FNB Bancorp 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2018shares
Document and Entity Information:
Entity Registrant Name	FNB BANCORP/CA/
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Entity Central Index Key	1,163,199
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	7,480,538
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Cash and due from banks	$ 5,733	$ 5,585
Interest-bearing time deposits with financial institutions	15,630	12,898
Securities available-for-sale, at fair value	348,264	355,857
Other equity securities	7,567	7,567
Loans, net of allowance for loan losses of $10,186 and $10,171 on March 31, 2018 and December 31, 2017	831,049	829,766
Bank premises, equipment, and leasehold improvements, net	9,159	9,322
Bank owned life insurance, net	16,736	16,637
Accrued interest receivable	4,914	5,317
Other real estate owned, net	1,817	3,300
Goodwill	4,580	4,580
Prepaid expenses	675	825
Other assets	13,842	13,584
Total assets	1,259,966	1,265,238
Deposits
Demand, noninterest bearing	333,681	313,435
Demand, interest bearing	129,340	130,988
Savings and money market	425,757	467,788
Time	129,675	138,084
Total deposits	1,018,453	1,050,295
Federal Home Loan Bank advances	100,000	75,000
Note Payable	3,600	3,750
Accrued expenses and other liabilities	17,455	16,913
Total liabilities	1,139,508	1,145,958
Stockholders' equity
Common stock, no par value, authorized 10,000,000 shares; issued and outstanding 7,480,538 shares at March 31, 2018 and 7,442,279 shares at December 31, 2017	85,854	85,565
Retained earnings	37,866	34,654
Accumulated other comprehensive loss, net of tax	(3,262)	(939)
Total stockholders' equity	120,458	119,280
Total liabilities and stockholders' equity	$ 1,259,966	$ 1,265,238

CONSOLIDATED BALANCE SHEETS (U3

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 10,186	$ 10,171
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	7,480,538	7,442,279
Common stock, shares outstanding	7,480,538	7,442,279

CONSOLIDATED STATEMENTS OF EARN

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest income:
Interest and fees on loans	$ 10,399	$ 10,073
Interest on taxable securities	1,364	1,210
Interest on tax-exempt securities	726	733
Interest time deposits with other financial institutions	72	11
Total interest income	12,561	12,027
Interest expense:
Interest on deposits	737	636
Interest on FHLB advances	349	146
Interest on note payable	53	53
Total interest expense	1,139	835
Net interest income	11,422	11,192
Provision for loan losses	0	0
Net interest income after provision for loan losses	11,422	11,192
Noninterest income:
Service charges	529	597
Gain on sale of available-for-sale securities	0	28
Earnings on Bank owned life insurance	99	102
Other income	214	283
Total noninterest income	842	1,010
Noninterest expense:
Salaries and employee benefits	4,121	4,774
Occupancy expense	657	651
Equipment expense	523	402
Professional fees	203	473
FDIC assessment	90	130
Telephone, postage and supplies	314	297
Advertising	100	108
Data processing expense	143	139
Low income housing expense	129	105
Surety insurance	89	84
Directors expense	72	72
Gain on sale of other real estate owned	(392)	0
Other real estate owned expense	59	10
Other expense	313	360
Total noninterest expense	6,421	7,605
Earnings before provision for income tax expense	5,843	4,597
Provision for income tax expense	1,655	1,508
Net earnings	$ 4,188	$ 3,089
Earnings per share data:
Basic	$ 0.56	$ 0.42
Diluted	$ 0.54	$ 0.41
Weighted average shares outstanding:
Basic	7,463	7,300
Diluted	7,685	7,518

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Other Comprehensive Income [Abstract]
Net earnings	$ 4,188	$ 3,089
Unrealized holding (loss) gain on available-for-sale securities, net of tax benefit (expense) of $1,004 and ($1,005)	(2,323)	1,450
Reclassifiation adjustment for gain recognized on available-for-sale securities sold, net of tax benefit of $0 and $11 for the three months ended March 31,2018 and 2017, respectively	0	(17)
Total other comprehensive (loss) earnings	(2,323)	1,433
Total comprehensive earnings	$ 1,865	$ 4,522

