FNB Bancorp 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document and Entity Information:
Entity Registrant Name	FNB BANCORP/CA/
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,163,199
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		4,316,283
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollar amounts in thousands) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 40,282	$ 14,978
Interest-bearing time deposits with financial institutions	1,246	2,784
Securities available-for-sale, at fair value	315,560	264,881
Loans, net of allowance for loan losses of $9,940 and $9,700 on September 30, 2015 and December 31, 2014	696,888	583,715
Bank premises, equipment, and leasehold improvements, net	10,326	10,951
Bank owned life insurance	15,742	12,510
Other equity securities	6,748	5,769
Accrued interest receivable	4,326	3,725
Other real estate owned, net	838	763
Goodwill	4,580	1,841
Prepaid expenses	877	1,045
Other assets	14,044	14,202
Total assets	1,111,457	917,164
Deposits
Demand, noninterest bearing	262,206	202,811
Demand, interest bearing	84,682	89,548
Savings and money market	512,534	394,676
Time	129,943	105,159
Total deposits	989,365	792,194
Federal Home Loan Bank advances	0	9,000
Note Payable	5,100	5,550
Accrued expenses and other liabilities	13,302	13,332
Total liabilities	1,007,767	820,076
Stockholders' equity
Common stock, no par value, authorized 10,000,000 shares; issued and outstanding 4,316,180 shares at September 30, 2015 and 4,259,306 shares at December 31, 2014	67,852	66,791
Retained earnings	33,046	28,729
Accumulated other comprehensive income, net of tax	2,792	1,568
Total stockholders' equity	103,690	97,088
Total liabilities and stockholders' equity	$ 1,111,457	$ 917,164

CONSOLIDATED BALANCE SHEETS (Do

CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Allowance for loan losses	$ 9,940	$ 9,700
Common Stock, shares authorized	10,000,000	10,000,000
Common Stock, shares issued	4,316,180	4,259,306
Common Stock, shares outstanding	4,316,180	4,259,306

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (Dollar amounts in thousands) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest income:
Interest and fees on loans	$ 8,309	$ 7,899	$ 23,874	$ 23,423
Interest on taxable securities	924	883	2,597	2,577
Interest on tax-exempt securities	651	498	1,754	1,478
Interest time deposits with other financial institutions	9	20	36	66
Total interest income	9,893	9,300	28,261	27,544
Interest expense:
Interest on deposits	635	472	1,625	1,417
Interest on FHLB advances	1	3	2	14
Interest on note payable	57	63	173	131
Total interest expense	693	538	1,800	1,562
Net interest income	9,200	8,762	26,461	25,982
Provision for loan losses	75	0	225	75
Net interest income after provision for loan losses	9,125	8,762	26,236	25,907
Noninterest income:
Service charges	618	644	1,854	1,928
Net gain on sale of available-for-sale securities	29	100	250	139
Bank owned life insurance earnings	90	86	261	273
Other income	287	211	1,002	727
Total noninterest income	1,024	1,041	3,367	3,067
Noninterest expense:
Salaries and employee benefits	4,100	4,241	12,513	12,636
Occupancy expense	592	704	1,906	2,078
Equipment expense	718	405	1,533	1,202
Professional fees	334	395	1,075	1,427
FDIC assessment	150	165	450	525
Telephone, postage and supplies	237	284	782	883
Advertising	112	118	381	339
Data processing expense	659	151	940	430
Low income housing expense	70	109	212	329
Surety insurance	122	68	298	202
Directors expense	72	63	216	189
Loss (gain) on sale of other real estate owned, net	0	0	0	(220)
Other real estate owned expense, net	0	0	(6)	87
Other expense	313	352	911	1,000
Total noninterest expense	7,479	7,055	21,211	21,107
Earnings before provision for income tax expense	2,670	2,748	8,392	7,867
Provision for income tax expense	431	925	2,283	2,581
Net earnings	2,239	1,823	6,109	5,286
Dividends and discount accretion on preferred stock	0	0	0	170
Net earnings available to common stockholders	$ 2,239	$ 1,823	$ 6,109	$ 5,116
Earnings per share data:
Basic	$ 0.52	$ 0.43	$ 1.42	$ 1.21
Diluted	$ 0.51	$ 0.42	$ 1.38	$ 1.17
Weighted average shares outstanding:
Basic	4,309	4,250	4,293	4,222
Diluted	4,422	4,384	4,414	4,364

CONSOLIDATED STATEMENTS OF EAR5

CONSOLIDATED STATEMENTS OF EARNINGS (Dollar amounts in thousands) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues [Abstract]
Net earnings	$ 2,239	$ 1,823	$ 6,109	$ 5,286
Unrealized holding gain (loss) on available-for-sale securities, net of tax (expense) benefit of ($988) and ($953) for three and nine months ended September 30, 2015, and net of tax benefit (expense) of $185 and ($1,567) for three and nine months ended September 30, 2014	1,422	(266)	1,372	2,256
Reclassification adjustment for gain on available-for-sale securities sold, net of tax of $12 and $103 for three and nine months ended September 30, 2015, and $41 and $57 for three and nine months ended September 30, 2014, respectively	(17)	(59)	(147)	(82)
Other Comprehensive Earnings (loss)	1,405	(325)	1,225	2,174
Total comprehensive earnings	$ 3,644	$ 1,498	$ 7,334	$ 7,460

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parentheticals) (Dollar amounts in thousands) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Comprehensive Earnings Parentheticals
Tax (expense) benefit on unrealized holding gain (loss) on available-for-sale securities	$ (988)	$ 185	$ (953)	$ (1,567)
Tax on reclassification adjustment for gain on available-for-sale	$ 12	$ 41	$ 103	$ 57

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollar amounts in thousands) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flow from operating activities:
Net earnings	$ 6,109	$ 5,286
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net gain on sale of securities available-for-sale	(250)	(139)
Depreciation, amortization and accretion	2,553	2,599
Gain on sale of other real estate owned, net	0	(220)
Stock-based compensation expense	183	208
Earnings on bank owned life insurance	(261)	(273)
Increase in net deferred loan fees	51	(54)
Provision for loan losses	225	75
(Increase) decrease in accrued interest receivable	(288)	138
Decrease in prepaid expense	1,976	257
Increase in other assets	2,888	(117)
(Decrease) increase in accrued expenses and other liabilities	(5,027)	409
Net cash provided by operating activities	8,159	8,169
Cash flows from investing activities:
Purchase of securities available-for-sale	(90,590)	(32,703)
Proceeds from matured/called/sold securities available-for-sale	40,514	30,893
Net (investment) in other equity securities	(300)	(469)
Acquisition, net of cash paid	(18,481)	0
Maturities of time deposits of other banks	9,374	1,475
Proceeds from sale of other real estate owned	0	1,461
Net investment in other real estate owned	(75)	(78)
Net increase in loans	(20,480)	(12,811)
Purchases of bank premises, equipment, leasehold improvements	(144)	(629)
Net cash used in investing activities	(80,182)	(12,861)
Cash flows from financing activities:
Net increase in demand and savings deposits	109,085	28,662
Net decrease in time deposits	(2,040)	(20,121)
Increase (decrease) of FHLB advances	(9,000)	1,000
Proceeds from note payable	0	6,000
Principal repayment on note payable	(450)	(300)
Dividends paid on common stock	(1,146)	(848)
Exercise of stock options	878	1,132
Redemption of preferred stock series C	0	(9,450)
Dividends paid on preferred stock series C	0	(170)
Net cash provided by financing activities	97,327	5,905
NET INCREASE IN CASH AND CASH EQUIVALENTS	25,304	1,213
Cash and cash equivalents at beginning of period	14,978	14,007
Cash and cash equivalents at end of period	40,282	15,220
Additional cash flow information:
Interest paid	1,745	1,568
Income taxes paid	1,938	2,387
Tax benefit on exercise of stock options	154	457
Non-cash investing and financing activities:
Accrued dividends	646	446
Change in unrealized gain in available for-sale securities, net of tax	1,224	2,174
OREO sale funded by loan origination	0	3,400
Acquisitions:
Fair value of assets acquired	115,127	0
Fair value of liabilities assumed	$ 93,627	$ 0

A. BASIS OF PRESENTATION

A. BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION
BASIS OF PRESENTATION	FNB Bancorp (the “Company”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Company was incorporated under the laws of the State of California on February 28, 2001. The consolidated financial statements include the accounts of FNB Bancorp and its wholly-owned subsidiary, First National Bank of Northern California (the “Bank”). The Bank provides traditional banking services in San Francisco, San Mateo, and Santa Clara counties. All intercompany transactions and balances have been eliminated in consolidation. The financial statements include all adjustments of a normal and recurring nature, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes normally included in annual financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Accordingly, these consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto for the year ended December 31, 2014. Results of operations for interim periods are not necessarily indicative of results for the full year. Certain prior year information has been reclassified to conform to current year presentation. The reclassifications had no impact on consolidated net earnings or stockholders’ equity.

B. STOCK OPTION PLANS

B. STOCK OPTION PLANS	9 Months Ended
	Sep. 30, 2015
Share-based Compensation [Abstract]
STOCK OPTION PLANS	Stock option expense is recorded based on the fair value of option contracts issued. The fair value is determined using an option pricing model that considers the expected contract term, the risk free interest rate, the volatility of the Company’s stock price and the level of dividends the Company is expected to pay. The expected term of options granted is derived from historical plan behavior and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U. S. Treasury yield curve in effect at the time of the grant. The amount of compensation expense for options recorded in the quarter ended September 30, 2015 was $61,000 and $69,000 for the quarter ended September 30, 2014. There was no income tax benefit for the quarter ended September 30, 2015, and an income tax benefit of $24,000 for the quarter ended September 30, 2014. The amount of compensation expense for options recorded in the nine months ended September 30, 2015 and September 30, 2014 was $183,000 and $208,000, respectively. There was an income tax benefit of $154,000 and $294,000 for the nine months ended September 30, 2015 and September 30, 2014, respectively. The intrinsic value for options exercised during the nine months ended September 30, 2015 was $671,000. The intrinsic value for options exercised during the nine months ended September 30, 2014 was $848,000. The intrinsic value for options exercisable at September 30, 2015 was $3,042,000. The amount of total unrecognized compensation expense related to non-vested options at September 30, 2015 was $569,000, and the weighted average period over which it will be amortized is 3.1 years.

C. EARNINGS PER SHARE CALCULATI

C. EARNINGS PER SHARE CALCULATION	9 Months Ended
	Sep. 30, 2015
Earnings per share data:
EARNINGS PER SHARE CALCULATION	Earnings per common share (EPS) are computed based on the weighted average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing net earnings available to common stockholders (after deducting dividends and related accretion on preferred stock) by the weighted average of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of potential common shares included in the quarterly diluted EPS is computed using the average market price during the three months included in the reporting period under the treasury stock method. The number of potential common shares included in year-to-date diluted EPS is a year-to-date weighted average of potential shares included in each quarterly diluted EPS computation. All common stock equivalents are anti-dilutive when a net loss occurs. A 5% stock dividend was declared in the fourth quarter of 2014, paid in 2015, and prior per share amounts have been adjusted to reflect the 5% stock dividend. Earnings per share have been computed based on the following: (All amounts in thousands) Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Net earnings $ 2,239 $ 1,823 $ 6,109 $ 5,286 Dividends and discount accretion on preferred stock — — — 170 Net earnings available to common shareholders $ 2,239 $ 1,823 $ 6,109 $ 5,116 Average number of shares outstanding 4,309 4,250 4,293 4,222 Effect of dilutive options 113 134 121 142 Average number of shares outstanding used to calculate diluted earnings per share 4,422 4,384 4,414 4,364 Anti-dilutive options not included 93 65 94 65

D. SECURITIES AVAILABLE FOR SAL

D. SECURITIES AVAILABLE FOR SALE	9 Months Ended
	Sep. 30, 2015
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE	The amortized cost and fair values of securities available-for-sale are as follows: (Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value September 30, 2015 U.S. Treasury securities $ 5,996 $ 83 $ — $ 6,079 Obligations of U.S. government agencies 79,446 719 (12 ) 80,153 Mortgage-backed securities 62,221 1,355 (80 ) 63,496 Obligations of states and political subdivisions 122,607 2,652 (231 ) 125,028 Corporate debt 40,557 292 (45 ) 40,804 $ 310,827 $ 5,101 $ (368 ) $ 315,560 December 31, 2014 U.S. Treasury securities $ 3,975 $ 12 $ (29 ) $ 3,958 Obligations of U.S. government agencies 63,090 270 (298 ) 63,062 Mortgage-backed securities 78,076 1,002 (661 ) 78,417 Obligations of states and political subdivisions 82,151 2,534 (143 ) 84,542 Corporate debt 34,931 176 (205 ) 34,902 $ 262,223 $ 3,994 $ (1,336 ) $ 264,881 An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 2015 and December 31, 2014 follows: (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2015 U.S. Treasury securities $ — $ — $ — $ — $ — $ — Obligations of U.S. Government agencies 3,987 (4 ) 5,035 (8 ) 9,022 (12 ) Mortgage-backed securities — — 14,416 (80 ) 14,416 (80 ) Obligations of states and political subdivisions 27,308 (200 ) 1,842 (31 ) 29,150 (231 ) Corporate debt 10,475 (29 ) 1,986 (16 ) 12,461 (45 ) Total $ 41,770 $ (233 ) $ 23,279 $ (135 ) $ 65,049 $ (368 ) (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses December 31, 2014: U. S. Treasury securities $ — $ — $ 2,015 $ (29 ) $ 2,015 $ (29 ) Obligations of U.S. Government agencies 13,178 (43 ) 19,116 (255 ) 32,294 (298 ) Mortgage-backed securities 5,056 (10 ) 36,382 (651 ) 41,438 (661 ) Obligations of states and political subdivisions 8,678 (49 ) 5,696 (94 ) 14,374 (143 ) Corporate debt 18,065 (125 ) 4,919 (80 ) 22,984 (205 ) Total $ 44,977 $ (227 ) $ 68,128 $ (1,109 ) $ 113,105 $ (1,336 ) At September 30, 2015, there were twenty The amortized cost and carrying value of available-for-sale debt securities as of September 30, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2015: (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 12,762 $ 12,853 Due after one through five years 139,399 141,174 Due after five years through ten years 130,249 132,506 Due after ten years 28,417 29,027 $ 310,827 $ 315,560 For the nine months ended September 30, 2015, gross realized gains amounted to $250,000 on securities sold for $11,463,000. For the nine months ended September 30, 2014, gross realized gains amounted to $151,000 on securities sold for $10,505,000. For the nine months ended September 30, 2015, there were no gross realized losses on securities sold. For the nine months ended September 30, 2014, there were $12,000 gross realized losses on securities sold for $2,109,000. For the three months ended September 30, 2015, gross realized gains amounted to $29,000 on securities sold for $3,187,000. For the three months ended September 30, 2014, gross realized gains were $112,000 on securities sold for $5,219,000. For the three months ended September 30, 2015, there were no gross realized losses on securities sold. For the three months ended September 30, 2014, gross realized losses were $12,000 on securities sold for $1,849,000. At September 30, 2015, securities with an amortized cost of $102,182,000 and fair value of $103,776,000 were pledged as collateral for public deposits and for other purposes required by law.

