Loan Servicing, Mortgage Origination, and Loans Held for Sale (Tables)

12 Months Ended

Dec. 31, 2013

Loan Servicing, Mortgage Origination, and Loans Held for Sale

Summary of changes in the fair value of MSRs and its offsetting hedge

(Dollars in thousands)	Year Ended December 31, 2013
Increase in fair value of MSRs	$	1,058
Decay of MSRs		(886	)
Losses related to derivatives		(681	)
Net effect on Statements of Income	$	(509	)

Schedule of analysis of the activity in the MSRs

(Dollars in thousands)	Year Ended December 31, 2013
Balance at beginning of the period	$	—
Additions:
Carrying value at merger date of July 26, 2013		19,156
Servicing assets that resulted from transfers of financial assets		1,401
Increase in fair value due to change in valuation inputs or assumptions		1,058
Decay in fair value:
Due to increases in principal paydowns or runoff		(886	)
Carrying value at end of period	$	20,729

Schedule of characteristics and sensitivity analysis of the MSR

(Dollars in thousands)	Residential Mortgage Servicing Rights
Composition of residential loans serviced for others
Fixed-rate mortgage loans		99.0	%
Adjustable-rate mortgage loans		1.0	%
Total		100.0	%
Weighted average life		6.91 years
Constant Prepayment rate (CPR)		10.2	%
Weighted average discount rate		10.1	%
Effect on fair value due to change in interest rates
25 basis point increase	$	1,059
50 basis point increase		1,964
25 basis point decrease		(1,248	)
50 basis point decrease		(2,255	)