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Loan Servicing
 12 Months Ended
Dec. 31, 2012
Loan Servicing [Abstract]  
Loan Servicing

Note 9 – Loan Servicing

Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of loans serviced for others totaled approximately $772.1 million and $599.1 million at December 31, 2012 and 2011.

The aggregate fair value of capitalized mortgage servicing rights was approximately $6.6 million, $5.4 million, and $3.7 million at December 31, 2012, 2011 and 2010, compared to the carrying values of $5.1 million, $4.2 million and $3.4 million, respectively. Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of measuring impairment, risk characteristics including product type, investor type and interest rates, were used to stratify the originated mortgage servicing rights.

 

                         
    December 31
2012		     December 31
2011		     December 31
2010		  

Mortgage servicing rights

                        

Balances, January 1

   $ 5,049     $ 4,175     $ 3,010  

Servicing rights capitalized

     2,439       1,866       2,000  

Amortization of servicing rights

     (1,319 )      (992 )      (835 ) 
   

 

 

    

 

 

    

 

 

  

Balances, December 31

     6,169       5,049       4,175  
   

 

 

    

 

 

    

 

 

  

Impairment allowance

                        

Balances, January 1

     (856 )      (803 )      (139 ) 

Additions

     (762 )      (792 )      (776 ) 

Reductions

     594       739       112  
   

 

 

    

 

 

    

 

 

  

Balances, December 31

     (1,024 )      (856 )      (803 ) 
   

 

 

    

 

 

    

 

 

  

Mortgage servicing rights, net

   $ 5,145     $ 4,193     $ 3,372  
   

 

 

    

 

 

    

 

 

  

During 2012, 2011 and 2010, the Bank recorded additional impairment of approximately $168,000, $53,000 and $664,000.