Note 8 - Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Transfers and Servicing of Financial Assets [Text Block]

(8) 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. The principal balances of these loans as of  December 31, 2022 are as follows:

	In Thousands
December 31, 2022	2022
Mortgage loan portfolios serviced for:
FHLMC	$	85,742

For the year ended  December 31, 2022, the change in carrying value of the Company's mortgage servicing rights accounted for under the amortization method was as follows:

	In Thousands
December 31, 2022	2022
Balance at beginning of period	$	—
Servicing rights retained from loans sold		1,597
Amortization		(532	)
Valuation Allowance Provision		—
Balance at end of period	$	1,065
Fair value, end of period	$	1,252

The key data and assumptions used in estimating the fair value of the Company's mortgage servicing rights as of  December 31, 2022 were as follows:

	December 31, 2022
Prepayment speed		7.18	%
Weighted-average life (in years)		8.98
Weighted-average note rate		4.34	%
Weighted-average discount rate		9.00	%