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Mortgage Servicing Rights
12 Months Ended
Dec. 31, 2011
Mortgage Servicing Rights [Abstract]  
Mortgage Servicing Rights
MORTGAGE SERVICING RIGHTS
    
Information with respect to the Company’s mortgage servicing rights follows:
Year Ended December 31,
2011
 
2010
 
2009
Balance at beginning of year
$
13,811

 
$
18,732

 
$
27,788

Sales of mortgage servicing rights

 
(4,528
)
 
(3,022
)
Purchases of mortgage servicing rights

 

 
8

Originations of mortgage servicing rights
2,864

 
4,222

 
9,681

Amortization expense
(3,225
)
 
(4,615
)
 
(7,568
)
Write-off of permanent impairment

 

 
(8,155
)
Balance at end of year
13,450

 
13,811

 
18,732

Less valuation reserve
(1,895
)
 
(620
)
 
(1,407
)
Balance at end of year
$
11,555

 
$
13,191

 
$
17,325

 
 
 
 
 
 
Principal balance of serviced loans underlying mortgage servicing rights
$
1,803,303

 
$
1,594,697

 
$
2,394,331

Mortgage servicing rights as a percentage of serviced loans
0.64
%
 
0.83
%
 
0.72
%
    
At December 31, 2011, the estimated fair value and weighted average remaining life of the Company’s mortgage servicing rights were $11,910 and 3.6 years, respectively. The fair value of mortgage servicing rights was determined using discount rates ranging from 8.5% to 21.0% and monthly prepayment speeds ranging from 1.0% to 6.2% depending upon the risk characteristics of the underlying loans. The Company recorded additional impairment of $1,275 in 2011 and recorded impairment reversals of $787 and $7,224 in 2010 and 2009, respectively. Permanent impairment of $8,155 was charged against the carrying value of mortgage servicing rights in 2009. No permanent impairment was recorded in 2011 or 2010.
The Company sold mortgage servicing rights with a carrying value of $4,528 and $3,022 in 2010 and 2009, respectively. Losses of $1,525 and $48 on the sales were recorded as other expense in 2010 and 2009, respectively. In conjunction with the sales, the Company entered into agreements with the purchaser whereby the Company continues to sub-service the loans underlying the sold mortgage servicing rights.