Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2023

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


(in thousands)	Year ended December 31,
	2023			2022			2021
Balance at beginning of period	$	6,712		$	5,874		$	5,092
Additions	400			537			1,654
Change in fair value	(506)			301			(872)
Balance at end of period	$	6,606		$	6,712		$	5,874
Contractually specified servicing fees, late fees and ancillary fees earned	$	1,808		$	1,887		$	1,881
Balance of loans serviced at:
Beginning of period	$	739,919		$	770,299		$	779,530
End of period	$	714,801		$	739,919		$	770,299
Period end:
Weighted-average prepayment speed (CPR)	116.0		%	127.0		%	208.0		%
Weighted-average expected life (years)	7.8			7.6			5.7
Weighted-average discount rate	12.0		%	12.0		%	12.0		%

The changes in fair value of MSRs during 2023 were primarily due to changes in mortgage prepayment speeds and changes in principal balances of the underlying mortgages. The changes in fair value of MSRs during 2022 were primarily due to changes in principal balance and mortgage prepayment speeds of the MSRs. The changes in fair value of MSRs during 2021 were primarily due to changes in investor require rate of return, or discount rate, of the MSRs.