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Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Mortgage Servicing Rights

The following table presents the MSR activity.

 

   2024   2023 
   December 31, 
   2024   2023 
Amortized cost:          
Balance before valuation allowance at beginning of year  $3,461,146   $3,039,765 
MSR additions resulting from loan sales   90,370    1,009,312 
Amortization (1)   (611,638)   (587,931)
Sale of MSRs   -    - 
Application of valuation allowance to write down MSRs
with other than temporary impairment		   -    - 
Balance before valuation allowance at year end  $2,939,878   $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 year end  $-   $- 
           
Mortgage servicing rights, net  $2,939,878   $3,461,146 
           
Estimated fair value of MSRs at year end  $4,552,316   $4,543,657 

 

 

(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, 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 
2025  $305,312 
2026   272,903 
2027   249,515 
2028   224,804 
2029   202,811 
Thereafter   1,684,533 
Total  $2,939,878 
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.

 

   2024   2023 
   Years Ended December 31, 
   2024   2023 
Contractual servicing fees  $968,814   $1,144,540 
Late fees   77,123    97,300 
Total  $1,045,937   $1,241,840 
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, 
   2024   2023 
Servicing UPB  $385,134,774   $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		 
December 31, 2024   8.79    8.28    12.14 
December 31, 2023   9.70    7.79    11.85