Note 10 — Mortgage Servicing Rights

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


	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Mortgage servicing rights:
Balance at beginning of period	$	4,808		$	4,310		$	4,605		$	4,089
Additions		172			292			435			562
Change in fair value		(162	)		(569	)		(222	)		(618	)

Balance at end of period	$	4,818		$	4,033		$	4,818		$	4,033


Servicing, late and ancillary fees received	$	370		$	315		$	731		$	622
Balance of loans serviced at:
Beginning of period	$	583,625		$	518,803		$	573,300		$	505,947
End of period	$	584,113		$	527,436		$	584,113		$	527,436
Weighted-average prepayment speed (CPR)								14.5	%		18.0	%
Discount rate								9.0	%		9.0	%

The changes in fair value of MSRs that occurred during the three and six months ended June 30, 2011 and 2010 were mainly due to principal reductions and changes in estimated life of the MSRs.