Note 5 - Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Transfers and Servicing of Financial Assets [Text Block]

Note 5. Mortgage Servicing Rights

During the first quarter of 2022, the Company began selling a portfolio of residential mortgage loans to a third party, while retaining the rights to service the loans. Mortgage loans serviced for others are not reported as assets. The principal balances of these loans as of September 30, 2022 are as follows:

	In Thousands
September 30,	2022
Mortgage loan portfolios serviced for:
FHLMC	$	80,675

For the nine months ended September 30, 2022, the change in carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows:

	In Thousands
September 30,	2022
Balance at beginning of period	$	—
Servicing rights retained from loans sold		1,320
Amortization		(304	)
Valuation Allowance Provision		—
Balance at end of period	$	1,016
Fair value, end of period	$	1,194

The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of September 30, 2022 were as follows:

	September 30, 2022
Prepayment speed		6.91	%
Weighted-average life (in years)		9.12
Weighted-average note rate		4.21	%
Weighted-average discount rate		9.00	%