SERVICING RIGHTS

12 Months Ended

Dec. 31, 2011

Servicing Rights [Abstract]

Servicing Rights [Text Block]

Note 7 – Servicing Rights

Mortgage Banking Activities. At December 31, 2011 and 2010, the Company serviced mortgage loans for others totaling $1.25 billion and $1.27 billion, respectively. Borrowers’ escrow balances held by the Company on such loans were $8.0 million and $7.5 million at December 31, 2011 and 2010, respectively. Changes in mortgage servicing rights for the years ended December 31, 2011 and 2010 were as follows:

	2011			2010
	(dollars expressed in thousands)
Balance, beginning of year	$	12,150		12,130
Originated mortgage servicing rights		3,450		4,469
Change in fair value resulting from changes in valuation inputs or        assumptions used in valuation model (1)		(4,280	)	(1,167	)
Other changes in fair value (2)		(2,243	)	(3,282	)
Balance, end of year	$	9,077		12,150

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(1)	The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.
(2)	Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.

Other Servicing Activities. AtDecember 31, 2011 and 2010, the Company serviced SBA loans for others totaling $178.5 million and $200.4 million, respectively. Changes in SBA servicing rights for the years ended December 31, 2011 and 2010 were as follows:

	2011			2010
	(dollars expressed in thousands)
Balance, beginning of year	$	7,432		8,478
Originated SBA servicing rights		—		63
Change in fair value resulting from changes in valuation inputs or        assumptions used in valuation model (1)		150		683
Other changes in fair value (2)		(1,279	)	(1,792	)
Balance, end of year	$	6,303		7,432

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(1)	The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions, primarily due to changes in interest rates.
(2)	Other changes in fair value reflect changes due to the collection/realization of expected cash flows over time.