Note 7 - Intangible Assets and Loan Servicing

12 Months Ended

Dec. 31, 2021

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 $85,061,000 and $87,518,000 at December 31, 2021 and 2020, respectively.

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

Year ended December 31,	2021			2020			2019
Balance at beginning of year	$	533		$	441		$	451
Mortgage servicing rights capitalized		123			249			61
Mortgage servicing rights amortized		(132	)		(136	)		(72	)
Fair market value adjustments		14			(21	)		1
Balance at end of year	$	538		$	533		$	441

The balance of these mortgage servicing rights is included in other assets at December 31, 2021 and 2020 and the fair value of these rights was $615,000 and $568,000, respectively. The fair value of servicing rights was determined using discount rates ranging from 12.0% to 12.5% for both 2021 and 2020.

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

2022	$	100
2023		83
2024		69
2025		56
2026		46