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 June 30,					Six months ended June 30,
	2016			2015		2016			2015
Mortgage servicing rights:
Balance at beginning of period	$	7,140		$	7,057	$	7,618		$	7,378
Additions		281			236		501			421
Change in fair value		(701	)		521		(1,399	)		15

Balance at end of period	$	6,720		$	7,814	$	6,720		$	7,814


Servicing, late and ancillary fees received	$	516		$	528	$	1,033		$	1,062
Balance of loans serviced at:
Beginning of period	$	813,800		$	832,143	$	817,917		$	840,288
End of period	$	814,702		$	827,333	$	814,702		$	827,333
Weighted-average prepayment speed (CPR)							13.2	%		9.5	%
Discount rate							10.0	%		10.0	%

The changes in fair value of MSRs that occurred during the three and six months ended June 30, 2016 and 2015 were mainly due to changes in principal balances and changes in estimate life of the MSRs.