Note 4 - Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Transfers and Servicing of Financial Assets [Text Block]

Note 4 — Mortgage Servicing Rights

The following table presents the activity in the Company’s mortgage servicing rights:

	Nine months ended September 30,
	2024			2023
	(In Thousands)
Mortgage servicing rights at beginning of the period	$	1,811		$	3,445
Additions		640			1,515
Amortization		(215	)		(208	)
Sales		(1,958	)		(2,767	)
Mortgage servicing rights at end of the period		278			1,985
Valuation allowance recovered during the period		213			-
Mortgage servicing rights at end of the period, net	$	491		$	1,985

During the nine months ended September 30, 2024, $1.66 billion in residential loans were originated for sale on a consolidated basis generating mortgage banking income of $66.2 million. During the same period in the prior year, sales of loans held for sale totaled $1.58 billion, generating mortgage banking income of $59.9 million. The unpaid principal balance of loans serviced for others was $67.0 million and $238.7 million at September 30, 2024 and December 31, 2023, respectively. These loans are not reflected in the consolidated statements of financial condition.

The fair value of mortgage servicing rights was $499,000 at September 30, 2024 and $2.2 million at  December 31, 2023, respectively.

During the three months ended  September 30, 2024, there were no sales of mortgage servicing rights. During the nine months ended September 30, 2024, the Company sold mortgage servicing rights related to $233.0 million in loans receivable with a book value of $2.0 million for $2.1 million resulting in a gain on sale of $152,000. During the three months ended September 30, 2023, there were no sales of mortgage servicing rights. During the nine months ended  September 30, 2023, the Company sold mortgage servicing rights related to $318.4 million of loans serviced for others with a book value of $2.9 million for $3.5 million resulting in a gain on sale of $583,000.

The following table shows the estimated future amortization expense for mortgage servicing rights for the periods indicated:

	(In Thousands)
Estimate for the annual period ending December 31:
2024	$	21
2025		89
2026		80
2027		71
2028		62
Thereafter		168
Total	$	491