Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2022

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,
	2022			2021			2020
Balance at beginning of period	$	5,874		$	5,092		$	6,200
Additions	537			1,654			1,526
Change in fair value	301			(872)			(2,634)
Balance at end of period	$	6,712		$	5,874		$	5,092
Contractually specified servicing fees, late fees and ancillary fees earned	$	1,887		$	1,881		$	1,855
Balance of loans serviced at:
Beginning of period	$	770,299		$	779,530		$	767,662
End of period	$	739,919		$	770,299		$	779,530
Period end:
Weighted-average prepayment speed (CPR)	127.0		%	208.0		%	294.0		%
Weighted-average expected life (years)	7.6			5.7			4.5
Weighted-average discount rate	12.0		%	12.0		%	12.0		%

The changes in fair value of MSRs during 2022 were primarily due to changes in mortgage prepayment speeds and expected life estimates of the MSRs. The changes in fair value of MSRs during 2021 were primarily due to changes in principal balance and mortgage prepayment speeds of the MSRs. The changes in fair value of MSRs during 2020 were primarily due to changes in investor require rate of return, or discount rate, of the MSRs.