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&lt;p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;&lt;b&gt;NOTE 8 &amp;#x2014; Loan
Servicing&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;!-- xbrl,body --&gt;
&lt;p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;The Company generally
retains the right to service mortgage loans sold to others. The
cost allocated to the mortgage servicing rights retained has been
recognized as a separate asset within other assets and is being
amortized in proportion to and over the period of estimated net
servicing income.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"&gt;&lt;font style="FONT-FAMILY: Times New Roman" size="2"&gt;Mortgage servicing rights
are evaluated for impairment based on the fair value of those
rights. Fair values are estimated using discounted cash flows based
on current market rates of interest and expected future prepayment
rates. For purposes of measuring impairment, the rights must be
stratified by one or more predominant risk characteristics of the
underlying loans. The Company stratifies its capitalized mortgage
servicing rights based on the product type, interest rate and term
of the underlying loans. The amount of impairment recognized is the
amount, if any, by which the amortized cost of the rights for each
stratum, exceed the fair value.&lt;/font&gt;&lt;/p&gt;


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