NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables)

3 Months Ended

Mar. 31, 2016

Changes in Servicing Assets

The changes in servicing assets are shown below:
		Quarter ended
		March 31,		March 31,
		2016		2015
			(In thousands)
Balance at beginning of period		$	24,282	$	22,838
Capitalization of servicing assets			1,161		1,073
Amortization			(798)		(856)
Adjustment to fair value			27		(38)
Other (1)			20		(44)
Balance at end of period		$	24,692	$	22,973
(1)	Amount represents the adjustment to fair value related to the repurchase of loans serviced for others.

Changes in Impairment Allowance

Changes in the impairment allowance were as follows:
	Quarter ended
	March 31,		March 31,
	2016		2015
		(In thousands)
Balance at beginning of period	$	136	$	55
Temporary impairment charges		27		58
Recoveries		(54)		(20)
Balance at end of period	$	109	$	93

Components of Net Servicing Income

	The components of net servicing income are shown below:
		Quarter ended
		March 31,		March 31,
		2016		2015
			(In thousands)
Servicing fees		$	1,862	$	1,764
Late charges and prepayment penalties			142		190
Adjustment for loans repurchased			20		(44)
Other (1)			-		(89)
Servicing income, gross			2,024		1,821
Amortization and impairment of servicing assets			(771)		(894)
Servicing income, net		$	1,253	$	927
(1)	Mainly consisted of compensatory fees imposed by GSEs.

Weighted-Averages of Key Economic Assumptions in Valuation Model

	(Dollars in thousands)
Carrying amount of servicing assets	$	24,692
Fair value	$	27,784
Weighted-average expected life (in years)		8.58
Constant prepayment rate (weighted-average annual rate)		10.06%
Decrease in fair value due to 10% adverse change	$	890
Decrease in fair value due to 20% adverse change	$	1,731
Discount rate (weighted-average annual rate)		10.66%
Decrease in fair value due to 10% adverse change	$	1,201
Decrease in fair value due to 20% adverse change	$	2,309