MSRs

The Company services loans for Freddie Mac and - beginning in 2016 - for 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, 2017, 2016 and 2015 was $358,173,000, $340,308,000 and $331,494,000, respectively. The guaranteed principal amount of SBA loans serviced for others at September 30, 2017 and 2016 was $697,000 and $319,000, respectively.

The following is an analysis of the changes in MSRs for the years ended September 30, 2017, 2016 and 2015 (dollars in thousands):



	2017			2016			2015
Balance, beginning of year	$	1,573		$	1,478		$	1,684
Additions	739			650			635
Amortization	(487		)	(555		)	(841		)
Balance, end of year	$	1,825		$	1,573		$	1,478

At September 30, 2017, 2016 and 2015, the estimated fair value of MSRs totaled $3,556,000, $2,865,000 and $3,095,000, respectively. The Freddie Mac MSRs' fair values at September 30, 2017, 2016 and 2015 were estimated using discounted cash flow analyses with average discount rates of 9.52%, 9.52% and 9.52%, respectively, and average prepayment speed factors of 159, 209 and 174, respectively. At September 30, 2017 and 2016, the SBA MSRs were insignificant. At September 30, 2017, 2016 and 2015, there were no valuation allowances on MSRs.