Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2012

Mortgage Servicing Rights [Abstract]

Mortgage Servicing Rights

Note 10 – Mortgage Servicing Rights

The following tables summarize the activity in, and the main assumptions we used to determine the fair value of mortgage servicing rights for the periods indicated (in thousands):

	Three months ended June 30,						Six months ended June 30,
	2012			2011			2012			2011
Mortgage servicing rights:
Balance at beginning of period	$	4,784		$	4,808		$	4,603		$	4,605
Additions		437			172			987			435
Change in fair value		(464	)		(162	)		(833	)		(222	)
Balance at end of period	$	4,757		$	4,818		$	4,757		$	4,818
Servicing, late and ancillary fees received	$	379		$	370		$	751		$	731
Balance of loans serviced at:
Beginning of period	$	615,867		$	583,625		$	598,185		$	573,300
End of period	$	628,674		$	584,113		$	628,674		$	584,113
Weighted-average prepayment speed (CPR)								18.5	%		14.5	%
Discount rate								9.0	%		9.0	%

The changes in fair value of MSRs that occurred during the three and six months ended June 30, 2012 and 2011 were mainly due to principal reductions and changes in estimated life of the MSRs.