Mortgage Servicing |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage Servicing | Note 9 - MORTGAGE SERVICING Activity for mortgage servicing rights ("MSRs") measured using the amortized cost method was as follows:
At March 31, 2026 and 2025, the Association serviced loans for others totaling approximately $118.5 million and $108.4 million, respectively. These loans are not included in the accompanying consolidated financial statements. Servicing activities primarily include collecting payments, managing escrow accounts, and remitting funds to investors. Servicing income is recognized on the accrual basis and consists of servicing fees and ancillary charges. Borrowers’ escrow balances held in connection with servicing activities totaled approximately $3.0 million and $2.9 million at March 31, 2026 and 2025, respectively, and are included in interest-bearing deposits. The Association utilizes derivative instruments, including interest rate lock commitments and forward loan sale commitments, to manage interest rate risk associated with mortgage banking activities. These instruments are not designated as hedging instruments, and their notional amounts and fair values were insignificant at March 31, 2026 and 2025. Mortgage servicing rights are evaluated for impairment at least annually. The fair value of mortgage servicing rights was $1.2 million and $1.3 million at March 31, 2026 and 2025, respectively. Fair value at March 31, 2026 was determined using a discount rate of 9.75%, prepayment speeds ranging from 7.04% to 24.2%, depending on the stratification of the specific mortgage servicing rights. Fair value at March 31, 2025 was determined using a discount rate of 9.75%, prepayment speeds ranging from 6.0% to 17.5%, depending on the stratification of the specific mortgage servicing rights. |
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