E. LOANS

E. LOANS	9 Months Ended
	Sep. 30, 2015
LOANS
LOANS	Loans are summarized as follows at September 30, 2015 and December 31, 2014: (Dollar amounts in thousands) Total FNB Balance Bancorp September 30, September 30, 2015 Originated PNCI PCI 2015 Commercial real estate $ 304,276 $ 88,493 $ 1,321 $ 394,090 Real estate construction 30,395 5,473 — 35,868 Real estate multi-family 47,264 16,664 — 63,928 Real estate 1 to 4 family 151,159 21,121 — 172,280 Commercial & industrial 27,817 12,026 — 39,843 Consumer 1,497 — — 1,497 Gross loans 562,408 143,777 1,321 707,506 Net deferred loan fees (678 ) — — (678 ) Allowance for loan losses (9,940 ) — — (9,940 ) Net loans $ 551,790 $ 143,777 $ 1,321 $ 696,888 (Dollar amounts in thousands) Total FNB Balance Bancorp December 31, December 31, 2014 Originated PNCI PCI 2014 Commercial real estate $ 285,252 $ 31,852 $ 1,323 $ 318,427 Real estate construction 37,827 1,944 — 39,771 Real estate multi-family 43,379 10,445 — 53,824 Real estate 1 to 4 family 123,522 5,210 — 128,732 Commercial & industrial 42,551 9,111 — 51,662 Consumer 1,448 — — 1,448 Gross loans 533,979 58,562 1,323 593,864 Net deferred loan fees (449 ) — — (449 ) Allowance for loan losses (9,700 ) — — (9,700 ) Net loans $ 523,830 $ 58,562 $ 1,323 $ 583,715 Note: PNCI means Purchased, Not Credit Impaired. PCI means Purchased, Credit Impaired. Allowance for Credit Losses For the Three Months Ended September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,027 $ 697 $ 198 $ 2,014 $ 848 $ 52 $ 9,836 Charge-offs — — — — (23 ) — (23 ) Recoveries 15 — — 7 26 4 52 Provision (67 ) (49 ) (10 ) 289 (73 ) (15 ) 75 Ending balance $ 5,975 648 188 2,310 $ 778 $ 41 $ 9,940 Ending balance individually evaluated for impairment $ 126 $ — $ — $ 522 $ 224 $ — $ 872 Ending balance: $ 5,849 $ 648 $ 188 $ 1,788 $ 554 $ 41 $ 9,068 Allowance for Credit Losses For the Nine Months Ended September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs — — — (45 ) (23 ) (11 ) (79 ) Recoveries 37 — — 8 45 4 94 Provision 389 (201 ) (18 ) 382 (317 ) (10 ) 225 Ending balance $ 5,975 $ 648 $ 188 $ 2,310 $ 778 $ 41 $ 9,940 Ending balance: $ 126 $ — $ — $ 522 $ 224 $ — $ 872 Ending balance: $ 5,849 $ 648 $ 188 $ 1,788 $ 554 $ 41 $ 9,068 Recorded Investment in Loans at September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 394,090 $ 35,868 $ 63,928 $ 172,280 $ 39,843 $ 1,497 $ 707,506 Ending balance: $ 9,501 $ 2,162 $ — $ 4,857 $ 1,813 $ — $ 18,333 Ending balance: $ 384,589 $ 33,706 $ 63,928 $ 167,423 $ 38,030 $ 1,497 $ 689,173 Allowance for Credit Losses As of and For the Year Ended December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Charge-offs (83 ) (183 ) — (62 ) (28 ) (26 ) (382 ) Recoveries 1,062 — — 3 154 4 1,223 Provision (1,193 ) 298 (87 ) 236 (290 ) 16 (1,020 ) Ending balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Ending balance: $ 101 $ — $ — $ 432 $ 225 $ 8 $ 766 Ending balance: $ 5,448 $ 849 $ 206 $ 1,533 $ 848 $ 50 $ 8,934 Recorded Investment in Loans at December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 318,427 $ 39,771 $ 53,824 $ 128,732 $ 51,662 $ 1,448 $ 593,864 Ending balance: $ 9,530 $ 2,373 $ — $ 4,333 $ 2,315 $ 64 $ 18,615 Ending balance: $ 308,897 $ 37,398 $ 53,824 $ 124,399 $ 49,347 $ 1,384 $ 575,249 Allowance for Credit Losses For the Three Months Ended September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,215 $ 717 $ 465 $ 2,250 $ 1,166 $ 46 $ 10,859 Provision 495 (150 ) (202 ) (193 ) 27 23 — Charge-offs (83 ) — — — (17 ) (6 ) (106 ) Recoveries 5 — — 1 14 1 21 Ending balance $ 6,632 $ 567 $ 263 $ 2,058 $ 1,190 $ 64 $ 10,774 Ending balance: $ 111 $ — $ — $ 429 $ 177 $ — $ 717 Ending balance: $ 6,521 $ 567 $ 263 $ 1,629 $ 1,013 $ 64 $ 10,057 Allowance for Credit Losses For the Nine Months Ended September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Provision (105 ) 16 (30 ) 330 (158 ) 22 75 Charge-offs (83 ) (183 ) — (62 ) (28 ) (26 ) (382 ) Recoveries 1,057 — — 2 139 4 1,202 Ending balance $ 6,632 $ 567 $ 263 $ 2,058 $ 1,190 $ 64 $ 10,774 Ending balance: $ 111 $ — $ — $ 429 $ 177 $ — $ 717 Ending balance: $ 6,521 $ 567 $ 263 $ 1,629 $ 1,013 $ 64 $ 10,057 Recorded Investment in Loans at September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 320,695 $ 34,701 $ 53,721 $ 120,233 $ 48,916 $ 1,483 $ 579,749 Ending balance: $ 10,158 $ 2,378 $ — $ 4,292 $ 2,170 $ — $ 18,998 Ending balance: $ 310,537 $ 32,323 $ 53,721 $ 115,941 $ 46,746 $ 1,483 $ 560,751 Impaired Loans As of and for the nine months ended September 30, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,392 $ 5,271 $ — $ 4,867 $ 217 Commercial real estate construction 2,162 2,345 — 2,359 100 Real estate - multi family — — — — — Residential - 1 to 4 family 1,475 1,476 — 1,482 49 Commercial and industrial 528 782 — 4,410 27 Total 8,557 9,874 — 13,118 393 With an allowance recorded Commercial real estate $ 5,109 $ 5,113 $ 126 $ 5,162 $ 196 Commercial real estate construction — — — — — Residential - 1 to 4 family 3,382 2,972 522 3,202 96 Commercial and industrial 1,285 1,539 224 1,489 5 Consumer — — — — — Total 9,776 9,624 872 9,853 297 Total Commercial real estate $ 9,501 $ 10,384 $ 126 $ 10,029 $ 413 Commercial real estate construction 2,162 2,345 — 2,359 100 Real estate - multi family — — — — — Residential - 1 to 4 family 4,857 4,448 522 4,684 145 Commercial and industrial 1,813 2,321 224 5,899 32 Consumer — — — — — Grand total $ 18,333 $ 19,498 $ 872 $ 22,971 $ 690 Impaired Loans As of and for the year ended December 31, 2014 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,462 $ 5,333 $ — $ 4,473 $ 304 Commercial real estate construction 2,373 2,556 — 1,846 150 Residential- 1 to 4 family 1,594 1,737 — 1,379 67 Commercial and industrial 582 939 — 788 54 Total 9,011 10,565 — 8,486 575 With an allowance recorded Commercial real estate $ 5,068 $ 5,071 $ 101 $ 5,127 $ 258 Residential- 1 to 4 family 2,739 2,754 432 2,759 111 Commercial and industrial 1,733 2,100 225 1,907 33 Consumer 64 64 8 67 5 Total 9,604 9,989 766 9,860 407 Total Commercial real estate $ 9,530 $ 10,404 $ 101 $ 9,600 $ 562 Commercial real estate construction 2,373 2,556 — 1,846 150 Residential- 1 to 4 family 4,333 4,491 432 4,138 178 Commercial and industrial 2,315 3,039 225 2,695 87 Consumer 64 64 8 67 5 Grand total $ 18,615 $ 20,554 $ 766 $ 18,346 $ 982 Average recorded investment on impaired loans was $22,971,000 Nonaccrual loans totaled $5,192,000 and $5,648,000 as of September 30, 2015 and December 31, 2014. The difference between impaired loans and nonaccrual loans represents loans that are restructured, are performing under modified loan agreements, and accruing interest. Loans on Nonaccrual Status as of (Dollar amounts in thousands) September 30, December 31, 2015 2014 Commercial real estate $ 2,094 $ 2,111 Real estate - construction — — Real estate 1 to 4 family 1,285 1,181 Commercial and industrial 1,813 2,292 Consumer — 64 Total $ 5,192 $ 5,648 Interest income on impaired loans of $690,000 was recognized for cash payments received during the nine months ended September 30, 2015, and $982,000 was recognized for cash payments received during the year ended December 31, 2014. Interest income recognized for cash payments received for the three months ended September 30, 2015 was $222,000 and for the three months ended September 30, 2014 was $291,000. Interest income recognized for cash payments received for the nine months ended September 30, 2014 was $746,000. The amount of interest on impaired loans not collected for the nine months ended September 30, 2015 was $284,000 and for the year ended December 31, 2014 was $91,000. The cumulative amount of unpaid interest on impaired loans was $3,228,000 for the nine months ended September 30, 2015, and $2,944,000 for the year ended December 31, 2014. Total outstanding principal of troubled debt restructured loans as of September 30, 2015 was $15,841,000, of which $9,346,000 was commercial real estate loans, $1,291,000 was real estate construction loans, $3,596,000 was real estate one to four family loans, and $1,608,000 was commercial and industrial loans. Total outstanding principal of troubled debt restructured loans at December 31, 2014 was $16,517,000, of which $9,498,000 was commercial real estate loans, $1,304,000 was real estate construction loans, $3,661,000 was real estate one to four family loans, and $2,054,000 was commercial and industrial loans. Troubled Debt Restructurings Total troubled debt restructured loans outstanding at (dollars in thousands) September 30, 2015 December 31, 2014 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 7,265 $ 2,081 $ 9,346 $ 7,407 $ 2,091 $ 9,498 Real Estate construction 1,291 — 1,291 1,304 — 1,304 Real estate 1 to 4 family 3,596 — 3,596 3,153 508 3,661 Commercial & industrial — 1,608 1,608 294 1,760 2,054 Total $ 12,152 $ 3,689 $ 15,841 $ 12,158 $ 4,359 $ 16,517 Modification Categories The Company offers a variety of modifications to borrowers. The modification categories offered can generally be described in the following categories. Rate Modification Term modification Interest Only Modification Payment Modification As of September 30, 2015, there were no commitments for additional funding of troubled debt restructured loans. Modifications For the nine months ended September 30, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 474 $ 474 Total 1 $ 474 $ 474 All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. There were no payment defaults during the nine month period ended September 30, 2015 that were related to receivables modified as TDRs in the last twelve months. There were no modifications for the three months ended September 30, 2015. There were no payment defaults during the three month period ended September 30, 2015 that were related to receivables modified as TDRs in the last twelve months. Modifications For the nine months ended September 30, 2014 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 575 $ 569 Commercial real estate 3 1,454 1,449 Total 4 $ 2,029 $ 2,018 There were no modifications in the three months ended September 30, 2014. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. There were no payment defaults during the three or nine month periods ended September 30, 2014 that were related to receivables modified as TDRs in the last twelve months. Risk rating system Loans to borrowers graded as pass or pooled loans represent loans to borrowers of acceptable or better credit quality. They demonstrate sound financial positions, repayment capacity and credit history. They have an identifiable and stable source of repayment. Special mention loans have potential weaknesses that deserve management’s attention. If left uncorrected these potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. These assets are “not adversely classified” and do not expose the Bank to sufficient risk to warrant adverse classification. Substandard loans are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans are normally classified as Substandard when there are unsatisfactory characteristics causing more than acceptable levels of risk. A substandard loan normally has one or more well-defined weaknesses that could jeopardize the repayment of the debt. These well-defined weaknesses may include a) cash flow deficiency, which may jeopardize future payments; b) sale of non-collateral assets has become primary source of repayment; c) the borrower is bankrupt; or d) for any other reason, future repayment is dependent on court action. Doubtful loans represent credits with weakness inherent in the substandard classification and where collection or liquidation in full is highly questionable. To be classified doubtful, there must be specific pending factors which prevent the Loan Review Officer from determining the amount of loss contained in the credit. When the amount of loss can be reasonably estimated, that amount is classified as “loss” and the remainder is classified as Substandard. Real Estate – Multi-Family Our multi-family commercial real estate loans are secured by multi-family properties located primarily in San Mateo and San Francisco Counties. These loans are made to investors where our primary source of repayment is from cash flows generated by the properties, through rent collections. The borrowers’ promissory notes are secured with recorded liens on the underlying properties. The borrowers would normally also be required to personally guarantee repayment of the loans. The bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. Commercial Real Estate Loans Other commercial real estate loans consist of loans secured by non-farm, non-residential properties, including, but not limited to industrial, hotel, assisted care, retail, office and mixed use buildings. Our commercial real estate loans are made primarily to investors or small businesses where our primary source of repayment is from cash flows generated by the properties, either through rent collection or business profits. The borrower’s promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. Real Estate Construction Loans Our real estate construction loans are generally made to borrowers who are rehabilitating a building, converting a building use from one type of use to another, or developing land and building residential or commercial structures for sale or lease. The borrower’s promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have sufficient resources to make the required construction loan payments during the construction and absorption or lease-up period. After construction is complete, the loans are normally paid off from proceeds from the sale of the building or through a refinance to a commercial real estate loan. Risk of loss to the Bank is increased when there are material construction cost overruns, significant delays in the time to complete the project and/or there has been a material drop in the value of the projects in the marketplace since the inception of the loan. Real Estate-1 to 4 family Loans Our residential real estate loans are generally made to borrowers who are buying or refinancing their primary personal residence or a rental property of 1-4 single family residential units. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income and/or property values decline significantly. Commercial and Industrial Loans Our commercial and industrial loans are generally made to small businesses to provide them with at least some of the working capital necessary to fund their daily business operations. These loans are generally either unsecured or secured by fixed assets, accounts receivable and/or inventory. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when our small business customers experience a significant business downturn, incur significant financial losses, or file for relief from creditors through bankruptcy proceedings. Consumer Loans Our consumer and installment loans generally consist of personal loans, credit card loans, automobile loans or other loans secured by personal property. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased if borrowers lose their primary source of income, or file for relief from creditors through bankruptcy proceedings. Age Analysis of Past Due Loans As of September 30, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ — $ — $ — $ — $ 304,276 $ 304,276 Real estate construction — 713 — 713 29,682 30,395 Real estate multi family — — — — 47,264 47,264 Real estate-1 to 4 family — — 611 611 150,548 151,159 Commercial and industrial — — 1,813 1,813 26,004 27,817 Consumer — — — — 1,497 1,497 Total $ — $ 713 $ 2,424 $ 3,137 $ 559,271 $ 562,408 Purchased Not credit impaired Commercial real estate $ 531 $ 3,778 $ — $ 4,309 $ 84,184 $ 88,493 Real estate construction — — — — 5,473 5,473 Real estate multi-family — — — — 16,664 16,664 Real estate-1 to 4 family 14 — 400 414 20,707 21,121 Commercial and industrial — — — — 12,026 12,026 Total $ 545 $ 3,778 $ 400 $ 4,723 $ 139,054 $ 143,777 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,321 $ 1,321 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate-1 to 4 family — — — — — — Commercial and industrial — — — — — — Consumer — — — — — — Total $ — $ — $ — $ — $ 1,321 $ 1,321 At September 30, 2015, there were no loans 90 days or more past due where interest was still accruing. The over 90 days column includes nonaccruals that were over 90 days, but does not include loans that are in nonaccrual status for reasons other than past due. Age Analysis of Past Due Loans As of December 31, 2014 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 8 $ 879 $ — $ 887 $ 284,365 $ 285,252 Real estate construction — 708 — 708 37,119 37,827 Real estate multi family 3,575 — — 3,575 39,804 43,379 Real estate 1 to 4 family 330 200 1,112 1,642 121,880 123,522 Commercial & industrial 775 73 1,710 2,558 39,993 42,551 Consumer — — 64 64 1,384 1,448 Total $ 4,688 $ 1,860 $ 2,886 $ 9,434 $ 524,545 $ 533,979 Purchased Not credit impaired Commercial real estate $ — $ — $ — — $ 31,852 $ 31,852 Real estate construction — — — — 1,944 1,944 Real estate multi-family — — — — 10,445 10,445 Real estate 1 to 4 family — 400 — 400 4,810 5,210 Commercial & industrial — — — — 9,111 9,111 Total $ — $ 400 $ — $ 400 $ 58,162 $ 58,562 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,323 $ 1,323 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate 1 to 4 family — — — — — — Commercial & industrial — — — — — — Total $ — $ — $ — $ — $ 1,323 $ 1,323 At December 31, 2014 there were no loans that were 90 days or more past due where interest was still accruing. Credit Quality Indicators As of September 30, 2015 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 298,182 $ 1,862 $ 4,232 $ — $ 304,276 Real estate construction 29,333 — 1,062 — 30,395 Real estate multi-family 47,264 — — — 47,264 Real estate-1 to 4 family 150,346 — 813 — 151,159 Commercial and industrial 27,211 — 441 165 27,817 Consumer loans 1,497 — — — 1,497 Totals $ 553,833 $ 1,862 $ 6,548 $ 165 $ 562,408 Purchased Not credit impaired Commercial real estate $ 66,703 $ 7,745 $ 14,031 $ 14 $ 88,493 Real estate construction 5,473 — — — 5,473 Real estate multi-family 16,664 — — — 16,664 Real estate-1 to 4 family 20,720 — 401 — 21,121 Commercial and industrial 11,931 — 95 — 12,026 Total $ 121,491 $ 7,745 $ 14,527 $ 14 $ 143,777 Credit impaired Commercial real estate $ 1,321 Total $ 1,321 Credit Quality Indicators As of December 31, 2014 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 281,216 $ 1,913 $ 2,031 $ 92 $ 285,252 Real estate construction 36,692 — 1,135 — 37,827 Real estate multi-family 43,379 — — — 43,379 Real estate 1 to 4 family 122,499 — 1,023 — 123,522 Commercial & industrial 41,394 — 1,157 — 42,551 Consumer loans 1,384 — 64 — 1,448 Totals $ 526,564 $ 1,913 $ 5,410 $ 92 $ 533,979 Purchased Not credit impaired Commercial real estate $ 26,009 $ — $ 5,843 $ — $ 31,852 Real estate construction 1,944 — — — 1,944 Real estate multi-family 10,445 — — — 10,445 Real estate 1 to 4 family 4,810 — — 400 5,210 Commercial & industrial 9,111 — — — 9,111 Total $ 52,319 $ — $ 5,843 $ 400 $ 58,562 Purchased Credit impaired Commercial real estate $ 1,323 Total $ 1,323

