v3.25.2
Mortgage Servicing Rights, Net
 6 Months Ended
Jun. 30, 2025
Mortgage Servicing [Abstract]  
Transfers and Servicing of Financial Assets [Text Block]
NOTE 4: MORTGAGE SERVICING
 
RIGHTS, NET
Mortgage servicing rights (“MSRs”) are recognized based on the fair
 
value of the servicing rights on the date the
corresponding mortgage loans are sold.
 
An estimate of the fair value of the Company’s
 
MSRs is determined using
assumptions that market participants would use in estimating future net
 
servicing income, including estimates of
prepayment speeds, discount rates, default rates, costs to service, escrow account
 
earnings, contractual servicing fee
income, ancillary income, and late fees.
 
Subsequent to the date of transfer, the Company
 
has elected to measure its MSRs
under the amortization method.
 
Under the amortization method, MSRs are amortized in proportion to, and over
 
the period
of, estimated net servicing income.
 
The Company generally sells, without recourse, conforming, fixed-rate, closed-end,
 
residential mortgages to Fannie Mae,
where the Company services the mortgages sold and records MSRs.
 
MSRs are included in other assets on the
accompanying consolidated balance sheets.
The Company evaluates MSRs for impairment on a quarterly basis.
 
Impairment is determined by stratifying MSRs into
groupings based on predominant risk characteristics, such as interest rate and loan
 
type.
 
If, by individual stratum, the
carrying amount of the MSRs exceeds fair value, a valuation allowance is established.
 
The valuation allowance is adjusted
as the fair value changes.
 
Changes in the valuation allowance are recognized in earnings as a component
 
of mortgage
lending income.
 
The following table details the changes in amortized MSRs and the related valuation
 
allowance for the respective periods.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended June 30,
Six months ended June 30,
 
(Dollars in thousands)
2025
2024
2025
2024
MSRs, net:
Beginning balance
$
857
$
965
$
892
$
992
Additions, net
11
15
17
27
Amortization expense
(41)
(38)
(82)
(77)
Ending balance
$
827
$
942
$
827
$
942
Valuation
 
allowance included in MSRs, net:
Beginning of period
$
—
$
—
$
—
$
—
End of period
—
—
—
—
Fair value of amortized MSRs:
Beginning of period
$
2,201
$
2,378
$
2,204
$
2,382
End of period
2,203
2,346
2,203
2,346