Peoples Bancorp of North Carolina (PEBK) 10-Q 4 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document And Entity Information
Entity Registrant Name	PEOPLES BANCORP OF NORTH CAROLINA INC
Entity Central Index Key	1,093,672
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		5,995,256
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks, including reserve requirements of $10,767 at 03/31/18 and $7,472 at 12/31/17	$ 32,849	$ 53,186
Interest-bearing deposits	34,985	4,118
Cash and cash equivalents	67,834	57,304
Investment securities available for sale	213,299	229,321
Other investments	1,834	1,830
Total securities	215,133	231,151
Mortgage loans held for sale	503	857
Loans	765,824	759,764
Less allowance for loan losses	(6,373)	(6,366)
Net loans	759,451	753,398
Premises and equipment, net	19,732	19,911
Cash surrender value of life insurance	15,647	15,552
Other real estate	62	118
Accrued interest receivable and other assets	14,869	13,875
Total assets	1,093,231	1,092,166
Deposits:
Noninterest-bearing demand	294,998	285,406
NOW, MMDA & savings	496,044	498,445
Time, $250,000 or more	17,927	18,756
Other time	98,655	104,345
Total deposits	907,624	906,952
Securities sold under agreements to repurchase	38,257	37,757
Junior subordinated debentures	20,619	20,619
Accrued interest payable and other liabilities	10,249	10,863
Total liabilities	976,749	976,191
Shareholders' equity:
Series A preferred stock, $1,000 stated value; authorized 5,000,000 shares; no shares issued and outstanding	0	0
Common stock, no par value; authorized 20,000,000 shares; issued and outstanding 5,995,256 shares	62,096	62,096
Retained earnings	52,806	50,286
Accumulated other comprehensive income	1,580	3,593
Total shareholders' equity	116,482	115,975
Total liabilities and shareholders' equity	$ 1,093,231	$ 1,092,166

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks, reserve requirements	$ 10,767	$ 7,472
Shareholders' equity:
Series A preferred stock, stated value (in dollars per share)	$ 1,000	$ 1,000
Series A preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Series A preferred stock, shares issued (in shares)	0	0
Series A preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	5,995,256	5,995,256
Common stock, shares outstanding (in shares)	5,995,256	5,995,256

Consolidated Statements of Earn

Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest income:
Interest and fees on loans	$ 9,069	$ 8,280
Interest on due from banks	45	30
Interest on investment securities:
U.S. Government sponsored enterprises	606	604
State and political subdivisions	996	1,084
Other	43	66
Total interest income	10,759	10,064
Interest expense:
NOW, MMDA & savings deposits	176	132
Time deposits	105	128
FHLB borrowings	0	192
Junior subordinated debentures	171	135
Other	15	11
Total interest expense	467	598
Net interest income	10,292	9,466
Provision for (reduction of provision for) loan losses	31	(236)
Net interest income after provision for loan losses	10,261	9,702
Non-interest income:
Service charges	1,024	1,106
Other service charges and fees	180	155
Mortgage banking income	216	346
Insurance and brokerage commissions	182	168
Appraisal management fee income	789	743
Gain/(loss) on sale and write-down of other real estate	6	(283)
Miscellaneous	1,339	1,207
Total non-interest income	3,736	3,442
Non-interest expense:
Salaries and employee benefits	4,962	5,234
Occupancy	1,856	1,613
Professional fees	380	249
Advertising	241	246
Debit card expense	209	306
FDIC insurance	83	86
Appraisal management fee expense	592	566
Other	1,719	2,061
Total non-interest expense	10,042	10,361
Earnings before income taxes	3,955	2,783
Income tax expense	652	578
Net earnings	$ 3,303	$ 2,205
Basic net earnings per share	$ 0.55	$ 0.37
Diluted net earnings per share	0.55	0.36
Cash dividends declared per share	$ 0.13	$ 0.11

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements Of Comprehensive Income
Net earnings	$ 3,303	$ 2,205
Other comprehensive income (loss):
Unrealized holding (losses) gains on securities available for sale	(2,614)	586
Total other comprehensive income (loss), before income taxes	(2,614)	586
Income tax benefit related to other comprehensive income:
Unrealized holding losses on securities available for sale	(601)	(18)
Total income tax benefit related to other comprehensive income	(601)	(18)
Total other comprehensive income (loss), net of tax	(2,013)	604
Total comprehensive income	$ 1,290	$ 2,809

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Total
Beginning Balance, Shares at Dec. 31, 2016	5,417,800
Beginning Balance, Amount at Dec. 31, 2016	$ 44,187	$ 60,254	$ 2,987	$ 107,428
Cash dividends declared on common stock		(658)		(658)
Restricted stock units exercised, shares	19,940
Restricted stock units exercised, amount	$ 558			558
Net earnings		2,205		2,205
Change in accumulated other comprehensive income, net of tax			604	604
Ending Balance, Shares at Mar. 31, 2017	5,437,740
Ending Balance, Amount at Mar. 31, 2017	$ 44,745	61,801	3,591	110,137
Beginning Balance, Shares at Dec. 31, 2017	5,995,256
Beginning Balance, Amount at Dec. 31, 2017	$ 62,096	50,286	3,593	115,975
Cash dividends declared on common stock		(783)		(783)
Net earnings		3,303		3,303
Change in accumulated other comprehensive income, net of tax			(2,013)	(2,013)
Ending Balance, Shares at Mar. 31, 2018	5,995,256
Ending Balance, Amount at Mar. 31, 2018	$ 62,096	$ 52,806	$ 1,580	$ 116,482

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net earnings	$ 3,303	$ 2,205
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation, amortization and accretion	1,230	1,228
Provision for/(Reduction) loan losses	31	(236)
Deferred income taxes	(3)	(1,122)
Gain on sale of other real estate	(6)	0
Write-down of other real estate	0	283
Loss on sale of premises and equipment	2	33
Restricted stock expense	57	430
Proceeds from sales of mortgage loans held for sale	8,530	18,376
Origination of mortgage loans held for sale	(8,176)	(14,007)
Change in:
Cash surrender value of life insurance	(95)	(299)
Other assets	(742)	1,302
Other liabilities	(319)	(1,523)
Net cash provided by operating activities	3,812	6,670
Cash flows from investing activities:
Purchases of investment securities available for sale	0	(3,071)
Proceeds from sales, calls and maturities of investment securities available for sale	7,630	2,830
Proceeds from paydowns of investment securities available for sale	5,159	5,152
Purchases of FHLB stock	(4)	(44)
Net change in loans	(6,146)	(12,101)
Purchases of premises and equipment	(434)	(2,647)
Proceeds from sale of other real estate and repossessions	124	0
Net cash provided (used) by investing activities	6,329	(9,881)
Cash flows from financing activities:
Net change in deposits	672	15,496
Net change in securities sold under agreement to repurchase	500	5,729
Proceeds from Fed Funds purchased	850	0
Repayments of Fed Funds purchased	(850)	0
Cash dividends paid on common stock	(783)	(658)
Net cash provided by financing activities	389	20,567
Net change in cash and cash equivalents	10,530	17,356
Cash and cash equivalents at beginning of period	57,304	70,094
Cash and cash equivalents at end of period	67,834	87,450
Cash paid during the period for:
Interest	290	297
Income taxes	0	0
Noncash investing and financing activities:
Change in unrealized gain on investment securities available for sale, net	(2,013)	604
Issuance of accrued restricted stock units	0	(558)
Transfers of loans to other real estate and repossessions	$ 62	$ 0

1. Summary of Significant Accou

1. Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
1. Summary of Significant Accounting Policies	The consolidated financial statements include the financial statements of Peoples Bancorp of North Carolina, Inc. and its wholly owned subsidiary, Peoples Bank (the “Bank”), along with the Bank’s wholly owned subsidiaries, Peoples Investment Services, Inc. ("PIS"), Real Estate Advisory Services, Inc. (“REAS”), Community Bank Real Estate Solutions, LLC (“CBRES”) and PB Real Estate Holdings, LLC (collectively called the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The Bank operates three banking offices focused on the Latino population that were formerly operated as a division of the Bank under the name Banco de la Gente (“Banco”). These offices are now branded as Bank branches and considered a separate market territory of the Bank as they offer normal and customary banking services as are offered in the Bank’s other branches such as the taking of deposits and the making of loans. The consolidated financial statements in this report (other than the Consolidated Balance Sheet at December 31, 2017) are unaudited. In the opinion of management, all adjustments (none of which were other than normal accruals) necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”). Actual results could differ from those estimates. The Company’s accounting policies are fundamental to understanding management’s discussion and analysis of results of operations and financial condition. Many of the Company’s accounting policies require significant judgment regarding valuation of assets and liabilities and/or significant interpretation of the specific accounting guidance. A description of the Company’s significant accounting policies can be found in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2017 Annual Report to Shareholders which is Appendix A to the Proxy Statement for the May 3, 2018 Annual Meeting of Shareholders. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, (Topic 606): Revenue from Contracts with Customers The Company has applied ASU No. 2014-09 using a modified retrospective approach. The Company’s revenue is comprised of net interest income and noninterest income. The scope of ASU No. 2014-09 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, leases, securities, and derivatives. Accordingly, the majority of the Company’s revenues are not affected. Appraisal management fee income and expense from the Bank’s subsidiary, CBRES, was previously reported as a net amount, which was included in miscellaneous non-interest income. This income and expense is now reported on separate line items under non-interest income and non-interest expense. See below for atdditional information related to revenue generated from contracts with customers. Revenue and Method of Adoption The majority of our revenue is derived primarily from interest income from receivables (loans) and securities. Other revenues are derived from fees received in connection with deposit accounts, investment advisory, and appraisal services. On January 1, 2018, we adopted the requirements of ASU No. 2014-09. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU No. 2014-09 using the modified retrospective transition approach which does not require restatement of prior periods. The method was selected as there were no material changes in the timing of revenue recognition resulting in no comparability issues with prior periods. This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and reason for the change, which is solely a result of the adoption of the required standard. When applying the modified retrospective approach under ASU No. 2014-09, the Company has elected, as a practical expedient, to apply this approach only to contracts that were not completed as of January 1, 2018. A completed contract is considered to be a contract for which all (or substantially all) of the revenue was recognized in accordance with revenue guidance that was in effect before January 1, 2018. There were no uncompleted contracts as of January 1, 2018 for which application of the new standard required an adjustment to retained earnings. The following disclosures involve our material income streams derived from contracts with customers which are within the scope of ASU No. 2014-09. Through our wholly-owned subsidiary, PIS, we contract with a registered investment advisor to perform investment advisory services on behalf of our customers. We receive commissions from this third party based on the volume of business that our customers do with them. Total revenue recognized from these contracts for the three months ended March 31, 2018 was $182,000. The Company utilizes third parties to contract with our customers to perform debit and credit card clearing services. These third parties pay us commissions based on the volume of transactions that the process on behalf of our customers. Total revenue recognized for the three months ended March 31, 2018 from the contract with this third partywas $936,000. Through our wholly-owned subsidiary, REAS, we provide property appraisal services for negotiated fee amounts on a per appraisal basis. Total revenue recognized for the three months ended March 31, 2018 from these contracts with customers was $143,000. Through our wholly-owned subsidiary, CBRES, we provide appraisal management services. Total revenue recognized for the three months ended March 31, 2018 from these contracts with customers was $789,000. Due to the nature of our relationship with the customers that we provide services, we do not incur costs to obtain contracts and there are no material incremental costs to fulfill these contracts that should be capitalized. Disaggregation of Revenue Contract Balances Performance Obligations Significant Judgements In January 2016, FASB issued ASU No. 2016-01, (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, FASB issued ASU No. 2016-02, (Topic 842): Leases The Company expects to adopt ASU No. 2016-02 using the modified retrospective method and practical expedients for transition. The practical expedients allow the Company to largely account for its existing leases consistent with current guidance except for the incremental balance sheet recognition for lessees. The Company has started an initial evaluation of its leasing contracts and activities and has started developing its methodology to estimate the right-of use assets and lease liabilities, which is based on the present value of lease payments (the December 31, 2017 future minimum lease payments were $4.8 million). While the Company does not expect there to be a material change in the timing of expense recognition, it is too early in the evaluation process to determine if there will be a material change to the timing of expense recognition. The Company is evaluating its existing disclosures and may need to provide additional information as a result of adoption of ASU No. 2016-02. In June 2016, FASB issued ASU No. 2016-13, (Topic 326): Measurement of Credit Losses on Financial Instruments The Company will apply the amendments to ASU No. 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. While early adoption is permitted beginning in the first quarter of 2019, the Company does not expect to elect that option. The Company is evaluating the impact of ASU No. 2016-13 on its consolidated financial statements. The Company anticipates that ASU No. 2016-13 will have no material impact on the recorded allowance for loan losses given the change to estimated losses over the contractual life of the loans adjusted for expected prepayments. In addition to the Company’s allowance for loan losses, it will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In January 2017, FASB issued ASU No. 2017-01, (Topic 805): Clarifying the Definition of a Business. In January 2017, FASB issued ASU No. 2017-04, (Topic 350): Simplifying the Test for Goodwill Impairment In February 2017, FASB issued ASU No. 2017-05, (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Revenue from Contracts with Customers In March 2017, FASB issued ASU No. 2017-07, (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Costs In March 2017, FASB issued ASU No. 2017-08, (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. In May 2017, FASB issued ASU No. 2017-09, (Topic 718): Scope of Modification Accounting In September 2017, FASB issued ASU No. 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic In November 2017, FASB issued ASU No. 2017-14, Income Statement—Reporting Comprehensive, Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) In February 2018, FASB issued ASU 2018-02, Income Statement (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities In March 2018, FASB issued ASU 2018-04, Investments—Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update) In March 2018, FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update) Other accounting standards that have been issued or proposed by FASB or other standards-setting bodies are not expected to have a material impact on the Company’s results of operations, financial position or disclosures.

