Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2013

Intangible Assets

Summary of amortizable intangible assets

	June 30, 2013							December 31, 2012
	Gross							Gross
	Carrying		Accumulated			Net		Carrying		Accumulated			Net
(in thousands)	Amount		Amortization			Amount		Amount		Amortization			Amount
Core deposit intangible	$	4,795	$	(4,795	)	$	0	$	4,795	$	(4,660	)	$	135

Schedule of changes in the net carrying amount of core deposit intangible assets

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Balance at beginning of period	$	34		$	439		$	135		$	543
Additions	0			0			0			0
Amortization	(34		)	(102		)	(135		)	(206		)
Balance at end of period	$	0		$	337		$	0		$	337

Schedule of changes in mortgage servicing rights (MSRs)

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Balance at beginning of period	$	2,689		$	2,747		$	2,549		$	2,308
Re-measurement to fair value upon election to measure servicing rights at fair value	0			0			0			742
Originated mortgage servicing rights	164			146			361			328
Changes in fair value:
Due to change in model inputs and assumptions (1)	228			106			382			276
Other changes in fair value (2)	(208		)	(333		)	(419		)	(988		)
Balance at end of period	$	2,873		$	2,666		$	2,873		$	2,666

(1) The change in fair value resulting from changes in valuation inputs or assumptions used in the valuation model reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates.

(2) Other changes in fair value reflect changes due to customer payments and passage of time. This also includes a one time adjustment of a $538,000 correction of an immaterial prior period error in 2012 due to changing from the straight-line amortization method to an accelerated amortization method of accounting for amortizing MSRs in prior years. If the aforementioned was corrected as of December 31, 2011, the balance at the beginning of the six month period ending June 30, 2012 would have been $1,770,000.

Schedule of data and assumptions used in estimating the fair value of mortgage service rights

	Six Months Ended June 30,
	2013		2012
Weighted-Average Constant Prepayment Rate	16.02	%	18.13	%
Weighted-Average Note Rate	4.04	%	4.49	%
Weighted-Average Discount Rate	8.05	%	8.04	%
Weighted-Average Expected Life (in years)	20.00		20.00