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Mortgage Servicing Rights, Net
 3 Months Ended
Mar. 31, 2025
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.
 
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.
 
Increases in market interest rates
generally increase the fair value of MSRs by reducing prepayments and
 
refinancings and therefore reducing the prepayment
speed.
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, 2025 and 2024 are
presented below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended March 31,
(Dollars in thousands)
2025
2024
MSRs, net:
Beginning balance
$
892
$
992
Additions, net
6
12
Amortization expense
(41)
(39)
Ending balance
$
857
$
965
Valuation
 
allowance included in MSRs, net:
Beginning of period
$
—
$
—
End of period
—
—
Fair value of amortized MSRs:
Beginning of period
$
2,204
$
2,382
End of period
2,201
2,378