SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2012

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

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.

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.

- 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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