American River Bancshares (AMRB) 10-K 26 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Feb. 25, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	AMERICAN RIVER BANKSHARES
Entity Central Index Key	1,108,236
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	Yes
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 64,919,000
Entity Common Stock, Shares Outstanding		6,994,300
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEET (Una

CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and due from banks	$ 23,727	$ 22,449
Interest-bearing deposits in banks	750	1,000
Investment securities (Note 5):
Available-for-sale, at fair value	273,819	289,064
Held-to-maturity, at amortized cost	623	862
Loans and leases, less allowance for loan and lease losses of $4,975 in 2015 and $5,301 in 2014 (Notes 6, 7, 12 and 17)	289,102	258,057
Premises and equipment, net (Note 8)	1,407	1,518
Federal Home Loan Bank of San Francisco stock	3,779	3,686
Other real estate owned, net	3,551	4,647
Goodwill (Note 4)	16,321	16,321
Bank-owned life insurance (Note 16)	14,483	14,167
Accrued interest receivable and other assets (Notes 11 and 16)	7,078	5,983
Total Assets	634,640	617,754
Deposits:
Noninterest-bearing	190,548	155,698
Interest-bearing (Note 9)	340,142	354,995
Total deposits	530,690	510,693
Short-term borrowings (Note 10)	3,500	3,500
Long-term borrowings (Note 10)	7,500	7,500
Accrued interest payable and other liabilities (Note 16)	6,875	6,414
Total liabilities	548,565	$ 528,107
Commitments and contingencies (Note 12)
Shareholders' equity (Notes 13 and 14):
Common stock - no par value; 20,000,000 shares authorized; issued and outstanding – 7,343,649 shares in 2015 and 8,089,615 shares in 2014	49,554	$ 57,126
Retained earnings	34,418	29,150
Accumulated other comprehensive income, net of taxes (Note 5)	2,103	3,371
Total shareholders' equity	86,075	89,647
Total liabilities and shareholders' euity	$ 634,640	$ 617,754

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Allowance for loan and lease losses (in dollars)	$ 4,975	$ 5,301
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	7,343,649	8,089,615
Common stock, shares outstanding	7,343,649	8,089,615

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest and fees on loans and leases:
Taxable	$ 13,547	$ 13,609	$ 14,191
Exempt from Federal income taxes	364	22	0
Interest on deposits in banks	5	4	3
Interest and dividends on investment securities:
Taxable	6,292	5,528	3,822
Exempt from Federal income taxes	760	802	865
Total interest income	20,968	19,965	18,881
Interest expense:
Interest on deposits (Note 9)	817	1,021	1,197
Interest on borrowings	144	147	293
Total interest expense	961	1,168	1,490
Net interest income	20,007	18,797	17,391
Provision for loan and lease losses (Note 7)	0	(541)	200
Net interest income after provision for loan and lease losses	20,007	19,338	17,191
Noninterest income:
Service charges	498	562	590
Gain on sale and call of investment securities (Note 5)	251	208	36
Income from other real estate owned properties	335	365	316
Other income (Note 15)	931	1,042	1,073
Total noninterest income	2,015	2,177	2,015
Noninterest expense:
Salaries and employee benefits (Notes 6 and 16)	8,528	8,776	8,516
Other real estate expense	322	364	936
Occupancy (Notes 8, 12 and 17)	1,183	1,188	1,212
Furniture and equipment (Notes 8 and 12)	690	724	758
Regulatory assessments	395	433	382
Other expense (Notes 4 and 15)	2,962	3,377	3,087
Total noninterest expense	14,080	14,862	14,891
Income before provision for income taxes	7,942	6,653	4,315
Provision for income taxes (Note 11)	2,674	2,292	1,258
Net income	$ 5,268	$ 4,361	$ 3,057
Basic earnings per share (Note 13)	$ 0.70	$ 0.54	$ 0.34
Diluted earnings per share (Note 13)	0.70	0.54	0.34
Cash dividends per share of issued and outstanding common stock	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPRENENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 5,268	$ 4,361	$ 3,057
Other comprehensive income (loss):
(Decrease) increase in net unrealized gains on investment securities	(1,863)	3,954	(5,234)
Deferred tax benefit (expense)	745	(1,581)	2,094
(Decrease) increase in net unrealized gains on investment securities, net of tax	(1,118)	2,373	(3,140)
Reclassification adjustment for realized gains included in net income	(251)	(208)	(36)
Tax effect	101	83	14
Realized gains, net of tax	(150)	(125)	(22)
Total other comprehensive (loss) income	(1,268)	2,248	(3,162)
Comprehensive income (loss)	$ 4,000	$ 6,609	$ (105)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Net of Taxes)	Total
Beginning Balance, Shares at Dec. 31, 2012	9,327,203
Beginning Balance, Amount at Dec. 31, 2012	$ 67,977	$ 21,732	$ 4,285	$ 93,994
Net income		$ 3,057		3,057
Other comprehensive income, net of tax:
Net change in unrealized gains on available-for-sale investment securities (Note 5)			$ (3,162)	(3,162)
Net restricted stock award activity and related compensation expense, Shares	11,448
Net restricted stock award activity and related compensation expense, Amount	$ 111			111
Retirement of common stock (Note 13), Shares	(849,404)
Retirement of common stock (Note 13), Amount	$ (7,000)			(7,000)
Stock option compensation expense	$ 20			20
Ending Balance, Shares at Dec. 31, 2013	8,489,247
Ending Balance, Amount at Dec. 31, 2013	$ 61,108	$ 24,789	$ 1,123
Net income		$ 4,361		4,361
Other comprehensive income, net of tax:
Net change in unrealized gains on available-for-sale investment securities (Note 5)			$ 2,248	2,248
Net restricted stock award activity and related compensation expense, Shares	24,830
Net restricted stock award activity and related compensation expense, Amount	$ 147			147
Retirement of common stock (Note 13), Shares	(424,462)
Retirement of common stock (Note 13), Amount	$ (4,148)			(4,148)
Stock option compensation expense	$ 19			19
Ending Balance, Shares at Dec. 31, 2014	8,089,615
Ending Balance, Amount at Dec. 31, 2014	$ 57,126	$ 29,150	$ 3,371	89,647
Net income		$ 5,268		5,268
Other comprehensive income, net of tax:
Net change in unrealized gains on available-for-sale investment securities (Note 5)			$ (1,268)	(1,268)
Net restricted stock award activity and related compensation expense, Shares	45,023
Net restricted stock award activity and related compensation expense, Amount	$ 236			236
Retirement of common stock (Note 13), Shares	(790,989)
Retirement of common stock (Note 13), Amount	$ (7,843)			(7,843)
Stock option compensation expense	$ 35			35
Ending Balance, Shares at Dec. 31, 2015	7,343,649
Ending Balance, Amount at Dec. 31, 2015	$ 49,554	$ 34,418	$ 2,103	$ 86,075

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,268	$ 4,361	$ 3,057
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	0	(541)	200
(Decrease) increase in deferred loan and lease origination fees, net	(66)	(26)	83
Depreciation and amortization	430	438	518
Amortization of investment security premiums and discounts, net	3,160	4,647	5,774
Gain on sale and call of investment securities	(251)	(208)	(36)
Increase in cash surrender value of life insurance policies	(316)	(284)	(247)
Gain on life insurance death benefit	0	(99)	(118)
Deferred income tax expense (benefit)	473	(74)	244
Stock-based compensation expense	271	166	131
Loss (gain) on sale or write-down of other real estate owned	70	(66)	116
(Increase) decrease in accrued interest receivable and other assets	(723)	298	1,821
Increase (decrease) in accrued interest payable and other liabilities	461	371	(96)
Net cash provided by operating activities	8,777	8,983	11,447
Cash flows from investing activities:
Proceeds from the sale of available-for-sale investment securities	23,764	23,804	8,851
Proceeds from called available-for-sale investment securities	0	1,160	590
Proceeds from matured available-for-sale investment securities	175	105	905
Purchases of available-for-sale investment securities	(62,958)	(83,049)	(119,972)
Proceeds from principal repayments for available-for-sale mortgage-backed securities	49,242	41,014	57,664
Proceeds from principal repayments for held-to-maturity mortgage-backed securities	239	324	934
Purchases of bank owned life insurance	0	(1,350)	0
Net decrease (increase) in interest-bearing deposits in banks	250	0	(250)
Net increase in loans and leases	(30,979)	(5,932)	(1,741)
Net proceeds from sale of other real estate owned	1,153	2,283	7,516
Death benefit from life insurance policy	0	252	419
Capitalized additions to other real estate	(127)	(54)	(186)
Purchases of equipment	(319)	(456)	(130)
Net (increase) decrease in FHLB stock	(93)	(438)	6
Net cash (used in) provided by investing activities	(19,653)	(22,337)	(45,394)
Cash flows from financing activities:
Net increase in demand, interest-bearing and savings deposits	23,114	31,545	10,185
Net decrease in time deposits	(3,117)	(4,542)	(4,751)
Cash paid to repurchase common stock	(7,843)	(4,148)	(7,000)
Decrease in long-term borrowings	0	(500)	(8,000)
(Decrease) increase in short-term borrowings	0	(4,500)	6,000
Net cash provided by (used in) financing activities	12,154	17,855	(3,566)
Increase (decrease) in cash and cash equivalents	1,278	4,501	(37,513)
Cash and cash equivalents at beginning of year	22,449	17,948	55,461
Cash and cash equivalents at end of year	23,727	22,449	17,948
Cash paid during the year for:
Interest expense	961	1,234	1,527
Income taxes	2,495	2,415	1,575
Non-cash investing activities:
Real estate acquired through foreclosure	$ 0	$ 189	$ 1,829

1. THE BUSINESS OF THE COMPANY

1. THE BUSINESS OF THE COMPANY	12 Months Ended
	Dec. 31, 2015
Nature Of Operations [Abstract]
THE BUSINESS OF THE COMPANY	American River Bankshares (the “Company”) was incorporated under the laws of the State of California in 1995 under the name of American River Holdings and changed its name in 2004 to American River Bankshares. As a bank holding company, the Company is authorized to engage in the activities permitted under the Bank Holding Company Act of 1956, as amended, and regulations thereunder. As a community oriented regional bank holding company, the principal communities served are located in Sacramento, Placer, Yolo, El Dorado, Amador, and Sonoma counties. In addition, the Company has loan production offices in San Jose and San Ramon, which serve Santa Clara, Alameda and Contra Costa counties. The Company owns 100% of the issued and outstanding common shares of its banking subsidiary, American River Bank (“ARB” or the “Bank”). ARB was incorporated in 1983. ARB accepts checking and savings deposits, offers money market deposit accounts and certificates of deposit, makes secured and unsecured commercial, secured real estate, and other installment and term loans and offers other customary banking services. ARB operates four full-service banking offices in Sacramento County, one full-service banking office in Placer County, two full-service banking offices in Sonoma County, and three full-service banking offices in Amador County. The Company also owns one inactive subsidiary, American River Financial. ARB does not offer trust services or international banking services and does not plan to do so in the near future. The deposits of ARB are insured by the Federal Deposit Insurance Corporation (the “FDIC”) up to applicable legal limits.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	General The accounting and reporting policies of the Company and its subsidiaries conform with accounting principles generally accepted in the United States of America and prevailing practices within the financial services industry. Reclassifications Certain reclassifications have been made to prior years’ balances to conform to classifications used in 2015. Reclassifications had no effect on prior year net income or shareholders’ equity. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and accounts among the Company and its subsidiaries have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash and Cash Equivalents For the purpose of the statement of cash flows, cash and due from banks and Federal funds sold are considered to be cash equivalents. Generally, Federal funds are sold for one-day periods. Interest-Bearing Deposits in Banks Interest-bearing deposits in banks mature within one year and are carried at cost. Investment Securities Investments are classified into the following categories: · Available-for-sale securities, reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of taxes, as accumulated other comprehensive income (loss) within shareholders’ equity. · Held-to-maturity securities, which management has the positive intent and ability to hold to maturity, reported at amortized cost, adjusted for the accretion of discounts and amortization of premiums. Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. There were no transfers during the years ended December 31, 2015 and 2014. Gains or losses on the sale of investment securities are computed on the specific identification method. Interest earned on investment securities is reported in interest income, net of applicable adjustments for accretion of discounts and amortization of premiums. An investment security is impaired when its carrying value is greater than its fair value. Investment securities that are impaired are evaluated on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in their value is other than temporary. Management utilizes criteria such as the magnitude and duration of the decline and the intent and ability of the Company to retain its investment in the securities for a period of time sufficient to allow for an anticipated recovery in fair value, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary. The term “other than temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. For debt securities, once a decline in value is determined to be other than temporary and management does not intend to sell the security or it is more likely than not that management will not be required to sell the security before recovery, only the portion of the impairment loss representing credit exposure is recognized as a charge to earnings, with the balance recognized as a charge to other comprehensive income. If management intends to sell the security or it is more likely than not that management will be required to sell the security before recovering its forecasted cost, the entire impairment loss is recognized as a charge to earnings. For equity securities, the entire amount of impairment is recognized through earnings. Federal Home Loan Bank Stock Investments in Federal Home Loan Bank of San Francisco (the “FHLB”) stock are carried at cost and are redeemable at par with certain restrictions. Investments in FHLB stock are necessary to participate in FHLB programs. Loans and Leases Loans and leases that management has both the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amounts outstanding, adjusted for unearned income, deferred loan origination fees and costs, purchase premiums and discounts, write-downs and the allowance for loan and lease losses. Loan and lease origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized as an adjustment to the yield of the related loans and leases. For all classes of loans and leases, the accrual of interest is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to meet payment requirements within an acceptable time frame relative to the terms stated in the loan agreement. Upon such discontinuance, all unpaid accrued interest is reversed against current income unless the loan or lease is well secured and in the process of collection. Interest received on nonaccrual loans and leases is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans and leases are restored to accrual status when the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Direct financing leases are carried net of unearned income. Income from leases is recognized by a method that approximates a level yield on the outstanding net investment in the lease. Loan Sales and Servicing Included in the loan and lease portfolio are Small Business Administration (“SBA”) loans and Farm Service Agency guaranteed loans that may be sold in the secondary market. At the time the loan is sold, the related right to service the loan is either retained, with the Company earning future servicing income, or released in exchange for a one-time servicing-released premium. Loans subsequently transferred to the loan portfolio are transferred at the lower of cost or fair value at the date of transfer. Any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield by the interest method. There were no loans held for sale at December 31, 2015 and 2014. SBA and Farm Service Agency loans with unpaid balances of $202,000 and $233,000 were being serviced for others as of December 31, 2015 and 2014, respectively. The Company also serviced loans that are participated with other financial institutions totaling $7,942,000 and $8,136,000 as of December 31, 2015 and 2014, respectively. Servicing rights acquired through 1) a purchase or 2) the origination of loans which are sold or securitized with servicing rights retained are recognized as separate assets or liabilities. Servicing assets or liabilities are initially recorded at fair value and are subsequently amortized in proportion to and over the period of the related net servicing income or expense. Servicing assets are periodically evaluated for impairment. Servicing assets were not considered material for disclosure purposes at December 31, 2015 and 2014. Allowance for Loan and Lease Losses The allowance for loan and lease losses is an estimate of probable credit losses inherent in the Company’s credit portfolio that have been incurred as of the balance-sheet date. The allowance is established through a provision for loan and lease losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is typically recorded as a recovery to the allowance. The overall allowance consists of two primary components, specific reserves related to impaired credits and general reserves for inherent probable losses related to credits that are not impaired. For all classes of the portfolio, a loan or lease is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principle and interest payments when due. Impaired loans are individually evaluated to determine the extent of impairment, if any, except for smaller-balance loans that are collectively evaluated for credit risk. When a loan or lease is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the credit’s original interest rate, except that as a practical expedient, it may measure impairment based on a credit’s observable market price, or the fair value of the collateral if the credit is collateral dependent. A loan or lease is collateral dependent if the repayment of the credit is expected to be provided solely by the sale or operation of the underlying collateral. For all portfolio segments, a restructuring of a debt constitutes a troubled debt restructuring (“TDR”) if the Company grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. Restructured workout loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. Loans or leases that are reported as TDRs are considered impaired and measured for impairment as described above. For all portfolio segments, the determination of the general reserve for loans and leases that are not impaired is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, and qualitative factors to include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the credit portfolio, and probable losses inherent in the portfolio taken as a whole. During the fourth quarter of 2015, the Company made a specific enhancement to its methodology for determining the general reserve component of the ALLL. The enhancement related specifically to the methodology used to calculate the qualitative factors with respect to non-impaired loans graded watch, special mention and substandard by eliminating the use of multipliers. The ALLL methodology was also revised to add an additional qualitative factor, by loan grade, in calculating the general reserve component of the ALLL. Management believes that the allocation of the ALLL to each loan risk grade, within each loan type has become more precise under the methodology enhancement. The implementation of the ALLL model revision did not have a material impact on the calculation of the required allowance for loan losses as of December 31, 2015. The Company determines a separate allowance for each portfolio segment. These portfolio segments include commercial, real estate construction (including land and development loans), residential real estate, multi-family real estate, commercial real estate, leases, agriculture, and consumer loans. The allowance for loan and lease losses attributable to each portfolio segment, which includes both impaired credits and credits that are not impaired, is combined to determine the Company’s overall allowance, which is included as a component of loans and leases on the consolidated balance sheet and available for all loss exposures. The Company assigns a risk rating to all loans and periodically performs detailed reviews of all such loans over a certain threshold to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by independent specialists engaged by the Company and the Company’s regulators. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans. These credit quality indicators are used to assign a risk rating to each individual credit. The risk ratings can be grouped into six major categories, defined as follows: Pass Watch Special Mention Substandard Doubtful Loss The general reserve component of the allowance for loan and lease losses also consists of reserve factors that are based on management’s assessment of the following for each portfolio segment: (1) inherent credit risk, (2) historical losses and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below. Real Estate- Commercial Real Estate- Construction Real Estate- Multi-family Real Estate- Residential Commercial Lease Financing Receivable – Agricultural Consumer Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s primary regulators, the FDIC and the California Department of Business Oversight, as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates probable incurred losses using historical data and utilization assumptions. The allowance for off-balance-sheet commitments is included in accrued interest payable and other liabilities on the consolidated balance sheet. Other Real Estate Owned (OREO) Other real estate owned includes real estate acquired in full or partial settlement of loan obligations. When property is acquired, any excess of the recorded investment in the loan balance and accrued interest income over the estimated fair market value of the property less estimated selling costs is charged against the allowance for loan and lease losses. A valuation allowance for losses on other real estate may be maintained to provide for temporary declines in value. The valuation allowance is established through a provision for losses on other real estate which is included in other expenses. Subsequent gains or losses on sales or writedowns resulting from permanent impairments are recorded in other income or expense as incurred. During 2015, the Company received $1,153,000 in net proceeds from the sale of other real estate owned with net losses of $1,000 recognized on the sale. During 2014, the Company received $2,283,000 in net proceeds from the sale of other real estate owned with net gains of $231,000 recognized on the sale. The recorded investment in other real estate owned totaled $3,551,000 and $4,647,000 at December 31, 2015 and 2014, respectively, and had related valuation allowances of zero and $156,000, respectively. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation. Land is not depreciated. Depreciation is determined using the straight-line method over the estimated useful lives of the related assets. The useful life of the building and improvements is forty years. The useful lives of furniture, fixtures and equipment are estimated to be three to ten years. Leasehold improvements are amortized over the life of the asset or the term of the related lease, whichever is shorter. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired. Goodwill and Intangible Assets Business combinations involving the Company’s acquisition of equity interests or net assets of another enterprise or the assumption of net liabilities in an acquisition of branches constituting a business may give rise to goodwill. Goodwill represents the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. The value of goodwill is ultimately derived from the Company’s ability to generate net earnings after the acquisition and is not deductible for tax purposes. A decline in net earnings could be indicative of a decline in the fair value of goodwill and result in impairment. For that reason, goodwill is assessed for impairment at least annually. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2015, the Company had one reporting unit and that reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Bank-Owned Life Insurance The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income Taxes The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. The Company accounts for income taxes using the balance sheet method, under which deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The deferred provision for income taxes is the result of the net change in the deferred tax asset and deferred tax liability balances during the year. This amount combined with the current taxes payable or refundable, results in the income tax expense for the current year. On the consolidated balance sheet, net deferred tax assets are included in accrued interest receivable and other assets. The realization of deferred income tax assets is assessed and a valuation allowance is recorded if it is “more likely than not” that all or a portion of the deferred tax assets will not be realized. “More likely than not” is defined as greater than a 50% chance. All available evidence, both positive and negative is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. Based upon the Company’s analysis of available evidence, the Company determined that it is “more likely than not” that all of the deferred income tax assets as of December 31, 2015 and 2014 will be fully realized and therefore no valuation allowance was recorded. The Company uses a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest expense and penalties associated with unrecognized tax benefits, if any, are classified as income tax expense in the consolidated statement of income. Comprehensive Income Comprehensive income is reported in addition to net income for all periods presented. Comprehensive income consists of net income and other comprehensive income. Unrealized gains and losses on the Company’s available-for-sale investment securities are included in other comprehensive income (loss), adjusted for realized gains or losses included in net income. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income. Earnings Per Share Basic earnings per share (“EPS”), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock that share in the earnings of the Company. The treasury stock method has been applied to determine the dilutive effect of stock options and restricted stock in computing diluted EPS. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the consolidated financial statements. There were no stock splits or stock dividends in 2015, 2014 or 2013. Stock-Based Compensation At December 31, 2015, the Company had two stock-based compensation plans, which are described more fully in Note 13. Compensation expense, net of related tax benefits, recorded in 2015, 2014 and 2013 totaled $176,000, $107,000 and $84,000, or $0.02, $0.01 and $0.01 per diluted share, respectively. Compensation expense is recognized over the vesting period on a straight line accounting basis. The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton based option valuation model that uses the assumptions noted in the following table. Because Black-Scholes-Merton based option valuation models incorporate ranges of assumptions for inputs, those ranges are disclosed. Expected volatilities are based on historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate the dividend yield, option life and forfeiture rate within the valuation model. The expected option life represents the period of time that options granted are expected to be outstanding. The risk-free rate for the period representing the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. 2015 2014 Dividend yield 0.0 % 0.0 % Expected volatility 28.1 % 20.7 % Risk-free interest rate 1.92 % 2.10 % Expected option life in years 7 7 Weighted average fair value of options granted during the year $ 3.24 $ 2.44 There were no options granted in 2013 under either stock-based compensation plans. Restricted stock awards are grants of shares of the Company’s common stock that are subject to forfeiture until specific conditions or goals are met. Conditions may be based on continuing employment or service and/or achieving specified performance goals. During the period of restriction, Plan participants holding restricted share awards have voting and cash dividend rights. The restrictions lapse in accordance with a schedule or with other conditions determined by the Board of Directors as reflected in each award agreement. Upon the vesting of each restricted stock award, the Company issues the associated common shares from its inventory of authorized common shares. All outstanding awards under the Plan immediately vest in the event of a change of control of the Company. The shares associated with any awards that fail to vest become available for re-issuance under the Plan. The following is a summary of stock-based compensation information as of or for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 (Dollars in thousands) Total intrinsic value of options exercised $ — $ — $ — Aggregate cash received for option exercises $ — $ — $ — Total fair value of options vested $ 24 $ 14 $ 40 Total compensation cost, options and restricted stock $ 271 $ 166 $ 131 Tax benefit recognized $ 94 $ 59 $ 47 Net compensation cost, options and restricted stock $ 176 $ 107 $ 84 Total compensation cost for nonvested option awards not yet recognized $ 165 $ 104 $ 38 Weighted average years for compensation cost for nonvested options to be recognized 2.0 2.1 1.1 Total compensation cost for restricted stock not yet recognized $ 530 $ 273 $ 173 Weighted average years for compensation cost for restricted stock to be recognized 1.6 1.2 1.0 Operating Segments While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Recently Issued Financial Accounting Pronouncements Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure-- (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments in this Update were effective for annual reporting periods beginning after December 15, 2014, including interim periods within that reporting period. The effects of adopting this Update did not have a material effect on the Company’s consolidated financial position, results of operations or cash flows. Revenue from Contracts with Customers (Topic 606)-- Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)--

