Note 11 - Investment in Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2014

Transfers and Servicing [Abstract]

Transfers and Servicing of Financial Assets [Text Block]

(11)Investment in Mortgage Servicing Rights

A summary of mortgage servicing activity is as follows:

(Dollars in thousands)	Six Months ended June 30, 2014			Twelve Months ended December 31, 2013			Six Months ended June 30, 2013
Mortgage servicing rights:
Balance, beginning of period	$	1,708			1,732			1,732
Originations		112			568			394
Amortization		(249	)		(592	)		(331	)
Balance, end of period	$	1,571			1,708			1,795
Fair value of mortgage servicing rights	$	2,710			2,801			2,620

All of the loans being serviced were single family loans under the FNMA individual loan sale program. The following is a summary of the risk characteristics of the loans being serviced at June 30, 2014.

(Dollars in thousands)	Loan Principal Balance		Weighted Average Interest Rate			Weighted Average Remaining Term (months)		Number of Loans
Original term 30 year fixed rate	$	201,997		4.33	%		299		1,736
Original term 15 year fixed rate		115,713		3.38	%		142		1,298
Adjustable rate		193		3.90	%		319		5

The gross carrying amount of mortgage servicing rights and the associated accumulated amortization at June 30, 2014 is presented in the following table. Amortization expense for mortgage servicing rights was $249,000 and $331,000 for the six months ended June 30, 2014 and 2013, respectively.

	June 30, 2014
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Unamortized Amount
Mortgage servicing rights	$	3,604		(2,033	)		1,571
Total	$	3,604		(2,033	)		1,571

			June 30, 2013
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Unamortized Amount
Mortgage servicing rights	$	3,684		(1,889	)		1,795
Total	$	3,684		(1,889	)		1,795

The following table indicates the estimated future amortization expense for amortized mortgage servicing rights:

(Dollars in thousands)	Estimated Amortization Expense
Year ending December 31,
2014	$	211
2015		409
2016		363
2017		275
2018		173
Thereafter		140
	$	1,571

Projections of amortization are based on existing asset balances and the existing interest rate environment as of June 30, 2014. The Company's actual experiences may be significantly different depending upon changes in mortgage interest rates and other market conditions.