MORTGAGE BANKING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2015

Mortgage Banking [Abstract]

Principal Balance of Mortgage Servicing Rights

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

	March 31, 2015		December 31, 2014
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	834,600	$	821,609
FNMA		253,592		259,463

Capitalized Mortgage Servicing Rights

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

	Three Months Ended March 31, 2015			Three Months Ended March 31, 2014
	(Dollars in thousands)
Balance, beginning of year	$	5,535		$	5,941
Originations		451			254
Amortized to expense		(443	)		(392	)
Balance, end of period		5,543			5,803
Less valuation allowance		(219	)		(1	)
Net balance	$	5,324		$	5,802

Valuation Allowance for Mortgage Servicing Rights

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

	Three Months Ended March 31, 2015			Three Months Ended March 31, 2014
	(Dollars in thousands)
Balance, beginning of year	$	(58)		$	—
Impairment charges		(161	)		(1	)
Recoveries		—			—
Balance, end of period	$	(219	)	$	(1	)

Key Economic Assumptions in Measuring Value of Mortgage Servicing Rights

Key economic assumptions in measuring the value of mortgage servicing rights at March 31, 2015, and December 31, 2014, were as follows:

	March 31, 2015	December 31, 2014
Weighted average prepayment rate	235 PSA	219 PSA
Weighted average life (in years)	3.55	3.61
Weighted average discount rate	8.00%	8.00%