Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2021

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,
	2021			2020			2019
Balance at beginning of period	$	5,092		$	6,200		$	7,098
Additions	1,654			1,526			913
Change in fair value	(872)			(2,634)			(1,811)
Balance at end of period	$	5,874		$	5,092		$	6,200
Contractually specified servicing fees, late fees and ancillary fees earned	$	1,881		$	1,855		$	1,917
Balance of loans serviced at:
Beginning of period	$	779,530		$	767,662		$	785,138
End of period	$	770,299		$	779,530		$	767,662
Period end:
Weighted-average prepayment speed (CPR)	208.0		%	294.0		%	182.0		%
Weighted-average expected life (years)	5.7			4.5			6.2
Weighted-average discount rate	12.0		%	12.0		%	12.0		%

The changes in fair value of MSRs during 2021 were primarily due to changes in principal balances and mortgage prepayment speeds of the MSRs. The changes in fair value of MSRs during 2020 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 2019 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.