F. BORROWINGS

F. BORROWINGS	9 Months Ended
	Sep. 30, 2015
BORROWINGS
BORROWINGS	Federal Home Loan Bank advances There were no overnight advances at September 30, 2015. Corporate loan On March 27, 2014, FNB Bancorp received funding under a $6,000,000 term loan credit facility. This loan carries a variable rate of interest that fluctuates on a monthly basis. The interest rate is based on the 3 month LIBOR rate plus 4%. Payments of $50,000 in principal plus accrued interest are payable monthly. The first loan payment was due May 1, 2014. The maturity date on this credit facility is March 26, 2019. On the maturity date, all outstanding principal plus accrued interest shall become due and payable. FNB Bancorp has pledged its stock ownership in First National Bank of Northern California as collateral subject to the terms and conditions contained in the Loan Agreement and the Pledge and Security Agreement. FNB Bancorp retains the right to prepay this debt at any time upon not less than 7 days’ prior written notice to Lender. The proceeds from this loan were contributed to the Bank as an additional capital contribution. This capital contribution qualified as Tier 1 capital for the Bank under regulatory capital guidelines.

G. FAIR VALUE MEASUREMENT

G. FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2015
FAIR VALUE MEASUREMENT TABLES
FAIR VALUE MEASUREMENT	The following tables present information about the Company’s assets and liabilities measured at fair value as of September 30, 2015 and December 31, 2014, and indicate the fair value techniques used 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. 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. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company’s quarterly valuation process. During the first nine months of 2015 and 2014, there were no transfers between levels of fair value hierarchy. The following table presents the recorded amounts of assets measured at fair value on a recurring basis: Fair Value Measurements (Dollar amounts in thousands) at September 30, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 9/30/2015 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 6,079 $ 6,079 $ $ — Obligations of U.S. Government agencies 80,153 — 80,153 — Mortgage-backed securities 63,496 — 63,496 — Obligations of states and political subdivisions 125,028 — 125,028 — Corporate debt 40,804 — 40,804 — Total assets measured at fair value $ 315,560 $ 6,079 $ 309,481 $ — Fair Value Measurements (Dollar amounts in thousands) at December 31, 2014, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 3,958 $ 3,958 $ — $ — Obligations of U.S. Government agencies 63,062 — 63,062 — Mortgage-backed securities 78,417 — 78,417 — Obligations of states and political subdivisions 84,542 — 84,542 — Corporate debt 34,902 — 34,902 — Total assets measured at fair value $ 264,881 $ 3,958 $ 260,923 $ — The following tables present the recorded amounts of assets measured at fair value on a non-recurring basis: Fair Value Measurements (Dollar amounts in thousands) at September 30, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 9/30/2015 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 123 $ — $ — $ 123 Residential-1 to 4 family 238 — — 238 Commercial and industrial 1,016 — — 1,016 Other real estate owned 838 — — 838 Total impaired assets measured at fair value $ 2,215 $ — $ — $ 2,215 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2014, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 381 $ — $ — $ 381 Residential-1 to 4 family 323 — — 323 Commercial and industrial 1,472 — — 1,472 Consumer 56 — — 56 Other real estate owned 763 — — 763 Total impaired assets measured at fair value $ 2,995 $ — $ — $ 2,995 The Bank does not record loans at fair value. However, from time to time, if a loan is considered impaired, a specific allocation within the allowance for loan losses may be required. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and cash flows. Those impaired loans not requiring an allowance represent loans for which the value of the expected repayments or collateral exceed the recorded investments in such loans. Impaired loans where an allowance is established based on the fair value of collateral or when the impaired loan has been written down to fair value require classification in the fair value hierarchy. If the fair value of the collateral is based on an observable market price or a current appraised value, the Bank records the impaired loans as nonrecurring Level 3. When an appraised value is not available, or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank also records the impaired loans as nonrecurring Level 3. Other real estate owned is carried at the lower of historical cost or fair market value less costs to sell. An appraisal is obtained at the time the Bank acquires property through the foreclosure process. Any loan balance outstanding that exceeds the appraised value of the property is charged off against the allowance for loan loss at the time the property is acquired. Subsequent to acquisition, the Bank updates the property’s appraised value on at least an annual basis. If the value of the property has declined during the year, a loss due to valuation impairment is recorded along with a corresponding reduction in the book carrying value of the property. The Company obtains third party appraisals on its impaired loans held-for-investment and foreclosed assets to determine fair value. When the appraisals are received, Management reviews the assumptions and methodology utilized in the appraisal, as well as the overall resulting value in conjunction with independent data sources such as recent market data and industry-wide statistics. We generally use a 6% discount for selling costs which is applied to all properties, regardless of size. Generally, the third party appraisals apply the “market approach,” which is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business. Adjustments are then made based on the type of property, age of appraisal, current status of property and other related factors to estimate the current value of collateral. The value of OREO is determined based on independent appraisals, similar to the process used for impaired loans, discussed above, and is generally classified as Level 3. Fair Values of Financial Instruments. The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments. Cash and Cash Equivalents including Interest Bearing Time Deposits with Financial Institutions. The carrying amounts reported in the balance sheet for cash and short-term instruments are a reasonable estimate of fair value, which will approximate their historical cost. Securities Available-for-Sale. Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Loans Receivable. For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values and credit risk factors. For fixed rate loans, fair values are based on discounted cash flows, credit risk factors, and liquidity factors. Other Equity Securities. These are mostly Federal Reserve Bank stock and Federal Home Loan Bank stock, carried in Other Assets. They are not traded, and not available for sale, and have no fair market value. Deposit liabilities. The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair values for fixed-rate certificates of deposit are based on discounted cash flows. Federal Home Loan Bank Advances. The fair values of Federal Home Loan Bank Advances are based on discounted cash flows. The discount rate is equal to the market rate currently offered on similar products. Note payable. The fair value of the note payable is based on the current balance outstanding. The fair value is calculated on discounted cash flows. The discount rate is equal to the market rate offered on similar products. Accrued Interest Receivable and Payable The interest receivable and payable balances approximate their fair value due to the short-term nature of their settlement dates. Undisbursed loan commitments, lines of credit, Mastercard line and standby letters of credit. The fair value of these off-balance sheet items are based on discounted cash flows of expected fundings. The Bank has excluded non-financial assets and non-financial liabilities defined by the Codification (ASC 820-10-15-A), such as Bank premises and equipment, deferred taxes and other liabilities. In addition, the Bank has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as Bank-owned life insurance policies. The following table provides summary information on the estimated fair value of financial instruments at September 30, 2015: September 30, 2015 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 40,282 $ 40,282 $ 40,282 Interest-bearing time deposits with financial institutions 1,246 1,250 $ 1,250 Securities available for sale 315,560 315,560 6,079 309,481 Loans 707,506 709,391 $ 709,391 Other equity securities 6,748 6,748 6,748 Accrued interest receivable 4,326 4,326 4,326 Financial liabilities: Deposits 989,365 989,845 989,845 Note payable 5,100 5,100 5,100 Accrued interest payable 237 237 237 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,707 1,707 The carrying amount of loans includes $5,192,000 of nonaccrual loans (loans that are not accruing interest) as of September 30, 2015. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received. The following table provides summary information on the estimated fair value of financial instruments at December 31, 2014: December 31, 2014 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 14,978 $ 14,978 $ 14,978 Interest-bearing time deposits with financial institutions 2,784 2,813 $ 2,813 Securities available for sale 264,881 264,881 3,958 260,923 Loans 593,864 594,524 $ 594,524 Other equity securities 5,769 5,769 5,769 Accrued interest receivable 3,725 3,725 3,725 Financial liabilities: Deposits 792,194 792,472 792,472 Federal Home Loan Bank advances 9,000 9,000 9,000 Note payable 5,550 5,550 5,550 Accrued interest payable 182 182 182 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,449 1,449 The carrying amount of loans includes $5,648,000 of nonaccrual loans (loans that are not accruing interest) as of December 31, 2014. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received.

