MORTGAGE SERVICING RIGHTS (Tables)

12 Months Ended

Dec. 31, 2012

MORTGAGE SERVICING RIGHTS [Abstract]

Data and Assumptions Used in Fair Value Calculation

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 for the years ended December 31, 2012, 2011 and 2010 were as follows:

	2012		2011		2010
	(Dollars in thousands)
Unpaid principal balance	$	5,058,912	$	4,293,552	$	3,870,872
Weighted-average prepayment speed (CPR)		17.1		22.7		15.6
Discount rate (annual percentage)		10.8		10.3		10.3
Weighted-average coupon interest rate (percentage)		4.4		4.9		5.2
Weighted-average remaining maturity (months)		307.0		311.0		315.0
Weighted-average servicing fee (basis points)		27.1		28.0		28.4

Activity in Class of Mortgage Servicing Assets

The Company has 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 years indicated:

	2012			2011
	(In thousands)
Fair value at beginning of year	$	30,174		$	38,642
Additions:
Origination of servicing assets		18,531			11,692
Changes in fair value:
Due to payoffs/paydowns		(7,649	)		(6,180	)
Due to change in valuation inputs or assumptions used in the valuation model		(3,163	)		(13,966	)
Other changes in fair value		(11	)		(14	)
Fair value at end of year	$	37,882		$	30,174

- 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.

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