12) Mortgage Servicing Rightss (Tables)

6 Months Ended

Jun. 30, 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 June 30 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	9,488,179	4,194,502
Amortization (1)	(4,948,585)	(7,055,795)
Application of valuation allowance to write down MSRs    with other than temporary impairment	-	-
Balance before valuation allowance at end of period	$             21,695,123	$             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	$             21,695,123	$             17,155,529
Estimated fair value of MSRs at end of period	$             22,921,824	$             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	3,370,190
2021	2,535,104
2022	1,999,989
2023	1,608,753
2024	1,317,529
Thereafter	10,863,558
Total	$            21,695,123

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 June 30		Six Months Ended June 30
	2020	2019	2020	2019
Contractual servicing fees	$     1,929,565	$    1,858,599	$     3,714,509	$     3,668,013
Late fees	71,704	87,291	169,512	178,890
Total	$     2,001,269	$    1,945,890	$     3,884,021	$     3,846,903

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  June 30 2020	As of December 31 2019
Servicing UPB	$        3,430,482,161	$        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
June 30, 2020	18.90	4.57	9.51
December 31, 2019	15.30	5.27	9.51