v3.26.1
RESIDENTIAL MORTGAGE LOAN SERVICING
6 Months Ended
Jun. 30, 2026
RESIDENTIAL MORTGAGE LOAN SERVICING  
RESIDENTIAL MORTGAGE LOAN SERVICING

NOTE 6 – RESIDENTIAL MORTGAGE LOAN SERVICING

Residential mortgage loans serviced for others are not reported as assets. The outstanding principal of these loans at June 30, 2026 and December 31, 2025 was $463.5 million and $702.6 million, respectively.

Activity for mortgage loan servicing rights and the related valuation allowance are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Three Months Ended June 30, 

​

For the Six Months Ended June 30, 

Mortgage loan servicing rights:

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

Beginning of period

​

$

1,484

​

$

1,476

​

$

1,660

​

$

1,409

Additions

​

 

—

​

 

309

​

 

—

​

 

537

Amortization expense

​

 

(176)

​

 

(137)

​

 

(352)

​

 

(255)

Valuation allowance

​

​

—

​

​

28

​

​

—

​

​

(15)

End of period, carrying value

​

$

1,308

​

$

1,676

​

$

1,308

​

$

1,676

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(Dollars in thousands)

​

For the Three Months Ended June 30, 

​

For the Six Months Ended June 30, 

Valuation allowance:

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

Beginning balance

​

$

​

​

$

63

​

$

—

​

$

20

Additions expensed

​

 

—

​

 

—

​

 

—

​

 

43

Reductions credited to operations

​

​

—

​

​

(28)

​

 

—

​

 

(28)

Direct write-downs

​

​

—

​

​

—

​

​

—

​

​

—

Ending balance

​

$

—

​

$

35

​

$

—

​

$

35

​

 The fair value of servicing rights was $5.6 million and $5.7 million at June 30, 2026 and December 31, 2025, respectively. Fair value at June 30, 2026 was determined by using a discount rate of 12.61%, prepayment speeds of 16.35%, and a weighted average default rate of 1.80%. Fair value at December 31, 2025 was determined by using a discount rate of 12.62%, prepayment speeds of 18.58%, and a weighted average default rate of 1.96%.