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SERVICING RIGHTS
 6 Months Ended
Jun. 30, 2013
Servicing Rights [Abstract]  
SERVICING RIGHTS
SERVICING RIGHTS
Mortgage Banking Activities. At June 30, 2013 and December 31, 2012, First Bank serviced mortgage loans for others totaling $1.30 billion and $1.27 billion, respectively. Changes in mortgage servicing rights for the three and six months ended June 30, 2013 and 2012 were as follows:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2013
 
2012
 
2013
 
2012
 
(dollars expressed in thousands)
Balance, beginning of period
$
10,652

 
9,713

 
9,152

 
9,077

Originated mortgage servicing rights
888

 
1,194

 
2,117

 
1,993

Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)
1,453

 
(1,316
)
 
2,307

 
(799
)
Other changes in fair value (2)
(652
)
 
(632
)
 
(1,235
)
 
(1,312
)
Balance, end of period
$
12,341

 
8,959

 
12,341

 
8,959

____________________
(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, 2013 and December 31, 2012, First Bank serviced United States Small Business Administration (SBA) loans for others totaling $147.1 million and $159.6 million, respectively. Changes in SBA servicing rights for the three and six months ended June 30, 2013 and 2012 were as follows:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2013
 
2012
 
2013
 
2012
 
(dollars expressed in thousands)
Balance, beginning of period
$
5,523

 
6,256

 
5,640

 
6,303

Originated SBA servicing rights
—

 
—

 
—

 
—

Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model (1)
(58
)
 
142

 
(36
)
 
289

Other changes in fair value (2)
(273
)
 
(175
)
 
(412
)
 
(369
)
Balance, end of period
$
5,192

 
6,223

 
5,192

 
6,223

____________________
(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.