2. Investment Securities

2. Investment Securities	3 Months Ended
	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
2. Investment Securities	Investment securities available for sale at March 31, 2018 and December 31, 2017 are as follows: (Dollars in thousands) March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 49,731 559 722 49,568 U.S. Government sponsored enterprises 38,466 24 649 37,841 State and political subdivisions 121,299 2,994 152 124,141 Corporate bonds 1,500 - 1 1,499 Trust preferred securities 250 - - 250 Total $ 211,246 3,577 1,524 213,299 (Dollars in thousands) December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 53,124 814 329 53,609 U.S. Government sponsored enterprises 40,504 140 264 40,380 State and political subdivisions 129,276 4,310 16 133,570 Corporate bonds 1,500 12 - 1,512 Trust preferred securities 250 - - 250 Total $ 224,654 5,276 609 229,321 The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2018 and December 31, 2017 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position. (Dollars in thousands) March 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 13,062 219 10,693 503 23,755 722 U.S. Government sponsored enterprises 26,715 448 9,665 201 36,380 649 State and political subdivisions 7,023 122 965 30 7,988 152 Corporate bonds 999 1 - - 999 1 Total $ 47,799 790 21,323 734 69,122 1,524 (Dollars in thousands) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 8,701 75 11,259 254 19,960 329 U.S. Government sponsored enterprises 12,661 98 10,067 166 22,728 264 State and political subdivisions 798 2 1,501 14 2,299 16 Total $ 22,160 175 22,827 434 44,987 609 At March 31, 2018, unrealized losses in the investment securities portfolio relating to debt securities totaled $1.5 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the March 31, 2018 tables above, 12 out of 150 securities issued by state and political subdivisions contained unrealized losses, 36 out of 79 securities issued by U.S. Government sponsored enterprises contained unrealized losses, one out of two issued by corporations contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed. The amortized cost and estimated fair value of investment securities available for sale at March 31, 2018, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2018 (Dollars in thousands) Amortized Cost Estimated Fair Value Due within one year $ 12,931 13,039 Due from one to five years 101,101 103,219 Due from five to ten years 38,976 38,938 Due after ten years 8,257 8,285 Mortgage-backed securities 49,731 49,568 Trust preferred securities 250 250 Total $ 211,246 213,299 No securities available for sale were sold during the three months ended March 31, 2018 and 2017. Securities with a fair value of approximately $99.2 million and $105.6 million at March 31, 2018 and December 31, 2017, respectively, were pledged to secure public deposits and for other purposes as required by law.

