SERVICING RIGHTS

3 Months Ended

Mar. 31, 2014

Mortgage Banking Activities. At March 31, 2014 and December 31, 2013, the Company serviced mortgage loans for others totaling $1.31 billion and $1.33 billion, respectively. Changes in mortgage servicing rights for the three months ended March 31, 2014 and 2013 were as follows:



	Three Months Ended
	March 31,
	2014			2013
	(dollars expressed in thousands)
Balance, beginning of period	$	14,211		9,152
Originated mortgage servicing rights	455			1,229
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model ⁽¹⁾	151			854
Other changes in fair value ⁽²⁾	(422		)	(583	)
Balance, end of period	$	14,395		10,652

____________________


(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 March 31, 2014 and December 31, 2013, the Company serviced United States Small Business Administration (SBA) loans for others totaling $135.8 million and $139.1 million, respectively. Changes in SBA servicing rights for the three months ended March 31, 2014 and 2013 were as follows:



	Three Months Ended
	March 31,
	2014			2013
	(dollars expressed in thousands)
Balance, beginning of period	$	4,643		5,640
Originated SBA servicing rights	—			—
Change in fair value resulting from changes in valuation inputs or assumptions used in valuation model ⁽¹⁾	175			22
Other changes in fair value ⁽²⁾	(136		)	(139	)
Balance, end of period	$	4,682		5,523

____________________


(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

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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