3. FAIR VALUE MEASUREMENTS

3. FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of December 31, 2015 and December 31, 2014. They indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Estimated fair values are disclosed for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. 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 any of these estimates. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands): Carrying Fair Value Measurements Using: December 31, 2015 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 23,727 $ 23,727 $ — $ — $ 23,727 Interest-bearing deposits in banks 750 — 752 — 752 Available-for-sale securities 273,819 24 273,795 — 273,819 Held-to-maturity securities 623 — 669 — 689 FHLB stock 3,779 N/A N/A N/A N/A Loans and leases, net 289,102 — — 292,444 292,444 Accrued interest receivable 1,885 — 1,077 808 1,885 Financial liabilities: Deposits: Noninterest-bearing $ 190,548 $ 190,548 $ — $ — $ 190,548 Savings 59,061 59,061 — — 59,061 Money market 135,186 135,186 — — 135,186 NOW accounts 61,324 61,324 — — 61,324 Time Deposits 84,571 — 85,165 — 85,165 Short-term borrowings 3,500 3,500 — — 3,500 Long-term borrowings 7,500 — 7,502 — 7,502 Accrued interest payable 60 — 60 — 60 Carrying Fair Value Measurements Using: December 31, 2014 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 22,449 $ 22,449 $ — $ — $ 22,449 Interest-bearing deposits in banks 1,000 — 1,002 — 1,002 Available-for-sale securities 289,064 28 289,036 — 289,064 Held-to-maturity securities 862 — 922 — 922 FHLB stock 3,686 N/A N/A N/A N/A Loans and leases, net 258,057 — — 261,421 261,421 Accrued interest receivable 1,858 — 1,150 708 1,858 Financial liabilities: Deposits: Noninterest-bearing $ 155,698 $ 155,698 $ — $ — $ 155,698 Savings 58,820 58,820 — — 58,820 Money market 147,625 147,625 — — 147,625 NOW accounts 60,862 60,862 — — 60,862 Time, $100,000 or more 87,688 — 88,485 — 88,485 Short-term borrowings 3,500 3,500 — — 3,500 Long-term borrowings 7,500 — 7,567 — 7,567 Accrued interest payable 59 — 59 — 59 Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. 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 fair values presented. The following methods and assumptions were used by the Company to estimate the fair values of its financial instruments at December 31, 2015 and December 31, 2014: Cash and due from banks Interest-bearing deposits in banks Investment securities FHLB stock Loans and leases Deposits Short-term and long-term borrowings Accrued interest receivable and payable Off-balance sheet instruments Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table: (Dollars in thousands) Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Gains December 31, 2015 Fair Value (Level 1) (Level 2) (Level 3) (Losses) Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 246,185 $ — $ 246,185 $ — $ — Corporate Debt Securities 1,551 — 1,551 — — Obligations of states and political subdivisions 26,013 — 26,013 — — Corporate stock 70 24 46 — — Total recurring $ 273,819 $ 24 $ 273,795 $ — $ — (Dollars in thousands) Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Gains December 31, 2015 Fair Value (Level 1) (Level 2) (Level 3) (Losses) Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial 3,900 — — 3,900 (334 ) Other real estate owned: Commercial 2,522 — — 2,522 — Land 1,029 — — 1,029 — Total nonrecurring $ 7,451 $ — $ — $ 7,451 $ (334 ) (Dollars in thousands) Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Gains December 31, 2014 Fair Value (Level 1) (Level 2) (Level 3) (Losses) Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 261,115 $ — $ 261,115 $ — $ — Corporate Debt Securities 1,583 — 1,583 — — Obligations of states and political subdivisions 26,289 — 26,289 — — Corporate stock 77 28 49 — — Total recurring $ 289,064 $ 28 $ 289,036 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Commercial $ 666 $ — $ — $ 666 $ 14 Real estate: Commercial 286 — — 286 — Other real estate owned: Commercial 243 — — 243 — Land 2,252 — — 2,252 (60 ) Total nonrecurring $ 3,447 $ — $ — $ 3,447 $ (46 ) U.S. Government Agencies and Sponsored Agencies consist predominately of residential mortgage-backed securities. There were no transfers between Levels 1 and 2 during the years ended December 31, 2015 or December 31, 2014. The following methods were used to estimate the fair value of each class of financial instrument above: Available-for-sale securities – Impaired loans Other real estate owned

4. GOODWILL AND OTHER INTANGIBL

4. GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	At December 31, 2015 and 2014, goodwill totaled $16,321,000. Goodwill is evaluated annually for impairment and was most recently evaluated in December 2011 under the provisions of the codification Topic 350, Goodwill and Other Intangibles. At December 31, 2015 and 2014, the Company did not have other intangible assets.

5. INVESTMENT SECURITIES

5. INVESTMENT SECURITIES	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	The amortized cost and estimated fair value of investment securities at December 31, 2015 and 2014 consisted of the following (dollars in thousands): Available-for-Sale 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Agencies $ 244,056 $ 3,059 $ (930 ) $ 246,185 Obligations of states and political subdivisions 24,706 1,307 — 26,013 Corporate Debt Securities 1,502 49 — 1,551 Equity securities: Corporate stock 51 19 — 70 $ 270,315 $ 4,434 $ (930 ) $ 273,819 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Agencies $ 257,002 $ 4,715 $ (602 ) $ 261,115 Obligations of states and political subdivisions 24,886 1,423 (20 ) 26,289 Corporate Debt Securities 1,504 79 — 1,583 Equity securities: Corporate stock 54 23 — 77 $ 283,446 $ 6,240 $ (622 ) $ 289,064 U.S. Government Agencies and U.S. Government-sponsored Agencies consist predominately of residential mortgage-backed securities. Net unrealized gains on available-for-sale investment securities totaling $3,504,000 were recorded, net of $1,401,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at December 31, 2015. Proceeds and gross realized gains from the sale, impairment and call of available-for-sale investment securities for the year ended December 31, 2015 totaled $23,764,000 and $251,000, respectively. There were no transfers of available-for-sale investment securities during the year ended December 31, 2015. Net unrealized gains on available-for-sale investment securities totaling $5,618,000 were recorded, net of $2,247,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at December 31, 2014. Proceeds and gross realized gains from the sale, impairment and call of available-for-sale investment securities for the year ended December 31, 2014 totaled $24,964,000 and $208,000, respectively. There were no transfers of available-for-sale investment securities during the year ended December 31, 2014. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the year ended December 31, 2013 totaled $9,441,000 and $36,000, respectively. Held-to-Maturity 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Agencies $ 623 $ 46 $ — $ 669 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Agencies $ 862 $ 60 $ — $ 922 There were no sales or transfers of held-to-maturity investment securities for the years ended December 31, 2015, 2014 and 2013. The amortized cost and estimated fair value of investment securities at December 31, 2015 by contractual maturity are shown below (dollars in thousands). Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ 490 $ 494 After one year through five years 5,140 5,298 After five years through ten years 14,621 15,542 After ten years 5,957 6,230 Investment securities not due at a single maturity date: U.S. Government Agencies and Sponsored Agencies 244,056 246,185 $ 623 $ 669 Corporate stock 51 70 — — $ 270,315 $ 273,819 $ 623 $ 669 Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Investment securities with amortized costs totaling $56,836,000 and $65,732,000 and estimated fair values totaling $57,665,000 and $67,039,000 were pledged to secure State Treasury funds on deposit, public agency and bankruptcy trustee deposits and borrowing arrangements (see Note 10) at December 31, 2015 and 2014, respectively. Investment securities with unrealized losses at December 31, 2015 and 2014 are summarized and classified according to the duration of the loss period as follows (dollars in thousands): 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Agencies $ 93,265 $ (813 ) $ 5,251 $ (117 ) $ 98,516 $ (930 ) Obligations of states and political subdivisions — — — — — — $ 93,265 $ (813 ) $ 5,251 $ (117 ) $ 98,516 $ (930 ) 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Agencies $ 57,145 $ (503 ) $ 10,006 $ (99 ) $ 67,151 $ (602 ) Obligations of states and political subdivisions — — 649 (20 ) 649 (20 ) $ 57,145 $ (503 ) $ 10,655 $ (119 ) $ 67,800 $ (622 ) At December 31, 2015, the Company held 223 securities of which 45 were in a loss position for less than twelve months and three were in a loss position for twelve months or more. Of these securities, all are mortgage-backed securities. The unrealized loss on the Company’s investments in securities is primarily driven by interest rates. Because the decline in market value is attributable to a change in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity, management does not consider these investments to be other-than-temporarily impaired.

6. LOANS AND LEASES

6. LOANS AND LEASES	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
LOANS AND LEASES	Outstanding loans and leases are summarized as follows (dollars in thousands): December 31, 2015 2014 Real estate – commercial $ 199,591 $ 193,871 Real estate – construction 14,533 8,028 Real estate – multi-family 23,494 14,167 Real estate – residential 14,200 13,309 Commercial 36,195 25,186 Lease financing receivable 732 1,286 Agriculture 2,431 2,882 Consumer 3,122 4,916 294,298 263,645 Deferred loan and lease origination fees, net (221 ) (287 ) Allowance for loan and lease losses (4,975 ) (5,301 ) $ 289,102 $ 258,057 Certain loans are pledged as collateral for available borrowings with the FHLB and the Federal Reserve Bank of San Francisco (the “FRB”). Pledged loans totaled $160,626,000 and $147,254,000 at December 31, 2015 and 2014, respectively (see Note 10). The components of the Company’s lease financing receivable are summarized as follows (dollars in thousands): December 31, 2015 2014 Future lease payments receivable $ 774 $ 1,358 Residual interests — 13 Unearned income (42 ) (85 ) Net lease financing receivable $ 732 $ 1,286 Future lease payments receivable are as follows (dollars in thousands): Year Ending December 31, 2016 $ 352 2017 211 2018 178 2019 33 2020 — Total lease payments receivable $ 774 Salaries and employee benefits totaling $257,000, $244,000 and $315,000 have been deferred as loan and lease origination costs for the years ended December 31, 2015, 2014 and 2013, respectively.

7. ALLOWANCE FOR LOAN AND LEASE

7. ALLOWANCE FOR LOAN AND LEASE LOSSES	12 Months Ended
	Dec. 31, 2015
Allowance For Loans And Lease Losses [Abstract]
ALLOWANCE FOR LOAN AND LEASE LOSSES	The following tables show the activity in the allowance for loan and lease losses for the years ended December 31, 2015, 2014 and 2013 and the allocation of the allowance for loan and lease losses as of December 31, 2015, 2014 and 2013 by portfolio segment and by impairment methodology (dollars in thousands): December 31, 2015 Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance $ 1,430 $ 2,317 $ 130 $ 583 $ 399 $ 2 $ 62 $ 124 $ 254 $ 5,301 Provision for loan losses (84 ) — 98 230 (193 ) — 15 (42 ) (24 ) — Loans charged-off (609 ) — — — — (1 ) — (6 ) — (616 ) Recoveries 123 52 — — 113 — — 2 — 290 Ending balance allocated to portfolio segments $ 860 $ 2,369 $ 228 $ 813 $ 319 $ 1 $ 77 $ 78 $ 230 $ 4,975 Ending balance: Individually evaluated for impairment $ 25 $ 598 $ 5 $ — $ 204 $ — $ 38 $ 29 $ — $ 899 Ending balance: Collectively evaluated for impairment $ 835 $ 1,771 $ 223 $ 813 $ 115 $ 1 $ 39 $ 49 $ 230 $ 4,076 Loans Ending balance $ 36,195 $ 199,591 $ 23,494 $ 14,533 $ 14,200 $ 732 $ 2,431 $ 3,122 $ — $ 294,298 Ending balance: Individually evaluated for impairment $ 121 $ 17,866 $ 488 $ — $ 2,452 $ — $ 370 $ 68 $ — $ 21,365 Ending balance: Collectively evaluated for impairment $ 36,074 $ 181,725 $ 23,006 $ 14,533 $ 11,748 $ 732 $ 2,061 $ 3,054 $ — $ 272,933 December 31, 2014 Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance $ 885 $ 2,401 $ 242 $ 542 $ 825 $ 4 $ 80 $ 161 $ 206 $ 5,346 Provision for loan losses 289 (135 ) (205 ) 39 (443 ) (5 ) (18 ) (111 ) 48 (541 ) Loans charged-off — — — — — — — (76 ) — (76 ) Recoveries 256 51 93 2 17 3 — 150 — 572 Ending balance allocated to portfolio segments $ 1,430 $ 2,317 $ 130 $ 583 $ 399 $ 2 $ 62 $ 124 $ 254 $ 5,301 Ending balance: Individually evaluated for impairment $ 344 $ 949 $ 38 $ — $ 237 $ — $ 13 $ 22 $ — $ 1,603 Ending balance: Collectively evaluated for impairment $ 1,086 $ 1,368 $ 92 $ 583 $ 162 $ 2 $ 49 $ 102 $ 254 $ 3,698 Loans Ending balance $ 25,186 $ 193,871 $ 14,167 $ 8,028 $ 13,309 $ 1,286 $ 2,882 $ 4,916 $ — $ 263,645 Ending balance: Individually evaluated for impairment $ 769 $ 20,457 $ 496 $ — $ 2,862 $ — $ 381 $ 155 $ — $ 25,120 Ending balance: Collectively evaluated for impairment $ 24,417 $ 173,414 $ 13,671 $ 8,028 $ 10,447 $ 1,286 $ 2,501 $ 4,761 $ — $ 238,525 December 31, 2013 Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance $ 1,351 $ 2,526 $ 238 $ 594 $ 477 $ 3 $ 87 $ 262 $ 243 $ 5,781 Provision for loan losses (304 ) 327 4 (73 ) 363 2 (7 ) (75 ) (37 ) 200 Loans charged-off (377 ) (476 ) — — (58 ) (1 ) — (26 ) — (938 ) Recoveries 215 24 — 21 43 — — — — 303 Ending balance allocated to portfolio segments $ 885 $ 2,401 $ 242 $ 542 $ 825 $ 4 $ 80 $ 161 $ 206 $ 5,346 Ending balance: Individually evaluated for impairment $ 392 $ 792 $ 108 $ — $ 276 $ — $ — $ 30 $ — $ 1,598 Ending balance: Collectively evaluated for impairment $ 493 $ 1,609 $ 134 $ 542 $ 549 $ 4 $ 80 $ 131 $ 206 $ 3,748 Loans Ending balance $ 24,545 $ 184,204 $ 11,085 $ 9,633 $ 17,703 $ 1,344 $ 3,120 $ 5,772 $ — $ 257,406 Ending balance: Individually evaluated for impairment $ 1,736 $ 19,919 $ 1,650 $ 248 $ 3,316 $ — $ — $ 165 $ — $ 27,034 Ending balance: Collectively evaluated for impairment $ 22,809 $ 164,285 $ 9,435 $ 9,385 $ 14,387 $ 1,344 $ 3,120 $ 5,607 $ — $ 230,372 The following tables show the loan portfolio allocated by management’s internal risk ratings as of December 31, 2015 and 2014 (dollars in thousands): December 31, 2015 Credit Risk Profile by Internally Assigned Grade Real Estate Other Credit Exposure Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Total Grade: Pass $ 32,216 $ 172,755 $ 23,001 $ 6,371 $ 10,593 $ 732 $ 2,061 $ 2,136 $ 249,865 Watch 1,073 17,318 493 8,162 2,099 — 370 378 29,893 Special mention — 8,363 — — 697 — — 433 9,493 Substandard 2,906 1,155 — — 811 — — 175 5,047 Doubtful — — — — — — — — — Total $ 36,195 $ 199,591 $ 23,494 $ 14,533 $ 14,200 $ 732 $ 2,431 $ 3,122 $ 294,298 December 31, 2014 Credit Risk Profile by Internally Assigned Grade Real Estate Other Credit Exposure Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Total Grade: Pass $ 20,179 $ 163,091 $ 13,663 $ 3,327 $ 9,364 $ 1,286 $ 2,501 $ 3,424 $ 216,835 Watch 1,280 13,724 504 4,372 2,504 — — 1,041 23,425 Special mention 101 13,583 — 329 603 — 381 268 15,265 Substandard 3,626 3,473 — — 838 — — 183 8,120 Doubtful — — — — — — — — — Total $ 25,186 $ 193,871 $ 14,167 $ 8,028 $ 13,309 $ 1,286 $ 2,882 $ 4,916 $ 263,645 The following tables show an aging analysis of the loan portfolio at December 31, 2015 and 2014 (dollars in thousands): December 31, 2015 Past Due Past Due Greater Greater Than 30-59 Days 60-89 Days Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ 30 $ 30 $ 36,165 $ 36,195 $ — $ 30 Real estate: Commercial — 359 499 858 198,733 199,591 — 1,155 Multi-family — — — — 23,494 23,494 — — Construction — — — — 14,533 14,533 — — Residential — — 338 338 13,862 14,200 — 338 Other: Leases — — — — 732 732 — — Agriculture — — — — 2,431 2,431 — — Consumer 367 — — 367 2,755 3,122 — 120 Total $ 367 $ 359 $ 867 $ 1,593 $ 292,705 $ 294,298 $ — $ 1,643 December 31, 2014 Past Due Past Due Greater Greater Than 30-59 Days 60-89 Days Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ 513 $ — $ 666 $ 1,179 $ 24,007 $ 25,186 $ — $ 666 Real estate: Commercial 507 — 507 1,014 192,857 193,871 — 507 Multi-family — — — — 14,167 14,167 — — Construction — — — — 8,028 8,028 — — Residential — — 338 338 12,971 13,309 — 338 Other: Leases — — — — 1,286 1,286 — — Agriculture — — — — 2,882 2,882 — — Consumer 135 — — 135 4,781 4,916 — 142 Total $ 1,155 $ — $ 1,511 $ 2,666 $ 260,979 $ 263,645 $ — $ 1,653 The following tables show information related to impaired loans as of and for the years ended December 31, 2015, 2014 and 2013 (dollars in thousands): December 31, 2015 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Commercial 12,269 12,902 — 12,345 595 Residential 338 338 — 338 — Other: Consumer — — — — — $ 12,607 $ 13,240 $ — $ 12,683 $ 595 With an allowance recorded: Commercial $ 121 $ 121 $ 25 $ 99 $ 9 Real estate: Commercial 5,597 5,693 598 4,953 320 Multi-family 488 488 5 492 29 Residential 2,114 2,201 204 2,140 91 Other: Agriculture 370 370 38 375 18 Consumer 68 68 29 76 — $ 8,758 $ 8,941 $ 899 $ 8,135 $ 467 Total: Commercial $ 121 $ 121 $ 25 $ 99 $ 9 Real estate: Commercial 17,866 18,595 598 17,298 915 Multi-family 488 488 5 492 29 Residential 2,452 2,539 204 2,478 91 Other: Agriculture 370 370 38 375 18 Consumer 68 68 29 76 — $ 21,365 $ 22,181 $ 899 $ 20,818 $ 1,062 December 31, 2014 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ — $ — $ — $ — $ 3 Real estate: Commercial 10,684 10,882 — 10,512 518 Residential 338 338 — 340 7 Other: Consumer 37 37 — 37 2 $ 11,059 $ 11,257 $ — $ 10,889 $ 530 With an allowance recorded: Commercial $ 769 $ 769 $ 344 $ 758 $ 4 Real estate: Commercial 9,773 9,773 949 8,917 562 Multi-family 496 496 38 501 20 Residential 2,524 2,524 237 2,553 114 Other: Agriculture 381 381 13 386 21 Consumer 118 118 22 123 2 $ 14,061 $ 14,061 $ 1,603 $ 13,238 $ 723 Total: Commercial $ 769 $ 769 $ 344 $ 758 $ 7 Real estate: Commercial 20,457 20,655 949 19,429 1,080 Multi-family 496 496 38 501 20 Residential 2,862 2,862 237 2,893 121 Other: Agriculture 381 381 13 386 21 Consumer 155 155 22 160 4 $ 25,120 $ 25,318 $ 1,603 $ 24,127 $ 1,253 December 31, 2013 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ 577 $ 577 $ — $ 665 $ 11 Real estate: Commercial 10,921 11,119 — 11,614 11 Construction 248 248 — 256 — Other: Consumer 37 37 — 37 1 $ 11,783 $ 11,981 $ — $ 12,572 $ 23 With an allowance recorded: Commercial $ 1,159 $ 1,159 $ 392 $ 1,240 $ 10 Real estate: Commercial 8,998 8,998 792 9,008 196 Multi-family 1,650 1,743 108 1,665 39 Residential 3,316 3,316 276 3,354 70 Other: Consumer 128 128 30 136 1 $ 15,251 $ 15,344 $ 1,598 $ 15,403 $ 316 Total: Commercial $ 1,736 $ 1,736 $ 392 $ 1,905 $ 21 Real estate: Commercial 19,919 20,117 792 20,622 207 Multi-family 1,650 1,743 108 1,665 39 Construction 248 248 — 256 Residential 3,316 3,316 276 3,354 70 Other: Consumer 165 165 30 173 2 $ 27,034 $ 27,325 $ 1,598 $ 27,975 $ 339 The recorded investment in loans and leases that were considered to be impaired totaled $21,365,000 at December 31, 2015 and had a related valuation allowance of $899,000. The average recorded investment in impaired loans and leases during 2015 was approximately $20,818,000. The recorded investment in loans and leases that were considered to be impaired totaled $25,120,000 at December 31, 2014 and had a related valuation allowance of $1,603,000. The average recorded investment in impaired loans and leases during 2014 was approximately $24,127,000. Non-accrual loans and leases totaled approximately $1,643,000 and $1,653,000 at December 31, 2015 and 2014, respectively. There were no loans and leases past due 90 days or more and still accruing interest at December 31, 2015 and December 31, 2014. Interest income on non-accrual loans is generally recognized on a cash basis and was approximately $59,000, $84,000 and $161,000 for the years ended December 31, 2015, 2014 and 2013. Interest foregone on non-accrual loans was approximately $145,000, $116,000 and $324,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Troubled Debt Restructurings During the period ended December 31, 2015, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate or an extension of the maturity date. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from three years to nine years. Modifications involving an extension of the maturity date were for periods ranging from six months to nine years. The following table presents loans by class modified as troubled debt restructurings during the year ended December 31, 2015 (dollars in thousands): Pre- Post- Modification Modification Outstanding Outstanding Number Recorded Recorded of Loans Investment Investment Troubled debt restructurings: Commercial 1 $ 26 $ 26 Consumer 1 23 23 Real estate – residential 2 407 407 Real estate – commercial 1 644 644 Total 5 $ 1,100 $ 1,100 The troubled debt restructurings described above increased the allowance for loan and lease losses by $59,000 and resulted in no charge-offs of during the year ended December 31, 2015. The Company has not committed to lend additional amounts as of December 31, 2015 to borrowers with outstanding loans that are classified as troubled debt restructurings. There were no payment defaults on troubled debt restructurings within 12 months following the modification during the year ended December 31, 2015. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. The following table presents loans by class modified as troubled debt restructurings during the year ended December 31, 2014 (dollars in thousands): Pre- Post- Modification Modification Outstanding Outstanding Number Recorded Recorded of Loans Investment Investment Troubled debt restructurings: Commercial 2 $ 50 $ 50 Real estate – commercial 8 5,787 5,787 Total 10 $ 5,837 $ 5,837 The troubled debt restructurings described above increased the allowance for loan and lease losses by $263,000 and resulted in no charge-offs of during the year ended December 31, 2014. The Company has not committed to lend additional amounts as of December 31, 2014 to borrowers with outstanding loans that are classified as troubled debt restructurings. There were no payment defaults on troubled debt restructurings within 12 months following the modification during the year ended December 31, 2014. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.

