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Mortgage Servicing Rights, Net
 6 Months Ended
Jun. 30, 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 fair value 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 rates, default rates, costs 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 without
 
recourse 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 following table details the changes in amortized MSRs and
 
the related valuation allowance for the respective periods.
Quarter ended June 30,
Six months ended June 30,
 
(Dollars in thousands)
2021
2020
2021
2020
MSRs, net:
Beginning balance
$
1,322
$
1,249
$
1,330
$
1,299
Additions, net
172
188
315
237
Amortization expense
(134)
(166)
(285)
(265)
Ending balance
$
1,360
$
1,271
$
1,360
$
1,271
Valuation
 
allowance included in MSRs, net:
Beginning of period
$
—
$
—
$
—
$
—
End of period
—
—
—
—
Fair value of amortized MSRs:
Beginning of period
$
1,774
$
1,917
$
1,489
$
2,111
End of period
1,833
1,690
1,833
1,690