Mortgage Servicing Rights

9 Months Ended

Sep. 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 September 30,						Nine months ended September 30,
	2012			2011			2012			2011
Mortgage servicing rights:
Balance at beginning of period	$	4,757		$	4,818		$	4,603		$	4,605
Additions		409			220			1,395			655
Change in fair value		(681	)		(800	)		(1,513	)		(1,022	)
Balance at end of period	$	4,485		$	4,238		$	4,485		$	4,238
Servicing, late and ancillary fees received	$	389		$	375		$	1,140		$	1,106
Balance of loans serviced at:
Beginning of period	$	628,674		$	584,113		$	598,185		$	573,300
End of period	$	642,110		$	582,011		$	642,110		$	582,011
Weighted-average prepayment speed (CPR)								20.9	%		21.0	%
Discount rate								10.0	%		9.0	%

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