8. PREMISES AND EQUIPMENT

8. PREMISES AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
PREMISES AND EQUIPMENT	Premises and equipment consisted of the following (dollars in thousands): December 31, 2015 2014 Land $ 206 $ 206 Building and improvements 845 855 Furniture, fixtures and equipment 5,831 5,577 Leasehold improvements 1,565 1,533 8,447 8,171 Less accumulated depreciation and amortization (7,040 ) (6,653 ) $ 1,407 $ 1,518 Depreciation and amortization included in occupancy and furniture and equipment expense totaled $430,000, $438,000 and $518,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

9. INTEREST-BEARING DEPOSITS

9. INTEREST-BEARING DEPOSITS	12 Months Ended
	Dec. 31, 2015
Interest-bearing Deposit Liabilities [Abstract]
INTEREST-BEARING DEPOSITS	Interest-bearing deposits consisted of the following (dollars in thousands): December 31, 2015 2014 Savings $ 59,061 $ 58,820 Money market 135,186 147,625 NOW accounts 61,324 60,862 Time, $250,000 or more 46,827 48,287 Other time 37,744 39,401 $ 340,142 $ 354,995 The Company held $29,000,000 in certificates of deposit for the State of California as of December 31, 2015 and 2014. This amount represents 5.5% of total deposit balances at December 31, 2015 and 5.7% at December 31, 2014. Aggregate annual maturities of time deposits are as follows (dollars in thousands): Year Ending December 31, 2016 $ 59,739 2017 10,908 2018 6,671 2019 4,314 2020 2,925 Thereafter 14 $ 84,571 Interest expense recognized on interest-bearing deposits consisted of the following (dollars in thousands): Year Ended December 31, 2015 2014 2013 Savings $ 29 $ 40 $ 68 Money market 218 383 435 NOW accounts 26 36 40 Time Deposits 544 562 654 $ 817 $ 1,021 $ 1,197

10. BORROWING ARRANGEMENTS

10. BORROWING ARRANGEMENTS	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
BORROWING ARRANGEMENTS	The Company has $17,000,000 in unsecured short-term borrowing arrangements to purchase Federal funds with two of its correspondent banks. There were no advances under the borrowing arrangements as of December 31, 2015 and 2014. In addition, the Company has a line of credit available with the FHLB which is secured by pledged mortgage loans (see Note 6) and investment securities (see Note 5). Borrowings may include overnight advances as well as loans with a term of up to thirty years. Advances totaling $11,000,000 were outstanding from the FHLB at December 31, 2015, bearing fixed interest rates ranging from 0.45% to 1.91% and maturing between January 19, 2016 and July 12, 2019. Advances totaling $11,000,000 were outstanding from the FHLB at December 31, 2014, bearing fixed interest rates ranging from 0.24% to 1.91% and maturing between March 16, 2015 and July 12, 2019. Amounts available under the borrowing arrangement with the FHLB at December 31, 2015 and 2014 totaled $78,326,000 and $67,228,000, respectively. In addition, the Company entered into a secured borrowing agreement with the FRB in 2008. The borrowing arrangement is secured by pledging selected loans (see Note 6) and investment securities (see Note 5). There were no advances outstanding as of December 31, 2015 and 2014. Amounts available under the borrowing arrangement with the FRB at December 31, 2015 and 2014 totaled $11,371,000 and $17,335,000, respectively. The following table summarizes these borrowings (dollars in thousands): December 31, 2015 2014 Weighted Weighted Average Average Amount Rate Amount Rate Short-term portion of borrowings $ 3,500 1.28 % $ 3,500 0.92 % Long-term borrowings 7,500 1.24 % 7,500 1.39 % $ 11,000 1.26 % $ 11,000 1.24 % Maturities on these borrowings are as follows (dollars in thousands): Year Ending December 31, 2016 $ 3,500 2017 3,500 2018 2,000 2019 2,000 2020 — Thereafter — $ 11,000

11. INCOME TAXES

11. INCOME TAXES	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	The provision for (benefit from) income taxes for the years ended December 31, 2015, 2014, and 2013 consisted of the following (dollars in thousands): Federal State Total 2015 Current $ 1,482 $ 719 $ 2,201 Deferred 409 64 473 Provision for income taxes $ 1,891 $ 783 $ 2,674 2014 Current $ 1,754 $ 612 $ 2,366 Deferred (99 ) 25 (74 ) Provision for income taxes $ 1,655 $ 637 $ 2,292 Federal State Total 2013 Current $ 797 $ 217 $ 1,014 Deferred 162 82 244 Provision for income taxes $ 959 $ 299 $ 1,258 Deferred tax assets (liabilities) consisted of the following (dollars in thousands): December 31, 2015 2014 Deferred tax assets: Allowance for loan and lease losses $ 2,275 $ 2,422 Other real estate owned 30 287 Deferred compensation 2,519 2,502 Other 252 165 Total deferred tax assets 5,076 5,376 Deferred tax liabilities: Unrealized gains on available-for-sale investment securities (1,401 ) (2,247 ) Future liability of state deferred tax assets (160 ) (215 ) Deferred loan costs (223 ) (223 ) Federal Home Loan Bank stock dividends (211 ) (211 ) Premises and equipment (273 ) (45 ) Total deferred tax liabilities (2,268 ) (2,941 ) Net deferred tax assets $ 2,808 $ 2,435 The Company and its subsidiaries file income tax returns in the United States and California jurisdictions. There are currently no pending federal, state or local income tax examinations by tax. Furthermore, with few exceptions, the Company is no longer subject to the examination by federal taxing authorities for the years ended before December 31, 2012 and by state and local taxing authorities for years before December 31, 2011. The unrecognized tax benefits and changes therein and the interest and penalties accrued by the Company as of December 31, 2015 were not significant. The provision for income taxes differs from amounts computed by applying the statutory Federal income tax rate of 34% in 2015, 2014 and 2013 to income before income taxes. The significant items comprising these differences consisted of the following: Year Ended December 31, 2015 2014 2013 Federal income tax statutory rate 34.0 % 34.0 % 34.0 % State franchise tax, net of Federal tax effect 6.5 % 6.3 % 4.6 % Tax benefit of interest on loans to/investments in states and political subdivisions (4.5 )% (4.0 )% (6.5 )% Tax-exempt income from life insurance policies (1.3 )% (1.9 )% (2.9 )% Equity compensation expense 0.1 % 0.1 % 0.1 % Other (1.1 )% — (0.1 )% Effective tax rate 33.7 % 34.5 % 29.2 %

12. COMMITMENTS AND CONTINGENCI

12. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Leases The Company leases branch facilities, administrative offices and various equipment under noncancelable operating leases which expire on various dates through the year 2024. Certain of the leases have five year renewal options. One of the branch facilities is leased from a current member of the Company’s Board of Directors (see Note 17). Future minimum lease payments are as follows (dollars in thousands): Year Ending December 31, 2016 $ 767 2017 451 2018 258 2019 155 2020 148 Thereafter 429 $ 2,208 Rental expense included in occupancy, furniture and equipment expense totaled $837,000, $872,000 and $865,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Financial Instruments With Off-Balance-Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business in order to meet the financing needs of its customers and to reduce its exposure to fluctuations in interest rates. These financial instruments consist of commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the consolidated balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and standby letters of credit as it does for loans included on the consolidated balance sheet. The following financial instruments represent off-balance-sheet credit risk (dollars in thousands): December 31, 2015 2014 Commitments to extend credit: Revolving lines of credit secured by 1-4 family residences $ 727 $ 1,447 Commercial real estate, construction and land development commitments secured by real estate 13,999 16,206 Other unused commitments, principally commercial loans 12,004 14,986 $ 26,730 $ 32,639 Standby letters of credit $ 238 $ 356 At inception, real estate commitments are generally secured by property with a loan to value ratio of 55% to 75%. In addition, the majority of the Company’s commitments have variable interest rates. Commitments to extend credit are agreements to lend to a client as long as there is no violation of any conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each client’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, equipment and deeds of trust on real estate and income-producing commercial properties. Standby letters of credit are conditional commitments issued to guarantee the performance or financial obligation of a client to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to clients. Significant Concentrations of Credit Risk The Company grants real estate mortgage, real estate construction, commercial, agricultural and consumer loans to clients throughout Northern California. In management’s judgment, a concentration exists in real estate-related loans which represented approximately 86% and 87% of the Company’s loan portfolio at December 31, 2015 and 2014, respectively. A continued substantial decline in the economy in general, or a continued decline in real estate values in the Company’s primary market areas in particular, could have an adverse impact on collectability of these loans. However, personal and business income represents the primary source of repayment for a majority of these loans. Correspondent Banking Agreements The Company maintains funds on deposit with other federally insured financial institutions under correspondent banking agreements. The Company had $4,126,000 in uninsured deposits at December 31, 2015. The Company had $4,082,000 in uninsured deposits at December 31, 2014. Contingencies The Company is subject to legal proceedings and claims which arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to such actions will not materially affect the consolidated financial position or results of operations of the Company.

13. SHAREHOLDERS' EQUITY

13. SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	Earnings Per Share A reconciliation of the numerators and denominators of the basic and diluted earnings per share computations is as follows (dollars and shares in thousands, except per share data): For the Year Ended Net Income Weighted Average Number of Shares Outstanding Per-Share Amount December 31, 2015 Basic earnings per share $ 5,268 7,561 $ 0.70 Effect of dilutive stock-based compensation — 18 Diluted earnings per share $ 5,268 7,579 $ 0.70 December 31, 2014 Basic earnings per share $ 4,361 8,130 $ 0.54 Effect of dilutive stock-based compensation — 14 Diluted earnings per share $ 4,361 8,144 $ 0.54 December 31, 2013 Basic earnings per share $ 3,057 8,888 $ 0.34 Effect of dilutive stock-based compensation — 6 Diluted earnings per share $ 3,057 8,894 $ 0.34 Stock options for 188,735 shares, 211,024 shares and 277,923 shares of common stock were not considered in computing diluted earnings per common share for the years ended December 31, 2015, 2014 and 2013, respectively, because they were antidilutive. Stock Based Compensation In 2000, the Board of Directors adopted and the Company’s shareholders approved a stock option plan (the “2000 Plan”), under which 171,950 options remain outstanding at December 31, 2015. On March 17, 2010, the Board of Directors adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan was approved by the Company’s shareholders on May 20, 2010. The total number of authorized shares that are available for issuance under the 2010 Plan is 1,395,985. The 2010 Plan provides for the following types of stock-based awards: incentive stock options; nonqualified stock options; stock appreciation rights; restricted stock; restricted performance stock; unrestricted Company stock; and performance units. Awards granted under the 2000 Plan were either incentive stock options or nonqualified stock options. The 2010 Plan and the 2000 Plan (collectively the “Plans”), under which equity incentives may be granted to employees and directors under incentive and nonstatutory agreements, require that the option price may not be less than the fair value of the stock at the date the option is granted. The option awards under the Plans expire on dates determined by the Board of Directors, but not later than ten years from the date of award. The vesting period is generally five years; however, the vesting period can be modified at the discretion of the Company’s Board of Directors. Outstanding option awards under the Plans are exercisable until their expiration; however, no new options will be awarded under the 2000 Plan. The Plans do not provide for the settlement of awards in cash and new shares are issued upon exercise of an option. A summary of the outstanding and nonvested stock option activity for the year ended December 31, 2015 is as follows: Outstanding Nonvested Shares Weighted Average Exercise Price Per Share Shares Weighted Average Grant Date Fair Value Per Share Balance, January 1, 2015 271,700 $ 16.27 43,118 $ 2.41 Options granted 26,427 $ 9.56 26,427 $ 3.24 Options vested (10,017 ) $ 2.40 Options expired or canceled (49,716 ) $ 18.11 Balance, December 31, 2015 248,411 $ 15.19 59,528 $ 2.78 A summary of options as of December 31, 2015 is as follows: Nonvested: Weighted average exercise price of nonvested stock options $ 8.96 Aggregate intrinsic value of nonvested stock options $ 96,563 Weighted average remaining contractual term in years of nonvested stock options 8.60 Vested: Number of vested stock options 188,883 Number of options expected to vest 56,216 Weighted average exercise price per share $ 17.15 Aggregate intrinsic value $ 135,879 Weighted average remaining contractual term in years 2.13 Range of Exercise Prices Number of Options Outstanding December 31, 2015 Weighted Average Remaining Contractual Life Number of Options Exercisable December 31, 2015 $7.07- $11.66 118,808 6.45 years 59,280 $11.67- $18.10 42,669 2.15 years 42,669 $18.11 - $24.07 86,934 0.65 years 86,934 248,411 188,883 Restricted Stock There were 45,023 shares of restricted stock awarded during 2015. Of the 45,023 restricted common shares, 12,552 will vest one year from the date of the award and 11,939 will vest 20% per year from the date of the award. The remaining 20,532 are considered performance based awards. The awards can be earned based upon the stock performance of the Company’s common stock in relationship to the common stock of the Company’s peer group. The number of shares can be adjusted by up to 150% of the award if outstanding performance is reached or can be forfeited if minimum performance is not reached. The awards vest one year and a day after the two year performance period or January 1, 2018. The weighted average contractual term over which the restricted stock will vest is 1.64 years. There were 24,830 shares of restricted stock awarded during 2014. Of the 24,830 restricted common shares, 13,560 will vest one year from the date of the award and 11,270 will vest 20% per year from the date of the award. The weighted average contractual term over which the restricted stock will vest is 1.22 years. Restricted Stock Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 32,838 $ 8.31 Awarded 45,023 $ 9.49 Vested (20,344 ) $ 8.36 Cancelled Nonvested at December 31, 2015 57,517 $ 9.21 The shares awarded to employees and directors under the restricted stock agreements vest on applicable vesting dates only to the extent the recipient of the shares is then an employee or a director of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on the date his or her employment or service is terminated. New shares are issued upon vesting of the restricted common stock.

14. REGULATORY MATTERS

14. REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2015
Regulatory Capital Requirements [Abstract]
REGULATORY MATTERS	Dividends Upon declaration by the Board of Directors of the Company, all shareholders of record will be entitled to receive dividends. There is no assurance, however, that any dividends will be paid in the future since they are subject to regulatory restrictions, and dependent upon earnings, financial condition and capital requirements of the Company and its subsidiaries. There were no cash dividends declared or paid in 2015, 2014 or 2013. As a California corporation, the Company’s ability to pay cash dividends is subject to restrictions set forth in the California General Corporation Law (the “Corporation Law”). The Corporation Law provides that neither a corporation nor any of its subsidiaries shall make a distribution to the corporation’s shareholders unless the board of directors has determined in good faith either of the following: (1) the amount of retained earnings of the corporation immediately prior to the distribution equals or exceeds the sum of (A) the amount of the proposed distribution plus (B) the preferential dividends arrears amount; or (2) immediately after the distribution, the value of the corporation’s assets would equal or exceed the sum of its total liabilities plus the preferential rights amount. The good faith determination of the board of directors may be based upon (1) financial statements prepared on the basis of reasonable accounting practices and principles, (2) a fair valuation, or (3) any other method reasonable under the circumstances; provided, that a distribution may not be made if the corporation or subsidiary making the distribution is, or is likely to be, unable to meet its liabilities (except those whose payment is otherwise adequately provided for) as they mature. The term “preferential dividends arrears amount” means the amount, if any, of cumulative dividends in arrears on all shares having a preference with respect to payment of dividends over the class or series to which the applicable distribution is being made, provided that if the articles of incorporation provide that a distribution can be made without regard to preferential dividends arrears amount, then the preferential dividends arrears amount shall be zero. The term “preferential rights amount” means the amount that would be needed if the corporation were to be dissolved at the time of the distribution to satisfy the preferential rights, including accrued but unpaid dividends, of other shareholders upon dissolution that are superior to the rights of the shareholders receiving the distribution, provided that if the articles of incorporation provide that a distribution can be made without regard to any preferential rights, then the preferential rights amount shall be zero. In addition, the California Financial Code restricts the total dividend payment of any state banking corporation in any calendar year to the lesser of (1) the bank’s retained earnings or (2) the bank’s net income for its last three fiscal years, less distributions made to shareholders during the same three-year period. In addition, subject to prior regulatory approval, any state banking corporation may request an exception to this restriction. Regulatory Capital The Company and ARB are subject to certain regulatory capital requirements administered by the Board of Governors of the Federal Reserve System and the FDIC. Failure to meet these minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and American River Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. As of December 31, 2015 and 2014, the most recent regulatory notification categorized American River Bank as well capitalized under the regulatory framework for prompt corrective action plan. There are no conditions or events since that notification that management believes have changed the Bank’s categories. Effective January 1, 2015, bank holding companies with consolidated assets of $1 Billion or more and banks like American River Bank must comply with new minimum capital ratio requirements to be phased-in between January 1, 2015 and January 1, 2019, which would consist of the following: (i) a new common equity Tier 1 capital to total risk weighted assets ratio of 4.5%; (ii) a Tier 1 capital to total risk weighted assets ratio of 6% (increased from 4%); (iii) a total capital to total risk weighted assets ratio of 8% (unchanged from current rules); and (iv) a Tier 1 capital to adjusted average total assets (“leverage”) ratio of 4%. In addition, a “capital conservation buffer,” is established which when fully phased-in will require maintenance of a minimum of 2.5% of common equity Tier 1 capital to total risk weighted assets in excess of the regulatory minimum capital ratio requirements described above. The 2.5% buffer will increase the minimum capital ratios to (i) a common equity Tier 1 capital ratio of 7.0%, (ii) a Tier 1 capital ratio of 8.5%, and (iii) a total capital ratio of 10.5%. The new buffer requirement will be phased-in between January 1, 2016 and January 1, 2019. If the capital ratio levels of a banking organization fall below the capital conservation buffer amount, the organization will be subject to limitations on (i) the payment of dividends; (ii) discretionary bonus payments; (iii) discretionary payments under Tier 1 instruments; and (iv) engaging in share repurchases. To be categorized as well capitalized, ARB must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. Management believes that the Company and ARB met all their capital adequacy requirements as of December 31, 2015 and 2014. December 31, 2015 2014 Amount Ratio Amount Ratio (Dollars in thousands) Leverage Ratio American River Bankshares and Subsidiaries $ 67,651 11.0 % $ 69,955 11.6 % Minimum regulatory requirement $ 24,673 4.0 % $ 24,112 4.0 % American River Bank $ 68,079 11.0 % $ 70,216 11.7 % Minimum requirement for “Well-Capitalized” institution $ 30,826 5.0 % $ 30,125 5.0 % Minimum regulatory requirement $ 24,661 4.0 % $ 24,100 4.0 % Common Equity Tier 1 Risk-Based Capital Ratio American River Bank $ 68,079 19.1 % N/A Minimum requirement for “Well-Capitalized” institution $ 23,237 6.5 % N/A Minimum regulatory requirement $ 16,065 4.5 % N/A Tier 1 Risk-Based Capital Ratio American River Bankshares and Subsidiaries $ 67,651 19.3 % $ 69,955 21.6 % Minimum regulatory requirement $ 20,988 6.0 % $ 12,957 4.0 % American River Bank $ 68,079 19.1 % $ 70,216 21.7 % Minimum requirement for “Well-Capitalized” institution $ 28,559 8.0 % $ 19,419 6.0 % Minimum regulatory requirement $ 21,420 6.0 % $ 12,946 4.0 % Total Risk-Based Capital Ratio American River Bankshares and Subsidiaries $ 72,031 20.6 % $ 74,020 22.9 % Minimum regulatory requirement $ 27,984 8.0 % $ 26,014 8.0 % American River Bank $ 72,548 20.3 % $ 74,277 22.9 % Minimum requirement for “Well-Capitalized” institution $ 35,750 10.0 % $ 32,490 10.0 % Minimum regulatory requirement $ 28,559 8.0 % $ 25,992 8.0 %

