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 (“MSRs”) for the periods indicated (dollars in thousands):


	Three months ended September 30,					Nine months ended September 30,
	2014			2013		2014			2013
Mortgage servicing rights:
Balance at beginning of period	$	5,909		$	5,571	$	6,165		$	4,552
Additions		164			298		440			1,187
Change in fair value		(88	)		180		(620	)		310

Balance at end of period	$	5,985		$	6,049	$	5,985		$	6,049

Servicing, late and ancillary fees received	$	413		$	428	$	1,244		$	1,261
Balance of loans serviced at:
Beginning of period	$	667,969		$	682,176	$	680,197		$	666,512
End of period	$	664,342		$	683,910	$	664,342		$	683,910
Weighted-average prepayment speed (CPR)							10.4	%		11.0	%
Discount rate							10.0	%		10.0	%

The changes in fair value of MSRs that occurred during the three and nine months ended September 30, 2014 and 2013 were mainly due to principal reductions and changes in estimated life of the MSRs.