H. ACQUISITION OF AMERICA CALIF

H. ACQUISITION OF AMERICA CALIFORNIA BANK	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
ACQUISITION OF AMERICA CALIFORNIA BANK	On May 14, 2015, the Company entered into an Agreement and Plan of Reorganization and Merger dated May 14,2015 (the “Agreement”) to acquire all of the outstanding common stock and preferred stock of America California Bank, a San Francisco, California banking corporation. The all-cash agreed upon purchase price for the outstanding shares of America California Bank was $10.60 per share, or approximately $21,500,000. The purpose of the acquisition was to increase the size of our earning asset and interest bearing liability portfolios with customers located in and around San Francisco. On September 4, 2015, the company completed the merger of America California Bank. The only branch location of America California Bank was closed on September 4, 2015 and all loan and deposit accounts were transferred to our Battery Street office in San Francisco. The assets acquired and liabilities assumed, both tangible and intangible, were recorded at fair values as of the acquisition date in accordance with ASC 805, Business Combinations The following table reflects the estimated fair values of the assets acquired and liabilities assumed related to the America California Bank acquisition: America California Bank September 4, 2015 (In thousands) Assets Cash and due from banks $ 3,019 Interest-bearing time deposits with financial institutions 7,836 Other equity securities 679 Loans 92,969 Premises and equipment, net 62 Bank owned life insurance 2,971 Accrued interest receivable 313 Prepaid expense 1,808 Goodwill 2,739 Other assets 2,731 Total Assets $ 115,127 Liabilities Deposits: Demand deposits 14,500 NOW accounts 6,122 Savings and money market deposits 42,680 Time deposits 26,824 Total deposits 90,126 Accrued expenses and other liabilities 3,501 Total Liabilities 93,627 Merger consideration (cash) $ 21,500 America California Bank tangible Stockholders’ Equity $ 18,440 Adjustments to reflect assets acquired and liabilities assumed at fair value: Loans 2,178 Core deposit intangible 727 Certificates of deposit (243 ) Accrued expenses (1,832 ) Other borrowings (86 ) Subtotal net fair value adjustments 744 Deferred tax liability related to purchase (423 ) Total fair value adjustments $ 321 Fair value of Net Assets Acquired 18,761 Merger Consideration 21,500 Less: Fair Value of Net Assets Acquired (18,761 ) Goodwill 2,739 Goodwill represents the excess of the total purchase price paid over the fair value of the assets acquired, net of the fair value of liabilities assumed. It arises mainly from expected synergies related to the combined operating activities of First National Bank of Northern California and America California Bank. It is evaluated for impairment annually. The following is a description of the methods used to determine the fair values of significant assets and liabilities at the date of acquisition: Loans The fair values for acquired loans were developed based upon the present values of the expected cash flows utilizing market-derived discount rates. Expected cash flows for each acquired loan were projected based on contractual cash flows adjusted for expected prepayment, expected default (the probability of default and the magnitude of the expected loss given a default), and principal recovery. Prepayment rates were applied to the principal outstanding based on the type of loan, where appropriate. Prepayments were based on a constant prepayment rate (“CPR”) applied over the life of each loan. The Company used CPRs ranging from 0% to 24%, depending on the characteristics of the loan being evaluated. All loans purchased were non-credit impaired loans that were evaluated using evaluation metrics that were applied uniformly to loans that were similar in type, collateral, risk classification, fixed or variable in interest rate, term of the loan, and whether the loan was amortizing or interest only. The discount rates used were applied uniformly for similar loans based on current market rates for new originations of comparable loans, where available, and include adjustments for credit and liquidity factors. To the extent comparable market rates are not readily available, a discount rate was derived based on the assumptions of a market participant’s cost of funds, servicing costs, and rate of return requirements for comparable risk assets. The gross contractual amounts receivable totaled $93.4 million as of the acquisition date. Core Deposit Intangible The recorded core deposit intangible represents estimated future benefits of acquired deposits that have no stated maturity and is recorded separately from the liability in other assets. The value of the core deposit intangible asset was determined using a discounted cash flow approach to arrive at the cost differential between the core deposits (checking, savings and money market accounts) and alternative funding sources. The core deposit intangible is computed as the present value of the difference in cash flows between maintaining the existing deposits (interest and net maintenance costs) and the cost of an equal amount of funds from an alternative source having similar attributes as the core deposit base. The core deposit intangible is amortized over an estimated 15 year life. The core deposit intangible asset is evaluated periodically for impairment. Time Deposits The fair values for the time deposits were estimated using a discounted cash flow calculation that applied interest rates offered by market participants as of the acquisition date on time deposits with similar maturity terms as the discount rates. Acquisition Costs Costs that were incurred by the Company related to contractual commitments made by America California Bank prior to the completion of the merger were capitalized by the Company and are recorded in goodwill. Capitalized costs were composed primarily of severance payments and retention bonuses paid to qualifying officers, employees and directors of America California Bank. Total America California Bank acquisition costs were $1,832,000. Acquisition Related Expense Costs incurred by the Company related to gaining operational efficiencies in the America California Bank acquisition were charged to operational expense during the third quarter of 2015. The following table summarized the estimated operational expenses recorded during the third quarter of 2015: Acquisition Related Expense (Amounts in thousands) Occupancy $ 345 Data processing 515 Legal and accounting 150 D & O insurance -tail end coverage 35 Total $ 1,045 Fair Market Valuation Adjustment Amortization and Accretion The amortization and accretion of the fair value adjustments that were recorded as part of the acquisition of America California Bank will be ratably charged to income and expense over the estimate lives of the interest earning assets and interest bearing liabilities acquired. The following table presents the pro-forma effect on earnings of the amortization and accretion of the fair value adjustments assuming that the acquisition had occurred at the beginning of each year presented. The pro forma consolidated condensed statements of earnings do not reflect any adjustment to America California’s historical provision for credit losses or the net interest income earned by America California Bank prior to the acquisition. The pro forma consolidated condensed statement of earnings for FNB Bancorp and America California Bank for the nine months ended September 30, 2015 and 2014 are presented below. The unaudited pro forma information presented does not necessarily reflect the results of operations that would have resulted had the acquisition been completed at the beginning of fiscal year 2014, nor does it indicate the results of operations in future periods. The pro forma adjustments to loans and deposits are being accreted or amortized into income using methods that approximate a level yield over their respective expected lives. Adjustments related to identifiable are being amortized and recorded as noninterest expense over their respective expected lives using accelerated methods. The pro forma consolidated condensed statements of earnings do not reflect any adjustments to America California Bank’s historical provision for credit losses and goodwill impairment charges. Nine months ended 9/30/2015 9/30/2014 As Reported As Adjusted As Reported As Adjusted Net interest income after provision for loan losses $ 26,236 $ 29,289 $ 25,907 $ 29,271 Noninterest income 3,367 3,518 3,067 3,263 Noninterest expense 21,211 23,952 21,107 23,878 Earnings before provision for income tax expense 8,392 8,855 7,867 8,656 Provision for income tax expense 2,283 2,467 2,581 2,895 Net earnings $ 6,109 $ 6,388 $ 5,286 $ 5,761 Earnings per share data: Basic $ 1.42 $ 1.49 $ 1.25 $ 1.36 Diluted $ 1.38 $ 1.45 $ 1.21 $ 1.32 Weighted average shares outstanding: Basic 4,293 4,293 4,222 4,222 Diluted 4,414 4,414 4,364 4,364

C. EARNINGS PER SHARE CALCULA16

C. EARNINGS PER SHARE CALCULATION (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings per share data:
Earnings per common share (EPS) computed	(All amounts in thousands) Three months ended Nine months ended September 30, September 30, 2015 2014 2015 2014 Net earnings $ 2,239 $ 1,823 $ 6,109 $ 5,286 Dividends and discount accretion on preferred stock — — — 170 Net earnings available to common shareholders $ 2,239 $ 1,823 $ 6,109 $ 5,116 Average number of shares outstanding 4,309 4,250 4,293 4,222 Effect of dilutive options 113 134 121 142 Average number of shares outstanding used to calculate diluted earnings per share 4,422 4,384 4,414 4,364 Anti-dilutive options not included 93 65 94 65

D. SECURITIES AVAILABLE FOR S17

D. SECURITIES AVAILABLE FOR SALE (Tables)	9 Months Ended
	Sep. 30, 2015
SECURITIES AVAILABLE FOR SALE TABLES
Schedule of amortized cost and carrying values of securities available-for-sale	(Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value September 30, 2015 U.S. Treasury securities $ 5,996 $ 83 $ — $ 6,079 Obligations of U.S. government agencies 79,446 719 (12 ) 80,153 Mortgage-backed securities 62,221 1,355 (80 ) 63,496 Obligations of states and political subdivisions 122,607 2,652 (231 ) 125,028 Corporate debt 40,557 292 (45 ) 40,804 $ 310,827 $ 5,101 $ (368 ) $ 315,560 December 31, 2014 U.S. Treasury securities $ 3,975 $ 12 $ (29 ) $ 3,958 Obligations of U.S. government agencies 63,090 270 (298 ) 63,062 Mortgage-backed securities 78,076 1,002 (661 ) 78,417 Obligations of states and political subdivisions 82,151 2,534 (143 ) 84,542 Corporate debt 34,931 176 (205 ) 34,902 $ 262,223 $ 3,994 $ (1,336 ) $ 264,881
Schedule analysis of gross unrealized losses of the available-for-sale investment securities	(Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2015 U.S. Treasury securities $ — $ — $ — $ — $ — $ — Obligations of U.S. Government agencies 3,987 (4 ) 5,035 (8 ) 9,022 (12 ) Mortgage-backed securities — — 14,416 (80 ) 14,416 (80 ) Obligations of states and political subdivisions 27,308 (200 ) 1,842 (31 ) 29,150 (231 ) Corporate debt 10,475 (29 ) 1,986 (16 ) 12,461 (45 ) Total $ 41,770 $ (233 ) $ 23,279 $ (135 ) $ 65,049 $ (368 ) (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses December 31, 2014: U. S. Treasury securities $ — $ — $ 2,015 $ (29 ) $ 2,015 $ (29 ) Obligations of U.S. Government agencies 13,178 (43 ) 19,116 (255 ) 32,294 (298 ) Mortgage-backed securities 5,056 (10 ) 36,382 (651 ) 41,438 (661 ) Obligations of states and political subdivisions 8,678 (49 ) 5,696 (94 ) 14,374 (143 ) Corporate debt 18,065 (125 ) 4,919 (80 ) 22,984 (205 ) Total $ 44,977 $ (227 ) $ 68,128 $ (1,109 ) $ 113,105 $ (1,336 )
Schedule of amortized cost and carrying value of available-for-sale debt securities by contractual maturity	September 30, 2015: (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 12,762 $ 12,853 Due after one through five years 139,399 141,174 Due after five years through ten years 130,249 132,506 Due after ten years 28,417 29,027 $ 310,827 $ 315,560

