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Mortgage Banking and Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2024
Mortgage Banking and Servicing Rights [Abstract]  
Components of Mortgage Banking Income

Mortgage banking activities primarily include residential mortgage originations and servicing.  As discussed in note 1 above, MSRs are carried at fair market value.  The following table presents the components of mortgage banking income:

(in thousands)
Year Ended December 31
  
2024
    
2023
    
2022
  
Net gain on sale of mortgage loans held for sale
  
$
294
    
$
395
    
$
1,525
  
Net loan servicing income:
                        
Servicing fees
    
1,946
      
2,080
      
2,226
  
Late fees
    
60
      
81
      
78
  
Ancillary fees
    
43
      
36
      
94
  
Fair value adjustments
    
(431
)
    
(965
)
    
1,069
  
Net loan servicing income
    
1,618
      
1,232
      
3,467
  
Mortgage banking income
  
$
1,912
    
$
1,627
    
$
4,992
  
Activity for Capitalized MSRs Using Fair Value Method

Activity for capitalized MSRs using the fair value method is as follows:

(in thousands)
  
2024
    
2023
    
2022
  
Fair value of MSRs, beginning of year
  
$
7,665
    
$
8,468
    
$
6,774
  
New servicing assets created
    
123
      
162
      
625
  
Change in fair value during the year due to:
                        
Time decay (1)
    
(428
)
    
(430
)
    
(450
)
Payoffs (2)
    
(315
)
    
(347
)
    
(429
)
Changes in valuation inputs or assumptions (3)
    
312
      
(188
)
    
1,948
  
Fair value of MSRs, end of year
  
$
7,357
    
$
7,665
    
$
8,468
  

(1)
Represents decrease in value due to regularly scheduled loan principal payments and partial loan paydowns.
(2)
Represents decrease in value due to loans that paid off during the period.
(3)
Represents change in value resulting from market-driven changes in interest rates.