XML 43 R32.htm IDEA: XBRL DOCUMENT v3.23.2
Mortgage Servicing Rights (Tables)
 6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Mortgage Servicing Rights

The following table presents the MSR activity:

 

   As of June 30,
2023		   As of December 31,
2022		 
Amortized cost:          
Balance before valuation allowance at beginning of year  $3,039,765   $53,060,455 
MSR additions resulting from loan sales (1)   694,897    10,243,922 
Amortization (2)   (292,310)   (9,078,706)
Sale of MSRs   -    (51,185,906)
Application of valuation allowance to write down MSRs with other than temporary impairment   -    - 
Balance before valuation allowance at end of period  $3,442,352   $3,039,765 
           
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  $3,442,352   $3,039,765 
           
Estimated fair value of MSRs at end of period  $4,790,912   $3,927,877 

 

 

(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 assumptions made by management in its June 30, 2023 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management.

 

   Estimated MSR Amortization 
2023   363,261 
2024   328,177 
2025   299,068 
2026   266,962 
2027   238,917 
Thereafter   1,945,967 
Total  $3,442,352 
Schedule of Other Revenues

The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the condensed consolidated statement of earnings.

 

   2023   2022   2023   2022 
   Three Months Ended
June 30,		   Six Months Ended
June 30,		 
   2023   2022   2023   2022 
Contractual servicing fees  $233,218   $4,694,969   $643,618   $9,201,229 
Late fees   14,008    81,597    63,321    181,635 
Total  $247,226   $4,776,566   $706,939   $9,382,864 
Summary of Unpaid Principal Balances of the Servicing Portfolio

The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio.

 

   As of June 30,
2023		   As of December 31, 2022 
Servicing UPB  $403,651,388   $360,023,384 
Schedule of Assumptions Used in Determining MSR Value

The following key assumptions were used in determining MSR value:

 

   Prepayment
Speeds		   Average
Life (Years)		   Discount
Rate		 
June 30, 2023   8.70    8.24    11.57 
December 31, 2022   8.12    8.49    11.95