15. OTHER NONINTEREST INCOME AN

15. OTHER NONINTEREST INCOME AND EXPENSE	12 Months Ended
	Dec. 31, 2015
Other Income and Expenses [Abstract]
OTHER NONINTEREST INCOME AND EXPENSE	Other noninterest income consisted of the following (dollars in thousands): Year Ended December 31, 2015 2014 2013 Merchant fee income $ 378 $ 413 $ 443 Increase in cash surrender value of life insurance policies (Note 16) 316 284 247 Other 237 345 383 $ 931 $ 1,042 $ 1,073 Other noninterest expense consisted of the following (dollars in thousands): Year Ended December 31, 2015 2014 2013 Professional fees $ 863 $ 1,182 $ 933 Outsourced item processing 360 355 357 Directors’ expense 402 394 348 Telephone and postage 368 357 329 Stationery and supplies 143 193 240 Advertising and promotion 164 160 284 Other operating expenses 662 736 596 $ 2,962 $ 3,377 $ 3,087

16. EMPLOYEE BENEFIT PLANS

16. EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	American River Bankshares 401(k) Plan The American River Bankshares 401(k) Plan has been in place since January 1, 1993 and is available to all employees. Under the plan, the Company will match 100% of each participant’s contribution up to 3% of annual compensation plus 50% of the next 2% of annual compensation. Employer Safe Harbor matching contributions are 100% vested upon entering the plan. The Company’s contributions totaled $202,000, $178,000 and $181,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Employee Stock Purchase Plan The Company contracts with an administrator for an Employee Stock Purchase Plan which allows employees to purchase the Company’s stock at fair market value as of the date of purchase. The Company bears all costs of administering the Plan, including broker’s fees, commissions, postage and other costs actually incurred. American River Bankshares Deferred Compensation Plan The Company has established a Deferred Compensation Plan for certain members of the management team and a Deferred Fee Agreement for Non-Employee Directors for the purpose of providing the opportunity for participants to defer compensation. Participants of the management team, who are selected by a committee designated by the Board of Directors, may elect to defer annually a minimum of $5,000 or a maximum of eighty percent of their base salary and all of their cash bonus. Directors may also elect to defer up to one hundred percent of their monthly fees. The Company bears all administration costs and accrues interest on the participants’ deferred balances at a rate based on U.S. Government Treasury rates plus 4.0%. This rate was 5.65% at December 31, 2015. Deferred compensation, including interest earned, totaled $2,837,000 and $2,690,000 at December 31, 2015 and 2014, respectively. The expense recognized under this plan totaled $156,000, $150,000 and $117,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Salary Continuation Plan The Company has agreements to provide certain current executives, or their designated beneficiaries, with annual benefits for up to 15 years after retirement or death. These benefits are substantially equivalent to those available under life insurance policies purchased by the Company on the lives of the executives. The Company accrues for these future benefits from the effective date of the agreements until the executives’ expected final payment dates in a systematic and rational manner. As of December 31, 2015 and 2014, the Company had accrued $1,252,000 and $1,179,000, respectively, for potential benefits payable. This payable approximates the then present value of the benefits expected to be provided at retirement and is included in accrued interest payable and other liabilities on the consolidated balance sheet. The expense recognized under this plan totaled $168,000, $142,000 and $170,000 for the years ended December 31, 2015, 2014 and 2013, respectively. In connection with these plans, the Company invested in single premium life insurance policies with cash surrender values totaling $14,483,000 and $14,167,000 at December 31, 2015 and 2014, respectively. On the consolidated balance sheet, the cash surrender value of life insurance policies is included in accrued interest receivable and other assets. Tax-exempt income on these policies, net of expense, totaled approximately $316,000, $383,000 and $365,000 for the years ended December 31, 2015, 2014 and 2013, respectively. In 2014 and 2013, $99,000 and $118,000, respectively, of this tax-exempt income was from the death benefit proceeds of life insurance policies on former employees or directors.

17. RELATED PARTY TRANSACTIONS

17. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	During the normal course of business, the Company enters into transactions with related parties, including Directors and affiliates. The following is a summary of the aggregate activity involving related party borrowers during 2015 (dollars in thousands): Balance, January 1, 2015 $ 3,821 Disbursements — Amounts repaid (789 ) Balance, December 31, 2015 $ 3,032 There are no undisbursed commitments to related parties as of December 31, 2014. The Company also leases one of its branch facilities from a current member of the Company’s Board of Directors. Rental payments to the Director totaled $108,000, $107,000 and $105,000 for the years ended December 31, 2015, 2014 and 2013, respectively.

18. PARENT ONLY CONDENSED FINAN

18. PARENT ONLY CONDENSED FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
PARENT ONLY CONDENSED FINANCIAL STATEMENTS	CONDENSED BALANCE SHEETS December 31, 2015 and 2014 (Dollars in thousands) 2015 2014 ASSETS Cash and due from banks $ 191 $ 378 Investment in subsidiaries 86,503 89,908 Other assets 333 277 $ 87,027 $ 90,563 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Other liabilities $ 952 $ 916 Total liabilities 952 916 Shareholders’ equity: Common stock 49,554 57,126 Retained earnings 34,418 29,150 Accumulated other comprehensive income, net of taxes 2,103 3,371 Total shareholders’ equity 86,075 89,647 $ 87,027 $ 90,563 CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2015, 2014 and 2013 (Dollars in thousands) 2015 2014 2013 Income: Dividends declared by subsidiaries – eliminated in consolidation $ 7,900 $ 4,250 $ 6,000 Management fee from subsidiaries – eliminated in consolidation — — — Other income — — — Total income 7,900 4,250 6,000 Expenses: Professional fees 97 89 91 Directors’ expense 285 280 247 Other expenses 204 212 205 Total expenses 586 581 543 Income before equity in undistributed income of subsidiaries 7,314 3,669 5,457 Equity in (distributed) undistributed income of subsidiaries (2,287 ) 453 (2,623 ) Income before income taxes 5,027 4,122 2,834 Income tax benefit 241 239 223 Net income $ 5,268 $ 4,361 $ 3,057 CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2015, 2014 and 2013 (Dollars in thousands) 2015 2014 2013 Cash flows from operating activities: Net income $ 5,268 $ 4,361 $ 3,057 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Distributed (undistributed) earnings of subsidiaries 2,287 (453 ) 2,623 Equity-based compensation expense 271 166 131 (Increase) decrease in other assets (206 ) (44 ) 1,004 Increase (decrease) in other liabilities 36 80 (60 ) Net cash provided by operating activities 7,656 4,110 6,755 Cash flows from investing activities: Purchase of equipment — — — Sale of equipment — — — Net cash provided by investing activities — — — Cash flows from financing activities: Cash paid to repurchase common stock (7,843 ) (4,148 ) (7,000 ) Net cash used in financing activities (7,843 ) (4,148 ) (7,000 ) Net decrease in cash and cash equivalents (187 ) (38 ) (245 ) Cash and cash equivalents at beginning of year 378 416 661 Cash and cash equivalents at end of year $ 191 $ 378 $ 416 Selected Quarterly Information (Unaudited) (In thousands, except per share and price range of common stock) March 31, June 30, September 30, December 31, 2015 Interest income $ 4,902 $ 5,283 $ 5,458 $ 5,325 Net interest income 4,654 5,039 5,218 5,096 Provision for loan and lease losses — — — — Noninterest income 585 507 490 433 Noninterest expense 3,813 3,415 3,432 3,420 Income before taxes 1,426 2,131 2,276 2,109 Net income 956 1,386 1,469 1,457 Basic earnings per share $ .12 $ .18 $ .20 $ .20 Diluted earnings per share .12 .18 .20 .20 Cash dividends per share — — — — Price range, common stock $ 9.23-9.98 $ 9.10-9.95 $ 9.15-10.35 $ 9.40-11.19 2014 Interest income $ 4,996 $ 5,067 $ 4,966 $ 4,936 Net interest income 4,692 4,776 4,679 4,650 Provision for loan and lease losses — — (200 ) (341 ) Noninterest income 502 508 520 647 Noninterest expense 3,653 3,699 3,662 3,848 Income before taxes 1,541 1,585 1,737 1,790 Net income 1,006 1,035 1,124 1,196 Basic earnings per share $ .12 $ .13 $ .14 $ .15 Diluted earnings per share .12 .13 .14 .15 Cash dividends per share — — — — Price range, common stock $ 8.92-10.29 $ 8.21-9.75 $ 8.42-9.63 $ 9.05-9.99

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
General	The accounting and reporting policies of the Company and its subsidiaries conform with accounting principles generally accepted in the United States of America and prevailing practices within the financial services industry.
Reclassifications	Certain reclassifications have been made to prior years’ balances to conform to classifications used in 2015. Reclassifications had no effect on prior year net income or shareholders’ equity.
Principles of Consolidation	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and accounts among the Company and its subsidiaries have been eliminated in consolidation.
Use of Estimates	The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Cash and Cash Equivalents	For the purpose of the statement of cash flows, cash and due from banks and Federal funds sold are considered to be cash equivalents. Generally, Federal funds are sold for one-day periods.
Interest-Bearing Deposits in Banks	Interest-bearing deposits in banks mature within one year and are carried at cost.
Investment Securities	Investments are classified into the following categories: · Available-for-sale securities, reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of taxes, as accumulated other comprehensive income (loss) within shareholders’ equity. · Held-to-maturity securities, which management has the positive intent and ability to hold to maturity, reported at amortized cost, adjusted for the accretion of discounts and amortization of premiums. Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. There were no transfers during the years ended December 31, 2015 and 2014. Gains or losses on the sale of investment securities are computed on the specific identification method. Interest earned on investment securities is reported in interest income, net of applicable adjustments for accretion of discounts and amortization of premiums. An investment security is impaired when its carrying value is greater than its fair value. Investment securities that are impaired are evaluated on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in their value is other than temporary. Management utilizes criteria such as the magnitude and duration of the decline and the intent and ability of the Company to retain its investment in the securities for a period of time sufficient to allow for an anticipated recovery in fair value, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary. The term “other than temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. For debt securities, once a decline in value is determined to be other than temporary and management does not intend to sell the security or it is more likely than not that management will not be required to sell the security before recovery, only the portion of the impairment loss representing credit exposure is recognized as a charge to earnings, with the balance recognized as a charge to other comprehensive income. If management intends to sell the security or it is more likely than not that management will be required to sell the security before recovering its forecasted cost, the entire impairment loss is recognized as a charge to earnings. For equity securities, the entire amount of impairment is recognized through earnings.
Federal Home Loan Bank Stock	Investments in Federal Home Loan Bank of San Francisco (the “FHLB”) stock are carried at cost and are redeemable at par with certain restrictions. Investments in FHLB stock are necessary to participate in FHLB programs.
Loans and Leases	Loans and leases that management has both the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal amounts outstanding, adjusted for unearned income, deferred loan origination fees and costs, purchase premiums and discounts, write-downs and the allowance for loan and lease losses. Loan and lease origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized as an adjustment to the yield of the related loans and leases. For all classes of loans and leases, the accrual of interest is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to meet payment requirements within an acceptable time frame relative to the terms stated in the loan agreement. Upon such discontinuance, all unpaid accrued interest is reversed against current income unless the loan or lease is well secured and in the process of collection. Interest received on nonaccrual loans and leases is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans and leases are restored to accrual status when the obligation is brought current and has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Direct financing leases are carried net of unearned income. Income from leases is recognized by a method that approximates a level yield on the outstanding net investment in the lease.
Loan Sales and Servicing	Included in the loan and lease portfolio are Small Business Administration (“SBA”) loans and Farm Service Agency guaranteed loans that may be sold in the secondary market. At the time the loan is sold, the related right to service the loan is either retained, with the Company earning future servicing income, or released in exchange for a one-time servicing-released premium. Loans subsequently transferred to the loan portfolio are transferred at the lower of cost or fair value at the date of transfer. Any difference between the carrying amount of the loan and its outstanding principal balance is recognized as an adjustment to yield by the interest method. There were no loans held for sale at December 31, 2015 and 2014. SBA and Farm Service Agency loans with unpaid balances of $202,000 and $233,000 were being serviced for others as of December 31, 2015 and 2014, respectively. The Company also serviced loans that are participated with other financial institutions totaling $7,942,000 and $8,136,000 as of December 31, 2015 and 2014, respectively. Servicing rights acquired through 1) a purchase or 2) the origination of loans which are sold or securitized with servicing rights retained are recognized as separate assets or liabilities. Servicing assets or liabilities are initially recorded at fair value and are subsequently amortized in proportion to and over the period of the related net servicing income or expense. Servicing assets are periodically evaluated for impairment. Servicing assets were not considered material for disclosure purposes at December 31, 2015 and 2014.
Allowance for Loan and Lease Losses	The allowance for loan and lease losses is an estimate of probable credit losses inherent in the Company’s credit portfolio that have been incurred as of the balance-sheet date. The allowance is established through a provision for loan and lease losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is typically recorded as a recovery to the allowance. The overall allowance consists of two primary components, specific reserves related to impaired credits and general reserves for inherent probable losses related to credits that are not impaired. For all classes of the portfolio, a loan or lease is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principle and interest payments when due. Impaired loans are individually evaluated to determine the extent of impairment, if any, except for smaller-balance loans that are collectively evaluated for credit risk. When a loan or lease is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the credit’s original interest rate, except that as a practical expedient, it may measure impairment based on a credit’s observable market price, or the fair value of the collateral if the credit is collateral dependent. A loan or lease is collateral dependent if the repayment of the credit is expected to be provided solely by the sale or operation of the underlying collateral. For all portfolio segments, a restructuring of a debt constitutes a troubled debt restructuring (“TDR”) if the Company grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. Restructured workout loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. Loans or leases that are reported as TDRs are considered impaired and measured for impairment as described above. For all portfolio segments, the determination of the general reserve for loans and leases that are not impaired is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, and qualitative factors to include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the credit portfolio, and probable losses inherent in the portfolio taken as a whole. During the fourth quarter of 2015, the Company made a specific enhancement to its methodology for determining the general reserve component of the ALLL. The enhancement related specifically to the methodology used to calculate the qualitative factors with respect to non-impaired loans graded watch, special mention and substandard by eliminating the use of multipliers. The ALLL methodology was also revised to add an additional qualitative factor, by loan grade, in calculating the general reserve component of the ALLL. Management believes that the allocation of the ALLL to each loan risk grade, within each loan type has become more precise under the methodology enhancement. The implementation of the ALLL model revision did not have a material impact on the calculation of the required allowance for loan losses as of December 31, 2015. The Company determines a separate allowance for each portfolio segment. These portfolio segments include commercial, real estate construction (including land and development loans), residential real estate, multi-family real estate, commercial real estate, leases, agriculture, and consumer loans. The allowance for loan and lease losses attributable to each portfolio segment, which includes both impaired credits and credits that are not impaired, is combined to determine the Company’s overall allowance, which is included as a component of loans and leases on the consolidated balance sheet and available for all loss exposures. The Company assigns a risk rating to all loans and periodically performs detailed reviews of all such loans over a certain threshold to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by independent specialists engaged by the Company and the Company’s regulators. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans. These credit quality indicators are used to assign a risk rating to each individual credit. The risk ratings can be grouped into six major categories, defined as follows: Pass Watch Special Mention Substandard Doubtful Loss The general reserve component of the allowance for loan and lease losses also consists of reserve factors that are based on management’s assessment of the following for each portfolio segment: (1) inherent credit risk, (2) historical losses and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below. Real Estate- Commercial Real Estate- Construction Real Estate- Multi-family Real Estate- Residential Commercial Lease Financing Receivable – Agricultural Consumer Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s primary regulators, the FDIC and the California Department of Business Oversight, as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations.
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures	The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates probable incurred losses using historical data and utilization assumptions. The allowance for off-balance-sheet commitments is included in accrued interest payable and other liabilities on the consolidated balance sheet.
Other Real Estate Owned (OREO)	Other real estate owned includes real estate acquired in full or partial settlement of loan obligations. When property is acquired, any excess of the recorded investment in the loan balance and accrued interest income over the estimated fair market value of the property less estimated selling costs is charged against the allowance for loan and lease losses. A valuation allowance for losses on other real estate may be maintained to provide for temporary declines in value. The valuation allowance is established through a provision for losses on other real estate which is included in other expenses. Subsequent gains or losses on sales or writedowns resulting from permanent impairments are recorded in other income or expense as incurred. During 2015, the Company received $1,153,000 in net proceeds from the sale of other real estate owned with net losses of $1,000 recognized on the sale. During 2014, the Company received $2,283,000 in net proceeds from the sale of other real estate owned with net gains of $231,000 recognized on the sale. The recorded investment in other real estate owned totaled $3,551,000 and $4,647,000 at December 31, 2015 and 2014, respectively, and had related valuation allowances of zero and $156,000, respectively.
Premises and Equipment	Premises and equipment are carried at cost less accumulated depreciation. Land is not depreciated. Depreciation is determined using the straight-line method over the estimated useful lives of the related assets. The useful life of the building and improvements is forty years. The useful lives of furniture, fixtures and equipment are estimated to be three to ten years. Leasehold improvements are amortized over the life of the asset or the term of the related lease, whichever is shorter. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred. Impairment of long-lived assets is evaluated by management based upon an event or changes in circumstances surrounding the underlying assets which indicate long-lived assets may be impaired.
Goodwill and Intangible Assets	Business combinations involving the Company’s acquisition of equity interests or net assets of another enterprise or the assumption of net liabilities in an acquisition of branches constituting a business may give rise to goodwill. Goodwill represents the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. The value of goodwill is ultimately derived from the Company’s ability to generate net earnings after the acquisition and is not deductible for tax purposes. A decline in net earnings could be indicative of a decline in the fair value of goodwill and result in impairment. For that reason, goodwill is assessed for impairment at least annually. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2015, the Company had one reporting unit and that reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.
Bank-Owned Life Insurance	The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Income Taxes	The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense represents each entity’s proportionate share of the consolidated provision for income taxes. The Company accounts for income taxes using the balance sheet method, under which deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The deferred provision for income taxes is the result of the net change in the deferred tax asset and deferred tax liability balances during the year. This amount combined with the current taxes payable or refundable, results in the income tax expense for the current year. On the consolidated balance sheet, net deferred tax assets are included in accrued interest receivable and other assets. The realization of deferred income tax assets is assessed and a valuation allowance is recorded if it is “more likely than not” that all or a portion of the deferred tax assets will not be realized. “More likely than not” is defined as greater than a 50% chance. All available evidence, both positive and negative is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. Based upon the Company’s analysis of available evidence, the Company determined that it is “more likely than not” that all of the deferred income tax assets as of December 31, 2015 and 2014 will be fully realized and therefore no valuation allowance was recorded. The Company uses a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Interest expense and penalties associated with unrecognized tax benefits, if any, are classified as income tax expense in the consolidated statement of income.
Comprehensive Income	Comprehensive income is reported in addition to net income for all periods presented. Comprehensive income consists of net income and other comprehensive income. Unrealized gains and losses on the Company’s available-for-sale investment securities are included in other comprehensive income (loss), adjusted for realized gains or losses included in net income. Total comprehensive income and the components of accumulated other comprehensive income (loss) are presented in the consolidated statements of comprehensive income.
Earnings Per Share	Basic earnings per share (“EPS”), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock that share in the earnings of the Company. The treasury stock method has been applied to determine the dilutive effect of stock options and restricted stock in computing diluted EPS. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the consolidated financial statements. There were no stock splits or stock dividends in 2015, 2014 or 2013.
Stock-Based Compensation	At December 31, 2015, the Company had two stock-based compensation plans, which are described more fully in Note 13. Compensation expense, net of related tax benefits, recorded in 2015, 2014 and 2013 totaled $176,000, $107,000 and $84,000, or $0.02, $0.01 and $0.01 per diluted share, respectively. Compensation expense is recognized over the vesting period on a straight line accounting basis. The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton based option valuation model that uses the assumptions noted in the following table. Because Black-Scholes-Merton based option valuation models incorporate ranges of assumptions for inputs, those ranges are disclosed. Expected volatilities are based on historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate the dividend yield, option life and forfeiture rate within the valuation model. The expected option life represents the period of time that options granted are expected to be outstanding. The risk-free rate for the period representing the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. 2015 2014 Dividend yield 0.0 % 0.0 % Expected volatility 28.1 % 20.7 % Risk-free interest rate 1.92 % 2.10 % Expected option life in years 7 7 Weighted average fair value of options granted during the year $ 3.24 $ 2.44 There were no options granted in 2013 under either stock-based compensation plans. Restricted stock awards are grants of shares of the Company’s common stock that are subject to forfeiture until specific conditions or goals are met. Conditions may be based on continuing employment or service and/or achieving specified performance goals. During the period of restriction, Plan participants holding restricted share awards have voting and cash dividend rights. The restrictions lapse in accordance with a schedule or with other conditions determined by the Board of Directors as reflected in each award agreement. Upon the vesting of each restricted stock award, the Company issues the associated common shares from its inventory of authorized common shares. All outstanding awards under the Plan immediately vest in the event of a change of control of the Company. The shares associated with any awards that fail to vest become available for re-issuance under the Plan. The following is a summary of stock-based compensation information as of or for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 (Dollars in thousands) Total intrinsic value of options exercised $ — $ — $ — Aggregate cash received for option exercises $ — $ — $ — Total fair value of options vested $ 24 $ 14 $ 40 Total compensation cost, options and restricted stock $ 271 $ 166 $ 131 Tax benefit recognized $ 94 $ 59 $ 47 Net compensation cost, options and restricted stock $ 176 $ 107 $ 84 Total compensation cost for nonvested option awards not yet recognized $ 165 $ 104 $ 38 Weighted average years for compensation cost for nonvested options to be recognized 2.0 2.1 1.1 Total compensation cost for restricted stock not yet recognized $ 530 $ 273 $ 173 Weighted average years for compensation cost for restricted stock to be recognized 1.6 1.2 1.0
Operating Segments	While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.
Recently Issued Financial Accounting Pronouncements	Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure-- (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments in this Update were effective for annual reporting periods beginning after December 15, 2014, including interim periods within that reporting period. The effects of adopting this Update did not have a material effect on the Company’s consolidated financial position, results of operations or cash flows. Revenue from Contracts with Customers (Topic 606)-- Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10)--