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Other Comprehensive Income [Abstract]
Tax (benefit) expense on unrealized holding gain on available-for-sale securities	$ 1,004	$ (1,005)
Tax on reclassification adjustment for gain on available-for-sale	$ 0	$ 11

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flow from operating activities:
Net earnings	$ 4,188	$ 3,089
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net gain on sale of securities available-for-sale	0	(28)
Net gain on sale of other real estate owned	(392)	0
Depreciation, amortization and accretion	960	992
Stock-based compensation expense	92	103
Earnings on bank owned life insurance	(99)	(102)
Tax benefit of stock option exercises	(37)	0
Decrease in net deferred loan fees	(170)	(70)
Increase in accrued interest receivable	403	157
Decrease in prepaid expense	150	88
Increase in other assets	(221)	(171)
Increase in accrued expenses and other liabilities	821	2,031
Net cash provided by operating activities	5,695	6,089
Cash flows from investing activities:
Purchase of securities available-for-sale	0	(9,408)
Proceeds from matured/called/sold securities available-for-sale	3,527	17,862
Investment, net of redemption, in other equity securities	0	(5)
Net proceeds from the sale of other real estate owned	1,400	0
Net investment in other real estate owned	1,121	(16)
Net increase in loans	(1,034)	(24,636)
Purchases of bank premises, equipment, leasehold improvements	(58)	(35)
Net cash provided by (used in) investing activities	4,956	(16,238)
Cash flows from financing activities:
Net (decrease) increase in demand and savings deposits	(23,433)	4,247
Net (decrease) increase in time deposits	(8,409)	1,238
Increase in FHLB advances	25,000	15,000
Principal reduction on note payable	(150)	(150)
Dividends paid on common stock	(976)	(824)
Exercise of stock options	197	217
Net cash (used in) provided by financing activities	(7,771)	19,728
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,880	9,579
Cash and cash equivalents at beginning of period	18,353	15,758
Cash and cash equivalents at end of period	21,233	25,337
Additional cash flow information:
Interest paid	1,008	855
Income taxes paid	120	0
Non-cash investing and financing activities:
Accrued dividends	970	780
Change in unrealized (loss) gain in available for-sale securities, net of tax	(2,323)	1,433
Loans to finance sales of other real estate owned	$ 1,200	$ 0

A. BASIS OF PRESENTATION

A. BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
A. Basis Of Presentation
BASIS OF PRESENTATION	As announced by the Company on December 11, 2017 and reported in the Company’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2017 (the “Current Report”), the Company has entered into an Agreement and Plan of Merger and Reorganization dated December 11, 2017 (the “Merger Agreement”), pursuant to which the Company would merge with and into TriCo Bancshares, a California corporation (“TriCo”), with TriCo being the surviving corporation. Immediately thereafter, the Company’s subsidiary bank, First National Bank of Northern California, would be merged with and into TriCo’s subsidiary bank, Tri Counties Bank. Under the terms of the Merger Agreement, the Company shareholders would receive a fixed exchange ratio of 0.9800 shares of TriCo common stock for each share of Company common stock, providing the Company shareholders with aggregate ownership on a pro forma basis of approximately 24% of the common stock of the combined company. Holders of the Company’s outstanding in-the-money stock options would receive cash, net of applicable taxes withheld, for the value of their unexercised stock options. The merger is expected to qualify as a tax-free exchange for shareholders who receive shares of TriCo common stock. The transactions contemplated by the Merger Agreement are expected to close in the second or third quarter of 2018, pending approvals of the Company shareholders and the TriCo shareholders, the receipt of all necessary regulatory approvals, and the satisfaction of other closing conditions which are customary for such transactions. For additional information, reference should be made to the text of the Agreement and Plan of Merger and Reorganization, filed as an exhibit to the Current Report, and to other information regarding TriCo and the Company, their respective businesses and the status of their proposed merger, as reported from time to time in other filings with the Securities and Exchange Commission. 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 Mateo and San Francisco counties. Beginning in 2018, the fair value disclosures related to loans require that the fair market value be reported net of unearned income and the allowance for loan losses in accordance with ASU No. 2016-01 using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. 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, 2017. 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. Accounting Standards Adopted in 2018 In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance requires entities to recognize revenues when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the provisions of ASU No. 2014-09 on January 1, 2018. The Company adopted the new guidance using the modified retrospective transition approach, in which the guidance would only be applied to existing contracts in effect at January 1, 2018 and new contracts entered into after this date. Most of the Company’s revenue is comprised of net interest income on loans, leases, investment securities and deposits, and is explicitly out of scope of the new revenue recognition guidance. Management conducted an assessment of the revenue streams that were potentially affected by the new guidance and reviewed contracts in scope to ensure compliance with the new guidance. These contracts included those related to credit and debit card fees, service charges and fees on deposit accounts and trust and investment services fees. The adoption of ASU No. 2014-09 did allow a gain on sale of $392,000 related to the sale of our 417 Browning Way, South San Francisco, CA OREO property. Additional disclosures required by the standard have been included in “Note F. OTHER REAL ESTATE OWNED” to the Company’s consolidated financial statements.

