(6) Servicing Asset

An analysis of the servicing asset for the years ended December 31, 2011, 2010 and 2009 is as follows (in thousands):


	Years Ended December 31,
	2011			2010			2009
Balance at beginning of year	$	5,653		$	6,515		$	7,229
Capitalized mortgage servicing rights		1,036			1,156			1,660
Amortization		(1,853	)		(2,018	)		(2,111	)
Impairment		—			—			(263	)

Balance at end of year	$	4,836		$	5,653		$	6,515

Loans serviced for others amounted to $878,462,000 and $913,778,000 at December 31, 2011 and 2010, respectively, all of which relate to residential loans. At December 31, 2011, the servicing asset had an estimated fair value of $7,156,000 and was valued based on expected future cash flows considering a weighted average discount rate of 9.6%, a weighted average constant prepayment rate on mortgages of 14.4% and a weighted average life of 6.3 years. At December 31, 2010, the servicing asset had an estimated fair value of $8,611,000 and was valued based on expected future cash flows considering a weighted average discount rate of 9.6%, a weighted average constant prepayment rate on mortgages of 11.9% and a weighted average life of 7.4 years. As of December 31, 2011, estimated future servicing amortization through 2016 based on the prepayment assumptions utilized in the December 31, 2011 valuation, is as follows: $1,434,000 for 2012, $1,069,000 for 2013, $773,000 for 2014, $529,000 for 2015 and $365,000 for 2016. Actual results will vary depending upon the level of repayments on the loans currently serviced.