3. Loans

3. Loans	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
3. Loans	Major classifications of loans at March 31, 2018 and December 31, 2017 are summarized as follows: (Dollars in thousands) March 31, 2018 December 31, 2017 Real estate loans: Construction and land development $ 82,046 84,987 Single-family residential 244,061 246,703 Single-family residential - Banco de la Gente stated income 36,540 37,249 Commercial 261,636 248,637 Multifamily and farmland 29,108 28,937 Total real estate loans 653,391 646,513 Loans not secured by real estate: Commercial loans 89,304 89,022 Farm loans 1,095 1,204 Consumer loans 9,329 9,888 All other loans 12,705 13,137 Total loans 765,824 759,764 Less allowance for loan losses 6,373 6,366 Total net loans $ 759,451 753,398 The Bank grants loans and extensions of credit primarily within the Catawba Valley region of North Carolina, which encompasses Catawba, Alexander, Iredell and Lincoln counties, and also in Mecklenburg, Wake and Durham counties of North Carolina. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate, the value of which is dependent upon the real estate market. Risk characteristics of the major components of the Bank’s loan portfolio are discussed below: ● Construction and land development loans – The risk of loss is largely dependent on the initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If the estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. As of March 31, 2018, construction and land development loans comprised approximately 11% of the Bank’s total loan portfolio. ● Single-family residential loans – Declining home sales volumes, decreased real estate values and higher than normal levels of unemployment could contribute to losses on these loans. As of March 31, 2018, single-family residential loans comprised approximately 37% of the Bank’s total loan portfolio, and include Banco’s single-family residential stated income loans, which were approximately 5% of the Bank’s total loan portfolio. ● Commercial real estate loans – Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risk because they are generally not fully amortizing over a loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property. As of March 31, 2018, commercial real estate loans comprised approximately 34% of the Bank’s total loan portfolio. ● Commercial loans – Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid or fluctuate in value based on the success of the business. As of March 31, 2018, commercial loans comprised approximately 12% of the Bank’s total loan portfolio. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following tables present an age analysis of past due loans, by loan type, as of March 31, 2018 and December 31, 2017: March 31, 2018 (Dollars in thousands) Loans 30- 89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 156 117 273 81,773 82,046 - Single-family residential 2,775 96 2,871 241,190 244,061 - Single-family residential - Banco de la Gente stated income 4,196 54 4,250 32,290 36,540 - Commercial 427 - 427 261,209 261,636 - Multifamily and farmland - - - 29,108 29,108 - Total real estate loans 7,554 267 7,821 645,570 653,391 - Loans not secured by real estate: Commercial loans 59 97 156 89,148 89,304 - Farm loans - - - 1,095 1,095 - Consumer loans 85 5 90 9,239 9,329 - All other loans - - - 12,705 12,705 - Total loans $ 7,698 369 8,067 757,757 765,824 - December 31, 2017 (Dollars in thousands) Loans 30- 89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 277 - 277 84,710 84,987 - Single-family residential 3,241 193 3,434 243,269 246,703 - Single-family residential - Banco de la Gente stated income 4,078 465 4,543 32,706 37,249 - Commercial 588 - 588 248,049 248,637 - Multifamily and farmland - 12 12 28,925 28,937 - Total real estate loans 8,184 670 8,854 637,659 646,513 - Loans not secured by real estate: Commercial loans 53 100 153 88,869 89,022 - Farm loans - - - 1,204 1,204 - Consumer loans 113 5 118 9,770 9,888 - All other loans - - - 13,137 13,137 - Total loans $ 8,350 775 9,125 750,639 759,764 - The following table presents non-accrual loans as of March 31, 2018 and December 31, 2017: (Dollars in thousands) March 31, 2018 December 31, 2017 Real estate loans: Construction and land development $ 130 14 Single-family residential 1,535 1,634 Single-family residential - Banco de la Gente stated income 1,508 1,543 Commercial 378 396 Multifamily and farmland - 12 Total real estate loans 3,551 3,599 Loans not secured by real estate: Commercial loans 97 100 Consumer loans 17 12 Total $ 3,665 3,711 At each reporting period, the Bank determines which loans are impaired. Accordingly, the Bank’s impaired loans are reported at their estimated fair value on a non-recurring basis. An allowance for each impaired loan that is collateral-dependent is calculated based on the fair value of its collateral. The fair value of the collateral is based on appraisals performed by REAS, a subsidiary of the Bank. REAS is staffed by certified appraisers that also perform appraisals for other companies. Factors, including the assumptions and techniques utilized by the appraiser, are considered by management. If the recorded investment in the impaired loan exceeds the measure of fair value of the collateral, a valuation allowance is recorded as a component of the allowance for loan losses. An allowance for each impaired loan that is not collateral dependent is calculated based on the present value of projected cash flows. If the recorded investment in the impaired loan exceeds the present value of projected cash flows, a valuation allowance is recorded as a component of the allowance for loan losses. Impaired loans under $250,000 are not individually evaluated for impairment with the exception of the Bank’s troubled debt restructured (“TDR”) loans in the residential mortgage loan portfolio, which are individually evaluated for impairment. Accruing impaired loans were $23.8 million, $24.6 million and $26.1 million at March 31, 2018, December 31, 2017 and March 31, 2017, respectively. Interest income recognized on accruing impaired loans was $352,000, $1.4 million, and $372,000 for the three months ended March 31, 2018, the year ended December 31, 2017 and the three months ended March 31, 2017, respectively. No interest income is recognized on non-accrual impaired loans subsequent to their classification as non-accrual. The following table presents impaired loans as of March 31, 2018: March 31, 2018 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans YTD Interest Income Recognized Real estate loans: Construction and land development $ 397 - 265 265 9 333 6 Single-family residential 5,080 1,124 3,486 4,610 37 6,258 68 Single-family residential - Banco de la Gente stated income 17,027 - 17,639 17,639 1,096 15,099 238 Commercial 2,420 477 2,873 3,350 13 2,294 37 Multifamily and farmland - - 78 78 - 6 - Total impaired real estate loans 24,924 1,601 24,341 25,942 1,155 23,990 349 Loans not secured by real estate: Commercial loans 260 97 (92 ) 5 - 102 - Consumer loans 154 - 192 192 2 152 2 Total impaired loans $ 25,338 1,698 24,441 26,139 1,157 24,244 351 The following table presents impaired loans as of and for the year ended December 31, 2017: December 31, 2017 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans YTD Interest Income Recognized Real estate loans: Construction and land development $ 282 - 277 277 6 253 17 Single-family residential 5,226 1,135 3,686 4,821 41 5,113 265 Single-family residential - Banco de la Gente stated income 17,360 - 16,805 16,805 1,149 16,867 920 Commercial 2,761 807 1,661 2,468 1 3,411 148 Multifamily and farmland 78 - 12 12 - 28 - Total impaired real estate loans 25,707 1,942 22,441 24,383 1,197 25,672 1,350 Loans not secured by real estate: Commercial loans 264 100 4 104 - 149 3 Consumer loans 158 - 154 154 2 194 9 Total impaired loans $ 26,129 2,042 22,599 24,641 1,199 26,015 1,362 Changes in the allowance for loan losses for the three months ended March 31, 2018 and 2017 were as follows: (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Three months ended March 31, 2018 Allowance for loan losses: Beginning balance $ 804 1,812 1,280 1,193 72 574 - 155 476 6,366 Charge-offs - - - - (5 ) - - (101 ) - (106 ) Recoveries 1 5 - 4 1 8 - 63 - 82 Provision (154 ) (177 ) (15 ) 101 5 124 - 19 128 31 Ending balance $ 651 1,640 1,265 1,298 73 706 - 136 604 6,373 Allowance for loan losses March 31, 2018 Ending balance: individually evaluated for impairment $ - - 1,079 12 - - - - - 1,091 Ending balance: collectively evaluated for impairment 651 1,640 186 1,286 73 706 - 136 604 5,282 Ending balance $ 651 1,640 1,265 1,298 73 706 - 136 604 6,373 Loans March 31, 2017: Ending balance $ 82,046 244,061 36,540 261,636 29,108 89,304 1,095 22,034 - 765,824 Ending balance: individually evaluated for impairment $ 96 1,832 15,190 1,915 - 97 - - - 19,130 Ending balance: collectively evaluated for impairment $ 81,950 242,229 21,350 259,721 29,108 89,207 1,095 22,034 - 746,694 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Three months ended March 31, 2017 Allowance for loan losses: Beginning balance $ 1,152 2,126 1,377 1,593 52 675 - 204 371 7,550 Charge-offs - (20 ) - - - (2 ) - (109 ) - (131 ) Recoveries 8 7 - 7 - 8 - 50 - 80 Provision (191 ) (110 ) (49 ) 55 21 (53 ) - 33 58 (236 ) Ending balance $ 969 2,003 1,328 1,655 73 628 - 178 429 7,263 Allowance for loan losses March 31, 2017 Ending balance: individually evaluated for impairment $ - - 1,120 62 - - - - - 1,182 Ending balance: collectively evaluated for impairment 969 2,003 208 1,593 73 628 - 178 429 6,081 Ending balance $ 969 2,003 1,328 1,655 73 628 - 178 429 7,263 Loans March 31, 2017: Ending balance $ 65,438 239,322 39,230 247,940 29,078 90,923 897 23,033 - 735,861 Ending balance: individually evaluated for impairment $ - 1,630 16,303 2,736 - - - - - 20,669 Ending balance: collectively evaluated for impairment $ 65,438 237,692 22,927 245,204 29,078 90,923 897 23,033 - 715,192 The provision for loan losses for the three months ended March 31, 2018 was an expense of $31,000, as compared to a credit of $236,000 for the three months ended March 31, 2017. The increase in the provision for loan losses is primarily attributable to a $30.0 million increase in loans from March 31, 2017 to March 31, 2018. The Company utilizes an internal risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 8. These risk grades are evaluated on an ongoing basis. A description of the general characteristics of the eight risk grades is as follows: characteristics of the eight risk grades is as follows: ● Risk Grade 1 – Excellent Quality: Loans are well above average quality and a minimal amount of credit risk exists. Certificates of deposit or cash secured loans or properly margined actively traded stock or bond secured loans would fall in this grade. ● Risk Grade 2 – High Quality: Loans are of good quality with risk levels well within the Company’s range of acceptability. The organization or individual is established with a history of successful performance though somewhat susceptible to economic changes. ● Risk Grade 3 – Good Quality: Loans of average quality with risk levels within the Company’s range of acceptability but higher than normal. This may be a new organization or an existing organization in a transitional phase (e.g. expansion, acquisition, market change). ● Risk Grade 4 – Management Attention: These loans have higher risk and servicing needs but still are acceptable. Evidence of marginal performance or deteriorating trends is observed. These are not problem credits presently, but may be in the future if the borrower is unable to change its present course. ● Risk Grade 5 – Watch: These loans are currently performing satisfactorily, but there has been some recent past due history on repayment and there are potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Company’s position at some future date. ● Risk Grade 6 – Substandard: A Substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or the collateral pledged (if there is any). There is a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. There is a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. ● Risk Grade 7 – Doubtful: Loans classified as Doubtful have all the weaknesses inherent in loans classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Doubtful is a temporary grade where a loss is expected but is presently not quantified with any degree of accuracy. Once the loss position is determined, the amount is charged off. ● Risk Grade 8 – Loss: Loans classified as Loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be realized in the future. Loss is a temporary grade until the appropriate authority is obtained to charge the loan off. The following tables present the credit risk profile of each loan type based on internally assigned risk grades as of March 31, 2018 and December 31, 2017: March 31, 2018 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ 273 7,298 - - - 542 - 525 - 8,638 2- High Quality 20,125 119,589 - 35,003 518 19,667 - 3,427 2,320 200,649 3- Good Quality 51,400 90,160 14,788 205,753 25,635 64,485 933 4,717 9,594 467,465 4- Management Attention 4,495 19,595 14,925 17,177 1,825 4,199 162 609 791 63,778 5- Watch 5,476 4,346 3,136 3,282 1,130 292 - 21 - 17,683 6- Substandard 277 3,073 3,691 421 - 119 - 30 - 7,611 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 82,046 244,061 36,540 261,636 29,108 89,304 1,095 9,329 12,705 765,824 December 31, 2017 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ 152 8,590 - - - 446 - 791 - 9,979 2- High Quality 20,593 120,331 - 34,360 561 17,559 - 3,475 2,410 199,289 3- Good Quality 53,586 89,120 14,955 196,439 25,306 65,626 1,085 5,012 9,925 461,054 4- Management Attention 4,313 20,648 15,113 13,727 1,912 5,051 119 562 802 62,247 5- Watch 6,060 4,796 3,357 3,671 1,146 223 - 23 - 19,276 6- Substandard 283 3,218 3,824 440 12 117 - 25 - 7,919 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 84,987 246,703 37,249 248,637 28,937 89,022 1,204 9,888 13,137 759,764 Current year TDR modifications, past due TDR loans and non-accrual TDR loans totaled $4.4 million and $4.5 million at March 31, 2018 and December 31, 2017, respectively. The terms of these loans have been renegotiated to provide a concession to original terms, including a reduction in principal or interest as a result of the deteriorating financial position of the borrower. There were no performing loans classified as TDR loans at March 31, 2018. There was $21,000 in performing loans classified as TDR loans at December 31, 2017. There were no new TDR modifications during the three months ended March 31, 2018 and 2017. There were no loans modified as TDR that defaulted during the three months ended March 31, 2018 and 2017, which were within 12 months of their modification date. Generally, a TDR loan is considered to be in default once it becomes 90 days or more past due following a modification.

4. Net Earnings Per Share

4. Net Earnings Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
4. Net Earnings Per Share	Net earnings per share is based on the weighted average number of shares outstanding during the period while the effects of potential shares outstanding during the period are included in diluted earnings per share. The average market price during the year is used to compute equivalent shares. The reconciliation of the amounts used in the computation of both “basic earnings per share” and “diluted earnings per share” for the three months ended March 31, 2018 and 2017 is as follows: For the three months ended March 31, 2018 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,303 5,995,256 $ 0.55 Effect of dilutive securities: Restricted stock units - 17,000 Diluted earnings per share $ 3,303 6,012,256 $ 0.55 For the three months ended March 31, 2017 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 2,205 5,970,006 $ 0.37 Effect of dilutive securities: Restricted stock units - 92,140 Diluted earnings per share $ 2,205 6,062,146 $ 0.36 In November 2017, the Board of Directors of the Company declared a cash dividend in the amount of $0.12 per share and a 10% stock dividend. The cash dividend was paid based on the number of shares held by shareholders on the record date of December 4, 2017. As a result of the stock dividend, each shareholder received one new share of stock for every ten shares of stock they held as of the record date of December 4, 2017. The payable date for the cash dividend and stock dividend was December 15, 2017. All previously reported per share amounts have been restated to reflect this stock dividend.

5. Stock-Based Compensation

5. Stock-Based Compensation	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
5. Stock-Based Compensation	The Company has an Omnibus Stock Ownership and Long Term Incentive Plan that was approved by shareholders on May 7, 2009 (the “Plan”) whereby certain stock-based rights, such as stock options, restricted stock, restricted stock units, performance units, stock appreciation rights or book value shares, may be granted to eligible directors and employees. A total of 280,933 shares are currently reserved for possible issuance under the Plan. All stock-based rights under the Plan must be granted or awarded by May 7, 2019 (i.e., ten years from the Plan effective date). The Company granted 32,465 restricted stock units under the Plan at a grant date fair value of $7.18 per share during the first quarter of 2012, of which 5,891 restricted stock units were forfeited by the executive officers of the Company as required by the agreement with the U.S. Department of the Treasury in conjunction with the Company’s participation in the Capital Purchase Program under the Troubled Asset Relief Program. In July 2012, the Company granted 5,891 restricted stock units at a grant date fair value of $7.50 per share. The Company granted 29,475 restricted stock units under the Plan at a grant date fair value of $10.82 per share during the second quarter of 2013. The Company granted 23,162 restricted stock units under the Plan at a grant date fair value of $14.27 per share during the first quarter of 2014. The Company granted 16,583 restricted stock units under the Plan at a grant date fair value of $16.34 per share during the first quarter of 2015. The Company granted 5,544 restricted stock units under the Plan at a grant date fair value of $16.91 per share during the first quarter of 2016. The Company granted 4,114 restricted stock units under the Plan at a grant date fair value of $25.00 per share during the first quarter of 2017. The Company granted 3,725 restricted stock units under the Plan at a grant date fair value of $31.43 per share during the first quarter of 2018. The number of restricted stock units granted and grant date fair values have been restated to reflect the 10% stock dividend during the fourth quarter of 2017. The Company recognizes compensation expense on the restricted stock units over the period of time the restrictions are in place (five years from the grant date for the 2012 grants, four years from the grant date for the 2013, 2015, 2016, 2017 and 2018 grants and three years from the grant date for the 2014 grants). The amount of expense recorded each period reflects the changes in the Company’s stock price during such period. As of March 31, 2018, the total unrecognized compensation expense related to the restricted stock unit grants under the Plan was $377,000. The Company recognized compensation expense for restricted stock unit awards granted under the Plan of $57,000 and $430,000 for the three months ended March 31, 2018 and 2017, respectively.

