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Mortgage Servicing Rights, Net
 3 Months Ended
Mar. 31, 2021
Mortgage Servicing [Abstract]  
Transfers and Servicing of Financial Assets [Text Block]
NOTE 5: MORTGAGE SERVICING
 
RIGHTS, NET
 
 
Mortgage servicing rights (“MSRs”) are recognized based on
 
the fair value of the servicing rights on the date the
corresponding mortgage loans are sold.
 
An estimate of the Company’s MSRs is determined
 
using assumptions that market
participants would use in
 
estimating future net servicing income, including estimates of prepayment
 
speeds, discount rate,
default rates, cost to service, escrow account earnings, contractual
 
servicing fee income, ancillary income, and late fees.
 
Subsequent to the date of transfer, the Company
 
has elected to measure its MSRs under the amortization method.
 
Under
the amortization method, MSRs are amortized in proportion
 
to, and over the period of, estimated net servicing income.
 
 
The Company has recorded MSRs related to loans sold to
 
Fannie Mae.
 
The Company generally sells conforming, fixed-
rate, closed-end, residential mortgages to Fannie Mae.
 
MSRs are included in other assets on the accompanying
consolidated balance sheets.
 
The Company evaluates MSRs for impairment on a quarterly basis.
 
Impairment is determined by stratifying MSRs into
groupings based on predominant risk characteristics, such as interest
 
rate and loan type.
 
If, by individual stratum, the
carrying amount of the MSRs exceeds fair value, a valuation
 
allowance is established.
 
The valuation allowance is adjusted
as the fair value changes.
 
Changes in the valuation allowance are recognized
 
in earnings as a component of mortgage
lending income.
 
 
The change in amortized MSRs and the related valuation allowance
 
for the quarters ended March 31, 2021 and 2020
 
are
presented below.
Quarter ended March 31,
(Dollars in thousands)
2021
2020
MSRs, net:
Beginning balance
$
1,330
$
1,299
Additions, net
142
49
Amortization expense
(150)
(99)
Ending balance
$
1,322
$
1,249
Valuation
 
allowance included in MSRs, net:
Beginning of period
$
—
$
—
End of period
—
—
Fair value of amortized MSRs:
Beginning of period
$
1,489
$
2,111
End of period
1,774
1,917