Note 7 - Intangible Assets and Loan Servicing

12 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

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 $81,750,000 and $77,654,000 at December 31, 2013 and 2012, respectively.

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

Year ended December 31,	2013			2012
Balance at beginning of year	$	448		$	490
Mortgage servicing rights capitalized		126			153
Mortgage servicing rights amortized		(92	)		(142	)
Fair market value adjustments		37			(53	)
Balance at end of year	$	519		$	448

The balance of these mortgage servicing rights are included in other assets at December 31, 2013 and 2012 and the fair value of these rights was $643,000 and $464,000, respectively. The fair value of servicing rights was determined using discount rates ranging from 10% to 12% for 2013 and 10% to 11% for 2012.

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

2014	$	88
2015		73
2016		61
2017		51
2018		43