MSRs

The Company services loans for Freddie Mac and 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, 2018, 2017 and 2016 was $370,928,000, $358,173,000 and $340,308,000, respectively. The guaranteed principal amount of SBA loans serviced for others at September 30, 2018, 2017 and 2016 was $754,000, $697,000 and $319,000, respectively.

The following is an analysis of the changes in MSRs for the years ended September 30, 2018, 2017 and 2016 (dollars in thousands):



	2018			2017			2016
Balance, beginning of year	$	1,825		$	1,573		$	1,478
Additions	694			739			650
Amortization	(491		)	(487		)	(555		)
Balance, end of year	$	2,028		$	1,825		$	1,573

At September 30, 2018, 2017 and 2016, the estimated fair value of MSRs totaled $4,171,000, $3,556,000 and $2,865,000, respectively. The Freddie Mac MSRs' fair values at September 30, 2018, 2017 and 2016 were estimated using discounted cash flow analyses with average discount rates of 8.99%, 9.52% and 9.52%, respectively, and average prepayment speed factors of 132, 159 and 209, respectively. At September 30, 2018, 2017 and 2016, the SBA MSRs were insignificant. At September 30, 2018, 2017 and 2016, there were no valuation allowances on MSRs.