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 March 31,
	2015			2014
Balance at beginning of period	$	7,378		$	6,165
Additions		185			123
Change in fair value		(506	)		(181	)

Balance at end of period	$	7,057		$	6,107

Contractually specified servicing fees, late fees and ancillary fees earned	$	534		$	420
Balance of loans serviced at:
Beginning of period	$	840,288		$	680,197
End of period	$	832,143		$	672,341
Weighted-average prepayment speed (CPR)		13.0	%		10.6	%
Weighted-average discount rate		10.0	%		10.0	%

The changes in fair value of MSRs that occurred during the three months ended March 31, 2015 and 2014 were mainly due to changes in principal balances and changes in estimate life of the MSRs.