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Mortgage Servicing Rights
 6 Months Ended
Jun. 30, 2013
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights
Mortgage Servicing Rights
(In Thousands)
The Company retains the right to service certain mortgage loans that it sells to secondary market investors. These mortgage servicing rights, included in “Other assets” on the Consolidated Balance Sheets, are recognized as a separate asset on the date the corresponding mortgage loan is sold. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. These servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors. Mortgage servicing rights were carried at amortized cost at June 30, 2013 and December 31, 2012.
Impairment losses on mortgage servicing rights are recognized to the extent by which the unamortized cost exceeds fair value. No impairment losses on mortgage servicing rights were recognized in earnings for the three or six months ended June 30, 2013 and 2012.
Changes in the Company’s mortgage servicing rights were as follows:
 
Balance at January 1, 2013
$
4,233

Capitalization
3,278

Amortization
(330
)
 
 
Balance at June 30, 2013
$
7,181



Data and key economic assumptions related to the Company’s mortgage servicing rights as of June 30, 2013 are as follows:
 
Unpaid principal balance
$
679,604

 
 
Weighted-average prepayment speed (CPR)
2.76
%
Estimated impact of a 10% increase
$
(505
)
Estimated impact of a 20% increase
(670
)
 
 
Discount rate
11.26
%
Estimated impact of a 10% increase
$
(580
)
Estimated impact of a 20% increase
(810
)
 
 
Weighted-average coupon interest rate
3.22
%
Weighted-average servicing fee (basis points)
25.09

Weighted-average remaining maturity (in months)
288