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20) Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2013

The following table presents the MSR activity for 2013 and 2012.

	December 31 2013
	2013	2012
Amortized cost:
Balance before valuation allowance at beginning of year	$ 2,797,470	$ -
MSRs received as proceeds from loan sales	2,494,254	2,797,470
Amortization	(447,623)	-
Application of valuation allowance to write down MSRs with other than temporary impairment	-	-
Balance before valuation allowance at year end	$ 4,844,101	$ 2,797,470

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	$ 4,844,101	$ 2,797,470

Estimated fair value of MSRs at year end	$ 5,491,270	$ 2,797,470

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, 2013 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
2014		$ 587,969
2015		587,969
2016		587,969
2017		587,969
2018		587,969
Thereafter		1,904,256
Total		$ 4,844,101