6. Fair Value

6. Fair Value	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
6. Fair Value	The Company is required to disclose fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good faith estimate of the increase or decrease in the value of financial instruments held by the Company since purchase, origination or issuance. The methods of determining the fair value of assets and liabilities presented in this note are consistent with methodologies disclosed in Note 15 of the Company’s 2017 Form 10-K, except for the valuation of loans which was impacted by the adoption of ASU No. 2016-01. The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: ● Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. ● Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. ● Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Cash and Cash Equivalents For cash, due from banks and interest-bearing deposits, the carrying amount is a reasonable estimate of fair value. Cash and cash equivalents are reported in the Level 1 fair value category. Investment Securities Available for Sale Fair values of investment securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges when available. If quoted prices are not available, fair value is determined using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Fair values for investment securities with quoted market prices are reported in the Level 1 fair value category. Fair value measurements obtained from independent pricing services are reported in the Level 2 fair value category. All other fair value measurements are reported in the Level 3 fair value category. Other Investments For other investments, the carrying value is a reasonable estimate of fair value. Other investments are reported in the Level 3 fair value category. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at the lower of aggregate cost or market value. The cost of mortgage loans held for sale approximates the market value. Mortgage loans held for sale are reported in the Level 3 fair value category. Loans In accordance with ASU No. 2016-01, the fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and nonperformance risk of the loans. Loans are reported in the Level 3 fair value category, as the pricing of loans is more subjective than the pricing of other financial instruments. Cash Surrender Value of Life Insurance For cash surrender value of life insurance, the carrying value is a reasonable estimate of fair value. Cash surrender value of life insurance is reported in the Level 2 fair value category. Other Real Estate The fair value of other real estate is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Other real estate is reported in the Level 3 fair value category. Deposits The fair value of demand deposits, interest-bearing demand deposits and savings is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Deposits are reported in the Level 2 fair value category. Securities Sold Under Agreements to Repurchase For securities sold under agreements to repurchase, the carrying value is a reasonable estimate of fair value. Securities sold under agreements to repurchase are reported in the Level 2 fair value category. Federal Home Loan Bank (“FHLB”) Borrowings The fair value of FHLB borrowings is estimated based upon discounted future cash flows using a discount rate comparable to the current market rate for such borrowings. FHLB borrowings are reported in the Level 2 fair value category. Junior Subordinated Debentures Because the Company’s junior subordinated debentures were issued at a floating rate, the carrying amount is a reasonable estimate of fair value. Junior subordinated debentures are reported in the Level 2 fair value category. Commitments to Extend Credit and Standby Letters of Credit Commitments to extend credit and standby letters of credit are generally short-term and at variable interest rates. Therefore, both the carrying value and estimated fair value associated with these instruments are immaterial. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The table below presents the balance of securities available for sale, which are measured at fair value on a recurring basis by level within the fair value hierarchy, as of March 31, 2018 and December 31, 2017. (Dollars in thousands) March 31, 2018 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 49,568 - 49,568 - U.S. Government sponsored enterprises $ 37,841 - 37,841 - State and political subdivisions $ 124,141 - 124,141 - Corporate bonds $ 1,499 - 1,499 - Trust preferred securities $ 250 - - 250 (Dollars in thousands) December 31, 2017 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 53,609 - 53,609 - U.S. Government sponsored enterprises $ 40,380 - 40,380 - State and political subdivisions $ 133,570 - 133,570 - Corporate bonds $ 1,512 - 1,512 - Trust preferred securities $ 250 - - 250 The following is an analysis of fair value measurements of investment securities available for sale using Level 3, significant unobservable inputs, for the three months ended March 31, 2018. (Dollars in thousands) Investment Securities Available for Sale Level 3 Valuation Balance, beginning of period $ 250 Change in book value - Change in gain/(loss) realized and unrealized - Purchases/(sales and calls) - Transfers in and/or (out) of Level 3 - Balance, end of period $ 250 Change in unrealized gain/(loss) for assets still held in Level 3 $ - The fair value measurements for mortgage loans held for sale, impaired loans and other real estate on a non-recurring basis at March 31, 2018 and December 31, 2017 are presented below. The fair value measurement process uses certified appraisals and other market-based information; however, in many cases, it also requires significant input based on management’s knowledge of, and judgment about, current market conditions, specific issues relating to the collateral and other matters. As a result, all fair value measurements for impaired loans and other real estate are considered Level 3. (Dollars in thousands) Fair Value Measurements March 31, 2018 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 503 - - 503 Impaired loans $ 24,982 - - 24,982 Other real estate $ 62 - - 62 (Dollars in thousands) Fair Value Measurements December 31, 2017 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 857 - - 857 Impaired loans $ 23,442 - - 23,442 Other real estate $ 118 - - 118 (Dollars in thousands) Fair Value March 31, 2018 Fair Value December 31, 2017 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Mortgage loans held for sale $ 503 857 Rate lock commitment N/A N/A Impaired loans $ 24,982 23,442 Appraised value and discounted cash flows Discounts to reflect current market conditions and ultimate collectability 0 - 25% Other real estate $ 62 118 Appraised value Discounts to reflect current market conditions and estimated costs to sell 0 - 25% The carrying amount and estimated fair value of financial instruments at March 31, 2018 and December 31, 2017 are as follows: (Dollars in thousands) Fair Value Measurements at March 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 67,834 67,834 - - 67,834 Investment securities available for sale $ 213,299 - 213,049 250 213,299 Other investments $ 1,834 - - 1,834 1,834 Mortgage loans held for sale $ 503 - - 503 503 Loans, net $ 759,451 - - 738,009 738,009 Cash surrender value of life insurance $ 15,647 - 15,647 - 15,647 Liabilities: Deposits $ 907,624 - - 891,109 891,109 Securities sold under agreements to repurchase $ 38,257 - 38,257 - 38,257 Junior subordinated debentures $ 20,619 - 20,619 - 20,619 (Dollars in thousands) Fair Value Measurements at December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 53,186 53,186 - - 53,186 Investment securities available for sale $ 229,321 - 229,071 250 229,321 Other investments $ 1,830 - - 1,830 1,830 Mortgage loans held for sale $ 857 - - 857 857 Loans, net $ 753,398 - - 735,837 735,837 Cash surrender value of life insurance $ 15,552 - 15,552 - 15,552 Liabilities: Deposits $ 906,952 - - 894,932 894,932 Securities sold under agreements to repurchase $ 37,757 - 37,757 - 37,757 Junior subordinated debentures $ 20,619 - 20,619 - 20,619

7. Subsequent Events

7. Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
7. Subsequent Events	The Company has reviewed and evaluated subsequent events and transactions for material subsequent events through the date the financial statements are issued. Management has concluded that there were no material subsequent events.

2. Investment Securities (Table

2. Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Investment securities available for sale	(Dollars in thousands) March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 49,731 559 722 49,568 U.S. Government sponsored enterprises 38,466 24 649 37,841 State and political subdivisions 121,299 2,994 152 124,141 Corporate bonds 1,500 - 1 1,499 Trust preferred securities 250 - - 250 Total $ 211,246 3,577 1,524 213,299 (Dollars in thousands) December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Mortgage-backed securities $ 53,124 814 329 53,609 U.S. Government sponsored enterprises 40,504 140 264 40,380 State and political subdivisions 129,276 4,310 16 133,570 Corporate bonds 1,500 12 - 1,512 Trust preferred securities 250 - - 250 Total $ 224,654 5,276 609 229,321
Current fair value and associated unrealized losses on investments in securities with unrealized losses	(Dollars in thousands) March 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 13,062 219 10,693 503 23,755 722 U.S. Government sponsored enterprises 26,715 448 9,665 201 36,380 649 State and political subdivisions 7,023 122 965 30 7,988 152 Corporate bonds 999 1 - - 999 1 Total $ 47,799 790 21,323 734 69,122 1,524 (Dollars in thousands) December 31, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Mortgage-backed securities $ 8,701 75 11,259 254 19,960 329 U.S. Government sponsored enterprises 12,661 98 10,067 166 22,728 264 State and political subdivisions 798 2 1,501 14 2,299 16 Total $ 22,160 175 22,827 434 44,987 609
Amortized cost and estimated fair value of investment securities available for sale by contractual maturity	March 31, 2018 (Dollars in thousands) Amortized Cost Estimated Fair Value Due within one year $ 12,931 13,039 Due from one to five years 101,101 103,219 Due from five to ten years 38,976 38,938 Due after ten years 8,257 8,285 Mortgage-backed securities 49,731 49,568 Trust preferred securities 250 250 Total $ 211,246 213,299

