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Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2013

Mortgage Servicing Rights Disclosure [Abstract]

Schedule of change in carrying value of entity's mortgage servicing rights accounted for under the fair value measurement method

For the three months ended March 31, 2013 and 2012, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the fair value measurement method was as follows:



	Three Months Ended March 31,
(dollars in thousands)	2013			2012
Balance at Beginning of Period	$	4,761		$	7,131
Change in Fair Value:
Due to Change in Valuation Assumptions ¹	34			(313		)
Due to Payoffs	(359		)	(395		)
Total Changes in Fair Value of Mortgage Servicing Rights	(325		)	(708		)
Balance at End of Period	$	4,436		$	6,423


¹	Principally represents changes in discount rates and loan repayment rate assumptions, mostly due to changes in interest rates.

Schedule of change in carrying value of entity's mortgage servicing rights including fair value of mortgage servicing rights accounted for under the amortization method

For the three months ended March 31, 2013 and 2012, the change in the carrying value of the Company’s mortgage servicing rights accounted for under the amortization method was as follows:



	Three Months Ended March 31,
(dollars in thousands)	2013			2012
Balance at Beginning of Period	$	20,479		$	17,148
Servicing Rights that Resulted From Asset Transfers	2,250			1,008
Amortization	(625		)	(664		)
Balance at End of Period	$	22,104		$	17,492

Fair Value of Mortgage Servicing Rights Accounted for Under the Amortization Method
Beginning of Period	$	23,143		$	17,159
End of Period	$	26,564		$	20,406

Schedule of key data and assumptions used in estimating the fair value of entity's mortgage servicing rights

The key data and assumptions used in estimating the fair value of the Company’s mortgage servicing rights as of March 31, 2013 and December 31, 2012 were as follows:



	March 31, 2013		December 31, 2012
Weighted-Average Constant Prepayment Rate ¹	10.80	%	12.26	%
Weighted-Average Life (in years)	6.88		6.24
Weighted-Average Note Rate	4.48	%	4.59	%
Weighted-Average Discount Rate ²	5.85	%	5.57	%


¹	Represents annualized loan repayment rate assumption.


²	Derived from multiple interest rate scenarios that incorporate a spread to the London Interbank Offered Rate swap curve and market volatilities.

Schedule of sensitivity analysis of the entity's fair value of mortgage servicing rights to changes in certain key assumptions

A sensitivity analysis of the Company’s fair value of mortgage servicing rights to changes in certain key assumptions as of March 31, 2013 and December 31, 2012 is presented in the following table.



(dollars in thousands)	March 31, 2013			December 31, 2012
Constant Prepayment Rate
Decrease in fair value from 25 basis points (“bps”) adverse change	$	(431	)	$	(378	)
Decrease in fair value from 50 bps adverse change	(847		)	(746		)
Discount Rate
Decrease in fair value from 25 bps adverse change	(499		)	(439		)
Decrease in fair value from 50 bps adverse change	(983		)	(864		)

- Definition

Tabular disclosure of all information related to the key inputs and assumptions (including, at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses) used in measuring the fair value of assets or liabilities that relate to the transferor's continuing involvement with transferred financial assets, as of the balance sheet date.

+ References+ Details

- Definition

Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test.

+ References+ Details

- Definition

Tabular disclosure of the activity in the balance of servicing assets subsequently measured at amortized value (including a description of where changes in carrying value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (through purchases of servicing assets and servicing assets that result from transfers of financial assets), disposals, amortization, application of valuation allowances, other-than-temporary impairments, and other changes that affect the balance along with a description of those changes.

+ References+ Details

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References+ Details