E. LOANS (Tables)

E. LOANS (Tables)	9 Months Ended
	Sep. 30, 2015
LOANS TABLES
Schedule Of Loans Outstanding	(Dollar amounts in thousands) Total FNB Balance Bancorp September 30, September 30, 2015 Originated PNCI PCI 2015 Commercial real estate $ 304,276 $ 88,493 $ 1,321 $ 394,090 Real estate construction 30,395 5,473 — 35,868 Real estate multi-family 47,264 16,664 — 63,928 Real estate 1 to 4 family 151,159 21,121 — 172,280 Commercial & industrial 27,817 12,026 — 39,843 Consumer 1,497 — — 1,497 Gross loans 562,408 143,777 1,321 707,506 Net deferred loan fees (678 ) — — (678 ) Allowance for loan losses (9,940 ) — — (9,940 ) Net loans $ 551,790 $ 143,777 $ 1,321 $ 696,888 (Dollar amounts in thousands) Total FNB Balance Bancorp December 31, December 31, 2014 Originated PNCI PCI 2014 Commercial real estate $ 285,252 $ 31,852 $ 1,323 $ 318,427 Real estate construction 37,827 1,944 — 39,771 Real estate multi-family 43,379 10,445 — 53,824 Real estate 1 to 4 family 123,522 5,210 — 128,732 Commercial & industrial 42,551 9,111 — 51,662 Consumer 1,448 — — 1,448 Gross loans 533,979 58,562 1,323 593,864 Net deferred loan fees (449 ) — — (449 ) Allowance for loan losses (9,700 ) — — (9,700 ) Net loans $ 523,830 $ 58,562 $ 1,323 $ 583,715
Schedule of Allowance for Credit Losses	Allowance for Credit Losses For the Three Months Ended September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,027 $ 697 $ 198 $ 2,014 $ 848 $ 52 $ 9,836 Charge-offs — — — — (23 ) — (23 ) Recoveries 15 — — 7 26 4 52 Provision (67 ) (49 ) (10 ) 289 (73 ) (15 ) 75 Ending balance $ 5,975 648 188 2,310 $ 778 $ 41 $ 9,940 Ending balance individually evaluated for impairment $ 126 $ — $ — $ 522 $ 224 $ — $ 872 Ending balance: collectively evaluated for impairment $ 5,849 $ 648 $ 188 $ 1,788 $ 554 $ 41 $ 9,068 Allowance for Credit Losses For the Nine Months Ended September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs — — — (45 ) (23 ) (11 ) (79 ) Recoveries 37 — — 8 45 4 94 Provision 389 (201 ) (18 ) 382 (317 ) (10 ) 225 Ending balance $ 5,975 $ 648 $ 188 $ 2,310 $ 778 $ 41 $ 9,940 Ending balance: individually evaluated for impairment $ 126 $ — $ — $ 522 $ 224 $ — $ 872 Ending balance: collectively evaluated for impairment $ 5,849 $ 648 $ 188 $ 1,788 $ 554 $ 41 $ 9,068 Allowance for Credit Losses As of and For the Year Ended December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Charge-offs (83 ) (183 ) — (62 ) (28 ) (26 ) (382 ) Recoveries 1,062 — — 3 154 4 1,223 Provision (1,193 ) 298 (87 ) 236 (290 ) 16 (1,020 ) Ending balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Ending balance: individually evaluated for impairment $ 101 $ — $ — $ 432 $ 225 $ 8 $ 766 Ending balance: collectively evaluated for impairment $ 5,448 $ 849 $ 206 $ 1,533 $ 848 $ 50 $ 8,934 Allowance for Credit Losses For the Three Months Ended September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,215 $ 717 $ 465 $ 2,250 $ 1,166 $ 46 $ 10,859 Provision 495 (150 ) (202 ) (193 ) 27 23 — Charge-offs (83 ) — — — (17 ) (6 ) (106 ) Recoveries 5 — — 1 14 1 21 Ending balance $ 6,632 $ 567 $ 263 $ 2,058 $ 1,190 $ 64 $ 10,774 Ending balance: individually evaluated for impairment $ 111 $ — $ — $ 429 $ 177 $ — $ 717 Ending balance: collectively evaluated for impairment $ 6,521 $ 567 $ 263 $ 1,629 $ 1,013 $ 64 $ 10,057 Allowance for Credit Losses For the Nine Months Ended September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,763 $ 734 $ 293 $ 1,788 $ 1,237 $ 64 $ 9,879 Provision (105 ) 16 (30 ) 330 (158 ) 22 75 Charge-offs (83 ) (183 ) — (62 ) (28 ) (26 ) (382 ) Recoveries 1,057 — — 2 139 4 1,202 Ending balance $ 6,632 $ 567 $ 263 $ 2,058 $ 1,190 $ 64 $ 10,774 Ending balance: individually evaluated for impairment $ 111 $ — $ — $ 429 $ 177 $ — $ 717 Ending balance: collectively evaluated for impairment $ 6,521 $ 567 $ 263 $ 1,629 $ 1,013 $ 64 $ 10,057
Schedule of Recorded Investment in Loans	Recorded Investment in Loans at September 30, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 394,090 $ 35,868 $ 63,928 $ 172,280 $ 39,843 $ 1,497 $ 707,506 Ending balance: individually evaluated for impairment $ 9,501 $ 2,162 $ — $ 4,857 $ 1,813 $ — $ 18,333 Ending balance: collectively evaluated for impairment $ 384,589 $ 33,706 $ 63,928 $ 167,423 $ 38,030 $ 1,497 $ 689,173 Recorded Investment in Loans at December 31, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 318,427 $ 39,771 $ 53,824 $ 128,732 $ 51,662 $ 1,448 $ 593,864 Ending balance: individually evaluated for impairment $ 9,530 $ 2,373 $ — $ 4,333 $ 2,315 $ 64 $ 18,615 Ending balance: collectively evaluated for impairment $ 308,897 $ 37,398 $ 53,824 $ 124,399 $ 49,347 $ 1,384 $ 575,249 Recorded Investment in Loans at September 30, 2014 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 320,695 $ 34,701 $ 53,721 $ 120,233 $ 48,916 $ 1,483 $ 579,749 Ending balance: individually evaluated for impairment $ 10,158 $ 2,378 $ — $ 4,292 $ 2,170 $ — $ 18,998 Ending balance: collectively evaluated for impairment $ 310,537 $ 32,323 $ 53,721 $ 115,941 $ 46,746 $ 1,483 $ 560,751
Schedule of Impaired Loans Allowance	Impaired Loans As of and for the nine months ended September 30, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,392 $ 5,271 $ — $ 4,867 $ 217 Commercial real estate construction 2,162 2,345 — 2,359 100 Real estate - multi family — — — — — Residential - 1 to 4 family 1,475 1,476 — 1,482 49 Commercial and industrial 528 782 — 4,410 27 Total 8,557 9,874 — 13,118 393 With an allowance recorded Commercial real estate $ 5,109 $ 5,113 $ 126 $ 5,162 $ 196 Commercial real estate construction — — — — — Residential - 1 to 4 family 3,382 2,972 522 3,202 96 Commercial and industrial 1,285 1,539 224 1,489 5 Consumer — — — — — Total 9,776 9,624 872 9,853 297 Total Commercial real estate $ 9,501 $ 10,384 $ 126 $ 10,029 $ 413 Commercial real estate construction 2,162 2,345 — 2,359 100 Real estate - multi family — — — — — Residential - 1 to 4 family 4,857 4,448 522 4,684 145 Commercial and industrial 1,813 2,321 224 5,899 32 Consumer — — — — — Grand total $ 18,333 $ 19,498 $ 872 $ 22,971 $ 690 Impaired Loans As of and for the year ended December 31, 2014 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,462 $ 5,333 $ — $ 4,473 $ 304 Commercial real estate construction 2,373 2,556 — 1,846 150 Residential- 1 to 4 family 1,594 1,737 — 1,379 67 Commercial and industrial 582 939 — 788 54 Total 9,011 10,565 — 8,486 575 With an allowance recorded Commercial real estate $ 5,068 $ 5,071 $ 101 $ 5,127 $ 258 Residential- 1 to 4 family 2,739 2,754 432 2,759 111 Commercial and industrial 1,733 2,100 225 1,907 33 Consumer 64 64 8 67 5 Total 9,604 9,989 766 9,860 407 Total Commercial real estate $ 9,530 $ 10,404 $ 101 $ 9,600 $ 562 Commercial real estate construction 2,373 2,556 — 1,846 150 Residential- 1 to 4 family 4,333 4,491 432 4,138 178 Commercial and industrial 2,315 3,039 225 2,695 87 Consumer 64 64 8 67 5 Grand total $ 18,615 $ 20,554 $ 766 $ 18,346 $ 982
Schedule of Loans On Nonaccrual Status	Loans on Nonaccrual Status as of (Dollar amounts in thousands) September 30, December 31, 2015 2014 Commercial real estate $ 2,094 $ 2,111 Real estate - construction — — Real estate 1 to 4 family 1,285 1,181 Commercial and industrial 1,813 2,292 Consumer — 64 Total $ 5,192 $ 5,648
Troubled Debt Restructurings	Total troubled debt restructured loans outstanding at (dollars in thousands) September 30, 2015 December 31, 2014 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 7,265 $ 2,081 $ 9,346 $ 7,407 $ 2,091 $ 9,498 Real Estate construction 1,291 — 1,291 1,304 — 1,304 Real estate 1 to 4 family 3,596 — 3,596 3,153 508 3,661 Commercial & industrial — 1,608 1,608 294 1,760 2,054 Total $ 12,152 $ 3,689 $ 15,841 $ 12,158 $ 4,359 $ 16,517
Schedule of Short-term Debt Modifications	Modifications For the nine months ended September 30, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 474 $ 474 Total 1 $ 474 $ 474 Modifications For the nine months ended September 30, 2014 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (Dollar amounts in thousands) Real estate 1 to 4 family 1 $ 575 $ 569 Commercial real estate 3 1,454 1,449 Total 4 $ 2,029 $ 2,018
Schedule Age Analysis Of Past Due Loans	Age Analysis of Past Due Loans As of September 30, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ — $ — $ — $ — $ 304,276 $ 304,276 Real estate construction — 713 — 713 29,682 30,395 Real estate multi family — — — — 47,264 47,264 Real estate-1 to 4 family — — 611 611 150,548 151,159 Commercial and industrial — — 1,813 1,813 26,004 27,817 Consumer — — — — 1,497 1,497 Total $ — $ 713 $ 2,424 $ 3,137 $ 559,271 $ 562,408 Purchased Not credit impaired Commercial real estate $ 531 $ 3,778 $ — $ 4,309 $ 84,184 $ 88,493 Real estate construction — — — — 5,473 5,473 Real estate multi-family — — — — 16,664 16,664 Real estate-1 to 4 family 14 — 400 414 20,707 21,121 Commercial and industrial — — — — 12,026 12,026 Total $ 545 $ 3,778 $ 400 $ 4,723 $ 139,054 $ 143,777 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,321 $ 1,321 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate-1 to 4 family — — — — — — Commercial and industrial — — — — — — Consumer — — — — — — Total $ — $ — $ — $ — $ 1,321 $ 1,321 Age Analysis of Past Due Loans As of December 31, 2014 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 8 $ 879 $ — $ 887 $ 284,365 $ 285,252 Real estate construction — 708 — 708 37,119 37,827 Real estate multi family 3,575 — — 3,575 39,804 43,379 Real estate 1 to 4 family 330 200 1,112 1,642 121,880 123,522 Commercial & industrial 775 73 1,710 2,558 39,993 42,551 Consumer — — 64 64 1,384 1,448 Total $ 4,688 $ 1,860 $ 2,886 $ 9,434 $ 524,545 $ 533,979 Purchased Not credit impaired Commercial real estate $ — $ — $ — — $ 31,852 $ 31,852 Real estate construction — — — — 1,944 1,944 Real estate multi-family — — — — 10,445 10,445 Real estate 1 to 4 family — 400 — 400 4,810 5,210 Commercial & industrial — — — — 9,111 9,111 Total $ — $ 400 $ — $ 400 $ 58,162 $ 58,562 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ 1,323 $ 1,323 Real estate construction — — — — — — Real estate multi-family — — — — — — Real estate 1 to 4 family — — — — — — Commercial & industrial — — — — — — Total $ — $ — $ — $ — $ 1,323 $ 1,323
Schedule Credit Quality Indicators	Credit Quality Indicators As of September 30, 2015 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 298,182 $ 1,862 $ 4,232 $ — $ 304,276 Real estate construction 29,333 — 1,062 — 30,395 Real estate multi-family 47,264 — — — 47,264 Real estate-1 to 4 family 150,346 — 813 — 151,159 Commercial and industrial 27,211 — 441 165 27,817 Consumer loans 1,497 — — — 1,497 Totals $ 553,833 $ 1,862 $ 6,548 $ 165 $ 562,408 Purchased Not credit impaired Commercial real estate $ 66,703 $ 7,745 $ 14,031 $ 14 $ 88,493 Real estate construction 5,473 — — — 5,473 Real estate multi-family 16,664 — — — 16,664 Real estate-1 to 4 family 20,720 — 401 — 21,121 Commercial and industrial 11,931 — 95 — 12,026 Total $ 121,491 $ 7,745 $ 14,527 $ 14 $ 143,777 Credit impaired Commercial real estate $ 1,321 Total $ 1,321 Credit Quality Indicators As of December 31, 2014 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 281,216 $ 1,913 $ 2,031 $ 92 $ 285,252 Real estate construction 36,692 — 1,135 — 37,827 Real estate multi-family 43,379 — — — 43,379 Real estate 1 to 4 family 122,499 — 1,023 — 123,522 Commercial & industrial 41,394 — 1,157 — 42,551 Consumer loans 1,384 — 64 — 1,448 Totals $ 526,564 $ 1,913 $ 5,410 $ 92 $ 533,979 Purchased Not credit impaired Commercial real estate $ 26,009 $ — $ 5,843 $ — $ 31,852 Real estate construction 1,944 — — — 1,944 Real estate multi-family 10,445 — — — 10,445 Real estate 1 to 4 family 4,810 — — 400 5,210 Commercial & industrial 9,111 — — — 9,111 Total $ 52,319 $ — $ 5,843 $ 400 $ 58,562 Purchased Credit impaired Commercial real estate $ 1,323 Total $ 1,323

G. FAIR VALUE MEASUREMENT (Tabl

G. FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2015
FAIR VALUE MEASUREMENT TABLES {1}
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurements (Dollar amounts in thousands) at September 30, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 9/30/2015 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 6,079 $ 6,079 $ $ — Obligations of U.S. Government agencies 80,153 — 80,153 — Mortgage-backed securities 63,496 — 63,496 — Obligations of states and political subdivisions 125,028 — 125,028 — Corporate debt 40,804 — 40,804 — Total assets measured at fair value $ 315,560 $ 6,079 $ 309,481 $ — Fair Value Measurements (Dollar amounts in thousands) at December 31, 2014, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 3,958 $ 3,958 $ — $ — Obligations of U.S. Government agencies 63,062 — 63,062 — Mortgage-backed securities 78,417 — 78,417 — Obligations of states and political subdivisions 84,542 — 84,542 — Corporate debt 34,902 — 34,902 — Total assets measured at fair value $ 264,881 $ 3,958 $ 260,923 $ —
Schedule of assets measured at fair value on a non-recurring basis	Fair Value Measurements (Dollar amounts in thousands) at September 30, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 9/30/2015 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 123 $ — $ — $ 123 Residential-1 to 4 family 238 — — 238 Commercial and industrial 1,016 — — 1,016 Other real estate owned 838 — — 838 Total impaired assets measured at fair value $ 2,215 $ — $ — $ 2,215 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2014, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2014 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate $ 381 $ — $ — $ 381 Residential-1 to 4 family 323 — — 323 Commercial and industrial 1,472 — — 1,472 Consumer 56 — — 56 Other real estate owned 763 — — 763 Total impaired assets measured at fair value $ 2,995 $ — $ — $ 2,995
Schedule of estimated fair value of financial instruments	September 30, 2015 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 40,282 $ 40,282 $ 40,282 Interest-bearing time deposits with financial institutions 1,246 1,250 $ 1,250 Securities available for sale 315,560 315,560 6,079 309,481 Loans 707,506 709,391 $ 709,391 Other equity securities 6,748 6,748 6,748 Accrued interest receivable 4,326 4,326 4,326 Financial liabilities: Deposits 989,365 989,845 989,845 Note payable 5,100 5,100 5,100 Accrued interest payable 237 237 237 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,707 1,707 December 31, 2014 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 14,978 $ 14,978 $ 14,978 Interest-bearing time deposits with financial institutions 2,784 2,813 $ 2,813 Securities available for sale 264,881 264,881 3,958 260,923 Loans 593,864 594,524 $ 594,524 Other equity securities 5,769 5,769 5,769 Accrued interest receivable 3,725 3,725 3,725 Financial liabilities: Deposits 792,194 792,472 792,472 Federal Home Loan Bank advances 9,000 9,000 9,000 Note payable 5,550 5,550 5,550 Accrued interest payable 182 182 182 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,449 1,449

