Note 9 - Servicing Rights

9 Months Ended

Sep. 30, 2014

Disclosure Text Block Supplement [Abstract]

Other Assets Disclosure [Text Block]

9. Servicing Rights

Residential Mortgage-Servicing Rights

The net book value of residential mortgage-servicing rights was $2.4 million at September 30, 2014 and December 31, 2013. Residential mortgage-servicing rights are included in Other assets in the Consolidated Balance Sheets. The estimated fair value of residential mortgage-servicing rights was $3.7 million and $3.8 million at September 30, 2014 and December 31, 2013, respectively.

The following table summarizes the changes in residential mortgage-servicing rights at the dates and for the periods indicated (in thousands).

	At and for the three months ended September 30,						At and for the nine months ended September 30,
	2014			2013			2014			2013
Mortgage-servicing rights portfolio, net of valuation allowance, beginning of period	$	2,384		$	2,449		$	2,431		$	2,545
Capitalized mortgage-servicing rights		115			193			357			540
Mortgage-servicing rights portfolio amortization and impairment		(142	)		(193	)		(431	)		(636	)
Mortgage-servicing rights portfolio, net of valuation allowance, end of period	$	2,357		$	2,449		$	2,357		$	2,449

The following table summarizes the activity in the valuation allowance for impairment of the residential mortgage-servicing rights portfolio at the dates and for the periods indicated (in thousands).

	At and for the three months ended September 30,						At and for the nine months ended September 30,
	2014			2013			2014			2013
Valuation allowance, beginning of period	$	33		$	82		$	31		$	41
Reductions credited to operations, net		(10	)		(42	)		(8	)		(1	)
Valuation allowance, end of period	$	23		$	40		$	23		$	40

SBA Servicing Rights

The net book value of SBA servicing rights was $80 thousand and $64 thousand at September 30, 2014 and December 31, 2013, respectively. SBA servicing rights are included in Other assets in the Consolidated Balance Sheets. The estimated fair value of SBA servicing rights was $89 thousand and $69 thousand at September 30, 2014 and December 31, 2013, respectively.

The following table summarizes the changes in SBA servicing rights at the dates and for the periods indicated (in thousands).

	At and for the three months ended September 30,						At and for the nine months ended September 30,
	2014			2013			2014			2013
SBA servicing rights portfolio, net of valuation allowance, beginning of period	$	87		$	76		$	64		$	39
Capitalized SBA servicing rights		-			-			31			47
SBA servicing rights portfolio amortization and impairment		(7	)		(3	)		(15	)		(13	)
SBA servicing rights portfolio, net of valuation allowance, end of period	$	80		$	73		$	80		$	73

The following table summarizes the activity in the valuation allowance for impairment of the SBA servicing rights portfolio at the dates and for the periods indicated (in thousands).

	At and for the three months ended September 30,				At and for the nine months ended September 30,
	2014		2013		2014		2013
Valuation allowance, beginning of period	$	9	$	3	$	8	$	-
Additions charged to operations, net		4		-		5		3
Valuation allowance, end of period	$	13	$	3	$	13	$	3