MORTGAGE SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2012

MORTGAGE SERVICING RIGHTS [Abstract]

Data and Assumptions Used in Fair Value Calculation

Mortgage servicing rights ("MSRs"), which are recognized as a separate asset on the date the corresponding mortgage loan is sold, are recorded at fair value as determined at each accounting period end. An estimate of the fair value of the Company's MSRs is determined utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. Data and assumptions used in the fair value calculation related to MSRs as of the dates indicated were as follows:

	September 30,				December 31,
	2012		2011		2011
	(Dollars in thousands)
Unpaid principal balance	$	4,841,075	$	4,143,880	$	4,293,552
Weighted-average prepayment speed (CPR)		18.4		22.7		22.7
Discount rate (annual percentage)		10.8		10.3		10.3
Weighted-average coupon interest rate (percentage)		4.5		5.1		4.9
Weighted-average remaining maturity (months)		307.0		314.0		311.0
Weighted-average servicing fee (basis points)		27.4		28.1		28.0

Activity in Class of Mortgage Servicing Assets

The Company has only one class of mortgage servicing asset comprised of closed end loans for one-to-four family residences, secured by first liens. The following table presents the activity in this class for the periods indicated:

	2012			2011
	(In thousands)
Fair value as of January 1	$	30,174		$	38,642
Additions:
Origination of servicing assets		13,385			7,938
Changes in fair value:
Due to payoffs/paydowns		(5,644	)		(4,435	)
Due to change in valuation inputs or assumptions
used in the valuation model		(3,346	)		(12,975	)
Other changes in fair value		(7	)		(11	)
Fair value as of September 30	$	34,562		$	29,159