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Note 6 - Intangible Assets

12 Months Ended

Dec. 31, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

Note 6 – Intangible Assets

Intangible assets are included in the Consolidated Balance Sheets as a separate line item, net of accumulated amortization and consist of the following items:

(dollars in thousands)		Gross Intangible Assets				Additions				Accumulated Amortization				Net Intangible Assets

2013
Goodwill (1)		$	2,163			$	-			$	-			$	2,163
Core deposit (2)			2,520				-				(1,407	)			1,113
Excess servicing (3)			526				339				(631	)			234
		$	5,209			$	339			$	(2,038	)		$	3,510

2012
Goodwill (1)		$	2,163			$	-			$	-			$	2,163
Core deposit (2)			2,520				-				(1,041	)			1,479
Excess servicing (3)			490				36				(383	)			143
		$	5,173			$	36			$	(1,424	)		$	3,785

(1)

The Company recorded an initial amount of unidentified intangible (goodwill) incident to the acquisition of Fidelity & Trust Financial Corporation (“Fidelity”) of approximately $360 thousand. Based on allowable adjustments through August 31, 2009, the unidentified intangible (goodwill) amounted to approximately $2.2 million.

(2)

In connection with the Fidelity acquisition (August 2008) and a one branch purchase (January 2011) the Company made an allocation of the purchase price to the core deposit intangibles which were $2.3 million and $215 thousand respectively based on an independent evaluation. The amount of the core deposit intangible relating to the one branch acquisition was fully amortized at December 31, 2013. The amount of the core deposit intangible relating to the Fidelity acquisition at December 31, 2013 was $1.1 million, which is being amortized over its remaining economic life of 2.2 years as a component of other noninterest expense.

(3)

The Company recognizes a servicing asset for the computed value of servicing fees on the sale of the guaranteed portion of SBA loans, which is in excess of a normal servicing fee. Assumptions related to the loan term and amortization period are made to arrive at the initial recorded value.

The aggregate amortization expense was $614 thousand, $396 thousand, and $314 thousand for the years ended December 31, 2013, 2012, and 2011, respectively.

The future estimated annual amortization expense is presented below:

Years ending December 31:
(dollars in thousands)

2014		$	309
2015			301
2016			293
2017			150
2018			60
Total		$	1,113