2. SUMMARY OF SIGNIFICANT ACC27

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of share-based payment award, stock options, valuation assumptions	2015 2014 Dividend yield 0.0 % 0.0 % Expected volatility 28.1 % 20.7 % Risk-free interest rate 1.92 % 2.10 % Expected option life in years 7 7 Weighted average fair value of options granted during the year $ 3.24 $ 2.44
Schedule of summary of stock-based compensation information	2015 2014 2013 (Dollars in thousands) Total intrinsic value of options exercised $ — $ — $ — Aggregate cash received for option exercises $ — $ — $ — Total fair value of options vested $ 24 $ 14 $ 40 Total compensation cost, options and restricted stock $ 271 $ 166 $ 131 Tax benefit recognized $ 94 $ 59 $ 47 Net compensation cost, options and restricted stock $ 176 $ 107 $ 84 Total compensation cost for nonvested option awards not yet recognized $ 165 $ 104 $ 38 Weighted average years for compensation cost for nonvested options to be recognized 2.0 2.1 1.1 Total compensation cost for restricted stock not yet recognized $ 530 $ 273 $ 173 Weighted average years for compensation cost for restricted stock to be recognized 1.6 1.2 1.0

3. FAIR VALUE MEASUREMENTS (Tab

3. FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of detailing carrying and fair values of financial instruments	Carrying Fair Value Measurements Using: December 31, 2015 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 23,727 $ 23,727 $ — $ — $ 23,727 Interest-bearing deposits in banks 750 — 752 — 752 Available-for-sale securities 273,819 24 273,795 — 273,819 Held-to-maturity securities 623 — 669 — 689 FHLB stock 3,779 N/A N/A N/A N/A Loans and leases, net 289,102 — — 292,444 292,444 Accrued interest receivable 1,885 — 1,077 808 1,885 Financial liabilities: Deposits: Noninterest-bearing $ 190,548 $ 190,548 $ — $ — $ 190,548 Savings 59,061 59,061 — — 59,061 Money market 135,186 135,186 — — 135,186 NOW accounts 61,324 61,324 — — 61,324 Time Deposits 84,571 — 85,165 — 85,165 Short-term borrowings 3,500 3,500 — — 3,500 Long-term borrowings 7,500 — 7,502 — 7,502 Accrued interest payable 60 — 60 — 60 Carrying Fair Value Measurements Using: December 31, 2014 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 22,449 $ 22,449 $ — $ — $ 22,449 Interest-bearing deposits in banks 1,000 — 1,002 — 1,002 Available-for-sale securities 289,064 28 289,036 — 289,064 Held-to-maturity securities 862 — 922 — 922 FHLB stock 3,686 N/A N/A N/A N/A Loans and leases, net 258,057 — — 261,421 261,421 Accrued interest receivable 1,858 — 1,150 708 1,858 Financial liabilities: Deposits: Noninterest-bearing $ 155,698 $ 155,698 $ — $ — $ 155,698 Savings 58,820 58,820 — — 58,820 Money market 147,625 147,625 — — 147,625 NOW accounts 60,862 60,862 — — 60,862 Time, $100,000 or more 87,688 — 88,485 — 88,485 Short-term borrowings 3,500 3,500 — — 3,500 Long-term borrowings 7,500 — 7,567 — 7,567 Accrued interest payable 59 — 59 — 59
Schedule of assets and liabilities measured at fair value on a recurring and non-recurring basis	(Dollars in thousands) Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Gains December 31, 2015 Fair Value (Level 1) (Level 2) (Level 3) (Losses) Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 246,185 $ — $ 246,185 $ — $ — Corporate Debt Securities 1,551 — 1,551 — — Obligations of states and political subdivisions 26,013 — 26,013 — — Corporate stock 70 24 46 — — Total recurring $ 273,819 $ 24 $ 273,795 $ — $ — in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Gains December 31, 2015 Fair Value (Level 1) (Level 2) (Level 3) (Losses) Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial 3,900 — — 3,900 (334 ) Other real estate owned: Commercial 2,522 — — 2,522 — Land 1,029 — — 1,029 — Total nonrecurring $ 7,451 $ — $ — $ 7,451 $ (334 ) (Dollars in thousands) Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Total Gains December 31, 2014 Fair Value (Level 1) (Level 2) (Level 3) (Losses) Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 261,115 $ — $ 261,115 $ — $ — Corporate Debt Securities 1,583 — 1,583 — — Obligations of states and political subdivisions 26,289 — 26,289 — — Corporate stock 77 28 49 — — Total recurring $ 289,064 $ 28 $ 289,036 $ — $ — Assets and liabilities measured on a nonrecurring basis: Impaired loans: Commercial $ 666 $ — $ — $ 666 $ 14 Real estate: Commercial 286 — — 286 — Other real estate owned: Commercial 243 — — 243 — Land 2,252 — — 2,252 (60 ) Total nonrecurring $ 3,447 $ — $ — $ 3,447 $ (46 )

5. INVESTMENT SECURITIES (Table

5. INVESTMENT SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of available for sale securities	Available-for-Sale 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Agencies $ 244,056 $ 3,059 $ (930 ) $ 246,185 Obligations of states and political subdivisions 24,706 1,307 — 26,013 Corporate Debt Securities 1,502 49 — 1,551 Equity securities: Corporate stock 51 19 — 70 $ 270,315 $ 4,434 $ (930 ) $ 273,819 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Agencies $ 257,002 $ 4,715 $ (602 ) $ 261,115 Obligations of states and political subdivisions 24,886 1,423 (20 ) 26,289 Corporate Debt Securities 1,504 79 — 1,583 Equity securities: Corporate stock 54 23 — 77 $ 283,446 $ 6,240 $ (622 ) $ 289,064
Schedule of held to maturity securities	Held-to-Maturity 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Agencies $ 623 $ 46 $ — $ 669 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Agencies $ 862 $ 60 $ — $ 922
Schedule of amortized cost and estimated fair values of investment securities by contractual maturity	Available-for-Sale Held-to-Maturity Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value Within one year $ 490 $ 494 After one year through five years 5,140 5,298 After five years through ten years 14,621 15,542 After ten years 5,957 6,230 Investment securities not due at a single maturity date: U.S. Government Agencies and Sponsored Agencies 244,056 246,185 $ 623 $ 669 Corporate stock 51 70 — — $ 270,315 $ 273,819 $ 623 $ 669
Schedule of investment securities with unrealized losses	2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Agencies $ 93,265 $ (813 ) $ 5,251 $ (117 ) $ 98,516 $ (930 ) Obligations of states and political subdivisions — — — — — — $ 93,265 $ (813 ) $ 5,251 $ (117 ) $ 98,516 $ (930 ) 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Agencies $ 57,145 $ (503 ) $ 10,006 $ (99 ) $ 67,151 $ (602 ) Obligations of states and political subdivisions — — 649 (20 ) 649 (20 ) $ 57,145 $ (503 ) $ 10,655 $ (119 ) $ 67,800 $ (622 )

6. LOANS AND LEASES (Tables)

6. LOANS AND LEASES (Tables)	12 Months Ended
	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of accounts, notes, loans and financing receivable	December 31, 2015 2014 Real estate – commercial $ 199,591 $ 193,871 Real estate – construction 14,533 8,028 Real estate – multi-family 23,494 14,167 Real estate – residential 14,200 13,309 Commercial 36,195 25,186 Lease financing receivable 732 1,286 Agriculture 2,431 2,882 Consumer 3,122 4,916 294,298 263,645 Deferred loan and lease origination fees, net (221 ) (287 ) Allowance for loan and lease losses (4,975 ) (5,301 ) $ 289,102 $ 258,057
Schedule of future lease payments receivable	Year Ending December 31, 2016 $ 352 2017 211 2018 178 2019 33 2020 — Total lease payments receivable $ 774
Finance Leases Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of accounts, notes, loans and financing receivable	December 31, 2015 2014 Future lease payments receivable $ 774 $ 1,358 Residual interests — 13 Unearned income (42 ) (85 ) Net lease financing receivable $ 732 $ 1,286

7. ALLOWANCE FOR LOAN AND LEA31

7. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	12 Months Ended
	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Schedule of loan portfolio allocated by management's internal risk ratings	December 31, 2015 Credit Risk Profile by Internally Assigned Grade Real Estate Other Credit Exposure Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Total Grade: Pass $ 32,216 $ 172,755 $ 23,001 $ 6,371 $ 10,593 $ 732 $ 2,061 $ 2,136 $ 249,865 Watch 1,073 17,318 493 8,162 2,099 — 370 378 29,893 Special mention — 8,363 — — 697 — — 433 9,493 Substandard 2,906 1,155 — — 811 — — 175 5,047 Doubtful — — — — — — — — — Total $ 36,195 $ 199,591 $ 23,494 $ 14,533 $ 14,200 $ 732 $ 2,431 $ 3,122 $ 294,298 December 31, 2014 Credit Risk Profile by Internally Assigned Grade Real Estate Other Credit Exposure Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Total Grade: Pass $ 20,179 $ 163,091 $ 13,663 $ 3,327 $ 9,364 $ 1,286 $ 2,501 $ 3,424 $ 216,835 Watch 1,280 13,724 504 4,372 2,504 — — 1,041 23,425 Special mention 101 13,583 — 329 603 — 381 268 15,265 Substandard 3,626 3,473 — — 838 — — 183 8,120 Doubtful — — — — — — — — — Total $ 25,186 $ 193,871 $ 14,167 $ 8,028 $ 13,309 $ 1,286 $ 2,882 $ 4,916 $ 263,645
Schedule of an aging analysis of the loan portfolio	December 31, 2015 Past Due Past Due Greater Greater Than 30-59 Days 60-89 Days Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ — $ — $ 30 $ 30 $ 36,165 $ 36,195 $ — $ 30 Real estate: Commercial — 359 499 858 198,733 199,591 — 1,155 Multi-family — — — — 23,494 23,494 — — Construction — — — — 14,533 14,533 — — Residential — — 338 338 13,862 14,200 — 338 Other: Leases — — — — 732 732 — — Agriculture — — — — 2,431 2,431 — — Consumer 367 — — 367 2,755 3,122 — 120 Total $ 367 $ 359 $ 867 $ 1,593 $ 292,705 $ 294,298 $ — $ 1,643 December 31, 2014 Past Due Past Due Greater Greater Than 30-59 Days 60-89 Days Than Total Past 90 Days and Past Due Past Due 90 Days Due Current Total Loans Accruing Nonaccrual Commercial: Commercial $ 513 $ — $ 666 $ 1,179 $ 24,007 $ 25,186 $ — $ 666 Real estate: Commercial 507 — 507 1,014 192,857 193,871 — 507 Multi-family — — — — 14,167 14,167 — — Construction — — — — 8,028 8,028 — — Residential — — 338 338 12,971 13,309 — 338 Other: Leases — — — — 1,286 1,286 — — Agriculture — — — — 2,882 2,882 — — Consumer 135 — — 135 4,781 4,916 — 142 Total $ 1,155 $ — $ 1,511 $ 2,666 $ 260,979 $ 263,645 $ — $ 1,653
Schedule of information related to impaired loans	December 31, 2015 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Commercial 12,269 12,902 — 12,345 595 Residential 338 338 — 338 — Other: Consumer — — — — — $ 12,607 $ 13,240 $ — $ 12,683 $ 595 With an allowance recorded: Commercial $ 121 $ 121 $ 25 $ 99 $ 9 Real estate: Commercial 5,597 5,693 598 4,953 320 Multi-family 488 488 5 492 29 Residential 2,114 2,201 204 2,140 91 Other: Agriculture 370 370 38 375 18 Consumer 68 68 29 76 — $ 8,758 $ 8,941 $ 899 $ 8,135 $ 467 Total: Commercial $ 121 $ 121 $ 25 $ 99 $ 9 Real estate: Commercial 17,866 18,595 598 17,298 915 Multi-family 488 488 5 492 29 Residential 2,452 2,539 204 2,478 91 Other: Agriculture 370 370 38 375 18 Consumer 68 68 29 76 — $ 21,365 $ 22,181 $ 899 $ 20,818 $ 1,062 December 31, 2014 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ — $ — $ — $ — $ 3 Real estate: Commercial 10,684 10,882 — 10,512 518 Residential 338 338 — 340 7 Other: Consumer 37 37 — 37 2 $ 11,059 $ 11,257 $ — $ 10,889 $ 530 With an allowance recorded: Commercial $ 769 $ 769 $ 344 $ 758 $ 4 Real estate: Commercial 9,773 9,773 949 8,917 562 Multi-family 496 496 38 501 20 Residential 2,524 2,524 237 2,553 114 Other: Agriculture 381 381 13 386 21 Consumer 118 118 22 123 2 $ 14,061 $ 14,061 $ 1,603 $ 13,238 $ 723 Total: Commercial $ 769 $ 769 $ 344 $ 758 $ 7 Real estate: Commercial 20,457 20,655 949 19,429 1,080 Multi-family 496 496 38 501 20 Residential 2,862 2,862 237 2,893 121 Other: Agriculture 381 381 13 386 21 Consumer 155 155 22 160 4 $ 25,120 $ 25,318 $ 1,603 $ 24,127 $ 1,253 December 31, 2013 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial $ 577 $ 577 $ — $ 665 $ 11 Real estate: Commercial 10,921 11,119 — 11,614 11 Construction 248 248 — 256 — Other: Consumer 37 37 — 37 1 $ 11,783 $ 11,981 $ — $ 12,572 $ 23 With an allowance recorded: Commercial $ 1,159 $ 1,159 $ 392 $ 1,240 $ 10 Real estate: Commercial 8,998 8,998 792 9,008 196 Multi-family 1,650 1,743 108 1,665 39 Residential 3,316 3,316 276 3,354 70 Other: Consumer 128 128 30 136 1 $ 15,251 $ 15,344 $ 1,598 $ 15,403 $ 316 Total: Commercial $ 1,736 $ 1,736 $ 392 $ 1,905 $ 21 Real estate: Commercial 19,919 20,117 792 20,622 207 Multi-family 1,650 1,743 108 1,665 39 Construction 248 248 — 256 Residential 3,316 3,316 276 3,354 70 Other: Consumer 165 165 30 173 2 $ 27,034 $ 27,325 $ 1,598 $ 27,975 $ 339
Schedule of loans by class modified as troubled debt restructurings	The following table presents loans by class modified as troubled debt restructurings during the year ended December 31, 2015 (dollars in thousands): Pre- Post- Modification Modification Outstanding Outstanding Number Recorded Recorded of Loans Investment Investment Troubled debt restructurings: Commercial 1 $ 26 $ 26 Consumer 1 23 23 Real estate – residential 2 407 407 Real estate – commercial 1 644 644 Total 5 $ 1,100 $ 1,100 The following table presents loans by class modified as troubled debt restructurings during the year ended December 31, 2014 (dollars in thousands): Pre- Post- Modification Modification Outstanding Outstanding Number Recorded Recorded of Loans Investment Investment Troubled debt restructurings: Commercial 2 $ 50 $ 50 Real estate – commercial 8 5,787 5,787 Total 10 $ 5,837 $ 5,837
Activity In Lease Receivable Allowance For Losses [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Schedule of allowance for credit losses on financing receivables	December 31, 2015 Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance $ 1,430 $ 2,317 $ 130 $ 583 $ 399 $ 2 $ 62 $ 124 $ 254 $ 5,301 Provision for loan losses (84 ) — 98 230 (193 ) — 15 (42 ) (24 ) — Loans charged-off (609 ) — — — — (1 ) — (6 ) — (616 ) Recoveries 123 52 — — 113 — — 2 — 290 Ending balance allocated to portfolio segments $ 860 $ 2,369 $ 228 $ 813 $ 319 $ 1 $ 77 $ 78 $ 230 $ 4,975 Ending balance: Individually evaluated for impairment $ 25 $ 598 $ 5 $ — $ 204 $ — $ 38 $ 29 $ — $ 899 Ending balance: Collectively evaluated for impairment $ 835 $ 1,771 $ 223 $ 813 $ 115 $ 1 $ 39 $ 49 $ 230 $ 4,076 Loans Ending balance $ 36,195 $ 199,591 $ 23,494 $ 14,533 $ 14,200 $ 732 $ 2,431 $ 3,122 $ — $ 294,298 Ending balance: Individually evaluated for impairment $ 121 $ 17,866 $ 488 $ — $ 2,452 $ — $ 370 $ 68 $ — $ 21,365 Ending balance: Collectively evaluated for impairment $ 36,074 $ 181,725 $ 23,006 $ 14,533 $ 11,748 $ 732 $ 2,061 $ 3,054 $ — $ 272,933 December 31, 2014 Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance $ 885 $ 2,401 $ 242 $ 542 $ 825 $ 4 $ 80 $ 161 $ 206 $ 5,346 Provision for loan losses 289 (135 ) (205 ) 39 (443 ) (5 ) (18 ) (111 ) 48 (541 ) Loans charged-off — — — — — — — (76 ) — (76 ) Recoveries 256 51 93 2 17 3 — 150 — 572 Ending balance allocated to portfolio segments $ 1,430 $ 2,317 $ 130 $ 583 $ 399 $ 2 $ 62 $ 124 $ 254 $ 5,301 Ending balance: Individually evaluated for impairment $ 344 $ 949 $ 38 $ — $ 237 $ — $ 13 $ 22 $ — $ 1,603 Ending balance: Collectively evaluated for impairment $ 1,086 $ 1,368 $ 92 $ 583 $ 162 $ 2 $ 49 $ 102 $ 254 $ 3,698 Loans Ending balance $ 25,186 $ 193,871 $ 14,167 $ 8,028 $ 13,309 $ 1,286 $ 2,882 $ 4,916 $ — $ 263,645 Ending balance: Individually evaluated for impairment $ 769 $ 20,457 $ 496 $ — $ 2,862 $ — $ 381 $ 155 $ — $ 25,120 Ending balance: Collectively evaluated for impairment $ 24,417 $ 173,414 $ 13,671 $ 8,028 $ 10,447 $ 1,286 $ 2,501 $ 4,761 $ — $ 238,525 December 31, 2013 Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance $ 1,351 $ 2,526 $ 238 $ 594 $ 477 $ 3 $ 87 $ 262 $ 243 $ 5,781 Provision for loan losses (304 ) 327 4 (73 ) 363 2 (7 ) (75 ) (37 ) 200 Loans charged-off (377 ) (476 ) — — (58 ) (1 ) — (26 ) — (938 ) Recoveries 215 24 — 21 43 — — — — 303 Ending balance allocated to portfolio segments $ 885 $ 2,401 $ 242 $ 542 $ 825 $ 4 $ 80 $ 161 $ 206 $ 5,346 Ending balance: Individually evaluated for impairment $ 392 $ 792 $ 108 $ — $ 276 $ — $ — $ 30 $ — $ 1,598 Ending balance: Collectively evaluated for impairment $ 493 $ 1,609 $ 134 $ 542 $ 549 $ 4 $ 80 $ 131 $ 206 $ 3,748 Loans Ending balance $ 24,545 $ 184,204 $ 11,085 $ 9,633 $ 17,703 $ 1,344 $ 3,120 $ 5,772 $ — $ 257,406 Ending balance: Individually evaluated for impairment $ 1,736 $ 19,919 $ 1,650 $ 248 $ 3,316 $ — $ — $ 165 $ — $ 27,034 Ending balance: Collectively evaluated for impairment $ 22,809 $ 164,285 $ 9,435 $ 9,385 $ 14,387 $ 1,344 $ 3,120 $ 5,607 $ — $ 230,372

8. PREMISES AND EQUIPMENT (Tabl

8. PREMISES AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Schedule of premises and equipment	December 31, 2015 2014 Land $ 206 $ 206 Building and improvements 845 855 Furniture, fixtures and equipment 5,831 5,577 Leasehold improvements 1,565 1,533 8,447 8,171 Less accumulated depreciation and amortization (7,040 ) (6,653 ) $ 1,407 $ 1,518

9. INTEREST-BEARING DEPOSITS (T

9. INTEREST-BEARING DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2015
Interest-bearing Deposit Liabilities [Abstract]
Schedule of interest-bearing deposits	December 31, 2015 2014 Savings $ 59,061 $ 58,820 Money market 135,186 147,625 NOW accounts 61,324 60,862 Time, $250,000 or more 46,827 48,287 Other time 37,744 39,401 $ 340,142 $ 354,995
Schedule of aggregate annual maturities of time deposits	Year Ending December 31, 2016 $ 59,739 2017 10,908 2018 6,671 2019 4,314 2020 2,925 Thereafter 14 $ 84,571
Schedule of interest expense recognized on interest-bearing deposits	Year Ended December 31, 2015 2014 2013 Savings $ 29 $ 40 $ 68 Money market 218 383 435 NOW accounts 26 36 40 Time Deposits 544 562 654 $ 817 $ 1,021 $ 1,197

10. BORROWING ARRANGEMENTS (Tab

10. BORROWING ARRANGEMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of summary of borrowings	December 31, 2015 2014 Weighted Weighted Average Average Amount Rate Amount Rate Short-term portion of borrowings $ 3,500 1.28 % $ 3,500 0.92 % Long-term borrowings 7,500 1.24 % 7,500 1.39 % $ 11,000 1.26 % $ 11,000 1.24 %
Schedule of maturities on borrowings	Year Ending December 31, 2016 $ 3,500 2017 3,500 2018 2,000 2019 2,000 2020 — Thereafter — $ 11,000

