Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Mortgage Servicing Rights

The following table presents the MSR activity.

	As of March 31 2023			As of December 31 2022
Amortized cost:
Balance before valuation allowance at beginning of year	$	3,039,765		$	53,060,455
MSR additions resulting from loan sales (1)		287,710			10,243,922
Amortization (2)		(161,342	)		(9,078,706	)
Sale of MSRs		-			(51,185,906	)
Application of valuation allowance to write down MSRs with other than temporary impairment		-			-
Balance before valuation allowance at end of period	$	3,166,133		$	3,039,765
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	$	3,166,133		$	3,039,765
Estimated fair value of MSRs at end of period	$	4,164,686		$	3,927,877

(1)	Included in mortgage fee income on the condensed consolidated statements of earnings
(2)	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. This projection was developed using the assumptions made by management in its March 31, 2023 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management. 

	Estimated MSR Amortization
2023		345,340
2024		309,193
2025		277,298
2026		246,874
2027		221,541
Thereafter		1,765,887
Total	$	3,166,133

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
	2023		2022
Contractual servicing fees	$	410,400	$	4,506,260
Late fees		49,313		100,038
Total	$	459,713	$	4,606,298

Summary of Unpaid Principal Balances of the Servicing Portfolio

The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio.

	As of March 31 2023		As of December 31 2022
Servicing UPB	$	376,394,059	$	360,023,384

Schedule of 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, 2023		8.80		8.10		11.78
December 31, 2022		8.12		8.49		11.95