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Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Mortgage Servicing Rights

The following table presents the MSR activity:

 

   As of September 30,
2024		   As of December 31,
2023		 
Amortized cost:          
Balance before valuation allowance at beginning of year  $3,461,146   $3,039,765 
MSR additions resulting from loan sales (1)   49,226    1,009,312 
Amortization (2)   (458,567)   (587,931)
Sale of MSRs   -    - 
Application of valuation allowance to write down MSRs
with other than temporary impairment		   -    - 
Balance before valuation allowance at end of period  $3,051,805   $3,461,146 
           
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  $3,051,805   $3,461,146 
           
Estimated fair value of MSRs at end of period  $4,170,880   $4,543,657 

 

 

(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 Company’s assumptions in its September 30, 2024 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   359,390 
2025   309,358 
2026   275,446 
2027   243,362 
2028   216,468 
Thereafter   1,647,781 
Total  $3,051,805 
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.

 

   2024   2023   2024   2023 
   Three Months Ended September 30,   Nine Months Ended
September 30,		 
   2024   2023   2024   2023 
Contractual servicing fees  $237,531   $249,050   $736,137   $892,668 
Late fees   17,349    21,037    56,637    84,358 
Total  $254,880   $270,087   $792,774   $977,026 
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 September 30,
2024		   As of December 31, 2023 
Servicing UPB  $391,681,072   $414,147,436 
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		 
September 30, 2024   10.60    7.45    11.81 
December 31, 2023   9.70    7.79    11.85