Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2019

Note 10 – Mortgage Servicing Rights

The following tables summarize the activity in, and the main assumptions used to determine the fair value of mortgage servicing rights for the periods indicated (dollars in thousands):


	Year ended December 31,
				2019				2018				2017
Balance at beginning of period	$	7,098			$	6,687			$	6,595
Additions	913				557				810
Change in fair value	(1,811)				(146)				(718)
Balance at end of period	$	6,200			$	7,098			$	6,687
Contractually specified servicing fees, late fees and ancillary fees earned	$	1,917			$	2,038			$	2,076
Balance of loans serviced at:
Beginning of period	$	785,138			$	811,065			$	816,623
End of period	$	767,662			$	785,138			$	811,065
Period end:
Weighted-average prepayment speed (CPR)	6.2		%		7.6		%		8.9		%
Weighted-average discount rate	12.0		%		12.0		%		13.0		%

The changes in fair value of MSRs during 2019 were primarily due to changes in principal balances and mortgage prepayment speeds of the MSRs. The changes in fair value of MSRs during 2018 were primarily due to changes in investor required rate of return, or discount rate, of the MSRs. The changes in fair value of MSRs during 2017 were primarily due to changes in principal balances, changes in mortgage prepayment speeds, and changes in investor required rate of return, or discount rate, of the MSRs.