SERVICING RIGHTS (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Servicing Assets at Fair Value [Table Text Block]

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.

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.

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

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