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Mortgage Servicing Rights
 12 Months Ended
Dec. 31, 2024
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights Mortgage Servicing Rights
At December 31, 2024 and 2023, the Bank serviced loans for others totaling $297,950,000 and $321,178,000, respectively. Net gains from the sale of loans, serviced by the Bank, totaled $143,000 in 2024, $92,000 in 2023, and $406,000 in 2022. In 2024, mortgage servicing rights of $39,000 were capitalized and amortization for the year totaled $322,000. At December 31, 2024, mortgage servicing rights had a fair value of $3,054,000. In 2023, mortgage servicing rights of $48,000 were capitalized and amortization for the year totaled $364,000. At December 31, 2023, mortgage servicing rights had a fair value of $3,583,000.
FASB ASC Topic 860, "Transfers and Servicing", requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable. Servicing assets and servicing liabilities are reported using the amortization method or the fair value measurement method. In evaluating the carrying values of mortgage servicing rights, the Company obtains third party valuations based on loan level data including note rate, type and term of the underlying loans. The model utilizes several assumptions, the most significant of which are loan prepayments, calculated using a three-month moving average of weekly prepayment data published by the PSA and modeled against the serviced loan portfolio, and the discount rate to discount future cash flows. As of December 31, 2024, the prepayment assumption using the PSA model was 113, which translates into an anticipated annual prepayment rate of 5.42%. The discount rate is 10.00%. Other assumptions include delinquency rates, foreclosure rates, servicing cost inflation, and annual unit loan cost. All assumptions are adjusted periodically to reflect current circumstances.
Amortization of mortgage servicing rights, as well as write-offs due to prepayments of the related mortgage loans, are recorded as a charge against mortgage servicing fee income. 

Mortgage servicing rights are included in other assets and detailed in the following table:
As of December 31,20242023
Mortgage servicing rights$8,741,000 $8,702,000 
Accumulated amortization(6,847,000)(6,525,000)
Carrying value$1,894,000 $2,177,000