XML 78 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Mortgage Banking Activities
 3 Months Ended
Mar. 31, 2013
Mortgage Banking Activities [Abstract]  
MORTGAGE BANKING ACTIVITIES

7. MORTGAGE BANKING ACTIVITIES

Mortgage loans serviced for others, which are not reported in United Community’s assets, totaled $1.1 billion at March 31, 2013 and December 31, 2012. Mortgage banking income is comprised of gains recognized on the sale of loans and changes in fair value of mortgage banking derivatives.

Mortgage loans serviced for others are not reported as assets. The principal balance of these loans are as follows:

 

                 
    March 31, 2013     December 31, 2012  

Mortgage loan portfolios serviced for:

                

FHLMC

   $ 819,209     $ 817,108  

FNMA

     311,026       316,142  

Escrow balances are maintained at the FHLB in connection with serviced loans totaling $2.2 million and $1.7 million at March 31, 2013 and December 31, 2012, respectively.

Activity for capitalized mortgage servicing rights, included in other assets, was as follows:

 

                 
    Three Months Ended
March 31, 2013		     Three Months Ended
March 31, 2012		  
    (Dollars in thousands)  

Balance, beginning of year

   $ 5,506     $ 6,375  

Originations

     1,282       531  

Amortized to expense

     (660 )      (641 ) 
   

 

 

    

 

 

  

Balance, end of period

     6,128       6,265  

Less valuation allowance

     (245 )      (837 ) 
   

 

 

    

 

 

  

Net balance

   $ 5,883     $ 5,428  
   

 

 

    

 

 

  

Activity in the valuation allowance for mortgage servicing rights was as follows:

 

                 
    Three Months Ended
March 31, 2013		     Three Months Ended
March 31, 2012		  
    (Dollars in thousands)  

Balance, beginning of year

   $ (680 )    $ (1,785 ) 

Impairment charges

     —         —    

Recoveries

     435       948  
   

 

 

    

 

 

  

Balance, end of period

   $ (245 )    $ (837 ) 
   

 

 

    

 

 

  

The fair value of mortgage servicing rights as of March 31, 2013, was approximately $7.6 million and at December 31, 2012, the fair value was approximately $6.8 million.

Key economic assumptions in measuring the value of mortgage servicing rights at March 31, 2013, and December 31, 2012, were as follows:

 

         
    March 31, 2013   December 31, 2012

Weighted average prepayment rate

   347 PSA   401 PSA

Weighted average life (in years)

   3.97   3.93

Weighted average discount rate

   8.00%   8.00%