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Mortgage Servicing Rights (Tables)
 3 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Mortgage Servicing Rights

The following table presents the MSR activity:

 

   As of March 31,
2025		   As of December 31,
2024		 
Amortized cost:          
Balance before valuation allowance at beginning of year  $2,939,878   $3,461,146 
MSR additions resulting from loan sales (1)   35,852    90,370 
Amortization (2)   (136,182)   (611,638)
Sale of MSRs   -    - 
Application of valuation allowance to write down MSRs with other than temporary impairment   -    - 
Balance before valuation allowance at end of period  $2,839,548   $2,939,878 
           
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  $2,839,548   $2,939,878 
           
Estimated fair value of MSRs at end of period  $4,288,738   $4,552,316 

 

 

(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 March 31, 2025 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   313,624 
2026   276,708 
2027   249,392 
2028   221,913 
2029   198,505 
Thereafter   1,579,406 
Total  $2,839,548 
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.

 

   2025   2024 
   Three Months Ended March 31, 
   2025   2024 
Contractual servicing fees  $232,101   $256,662 
Late fees   19,617    23,208 
Total  $251,718   $279,870 
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 March 31,
2025		   As of December 31, 2024 
Servicing UPB  $381,495,494   $385,134,774 
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		 
March 31, 2025   10.00    7.83    11.98 
December 31, 2024   8.79    8.28    12.14