H. ACQUISITION OF AMERICA CAL20

H. ACQUISITION OF AMERICA CALIFORNIA BANK (Tables)	9 Months Ended
	Sep. 30, 2015
Business Combinations [Abstract]
Estimated fair values of the assets acquired and liabilities assumed	America California Bank September 4, 2015 (In thousands) Assets Cash and due from banks $ 3,019 Interest-bearing time deposits with financial institutions 7,836 Other equity securities 679 Loans 92,969 Premises and equipment, net 62 Bank owned life insurance 2,971 Accrued interest receivable 313 Prepaid expense 1,808 Goodwill 2,739 Other assets 2,731 Total Assets $ 115,127 Liabilities Deposits: Demand deposits 14,500 NOW accounts 6,122 Savings and money market deposits 42,680 Time deposits 26,824 Total deposits 90,126 Accrued expenses and other liabilities 3,501 Total Liabilities 93,627 Merger consideration (cash) $ 21,500 America California Bank tangible Stockholders’ Equity $ 18,440 Adjustments to reflect assets acquired and liabilities assumed at fair value: Loans 2,178 Core deposit intangible 727 Certificates of deposit (243 ) Accrued expenses (1,832 ) Other borrowings (86 ) Subtotal net fair value adjustments 744 Deferred tax liability related to purchase (423 ) Total fair value adjustments $ 321 Fair value of Net Assets Acquired 18,761 Merger Consideration 21,500 Less: Fair Value of Net Assets Acquired (18,761 ) Goodwill 2,739
Schedule of Acquisition Related Expense	Acquisition Related Expense (Amounts in thousands) Occupancy $ 345 Data processing 515 Legal and accounting 150 D & O insurance -tail end coverage 35 Total $ 1,045
Pro forma consolidated condensed statements of earnings	Nine months ended 9/30/2015 9/30/2014 As Reported As Adjusted As Reported As Adjusted Net interest income after provision for loan losses $ 26,236 $ 29,289 $ 25,907 $ 29,271 Noninterest income 3,367 3,518 3,067 3,263 Noninterest expense 21,211 23,952 21,107 23,878 Earnings before provision for income tax expense 8,392 8,855 7,867 8,656 Provision for income tax expense 2,283 2,467 2,581 2,895 Net earnings $ 6,109 $ 6,388 $ 5,286 $ 5,761 Earnings per share data: Basic $ 1.42 $ 1.49 $ 1.25 $ 1.36 Diluted $ 1.38 $ 1.45 $ 1.21 $ 1.32 Weighted average shares outstanding: Basic 4,293 4,293 4,222 4,222 Diluted 4,414 4,414 4,364 4,364

B. STOCK OPTION PLANS (Detail N

B. STOCK OPTION PLANS (Detail Narratives) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation [Abstract]
Compensation Expense	$ 61	$ 69	$ 183	$ 208
Recognized income tax benefit	0	$ 24	154	294
Intrinsic Value Options Exercised			671	$ 848
Intrinsic Value Options Exercisable	3,042		3,042
Unrecognized Compensation Expense Nonvested Options	$ 569		$ 569
Non-vested options weighted average period			3 years 1 month 6 days

C. EARNINGS PER SHARE CALCULA22

C. EARNINGS PER SHARE CALCULATION (Dollar amounts in thousands) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings per share data:
Net earnings	$ 2,239	$ 1,823	$ 6,109	$ 5,286
Dividends and discount accretion on preferred stock	0	0	0	170
Net earnings available to common shareholders	$ 2,239	$ 1,823	$ 6,109	$ 5,116
Average number of shares outstanding	4,309	4,250	4,293	4,222
Effect of dilutive options	$ 113	$ 134	$ 121	$ 142
Average number of shares outstanding used to calculate diluted earnings per share	4,422	4,384	4,414	4,364
Anti-dilutive options not included	93	65	94	65

D. SECURITIES AVAILABLE FOR S23

D. SECURITIES AVAILABLE FOR SALE, Amortized cost and fair values (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Available for sale securities, Amortized Cost	$ 310,827	$ 262,223
Available for sale securities, Unrealized Gains	5,101	3,994
Available for sale securities, Unrealized Losses	(368)	(1,336)
Available for sale securities, Estimated Fair Value	315,560	264,881
U.S. Treasury securities
Available for sale securities, Amortized Cost	5,996	3,975
Available for sale securities, Unrealized Gains	83	12
Available for sale securities, Unrealized Losses	0	(29)
Available for sale securities, Estimated Fair Value	6,079	3,958
Obligations of U.S. government agencies
Available for sale securities, Amortized Cost	79,446	63,090
Available for sale securities, Unrealized Gains	719	270
Available for sale securities, Unrealized Losses	(12)	(298)
Available for sale securities, Estimated Fair Value	80,153	63,062
Mortgage-backed securities
Available for sale securities, Amortized Cost	62,221	78,076
Available for sale securities, Unrealized Gains	1,355	1,002
Available for sale securities, Unrealized Losses	(80)	(661)
Available for sale securities, Estimated Fair Value	63,496	78,417
Obligations of states and political subdivisions
Available for sale securities, Amortized Cost	122,607	82,151
Available for sale securities, Unrealized Gains	2,652	2,534
Available for sale securities, Unrealized Losses	(231)	(143)
Available for sale securities, Estimated Fair Value	125,028	84,542
Corporate debt
Available for sale securities, Amortized Cost	40,557	34,931
Available for sale securities, Unrealized Gains	292	176
Available for sale securities, Unrealized Losses	(45)	(205)
Available for sale securities, Estimated Fair Value	$ 40,804	$ 34,902

D. SECURITIES AVAILABLE FOR S24

D. SECURITIES AVAILABLE FOR SALE, Analysis of gross unrealized losses (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Less than 12 months, Total Fair Value	$ 41,770	$ 44,977
Less than 12 months, Unrealized Loss	(233)	(227)
12 months or more, Total Fair Value	23,279	68,128
12 months or more, Unrealized Loss	(135)	(1,109)
Total Fair Value	65,049	113,105
Total Unrealized Loss	(368)	(1,336)
U.S. Treasury securities
Less than 12 months, Total Fair Value	0	0
Less than 12 months, Unrealized Loss	0	0
12 months or more, Total Fair Value	0	2,015
12 months or more, Unrealized Loss	0	(29)
Total Fair Value	0	2,015
Total Unrealized Loss	0	(29)
Obligations of U.S. government agencies
Less than 12 months, Total Fair Value	3,987	13,178
Less than 12 months, Unrealized Loss	(4)	(43)
12 months or more, Total Fair Value	5,035	19,116
12 months or more, Unrealized Loss	(8)	(255)
Total Fair Value	9,022	32,294
Total Unrealized Loss	(12)	(298)
Mortgage-backed securities
Less than 12 months, Total Fair Value	0	5,056
Less than 12 months, Unrealized Loss	0	(10)
12 months or more, Total Fair Value	14,416	36,382
12 months or more, Unrealized Loss	(80)	(651)
Total Fair Value	14,416	41,438
Total Unrealized Loss	(80)	(661)
Obligations of states and political subdivisions
Less than 12 months, Total Fair Value	27,308	8,678
Less than 12 months, Unrealized Loss	(200)	(49)
12 months or more, Total Fair Value	1,842	5,696
12 months or more, Unrealized Loss	(31)	(94)
Total Fair Value	29,150	14,374
Total Unrealized Loss	(231)	(143)
Corporate debt
Less than 12 months, Total Fair Value	10,475	18,065
Less than 12 months, Unrealized Loss	(29)	(125)
12 months or more, Total Fair Value	1,986	4,919
12 months or more, Unrealized Loss	(16)	(80)
Total Fair Value	12,461	22,984
Total Unrealized Loss	$ (45)	$ (205)

D. SECURITIES AVAILABLE FOR S25

D. SECURITIES AVAILABLE FOR SALE, Amortized Cost and Carrying Value (Details) $ in Thousands	Sep. 30, 2015USD ($)
SECURITIES AVAILABLE FOR SALE - Summary of Investments Amortized Cost and Carrying Value
Due in one year or less, Amortized Cost	$ 12,762
Due after one through five years, Amortized Cost	139,399
Due after five through ten years, Amortized Cost	130,249
Due after ten years, Amortized Cost	28,417
Equity securities, Amortized Cost	310,827
Due in one year or less, Estimated Fair Value	12,853
Due after one through five years, Estimated Fair Value	141,174
Due after five through ten years, Estimated Fair Value	132,506
Due after ten years, Estimated Fair Value	29,027
Equity securities, Estimated Fair Value	$ 315,560

D. SECURITIES AVAILABLE FOR S26

D. SECURITIES AVAILABLE FOR SALE (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
D. Securities Available For Sale Details Narrative
Gross realized gains	$ 29	$ 112	$ 250	$ 151
Sell of securities	3,187	5,219	11,463	10,505
Gross realized losses	0	$ 12	0	$ 12
Amortized cost	102,182		102,182
Fair value of pledged as collateral for public deposits	$ 103,776		$ 103,776

E. LOANS, Summary of Loan as fo

E. LOANS, Summary of Loan as follows (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Gross loans	$ 707,506	$ 593,864
Net deferred loan fees	(678)	(449)
Allowance for loan losses	(9,940)	(9,700)
Net loans	696,888	583,715
Commercial real estate
Gross loans	394,090	318,427
Real estate construction
Gross loans	35,868	39,771
Real Estate Multi family
Gross loans	63,928	53,824
Real Estate 1 to 4 family
Gross loans	172,280	128,732
Commercial and industrial
Gross loans	39,843	51,662
Consumer
Gross loans	1,497	1,448
FNB Bancorp Originated
Gross loans	562,408	533,979
Net deferred loan fees	(678)	(449)
Allowance for loan losses	(9,940)	(9,700)
Net loans	551,790	523,830
FNB Bancorp Originated | Commercial real estate
Gross loans	304,276	285,252
FNB Bancorp Originated | Real estate construction
Gross loans	30,395	37,827
FNB Bancorp Originated | Real Estate Multi family
Gross loans	47,264	43,379
FNB Bancorp Originated | Real Estate 1 to 4 family
Gross loans	151,159	123,522
FNB Bancorp Originated | Commercial and industrial
Gross loans	27,817	42,551
FNB Bancorp Originated | Consumer
Gross loans	1,497	1,448
PNCI
Gross loans	143,777	58,562
Net deferred loan fees	0	0
Allowance for loan losses	0	0
Net loans	143,777	58,562
PNCI | Commercial real estate
Gross loans	88,493	31,852
PNCI | Real estate construction
Gross loans	5,473	1,944
PNCI | Real Estate Multi family
Gross loans	16,664	10,445
PNCI | Real Estate 1 to 4 family
Gross loans	21,121	5,210
PNCI | Commercial and industrial
Gross loans	12,026	9,111
PNCI | Consumer
Gross loans	0	0
PCI
Gross loans	1,321	1,323
Net deferred loan fees	0	0
Allowance for loan losses	0	0
Net loans	1,321	1,323
PCI | Commercial real estate
Gross loans	1,321	1,323
PCI | Real estate construction
Gross loans	0	0
PCI | Real Estate Multi family
Gross loans	0	0
PCI | Real Estate 1 to 4 family
Gross loans	0	0
PCI | Commercial and industrial
Gross loans	0	0
PCI | Consumer
Gross loans	$ 0	$ 0

E. LOANS, Allowance for Credit

E. LOANS, Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Commercial and Real estate
Allowance for credit losses
Beginning balance	$ 6,027	$ 6,215	$ 5,549	$ 5,763
Charge-offs	0	495	0	(105)
Recoveries	15	(83)	37	(83)
Provision	(67)	5	389	1,057
Ending balance	5,975	6,632	5,975	6,632
Ending balance: individually evaluated for impairment	126	111	126	111
Ending balance: collectively evaluated for impairment	5,849	6,521	5,849	6,521
Real Estate Construction
Allowance for credit losses
Beginning balance	697	717	849	734
Charge-offs	0	(150)	0	16
Recoveries	0	0	0	(183)
Provision	(49)	0	(201)	0
Ending balance	648	567	648	567
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	648	567	648	567
Real Estate Multi family
Allowance for credit losses
Beginning balance	198	465	206	293
Charge-offs	0	(202)	0	(30)
Recoveries	0	0	0	0
Provision	(10)	0	(18)	0
Ending balance	188	263	188	263
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	188	263	188	263
Real Estate 1 to 4 family
Allowance for credit losses
Beginning balance	2,014	2,250	1,965	1,788
Charge-offs	0	(193)	(45)	330
Recoveries	7	0	8	(62)
Provision	289	1	382	2
Ending balance	2,310	2,058	2,310	2,058
Ending balance: individually evaluated for impairment	522	429	522	429
Ending balance: collectively evaluated for impairment	1,788	1,629	1,788	1,629
Commercial and industrial
Allowance for credit losses
Beginning balance	848	1,166	1,073	1,237
Charge-offs	(23)	27	(23)	(158)
Recoveries	26	(17)	45	(28)
Provision	(73)	14	(317)	139
Ending balance	778	1,190	778	1,190
Ending balance: individually evaluated for impairment	224	177	224	177
Ending balance: collectively evaluated for impairment	554	1,013	554	1,013
Consumer
Allowance for credit losses
Beginning balance	52	46	58	64
Charge-offs	0	23	(11)	22
Recoveries	4	(6)	4	(26)
Provision	(15)	1	(10)	4
Ending balance	41	64	41	64
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	41	64	41	64
Total
Allowance for credit losses
Beginning balance	9,836	10,859	9,700	9,879
Charge-offs	(23)	0	(79)	75
Recoveries	52	(106)	94	(382)
Provision	75	21	225	1,202
Ending balance	9,940	10,774	9,940	10,774
Ending balance: individually evaluated for impairment	872	717	872	717
Ending balance: collectively evaluated for impairment	$ 9,068	$ 10,057	$ 9,068	$ 10,057