3. Loans (Tables)

3. Loans (Tables)	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Major classifications of loans	(Dollars in thousands) March 31, 2018 December 31, 2017 Real estate loans: Construction and land development $ 82,046 84,987 Single-family residential 244,061 246,703 Single-family residential - Banco de la Gente stated income 36,540 37,249 Commercial 261,636 248,637 Multifamily and farmland 29,108 28,937 Total real estate loans 653,391 646,513 Loans not secured by real estate: Commercial loans 89,304 89,022 Farm loans 1,095 1,204 Consumer loans 9,329 9,888 All other loans 12,705 13,137 Total loans 765,824 759,764 Less allowance for loan losses 6,373 6,366 Total net loans $ 759,451 753,398
Age analysis of past due loans, by loan type	March 31, 2018 (Dollars in thousands) Loans 30- 89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 156 117 273 81,773 82,046 - Single-family residential 2,775 96 2,871 241,190 244,061 - Single-family residential - Banco de la Gente stated income 4,196 54 4,250 32,290 36,540 - Commercial 427 - 427 261,209 261,636 - Multifamily and farmland - - - 29,108 29,108 - Total real estate loans 7,554 267 7,821 645,570 653,391 - Loans not secured by real estate: Commercial loans 59 97 156 89,148 89,304 - Farm loans - - - 1,095 1,095 - Consumer loans 85 5 90 9,239 9,329 - All other loans - - - 12,705 12,705 - Total loans $ 7,698 369 8,067 757,757 765,824 - December 31, 2017 (Dollars in thousands) Loans 30- 89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Total Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate loans: Construction and land development $ 277 - 277 84,710 84,987 - Single-family residential 3,241 193 3,434 243,269 246,703 - Single-family residential - Banco de la Gente stated income 4,078 465 4,543 32,706 37,249 - Commercial 588 - 588 248,049 248,637 - Multifamily and farmland - 12 12 28,925 28,937 - Total real estate loans 8,184 670 8,854 637,659 646,513 - Loans not secured by real estate: Commercial loans 53 100 153 88,869 89,022 - Farm loans - - - 1,204 1,204 - Consumer loans 113 5 118 9,770 9,888 - All other loans - - - 13,137 13,137 - Total loans $ 8,350 775 9,125 750,639 759,764 -
Non-accrual loans	(Dollars in thousands) March 31, 2018 December 31, 2017 Real estate loans: Construction and land development $ 130 14 Single-family residential 1,535 1,634 Single-family residential - Banco de la Gente stated income 1,508 1,543 Commercial 378 396 Multifamily and farmland - 12 Total real estate loans 3,551 3,599 Loans not secured by real estate: Commercial loans 97 100 Consumer loans 17 12 Total $ 3,665 3,711
Impaired loans	March 31, 2018 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans YTD Interest Income Recognized Real estate loans: Construction and land development $ 397 - 265 265 9 333 6 Single-family residential 5,080 1,124 3,486 4,610 37 6,258 68 Single-family residential - Banco de la Gente stated income 17,027 - 17,639 17,639 1,096 15,099 238 Commercial 2,420 477 2,873 3,350 13 2,294 37 Multifamily and farmland - - 78 78 - 6 - Total impaired real estate loans 24,924 1,601 24,341 25,942 1,155 23,990 349 Loans not secured by real estate: Commercial loans 260 97 (92 ) 5 - 102 - Consumer loans 154 - 192 192 2 152 2 Total impaired loans $ 25,338 1,698 24,441 26,139 1,157 24,244 351 December 31, 2017 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Recorded Investment in Impaired Loans Related Allowance Average Outstanding Impaired Loans YTD Interest Income Recognized Real estate loans: Construction and land development $ 282 - 277 277 6 253 17 Single-family residential 5,226 1,135 3,686 4,821 41 5,113 265 Single-family residential - Banco de la Gente stated income 17,360 - 16,805 16,805 1,149 16,867 920 Commercial 2,761 807 1,661 2,468 1 3,411 148 Multifamily and farmland 78 - 12 12 - 28 - Total impaired real estate loans 25,707 1,942 22,441 24,383 1,197 25,672 1,350 Loans not secured by real estate: Commercial loans 264 100 4 104 - 149 3 Consumer loans 158 - 154 154 2 194 9 Total impaired loans $ 26,129 2,042 22,599 24,641 1,199 26,015 1,362
Changes in the allowance for loan losses	Changes in the allowance for loan losses for the three months ended March 31, 2018 and 2017 were as follows: (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Three months ended March 31, 2018 Allowance for loan losses: Beginning balance $ 804 1,812 1,280 1,193 72 574 - 155 476 6,366 Charge-offs - - - - (5 ) - - (101 ) - (106 ) Recoveries 1 5 - 4 1 8 - 63 - 82 Provision (154 ) (177 ) (15 ) 101 5 124 - 19 128 31 Ending balance $ 651 1,640 1,265 1,298 73 706 - 136 604 6,373 Allowance for loan losses March 31, 2018 Ending balance: individually evaluated for impairment $ - - 1,079 12 - - - - - 1,091 Ending balance: collectively evaluated for impairment 651 1,640 186 1,286 73 706 - 136 604 5,282 Ending balance $ 651 1,640 1,265 1,298 73 706 - 136 604 6,373 Loans March 31, 2017: Ending balance $ 82,046 244,061 36,540 261,636 29,108 89,304 1,095 22,034 - 765,824 Ending balance: individually evaluated for impairment $ 96 1,832 15,190 1,915 - 97 - - - 19,130 Ending balance: collectively evaluated for impairment $ 81,950 242,229 21,350 259,721 29,108 89,207 1,095 22,034 - 746,694 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer and All Other Unallocated Total Three months ended March 31, 2017 Allowance for loan losses: Beginning balance $ 1,152 2,126 1,377 1,593 52 675 - 204 371 7,550 Charge-offs - (20 ) - - - (2 ) - (109 ) - (131 ) Recoveries 8 7 - 7 - 8 - 50 - 80 Provision (191 ) (110 ) (49 ) 55 21 (53 ) - 33 58 (236 ) Ending balance $ 969 2,003 1,328 1,655 73 628 - 178 429 7,263 Allowance for loan losses March 31, 2017 Ending balance: individually evaluated for impairment $ - - 1,120 62 - - - - - 1,182 Ending balance: collectively evaluated for impairment 969 2,003 208 1,593 73 628 - 178 429 6,081 Ending balance $ 969 2,003 1,328 1,655 73 628 - 178 429 7,263 Loans March 31, 2017: Ending balance $ 65,438 239,322 39,230 247,940 29,078 90,923 897 23,033 - 735,861 Ending balance: individually evaluated for impairment $ - 1,630 16,303 2,736 - - - - - 20,669 Ending balance: collectively evaluated for impairment $ 65,438 237,692 22,927 245,204 29,078 90,923 897 23,033 - 715,192
Credit risk profile of each loan type based on internally assigned risk grade	March 31, 2018 (Dollars in thousands) Real Estate Loans Construction and Land Development Single- Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ 273 7,298 - - - 542 - 525 - 8,638 2- High Quality 20,125 119,589 - 35,003 518 19,667 - 3,427 2,320 200,649 3- Good Quality 51,400 90,160 14,788 205,753 25,635 64,485 933 4,717 9,594 467,465 4- Management Attention 4,495 19,595 14,925 17,177 1,825 4,199 162 609 791 63,778 5- Watch 5,476 4,346 3,136 3,282 1,130 292 - 21 - 17,683 6- Substandard 277 3,073 3,691 421 - 119 - 30 - 7,611 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 82,046 244,061 36,540 261,636 29,108 89,304 1,095 9,329 12,705 765,824 December 31, 2017 (Dollars in thousands) Real Estate Loans Construction and Land Development Single-Family Residential Single- Family Residential - Banco de la Gente Stated Income Commercial Multifamily and Farmland Commercial Farm Consumer All Other Total 1- Excellent Quality $ 152 8,590 - - - 446 - 791 - 9,979 2- High Quality 20,593 120,331 - 34,360 561 17,559 - 3,475 2,410 199,289 3- Good Quality 53,586 89,120 14,955 196,439 25,306 65,626 1,085 5,012 9,925 461,054 4- Management Attention 4,313 20,648 15,113 13,727 1,912 5,051 119 562 802 62,247 5- Watch 6,060 4,796 3,357 3,671 1,146 223 - 23 - 19,276 6- Substandard 283 3,218 3,824 440 12 117 - 25 - 7,919 7- Doubtful - - - - - - - - - - 8- Loss - - - - - - - - - - Total $ 84,987 246,703 37,249 248,637 28,937 89,022 1,204 9,888 13,137 759,764

4. Net Earnings Per Share (Tabl

4. Net Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Reconciliations of the amounts used in the computation of both basic earnings per common share and diluted earnings per common share	For the three months ended March 31, 2018 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 3,303 5,995,256 $ 0.55 Effect of dilutive securities: Restricted stock units - 17,000 Diluted earnings per share $ 3,303 6,012,256 $ 0.55 For the three months ended March 31, 2017 Net Earnings (Dollars in thousands) Weighted Average Number of Shares Per Share Amount Basic earnings per share $ 2,205 5,970,006 $ 0.37 Effect of dilutive securities: Restricted stock units - 92,140 Diluted earnings per share $ 2,205 6,062,146 $ 0.36

6. Fair Value (Tables)

6. Fair Value (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Available for sale securities measured at fair value on a recurring basis	(Dollars in thousands) March 31, 2018 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 49,568 - 49,568 - U.S. Government sponsored enterprises $ 37,841 - 37,841 - State and political subdivisions $ 124,141 - 124,141 - Corporate bonds $ 1,499 - 1,499 - Trust preferred securities $ 250 - - 250 (Dollars in thousands) December 31, 2017 Fair Value Measurements Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage-backed securities $ 53,609 - 53,609 - U.S. Government sponsored enterprises $ 40,380 - 40,380 - State and political subdivisions $ 133,570 - 133,570 - Corporate bonds $ 1,512 - 1,512 - Trust preferred securities $ 250 - - 250
Fair value measurements of investment securities available for sale using Level 3 significant unobservable inputs	(Dollars in thousands) Investment Securities Available for Sale Level 3 Valuation Balance, beginning of period $ 250 Change in book value - Change in gain/(loss) realized and unrealized - Purchases/(sales and calls) - Transfers in and/or (out) of Level 3 - Balance, end of period $ 250 Change in unrealized gain/(loss) for assets still held in Level 3 $ -
Fair value measurements for mortgage loans held for sale, impaired loans and other real estate on a non-recurring basis	(Dollars in thousands) Fair Value Measurements March 31, 2018 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 503 - - 503 Impaired loans $ 24,982 - - 24,982 Other real estate $ 62 - - 62 (Dollars in thousands) Fair Value Measurements December 31, 2017 Level 1 Valuation Level 2 Valuation Level 3 Valuation Mortgage loans held for sale $ 857 - - 857 Impaired loans $ 23,442 - - 23,442 Other real estate $ 118 - - 118 (Dollars in thousands) Fair Value March 31, 2018 Fair Value December 31, 2017 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Mortgage loans held for sale $ 503 857 Rate lock commitment N/A N/A Impaired loans $ 24,982 23,442 Appraised value and discounted cash flows Discounts to reflect current market conditions and ultimate collectability 0 - 25% Other real estate $ 62 118 Appraised value Discounts to reflect current market conditions and estimated costs to sell 0 - 25%
Carrying amount and estimated fair value of the Company's financial instruments	(Dollars in thousands) Fair Value Measurements at March 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 67,834 67,834 - - 67,834 Investment securities available for sale $ 213,299 - 213,049 250 213,299 Other investments $ 1,834 - - 1,834 1,834 Mortgage loans held for sale $ 503 - - 503 503 Loans, net $ 759,451 - - 738,009 738,009 Cash surrender value of life insurance $ 15,647 - 15,647 - 15,647 Liabilities: Deposits $ 907,624 - - 891,109 891,109 Securities sold under agreements to repurchase $ 38,257 - 38,257 - 38,257 Junior subordinated debentures $ 20,619 - 20,619 - 20,619 (Dollars in thousands) Fair Value Measurements at December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 53,186 53,186 - - 53,186 Investment securities available for sale $ 229,321 - 229,071 250 229,321 Other investments $ 1,830 - - 1,830 1,830 Mortgage loans held for sale $ 857 - - 857 857 Loans, net $ 753,398 - - 735,837 735,837 Cash surrender value of life insurance $ 15,552 - 15,552 - 15,552 Liabilities: Deposits $ 906,952 - - 894,932 894,932 Securities sold under agreements to repurchase $ 37,757 - 37,757 - 37,757 Junior subordinated debentures $ 20,619 - 20,619 - 20,619

