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Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Mortgage Servicing Rights

The following table presents the MSR activity.

 

   2023   2022 
   December 31, 
   2023   2022 
Amortized cost:          
Balance before valuation allowance at beginning of year  $3,039,765   $53,060,455 
MSR additions resulting from loan sales   1,009,312    10,243,922 
Amortization (1)   (587,931)   (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 year end  $3,461,146   $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 year end  $-   $- 
           
Mortgage servicing rights, net  $3,461,146   $3,039,765 
           
Estimated fair value of MSRs at year end  $4,543,657   $3,927,877 

 

 

(1)Included in other expenses on the 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 December 31, 2023 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.

 

   Estimated MSR Amortization 
2024  $390,131 
2025   342,170 
2026   306,597 
2027   271,773 
2028   242,596 
Thereafter   1,907,879 
Total  $3,461,146 
Schedule of Other Revenues

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

 

   2023   2022 
   Years Ended December 31, 
   2023   2022 
Contractual servicing fees  $1,144,540   $15,792,105 
Late fees   97,300    398,754 
Total  $1,241,840   $16,190,859 
Summary of Unpaid Principal Balances of the Servicing Portfolio

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

  

   December 31, 
   2023   2022 
Servicing UPB  $414,147,436   $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		 
December 31, 2023   9.70    7.79    11.85 
December 31, 2022   8.12    8.49    11.95