Note 8 - Other Assets

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Other Assets Disclosure [Text Block]

(8) Other Assets

A summary of major components of other assets follows:

December 31, (in thousands)	2019		2018
Cash surrender value of life insurance other than BOLI	$	16,145	$	15,029
Net deferred tax asset		14,466		10,193
Investments in tax credit related ventures		6,248		4,537
Prepaid assets		2,812		3,072
Trust fee receivable		2,171		1,939
Mortgage servicing rights		1,372		1,022
Other real estate owned		493		1,018
Other		7,232		8,362
Total other assets	$	50,939	$	45,172

Bancorp maintains life insurance policies other than BOLI in conjunction with its non-qualified defined benefit retirement and non-qualified compensation plans.

MSRs, a component of other assets, are initially recognized at fair value when mortgage loans are sold with servicing retained. The MSRs are amortized in proportion to and over the period of estimated net servicing income, considering appropriate prepayment assumptions. MSRs are evaluated quarterly for impairment by comparing carrying value to fair value. Estimated fair values of MSRs at December 31, 2019 and December 31, 2018 were $3 million and $4 million. Total outstanding principal balances of loans serviced by Bancorp were $327 million and $328 million at December 31, 2019 and December 31, 2018.

Changes in the net carrying amount of MSRs are shown in the following table.

Years ended December 31, (in thousands)	2019			2018			2017
Balance, beginning of period	$	1,022		$	875		$	921
Additions		506			302			225
Amortized to expense		(156	)		(155	)		(271	)
Balance, end of period	$	1,372		$	1,022		$	875