12) Mortgage Servicing Rightss (Tables)

3 Months Ended

Mar. 31, 2020

Table Text Block Supplement [Abstract]

Schedule of Mortgage Servicing Rights

The following is a summary of the MSR activity for the periods presented.

	As of March 31 2020	As of December 31 2019
Amortized cost:
Balance before valuation allowance at beginning of year	$             17,155,529	$             20,016,822
MSR additions resulting from loan sales	1,677,178	4,194,502
Amortization (1)	(2,055,576)	(7,055,795)
Application of valuation allowance to write down MSRs    with other than temporary impairment	-	-
Balance before valuation allowance at end of period	$             16,777,131	$             17,155,529
Valuation allowance for impairment of MSRs:
Balance at beginning of year	$                           -	$                           -
Additions	-	-
Application of valuation allowance to write down MSRs    with other than temporary impairment	-	-
Balance at end of period	$                           -	$                           -
Mortgage servicing rights, net	$             16,777,131	$             17,155,529
Estimated fair value of MSRs at end of period	$             16,976,241	$             22,784,571
(1) Included in other expenses on the condensed consolidated statements of earnings

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights

The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost:

	Estimated MSR Amortization
2020	4,027,387
2021	2,899,758
2022	2,191,385
2023	1,678,517
2024	1,311,478
Thereafter	4,668,606
Total	$            16,777,131

Schedule of Other Revenues

The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the condensed consolidated statement of earnings:

	Three Months Ended March 31
	2020	2019
Contractual servicing fees	$     1,784,944	$    1,858,599
Late fees	97,808	87,291
Total	$     1,882,752	$    1,945,890

Summary of Unpaid Principal Balances of the Servicing Portfolio

The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio for the periods presented:

	As of  March 31 2020	As of December 31 2019
Servicing UPB	$        2,820,985,128	$        2,804,139,415

Assumptions used in determining MSR value

The following key assumptions were used in determining MSR value:

	Prepayment Speeds	Average Life (Years)	Discount Rate
March 31, 2020	21.20	3.85	9.51
December 31, 2019	15.30	5.27	9.51