MORTGAGE SERVICING RIGHTS (Tables)

3 Months Ended

Mar. 31, 2013

MORTGAGE SERVICING RIGHTS [Abstract]

Data and Assumptions Used in Fair Value Calculation

Mortgage servicing rights ("MSRs"), which are recognized as a separate asset on the date the corresponding mortgage loan is sold, are recorded at fair value as determined at each accounting period end. An estimate of the fair value of the Company's MSRs is determined utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. Data and assumptions used in the fair value calculation related to MSRs as of the dates indicated were as follows:

	March 31,				December 31,
	2013		2012		2012
	(Dollars in thousands)
Unpaid principal balance	$	5,236,852	$	4,413,139	$	5,058,912
Weighted-average prepayment speed (CPR)		15.4		18.1		17.1
Discount rate (annual percentage)		10.8		10.3		10.8
Weighted-average coupon interest rate (percentage)		4.3		4.8		4.4
Weighted-average remaining maturity (months)		306.0		310.0		307.0
Weighted-average servicing fee (basis points)		26.9		27.8		27.1

Activity in Class of Mortgage Servicing Assets

The Company has only one class of mortgage servicing asset comprised of closed end loans for one-to-four family residences, secured by first liens. The following table presents the activity in this class for the periods indicated:

	2013			2012
	(In thousands)
Fair value as of January 1	$	37,882		$	30,174
Additions:
Origination of servicing assets		4,268			3,525
Changes in fair value:
Due to payoffs/paydowns		(1,705	)		(1,726	)
Due to change in valuation inputs or assumptions
used in the valuation model		1,037			3,697
Other changes in fair value		(4	)		(2	)
Fair value as of March 31	$	41,478		$	35,668

- 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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