SERVICING RIGHTS

3 Months Ended

Mar. 31, 2012

Servicing Rights [Abstract]

Servicing Rights [Text Block]

NOTE 6–SERVICING RIGHTS

Mortgage Banking Activities. At March 31, 2012 and December 31, 2011, First Bank serviced mortgage loans for others totaling $1.23 billion and $1.25 billion, respectively. Changes in mortgage servicing rights for the three months ended March 31, 2012 and 2011 were as follows:

	Three Months Ended
	March 31,
	2012			2011
	(dollars expressed in thousands)
Balance, beginning of period	$	9,077		12,150
Originated mortgage servicing rights		799		1,118
Change in fair value resulting from changes in valuation inputs or
assumptions used in valuation model (1)		517		199
Other changes in fair value (2)		(680	)	(577	)
Balance, end of period	$	9,713		12,890

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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. At March 31, 2012 and December 31, 2011, First Bank serviced United States Small Business Administration (SBA) loans for others totaling $174.8 million and $178.5 million, respectively. Changes in SBA servicing rights for the three months ended March 31, 2012 and 2011 were as follows:

	Three Months Ended
	March 31,
	2012			2011
	(dollars expressed in thousands)
Balance, beginning of period	$	6,303		7,432
Originated SBA servicing rights		—		—
Change in fair value resulting from changes in valuation inputs or
assumptions used in valuation model (1)		147		227
Other changes in fair value (2)		(194	)	(338	)
Balance, end of period	$	6,256		7,321

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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.