Loan Servicing

12 Months Ended

Dec. 31, 2011

Loan Servicing [Abstract]

Loan Servicing

Note 8—Loan Servicing

Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of loans serviced for others totaled approximately $599.1 million and $463.5 million at December 31, 2011 and 2010.

The aggregate fair value of capitalized mortgage servicing rights was approximately $5.4 million, $3.7 million, and $3.5 million at December 31, 2011, 2010, and 2009. Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of measuring impairment, risk characteristics including product type, investor type and interest rates, were used to stratify the originated mortgage servicing rights.

	December 31 2011			December 31 2010			December 31 2009
Mortgage servicing rights
Balances, January 1	$	4,175		$	3,010		$	732
Servicing rights capitalized		1,866			2,000			2,807
Amortization of servicing rights		(992	)		(835	)		(529	)
		5,049			4,175			3,010
Impairment allowance		(856	)		(803	)		(139	)
Balances, December 31	$	4,193		$	3,372		$	2,871

During 2011, 2010 and 2009, the Bank recorded additional impairment of approximately $53,000, $664,000 and $135,000.