Mortgage Servicing Rights

3 Months Ended

Mar. 31, 2012

Mortgage Servicing Rights [Abstract]

Note 6 – Mortgage Servicing Rights

The following table presents the changes in the Company's mortgage servicing rights ("MSR") for the three months ended March 31, 2012 and 2011:

(in thousands)


	Three months ended March 31,
	2012			2011
Balance, beginning of period	$	18,184		$	14,454
Additions for new mortgage servicing rights capitalized		2,948			1,334
Changes in fair value:
Due to changes in model inputs or assumptions⁽¹⁾		(94	)		129
Other⁽²⁾		(828	)		(312	)

Balance, end of period	$	20,210		$	15,605

(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 March 31, 2012 and December 31, 2011 was as follows:

(dollars in thousands)


	March 31, 2012			December 31, 2011
Balance of loans serviced for others	$	2,191,215		$	2,009,849
MSR as a percentage of serviced loans		0.92	%		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 $1.4 million for the three months ended March 31, 2012, as compared to $1.1 million for the three months ended March 31, 2011.

Key assumptions used in measuring the fair value of MSR as of March 31, 2012 and December 31, 2011 were as follows:


	March 31, 2012			December 31, 2011
Constant prepayment rate		19.88	%		20.39	%
Discount rate		8.59	%		8.60	%
Weighted average life (years)		4.6			4.5