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Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 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
September 30,
 
Nine Months Ended
September 30,
(dollars in thousands)
2013

 
2012

 
2013

 
2012

Balance at Beginning of Period
$
4,158

 
$
5,459

 
$
4,761

 
$
7,131

Change in Fair Value:
 

 
 

 
 

 
 

Due to Change in Valuation Assumptions 1
(68
)
 
(5
)
 
(4
)
 
(886
)
Due to Payoffs
(271
)
 
(338
)
 
(938
)
 
(1,129
)
Total Changes in Fair Value of Mortgage Servicing Rights
(339
)
 
(343
)
 
(942
)
 
(2,015
)
Balance at End of Period
$
3,819

 
$
5,116

 
$
3,819

 
$
5,116

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 and nine months ended September 30, 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
September 30,
 
Nine Months Ended
September 30,
(dollars in thousands)
2013

 
2012

 
2013

 
2012

Balance at Beginning of Period
$
23,473

 
$
17,795

 
$
20,479

 
$
17,148

Servicing Rights that Resulted From Asset Transfers
1,343

 
1,747

 
5,596

 
3,716

Amortization
(620
)
 
(678
)
 
(1,879
)
 
(2,000
)
Balance at End of Period
$
24,196

 
$
18,864

 
$
24,196

 
$
18,864

 
 
 
 
 
 
 
 
Fair Value of Mortgage Servicing Rights Accounted for
 Under the Amortization Method
 

 
 

 
 

 
 

Beginning of Period
$
28,442

 
$
18,937

 
$
23,143

 
$
17,159

End of Period
$
28,693

 
$
20,241

 
$
28,693

 
$
20,241
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 September 30, 2013 and December 31, 2012 were as follows:
 
September 30,
2013

 
December 31, 2012

Weighted-Average Constant Prepayment Rate 1
8.77
%
 
12.26
%
Weighted-Average Life (in years)
7.74

 
6.24

Weighted-Average Note Rate
4.32
%
 
4.59
%
Weighted-Average Discount Rate 2
7.71
%
 
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 September 30, 2013 and December 31, 2012 is presented in the following table.
(dollars in thousands)
September 30,
2013

 
December 31,
2012

Constant Prepayment Rate
 

 
 

Decrease in fair value from 25 basis points (“bps”) adverse change
$
(394
)
 
$
(378
)
Decrease in fair value from 50 bps adverse change
(779
)
 
(746
)
Discount Rate
 

 
 

Decrease in fair value from 25 bps adverse change
(465
)
 
(439
)
Decrease in fair value from 50 bps adverse change
(918
)
 
(864
)