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MORTGAGE BANKING ACTIVITIES (Tables)
9 Months Ended
Sep. 30, 2016
Mortgage Banking [Abstract]  
Principal Balances of Mortgage Servicing Rights

Mortgage loans serviced for others are not reported as assets. The principal balances of these loans are as follows:

 

 

September 30, 2016

 

  

December 31, 2015

 

 

(Dollars in thousands)

 

Mortgage loan portfolios serviced for:

 

 

 

  

 

 

 

FHLMC

$

941,865

  

  

$

878,300

  

FNMA

 

214,849

  

  

 

233,026

  

 

Capitalized Mortgage Servicing Rights

Activity for capitalized mortgage servicing rights, included in other assets, was as follows:

 

 

 

For the Three Months Ended

September 30,

 

 

For the Nine Months Ended

September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(Dollars in thousands)

 

Balance, beginning of period

 

$

5,813

 

 

$

5,611

 

 

$

5,686

 

 

$

5,535

 

Originations

 

 

708

 

 

 

450

 

 

 

1,870

 

 

 

1,432

 

Amortized to expense

 

 

(525

)

 

 

(449

)

 

 

(1,560

)

 

 

(1,355

)

Balance, end of period

 

 

5,996

 

 

 

5,612

 

 

 

5,996

 

 

 

5,612

 

Less valuation allowance

 

 

(741

)

 

 

(150

)

 

 

(741

)

 

 

(150

)

Net balance

 

$

5,255

 

 

$

5,462

 

 

$

5,255

 

 

$

5,462

 

 

Valuation Allowance for Mortgage Servicing Rights

Activity in the valuation allowance for mortgage servicing rights was as follows:

 

 

 

For the Three Months Ended

September 30,

 

 

For the Nine Months Ended

September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(Dollars in thousands)

 

Balance, beginning of period

 

$

(766

)

 

$

(12

)

 

$

(39

)

 

$

(58

)

Impairment charges

 

 

 

 

 

(138

)

 

 

(727

)

 

 

(299

)

Recoveries

 

 

25

 

 

 

 

 

 

25

 

 

 

207

 

Balance, end of period

 

$

(741

)

 

$

(150

)

 

$

(741

)

 

$

(150

)

 

Key Economic Assumptions in Measuring Value of Mortgage Servicing Rights

Key economic assumptions in measuring the value of mortgage servicing rights at September 30, 2016, and December 31, 2015, were as follows:

 

 

September 30, 2016

 

December 31, 2015

Weighted average prepayment rate

286 PSA

 

192 PSA

Weighted average life (in years)

3.43

 

3.47

Weighted average discount rate

9.00%

 

9.00%