Mortgage Servicing Rights (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Intangible Asset, Goodwill and Other [Abstract] |
|
| Schedule of Mortgage Servicing Rights |
The
following table presents the MSR activity:
Schedule
of Mortgage Servicing Rights
| | |
As of
June
30, 2026 | | |
As of
December 31, 2025 | |
| Amortized cost: | |
| | | |
| | |
| Balance before valuation allowance at beginning of year | |
$ | 2,528,459 | | |
$ | 2,939,878 | |
| MSR additions resulting from loan sales (1) | |
| 152,234 | | |
| 151,056 | |
| Amortization (2) | |
| (233,588 | ) | |
| (562,475 | ) |
| Sale of MSRs | |
| - | | |
| - | |
| Application of valuation allowance to write down MSRswith other than temporary impairment | |
| - | | |
| - | |
| Balance before valuation allowance at end of period | |
$ | 2,447,105 | | |
$ | 2,528,459 | |
| | |
| | | |
| | |
| Valuation allowance for impairment of MSRs: | |
| | | |
| | |
| Balance at beginning of year | |
$ | - | | |
$ | - | |
| Additions | |
| - | | |
| - | |
| Application of valuation allowance to write down MSRs with other than temporary
impairment | |
| - | | |
| - | |
| Balance at end of period | |
$ | - | | |
$ | - | |
| | |
| | | |
| | |
| Mortgage servicing rights, net | |
$ | 2,447,105 | | |
$ | 2,528,459 | |
| | |
| | | |
| | |
| Estimated fair value of MSRs at end of period | |
$ | 4,146,075 | | |
$ | 4,035,635 | |
| (1) |
Included in mortgage fee income on the condensed consolidated
statements of earnings |
| (2) |
Included in other expenses on the condensed consolidated statements
of earnings |
|
| Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights |
The
table below summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection
was developed using the Company’s assumptions in its June 30, 2026, valuation of MSRs. The assumptions used in the following table
are likely to change as market conditions, portfolio composition and borrower behavior change, causing both actual and projected amortization
levels to change over time.
Schedule
of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights
| | |
Estimated MSR
Amortization | |
| 2026 | |
| 232,241 | |
| 2027 | |
| 223,082 | |
| 2028 | |
| 207,530 | |
| 2029 | |
| 187,850 | |
| 2030 | |
| 170,162 | |
| Thereafter | |
| 1,426,240 | |
| Total | |
$ | 2,447,105 | |
|
| Schedule of Other Revenues |
The
Company collected the following contractual service fee income and late fee income as reported in other revenues on the condensed consolidated
statement of earnings.
Schedule
of Other Revenues
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| | |
Three Months
Ended June 30, | | |
Six Months
Ended June 30, | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Contractual service fees | |
$ | 223,749 | | |
$ | 222,900 | | |
$ | 445,816 | | |
$ | 455,001 | |
| Late fees | |
| 17,375 | | |
| 12,231 | | |
| 34,681 | | |
| 31,848 | |
| Total | |
$ | 241,124 | | |
$ | 235,131 | | |
$ | 480,497 | | |
$ | 486,849 | |
|
| Summary of Unpaid Principal Balances of the Servicing Portfolio |
The
following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio.
Summary
of Unpaid Principal Balances of the Servicing Portfolio
| | |
As of
June
30, 2026 | | |
As of
December
31, 2025 | |
| Servicing UPB | |
$ | 357,613,906 | | |
$ | 361,632,543 | |
|
| Schedule of Assumptions Used in Determining MSR Value |
The
following key assumptions were used in determining MSR value:
Schedule
of Assumptions Used in Determining MSR Value
| | |
Prepayment
Speeds | | |
Average
Life
(Years) | | |
Discount
Rate | |
| June 30, 2026 | |
| 11.75 | | |
| 7.88 | | |
| 11.68 | |
| December 31, 2025 | |
| 12.27 | | |
| 7.44 | | |
| 11.92 | |
|