Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2013

Mortgage Servicing Rights [Abstract]

A summary of the change in the balance of mortgage servicing assets during the three months ended March 31, 2013 and 2012 were as follows:

	Three Months Ended March 31,
	2013			2012
	(in thousands)
Beginning balance, at fair value	$	2,306		$	2,437
Servicing rights that result from transfers of financial assets		217			185
Changes in fair value:
Due to changes in model inputs or assumptions(1)		135			384
Other(2)		(262	)		(215	)
Ending balance, at fair value	$	2,396		$	2,791

__________________

(1) Represents changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates

(2) Represents changes due to collection or realization of expected cash flows over time.

Mortgage service rights assumptions

The key economic assumptions used in determining the fair value of mortgage servicing rights at the dates indicated are as follows:

	At March 31,
	2013			2012
Prepayment speed (PSA)		310	%		272	%
Weighted-average life (years)		4.5			4.7
Yield to maturity discount rate		10.0	%		9.0	%

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

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