6.	LOAN SERVICING

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $1,046,551,000 and $317,162,000 at December 31, 2016 and 2015, respectively.

The following table summarizes the activity in the Company’s mortgage servicing rights for the indicated periods:

	2016			2015
Mortgage servicing rights:	(In thousands)
Balance at beginning of year	$	2,601		$	2,445
Additions through originations		2,348			642
Acquisition of First Eastern		6,216			—
Amortization		(1,064	)		(486	)
Sales		(1,191	)		—
Balance at end of year	$	8,910		$	2,601
Valuation allowance:
Balance at beginning of year	$	34		$	—
Provision		390			34
Balance at end of year	$	424		$	34
Mortgage servicing rights, amortized cost	$	8,486		$	2,567
Mortgage servicing rights, fair value	$	8,520		$	2,981

At December 31, 2016 and 2015, the fair value of servicing rights was determined using a discount rate of 14% and 10%, respectively, and projected annual prepayment speeds ranging from 6% to 24% for 2016 and 6% to 39% for 2015.

Contractually specified servicing fees for the years ended December 31, 2016 and 2015 amounted to $1,884,000 and $754,000, respectively, and are included in mortgage servicing income.

During the year ended December 31, 2015, the Company resolved a request from FNMA to refund certain fees paid under the recourse provisions of the loan sale agreements. Fees totaling $66,000 were refunded and recognized as a reduction of the gain on sale of mortgage loans.