Note 10 - Intangible Assets

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

(10) Intangible Assets

The Company’s intangible assets consist of goodwill and mortgage servicing rights. A summary of mortgage servicing rights activity is as follows:

(Dollars in thousands)	Three Months Ended March 31, 2024			Twelve Months Ended December 31, 2023			Three Months Ended March 31, 2023
Balance, beginning of period	$	2,709			2,986			2,986
Originations		130			555			91
Amortization		(208	)		(832	)		(199	)
Balance, end of period	$	2,631			2,709			2,878
Fair value of mortgage servicing rights	$	6,536			6,539			6,414

All of the loans sold where the Company continues to service the loans are serviced for FNMA under the individual loan sale program. The following is a summary of the risk characteristics of the loans being serviced for FNMA at March 31, 2024:

			Weighted			Weighted
		Loan	Average			Average
		Principal	Interest			Remaining		Number
(Dollars in thousands)		Balance	Rate			Term (months)		of Loans
Original term 15 year fixed rate	$	88,613		2.93	%		124		921
Original term 30 year fixed rate		445,698		3.93			302		2,662

Amortization expense for intangible assets was $0.2 million for the three month periods ended March 31, 2024 and 2023. The gross carrying amount of intangible assets and the associated accumulated amortization at March 31, 2024 and December 31, 2023 is presented in the following table.

	Gross					Unamortized
	Carrying		Accumulated			Intangible
(Dollars in thousands)	Amount		Amortization			Assets
March 31, 2024
Mortgage servicing rights	$	6,288		(3,657	)		2,631
Goodwill		802		0			802
Total	$	7,090		(3,657	)		3,433
December 31, 2023
Mortgage servicing rights	$	6,226		(3,517	)		2,709
Goodwill		802		0			802
Total	$	7,028		(3,517	)		3,511

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

(Dollars in thousands)	Mortgage Servicing Rights
Year ending December 31,
2024	$	550
2025		672
2026		580
2027		411
2028		234
Thereafter		184
Total	$	2,631

Projections of amortization are based on existing asset balances and the existing interest rate environment as of March 31, 2024. The Company’s actual experience may be significantly different depending upon changes in mortgage interest rates and other market conditions.

No amortization expense relating to goodwill is recorded as GAAP does not allow goodwill to be amortized but requires that it be tested for impairment at least annually, or sooner, if there are indications that impairment may exist. Goodwill was tested for impairment at March 31, 2024 and the Company determined that it was not permanently impaired and no write down was required.