Note 10 – Mortgage Servicing Rights

The following tables summarize the activity in, and the main assumptions used to determine the fair value of mortgage servicing rights (“MSRs”) for the periods indicated (dollars in thousands):


	Three months ended March 31,
	2018			2017
Balance at beginning of period	$	6,687		$	6,595
Additions		155			278
Change in fair value		111			(13	)

Balance at end of period	$	6,953		$	6,860

Contractually specified servicing fees, late fees and ancillary fees earned	$	517		$	521
Balance of loans serviced at:
Beginning of period	$	811,065		$	816,623
End of period	$	806,478		$	822,506
Weighted-average prepayment speed (CPR)		7.5	%		8.3	%
Weighted-average discount rate		13.0	%		14.0	%

The changes in fair value of MSRs that occurred during the three months ended March 31, 2018 and 2017 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.