Note 20: Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2015

Notes

Note 20: Mortgage Servicing Rights

20)    Mortgage Servicing Rights

The following table presents the MSR activity for 2015 and 2014.

	December 31
	2015	2014
Amortized cost:
Balance before valuation allowance at beginning of year	$   7,834,747	$   4,844,101
MSRs received as proceeds from loan sales	6,217,551	3,741,381
Amortization	(1,372,543)	(750,735)
Application of valuation allowance to write down MSRs    with other than temporary impairment	-	-
Balance before valuation allowance at year end	$ 12,679,755	$   7,834,747
Valuation allowance for impairment of MSRs:
Balance at beginning of year	$                -	$                -
Additions	-	-
Application of valuation allowance to write down MSRs    with other than temporary impairment	-	-
Balance at year end	$                -	$                -
Mortgage servicing rights, net	$ 12,679,755	$   7,834,747
Estimated fair value of MSRs at year end	$ 13,897,160	$   8,485,570

The Company reports these MSRs pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements. The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the assumptions made by management in its December 31, 2015 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management.

	Estimated MSR Amortization
2016	$        1,408,862
2017	1,408,862
2018	1,408,862
2019	1,408,862
2020	1,408,862
Thereafter	5,635,445
Total	$      12,679,755