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SERVICING RIGHTS
 12 Months Ended
Dec. 31, 2012
Servicing Rights [Abstract]  
SERVICING RIGHTS
SERVICING RIGHTS
Mortgage Banking Activities. At December 31, 2012 and 2011, the Company serviced mortgage loans for others totaling $1.27 billion and $1.25 billion, respectively. Borrowers’ escrow balances held by the Company on such loans were $7.9 million and $8.0 million at December 31, 2012 and 2011, respectively. Changes in mortgage servicing rights for the years ended December 31, 2012 and 2011 were as follows:
 
2012
 
2011
 
(dollars expressed in thousands)
Balance, beginning of year
$
9,077

 
12,150

Originated mortgage servicing rights
4,887

 
3,450

Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)
(2,089
)
 
(4,280
)
Other changes in fair value (2)
(2,723
)
 
(2,243
)
Balance, end of year
$
9,152

 
9,077

 
(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 December 31, 2012 and 2011, the Company serviced SBA loans for others totaling $159.6 million and $178.5 million, respectively. Changes in SBA servicing rights for the years ended December 31, 2012 and 2011 were as follows:
 
2012
 
2011
 
(dollars expressed in thousands)
Balance, beginning of year
$
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)
434

 
150

Other changes in fair value (2)
(1,097
)
 
(1,279
)
Balance, end of year
$
5,640

 
6,303

 
(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.