v3.25.2
Mortgage Servicing Rights
 6 Months Ended
Jun. 30, 2025
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights

Note 5. Mortgage Servicing Rights

The Company sells residential mortgage loans in the secondary market and typically retains the rights to service the loans. Mortgage loans serviced for others are not reported as assets. Mortgage servicing rights are recognized on the balance sheet within other assets. The principal balances of these loans as of June 30, 2025 and December 31, 2024 are as follows:

 

 

 

In Thousands

 

 

 

June 30, 2025

 

 

December 31, 2024

 

Mortgage loan portfolios serviced for:

 

 

 

 

 

 

FHLMC

 

$

130,443

 

 

$

114,771

 

 

For the six months ended June 30, 2025 and 2024, the change in carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows:

 

 

 

In Thousands

 

 

 

June 30, 2025

 

 

June 30, 2024

 

Balance at beginning of period

 

$

1,139

 

 

$

1,083

 

Servicing rights retained from loans sold

 

 

329

 

 

 

86

 

Amortization

 

 

(213

)

 

 

(121

)

Valuation Allowance Provision

 

 

—

 

 

 

—

 

Balance at end of period

 

$

1,255

 

 

$

1,048

 

Fair value, end of period

 

$

1,722

 

 

$

1,496

 

 

The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of June 30, 2025 and December 31, 2024 were as follows:

 

 

 

June 30, 2025

 

 

December 31, 2024

 

Prepayment speed

 

 

9.47

%

 

 

8.08

%

Weighted-average life (in years)

 

 

7.72

 

 

 

8.42

 

Weighted-average note rate

 

 

5.38

%

 

 

5.11

%

Weighted-average discount rate

 

 

9.00

%

 

 

9.00

%