2. Investment Securities (Detai

2. Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Investment securities available for sale
Amortized Cost	$ 211,246
Estimated Fair Value	213,299	$ 229,321
Mortgage-backed securities
Investment securities available for sale
Amortized Cost	49,731	53,124
Gross Unrealized Gains	559	814
Gross Unrealized Losses	722	329
Estimated Fair Value	49,568	53,609
U.S. Government sponsored enterprises
Investment securities available for sale
Amortized Cost	38,466	40,504
Gross Unrealized Gains	24	140
Gross Unrealized Losses	649	264
Estimated Fair Value	37,841	40,380
State and political subdivisions
Investment securities available for sale
Amortized Cost	121,299	129,276
Gross Unrealized Gains	2,994	4,310
Gross Unrealized Losses	152	16
Estimated Fair Value	124,141	133,570
Corporate bonds
Investment securities available for sale
Amortized Cost	1,500	1,500
Gross Unrealized Gains	0	12
Gross Unrealized Losses	1	0
Estimated Fair Value	1,499	1,512
Trust preferred securities
Investment securities available for sale
Amortized Cost	250	250
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	250	250
Total
Investment securities available for sale
Amortized Cost	211,246	224,654
Gross Unrealized Gains	3,577	5,276
Gross Unrealized Losses	1,524	609
Estimated Fair Value	$ 213,299	$ 229,321

2. Investment securities, Conti

2. Investment securities, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Investment securities with continuous unrealized loss position
Less than 12 Months, Fair Value	$ 47,799	$ 22,160
Less than 12 Months, Unrealized Losses	790	175
12 Months or More, Fair Value	21,323	22,827
12 Months or More, Unrealized Losses	734	434
Total, Fair Value	69,122	44,987
Total, Unrealized Losses	1,524	609
Mortgage-backed securities
Investment securities with continuous unrealized loss position
Less than 12 Months, Fair Value	13,062	8,701
Less than 12 Months, Unrealized Losses	219	75
12 Months or More, Fair Value	10,693	11,259
12 Months or More, Unrealized Losses	503	254
Total, Fair Value	23,755	19,960
Total, Unrealized Losses	722	329
U.S. Government sponsored enterprises
Investment securities with continuous unrealized loss position
Less than 12 Months, Fair Value	26,715	12,661
Less than 12 Months, Unrealized Losses	448	98
12 Months or More, Fair Value	9,665	10,067
12 Months or More, Unrealized Losses	201	166
Total, Fair Value	36,380	22,728
Total, Unrealized Losses	649	264
State and political subdivisions
Investment securities with continuous unrealized loss position
Less than 12 Months, Fair Value	7,023	798
Less than 12 Months, Unrealized Losses	122	2
12 Months or More, Fair Value	965	1,501
12 Months or More, Unrealized Losses	30	14
Total, Fair Value	7,988	2,299
Total, Unrealized Losses	152	$ 16
Corporate bonds
Investment securities with continuous unrealized loss position
Less than 12 Months, Fair Value	999
Less than 12 Months, Unrealized Losses	1
12 Months or More, Fair Value	0
12 Months or More, Unrealized Losses	0
Total, Fair Value	999
Total, Unrealized Losses	$ 1

2. Investment securities, Contr

2. Investment securities, Contractual Maturity (Details) $ in Thousands	Mar. 31, 2018USD ($)
Amortized Cost
Due within one year	$ 12,931
Due from one to five years	101,101
Due from five to ten years	38,976
Due after ten years	8,257
Mortgage-backed securities	49,731
Trust preferred securities	250
Total	211,246
Estimated Fair Value
Due within one year	13,039
Due from one to five years	103,219
Due from five to ten years	38,938
Due after ten years	8,285
Mortgage-backed securities	49,568
Trust preferred securities	250
Total	$ 213,299

2. Investment Securities (Det22

2. Investment Securities (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Pledged to secure public deposits	$ 99,200	$ 105,600

3. Loans (Details)

3. Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Major classifications
Total loans	$ 765,824	$ 759,764	$ 735,861
Less allowance for loan losses	6,373	6,366	7,263	$ 7,550
Total net loans	759,451	753,398
Construction and land development
Major classifications
Total loans	82,046	84,987	65,438
Less allowance for loan losses	651	804	969	1,152
Single-family residential
Major classifications
Total loans	244,061	246,703	239,322
Less allowance for loan losses	1,640	1,812	2,003	2,126
Single-family residential - Banco de la Gente stated income
Major classifications
Total loans	36,540	37,249	39,230
Less allowance for loan losses	1,265	1,280	1,328	1,377
Commercial
Major classifications
Total loans	261,636	248,637	247,940
Less allowance for loan losses	1,298	1,193	1,655	1,593
Multifamily and Farmland
Major classifications
Total loans	29,108	28,937	29,078
Less allowance for loan losses	73	72	73	52
Total real estate loans
Major classifications
Total loans	653,391	646,513
Commercial loans (not secured by real estate)
Major classifications
Total loans	89,304	89,022	90,923
Less allowance for loan losses	706	574	628	675
Farm loans (not secured by real estate)
Major classifications
Total loans	1,095	1,204	897
Less allowance for loan losses	0	0	$ 0	$ 0
Consumer loans (not secured by real estate)
Major classifications
Total loans	9,329	9,888
All other loans (not secured by real estate)
Major classifications
Total loans	$ 12,705	$ 13,137

3. Loans, Past Due (Details)

3. Loans, Past Due (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Past due loans
Loans 30-89 Days Past Due	$ 7,698	$ 8,350
Loans 90 or More Days Past Due	369	775
Total Past Due Loans	8,067	9,125
Total Current Loans	757,757	750,639
Total loans	765,824	759,764	$ 735,861
Accruing Loans 90 or More Days Past Due	0	0
Construction and land development
Past due loans
Loans 30-89 Days Past Due	156	277
Loans 90 or More Days Past Due	117	0
Total Past Due Loans	273	277
Total Current Loans	81,773	84,710
Total loans	82,046	84,987
Accruing Loans 90 or More Days Past Due	0	0
Single-family residential
Past due loans
Loans 30-89 Days Past Due	2,775	3,241
Loans 90 or More Days Past Due	96	193
Total Past Due Loans	2,871	3,434
Total Current Loans	241,190	243,269
Total loans	244,061	246,703
Accruing Loans 90 or More Days Past Due	0	0
Single-family residential - Banco de la Gente stated income
Past due loans
Loans 30-89 Days Past Due	4,196	4,078
Loans 90 or More Days Past Due	54	465
Total Past Due Loans	4,250	4,543
Total Current Loans	32,290	32,706
Total loans	36,540	37,249
Accruing Loans 90 or More Days Past Due	0	0
Commercial
Past due loans
Loans 30-89 Days Past Due	427	588
Loans 90 or More Days Past Due	0	0
Total Past Due Loans	427	588
Total Current Loans	261,209	248,049
Total loans	261,636	248,637
Accruing Loans 90 or More Days Past Due	0	0
Multifamily and Farmland
Past due loans
Loans 30-89 Days Past Due	0	0
Loans 90 or More Days Past Due	0	12
Total Past Due Loans	0	12
Total Current Loans	29,108	28,925
Total loans	29,108	28,937
Accruing Loans 90 or More Days Past Due	0	0
Total real estate loans
Past due loans
Loans 30-89 Days Past Due	7,554	8,184
Loans 90 or More Days Past Due	267	670
Total Past Due Loans	7,821	8,854
Total Current Loans	645,570	637,659
Total loans	653,391	646,513
Accruing Loans 90 or More Days Past Due	0	0
Commercial loans (not secured by real estate)
Past due loans
Loans 30-89 Days Past Due	59	53
Loans 90 or More Days Past Due	97	100
Total Past Due Loans	156	153
Total Current Loans	89,148	88,869
Total loans	89,304	89,022
Accruing Loans 90 or More Days Past Due	0	0
Farm loans (not secured by real estate)
Past due loans
Loans 30-89 Days Past Due	0	0
Loans 90 or More Days Past Due	0	0
Total Past Due Loans	0	0
Total Current Loans	1,095	1,204
Total loans	1,095	1,204
Accruing Loans 90 or More Days Past Due	0	0
Consumer loans (not secured by real estate)
Past due loans
Loans 30-89 Days Past Due	85	113
Loans 90 or More Days Past Due	5	5
Total Past Due Loans	90	118
Total Current Loans	9,239	9,770
Total loans	9,329	9,888
Accruing Loans 90 or More Days Past Due	0	0
All other loans (not secured by real estate)
Past due loans
Loans 30-89 Days Past Due	0	0
Loans 90 or More Days Past Due	0	0
Total Past Due Loans	0	0
Total Current Loans	12,705	13,137
Total loans	12,705	13,137
Accruing Loans 90 or More Days Past Due	$ 0	$ 0

3. Loans, Nonaccrual (Details)

3. Loans, Nonaccrual (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Non-accrual loans
Non-accrual loans	$ 3,665	$ 3,711
Construction and land development
Non-accrual loans
Non-accrual loans	130	14
Single-family residential
Non-accrual loans
Non-accrual loans	1,535	1,634
Single-family residential - Banco de la Gente stated income
Non-accrual loans
Non-accrual loans	1,508	1,543
Commercial
Non-accrual loans
Non-accrual loans	378	396
Multifamily and Farmland
Non-accrual loans
Non-accrual loans	0	12
Total real estate loans
Non-accrual loans
Non-accrual loans	3,551	3,599
Commercial loans (not secured by real estate)
Non-accrual loans
Non-accrual loans	97	100
Consumer loans (not secured by real estate)
Non-accrual loans
Non-accrual loans	$ 17	$ 12

