Note 7 - Intangible Assets and Loan Servicing

12 Months Ended

Dec. 31, 2024

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 $63,411,000 and $68,349,000 at December 31, 2024 and 2023, respectively.

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

Year ended December 31,	2024			2023			2022
Balance at beginning of year	$	415		$	469		$	538
Mortgage servicing rights capitalized		13			7			2
Mortgage servicing rights amortized		(50	)		(61	)		(80	)
Fair market value adjustments		—			—			9
Balance at end of year	$	378		$	415		$	469

The balance of these mortgage servicing rights is included in "Other assets" at December 31, 2024 and 2023 and the fair value of these rights was $556,000 and $583,000, respectively. The fair value of servicing rights was determined using discount rates ranging from 12.0% to 12.5% for both 2024 and 2023; and prepayment speeds ranging from 90% to 185% for 2024 compared to 104% to 214% for 2023.

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

2025	$	56
2026		49
2027		43
2028		37
2029		33