B. STOCK OPTION PLANS

B. STOCK OPTION PLANS	3 Months Ended
	Mar. 31, 2018
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 by 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. Measurement of the cost of the stock options granted is based on the grant-date fair value of each stock option using the Black-Scholes valuation model. The cost is then amortized over each option’s requisite service period. The expected term of options granted is derived from the period of time the options are expected to be outstanding. The risk free rate is based on the yield of an equivalent maturity U.S. Treasury note. Volatility is calculated using historical price changes on a monthly basis over the option’s expected life. The amount of stock option compensation expense recorded in the quarters ended March 31, 2018 and 2017 was $92,000 and $103,000, respectively. There was an income tax benefit recognized in the consolidated statements of earnings for these amounts of $37,000 and $74,000 for the quarters ended March 31, 2018 and 2017, respectively. The intrinsic value for options exercised during the quarters ended March 31, 2018 and 2017 was $1,530,000 and $495,000, respectively. The intrinsic value of options exercisable during the quarter ended March 31, 2018 and March 31, 2017 was $5,449,000 and $4,927,000, respectively. The amount of total unrecognized compensation expense related to non-vested options at March 31, 2018 was $837,000 and the weighted average period over which it will be amortized is 3.0 years.

C. EARNINGS PER SHARE CALCULATI

C. EARNINGS PER SHARE CALCULATION	3 Months Ended
	Mar. 31, 2018
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 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. The earnings per share data for all periods presented have been adjusted for the stock split and the stock dividend. Stock splits are reflected retroactively back to the earliest period presented. Earnings per share have been computed based on the following: (Dollar amounts in thousands) Three months ended March 31, 2018 2017 Net earnings $ 4,188 $ 3,089 Average number of shares outstanding 7,463,000 7,300,000 Effect of dilutive options 222,000 218,000 Average number of shares outstanding used to calculate diluted earnings per share 7,685,000 7,518,000 Anti dilutive options that were excluded from the calculation of diluted EPS totaled 0 and 115,000 at March 31, 2018 and 2017, respectively.

