Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2017

The following table details the activity in the Company's mortgage servicing rights ("MSR") for the year indicated:



(In Thousands)	2017			2016

Balance, beginning of period		$4,157			$1,654
Additions for new MSR capitalized	3,146			3,029
Changes in fair value:
Due to changes in model inputs of assumptions ⁽¹⁾	551			(214		)
Other ⁽²⁾	(549		)	(312		)
Carrying value, December 31		$7,305			$4,157

⁽¹⁾Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.

⁽²⁾Represents changes due to collection/realization of expected cash flows over time.

The following table details information related to our serviced mortgage loan portfolio as of December 31, 2017 and 2016:

The Company recognized servicing fees of $1.3 million, $675,000, and $261,000 during 2017, 2016, and 2015, respectively, which includes revenues recognized at origination of new mortgage servicing rights, late fees, and ancillary fees as a component of other noninterest income in the Company's Consolidated Statements of Income.

The following table outlines the key assumptions used in measuring the fair value of mortgage servicing rights as of December 31, 2017 and 2016:



	2017		2016

Constant prepayment rate	9.00	%	11.58	%
Discount rate	9.45	%	9.25	%

(In Thousands)

December 31, 2017

December 31, 2016

Balance of mortgage loans serviced for others

MSR as a percentage of serviced loans