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,
	2016			2015			2016			2015
Mortgage servicing rights:
Balance at beginning of period	$	6,720		$	7,814		$	7,618		$	7,378
Additions		287			238			788			659
Change in fair value		(799	)		(585	)		(2,198	)		(570	)

Balance at end of period	$	6,208		$	7,467		$	6,208		$	7,467


Servicing, late and ancillary fees received	$	480		$	480		$	1,513		$	1,542
Balance of loans serviced at:
Beginning of period	$	814,702		$	827,333		$	817,917		$	840,288
End of period	$	811,128		$	816,967		$	811,128		$	816,967
Weighted-average prepayment speed (CPR)								12.8	%		10.5	%
Discount rate								12.0	%		10.0	%

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