D. SECURITIES AVAILABLE FOR SAL

D. SECURITIES AVAILABLE FOR SALE	3 Months Ended
	Mar. 31, 2018
D. Securities Available For Sale
SECURITIES AVAILABLE FOR SALE	The amortized cost and carrying values of securities available-for-sale are as follows: (Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value March 31, 2018 U.S. Treasury securities $ 1,991 $ — $ (33 ) $ 1,958 Obligations of U.S. government agencies 42,220 — (714 ) 41,506 Mortgage-backed securities 119,279 165 (3,087 ) 116,357 Asset-backed securities 3,513 — (78 ) 3,435 Obligations of states and political subdivisions 148,614 869 (1,560 ) 147,923 Corporate debt 37,307 190 (412 ) 37,085 $ 352,924 $ 1,224 $ (5,884 ) $ 348,264 December 31, 2017 U.S. Treasury securities $ 1,989 $ — $ (14 ) $ 1,975 Obligations of U.S. government agencies 42,247 10 (434 ) 41,823 Mortgage-backed securities 121,087 421 (1,716 ) 119,792 Asset-backed securities 3,734 — (48 ) 3,686 Obligations of states and political subdivisions 150,724 1,325 (946 ) 151,103 Corporate debt 37,409 199 (130 ) 37,478 $ 357,190 $ 1,955 $ (3,288 ) $ 355,857 An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of March 31, 2018 and December 31, 2017, respectively, is as 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 March 31, 2018 U.S. Treasury securities $ 1,958 $ (33 ) $ — $ — $ 1,958 $ (33 ) Obligations of U.S. government agencies 23,179 (375 ) 17,338 (339 ) 40,517 (714 ) Mortgage-backed securities 67,371 (1,235 ) 36,297 (1,852 ) 103,668 (3,087 ) Obligations of states and political subdivisions 3,435 (78 ) — — 3,435 (78 ) Corporate debt 68,461 (942 ) 15,075 (618 ) 83,536 (1,560 ) Total 23,381 (378 ) 1,965 (34 ) 25,346 (412 ) $ 187,785 $ (3,041 ) $ 70,675 $ (2,843 ) $ 258,460 $ (5,884 ) (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, 2017 U.S. Treasury securities $ 1,975 $ (14 ) $ — $ — $ 1,975 $ (14 ) Obligations of U.S. government agencies 22,364 (195 ) 16,461 (239 ) 38,825 (434 ) Mortgage-backed securities 46,515 (424 ) 38,003 (1,292 ) 84,518 (1,716 ) Asset-backed securities 3,685 (48 ) — — 3,685 (48 ) Obligations of states and political subdivisions 46,919 (460 ) 15,243 (486 ) 62,162 (946 ) Corporate debt 13,255 (112 ) 1,982 (18 ) 15,237 (130 ) Total $ 134,713 $ (1,253 ) $ 71,689 $ (2,035 ) $ 206,402 $ (3,288 ) At March 31, 2018, there were 66 securities in an unrealized loss position for greater than 12 consecutive months. At the same time, there were 186 securities in an unrealized loss position for twelve or less than twelve consecutive months. At December 31, 2017, there were 65 securities in an unrealized loss position for greater than 12 consecutive months, and there were 135 securities in an unrealized loss position for less than 12 consecutive months. Management periodically evaluates each security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. The unrealized losses are due solely to interest rate changes and the Company does not intend to sell nor expects it will be required to sell investment securities identified with impairments prior to the earliest of forecasted recovery or the maturity of the underlying investment security. Management has determined that no investment security was other-than-temporarily impaired at March 31, 2018. The amortized cost and carrying value of available-for-sale debt securities as of March 31, 2018 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. (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 18,885 $ 18,850 Due after one through five years 187,944 186,100 Due after five years through ten years 97,260 96,031 Due after ten years 48,835 47,283 $ 352,924 $ 348,264 For the three months ended March 31, 2018 and March 31, 2017, respectively, gross realized gains amounted to $0 and $28,000, on gross securities sold or called of $0 and $10,781,000, respectively. At March 31, 2018, securities with an amortized cost of $130,725,000 and fair value of $128,213,000 were pledged as collateral for public deposits and for other purposes required by law.

