SERVICING RIGHTS

6 Months Ended

Jun. 30, 2012

Servicing Rights [Abstract]

Servicing Rights [Text Block]

NOTE 6–SERVICING RIGHTS

Mortgage Banking Activities. At June 30, 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 and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012			2011		2012		2011
	(dollars expressed in thousands)
Balance, beginning of period	$	9,713		12,890		9,077		12,150
Originated mortgage servicing rights		1,194		495		1,993		1,613
Change in fair value resulting from changes in valuation inputs or
assumptions used in valuation model (1)		(1,316	)	(1,274	)	(799	)	(1,075	)
Other changes in fair value (2)		(632	)	(372	)	(1,312	)	(949	)
Balance, end of period	$	8,959		11,739		8,959		11,739

(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 June 30, 2012 and December 31, 2011, First Bank serviced United States Small Business Administration (SBA) loans for others totaling $171.2 million and $178.5 million, respectively. Changes in SBA servicing rights for the three and six months ended June 30, 2012 and 2011 were as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2012			2011		2012		2011
	(dollars expressed in thousands)
Balance, beginning of period	$	6,256		7,321		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)		142		(1	)	289		226
Other changes in fair value (2)		(175	)	(233	)	(369	)	(571	)
Balance, end of period	$	6,223		7,087		6,223		7,087

(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.