Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2020

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):


(in thousands)	Year ended December 31,
	2020			2019			2018
Balance at beginning of period	$	6,200		$	7,098		$	6,687
Additions	1,526			913			557
Change in fair value	(2,634)			(1,811)			(146)
Balance at end of period	$	5,092		$	6,200		$	7,098
Contractually specified servicing fees, late fees and ancillary fees earned	$	1,855		$	1,917		$	2,038
Balance of loans serviced at:
Beginning of period	$	767,662		$	785,138		$	811,065
End of period	$	779,530		$	767,662		$	785,138
Period end:
Weighted-average prepayment speed (CPR)	4.5		%	6.2		%	7.6		%
Weighted-average discount rate	12.0		%	12.0		%	12.0		%

The changes in fair value of MSRs during 2020 were primarily due to changes in principal balances and mortgage prepayment speeds of the MSRs. The changes in fair value of MSRs during 2019 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 2018 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.