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Mortgage Servicing Rights (Tables)
6 Months Ended
Jun. 30, 2011
Mortgage Servicing Rights  
Schedule of change in fair value of entity's mortgage servicing rights accounted for under the fair value measurement method

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(dollars in thousands)

 

2011

 

2010

 

2011

 

2010

 

Balance at Beginning of Period

 

$

9,692

 

$

14,807

 

$

10,226

 

$

15,332

 

Changes in Fair Value:

 

 

 

 

 

 

 

 

 

Due to Change in Valuation Assumptions 1

 

(553

)

(554

)

(487

)

(646

)

Due to Paydowns and Other 2

 

(287

)

(413

)

(887

)

(846

)

Total Changes in Fair Value of Mortgage Servicing Rights

 

(840

)

(967

)

(1,374

)

(1,492

)

Balance at End of Period

 

$

8,852

 

$

13,840

 

$

8,852

 

$

13,840

 

 

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

2  Principally represents changes due to loan payoffs.

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, net of a valuation allowance

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

(dollars in thousands)

 

2011

 

2010

 

2011

 

2010

 

Balance at Beginning of Period

 

$

16,227

 

$

11,275

 

$

15,153

 

$

10,638

 

Servicing Rights that Resulted From Asset Transfers

 

473

 

896

 

1,962

 

1,841

 

Amortization

 

(480

)

(365

)

(895

)

(673

)

Balance at End of Period

 

$

16,220

 

$

11,806

 

$

16,220

 

$

11,806

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Beginning of Period

 

$

22,661

 

$

16,453

 

$

20,340

 

$

14,853

 

End of Period

 

$

21,483

 

$

15,044

 

$

21,483

 

$

15,044

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

 

 

 

 

June 30,

 

December 31,

 

 

 

2011

 

2010

 

Weighted-Average Constant Prepayment Rate 1

 

13.31

%

13.71

%

Weighted-Average Life (in years)

 

6.06

 

5.90

 

Weighted-Average Note Rate

 

4.94

%

5.02

%

Weighted-Average Discount Rate 2

 

7.19

%

7.29

%

 

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

 

 

 

 

June 30,

 

December 31,

 

(dollars in thousands)

 

2011

 

2010

 

Constant Prepayment Rate

 

 

 

 

 

Decrease in fair value from 25 basis points (“bps”) adverse change

 

$

(337

)

$

(338

)

Decrease in fair value from 50 bps adverse change

 

(667

)

(671

)

Discount Rate

 

 

 

 

 

Decrease in fair value from 25 bps adverse change

 

(423

)

(421

)

Decrease in fair value from 50 bps adverse change

 

(836

)

(830

)