Note 7 - Intangible Assets and Loan Servicing

12 Months Ended

Dec. 31, 2023

Transfers and Servicing of Financial Assets [Abstract]

Intangible Assets and Loan Servicing

Note 7 - Intangible Assets and Loan Servicing

Loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of mortgage loans serviced for others were $68,349,000 and $75,205,000 at December 31, 2023 and 2022, respectively.

The following table reflects the activity of mortgage servicing rights for the periods indicated:

Year ended December 31,	2023			2022			2021
Balance at beginning of year	$	469		$	538		$	533
Mortgage servicing rights capitalized		7			2			123
Mortgage servicing rights amortized		(61	)		(80	)		(132	)
Fair market value adjustments		—			9			14
Balance at end of year	$	415		$	469		$	538

The balance of these mortgage servicing rights is included in "Other assets at December 31, 2023 and 2022 and the fair value of these rights was $583,000 and $638,000, respectively. The fair value of servicing rights was determined using discount rates ranging from 12.0% to 12.5% for both 2023 and 2022; and prepayment speeds ranging from 104% to 214% for 2023 compared to 113% to 235% for 2022.

The annual estimated amortization expense of intangible assets for each of the five succeeding fiscal years is as follows:

2024	$	63
2025		55
2026		47
2027		41
2028		35