MORTGAGE BANKING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2014

Mortgage Banking [Abstract]

Principal Balance of Mortgage Servicing Rights

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

	2014		2013
Mortgage loan portfolios serviced for:
FHLMC	$	821,609	$	827,146
FNMA		259,463		283,340

Capitalized Mortgage Servicing Rights

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

	2014			2013			2012
	(Dollars in thousands)
Balance, beginning of year	$	5,941		$	6,186		$	6,375
Originations		1,281			1,898			2,395
Amortized to expense		(1,687	)		(2,143	)		(2,584	)
Balance, end of year		5,535			5,941			6,186
Less valuation allowance		(58	)		—			(680	)
Net balance	$	5,477		$	5,941		$	5,506

Valuation Allowance for Mortgage Servicing Rights

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

	2014			2013			2012
	(Dollars in thousands)
Balance, beginning of year	$	—		$	(680	)	$	(1,785	)
Impairment charges		(60	)		—			(1,179	)
Recoveries		2			680			2,284
Balance, end of year	$	(58	)	$	—		$	(680	)

Key Economic Assumptions in Measuring Value of Mortgage Servicing Rights

Key economic assumptions used in measuring the value of mortgage servicing rights at December 31, 2014 and 2013 were as follows:

	2014			2013
Weighted average prepayment rate		219 PSA			182 PSA
Weighted average life (in years)		3.61			3.94
Weighted average discount rate		8	%		8	%