E. LOANS, Recorded Investment i

E. LOANS, Recorded Investment in Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Commercial and Real estate
Ending balance	$ 394,090	$ 318,427	$ 320,695
Ending balance: individually evaluated for impairment	9,501	9,530	10,158
Ending balance: collectively evaluated for impairment	384,589	308,897	310,537
Real Estate Construction
Ending balance	35,868	39,771	34,701
Ending balance: individually evaluated for impairment	2,162	2,373	2,378
Ending balance: collectively evaluated for impairment	33,706	37,398	32,323
Real Estate Multi family
Ending balance	63,928	53,824	53,721
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	63,928	53,824	53,721
Real Estate 1 to 4 family
Ending balance	172,280	128,732	120,233
Ending balance: individually evaluated for impairment	4,857	4,333	4,292
Ending balance: collectively evaluated for impairment	167,423	124,399	115,941
Commercial and industrial
Ending balance	39,843	51,662	48,916
Ending balance: individually evaluated for impairment	1,813	2,315	2,170
Ending balance: collectively evaluated for impairment	38,030	49,347	46,746
Consumer
Ending balance	1,497	1,448	1,483
Ending balance: individually evaluated for impairment	0	64	0
Ending balance: collectively evaluated for impairment	1,497	1,384	1,483
Total
Ending balance	707,506	593,864	579,749
Ending balance: individually evaluated for impairment	18,333	18,615	18,998
Ending balance: collectively evaluated for impairment	$ 689,173	$ 575,249	$ 560,751

E. LOANS, Impaired Loans Allowa

E. LOANS, Impaired Loans Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
With no related allowance, Recorded Investment	$ 8,557		$ 8,557		$ 9,011
With no related allowance, Unpaid Principal Balance	9,874		9,874		10,565
With no related allowance recorded, Related Allowance			0		0
With no related allowance, Average Recorded Investment			13,118		8,486
With no related allowance, Income Recognized			393		575
With an allowance recorded, Recorded Investment	9,776		9,776		9,604
With an allowance recorded, Unpaid Principal Balance	9,624		9,624		9,989
With an allowance recorded, Related Allowance	872		872		766
With an allowance recorded, Average Impaired Balance			9,853		9,860
With an allowance recorded, Income Recognized			297		407
Recorded Investment	18,333		18,333		18,615
Unpaid Principal Balance	19,498		19,498		20,554
Related Allowance	872		872		766
Average Recorded Investment			22,971		18,346
Income Recognized	222	$ 291	690	$ 746	982
Commercial real estate
With no related allowance, Recorded Investment	4,392		4,392		4,462
With no related allowance, Unpaid Principal Balance	5,271		5,271		5,333
With no related allowance recorded, Related Allowance			0		0
With no related allowance, Average Recorded Investment			4,867		4,473
With no related allowance, Income Recognized			217		304
With an allowance recorded, Recorded Investment	5,109		5,109		5,068
With an allowance recorded, Unpaid Principal Balance	5,113		5,113		5,071
With an allowance recorded, Related Allowance	126		126		101
With an allowance recorded, Average Impaired Balance			5,162		5,127
With an allowance recorded, Income Recognized			196		258
Recorded Investment	9,501		9,501		9,530
Unpaid Principal Balance	10,384		10,384		10,404
Related Allowance	126		126		101
Average Recorded Investment			10,029		9,600
Income Recognized			413		562
Commercial real estate construction
With no related allowance, Recorded Investment	2,162		2,162		2,373
With no related allowance, Unpaid Principal Balance	2,345		2,345		2,556
With no related allowance recorded, Related Allowance			0		0
With no related allowance, Average Recorded Investment			2,359		1,846
With no related allowance, Income Recognized			100		150
With an allowance recorded, Recorded Investment	0		0		0
With an allowance recorded, Unpaid Principal Balance	0		0		0
With an allowance recorded, Related Allowance	0		0		0
With an allowance recorded, Average Impaired Balance			0		0
With an allowance recorded, Income Recognized			0		0
Recorded Investment	2,162		2,162		2,373
Unpaid Principal Balance	2,345		2,345		2,556
Related Allowance	0		0		0
Average Recorded Investment			2,359		1,846
Income Recognized			100		150
Real Estate Multi family
With no related allowance, Recorded Investment	0		0		0
With no related allowance, Unpaid Principal Balance	0		0		0
With no related allowance recorded, Related Allowance			0		0
With no related allowance, Average Recorded Investment			0		0
With no related allowance, Income Recognized			0		0
With an allowance recorded, Recorded Investment	0		0		0
With an allowance recorded, Unpaid Principal Balance	0		0		0
With an allowance recorded, Related Allowance	0		0		0
With an allowance recorded, Average Impaired Balance			0		0
With an allowance recorded, Income Recognized			0		0
Recorded Investment	0		0		0
Unpaid Principal Balance	0		0		0
Related Allowance	0		0		0
Average Recorded Investment			0		0
Income Recognized			0		0
Real Estate 1 to 4 family
With no related allowance, Recorded Investment	1,475		1,475		1,594
With no related allowance, Unpaid Principal Balance	1,476		1,476		1,737
With no related allowance recorded, Related Allowance			0		0
With no related allowance, Average Recorded Investment			1,482		1,379
With no related allowance, Income Recognized			49		67
With an allowance recorded, Recorded Investment	3,382		3,382		2,739
With an allowance recorded, Unpaid Principal Balance	2,972		2,972		2,754
With an allowance recorded, Related Allowance	522		522		432
With an allowance recorded, Average Impaired Balance			3,202		2,759
With an allowance recorded, Income Recognized			96		111
Recorded Investment	4,857		4,857		4,333
Unpaid Principal Balance	4,448		4,448		4,491
Related Allowance	522		522		432
Average Recorded Investment			4,684		4,138
Income Recognized			145		178
Commercial and industrial
With no related allowance, Recorded Investment	528		528		582
With no related allowance, Unpaid Principal Balance	782		782		939
With no related allowance recorded, Related Allowance			0		0
With no related allowance, Average Recorded Investment			4,410		788
With no related allowance, Income Recognized			27		54
With an allowance recorded, Recorded Investment	1,285		1,285		1,733
With an allowance recorded, Unpaid Principal Balance	1,539		1,539		2,100
With an allowance recorded, Related Allowance	224		224		225
With an allowance recorded, Average Impaired Balance			1,489		1,907
With an allowance recorded, Income Recognized			5		33
Recorded Investment	1,813		1,813		2,315
Unpaid Principal Balance	2,321		2,321		3,039
Related Allowance	224		224		225
Average Recorded Investment			5,899		2,695
Income Recognized			32		87
Consumer
With no related allowance, Recorded Investment	0		0		0
With no related allowance, Unpaid Principal Balance	0		0		0
With no related allowance recorded, Related Allowance			0		0
With no related allowance, Average Recorded Investment			0		0
With no related allowance, Income Recognized			0		0
With an allowance recorded, Recorded Investment	0		0		64
With an allowance recorded, Unpaid Principal Balance	0		0		64
With an allowance recorded, Related Allowance	0		0		8
With an allowance recorded, Average Impaired Balance			0		67
With an allowance recorded, Income Recognized			0		5
Recorded Investment	0		0		64
Unpaid Principal Balance	0		0		64
Related Allowance	$ 0		0		8
Average Recorded Investment			0		67
Income Recognized			$ 0		$ 5

E. LOANS, Nonaccrual (Details)

E. LOANS, Nonaccrual (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Loans, Nonaccrual Status	$ 5,192	$ 5,648
Commercial real estate
Loans, Nonaccrual Status	2,094	2,111
Real Estate 1 to 4 family
Loans, Nonaccrual Status	1,285	1,181
Commercial and industrial
Loans, Nonaccrual Status	1,813	2,292
Consumer
Loans, Nonaccrual Status	$ 0	$ 64

E. LOANS, Troubled Debt Restruc

E. LOANS, Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Troubled debt restructured loans outstanding, accrual status	$ 12,152	$ 12,158
Troubled debt restructured loans outstanding, nonaccrual status	3,689	4,359
Total modifications	15,841	16,517
Commercial real estate
Troubled debt restructured loans outstanding, accrual status	7,265	7,407
Troubled debt restructured loans outstanding, nonaccrual status	2,081	2,091
Total modifications	9,346	9,498
Real Estate Construction
Troubled debt restructured loans outstanding, accrual status	1,291	1,304
Troubled debt restructured loans outstanding, nonaccrual status	0	0
Total modifications	1,291	1,304
Real Estate 1 to 4 family
Troubled debt restructured loans outstanding, accrual status	3,596	3,153
Troubled debt restructured loans outstanding, nonaccrual status	0	508
Total modifications	3,596	3,661
Commercial and industrial
Troubled debt restructured loans outstanding, accrual status	0	294
Troubled debt restructured loans outstanding, nonaccrual status	1,608	1,760
Total modifications	$ 1,608	$ 2,054

E. LOANS, Payment Modification

E. LOANS, Payment Modification (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Number of Modifications	1	4
Pre-modification Recorded Investment	$ 474	$ 2,029
Post-modification Recorded Investment	$ 474	$ 2,018
Real Estate 1 to 4 family
Number of Modifications	1	1
Pre-modification Recorded Investment	$ 474	$ 575
Post-modification Recorded Investment	$ 474	$ 569
Commercial real estate
Number of Modifications		3
Pre-modification Recorded Investment		$ 1,454
Post-modification Recorded Investment		$ 1,449

E. LOANS, Past due loans (Detai

E. LOANS, Past due loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Originated
Past Due, Total	$ 3,137	$ 9,434
Current	559,271	524,545
Total Loans	562,408	533,979
Originated | Past Due, 30 - 59 days
Past Due, Total	0	4,688
Originated | Past Due, 60 - 89 days
Past Due, Total	713	2,886
Originated | Past Due, More than 90 days
Past Due, Total	2,424	1,860
Originated | Commercial real estate
Past Due, Total	0	887
Current	304,276	284,365
Total Loans	304,276	285,252
Originated | Commercial real estate | Past Due, 30 - 59 days
Past Due, Total	0	8
Originated | Commercial real estate | Past Due, 60 - 89 days
Past Due, Total	0	879
Originated | Commercial real estate | Past Due, More than 90 days
Past Due, Total	0	0
Originated | Real Estate Construction
Past Due, Total	713	708
Current	29,682	37,119
Total Loans	30,395	37,827
Originated | Real Estate Construction | Past Due, 30 - 59 days
Past Due, Total	0	0
Originated | Real Estate Construction | Past Due, 60 - 89 days
Past Due, Total	713	708
Originated | Real Estate Construction | Past Due, More than 90 days
Past Due, Total	0	0
Originated | Real Estate Multi family
Past Due, Total	0	3,575
Current	47,264	39,804
Total Loans	47,264	43,379
Originated | Real Estate Multi family | Past Due, 30 - 59 days
Past Due, Total	0	3,575
Originated | Real Estate Multi family | Past Due, 60 - 89 days
Past Due, Total	0	0
Originated | Real Estate Multi family | Past Due, More than 90 days
Past Due, Total	0	0
Originated | Real Estate 1 to 4 family
Past Due, Total	611	1,642
Current	150,548	121,880
Total Loans	151,159	123,522
Originated | Real Estate 1 to 4 family | Past Due, 30 - 59 days
Past Due, Total	0	330
Originated | Real Estate 1 to 4 family | Past Due, 60 - 89 days
Past Due, Total	0	200
Originated | Real Estate 1 to 4 family | Past Due, More than 90 days
Past Due, Total	611	1,112
Originated | Commercial and industrial
Past Due, Total	1,813	2,558
Current	26,004	39,993
Total Loans	27,817	42,551
Originated | Commercial and industrial | Past Due, 30 - 59 days
Past Due, Total	0	775
Originated | Commercial and industrial | Past Due, 60 - 89 days
Past Due, Total	0	73
Originated | Commercial and industrial | Past Due, More than 90 days
Past Due, Total	1,813	1,710
Originated | Consumer
Past Due, Total	0	64
Current	1,497	1,384
Total Loans	1,497	1,448
Originated | Consumer | Past Due, 30 - 59 days
Past Due, Total	0	0
Originated | Consumer | Past Due, 60 - 89 days
Past Due, Total	0	0
Originated | Consumer | Past Due, More than 90 days
Past Due, Total	0	64
Purchased Not credit impaired
Past Due, Total	4,723	400
Current	139,054	58,162
Total Loans	143,777	58,562
Purchased Not credit impaired | Past Due, 30 - 59 days
Past Due, Total	545	0
Purchased Not credit impaired | Past Due, 60 - 89 days
Past Due, Total	3,778	400
Purchased Not credit impaired | Past Due, More than 90 days
Past Due, Total	400	0
Purchased Not credit impaired | Commercial real estate
Past Due, Total	4,309	0
Current	84,184	31,852
Total Loans	88,493	31,852
Purchased Not credit impaired | Commercial real estate | Past Due, 30 - 59 days
Past Due, Total	513	0
Purchased Not credit impaired | Commercial real estate | Past Due, 60 - 89 days
Past Due, Total	3,778	0
Purchased Not credit impaired | Commercial real estate | Past Due, More than 90 days
Past Due, Total	0	0
Purchased Not credit impaired | Real Estate Construction
Past Due, Total	0	0
Current	5,473	1,944
Total Loans	5,473	1,944
Purchased Not credit impaired | Real Estate Construction | Past Due, 30 - 59 days
Past Due, Total	0	0
Purchased Not credit impaired | Real Estate Construction | Past Due, 60 - 89 days
Past Due, Total	0	0
Purchased Not credit impaired | Real Estate Construction | Past Due, More than 90 days
Past Due, Total	0	0
Purchased Not credit impaired | Real Estate Multi family
Past Due, Total	0	0
Current	16,664	10,445
Total Loans	16,664	10,445
Purchased Not credit impaired | Real Estate Multi family | Past Due, 30 - 59 days
Past Due, Total	0	0
Purchased Not credit impaired | Real Estate Multi family | Past Due, 60 - 89 days
Past Due, Total	0	0
Purchased Not credit impaired | Real Estate Multi family | Past Due, More than 90 days
Past Due, Total	0	0
Purchased Not credit impaired | Real Estate 1 to 4 family
Past Due, Total	414	400
Current	20,707	4,810
Total Loans	21,121	5,210
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, 30 - 59 days
Past Due, Total	14	0
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, 60 - 89 days
Past Due, Total	0	400
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, More than 90 days
Past Due, Total	400	0
Purchased Not credit impaired | Commercial and industrial
Past Due, Total	0	0
Current	12,026	9,111
Total Loans	12,026	9,111
Purchased Not credit impaired | Commercial and industrial | Past Due, 30 - 59 days
Past Due, Total	0	0
Purchased Not credit impaired | Commercial and industrial | Past Due, 60 - 89 days
Past Due, Total	0	0
Purchased Not credit impaired | Commercial and industrial | Past Due, More than 90 days
Past Due, Total	0	0
Purchased Credit impaired
Past Due, Total	0
Current	1,321	1,323
Total Loans	1,321	1,323
Purchased Credit impaired | Commercial real estate
Past Due, Total	0
Current	1,321	1,323
Total Loans	$ 1,321	$ 1,323