E. LOANS

E. LOANS	3 Months Ended
	Mar. 31, 2018
E. Loans
LOANS	Loans are summarized as follows at March 31, 2018 and December 31, 2017: Total FNB Balance Bancorp March 31, (Dollar amounts in thousands) Originated PNCI PCI 2018 Commercial real estate $ 397,331 $ 56,669 $ — $ 454,000 Real estate construction 36,775 — — 36,775 Real estate multi-family 95,297 10,483 — 105,780 Real estate 1 to 4 family 165,163 10,493 — 175,656 Commercial & industrial 47,903 3,617 — 51,520 Consumer loans 17,993 — — 17,993 Gross loans 760,462 81,262 — 841,724 Net deferred loan fees (489 ) — — (489 ) Allowance for loan losses (10,186 ) — — (10,186 ) Net loans $ 749,787 $ 81,262 $ — $ 831,049 Note: PNCI means Purchased, Not Credit Impaired. PCI means Purchased, Credit Impaired. These designations are assigned to the purchased loans on their date of purchase. Once the loan designation has been made, each loan will retain its designation for the life of the loan. Total FNB Balance Bancorp December 31, (Dollar amounts in thousands) Originated PNCI PCI 2017 Commercial real estate $ 401,157 $ 55,835 $ — $ 456,992 Real estate construction 35,206 — — 35,206 Real estate multi-family 91,642 13,496 — 105,138 Real estate 1 to 4 family 160,425 13,051 — 173,476 Commercial & industrial 52,270 3,457 — 55,727 Consumer loans 14,057 — — 14,057 Gross loans 754,757 85,839 — 840,596 Net deferred loan fees (659 ) — — (659 ) Allowance for loan losses (10,171 ) — — (10,171 ) Net loans $ 743,927 $ 85,839 $ — $ 829,766 Note: PNCI means Purchased, Not Credit Impaired. PCI means Purchased, Credit Impaired. These designations are assigned to the purchased loans on their date of purchase. Once the loan designation has been made, each loan will retain its designation for the life of the loan. Recorded Investment in Loans at March 31, 2018 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction Family Family & industrial Consumer Total Loans: Ending balance $ 454,000 $ 36,775 $ 105,780 $ 175,656 $ 51,520 $ 17,993 $ 841,724 Ending balance: individually evaluated for impairment $ 4,631 $ 791 $ 2,348 $ 2,413 $ 841 $ — $ 11,024 Ending balance: collectively evaluated for impairment $ 449,369 $ 35,984 $ 103,432 $ 173,243 $ 50,679 $ 17,993 $ 830,700 Recorded Investment in Loans at December 31, 2017 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction Family Family & industrial Consumer Total Loans: Ending balance $ 456,992 $ 35,206 $ 105,138 $ 173,476 $ 55,727 $ 14,057 $ 840,596 Ending balance: individually evaluated for impairment $ 6,530 $ 814 $ — $ 2,750 $ 860 $ — $ 10,954 Ending balance: collectively evaluated for impairment $ 450,462 $ 34,392 $ 105,138 $ 170,726 $ 54,867 $ 14,057 $ 829,642 Recorded Investment in Loans at March 31, 2017 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction Family Family & industrial Consumer Total Loans: Ending balance $ 431,295 $ 49,490 $ 112,911 $ 169,373 $ 49,277 $ 6,065 $ 818,411 Ending balance: individually evaluated for impairment $ 10,390 $ 831 $ — $ 4,391 $ 971 $ — $ 16,583 Ending balance: collectively evaluated for impairment $ 420,905 $ 48,659 $ 112,911 $ 164,982 $ 48,306 $ 6,065 $ 801,828 The following tables provide information pertaining to impaired loans originated and PNCI loans as of and for the three months ended March 31, 2018, the year ended December 31, 2017 and the three months ended March 31, 2017, respectively Impaired Loans As of and for the three months ended March 31, 2018 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 3,491 $ 3,499 $ — $ 3,501 $ 42 Real estate construction 791 992 — 797 16 Real estate multi-family 2,348 2,348 — 2,348 — Commercial and industrial 114 114 — 114 2 Total 6,744 6,953 — 6,760 60 With an allowance recorded