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Loan Servicing
 12 Months Ended
Dec. 31, 2024
Transfers and Servicing [Abstract]  
Loan Servicing

NOTE 6 – LOAN SERVICING

The Company has retained servicing rights to mortgage loans sold to both the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB) of Pittsburgh. Mortgage loans serviced for others are not reported as assets. The principal balances of these loans at year-end are as follows:

 

 

 

2024

 

 

2023

 

Mortgage loan portfolios serviced for:

 

 

 

 

 

 

FHLMC

 

$

554,779

 

 

$

544,140

 

FHLB Pittsburgh

 

 

26,063

 

 

 

28,405

 

    Ending balance

 

$

580,842

 

 

$

572,545

 

 

Custodial escrow balances maintained in connection with serviced loans were $5.3 million at December 31, 2024 and $4.8 million at December 31, 2023.

Mortgage servicing rights are recorded on the balance sheets as other assets. Activity for mortgage servicing rights for years ended December 31, 2024, 2023 and 2022 are as follows:

 

 

2024

 

 

2023

 

 

2022

 

Servicing rights:

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

3,452

 

 

$

3,331

 

 

$

3,403

 

Additions

 

 

644

 

 

 

588

 

 

 

960

 

Acquired in merger

 

 

0

 

 

 

305

 

 

 

0

 

Amortization to expense

 

 

(968

)

 

 

(735

)

 

 

(1,015

)

Total servicing rights before valuation allowance

 

$

3,128

 

 

$

3,489

 

 

$

3,348

 

Change in valuation allowance

 

 

(35

)

 

 

(37

)

 

 

(17

)

Ending balance

 

$

3,093

 

 

$

3,452

 

 

$

3,331

 

 

Fair value at year end 2024 was determined using discount rates ranging from 9% to 11% and prepayment speeds ranging from 100 PSA to 870 PSA (Public Securities Association Standard Prepayment Model), depending on the stratification of the specific mortgage servicing right. Fair value at year end 2023 was determined using discount rates ranging from 9% to 11% and prepayment speeds ranging from 100 PSA to 418 PSA, depending on the stratification of the specific mortgage servicing right.