Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Mortgage Servicing Rights

The following table presents the MSR activity:

	As of September 30, 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)		907,546			10,243,922
Amortization (2)		(452,588	)		(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	$	3,494,723		$	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	$	3,494,723		$	3,039,765
Estimated fair value of MSRs at end of period	$	5,012,375		$	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 table below summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the Company’s assumptions in its September 30, 2023 valuation of MSRs. The assumptions used in the following table are likely to change as market conditions, portfolio composition and borrower behavior change, causing both actual and projected amortization levels to change over time.

	Estimated MSR Amortization
2023		351,687
2024		317,526
2025		293,311
2026		265,639
2027		240,113
Thereafter		2,026,447
Total	$	3,494,723

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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Contractual servicing fees	$	249,050	$	4,644,397	$	892,668	$	13,845,626
Late fees		21,037		107,219		84,358		288,854
Total	$	270,087	$	4,751,616	$	977,026	$	14,134,480

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 September 30, 2023		As of December 31, 2022
Servicing UPB	$	411,911,166	$	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
September 30, 2023		8.00		8.59		12.22
December 31, 2022		8.12		8.49		11.95