11. INCOME TAXES (Tables)

11. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of provision for (benefit from) income taxes	Federal State Total 2015 Current $ 1,482 $ 719 $ 2,201 Deferred 409 64 473 Provision for income taxes $ 1,891 $ 783 $ 2,674 2014 Current $ 1,754 $ 612 $ 2,366 Deferred (99 ) 25 (74 ) Provision for income taxes $ 1,655 $ 637 $ 2,292 Federal State Total 2013 Current $ 797 $ 217 $ 1,014 Deferred 162 82 244 Provision for income taxes $ 959 $ 299 $ 1,258
Schedule of deferred tax assets (liabilities)	December 31, 2015 2014 Deferred tax assets: Allowance for loan and lease losses $ 2,275 $ 2,422 Other real estate owned 30 287 Deferred compensation 2,519 2,502 Other 252 165 Total deferred tax assets 5,076 5,376 Deferred tax liabilities: Unrealized gains on available-for-sale investment securities (1,401 ) (2,247 ) Future liability of state deferred tax assets (160 ) (215 ) Deferred loan costs (223 ) (223 ) Federal Home Loan Bank stock dividends (211 ) (211 ) Premises and equipment (273 ) (45 ) Total deferred tax liabilities (2,268 ) (2,941 ) Net deferred tax assets $ 2,808 $ 2,435
Schedule of reconciliation of effective income tax rate	Year Ended December 31, 2015 2014 2013 Federal income tax statutory rate 34.0 % 34.0 % 34.0 % State franchise tax, net of Federal tax effect 6.5 % 6.3 % 4.6 % Tax benefit of interest on loans to/investments in states and political subdivisions (4.5 )% (4.0 )% (6.5 )% Tax-exempt income from life insurance policies (1.3 )% (1.9 )% (2.9 )% Equity compensation expense 0.1 % 0.1 % 0.1 % Other (1.1 )% — (0.1 )% Effective tax rate 33.7 % 34.5 % 29.2 %

12. COMMITMENTS AND CONTINGEN36

12. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments	Year Ending December 31, 2016 $ 767 2017 451 2018 258 2019 155 2020 148 Thereafter 429 $ 2,208
Schedule of financial instruments representing off-balance-sheet credit risk	December 31, 2015 2014 Commitments to extend credit: Revolving lines of credit secured by 1-4 family residences $ 727 $ 1,447 Commercial real estate, construction and land development commitments secured by real estate 13,999 16,206 Other unused commitments, principally commercial loans 12,004 14,986 $ 26,730 $ 32,639 Standby letters of credit $ 238 $ 356

13. SHAREHOLDERS' EQUITY (Table

13. SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Schedule of reconciliation of the numerators and denominators of the basic and diluted earnings per share computations	For the Year Ended Net Income Weighted Average Number of Shares Outstanding Per-Share Amount December 31, 2015 Basic earnings per share $ 5,268 7,561 $ 0.70 Effect of dilutive stock-based compensation — 18 Diluted earnings per share $ 5,268 7,579 $ 0.70 December 31, 2014 Basic earnings per share $ 4,361 8,130 $ 0.54 Effect of dilutive stock-based compensation — 14 Diluted earnings per share $ 4,361 8,144 $ 0.54 December 31, 2013 Basic earnings per share $ 3,057 8,888 $ 0.34 Effect of dilutive stock-based compensation — 6 Diluted earnings per share $ 3,057 8,894 $ 0.34
Schedule of summary of the outstanding and nonvested stock option activity	Outstanding Nonvested Shares Weighted Average Exercise Price Per Share Shares Weighted Average Grant Date Fair Value Per Share Balance, January 1, 2015 271,700 $ 16.27 43,118 $ 2.41 Options granted 26,427 $ 9.56 26,427 $ 3.24 Options vested (10,017 ) $ 2.40 Options expired or canceled (49,716 ) $ 18.11 Balance, December 31, 2015 248,411 $ 15.19 59,528 $ 2.78 A summary of options as of December 31, 2015 is as follows: Nonvested: Weighted average exercise price of nonvested stock options $ 8.96 Aggregate intrinsic value of nonvested stock options $ 96,563 Weighted average remaining contractual term in years of nonvested stock options 8.60 Vested: Number of vested stock options 188,883 Number of options expected to vest 56,216 Weighted average exercise price per share $ 17.15 Aggregate intrinsic value $ 135,879 Weighted average remaining contractual term in years 2.13
Schedule of share-based compensation, shares authorized under stock option plans, by exercise price range	Range of Exercise Prices Number of Options Outstanding December 31, 2015 Weighted Average Remaining Contractual Life Number of Options Exercisable December 31, 2015 $7.07- $11.66 118,808 6.45 years 59,280 $11.67- $18.10 42,669 2.15 years 42,669 $18.11 - $24.07 86,934 0.65 years 86,934 248,411 188,883
Schedule of share-based compensation, restricted stock units award activity	Restricted Stock Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 32,838 $ 8.31 Awarded 45,023 $ 9.49 Vested (20,344 ) $ 8.36 Cancelled Nonvested at December 31, 2015 57,517 $ 9.21

14. REGULATORY MATTERS (Tables)

14. REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2015
Regulatory Capital Requirements [Abstract]
Schedule of compliance with regulatory capital requirements under banking regulations	December 31, 2015 2014 Amount Ratio Amount Ratio (Dollars in thousands) Leverage Ratio American River Bankshares and Subsidiaries $ 67,651 11.0 % $ 69,955 11.6 % Minimum regulatory requirement $ 24,673 4.0 % $ 24,112 4.0 % American River Bank $ 68,079 11.0 % $ 70,216 11.7 % Minimum requirement for “Well-Capitalized” institution $ 30,826 5.0 % $ 30,125 5.0 % Minimum regulatory requirement $ 24,661 4.0 % $ 24,100 4.0 % Common Equity Tier 1 Risk-Based Capital Ratio American River Bank $ 68,079 19.1 % N/A Minimum requirement for “Well-Capitalized” institution $ 23,237 6.5 % N/A Minimum regulatory requirement $ 16,065 4.5 % N/A Tier 1 Risk-Based Capital Ratio American River Bankshares and Subsidiaries $ 67,651 19.3 % $ 69,955 21.6 % Minimum regulatory requirement $ 20,988 6.0 % $ 12,957 4.0 % American River Bank $ 68,079 19.1 % $ 70,216 21.7 % Minimum requirement for “Well-Capitalized” institution $ 28,559 8.0 % $ 19,419 6.0 % Minimum regulatory requirement $ 21,420 6.0 % $ 12,946 4.0 % Total Risk-Based Capital Ratio American River Bankshares and Subsidiaries $ 72,031 20.6 % $ 74,020 22.9 % Minimum regulatory requirement $ 27,984 8.0 % $ 26,014 8.0 % American River Bank $ 72,548 20.3 % $ 74,277 22.9 % Minimum requirement for “Well-Capitalized” institution $ 35,750 10.0 % $ 32,490 10.0 % Minimum regulatory requirement $ 28,559 8.0 % $ 25,992 8.0 %

15. OTHER NONINTEREST INCOME 39

15. OTHER NONINTEREST INCOME AND EXPENSE (Tables)	12 Months Ended
	Dec. 31, 2015
Other Income and Expenses [Abstract]
Schedule of other noninterest income	Year Ended December 31, 2015 2014 2013 Merchant fee income $ 378 $ 413 $ 443 Increase in cash surrender value of life insurance policies (Note 16) 316 284 247 Other 237 345 383 $ 931 $ 1,042 $ 1,073
Schedule of other noninterest expense	Year Ended December 31, 2015 2014 2013 Professional fees $ 863 $ 1,182 $ 933 Outsourced item processing 360 355 357 Directors’ expense 402 394 348 Telephone and postage 368 357 329 Stationery and supplies 143 193 240 Advertising and promotion 164 160 284 Other operating expenses 662 736 596 $ 2,962 $ 3,377 $ 3,087

17. RELATED PARTY TRANSACTIONS

17. RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Schedule of summary of the aggregate activity involving related party borrowers	Balance, January 1, 2015 $ 3,821 Disbursements — Amounts repaid (789 ) Balance, December 31, 2015 $ 3,032

18. PARENT ONLY CONDENSED FIN41

18. PARENT ONLY CONDENSED FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Schedule of condensed balance sheet	2015 2014 ASSETS Cash and due from banks $ 191 $ 378 Investment in subsidiaries 86,503 89,908 Other assets 333 277 $ 87,027 $ 90,563 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities: Other liabilities $ 952 $ 916 Total liabilities 952 916 Shareholders’ equity: Common stock 49,554 57,126 Retained earnings 34,418 29,150 Accumulated other comprehensive income, net of taxes 2,103 3,371 Total shareholders’ equity 86,075 89,647 $ 87,027 $ 90,563
Schedule of condensed income statement	2015 2014 2013 Income: Dividends declared by subsidiaries – eliminated in consolidation $ 7,900 $ 4,250 $ 6,000 Management fee from subsidiaries – eliminated in consolidation — — — Other income — — — Total income 7,900 4,250 6,000 Expenses: Professional fees 97 89 91 Directors’ expense 285 280 247 Other expenses 204 212 205 Total expenses 586 581 543 Income before equity in undistributed income of subsidiaries 7,314 3,669 5,457 Equity in (distributed) undistributed income of subsidiaries (2,287 ) 453 (2,623 ) Income before income taxes 5,027 4,122 2,834 Income tax benefit 241 239 223 Net income $ 5,268 $ 4,361 $ 3,057
Schedule of condensed cash flow statement	2015 2014 2013 Cash flows from operating activities: Net income $ 5,268 $ 4,361 $ 3,057 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Distributed (undistributed) earnings of subsidiaries 2,287 (453 ) 2,623 Equity-based compensation expense 271 166 131 (Increase) decrease in other assets (206 ) (44 ) 1,004 Increase (decrease) in other liabilities 36 80 (60 ) Net cash provided by operating activities 7,656 4,110 6,755 Cash flows from investing activities: Purchase of equipment — — — Sale of equipment — — — Net cash provided by investing activities — — — Cash flows from financing activities: Cash paid to repurchase common stock (7,843 ) (4,148 ) (7,000 ) Net cash used in financing activities (7,843 ) (4,148 ) (7,000 ) Net decrease in cash and cash equivalents (187 ) (38 ) (245 ) Cash and cash equivalents at beginning of year 378 416 661 Cash and cash equivalents at end of year $ 191 $ 378 $ 416
Schedule of quarterly financial information	March 31, June 30, September 30, December 31, 2015 Interest income $ 4,902 $ 5,283 $ 5,458 $ 5,325 Net interest income 4,654 5,039 5,218 5,096 Provision for loan and lease losses — — — — Noninterest income 585 507 490 433 Noninterest expense 3,813 3,415 3,432 3,420 Income before taxes 1,426 2,131 2,276 2,109 Net income 956 1,386 1,469 1,457 Basic earnings per share $ .12 $ .18 $ .20 $ .20 Diluted earnings per share .12 .18 .20 .20 Cash dividends per share — — — — Price range, common stock $ 9.23-9.98 $ 9.10-9.95 $ 9.15-10.35 $ 9.40-11.19 2014 Interest income $ 4,996 $ 5,067 $ 4,966 $ 4,936 Net interest income 4,692 4,776 4,679 4,650 Provision for loan and lease losses — — (200 ) (341 ) Noninterest income 502 508 520 647 Noninterest expense 3,653 3,699 3,662 3,848 Income before taxes 1,541 1,585 1,737 1,790 Net income 1,006 1,035 1,124 1,196 Basic earnings per share $ .12 $ .13 $ .14 $ .15 Diluted earnings per share .12 .13 .14 .15 Cash dividends per share — — — — Price range, common stock $ 8.92-10.29 $ 8.21-9.75 $ 8.42-9.63 $ 9.05-9.99

2. SUMMARY OF SIGNIFICANT ACC42

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Dividend yield	0.00%	0.00%
Expected volatility	28.10%	20.70%
Risk-free interest rate	1.92%	2.10%
Expected option life in years	7 years	7 years
Weighted average fair value of options granted during the year	$ 3.24	$ 2.44

2. SUMMARY OF SIGNIFICANT ACC43

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-based compensation information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Total intrinsic value of options exercised
Aggregate cash received for option exercises
Total fair value of options vested	$ 24	$ 14	$ 40
Total compensation cost, options and restricted stock	271	166	131
Tax benefit recognized	94	59	47
Net compensation cost, options and restricted stock	176	107	84
Total compensation cost for nonvested option awards not yet recognized	$ 165	$ 104	$ 38
Weighted average years for compensation cost for nonvested options to be recognized	2 years	2 years 1 month 6 days	1 year 1 month 6 days
Total compensation cost for restricted stock not yet recognized	$ 530	$ 273	$ 173
Weighted average years for compensation cost for restricted stock to be recognized	1 year 7 months 6 days	1 year 2 months 12 days	1 year

2. SUMMARY OF SIGNIFICANT ACC44

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
SBA and Farm Service Agency loans with unpaid balances	$ 202	$ 233
Serviced loans	7,942	8,136
Proceeds from the sale of other real estate owned	1,153	2,283	$ 7,516
Gain from sale of real estate property	(1)	231	44
Recorded investment in other real estate owned	3,551	4,647
Investment in other real estate owned valuation allowances	0	156	106
Compensation expense, net of related tax benefits	$ 176	$ 107	$ 84
Compensation expense, per diluted share	$ .02	$ 0.01	$ 0.01

3. FAIR VALUE MEASUREMENTS - Ca

3. FAIR VALUE MEASUREMENTS - Carrying amounts and estimated fair values (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financial assets:
Cash and due from banks	$ 23,727	$ 22,449
Interest-bearing deposits in banks	750	1,000
Available-for-sale securities	273,819	289,064
Held-to-maturity securities	689	922
FHLB stock	3,779	3,686
Loans and leases, net	292,444	261,421
Accrued interest receivable	1,885	1,858
Deposits
Noninterest-bearing	190,548	155,698
Savings	59,061	58,820
Money market	135,186	147,625
NOW accounts	61,324	60,862
Time, $100,000 or more	85,165	66,203
Other time		22,282
Short-term borrowings	3,500	3,500
Long-term borrowings	7,502	7,567
Accrued interest payable	60	59
Level 1
Financial assets:
Cash and due from banks	$ 23,727	$ 22,449
Interest-bearing deposits in banks
Available-for-sale securities	$ 24	$ 28
Held-to-maturity securities
FHLB stock
Loans and leases, net
Accrued interest receivable
Deposits
Noninterest-bearing	$ 190,548	$ 155,698
Savings	59,061	58,820
Money market	135,186	147,625
NOW accounts	$ 61,324	$ 60,862
Time, $100,000 or more
Other time
Short-term borrowings	$ 3,500	$ 3,500
Long-term borrowings
Accrued interest payable
Level 2
Financial assets:
Cash and due from banks
Interest-bearing deposits in banks	$ 752	$ 1,002
Available-for-sale securities	273,795	289,036
Held-to-maturity securities	$ 669	$ 922
FHLB stock
Loans and leases, net
Accrued interest receivable	$ 1,077	$ 1,150
Deposits
Noninterest-bearing
Savings
Money market
NOW accounts
Time, $100,000 or more	$ 85,165	$ 66,203
Other time		$ 22,282
Short-term borrowings
Long-term borrowings	$ 7,502	$ 7,567
Accrued interest payable	$ 60	$ 59
Level 3
Financial assets:
Cash and due from banks
Interest-bearing deposits in banks
Available-for-sale securities
Held-to-maturity securities
FHLB stock
Loans and leases, net	$ 292,444	$ 261,421
Accrued interest receivable	$ 808	$ 708
Deposits
Noninterest-bearing
Savings
Money market
NOW accounts
Time, $100,000 or more
Other time
Short-term borrowings
Long-term borrowings
Accrued interest payable
Carrying Amount
Financial assets:
Cash and due from banks	$ 23,727	$ 22,449
Interest-bearing deposits in banks	750	1,000
Available-for-sale securities	273,819	289,064
Held-to-maturity securities	623	862
FHLB stock	3,779	3,686
Loans and leases, net	289,102	258,057
Accrued interest receivable	1,885	1,858
Deposits
Noninterest-bearing	190,548	155,698
Savings	59,061	58,820
Money market	135,186	147,625
NOW accounts	61,324	60,862
Time, $100,000 or more	84,571	65,569
Other time		22,119
Short-term borrowings	3,500	3,500
Long-term borrowings	7,500	7,500
Accrued interest payable	$ 60	$ 59

3. FAIR VALUE MEASUREMENTS - As

3. FAIR VALUE MEASUREMENTS - Assets and liabilities measured at fair value on a recurring and non-recurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Recurring
Impaired loans:
Total gain (losses)
Non Recurring
Impaired loans:
Total gain (losses)		$ (46)
US Government Agencies and Sponsored Agencies
Impaired loans:
Total gain (losses)
Corporate Debt Securities
Impaired loans:
Total gain (losses)
Obligations of states and political subdivisions
Impaired loans:
Total gain (losses)
Corporate stock
Impaired loans:
Total gain (losses)
Estimated Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	$ 273,819	$ 289,064
Level 1
Available-for-sale securities:
Asset fair value disclosure recurring	24	28
Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	$ 273,795	$ 289,036
Level 3
Available-for-sale securities:
Asset fair value disclosure recurring
Commercial
Impaired loans:
Total gain (losses)		$ 14
Real estate-commercial
Impaired loans:
Total gain (losses)	$ (334)
Other real estate owned - commercial
Impaired loans:
Total gain (losses)
Other real estate owned - land
Impaired loans:
Total gain (losses)		$ (60)
Fair Value | US Government Agencies and Sponsored Agencies
Available-for-sale securities:
Asset fair value disclosure recurring	$ 246,185	261,115
Fair Value | Corporate Debt Securities
Available-for-sale securities:
Asset fair value disclosure recurring	1,551	1,583
Fair Value | Obligations of states and political subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring	26,013	26,289
Fair Value | Corporate stock
Available-for-sale securities:
Asset fair value disclosure recurring	70	77
Fair Value | Commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring		666
Fair Value | Real estate-commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	3,900	286
Fair Value | Other real estate owned - commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	2,522	243
Fair Value | Other real estate owned - land
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	$ 1,029	$ 2,252
Level 1 | US Government Agencies and Sponsored Agencies
Available-for-sale securities:
Asset fair value disclosure recurring
Level 1 | Corporate Debt Securities
Available-for-sale securities:
Asset fair value disclosure recurring
Level 1 | Obligations of states and political subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring
Level 1 | Corporate stock
Available-for-sale securities:
Asset fair value disclosure recurring	$ 24	$ 28
Level 1 | Commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Level 1 | Real estate-commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Level 1 | Other real estate owned - commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Level 1 | Other real estate owned - land
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Level 2 | US Government Agencies and Sponsored Agencies
Available-for-sale securities:
Asset fair value disclosure recurring	$ 246,185	$ 261,115
Level 2 | Corporate Debt Securities
Available-for-sale securities:
Asset fair value disclosure recurring	1,551	1,583
Level 2 | Obligations of states and political subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring	26,013	26,289
Level 2 | Corporate stock
Available-for-sale securities:
Asset fair value disclosure recurring	$ 46	$ 49
Level 2 | Commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Level 2 | Real estate-commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Level 2 | Other real estate owned - commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Level 2 | Other real estate owned - land
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring
Level 3 | US Government Agencies and Sponsored Agencies
Available-for-sale securities:
Asset fair value disclosure recurring
Level 3 | Corporate Debt Securities
Available-for-sale securities:
Asset fair value disclosure recurring
Level 3 | Obligations of states and political subdivisions
Available-for-sale securities:
Asset fair value disclosure recurring
Level 3 | Corporate stock
Available-for-sale securities:
Asset fair value disclosure recurring
Level 3 | Commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring		$ 666
Level 3 | Real estate-commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	$ 3,900	286
Level 3 | Other real estate owned - commercial
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	2,522	243
Level 3 | Other real estate owned - land
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	$ 1,029	$ 2,252

4. GOODWILL AND OTHER INTANGI47

4. GOODWILL AND OTHER INTANGIBLE ASSETS (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 16,321	$ 16,321

5. INVESTMENT SECURITIES - Amor

5. INVESTMENT SECURITIES - Amortized cost and estimated fair value of investment securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt securities:
Amortized Cost	$ 270,315	$ 283,446
Gross Unrealized Gains	4,434	6,240
Gross Unrealized Losses	(930)	(622)
Estimated Fair Value	273,819	289,064
US Government Agencies and Sponsored Agencies
Debt securities:
Amortized Cost	244,056	257,002
Gross Unrealized Gains	3,059	4,715
Gross Unrealized Losses	(930)	(602)
Estimated Fair Value	246,185	261,115
Obligations of states and political subdivisions
Debt securities:
Amortized Cost	24,706	24,886
Gross Unrealized Gains	$ 1,307	1,423
Gross Unrealized Losses		(20)
Estimated Fair Value	$ 26,013	26,289
Corporate Debt Securities
Debt securities:
Amortized Cost	1,502	1,504
Gross Unrealized Gains	$ 49	$ 79
Gross Unrealized Losses
Estimated Fair Value	$ 1,551	$ 1,583
Corporate stock
Debt securities:
Amortized Cost	51	54
Gross Unrealized Gains	$ 19	$ 23
Gross Unrealized Losses
Estimated Fair Value	$ 70	$ 77

5. INVESTMENT SECURITIES - Held

5. INVESTMENT SECURITIES - Held-to-Maturity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Debt securities:
Estimated Fair Value	$ 689	$ 922
US Government Agencies and Sponsored Agencies
Debt securities:
Amortized Cost	623	862
Gross Unrealized Gains	$ 46	$ 60
Gross Unrealized Losses
Estimated Fair Value	$ 669	$ 922

5. INVESTMENT SECURITIES - Am50

5. INVESTMENT SECURITIES - Amortized cost and estimated fair value of investment securities contractual maturity (Details) $ in Thousands	Dec. 31, 2015USD ($)
Amortized Cost
Net Investment Income [Line Items]
Within one year	$ 490
After one year through five years	5,140
After five years through ten years	14,621
After ten years	5,957
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	270,315
Investment securities not due at a single maturity date: Held-to-Maturity	623
Amortized Cost | US Government Agencies and Sponsored Agencies
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	244,056
Amortized Cost | Corporate stock
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	51
Estimated Fair Value
Net Investment Income [Line Items]
Within one year	494
After one year through five years	5,298
After five years through ten years	15,542
After ten years	6,230
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	273,819
Investment securities not due at a single maturity date: Held-to-Maturity	669
Estimated Fair Value | US Government Agencies and Sponsored Agencies
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	246,185
Estimated Fair Value | Corporate stock
Investment securities not due at a single maturity date:
Investment securities not due at a single maturity date: Available-for-Sale	$ 70