Commercial real estate $ 1,140 $ 1,140 $ 62 $ 1,142 $ 19 Real estate 1 to 4 family 2,413 2,413 320 2,415 23 Commercial and industrial 727 727 84 740 1 Total 4,280 4,280 466 4,297 43 Total Commercial real estate $ 4,631 $ 4,639 $ 62 $ 4,643 $ 61 Real estate construction 791 992 — 797 16 Real estate multi-family 2,348 2,348 — 2,348 — Real estate 1 to 4 family 2,413 2,413 320 2,415 23 Commercial and industrial 841 841 84 854 3 Grand total $ 11,024 $ 11,233 $ 466 $ 11,057 $ 103 Impaired Loans As of and for the year ended December 31, 2017 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 5,785 $ 5,785 $ — $ 8,317 $ 212 Real estate construction — — — 520 22 Real estate multi-family — — — 764 12 Real estate 1 to 4 family 464 464 — 561 21 Commercial and industrial 115 115 — 117 7 Total 6,364 6,364 — 10,279 274 With an allowance recorded Commercial real estate $ 745 $ 745 $ 15 $ 2,294 $ 72 Real estate construction 814 814 4 556 52 Real estate 1 to 4 family 2,286 2,286 318 1,503 69 Commercial and industrial 745 745 72 841 — Total 4,590 4,590 409 5,194 193 Total Commercial real estate $ 6,530 $ 6,530 $ 15 $ 10,611 $ 284 Real estate construction 814 814 4 1,076 74 Real estate multi-family — — — 764 12 Real estate 1 to 4 family 2,750 2,750 318 2,064 90 Commercial and industrial 860 860 72 958 7 Grand total $ 10,954 $ 10,954 $ 409 $ 15,473 $ 467 Impaired Loans As of and for three months ended March 31, 2017 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,900 $ 10,023 $ — $ 8,923 $ 32 Real estate construction 831 1,022 — 837 9 Real estate 1 to 4 family 1,547 1,547 — 1,551 21 Commercial and industrial 119 119 — 119 2 Total 11,397 12,711 — 11,430 64 With an allowance recorded Commercial real estate $ 1,490 $ 1,490 $ 39 $ 1,498 $ 20 Residential- 1 to 4 family 2,844 2,869 434 2,848 28 Commercial and industrial 852 852 84 879 — Total 5,186 5,211 557 5,225 48 Total Commercial real estate $ 10,390 $ 11,513 $ 39 $ 10,421 $ 52 Real estate construction 831 1,022 — 837 9 Real estate 1 to 4 family 4,391 4,416 434 4,399 49 Commercial and industrial 971 971 84 998 2 Grand total $ 16,583 $ 17,922 $ 557 $ 16,655 $ 112 Interest income on impaired loans of $103,000 and $374,000 was recognized for cash payments received during the quarter ended March 31, 2018 and the year ended December 31, 2017, respectively. Interest income on impaired loans recognized for cash payments received for the three months ended March 31, 2017 was $112,000. The amount of interest on impaired loans not collected for the quarter ended March 31, 2018 was $114,000, and the quarter ended March 31, 2017 was $225,000. The cumulative amount of unpaid interest on impaired loans was $572,000 and $825,000 as of March 31, 2018 and March 31, 2017, respectively. Nonaccrual loans totaled $3,774,000 and $1,940,000 as of March 31, 2018 and December 31, 2017. Impaired loans not on nonaccrual are loans that have been restructured and are performing under modified loan agreements, and where principal and interest is determined to be collectible. Nonaccrual loans are loans where principal and interest have not been determined to be fully collectible. Loans on Nonaccrual Status as of (Dollar amounts in thousands) March 31, December 31, 2018 2017 Commercial real estate $ 565 $ 731 Real estate multi-family 2,348 — Real estate 1 to 4 family 135 464 Commercial & industrial 726 745 Total $ 3,774 $ 1,940 Troubled Debt Restructurings Total troubled debt restructured loans outstanding at (Dollars in thousands) March 31, 2018 December 31, 2017 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 4,066 $ — $ 4,066 $ 3,451 $ 646 $ 4,097 Real estate 1 to 4 family 2,279 — 2,279 2,286 464 2,750 Commercial & industrial 114 693 807 