Note 7 - Mortgage Servicing Rights, Net

12 Months Ended

Dec. 31, 2014

Transfers and Servicing [Abstract]

Transfers and Servicing of Financial Assets [Text Block]

NOTE 7 Mortgage Servicing Rights, Net

A summary of mortgage servicing activity is as follows:

(Dollars in thousands)	2014			2013
Mortgage servicing rights:
Balance, beginning of year	$	1,708			1,732
Originations		316			568
Amortization		(517	)		(592	)
Balance, end of year		1,507			1,708
Valuation reserve		0			0
Mortgage servicing rights, net	$	1,507			1,708
Fair value of mortgage servicing rights	$	2,562			2,801

All of the single family loans sold where the Company continues to service the loans are serviced for Federal National Mortgage Association (FNMA) under the individual loan sale program. The following is a summary of the risk characteristics of the loans being serviced for FNMA at December 31, 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	$	205,032		4.30	%		299		1,758
15 year fixed rate		110,912		3.33			140		1,256
Adjustable rate		181		3.96			318		3

The gross carrying amount of mortgage servicing rights and the associated accumulated amortization at December 31, 2014 and 2013 are presented in the following table. Amortization expense for mortgage servicing rights was $0.5 million, $0.6 million, and $0.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.

	Gross					Unamortized
	Carrying		Accumulated			Mortgage
(Dollars in thousands)	Amount		Amortization			Servicing Rights
December 31, 2014
Mortgage servicing rights	$	3,600		(2,093	)		1,507
December 31, 2013
Mortgage servicing rights	$	3,638		(1,930	)		1,708

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

	Mortgage
(Dollars in thousands)	Servicing
Year ended December 31,	Rights
2015	$	425
2016		382
2017		297
2018		199
2019		132
Thereafter		72
	$	1,507

Projections of amortization are based on asset balances and the interest rate environment that existed at December 31, 2014. The Company’s actual experience may be significantly different depending upon changes in mortgage interest rates and other market conditions.