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Mortgage Banking and Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2023
Mortgage Banking and Servicing Rights [Abstract]  
Components of Mortgage Banking Income

Mortgage banking activities primarily include residential mortgage originations and servicing.  As discussed in note 1 above, MSRs are carried at fair market value.  The following table presents the components of mortgage banking income:

(in thousands)
Year Ended December 31
  
2023
    
2022
    
2021
  
Net gain on sale of mortgage loans held for sale
  
$
395
    
$
1,525
    
$
6,820
  
Net loan servicing income:
                        
Servicing fees
    
2,080
      
2,226
      
2,058
  
Late fees
    
81
      
78
      
67
  
Ancillary fees
    
36
      
94
      
848
  
Fair value adjustments
    
(965
)
    
1,069
      
428
  
Net loan servicing income
    
1,232
      
3,467
      
3,401
  
Mortgage banking income
  
$
1,627
    
$
4,992
    
$
10,221
  
Activity for Capitalized MSRs Using Fair Value Method

Activity for capitalized MSRs using the fair value method is as follows:

(in thousands)
  
2023
    
2022
    
2021
  
Fair value of MSRs, beginning of year
  
$
8,468
    
$
6,774
    
$
4,068
  
New servicing assets created
    
162
      
625
      
2,278
  
Change in fair value during the year due to:
                        
Time decay (1)
    
(430
)
    
(450
)
    
(259
)
Payoffs (2)
    
(347
)
    
(429
)
    
(587
)
Changes in valuation inputs or assumptions (3)
    
(188
)
    
1,948
      
1,274
  
Fair value of MSRs, end of year
  
$
7,665
    
$
8,468
    
$
6,774
  

(1)
Represents decrease in value due to regularly scheduled loan principal payments and partial loan paydowns.
(2)
Represents decrease in value due to loans that paid off during the period.
(3)
Represents change in value resulting from market-driven changes in interest rates.