XML 77 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
SERVICING RIGHTS
 9 Months Ended
Sep. 30, 2012
Servicing Rights [Abstract]  
Servicing Rights [Text Block]
SERVICING RIGHTS
Mortgage Banking Activities. At September 30, 2012 and December 31, 2011, First Bank serviced mortgage loans for others totaling $1.25 billion. Changes in mortgage servicing rights for the three and nine months ended September 30, 2012 and 2011 were as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2012
 
2011
 
2012
 
2011
 
(dollars expressed in thousands)
Balance, beginning of period
$
8,959

 
11,739

 
9,077

 
12,150

Originated mortgage servicing rights
1,329

 
617

 
3,322

 
2,230

Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)
(1,484
)
 
(3,497
)
 
(2,283
)
 
(4,572
)
Other changes in fair value (2)
(616
)
 
(470
)
 
(1,928
)
 
(1,419
)
Balance, end of period
$
8,188

 
8,389

 
8,188

 
8,389

____________________
(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 September 30, 2012 and December 31, 2011, First Bank serviced United States Small Business Administration (SBA) loans for others totaling $164.9 million and $178.5 million, respectively. Changes in SBA servicing rights for the three and nine months ended September 30, 2012 and 2011 were as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2012
 
2011
 
2012
 
2011
 
(dollars expressed in thousands)
Balance, beginning of period
$
6,223

 
7,087

 
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)
148

 
107

 
437

 
333

Other changes in fair value (2)
(465
)
 
(510
)
 
(834
)
 
(1,081
)
Balance, end of period
$
5,906

 
6,684

 
5,906

 
6,684

____________________
(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.