3. Loans, Impaired (Details)

3. Loans, Impaired (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Impaired loans
Unpaid Contractual Principal Balance	$ 25,338		$ 26,129
Recorded Investment With No Allowance	1,698		2,042
Recorded Investment With Allowance	24,441		22,599
Recorded Investment in Impaired Loans	26,139		24,641
Related Allowance	1,157		1,199
Average Outstanding Impaired Loans	24,244		26,015
Interest Income Recognized	351	$ 372	1,362
Construction and land development
Impaired loans
Unpaid Contractual Principal Balance	397		282
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	265		277
Recorded Investment in Impaired Loans	265		277
Related Allowance	9		6
Average Outstanding Impaired Loans	333		253
Interest Income Recognized	6		17
Single-family residential
Impaired loans
Unpaid Contractual Principal Balance	5,080		5,226
Recorded Investment With No Allowance	1,124		1,135
Recorded Investment With Allowance	3,486		3,686
Recorded Investment in Impaired Loans	4,610		4,821
Related Allowance	37		41
Average Outstanding Impaired Loans	6,258		5,113
Interest Income Recognized	68		265
Single-family residential - Banco de la Gente stated income
Impaired loans
Unpaid Contractual Principal Balance	17,027		17,360
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	17,639		16,805
Recorded Investment in Impaired Loans	17,639		16,805
Related Allowance	1,096		1,149
Average Outstanding Impaired Loans	15,099		16,867
Interest Income Recognized	238		920
Commercial
Impaired loans
Unpaid Contractual Principal Balance	2,420		2,761
Recorded Investment With No Allowance	477		807
Recorded Investment With Allowance	2,873		1,661
Recorded Investment in Impaired Loans	3,350		2,468
Related Allowance	13		1
Average Outstanding Impaired Loans	2,294		3,411
Interest Income Recognized	37		148
Multifamily and Farmland
Impaired loans
Unpaid Contractual Principal Balance	0		78
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	78		12
Recorded Investment in Impaired Loans	78		12
Related Allowance	0		0
Average Outstanding Impaired Loans	6		28
Interest Income Recognized	0		0
Total real estate loans
Impaired loans
Unpaid Contractual Principal Balance	24,924		25,707
Recorded Investment With No Allowance	1,601		1,942
Recorded Investment With Allowance	24,341		22,441
Recorded Investment in Impaired Loans	25,942		24,383
Related Allowance	1,155		1,197
Average Outstanding Impaired Loans	23,990		25,672
Interest Income Recognized	349		1,350
Commercial loans (not secured by real estate)
Impaired loans
Unpaid Contractual Principal Balance	260		264
Recorded Investment With No Allowance	97		100
Recorded Investment With Allowance	(92)		4
Recorded Investment in Impaired Loans	5		104
Related Allowance	0		0
Average Outstanding Impaired Loans	102		149
Interest Income Recognized	0		3
Consumer loans (not secured by real estate)
Impaired loans
Unpaid Contractual Principal Balance	154		158
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	192		154
Recorded Investment in Impaired Loans	192		154
Related Allowance	2		2
Average Outstanding Impaired Loans	152		194
Interest Income Recognized	$ 2		$ 9

3. Loans, Allowance for Loan Lo

3. Loans, Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Allowance for loan losses
Beginning balance	$ 6,366	$ 7,550
Charge-offs	(106)	(131)
Recoveries	82	80
Provision	31	(236)
Ending balance	6,373	7,263
Ending balance: individually evaluated for impairments	1,091	1,182
Ending balance: collectively evaluated for impairments	5,282	6,081
Ending balance	6,373	7,263
Loans
Ending balance	765,824	735,861
Ending balance: individually evaluated for impairment	19,130	20,669
Ending balance: collectively evaluated for impairment	746,694	715,192
Construction and land development
Allowance for loan losses
Beginning balance	804	1,152
Charge-offs	0	0
Recoveries	1	8
Provision	(154)	(191)
Ending balance	651	969
Ending balance: individually evaluated for impairments	0	0
Ending balance: collectively evaluated for impairments	651	969
Ending balance	651	969
Loans
Ending balance	82,046	65,438
Ending balance: individually evaluated for impairment	96	0
Ending balance: collectively evaluated for impairment	81,950	65,438
Single-family residential
Allowance for loan losses
Beginning balance	1,812	2,126
Charge-offs	0	(20)
Recoveries	5	7
Provision	(177)	(110)
Ending balance	1,640	2,003
Ending balance: individually evaluated for impairments	0	0
Ending balance: collectively evaluated for impairments	1,640	2,003
Ending balance	1,640	2,003
Loans
Ending balance	244,061	239,322
Ending balance: individually evaluated for impairment	1,832	1,630
Ending balance: collectively evaluated for impairment	242,229	237,692
Single-family residential - Banco de la Gente stated income
Allowance for loan losses
Beginning balance	1,280	1,377
Charge-offs	0	0
Recoveries	0	0
Provision	(15)	(49)
Ending balance	1,265	1,328
Ending balance: individually evaluated for impairments	1,079	1,120
Ending balance: collectively evaluated for impairments	186	208
Ending balance	1,265	1,328
Loans
Ending balance	36,540	39,230
Ending balance: individually evaluated for impairment	15,190	16,303
Ending balance: collectively evaluated for impairment	21,350	22,927
Commercial
Allowance for loan losses
Beginning balance	1,193	1,593
Charge-offs	0	0
Recoveries	4	7
Provision	101	55
Ending balance	1,298	1,655
Ending balance: individually evaluated for impairments	12	62
Ending balance: collectively evaluated for impairments	1,286	1,593
Ending balance	1,298	1,655
Loans
Ending balance	261,636	247,940
Ending balance: individually evaluated for impairment	1,915	2,736
Ending balance: collectively evaluated for impairment	259,721	245,204
Multifamily and Farmland
Allowance for loan losses
Beginning balance	72	52
Charge-offs	(5)	0
Recoveries	1	0
Provision	5	21
Ending balance	73	73
Ending balance: individually evaluated for impairments	0	0
Ending balance: collectively evaluated for impairments	73	73
Ending balance	73	73
Loans
Ending balance	29,108	29,078
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	29,108	29,078
Commercial loans (not secured by real estate)
Allowance for loan losses
Beginning balance	574	675
Charge-offs	0	(2)
Recoveries	8	8
Provision	124	(53)
Ending balance	706	628
Ending balance: individually evaluated for impairments	0	0
Ending balance: collectively evaluated for impairments	706	628
Ending balance	706	628
Loans
Ending balance	89,304	90,923
Ending balance: individually evaluated for impairment	97	0
Ending balance: collectively evaluated for impairment	89,207	90,923
Farm loans (not secured by real estate)
Allowance for loan losses
Beginning balance	0	0
Charge-offs	0	0
Recoveries	0	0
Provision	0	0
Ending balance	0	0
Ending balance: individually evaluated for impairments	0	0
Ending balance: collectively evaluated for impairments	0	0
Ending balance	0	0
Loans
Ending balance	1,095	897
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	1,095	897
Consumer And All Other Loans
Allowance for loan losses
Beginning balance	155	204
Charge-offs	(101)	(109)
Recoveries	63	50
Provision	19	33
Ending balance	136	178
Ending balance: individually evaluated for impairments	0	0
Ending balance: collectively evaluated for impairments	136	178
Ending balance	136	178
Loans
Ending balance	22,034	23,033
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	22,034	23,033
Unallocated
Allowance for loan losses
Beginning balance	476	371
Charge-offs	0	0
Recoveries	0	0
Provision	128	58
Ending balance	604	429
Ending balance: individually evaluated for impairments	0	0
Ending balance: collectively evaluated for impairments	604	429
Ending balance	604	429
Loans
Ending balance		0
Ending balance: individually evaluated for impairment	0	0
Ending balance: collectively evaluated for impairment	$ 0	$ 0

3. Loans, Credit Risk (Details)

3. Loans, Credit Risk (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Credit risk profile
Total Loans	$ 765,824	$ 759,764	$ 735,861
Excellent Quality
Credit risk profile
Total Loans	8,638	9,979
High Quality
Credit risk profile
Total Loans	200,649	199,289
Good Quality
Credit risk profile
Total Loans	467,465	461,054
Management Attention
Credit risk profile
Total Loans	63,778	62,247
Watch
Credit risk profile
Total Loans	17,683	19,276
Substandard
Credit risk profile
Total Loans	7,611	7,919
Doubtful
Credit risk profile
Total Loans	0	0
Loss
Credit risk profile
Total Loans	0	0
Construction and land development
Credit risk profile
Total Loans	82,046	84,987
Single-family residential
Credit risk profile
Total Loans	244,061	246,703
Single-family residential - Banco de la Gente stated income
Credit risk profile
Total Loans	36,540	37,249
Commercial
Credit risk profile
Total Loans	261,636	248,637
Multifamily and Farmland
Credit risk profile
Total Loans	29,108	28,937
Commercial loans (not secured by real estate)
Credit risk profile
Total Loans	89,304	89,022
Farm loans (not secured by real estate)
Credit risk profile
Total Loans	1,095	1,204
Consumer loans (not secured by real estate)
Credit risk profile
Total Loans	9,329	9,888
All other loans (not secured by real estate)
Credit risk profile
Total Loans	12,705	13,137
Construction and land development
Credit risk profile
Total Loans	82,046	84,987	65,438
Construction and land development | Excellent Quality
Credit risk profile
Total Loans	273	152
Construction and land development | High Quality
Credit risk profile
Total Loans	20,125	20,593
Construction and land development | Good Quality
Credit risk profile
Total Loans	51,400	53,586
Construction and land development | Management Attention
Credit risk profile
Total Loans	4,495	4,313
Construction and land development | Watch
Credit risk profile
Total Loans	5,476	6,060
Construction and land development | Substandard
Credit risk profile
Total Loans	277	283
Construction and land development | Doubtful
Credit risk profile
Total Loans	0	0
Construction and land development | Loss
Credit risk profile
Total Loans	0	0
Single-family residential
Credit risk profile
Total Loans	244,061	246,703	239,322
Single-family residential | Excellent Quality
Credit risk profile
Total Loans	7,298	8,590
Single-family residential | High Quality
Credit risk profile
Total Loans	119,589	120,331
Single-family residential | Good Quality
Credit risk profile
Total Loans	90,160	89,120
Single-family residential | Management Attention
Credit risk profile
Total Loans	19,595	20,648
Single-family residential | Watch
Credit risk profile
Total Loans	4,346	4,796
Single-family residential | Substandard
Credit risk profile
Total Loans	3,073	3,218
Single-family residential | Doubtful
Credit risk profile
Total Loans	0	0
Single-family residential | Loss
Credit risk profile
Total Loans	0	0
Single-family residential - Banco de la Gente stated income
Credit risk profile
Total Loans	36,540	37,249	39,230
Single-family residential - Banco de la Gente stated income | Excellent Quality
Credit risk profile
Total Loans	0	0
Single-family residential - Banco de la Gente stated income | High Quality
Credit risk profile
Total Loans	0	0
Single-family residential - Banco de la Gente stated income | Good Quality
Credit risk profile
Total Loans	14,788	14,955
Single-family residential - Banco de la Gente stated income | Management Attention
Credit risk profile
Total Loans	14,925	15,113
Single-family residential - Banco de la Gente stated income | Watch
Credit risk profile
Total Loans	3,136	3,357
Single-family residential - Banco de la Gente stated income | Substandard
Credit risk profile
Total Loans	3,691	3,824
Single-family residential - Banco de la Gente stated income | Doubtful
Credit risk profile
Total Loans	0	0
Single-family residential - Banco de la Gente stated income | Loss
Credit risk profile
Total Loans	0	0
Commercial
Credit risk profile
Total Loans	261,636	248,637	247,940
Commercial | Excellent Quality
Credit risk profile
Total Loans	0	0
Commercial | High Quality
Credit risk profile
Total Loans	35,003	34,360
Commercial | Good Quality
Credit risk profile
Total Loans	205,753	196,439
Commercial | Management Attention
Credit risk profile
Total Loans	17,177	13,727
Commercial | Watch
Credit risk profile
Total Loans	3,282	3,671
Commercial | Substandard
Credit risk profile
Total Loans	421	440
Commercial | Doubtful
Credit risk profile
Total Loans	0	0
Commercial | Loss
Credit risk profile
Total Loans	0	0
Multifamily and Farmland
Credit risk profile
Total Loans	29,108	28,937	29,078
Multifamily and Farmland | Excellent Quality
Credit risk profile
Total Loans	0	0
Multifamily and Farmland | High Quality
Credit risk profile
Total Loans	518	561
Multifamily and Farmland | Good Quality
Credit risk profile
Total Loans	25,635	25,306
Multifamily and Farmland | Management Attention
Credit risk profile
Total Loans	1,825	1,912
Multifamily and Farmland | Watch
Credit risk profile
Total Loans	1,130	1,146
Multifamily and Farmland | Substandard
Credit risk profile
Total Loans	0	12
Multifamily and Farmland | Doubtful
Credit risk profile
Total Loans	0	0
Multifamily and Farmland | Loss
Credit risk profile
Total Loans	0	0
Commercial loans (not secured by real estate)
Credit risk profile
Total Loans	89,304	89,022	90,923
Commercial loans (not secured by real estate) | Excellent Quality
Credit risk profile
Total Loans	542	446
Commercial loans (not secured by real estate) | High Quality
Credit risk profile
Total Loans	19,667	17,559
Commercial loans (not secured by real estate) | Good Quality
Credit risk profile
Total Loans	64,485	65,626
Commercial loans (not secured by real estate) | Management Attention
Credit risk profile
Total Loans	4,199	5,051
Commercial loans (not secured by real estate) | Watch
Credit risk profile
Total Loans	292	223
Commercial loans (not secured by real estate) | Substandard
Credit risk profile
Total Loans	119	117
Commercial loans (not secured by real estate) | Doubtful
Credit risk profile
Total Loans	0	0
Commercial loans (not secured by real estate) | Loss
Credit risk profile
Total Loans	0	0
Farm loans (not secured by real estate)
Credit risk profile
Total Loans	1,095	1,204	$ 897
Farm loans (not secured by real estate) | Excellent Quality
Credit risk profile
Total Loans	0	0
Farm loans (not secured by real estate) | High Quality
Credit risk profile
Total Loans	0	0
Farm loans (not secured by real estate) | Good Quality
Credit risk profile
Total Loans	933	1,085
Farm loans (not secured by real estate) | Management Attention
Credit risk profile
Total Loans	162	119
Farm loans (not secured by real estate) | Watch
Credit risk profile
Total Loans	0	0
Farm loans (not secured by real estate) | Substandard
Credit risk profile
Total Loans	0	0
Farm loans (not secured by real estate) | Doubtful
Credit risk profile
Total Loans	0	0
Farm loans (not secured by real estate) | Loss
Credit risk profile
Total Loans	0	0
Consumer loans (not secured by real estate)
Credit risk profile
Total Loans	9,329	9,888
Consumer loans (not secured by real estate) | Excellent Quality
Credit risk profile
Total Loans	525	791
Consumer loans (not secured by real estate) | High Quality
Credit risk profile
Total Loans	3,427	3,475
Consumer loans (not secured by real estate) | Good Quality
Credit risk profile
Total Loans	4,717	5,012
Consumer loans (not secured by real estate) | Management Attention
Credit risk profile
Total Loans	609	562
Consumer loans (not secured by real estate) | Watch
Credit risk profile
Total Loans	21	23
Consumer loans (not secured by real estate) | Substandard
Credit risk profile
Total Loans	30	25
Consumer loans (not secured by real estate) | Doubtful
Credit risk profile
Total Loans	0	0
Consumer loans (not secured by real estate) | Loss
Credit risk profile
Total Loans	0	0
All other loans (not secured by real estate)
Credit risk profile
Total Loans	12,705	13,137
All other loans (not secured by real estate) | Excellent Quality
Credit risk profile
Total Loans	0	0
All other loans (not secured by real estate) | High Quality
Credit risk profile
Total Loans	2,320	2,410
All other loans (not secured by real estate) | Good Quality
Credit risk profile
Total Loans	9,594	9,925
All other loans (not secured by real estate) | Management Attention
Credit risk profile
Total Loans	791	802
All other loans (not secured by real estate) | Watch
Credit risk profile
Total Loans	0	0
All other loans (not secured by real estate) | Substandard
Credit risk profile
Total Loans	0	0
All other loans (not secured by real estate) | Doubtful
Credit risk profile
Total Loans	0	0
All other loans (not secured by real estate) | Loss
Credit risk profile
Total Loans	$ 0	$ 0

