, recorded in mortgage banking revenue on the Condensed Consolidated Statements of Income, was $1.5 million and $2.9 million for the three and six months ended June 30, 2012, as compared to $1.1 million and $2.3 million for the three and six months ended June 30, 2011.

Key assumptions used in measuring the fair value of MSR as of June 30, 2012 and December 31, 2011 are as follows: