XML 24 R13.htm IDEA: XBRL DOCUMENT v3.21.2
Mortgage Servicing Rights, Net
 9 Months Ended
Sep. 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 September 30,
Nine months ended September 30,
(Dollars in thousands)
2021
2020
2021
2020
MSRs, net:
Beginning balance
$
1,360
$
1,271
$
1,330
$
1,299
Additions, net
93
234
407
471
Amortization expense
(127)
(183)
(411)
(448)
Ending balance
$
1,326
$
1,322
$
1,326
$
1,322
Valuation
 
allowance included in MSRs, net:
Beginning of period
$
—
$
—
$
—
$
—
End of period
—
—
—
—
Fair value of amortized MSRs:
Beginning of period
$
1,833
$
1,690
$
1,489
$
2,111
End of period
1,776
1,521
1,776
1,521