E. LOANS, Credit Quality Indica

E. LOANS, Credit Quality Indicators Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Pass
Commercial real estate	$ 298,182	$ 281,216
Real estate construction	29,333	38,962
Real estate multi-family	47,264	43,379
Real estate 1 to 4 family	150,346	122,499
Commercial & industrial	27,211	41,394
Consumer loans	1,497	1,384
Totals	553,833	528,834
Commercial real estate	66,703	26,009
Real estate construction	5,473	1,944
Real estate multi-family	16,664	10,445
Real estate 1 to 4 family	20,720	4,810
Commercial & industrial	11,931	9,111
Total	121,491	52,319
Special mention
Commercial real estate	1,862	1,913
Real estate construction	0	0
Real estate multi-family	0	0
Real estate 1 to 4 family	0	0
Commercial & industrial	0	0
Consumer loans	0	0
Totals	1,862	1,913
Commercial real estate	7,745	0
Real estate construction	0	0
Real estate multi-family	0	0
Real estate 1 to 4 family	0	0
Commercial & industrial	0	0
Total	7,745	0
Sub Standard
Commercial real estate	4,232	2,031
Real estate construction	1,062	1,135
Real estate multi-family	0	0
Real estate 1 to 4 family	813	1,023
Commercial & industrial	441	1,157
Consumer loans	0	64
Totals	6,548	5,410
Commercial real estate	14,031	5,843
Real estate construction	0	0
Real estate multi-family	0	0
Real estate 1 to 4 family	401	0
Commercial & industrial	95	0
Total	14,527	5,843
Doubtful
Commercial real estate	0	92
Real estate construction	0	0
Real estate multi-family	0	0
Real estate 1 to 4 family	0	0
Commercial & industrial	165	0
Consumer loans	0	0
Totals	165	92
Commercial real estate	14	0
Real estate construction	0	0
Real estate multi-family	0	0
Real estate 1 to 4 family	0	400
Commercial & industrial	0	0
Total	14	400
Total loans
Commercial real estate	304,276	285,252
Real estate construction	30,395	37,827
Real estate multi-family	47,264	43,379
Real estate 1 to 4 family	151,159	123,522
Commercial & industrial	27,817	42,551
Consumer loans	1,497	1,448
Totals	562,408	533,979
Commercial real estate	88,493	31,852
Real estate construction	5,473	1,944
Real estate multi-family	16,664	10,445
Real estate 1 to 4 family	21,121	5,210
Commercial & industrial	12,026	9,111
Total	143,777	58,562
Commercial real estate	1,321	1,323
Total	$ 1,321	$ 1,323

E. LOANS, (Details Narrative)

E. LOANS, (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Investment on impaired loans	$ 20,998	$ 18,926	$ 22,971	$ 18,641
Interest income on impaired loans recognized	222	$ 291	690	$ 746	$ 982
Interest on impaired loans not collected			284		91
Cumulative amount of unpaid interest on impaired loans			3,228		2,944
Nonaccrual loans	5,192		5,192		5,648
Total outstanding principal of troubled debt restructured loans	15,841		15,841		16,517
Commercial real estate
Interest income on impaired loans recognized			413		562
Nonaccrual loans	2,094		2,094		2,111
Total outstanding principal of troubled debt restructured loans	9,346		9,346		9,498
Real estate construction
Total outstanding principal of troubled debt restructured loans	1,291		1,291
Real Estate 1 to 4 family
Interest income on impaired loans recognized			145		178
Nonaccrual loans	1,285		1,285		1,181
Total outstanding principal of troubled debt restructured loans	3,596		3,596		3,661
Commercial and industrial
Interest income on impaired loans recognized			32		87
Nonaccrual loans	1,813		1,813		2,292
Total outstanding principal of troubled debt restructured loans	$ 1,608		$ 1,608		2,054
Real Estate Construction
Total outstanding principal of troubled debt restructured loans					$ 1,304

G. FAIR VALUE MEASUREMENT, Asse

G. FAIR VALUE MEASUREMENT, Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
U. S. Treasury securities	$ 6,079	$ 3,958
Obligations of U.S. Government agencies	80,153	63,062
Mortgage-backed securities	63,496	78,417
Obligations of states and political subdivisions	125,028	84,542
Corporate debt	40,804	34,902
Total assets measured at fair value	315,560	264,881
Quoted Prices in Active Markets for Identical Assets (Level 1)
U. S. Treasury securities	6,079	3,958
Obligations of U.S. Government agencies	0	0
Mortgage-backed securities	0	0
Obligations of states and political subdivisions	0	0
Corporate debt	0	0
Total assets measured at fair value	6,079	3,958
Other Observable Inputs (Level 2)
U. S. Treasury securities	0	0
Obligations of U.S. Government agencies	80,153	63,062
Mortgage-backed securities	63,496	78,417
Obligations of states and political subdivisions	125,028	84,542
Corporate debt	40,804	34,902
Total assets measured at fair value	309,481	260,923
Significant Unobservable Inputs(Level 3)
U. S. Treasury securities	0	0
Obligations of U.S. Government agencies	0	0
Mortgage-backed securities	0	0
Obligations of states and political subdivisions	0	0
Corporate debt	0	0
Total assets measured at fair value	$ 0	$ 0

G. FAIR VALUE MEASUREMENT, Nonr

G. FAIR VALUE MEASUREMENT, Nonrecurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value
Commercial real estate	$ 123	$ 381
Residential- 1 to 4 family	238	323
Commercial and Industrial	1,016	1,472
Consumer	0	56
Other real estate owned	838	763
Total impaired assets measured at fair value	2,215	2,232
Quoted Prices in Active Markets for Identical Assets (Level 1)
Commercial real estate	0	0
Residential- 1 to 4 family	0	0
Commercial and Industrial	0	0
Consumer	0	0
Other real estate owned	0	0
Total impaired assets measured at fair value	0	0
Other Observable Inputs (Level 2)
Commercial real estate	0	0
Residential- 1 to 4 family	0	0
Commercial and Industrial	0	0
Consumer	0	0
Other real estate owned	0	0
Total impaired assets measured at fair value	0	0
Significant Unobservable Inputs(Level 3)
Commercial real estate	123	381
Residential- 1 to 4 family	238	323
Commercial and Industrial	1,016	1,472
Consumer	0	56
Other real estate owned	838	763
Total impaired assets measured at fair value	$ 2,215	$ 2,232

G. FAIR VALUE MEASUREMENT, Fina

G. FAIR VALUE MEASUREMENT, Financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Financial assets:
Cash and cash equivalents	$ 40,282	$ 14,978	$ 15,220	$ 14,007
Interest-bearing time deposits with financial Institutions	1,246	2,784
Other Equity Securities	315,560
Accrued interest receivable	4,326	3,725
Financial liabilities:
Deposits	989,365	792,194
Notes payable	5,100	5,550
Carrying Amount
Financial assets:
Cash and cash equivalents	40,282	14,978
Interest-bearing time deposits with financial Institutions	1,246	2,784
Securities available for sale	315,560	264,881
Loans	707,506	593,864
Other Equity Securities	6,748	5,769
Accrued interest receivable	4,326	3,725
Financial liabilities:
Deposits	989,365	792,194
Federal Home Loan Bank advances		9,000
Notes payable	5,100	5,550
Accrued interest payable	237	182
Off-balance-sheet liabilities:
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit	0	0
Fair Value
Financial assets:
Cash and cash equivalents	40,282	14,978
Interest-bearing time deposits with financial Institutions	1,250	2,813
Securities available for sale	315,560	264,881
Loans	709,391	594,524
Other Equity Securities	6,748	5,769
Accrued interest receivable	4,326	3,725
Financial liabilities:
Deposits	989,845	792,472
Federal Home Loan Bank advances		9,000
Notes payable	5,100	5,550
Accrued interest payable	237	182
Off-balance-sheet liabilities:
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit	1,707	1,449
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	40,282	14,978
Interest-bearing time deposits with financial Institutions	1,250	0
Securities available for sale	6,079	3,958
Loans	0	0
Other Equity Securities	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
Federal Home Loan Bank advances		0
Notes payable	0	0
Accrued interest payable	0	0
Off-balance-sheet liabilities:
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit	0	0
Other Observable Inputs (Level 2)
Financial assets:
Cash and cash equivalents	0	0
Interest-bearing time deposits with financial Institutions	0	2,813
Securities available for sale	309,481	260,923
Loans	0	0
Other Equity Securities	0	0
Accrued interest receivable	4,326	3,725
Financial liabilities:
Deposits	989,845	792,472
Federal Home Loan Bank advances		9,000
Notes payable	5,100	5,550
Accrued interest payable	237	182
Off-balance-sheet liabilities:
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit	0	0
Significant Unobservable Inputs(Level 3)
Financial assets:
Cash and cash equivalents	0	0
Interest-bearing time deposits with financial Institutions	0	0
Loans	709,391	594,524
Other Equity Securities	6,748	5,769
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
Federal Home Loan Bank advances		0
Notes payable	0	0
Accrued interest payable	0	0
Off-balance-sheet liabilities:
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit	$ 1,707	$ 1,449

G. FAIR VALUE MEASUREMENT (Deta

G. FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
FAIR VALUE MEASUREMENT TABLES
Nonaccrual loans	$ 5,192	$ 5,648

H. ACQUISITION, Estimated fair

H. ACQUISITION, Estimated fair values (Details) - USD ($) $ in Thousands	Sep. 04, 2015	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks		$ 40,282	$ 14,978
Interest-bearing time deposits with financial institutions		1,246	2,784
Other equity securities		6,748	5,769
Loans		696,888	583,715
Premises and equipment, net		10,326	10,951
Bank owned life insurance		15,742	12,510
Accrued interest receivable		4,326	3,725
Prepaid expense		877	1,045
Goodwill		4,580	1,841
Other assets		14,044	14,202
Total Assets		1,111,457	917,164
Deposits:
Demand deposits		262,206	202,811
NOW accounts		84,682	89,548
Savings and money market deposits		512,534	394,676
Time deposits		129,943	105,159
Total deposits		989,365	792,194
Accrued expenses and other liabilities		13,302	13,332
Total Liabilities		1,007,767	820,076
America California Bank tangible Stockholders’ Equity		$ 103,690	$ 97,088
America California Bank
Assets
Cash and due from banks	$ 3,019
Interest-bearing time deposits with financial institutions	7,836
Other equity securities	679
Loans	92,969
Premises and equipment, net	62
Bank owned life insurance	2,971
Accrued interest receivable	313
Prepaid expense	1,808
Other assets	2,731
Total Assets	115,127
Deposits:
Demand deposits	14,500
NOW accounts	6,122
Savings and money market deposits	42,680
Time deposits	26,824
Total deposits	90,126
Accrued expenses and other liabilities	3,501
Total Liabilities	93,627
Merger consideration (cash)	21,500
America California Bank tangible Stockholders’ Equity	18,440
Adjustments to reflect assets acquired and liabilities assumed at fair value:
Loans	2,178
Core deposit intangible	(727)
Certificates of deposit	(243)
Accrued expenses	(1,832)
Other borrowings	(86)
Subtotal net fair value adjustments	744
Deferred tax liability related to purchase	(423)
Total fair value adjustments	321
Fair value of Net Assets Acquired	18,761
Merger Consideration	21,500
Less: Fair Value of Net Assets Acquired	(18,761)
Goodwill	$ 2,739

H. ACQUISITION, Acquisition Rel

H. ACQUISITION, Acquisition Related Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Acquisition Related Expense
Data processing	$ 659	$ 151	$ 940	$ 430
Legal and accounting	334	395	1,075	1,427
D & O insurance -tail end coverage	313	$ 352	$ 911	$ 1,000
America California Bank
Acquisition Related Expense
Occupancy	345
Data processing	515
Legal and accounting	150
D & O insurance -tail end coverage	35
Total	$ 1,045

H. ACQUISITION, Pro forma conso

H. ACQUISITION, Pro forma consolidated condensed statements of earnings (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net interest income after provision for loan losses	$ 9,125	$ 8,762	$ 26,236	$ 25,907
Noninterest income	1,024	1,041	3,367	3,067
Noninterest expense	7,479	7,055	21,211	21,107
Earnings before provision for income tax expense	2,670	2,748	8,392	7,867
Provision for income tax expense	431	925	2,283	2,581
Net earnings	$ 2,239	$ 1,823	$ 6,109	$ 5,286
Earnings per share data:
Basic	$ 0.52	$ 0.43	$ 1.42	$ 1.21
Diluted	$ 0.51	$ 0.42	$ 1.38	$ 1.17
Weighted average shares outstanding:
Basic	4,309	4,250	4,293	4,222
Diluted	4,422	4,384	4,414	4,364
As Reported
Net interest income after provision for loan losses			$ 26,236	$ 25,907
Noninterest income			3,367	3,067
Noninterest expense			21,211	21,107
Earnings before provision for income tax expense			8,392	7,867
Provision for income tax expense			2,283	2,581
Net earnings			$ 6,109	$ 5,286
Earnings per share data:
Basic			$ 1.42	$ 1.25
Diluted			$ 1.38	$ 1.21
Weighted average shares outstanding:
Basic			4,293	4,222
Diluted			4,414	4,364
As Adjusted
Net interest income after provision for loan losses			$ 29,289	$ 29,271
Noninterest income			3,518	3,263
Noninterest expense			23,952	23,878
Earnings before provision for income tax expense			8,855	8,656
Provision for income tax expense			2,467	2,895
Net earnings			$ 6,388	$ 5,761
Earnings per share data:
Basic			$ 1.49	$ 1.36
Diluted			$ 1.45	$ 1.32
Weighted average shares outstanding:
Basic			4,293	4,222
Diluted			4,414	4,364