Commercial Mortgage Banking (Tables)

6 Months Ended

Jun. 30, 2014

The total unpaid principal balance of loans the Company was servicing for various institutional investors was as follows:

Summary of Changes in Carrying Value of Mortgage Servicing Rights

The following table summarizes the changes in carrying value of MSRs for the six months ended June 30, 2014 and 2013:



(Expressed in thousands)
	Six Months Ended June 30,
	2014			2013
Balance at beginning of period	$	28,879		$	26,983
Originations ⁽¹⁾	2,474			4,638
Purchases	52			1,165
Disposals ⁽¹⁾	(776		)	(4,583		)
Amortization expense	(1,514		)	(538		)
Balance at end of period	$	29,115		$	27,665


(1)	Includes refinancings

Schedule of Amortization Expense

Servicing rights are amortized using the straight-line method over 10 years. Future amortization expense is as follows:



(Expressed in thousands)
	Originated MSRs		Purchased MSRs		Total MSRs
2014	$	1,452	$	704	$	2,156
2015	2,905		1,407		4,312
2016	2,895		1,393		4,288
2017	2,868		1,364		4,232
2018	2,768		1,339		4,107
Thereafter	7,376		2,644		10,020
	$	20,264	$	8,851	$	29,115

Components of Mortgage Servicing Rights Fees

The Company receives fees during the course of servicing the mortgage loans. The amount of these fees for the three and six months ended June 30, 2014 and 2013 were as follows:



(Expressed in thousands)
	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Servicing fees	$	1,376	$	1,244	$	2,720	$	2,452
Late fees	5		12		5		75
Ancillary fees	75		64		168		121
Total MSR fees	$	1,456	$	1,320	$	2,893	$	2,648

(Expressed in thousands)

As of June 30, 2014

As of December 31, 2013

Unpaid principal balance of loans