3. Loans (Details Narrative)

3. Loans (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Receivables [Abstract]
Percentage of construction and land development loans in Bank's loan portfolio	11.00%
Percentage of single-family residential loans in Bank's loan portfolio	37.00%
Percentage of Single-family residential - Banco de la Gente stated income loans in Bank's loan portfolio	5.00%
Percentage of commercial real estate loans in Bank's loan portfolio	34.00%
Percentage of commercial loans in Bank's loan portfolio	12.00%
Accruing impaired loans	$ 23,800	$ 26,100	$ 24,600
Interest income recognized on accruing impaired loans	351	372	$ 1,362
Provision for loan losses	$ (31)	$ 236

4. Net Earnings Per Share (Deta

4. Net Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Earnings
Basic earnings per share	$ 3,303	$ 2,205
Effect of dilutive securities: Restricted stock units	0	0
Diluted earnings per share	$ 3,303	$ 2,205
Weighted Average Number of Shares
Basic earnings per share (in shares)	5,995,256	5,970,006
Effect of dilutive securities: Restricted stock units (in shares)	17,000	92,140
Diluted earnings per share (in shares)	6,012,256	6,062,146
Per Share Amount
Basic earnings per share	$ 0.55	$ 0.37
Diluted earnings per share	$ 0.55	$ 0.36

5. Stock-Based Compensation (De

5. Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unrecognized compensation cost	$ 377
Recognized compensation expense	$ 57	$ 430

6. Fair Value, Level of Hierarc

6. Fair Value, Level of Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Estimated Fair Value	$ 213,299	$ 229,321
Level 1
Estimated Fair Value	0	0
Level 2
Estimated Fair Value	213,049	229,071
Level 3
Estimated Fair Value	250	250
Mortgage-backed securities
Estimated Fair Value	49,568	53,609
Mortgage-backed securities | Level 1
Estimated Fair Value	0	0
Mortgage-backed securities | Level 2
Estimated Fair Value	49,568	53,609
Mortgage-backed securities | Level 3
Estimated Fair Value	0	0
U.S. Government sponsored enterprises
Estimated Fair Value	37,841	40,380
U.S. Government sponsored enterprises | Level 1
Estimated Fair Value	0	0
U.S. Government sponsored enterprises | Level 2
Estimated Fair Value	37,841	40,380
U.S. Government sponsored enterprises | Level 3
Estimated Fair Value	0	0
State and political subdivisions
Estimated Fair Value	124,141	133,570
State and political subdivisions | Level 1
Estimated Fair Value	0	0
State and political subdivisions | Level 2
Estimated Fair Value	124,141	133,570
State and political subdivisions | Level 3
Estimated Fair Value	0	0
Corporate bonds
Estimated Fair Value	1,499	1,512
Corporate bonds | Level 1
Estimated Fair Value	0	0
Corporate bonds | Level 2
Estimated Fair Value	1,499	1,512
Corporate bonds | Level 3
Estimated Fair Value	0	0
Trust preferred securities
Estimated Fair Value	250	250
Trust preferred securities | Level 1
Estimated Fair Value	0	0
Trust preferred securities | Level 2
Estimated Fair Value	0	0
Trust preferred securities | Level 3
Estimated Fair Value	$ 250	$ 250

6. Fair Value, Level 3 Valuatio

6. Fair Value, Level 3 Valuation (Details) - Level 3 $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Investment Securities Available for Sale Level 3 Valuation
Balance, beginning of period	$ 250
Change in book value	0
Change in gain/(loss) realized and unrealized	0
Purchases/(sales and calls)	0
Transfers in and/or (out) of Level 3	0
Balance, end of period	250
Change in unrealized gain/(loss) for assets still held in Level 3	$ 0

6. Fair Value, Loans Impaired (

6. Fair Value, Loans Impaired (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Mortgage loans held for sale	$ 503	$ 857
Impaired loans	24,982	23,442
Other real estate	$ 62	118
Mortgage loans held for sale [Member]
Valuation Technique	Rate lock commitment
Significant Unobservable Inputs	N/A
General Range of Significant Unobservable Input Values	N/A
Impaired loans [Member]
Valuation Technique	Appraised value and discounted cash flows
Significant Unobservable Inputs	Discounts to reflect current market conditions and ultimate collectability
Other real estate [Member]
Valuation Technique	Appraised value
Significant Unobservable Inputs	Discounts to reflect current market conditions and estimated costs to sell
Level 1
Mortgage loans held for sale	$ 0	0
Impaired loans	0	0
Other real estate	0	0
Level 2
Mortgage loans held for sale	0	0
Impaired loans	0	0
Other real estate	0	0
Level 3
Mortgage loans held for sale	503	857
Impaired loans	24,982	23,442
Other real estate	$ 62	$ 118

6. Fair Value, Financial Instru

6. Fair Value, Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 67,834	$ 53,186
Investment securities available for sale	213,299	229,321
Other investments	1,834	1,830
Mortgage loans held for sale	503	857
Loans, net	759,451	753,398
Cash surrender value of life insurance	15,647	15,552
Liabilities:
Deposits	907,624	906,952
Securities sold under agreements to repurchase	38,257	37,757
Junior subordinated debentures	20,619	20,619
Estimated Fair Value
Assets:
Cash and cash equivalents	67,834	53,186
Investment securities available for sale	213,299	229,321
Other investments	1,834	1,830
Mortgage loans held for sale	503	857
Loans, net	738,009	735,837
Cash surrender value of life insurance	15,647	15,552
Liabilities:
Deposits	891,109	894,932
Securities sold under agreements to repurchase	38,257	37,757
Junior subordinated debentures	20,619	20,619
Level 1
Assets:
Cash and cash equivalents	67,834	53,186
Investment securities available for sale	0	0
Other investments	0	0
Mortgage loans held for sale	0	0
Loans, net	0	0
Cash surrender value of life insurance	0	0
Liabilities:
Deposits	0	0
Securities sold under agreements to repurchase	0	0
Junior subordinated debentures	0	0
Level 2
Assets:
Cash and cash equivalents	0	0
Investment securities available for sale	213,049	229,071
Other investments	0	0
Mortgage loans held for sale	0	0
Loans, net	0	0
Cash surrender value of life insurance	15,647	15,552
Liabilities:
Deposits	0	0
Securities sold under agreements to repurchase	38,257	37,757
Junior subordinated debentures	20,619	20,619
Level 3
Assets:
Cash and cash equivalents	0	0
Investment securities available for sale	250	250
Other investments	1,834	1,830
Mortgage loans held for sale	503	857
Loans, net	738,009	735,837
Cash surrender value of life insurance	0	0
Liabilities:
Deposits	891,109	894,932
Securities sold under agreements to repurchase	0	0
Junior subordinated debentures	$ 0	$ 0