Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2013

The following table presents an analysis of the changes in mortgage servicing rights and related allowance as of the dates indicated:



	2013			2012
	(in thousands)
Mortgage servicing rights, gross:
Beginning balance, January 1	$	39,956		$	30,409
Originated servicing	34,504			19,727
Amortization	(13,772		)	(10,180		)
Ending balance, December 31	60,688			39,956
Allowance, mortgage servicing rights:
Beginning balance, January 1	$	7,536		$	7,307
Additions	117			3,560
Recoveries	(7,065		)	(3,331		)
Ending balance, December 31	588			7,536
Mortgage servicing rights, net	$	60,100		$	32,420

The following table presents the unpaid principal balances of loans serviced for others as of the dates indicated:



	December 31,
	2013		2012
	(in thousands)
Balance of loans serviced for others
Residential	$	5,899,019	$	4,132,570
Commercial real estate	928,214		983,782
Commercial	519,055		132,903
Total	$	7,346,288	$	5,249,255

Valuation inputs used in determining the fair value of MSR included:



	December 31,
	2013		2012
Key assumptions
Weighted average prepayment speed	9.3	%	18.3	%
Weighted average discount rate	10.2	%	10.1	%

Qualitative information regarding the fair value measurements for Level 3 financial instruments are as follows:



	December 31, 2013
	Method	Inputs
Loans	Income, Market, Comparable Sales, Discounted Cash Flows	External appraised values; probability weighting of broker price opinions; management assumptions regarding market trends or other relevant factors; selling costs ranging from 4.5% to 9%.
OREO	Income, Market, Comparable Sales, Discounted Cash Flows	External appraised values; probability weighting of broker price opinions; management assumptions regarding market trends or other relevant factors; selling costs ranging from 4.5% to 9%.
Mortgage servicing rights	Discounted Cash Flow	Weighted average prepayment speed: residential 9.3%, commercial 11.7%; weighted average discount rate: residential 10.2%, commercial 15.7%.