Mortgage servicing rights--Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances of these loans as of June 30, 2026 and December 31, 2025, were $471,803 and $474,045, respectively, and consisted of one to four family residential real estate loans. These loans are serviced primarily for the Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and the Federal National Mortgage Association. Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in deposits were $5,450 and $2,841 at June 30, 2026 and December 31, 2025, respectively.


	As of and for the Three Months Ended		As of and for the Three Months Ended		As of and for the Six Months Ended		As of and for the Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Mortgage servicing rights:
Mortgage servicing rights, beginning of period	$	3,484	$	3,583	$	3,494	$	3,663

Increase in mortgage servicing rights resulting from transfers of financial assets	142		113		293		173
Amortization during the period	(173)		(148)		(334)		(288)
Mortgage servicing rights, end of period	3,453		3,548		3,453		3,548
Valuation allowance:
Valuation allowance, beginning of period	—		—		—		—
Additions	—		—		—		—
Recoveries	—		—		—		—

Valuation allowance, end of period	—		—		—		—
Mortgage servicing rights, net	$	3,453	$	3,548	$	3,453	$	3,548
Fair value of mortgage servicing rights; end of period	$	5,108	$	5,099	$	5,108	$	5,099

The current period change in valuation allowance, if applicable, is included in non-interest expense as mortgage servicing rights expense, net on the consolidated statement of operations. Servicing fees totaled $299 and $301 for the three months ended June 30, 2026 and June 30, 2025, respectively. Servicing fees totaled $599 and $602 for the six months ended June 30, 2026 and June 30, 2025, respectively. Servicing fees are included in loan servicing income on the consolidated statement of operations. Late fees and ancillary fees related to loan servicing are not material.

To estimate the fair value of the MSR asset, a valuation model is applied at the loan level to calculate the present value of the expected future cash flows. The valuation model incorporates various assumptions that would impact market participants’ estimations of future servicing income. Central to the valuation model is the discount rate. Fair value at June 30, 2026, was determined using discount rates ranging from 9.750% to 12.750%. Fair value at June 30, 2025, was determined using discount rates ranging from 9.500% to 12.500%. Other assumptions utilized in the valuation model include, but are not limited to, prepayment speed, servicing costs, delinquencies, costs of advances, foreclosure costs, ancillary income, and income earned on float and escrow.