MORTGAGE BANKING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2016

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

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
Mortgage loan portfolios serviced for:
FHLMC	$	896,553	$	878,300
FNMA		228,074		233,026

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

	For the Three Months Ended March 31,
	2016			2015
	(Dollars in thousands)
Balance, beginning of period	$	5,686		$	5,535
Originations		509			451
Amortized to expense		(468	)		(443	)
Balance, end of period		5,727			5,543
Less valuation allowance		(474	)		(219	)
Net balance	$	5,253		$	5,324

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

	For the Three Months Ended March 31,
	2016			2015
	(Dollars in thousands)
Balance, beginning of period	$	(39	)	$	(58	)
Impairment charges		(435	)		(161	)
Recoveries		—			—
Balance, end of period	$	(474	)	$	(219	)

Key economic assumptions in measuring the value of mortgage servicing rights at March 31, 2016, and December 31, 2015, were as follows:

	March 31, 2016	December 31, 2015
Weighted average prepayment rate	252 PSA	192 PSA
Weighted average life (in years)	3.43	3.47
Weighted average discount rate	9.00%	9.00%