5. INVESTMENT SECURITIES - Inve

5. INVESTMENT SECURITIES - Investment securities with unrealized losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Less than 12 months, Estimated Fair Value	$ 93,265	$ 57,145
Less than 12 months, Unrealized Loss	(813)	(503)
12 months or more, Estimated Fair Value	5,251	10,655
12 months or more, Unrealized Loss	(117)	(119)
Total Estimated Fair Value	98,516	67,800
Total Unrealized Loss	(930)	(622)
US Government Agencies and Sponsored Agencies
Less than 12 months, Estimated Fair Value	93,265	57,145
Less than 12 months, Unrealized Loss	(813)	(503)
12 months or more, Estimated Fair Value	5,251	10,006
12 months or more, Unrealized Loss	(117)	(99)
Total Estimated Fair Value	98,516	67,151
Total Unrealized Loss	$ (930)	$ (602)
Obligations of states and political subdivisions
Less than 12 months, Estimated Fair Value
Less than 12 months, Unrealized Loss
12 months or more, Estimated Fair Value		$ 649
12 months or more, Unrealized Loss		(20)
Total Estimated Fair Value		649
Total Unrealized Loss		$ (20)

6. LOANS AND LEASES - Outstandi

6. LOANS AND LEASES - Outstanding loans and leases (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loans and Leases Receivable	$ 294,298	$ 263,645	$ 257,406
Deferred loan and lease origination fees, net	(224)	(287)
Allowance for loan and lease losses	(4,975)	(5,301)
Outstanding loans and leases	289,102	258,057
Real estate-commercial
Loans and Leases Receivable	199,591	193,871	184,204
Real estate-construction
Loans and Leases Receivable	14,533	8,028	9,633
Real estate-multi-family
Loans and Leases Receivable	23,494	14,167	11,085
Real Estate Residential
Loans and Leases Receivable	14,200	13,309	17,703
Commercial
Loans and Leases Receivable	36,195	25,186	24,545
Lease financing receivable
Loans and Leases Receivable	732	1,286
Agriculture
Loans and Leases Receivable	2,431	2,882	3,120
Consumer
Loans and Leases Receivable	$ 3,122	$ 4,916	$ 5,772

6. LOANS AND LEASES - Company's

6. LOANS AND LEASES - Company's lease financing receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Future lease payments receivable	$ 774	$ 1,358
Residual interests		13
Unearned income	$ (42)	(85)
Net lease financing receivable	$ 732	$ 1,286

6. LOANS AND LEASES - Future le

6. LOANS AND LEASES - Future lease payments receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
2,016	$ 352
2,017	211
2,018	178
2,019	$ 33
2,020
Total lease payments receivable	$ 774	$ 1,358

7. ALLOWANCE FOR LOAN AND LEA55

7. ALLOWANCE FOR LOAN AND LEASE LOSSES - Allowance for loan and lease losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for Loan and Lease Losses Beginning balance	$ 5,301	$ 5,346	$ 5,781
Provision for loan losses		(541)	200
Loans charged off	$ (616)	(76)	(938)
Recoveries	290	572	303
Ending balance allocated to portfolio segments	4,975	5,301	5,346
Ending balance:Individually evaluated for impairment	899	1,603	1,598
Ending balance: Collectively evaluated for impairment	4,076	3,698	3,748
Loans Ending balance	294,298	263,645	257,406
Ending balance: Individually evaluated for impairment	21,365	25,120	27,034
Ending balance: Collectively evaluated for impairment	272,933	238,525	230,372
Commercial
Allowance for Loan and Lease Losses Beginning balance	1,430	885	1,351
Provision for loan losses	(84)	$ 289	(304)
Loans charged off	(609)		(377)
Recoveries	123	$ 256	215
Ending balance allocated to portfolio segments	860	1,430	885
Ending balance:Individually evaluated for impairment	25	344	392
Ending balance: Collectively evaluated for impairment	835	1,086	493
Loans Ending balance	36,195	25,186	24,545
Ending balance: Individually evaluated for impairment	121	769	1,736
Ending balance: Collectively evaluated for impairment	36,074	24,417	22,809
Real estate-commercial
Allowance for Loan and Lease Losses Beginning balance	$ 2,317	2,401	2,526
Provision for loan losses		$ (135)	327
Loans charged off			(476)
Recoveries	$ 52	$ 51	24
Ending balance allocated to portfolio segments	2,369	2,317	2,401
Ending balance:Individually evaluated for impairment	598	949	792
Ending balance: Collectively evaluated for impairment	1,771	1,368	1,609
Loans Ending balance	199,591	193,871	184,204
Ending balance: Individually evaluated for impairment	17,866	20,457	19,919
Ending balance: Collectively evaluated for impairment	181,725	173,414	164,285
Real estate-multi-family
Allowance for Loan and Lease Losses Beginning balance	130	242	238
Provision for loan losses	$ 98	$ (205)	$ 4
Loans charged off
Recoveries		$ 93
Ending balance allocated to portfolio segments	$ 228	130	$ 242
Ending balance:Individually evaluated for impairment	5	38	108
Ending balance: Collectively evaluated for impairment	223	92	134
Loans Ending balance	23,494	14,167	11,085
Ending balance: Individually evaluated for impairment	488	496	1,650
Ending balance: Collectively evaluated for impairment	23,006	13,671	9,435
Real estate-construction
Allowance for Loan and Lease Losses Beginning balance	583	542	594
Provision for loan losses	$ 230	$ 39	$ (73)
Loans charged off
Recoveries		$ 2	$ 21
Ending balance allocated to portfolio segments	$ 813	$ 583	$ 542
Ending balance:Individually evaluated for impairment
Ending balance: Collectively evaluated for impairment	$ 813	$ 583	$ 542
Loans Ending balance	$ 14,533	$ 8,028	9,633
Ending balance: Individually evaluated for impairment			248
Ending balance: Collectively evaluated for impairment	$ 14,533	$ 8,028	9,385
Real Estate Residential
Allowance for Loan and Lease Losses Beginning balance	399	825	477
Provision for loan losses	$ (193)	$ (443)	363
Loans charged off			(58)
Recoveries	$ 113	$ 17	43
Ending balance allocated to portfolio segments	319	399	825
Ending balance:Individually evaluated for impairment	204	237	276
Ending balance: Collectively evaluated for impairment	115	162	549
Loans Ending balance	14,200	13,309	17,703
Ending balance: Individually evaluated for impairment	2,452	2,862	3,316
Ending balance: Collectively evaluated for impairment	11,748	10,447	14,387
Leases
Allowance for Loan and Lease Losses Beginning balance	$ 2	4	3
Provision for loan losses		$ (5)	2
Loans charged off	$ (1)		$ (1)
Recoveries		$ 3
Ending balance allocated to portfolio segments	$ 1	$ 2	$ 4
Ending balance:Individually evaluated for impairment
Ending balance: Collectively evaluated for impairment	$ 1	$ 2	$ 4
Loans Ending balance	$ 732	$ 1,286	$ 1,344
Ending balance: Individually evaluated for impairment
Ending balance: Collectively evaluated for impairment	$ 732	$ 1,286	$ 1,344
Agriculture
Allowance for Loan and Lease Losses Beginning balance	62	80	87
Provision for loan losses	$ 15	$ (18)	$ (7)
Loans charged off
Recoveries
Ending balance allocated to portfolio segments	$ 77	$ 62	$ 80
Ending balance:Individually evaluated for impairment	38	13
Ending balance: Collectively evaluated for impairment	39	49	$ 80
Loans Ending balance	2,431	2,882	$ 3,120
Ending balance: Individually evaluated for impairment	370	381
Ending balance: Collectively evaluated for impairment	2,061	2,501	$ 3,120
Consumer
Allowance for Loan and Lease Losses Beginning balance	124	161	262
Provision for loan losses	(42)	(111)	(75)
Loans charged off	(6)	(76)	$ (26)
Recoveries	2	150
Ending balance allocated to portfolio segments	78	124	$ 161
Ending balance:Individually evaluated for impairment	29	22	30
Ending balance: Collectively evaluated for impairment	49	102	131
Loans Ending balance	3,122	4,916	5,772
Ending balance: Individually evaluated for impairment	68	155	165
Ending balance: Collectively evaluated for impairment	3,054	4,761	5,607
Unallocated
Allowance for Loan and Lease Losses Beginning balance	254	206	243
Provision for loan losses	$ (24)	$ 48	$ (37)
Loans charged off
Recoveries
Ending balance allocated to portfolio segments	$ 230	$ 254	$ 206
Ending balance:Individually evaluated for impairment
Ending balance: Collectively evaluated for impairment	$ 230	$ 254	$ 206
Loans Ending balance
Ending balance: Individually evaluated for impairment
Ending balance: Collectively evaluated for impairment

7. ALLOWANCE FOR LOAN AND LEA56

7. ALLOWANCE FOR LOAN AND LEASE LOSSES - Loan portfolio allocated by management's internal risk ratings (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Total	$ 294,298	$ 263,645	$ 257,406
Real estate-commercial
Total	199,591	193,871	184,204
Real estate-multi-family
Total	23,494	14,167	11,085
Leases
Total	732	1,286	1,344
Agriculture
Total	2,431	2,882	3,120
Commercial
Total	36,195	25,186	24,545
Real estate-construction
Total	14,533	8,028	9,633
Real Estate Residential
Total	14,200	13,309	17,703
Consumer
Total	3,122	4,916	$ 5,772
Pass
Total	249,865	216,835
Pass | Commercial
Total	32,216	20,179
Pass | Real estate-commercial
Total	172,755	163,091
Pass | Real estate-multi-family
Total	23,001	13,663
Pass | Real Estate Construction
Total	6,371	3,327
Pass | Real Estate Residential
Total	10,593	9,364
Pass | Leases
Total	732	1,286
Pass | Agriculture
Total	2,061	2,501
Pass | Consumer
Total	2,136	3,424
Watch
Total	29,893	23,425
Watch | Commercial
Total	1,073	1,280
Watch | Real estate-commercial
Total	17,318	13,724
Watch | Real estate-multi-family
Total	493	504
Watch | Real Estate Construction
Total	8,162	4,372
Watch | Real Estate Residential
Total	$ 2,099	$ 2,504
Watch | Leases
Total
Watch | Agriculture
Total	$ 370
Watch | Consumer
Total	378	$ 1,041
Special mention
Total	$ 9,493	15,265
Special mention | Commercial
Total		101
Special mention | Real estate-commercial
Total	$ 8,363	$ 13,583
Special mention | Real estate-multi-family
Total
Special mention | Real Estate Construction
Total		$ 329
Special mention | Real Estate Residential
Total	$ 697	$ 603
Special mention | Leases
Total
Special mention | Agriculture
Total		$ 381
Special mention | Consumer
Total	$ 433	268
Substandard
Total	5,047	8,120
Substandard | Commercial
Total	2,906	3,626
Substandard | Real estate-commercial
Total	$ 1,155	$ 3,473
Substandard | Real estate-multi-family
Total
Substandard | Real Estate Construction
Total
Substandard | Real Estate Residential
Total	$ 811	$ 838
Substandard | Leases
Total
Substandard | Agriculture
Total
Substandard | Consumer
Total	$ 175	$ 183
Doubtful
Total
Doubtful | Commercial
Total
Doubtful | Real estate-commercial
Total
Doubtful | Real estate-multi-family
Total
Doubtful | Real Estate Construction
Total
Doubtful | Real Estate Residential
Total
Doubtful | Leases
Total
Doubtful | Agriculture
Total
Doubtful | Consumer
Total

7. ALLOWANCE FOR LOAN AND LEA57

7. ALLOWANCE FOR LOAN AND LEASE LOSSES - Aging analysis of the loan portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Past Due, 30-59 days	$ 367	$ 1,155
Past Due, 60-89 days	359
Past Due, > 90 days	867	$ 1,511
Past Due, Total	1,593	2,666
Current	292,705	260,979
Total loans	$ 294,298	$ 263,645	$ 257,406
Recorded Investment > 90 days and Accruing
Nonaccrual	$ 1,643	$ 1,653
Commercial
Past Due, 30-59 days		$ 513
Past Due, 60-89 days
Past Due, > 90 days	$ 30	$ 666
Past Due, Total	30	1,179
Current	36,165	24,007
Total loans	$ 36,195	$ 25,186	24,545
Recorded Investment > 90 days and Accruing
Nonaccrual	$ 30	$ 666
Real estate-commercial
Past Due, 30-59 days		$ 507
Past Due, 60-89 days	$ 359
Past Due, > 90 days	499	$ 507
Past Due, Total	858	1,014
Current	198,733	192,857
Total loans	$ 199,591	$ 193,871	184,204
Recorded Investment > 90 days and Accruing
Nonaccrual	$ 1,155	$ 507
Real estate-multi-family
Past Due, 30-59 days
Past Due, 60-89 days
Past Due, > 90 days
Past Due, Total
Current	$ 23,494	$ 14,167
Total loans	$ 23,494	$ 14,167	11,085
Recorded Investment > 90 days and Accruing
Nonaccrual
Real estate-construction
Past Due, 30-59 days
Past Due, 60-89 days
Past Due, > 90 days
Past Due, Total
Current	$ 14,533	$ 8,028
Total loans	$ 14,533	$ 8,028	9,633
Recorded Investment > 90 days and Accruing
Nonaccrual
Real Estate Residential
Past Due, 30-59 days
Past Due, 60-89 days
Past Due, > 90 days	$ 338	$ 338
Past Due, Total	338	338
Current	13,862	12,971
Total loans	$ 14,200	$ 13,309	17,703
Recorded Investment > 90 days and Accruing
Nonaccrual	$ 338	$ 338
Leases
Past Due, 30-59 days
Past Due, 60-89 days
Past Due, > 90 days
Past Due, Total
Current	$ 732	$ 1,286
Total loans	$ 732	$ 1,286	1,344
Recorded Investment > 90 days and Accruing
Nonaccrual
Agriculture
Past Due, 30-59 days
Past Due, 60-89 days
Past Due, > 90 days
Past Due, Total
Current	$ 2,431	$ 2,882
Total loans	$ 2,431	$ 2,882	3,120
Recorded Investment > 90 days and Accruing
Nonaccrual
Consumer
Past Due, 30-59 days	$ 367	$ 135
Past Due, 60-89 days
Past Due, > 90 days
Past Due, Total	$ 367	$ 135
Current	2,755	4,781
Total loans	$ 3,122	$ 4,916	$ 5,772
Recorded Investment > 90 days and Accruing
Nonaccrual	$ 120	$ 142

7. ALLOWANCE FOR LOAN AND LEA58

7. ALLOWANCE FOR LOAN AND LEASE LOSSES - Information related to impaired loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
With no related allowance recorded:
Recorded Investment	$ 12,607	$ 11,059	$ 11,783
Unpaid Principal Balance	$ 13,240	$ 11,257	$ 11,981
Related Allowance
Average Recorded Investment	$ 12,683	$ 10,889	$ 12,572
Interest Income Recognized	595	530	23
With an allowance recorded:
Recorded Investment	8,758	14,061	15,251
Unpaid Principal Balance	8,941	14,061	15,344
Related Allowance	899	1,603	1,598
Average Recorded Investment	8,135	13,238	15,403
Interest Income Recognized	467	723	316
Total:
Recorded Investment, Total	21,365	25,120	27,034
Unpaid Principal Balance, Total	22,181	25,318	27,325
Related Allowance	899	1,603	1,598
Average Recorded Investment, Total	20,818	24,127	27,975
Interest Income Recognized, Total	$ 1,062	$ 1,253	339
Commercial
With no related allowance recorded:
Recorded Investment			577
Unpaid Principal Balance			$ 577
Related Allowance
Average Recorded Investment			$ 665
Interest Income Recognized		$ 3	11
With an allowance recorded:
Recorded Investment	$ 121	769	1,159
Unpaid Principal Balance	121	769	1,159
Related Allowance	25	344	392
Average Recorded Investment	99	758	1,240
Interest Income Recognized	9	4	10
Total:
Recorded Investment, Total	121	769	1,736
Unpaid Principal Balance, Total	121	769	1,736
Related Allowance	25	344	392
Average Recorded Investment, Total	99	758	1,905
Interest Income Recognized, Total	9	7	21
Real estate-commercial
With no related allowance recorded:
Recorded Investment	12,269	10,684	10,921
Unpaid Principal Balance	$ 12,902	$ 10,882	$ 11,119
Related Allowance
Average Recorded Investment	$ 12,345	$ 10,512	$ 11,614
Interest Income Recognized	595	518	11
With an allowance recorded:
Recorded Investment	5,597	9,773	8,998
Unpaid Principal Balance	5,693	9,773	8,998
Related Allowance	598	949	792
Average Recorded Investment	4,953	8,917	9,008
Interest Income Recognized	320	562	196
Total:
Recorded Investment, Total	17,866	20,457	19,919
Unpaid Principal Balance, Total	18,595	20,655	20,117
Related Allowance	598	949	792
Average Recorded Investment, Total	17,298	19,429	20,622
Interest Income Recognized, Total	915	1,080	207
Real estate-multi-family
With an allowance recorded:
Recorded Investment	488	496	1,650
Unpaid Principal Balance	488	496	1,743
Related Allowance	5	38	108
Average Recorded Investment	492	501	1,665
Interest Income Recognized	29	20	39
Total:
Recorded Investment, Total	488	496	1,650
Unpaid Principal Balance, Total	488	496	1,743
Related Allowance	5	38	108
Average Recorded Investment, Total	492	501	1,665
Interest Income Recognized, Total	29	20	39
Real Estate Residential
With no related allowance recorded:
Recorded Investment	338
Unpaid Principal Balance	$ 338
Related Allowance
Average Recorded Investment	$ 338
Interest Income Recognized
With an allowance recorded:
Recorded Investment	$ 2,114	381	3,316
Unpaid Principal Balance	2,201	381	3,316
Related Allowance	204	13	276
Average Recorded Investment	2,140	386	3,354
Interest Income Recognized	91	21	70
Total:
Recorded Investment, Total	2,452	381	3,316
Unpaid Principal Balance, Total	2,539	381	3,316
Related Allowance	204	13	276
Average Recorded Investment, Total	2,478	386	3,354
Interest Income Recognized, Total	91	21	70
Agriculture
With an allowance recorded:
Recorded Investment	370
Unpaid Principal Balance	370
Related Allowance	38
Average Recorded Investment	375
Interest Income Recognized	18
Total:
Recorded Investment, Total	370
Unpaid Principal Balance, Total	370
Related Allowance	38
Average Recorded Investment, Total	375
Interest Income Recognized, Total	$ 18
Consumer
With no related allowance recorded:
Recorded Investment		37	37
Unpaid Principal Balance		$ 37	$ 37
Related Allowance
Average Recorded Investment		$ 37	$ 37
Interest Income Recognized		2	1
With an allowance recorded:
Recorded Investment	$ 68	118	128
Unpaid Principal Balance	68	118	128
Related Allowance	29	22	30
Average Recorded Investment	$ 76	123	136
Interest Income Recognized		2	1
Total:
Recorded Investment, Total	$ 68	155	165
Unpaid Principal Balance, Total	68	155	165
Related Allowance	29	22	30
Average Recorded Investment, Total	$ 76	160	173
Interest Income Recognized, Total		4	2
Real estate-construction
With no related allowance recorded:
Recorded Investment		338	248
Unpaid Principal Balance		$ 338	$ 248
Related Allowance
Average Recorded Investment		$ 340	$ 256
Interest Income Recognized		7
With an allowance recorded:
Recorded Investment		2,524
Unpaid Principal Balance		2,524
Related Allowance		237
Average Recorded Investment		2,553
Interest Income Recognized		114
Total:
Recorded Investment, Total		2,862	$ 248
Unpaid Principal Balance, Total		2,862	$ 248
Related Allowance		237
Average Recorded Investment, Total		2,893	$ 256
Interest Income Recognized, Total		$ 121

7. ALLOWANCE FOR LOAN AND LEA59

7. ALLOWANCE FOR LOAN AND LEASE LOSSES - Loans by class modified as troubled debt restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Troubled debt restructurings:
Number of Loans	5	10
Pre-Modification Outstanding Recorded Investment	$ 1,100	$ 5,837
Post-Modification Outstanding Recorded Investment	$ 1,100	$ 5,837
Commercial [Member]
Troubled debt restructurings:
Number of Loans	1	2
Pre-Modification Outstanding Recorded Investment	$ 26	$ 50
Post-Modification Outstanding Recorded Investment	$ 26	$ 50
Real estate - commercial [Member]
Troubled debt restructurings:
Number of Loans	1	8
Pre-Modification Outstanding Recorded Investment	$ 644	$ 5,787
Post-Modification Outstanding Recorded Investment	$ 644	$ 5,787
Real estate - residential [Member]
Troubled debt restructurings:
Number of Loans	2
Pre-Modification Outstanding Recorded Investment	$ 407
Post-Modification Outstanding Recorded Investment	$ 407
Consumer
Troubled debt restructurings:
Number of Loans	1
Pre-Modification Outstanding Recorded Investment	$ 23
Post-Modification Outstanding Recorded Investment	$ 23

8. PREMISES AND EQUIPMENT - Pre

8. PREMISES AND EQUIPMENT - Premises and equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Land	$ 206	$ 206
Building and improvements	845	855
Furniture, fixtures and equipment	5,831	5,577
Leasehold improvements	1,565	1,533
Net amount of premises and equipment	8,447	8,171
Less accumulated depreciation and amortization	(7,040)	(6,653)
Premises and equipment	$ 1,407	$ 1,518

8. PREMISES AND EQUIPMENT (Deta

8. PREMISES AND EQUIPMENT (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Premises And Equipment Details Narrative
Depreciation and amortization	$ 430	$ 438	$ 518

9. INTEREST-BEARING DEPOSITS -

9. INTEREST-BEARING DEPOSITS - Interest-bearing deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Interest-bearing Deposits	$ 340,142	$ 354,995
Savings [Member]
Interest-bearing Deposits	59,061	58,820
Money Market [Member]
Interest-bearing Deposits	135,186	147,625
NOW Accounts [Member]
Interest-bearing Deposits	61,324	60,862
Time, $250,000 or more [Member]
Interest-bearing Deposits	46,827	65,569
Other Time [Member]
Interest-bearing Deposits	$ 37,744	$ 22,119

9. INTEREST-BEARING DEPOSITS 63

9. INTEREST-BEARING DEPOSITS - Aggregate annual maturities of time deposits (Details) $ in Thousands	Dec. 31, 2015USD ($)
Interest-bearing Deposit Liabilities [Abstract]
2,016	$ 59,739
2,017	10,908
2,018	6,671
2,019	4,314
2,020	2,925
Thereafter	14
Total	$ 84,571

