v3.26.1
Mortgage Servicing Rights
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026 and December 31, 2025 are as follows:

 

 

 

In Thousands

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Mortgage loan portfolios serviced for:

 

 

 

 

 

 

FHLMC

 

$

162,452

 

 

$

149,916

 

 

For the three months ended March 31, 2026 and 2025, the change in carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows:

 

 

 

In Thousands

 

 

 

March 31, 2026

 

 

March 31, 2025

 

Balance at beginning of period

 

$

1,401

 

 

$

1,139

 

Servicing rights retained from loans sold

 

 

189

 

 

 

82

 

Amortization

 

 

(103

)

 

 

(74

)

Valuation allowance provision

 

 

—

 

 

 

—

 

Balance at end of period

 

$

1,487

 

 

$

1,147

 

Fair value, end of period

 

$

2,020

 

 

$

1,614

 

 

The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of March 31, 2026 and December 31, 2025 were as follows:

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Prepayment speed

 

 

10.51

%

 

 

12.44

%

Weighted-average life (in years)

 

 

7.22

 

 

 

6.56

 

Weighted-average note rate

 

 

5.54

%

 

 

5.50

%

Weighted-average discount rate

 

 

9.00

%

 

 

9.50

%