MSRs

The Company services loans for Freddie Mac and - beginning in 2016 - secondary market purchasers of the guaranteed portion of SBA loans; such loans are not included in the accompanying consolidated balance sheets. The principal amount of loans serviced for Freddie Mac at September 30, 2016, 2015 and 2014 was $340,308,000, $331,494,000 and $327,594,000, respectively. The guaranteed principal amount of SBA loans serviced at September 30, 2016 was $319,000.

The following is an analysis of the changes in MSRs for the years ended September 30, 2016, 2015 and 2014 (dollars in thousands):



	2016			2015			2014
Balance, beginning of year	$	1,478		$	1,684		$	2,266
Additions	650			635			387
Amortization	(555		)	(841		)	(969		)
Balance, end of year	$	1,573		$	1,478		$	1,684

At September 30, 2016, 2015 and 2014, the estimated fair value of MSRs totaled $2,865,000, $3,095,000 and $3,204,000, respectively. The Freddie Mac MSRs' fair values at September 30, 2016, 2015 and 2014 were estimated using discounted cash flow analyses with average discount rates of 9.52%, 9.52% and 10.04%, respectively, and average prepayment speed factors of 209, 174 and 164, respectively. At September 30, 2016, the SBA MSRs were insignificant. At September 30, 2016, 2015 and 2014 there were no valuation allowances on MSRs.