Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2012

Mortgage Servicing Rights [Abstract]

NOTE 10. MORTGAGE SERVICING RIGHTS

The following table presents the changes in the Company’s mortgage servicing rights (“MSR”) for the years ended December 31, 2012, 2011 and 2010:


(in thousands)
	2012		2011		2010
Balance, beginning of year	$	18,184	$	14,454	$	12,625
Additions for new mortgage servicing rights capitalized		17,710		6,720		5,645
Acquired mortgage servicing rights		-		-		62
Changes in fair value:
Due to changes in model inputs or assumptions⁽¹⁾		(4,651)		(858)		(1,598)
Other⁽²⁾		(3,815)		(2,132)		(2,280)
Balance, end of year	$	27,428	$	18,184	$	14,454

(1)	Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.

(2)	Represents changes due to collection/realization of expected cash flows over time.

Information related to our serviced loan portfolio as of December 31, 2012, 2011, and 2010 is as follows:


(dollars in thousands)
	December 31, 2012		December 31, 2011		December 31, 2010
Balance of loans serviced for others	$	3,162,080	$	2,009,849	$	1,603,414
MSR as a percentage of serviced loans		0.87%		0.90%		0.90%

The amount of contractually specified servicing fees, late fees and ancillary fees earned, recorded in mortgage banking revenue on the Consolidated Statements of Income, was $6.6 million, $4.7 million and $3.9 million for the years ended December 31, 2012, 2011 and 2010.