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Loan Servicing

12 Months Ended

Dec. 31, 2016

Transfers and Servicing [Abstract]

Note 6:

Loan Servicing

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in mortgage servicing assets relate primarily to changes in prepayments that result from shifts in mortgage interest rates. The unpaid principal balance of mortgage loans serviced for others was $130,505,264 and $131,443,738 at December 31, 2016 and 2015, respectively.

The following summarized the activity pertaining to mortgage servicing rights measured using the amortization method, along with the aggregate activity in related valuation allowances:

		2016				2015
Mortgage servicing rights
Balance, beginning of year		$	645,067			$	689,603
Additions			87,579				73,650
Write-downs			(72,580	)			—
Amortization			(107,239	)			(118,186	)
Balance at end of year			552,827				645,067

Valuation allowances
Balance at beginning of year			47,354				56,969
Additions due to decreases in market value			38,967				—
Reduction due to write-downs			(72,580	)			—
Reduction due to payoff of loans			(13,741	)			(9,615	)
Balances at end of year			0				47,354

Mortgage servicing assets, net		$	552,827			$	597,713

Fair value disclosures
Fair value as of the beginning of the period		$	870,619			$	979,699
Fair value as of the end of the period		$	898,625			$	870,619

The valuation allowance was adjusted during 2016 and 2015 due to payments received on the related loans as well as changes in the estimated market value on the mortgage servicing rights asset.

Comparable market values and a valuation model that calculates the present value of future cash flows were used to estimate fair value. For purposes of measuring impairment, risk characteristics including product type, investor type, and interest rates, were used to stratify the originated mortgage servicing rights.

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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