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):


	Years ended December 31,
	2016			2015			2014
Balance at beginning of period	$	7,618		$	7,378		$	6,165
Acquisition		—			—			1,944
Originations		1,161			941			570
Change in fair value		(2,184	)		(701	)		(1,301	)

Balance at end of period	$	6,595		$	7,618		$	7,378

Contractually specified servicing fees, late fees and ancillary fees earned	$	2,065		$	2,164		$	1,869
Balance of loans serviced at:
Beginning of period	$	817,917		$	840,288		$	680,197
End of period	$	816,623		$	817,917		$	840,288
Weighted-average prepayment speed (CPR)		8.8	%		9.8	%		12.0	%
Weighted-average discount rate		14.0	%		10.0	%		10.0	%

The changes in fair value of MSRs that occurred during 2016 were mainly due to changes in principal balances, changes in mortgage prepayment speeds, and changes in investor required rate of return, or discount rate, of the MSRs. The changes in fair value of MSRs that occurred during 2015 and 2014 were mainly due to changes in principal balances and changes in estimate life of the MSRs.