Mortgage Banking

9 Months Ended

Sep. 30, 2012

Mortgage Banking [Abstract]

Mortgage Banking [Text Block]

9. Mortgage Banking

Net revenues from the sales and servicing of mortgage loans consisted of the following:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(in thousands)						(in thousands)
Gain from sale of mortgage loans	$	2,888		$	2,128		$	7,890		$	3,954
Mortgage loans servicing revenue (expense):
Mortgage loans servicing revenue		824			852			2,499			2,529
Amortization of mortgage servicing rights		(892	)		(553	)		(2,610	)		(1,349	)
Mortgage servicing rights valuation adjustments		(600	)		(1,072	)		(855	)		(585	)
		(668	)		(773	)		(966	)		595
Net revenue from sale and servicing of mortgage loans	$	2,220		$	1,355		$	6,924		$	4,549

The unpaid principal balance of residential mortgage loans serviced for third parties was $1.3 billion for September 30, 2012 and December 31, 2011.

Activity for capitalized mortgage servicing rights and the related valuation allowance follows for the three and six months ended September 30, 2012 and 2011:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(in thousands)						(in thousands)
Mortgage servicing assets:
Balance at beginning of period	$	10,059		$	10,477		$	10,219		$	10,602
Loans sold, servicing retained		969			446			2,527			1,117
Amortization		(892	)		(553	)		(2,610	)		(1,349	)
Carrying value before valuation allowance at end of period		10,136			10,370			10,136			10,370
Valuation allowance:
Balance at beginning of period		(1,784	)		(638	)		(1,529	)		(1,125	)
Impairment recovery (charges)		(600	)		(1,072	)		(855	)		(585	)
Balance at end of period		(2,384	)		(1,710	)		(2,384	)		(1,710	))
Net carrying value of MSRs at end of period	$	7,752		$	8,660		$	7,752		$	8,660
Fair value of MSRs at end of period	$	7,752		$	8,660		$	7,752		$	8,660

Amortization of mortgage servicing rights is computed based on payments and payoffs of the related mortgage loans serviced.