Commercial Mortgage Banking (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Changes in Carrying Value of Mortgage Servicing Rights

The following tables summarize the changes in carrying value of MSRs for the nine months ended September 30, 2013 and 2012:

(Expressed in thousands)


Balance, as of December 31, 2012	$	26,983
Originations ⁽¹⁾		5,668
Purchases		1,108
Disposals ⁽¹⁾		(4,518	)
Amortization expense		(1,120	)

Balance, as of September 30, 2013	$	28,121

(1)	Includes refinancing.

(Expressed in thousands)


Balance, as of December 31, 2011	$	22,795
Originations ⁽¹⁾		4,337
Purchases		2,582
Disposals ⁽¹⁾		(450	)
Amortization expense		(2,337	)

Balance, as of September 30, 2012	$	26,927

(1)	Includes refinancing.

Schedule of Amortization Expense

Servicing rights are amortized using the straight-line method over 10 years. Amortization expense for the next five years is as follows:

(Expressed in thousands)


2013	$	3,538
2014		3,531
2015		3,531
2016		3,498
2017		3,435
Thereafter		10,588

	$	28,121

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 nine months ended September 30, 2013 and 2012 were as follows:

(Expressed in thousands)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2013		2012		2013		2012
Servicing fees	$	1,287	$	1,080	$	3,739	$	3,016
Late fees		19		25		94		25
Ancillary fees		170		128		291		320

Total MSR fees	$	1,476	$	1,233	$	4,124	$	3,361