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 June 30,						Six months ended June 30,
	2018			2017			2018			2017
Balance at beginning of period	$	6,953		$	6,860		$	6,687		$	6,595
Additions		104			193			259			471
Change in fair value		(36	)		(457	)		75			(470	)

Balance at end of period	$	7,021		$	6,596		$	7,021		$	6,596

Contractually specified servicing fees, late fees and ancillary fees earned	$	511		$	526		$	1,028		$	1,047
Balance of loans serviced at:
Beginning of period	$	806,178		$	822,506		$	811,065		$	816,623
End of period	$	801,817		$	822,549		$	801,817		$	822,549
Period end:
Weighted-average prepayment speed (CPR)								7.4	%		8.7	%
Weighted-average discount rate								12.5	%		14	%

The changes in fair value of MSRs that occurred during the three and six months ended June 30, 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.