Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2013

Summarized Corporation's Activity Related to MSRs

The following tables summarize the Corporation’s activity related to mortgage servicing rights (“MSRs”) for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,
(dollars in thousands)	2013			2012
Balance, beginning of period	$	4,790		$	4,220
Additions		174			385
Amortization		(187	)		(243	)
Recovery		—			—
Impairment		(33	)		(105	)
Balance, end of period	$	4,744		$	4,257
Fair value	$	5,622		$	4,279
Loans serviced for others	$	627,058		$	583,859

	Nine Months Ended September 30,
(dollars in thousands)	2013			2012
Balance, beginning of period	$	4,491		$	4,041
Additions		883			1,016
Amortization		(617	)		(718	)
Recovery		91			109
Impairment		(104	)		(191	)
Balance, end of period	$	4,744		$	4,257
Fair value	$	5,622		$	4,279
Loans serviced for others	$	627,058		$	583,859

Other MSR Information

As of September 30, 2013 and December 31, 2012, key economic assumptions and the sensitivity of the current fair value of MSRs to immediate 10 and 20 percent adverse changes in those assumptions are as follows:

(dollars in thousands)	September 30, 2013			December 31, 2012
Fair value amount of MSRs	$	5,622		$	4,638
Weighted average life (in years)		6.1			4.8
Prepayment speeds (constant prepayment rate)*		11.9			15.9
Impact on fair value:
10% adverse change	$	(220	)	$	(230	)
20% adverse change	$	(426	)	$	(442	)
Discount rate		10.50	%		10.50	%
Impact on fair value:
10% adverse change	$	(220	)	$	(158	)
20% adverse change	$	(424	)	$	(306	)

* Represents the weighted average prepayment rate for the life of the MSR asset.