9. INTEREST-BEARING DEPOSITS 64

9. INTEREST-BEARING DEPOSITS - Interest expense recognized on interest-bearing deposits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Interest Bearing Deposits [Line Items]
Interest Expense on Deposit Liabilities	$ 817	$ 1,021	$ 1,197
Savings [Member]
Interest Bearing Deposits [Line Items]
Interest Expense on Deposit Liabilities	29	40	68
Money Market [Member]
Interest Bearing Deposits [Line Items]
Interest Expense on Deposit Liabilities	218	383	435
NOW Accounts [Member]
Interest Bearing Deposits [Line Items]
Interest Expense on Deposit Liabilities	26	36	40
Time, $250,000 or more [Member]
Interest Bearing Deposits [Line Items]
Interest Expense on Deposit Liabilities	$ 544	$ 562	$ 654

9. INTEREST-BEARING DEPOSITS (D

9. INTEREST-BEARING DEPOSITS (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Interest-bearing Deposits Details Narrative
Certificates of deposit	$ 29,000	$ 29,000
Percentage of total deposit	5.50%	5.70%

10. BORROWING ARRANGEMENTS - Bo

10. BORROWING ARRANGEMENTS - Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Borrowing Arrangements [Line Items]
Short-term portion of borrowings, Amount	$ 3,500	$ 3,500
Long-term borrowings, Amount	7,500	7,500
Total of Short-term and Long-term borrowings, Amount	11,000	11,000
Short And Long Term Borrowings [Member]
Borrowing Arrangements [Line Items]
Short-term portion of borrowings, Amount	3,500	3,500
Long-term borrowings, Amount	7,500	7,500
Total of Short-term and Long-term borrowings, Amount	$ 11,000	$ 11,000
Weighted Average Interest Rate [Member]
Borrowing Arrangements [Line Items]
Short-term portion of borrowings, Weighted Average Rate	1.28%	0.92%
Long-term borrowings, Weighted Average Rate	1.24%	1.39%
Total of Short-term and Long-term borrowings, Weighted Average Rate	1.26%	1.24%

10. BORROWING ARRANGEMENTS - Ma

10. BORROWING ARRANGEMENTS - Maturities on borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
2,016	$ 3,500
2,017	3,500
2,018	2,000
2,019	$ 2,000
2,020
Thereafter
Total of Short-term and Long-term borrowings	$ 11,000	$ 11,000

10. BORROWING ARRANGEMENTS (Det

10. BORROWING ARRANGEMENTS (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
BORROWING ARRANGEMENTS {2}
Unsecured short-term borrowing arrangements with two of its correspondent banks	$ 17,000	$ 17,000
FHLB advances	$ 11,000	$ 11,000
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range from	0.45%	0.24%
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Range to	1.91%	1.91%
Remaining amounts available under the borrowing arrangement with the FHLB	$ 78,326	$ 67,228
Secured borrowing agreement with the Federal Reserve Bank of San Francisco	$ 11,371	$ 17,335

11. INCOME TAXES - provision fo

11. INCOME TAXES - provision for (benefit from) income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
Total Income Tax Provision	$ 473	$ (74)	$ 244
Federal Income Tax Provision	1,891	1,655	959
State Income Tax Provision	783	637	299
Total Income Tax Provision	2,674	2,292	1,258
Current [Member]
Operating Loss Carryforwards [Line Items]
Federal Income Tax Provision	1,482	1,754	797
State Income Tax Provision	719	612	217
Total Income Tax Provision	2,201	2,366	1,014
Deferred [Member]
Operating Loss Carryforwards [Line Items]
Federal Income Tax Provision	409	(99)	162
State Income Tax Provision	64	25	82
Total Income Tax Provision	$ 473	$ (74)	$ 244

11. INCOME TAXES - Deferred tax

11. INCOME TAXES - Deferred tax assets (liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Allowance for loan and lease losses	$ 2,275	$ 2,422
Other real estate owned	30	287
Deferred compensation	2,519	2,502
Other	252	165
Total deferred tax assets	5,076	5,376
Deferred tax liabilities:
Unrealized gains on available-for-sale investment securities	(1,401)	(2,247)
Future liability of state deferred tax assets	(160)	(215)
Deferred loan costs	(223)	(223)
Federal Home Loan Bank stock dividends	(211)	(211)
Premises and equipment	(273)	(45)
Total deferred tax liabilities	(2,268)	(2,941)
Net deferred tax assets	$ 2,808	$ 2,435

11. INCOME TAXES - provision 71

11. INCOME TAXES - provision for income taxes (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Federal income tax statutory rate	34.00%	34.00%	34.00%
State franchise tax, net of Federal tax effect	6.50%	6.30%	4.60%
Tax benefit of interest on obligations of states and political subdivisions	(4.50%)	(4.00%)	(6.50%)
Tax-exempt income from life insurance policies	(1.30%)	(1.90%)	(2.90%)
Equity compensation expense	0.10%	0.10%	0.10%
Other	(1.10%)	0.00%	(0.10%)
Effective tax rate	33.70%	34.50%	29.20%

12. COMMITMENTS AND CONTINGEN72

12. COMMITMENTS AND CONTINGENCIES - Future minimum lease payments (Details) $ in Thousands	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,016	$ 767
2,017	451
2,018	258
2,019	155
2,020	148
Thereafter	429
Total	$ 2,208

12. COMMITMENTS AND CONTINGEN73

12. COMMITMENTS AND CONTINGENCIES - financial instruments with off-balance-sheet credit risk (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Commitments to extend credit:
Collateralized Lines of Credit	$ 26,730	$ 32,639
Standby letters of credit	238	356
Revolving lines of credit secured by 1-4 family residences [Member]
Commitments to extend credit:
Collateralized Lines of Credit	727	1,447
Commercial real estate, construction and land development commitments secured by real estate [Member]
Commitments to extend credit:
Collateralized Lines of Credit	13,999	16,206
Other unused commitments, principally commercial loans [Member]
Commitments to extend credit:
Collateralized Lines of Credit	$ 12,004	$ 14,986

12. COMMITMENTS AND CONTINGEN74

12. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments And Contingencies Details Narrative
Rental expense	$ 837	$ 872	$ 865
Uninsured deposits	$ 4,126	$ 4,082

13. SHAREHOLDERS' EQUITY - Reco

13. SHAREHOLDERS' EQUITY - Reconciliation of the numerators and denominators (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stockholders' Equity Note [Abstract]
Basic earnings per share, Net Income (in dollars)	$ 5,268	$ 4,361	$ 3,057
Basic earnings per share, Weighted Average Number of Shares Outstanding (in shares)	7,561	8,130	8,888
Basic earnings per share (in dollars per share)	$ 0.70	$ 0.54	$ 0.34
Effect of dilutive stock-based compensation	18	14	6
Diluted earnings per share, Net Income (in dollars)	$ 5,268	$ 4,361	$ 3,057
Diluted earnings per share, Weighted Average Number of Shares Outstanding (in shares)	7,579	8,144	8,894
Diluted earnings per share (in dollars per share)	$ 0.70	$ 0.54	$ 0.34

13. SHAREHOLDERS' EQUITY - Summ

13. SHAREHOLDERS' EQUITY - Summary of the outstanding and nonvested stock option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Shares, Outstanding
Balance, Beginning	271,700
Options granted	26,427
Options vested	(10,017)
Options expired or canceled	(49,716)
Balance, Ending	248,411	271,700
Weighted Avrage Exercise Price Per Shares, Outstanding
Balance, Beginning	$ 16.27
Options granted	9.56
Options vested	2.40
Options expired or canceled	18.11
Balance, Ending	$ 15.19	$ 16.27
Shares, Nonvested
Balance, Beginning	43,118
Options granted	26,427
Balance, Ending	59,528	43,118
Weighted Avrage Exercise Price Per Shares, Nonvested
Balance, Beginning	$ 2.41
Options granted	3.24	$ 2.44
Balance, Ending	2.78	$ 2.41
Nonvested:
Weighted average exercise price of nonvested stock options	$ 8.60
Vested:
Number of vested stock options	188,883
Number of options expected to vest	56,216
Weighted average exercise price per share	$ 17.15
Aggregate intrinsic value	$ 135,879
Weighted average remaining contractual term in years	2 years 1 month 17 days

13. SHAREHOLDERS' EQUITY - Rang

13. SHAREHOLDERS' EQUITY - Range of exercise prices (Details) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	248,411	271,700
Number of options Exercisable	188,883
Exercise Price Range 7. 07 to 11. 66 [Member]
Number of Options Outstanding	118,808
Weighted Average Remaining Contractual Life	6 years 5 months 12 days
Number of Options Exercisable	59,280
Exercise Price Range 11.67 to 18.10 [Member]
Number of Options Outstanding	42,669
Weighted Average Remaining Contractual Life	2 years 1 month 24 days
Number of Options Exercisable	42,669
Exercise Price Range 18.11 to 24.07 [Member]
Number of Options Outstanding	86,934
Weighted Average Remaining Contractual Life	7 months 24 days
Number of Options Exercisable	86,934

13. SHAREHOLDERS' EQUITY - Rest

13. SHAREHOLDERS' EQUITY - Restricted stock (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stockholders' Equity Note [Abstract]
Nonvested, Shares	32,838
Nonvested, Weighted Average Grant Date Fair Value (in dollars per share)	$ 8.31
Awarded, Shares	45,023	24,830	11,448
Awarded, Weighted Average Grant Date Fair Value (in dollars per share)	$ 9.49
Vested, Shares	(20,344)
Vested, Weighted Average Grant Date Fair Value (in dollars per share)	$ 8.36
Nonvested, Shares	57,517	32,838
Nonvested, Weighted Average Grant Date Fair Value (in dollars per share)	$ 9.21	$ 8.31

13. SHAREHOLDERS' EQUITY (Detai

13. SHAREHOLDERS' EQUITY (Details Narrative) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	188,735	211,024	277,923
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	248,411	271,700
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	45,023	24,830	11,448
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award	Of the 45,023 restricted common shares, 12,552 will vest one year from the date of the award and 11,939 will vest 20% per year from the date of the award.
Weighted average contractual term over which the restricted stock will vest	1 year 2 months 19 days
Common Stock, Shares Outstanding	7,343,649	8,089,615
2000 Plan
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	171,950
2010 Plan
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,395,985

14. REGULATORY MATTERS - Capita

14. REGULATORY MATTERS - Capital adequacy requirements (Details) $ in Thousands	Dec. 31, 2014USD ($)
Tier 1 Risk Based Capital Ratio [Member] | American River Bankshares And Subsidiaries [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 risk-based capital ratio (in dollars)	$ 69,955
Tier 1 risk-based capital ratio	21.60%
Tier 1 Risk Based Capital Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 risk-based capital ratio (in dollars)	$ 70,216
Tier 1 risk-based capital ratio	21.70%
Total Risk Based Capital Ratio [Member] | American River Bankshares And Subsidiaries [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital ratio (in dollars)	$ 74,020
Total risk-based capital ratio	22.90%
Total Risk Based Capital Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital ratio (in dollars)	$ 74,277
Total risk-based capital ratio	22.90%
Leverage Ratio [Member] | American River Bankshares And Subsidiaries [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital leverage ratio (in dollars)	$ 69,955
Capital leverage ratio	11.60%
Leverage Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital leverage ratio (in dollars)	$ 70,216
Capital leverage ratio	11.70%
Well Capitalized Institution [Member] | Tier 1 Risk Based Capital Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 risk-based capital ratio (in dollars)	$ 19,419
Tier 1 risk-based capital ratio	6.00%
Well Capitalized Institution [Member] | Total Risk Based Capital Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital ratio (in dollars)	$ 32,490
Total risk-based capital ratio	10.00%
Well Capitalized Institution [Member] | Leverage Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital leverage ratio (in dollars)	$ 30,125
Capital leverage ratio	5.00%
Minimum Regulatory Requirment [Member] | Tier 1 Risk Based Capital Ratio [Member] | American River Bankshares And Subsidiaries [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 risk-based capital ratio (in dollars)	$ 12,957
Tier 1 risk-based capital ratio	4.00%
Minimum Regulatory Requirment [Member] | Tier 1 Risk Based Capital Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 risk-based capital ratio (in dollars)	$ 12,946
Tier 1 risk-based capital ratio	4.00%
Minimum Regulatory Requirment [Member] | Total Risk Based Capital Ratio [Member] | American River Bankshares And Subsidiaries [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital ratio (in dollars)	$ 26,014
Total risk-based capital ratio	8.00%
Minimum Regulatory Requirment [Member] | Total Risk Based Capital Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital ratio (in dollars)	$ 25,992
Total risk-based capital ratio	8.00%
Minimum Regulatory Requirment [Member] | Leverage Ratio [Member] | American River Bankshares And Subsidiaries [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital leverage ratio (in dollars)	$ 24,112
Capital leverage ratio	4.00%
Minimum Regulatory Requirment [Member] | Leverage Ratio [Member] | American River Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital leverage ratio (in dollars)	$ 24,100
Capital leverage ratio	4.00%

15. OTHER NONINTEREST INCOME 81

15. OTHER NONINTEREST INCOME AND EXPENSE - Other noninterest income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Income and Expenses [Abstract]
Merchant fee income	$ 378	$ 413	$ 443
Increase in cash surrender value of life insurance policies (Note 16)	316	284	247
Other	237	345	383
Other noninterest income	$ 931	$ 1,042	$ 1,073

15. OTHER NONINTEREST INCOME 82

15. OTHER NONINTEREST INCOME AND EXPENSE - Other noninterest expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other Income and Expenses [Abstract]
Professional fees	$ 863	$ 1,182	$ 933
Outsourced item processing	360	355	357
Directors' expense	402	394	348
Telephone and postage	368	357	329
Stationery and supplies	143	193	240
Advertising and promotion	164	160	284
Other operating expenses	662	736	596
Other noninterest expense	$ 2,962	$ 3,377	$ 3,087

16. EMPLOYEE BENEFIT PLANS (Det

16. EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Defined contribution plan, Employer matching contribution, Percent of match	100.00%
Defined contribution plan, Employer matching contribution percent, Description	3% of annual compensation plus 50% of the next 2% of annual compensation
Defined contribution plan, Employer matching contribution, Vesting percentage	100.00%
Contributions towards employees	$ 202	$ 178	$ 181
Deferred compensation plan, administration costs and accrues interest, rate on deferred balances, description	The Company bears all administration costs and accrues interest on the participants’ deferred balances at a rate based on U.S. Government Treasury rates plus 4.0%. This rate was 5.65% at December 31, 2015.
Deferred compensation plan, administration costs and accrues interest, base rate on deferred balances	U.S. Government Treasury Rate
Deferred compensation plan, administration costs and accrues interest, fixed rate on deferred balances	4.00%
Director [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Deferred compensation plan, description	Directors may also elect to defer up to one hundred percent of their monthly fees.

16. EMPLOYEE BENEFIT PLANS (D84

16. EMPLOYEE BENEFIT PLANS (Details Narrative 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
Deferred compensation, including interest earned	$ 2,837	$ 2,690
Expense recognized under deferred compensation plan	$ 156	150	$ 117
Salary continuation plan, Annual benefits period	up to 15 years
Accrued retirement benefits payable	$ 1,252	1,179
Expense recognized under salary continuation plan	168	142	170
Cash surrender value of life insurance	14,483	14,167
Tax-exempt income on life insurance, net of expense	$ 316	383	365
Tax-exempt income from death benefit proceeds of a life insurance policy on a former director		$ 99	$ 118

17. RELATED PARTY TRANSACTION85

17. RELATED PARTY TRANSACTIONS - summary of the aggregate activity involving related party borrowers (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Related Party Transactions [Roll Forward]
Balance, January 1, 2015	$ 3,821
Disbursements
Amounts repaid	$ (789)
Balance, December 31, 2015	$ 3,032

17. RELATED PARTY TRANSACTION86

17. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transactions Details Narrative
Rental payments to Director	$ 108	$ 107	$ 105

18. PARENT ONLY CONDENSED FIN87

18. PARENT ONLY CONDENSED FINANCIAL STATEMENTS - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 23,727	$ 22,449
Total Assets	634,640	617,754
Liabilities:
Other liabilities	6,875	6,414
Total liabilities	548,565	528,107
Shareholders' equity:
Common stock	49,554	57,126
Retained earnings	34,418	29,150
Accumulated other comprehensive income, net of taxes	2,103	3,371
Total shareholders' equity	86,075	89,647	$ 93,994
Total liabilities and shareholders' euity	634,640	617,754
Parent Company [Member]
ASSETS
Cash and due from banks	191	378
Investment in subsidiaries	86,503	89,908
Other assets	333	277
Total Assets	87,027	90,563
Liabilities:
Other liabilities	952	916
Total liabilities	952	916
Shareholders' equity:
Common stock	49,554	57,126
Retained earnings	34,418	29,150
Accumulated other comprehensive income, net of taxes	2,103	3,371
Total shareholders' equity	86,075	89,647
Total liabilities and shareholders' euity	$ 87,027	$ 90,563

18. PARENT ONLY CONDENSED FIN88

18. PARENT ONLY CONDENSED FINANCIAL STATEMENTS - CONDENSED STATEMENTS OF INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Expenses:
Professional fees	$ 863	$ 1,182	$ 933
Income tax benefit	(2,674)	(2,292)	(1,258)
Net income	5,268	4,361	3,057
Parent Company [Member]
Income:
Dividends declared by subsidiaries - eliminated in consolidation	$ 7,900	$ 4,250	$ 6,000
Management fee from subsidiaries - eliminated in consolidation
Other income
Total income	$ 7,900	$ 4,250	$ 6,000
Expenses:
Professional fees	97	89	91
Directors' expense	285	280	247
Other expenses	204	212	205
Total expenses	586	581	543
Income before equity in undistributed income of subsidiaries	7,314	3,669	5,457
Equity in (distributed) undistributed income of subsidiaries	(2,287)	453	(2,623)
Income before income taxes	5,027	4,122	2,834
Income tax benefit	241	239	223
Net income	$ 5,268	$ 4,361	$ 3,057

18. PARENT ONLY CONDENSED FIN89

18. PARENT ONLY CONDENSED FINANCIAL STATEMENTS - CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 5,268	$ 4,361	$ 3,057
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Equity-based compensation expense	271	166	131
(Increase) decrease in other assets	723	(298)	(1,821)
Net cash provided by (used in) operating activities	8,777	8,983	11,447
Cash flows from investing activities:
Purchases of equipment	(319)	(456)	(130)
Net cash provided by investing activities	(19,653)	(22,337)	(45,394)
Cash flows from financing activities:
Cash paid to repurchase common stock	(7,843)	(4,148)	(7,000)
Net cash used in financing activities	12,154	17,855	(3,566)
Net decrease in cash and cash equivalents	1,278	4,501	(37,513)
Cash and cash equivalents at beginning of year	22,449	17,948	55,461
Cash and cash equivalents at end of year	23,727	22,449	17,948
Parent Company [Member]
Cash flows from operating activities:
Net income	5,268	4,361	3,057
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Undistributed) distributed earnings of subsidiaries	2,287	(453)	2,623
Equity-based compensation expense	271	166	131
(Increase) decrease in other assets	(206)	(44)	1,004
Increase (decrease) in other liabilities	36	80	(60)
Net cash provided by (used in) operating activities	$ 7,656	$ 4,110	$ 6,755
Cash flows from investing activities:
Purchases of equipment
Sale of equipment
Net cash provided by investing activities
Cash flows from financing activities:
Cash paid to repurchase common stock	$ (7,843)	$ (4,148)	$ (7,000)
Net cash used in financing activities	(7,843)	(4,148)	(7,000)
Net decrease in cash and cash equivalents	(187)	(38)	(245)
Cash and cash equivalents at beginning of year	378	416	661
Cash and cash equivalents at end of year	$ 191	$ 378	$ 416

18. PARENT ONLY CONDENSED FIN90

18. PARENT ONLY CONDENSED FINANCIAL STATEMENTS - Selected Quarterly Information (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net interest income	$ 20,007	$ 18,797	$ 17,391
Provision for loan and lease losses	0	(541)	200
Noninterest income	237	345	383
Noninterest expense	2,962	3,377	3,087
Net income	$ 5,268	$ 4,361	$ 3,057
Basic earnings per share	$ 0.70	$ 0.54	$ 0.34
Diluted earnings per share	$ 0.70	$ 0.54	$ 0.34
First Quarter [Member]
Interest income	$ 4,902	$ 4,996
Net interest income	$ 4,654	$ 4,692
Provision for loan and lease losses
Noninterest income	$ 585	$ 502
Noninterest expense	3,813	3,653
Income before taxes	1,426	1,541
Net income	$ 956	$ 1,006
Basic earnings per share	$ 0.12	$ 0.12
Diluted earnings per share	$ 0.12	$ 0.12
Cash dividends per share
Price range, common stock	9.23-9.98	8.92-10.29
Second Quarter [Member]
Interest income	$ 5,283	$ 5,067
Net interest income	$ 5,039	$ 4,776
Provision for loan and lease losses
Noninterest income	$ 507	$ 508
Noninterest expense	3,415	3,699
Income before taxes	2,131	1,585
Net income	$ 1,386	$ 1,035
Basic earnings per share	$ 0.18	$ 0.13
Diluted earnings per share	$ 0.18	$ 0.13
Cash dividends per share
Price range, common stock	9.10-9.95	8.21-9.75
Third Quarter [Member]
Interest income	$ 5,458	$ 4,966
Net interest income	$ 5,218	4,679
Provision for loan and lease losses		(200)
Noninterest income	$ 490	520
Noninterest expense	3,432	3,662
Income before taxes	2,276	1,737
Net income	$ 1,469	$ 1,124
Basic earnings per share	$ 0.2	$ 0.14
Diluted earnings per share	$ 0.2	$ 0.14
Cash dividends per share
Price range, common stock	9.15-10.35	8.42-9.63
Fourth Quarter [Member]
Interest income	$ 5,325	$ 4,936
Net interest income	$ 5,096	4,650
Provision for loan and lease losses		(341)
Noninterest income	$ 433	647
Noninterest expense	3,420	3,848
Income before taxes	2,109	1,790
Net income	$ 1,457	$ 1,196
Basic earnings per share	$ 0.2	$ 0.15
Diluted earnings per share	$ 0.2	$ 0.15
Cash dividends per share
Price range, common stock	9.40-11.19	9.05-9.99