115 746 861 Total $ 6,459 $ 693 $ 7,152 $ 5,852 $ 1,856 $ 7,708 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 – A modification in which the interest rate is changed. Term Modification – A modification in which the maturity date, timing of payments, or frequency of payments is changed. Interest Only Modification – A modification in which the loan is converted to interest only payments for a period of time. Payment Modification – A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. There were no commitments for additional funding of troubled debt restructured loans as of March 31, 2018. There were no payment defaults during the three months ended March 31, 2018 or March 31, 2017 that were related to receivables modified as TDRs in the last twelve months. As of March 31, 2018, there were no loans modified within the previous 12 months and for which there was a payment default during the period. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. As of and For the Three Months Ended March 31, 2018 Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial (Dollar amounts in thousands) Real Estate Construction Family 4 Family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,495 $ 388 $ 1,496 $ 2,008 $ 440 $ 344 $ 10,171 Charge-offs — — — (3 ) — — (3 ) Recoveries 2 — — 12 4 — 18 Provision for (recovery of) loan losses — — — — — — — Ending balance $ 5,497 $ 388 $ 1,496 $ 2,017 $ 444 $ 344 $ 10,186 Ending balance: individually evaluated for impairment $ 62 $ — $ — $ 320 $ 84 $ — $ 466 Ending balance: collectively evaluated for $ 5,435 $ 388 $ 1,496 $ 1,697 $ 360 $ 344 $ 9,720 As of and For the Twelve Months Ended December 31, 2017 Real Real Estate Estate Commercial Real Estate Multi- 1 to 4 Commercial (Dollar amounts in thousands) Real Estate Construction Family Family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,392 $ 617 $ 389 $ 2,082 $ 650 $ 37 $ 10,167 Charge-offs (91 ) — — — (39 ) (8 ) (138 ) Recoveries 8 — — 175 319 — 502 (Recovery of) / provision for loan losses (814 ) (229 ) 1,107 (249 ) (490 ) 315 (360 ) Ending balance $ 5,495 $ 388 $ 1,496 $ 2,008 $ 440 $ 344 $ 10,171 Ending balance: individually evaluated for impairment $ 15 $ 4 $ — $ 318 $ 72 $ — $ 409 Ending balance: collectively evaluated for $ 5,480 $ 384 $ 1,496 $ 1,690 $ 368 $ 344 $ 9,762 As of and For the Three Months Ended March 31, 2017 Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial (Dollar amounts in thousands) Real Estate Construction Family Family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,392 $ 617 $ 389 $ 2,082 $ 650 $ 37 $ 10,167 Charge-offs — — — — (39 ) (1 ) (40 ) Recoveries 2 — — 8 7 — 17 Provision for (recovery of) loan losses 249 10 (143 ) (266 ) 36 114 — Ending balance $ 6,643 $ 627 $ 246 $ 1,824 $ 654 $ 150 $ 10,144 Ending balance: individually evaluated for impairment $ 39 $ — $ — $ 434 $ 84 $ — $ 557 Ending balance: collectively evaluated for $ 6,604 $ 627 $ 246 $ 1,390 $ 570 $ 150 $ 9,587 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. For example, 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 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 when borrowers lose their primary source of income, or file for relief from creditors through bankruptcy proceedings. Age Analysis of Past Due Loans As of March 31, 2018 (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 $ 1,150 $ 611 $ — $ 1,761 $ 395,570 $ 397,331 Real estate construction — — — — 36,775 36,775 Real estate multi family — — 2,348 2,348 92,949 95,297 Real estate-1 to 4 family 1,971 443 135 2,549 162,641 165,163 Commercial & industrial 1,117 — 693 1,810 46,093 47,903 Consumer 102 — — 102 17,891 17,993 Total $ 4,340 $ 1,054 $ 3,176 $ 8,570 $ 751,892 $ 760,462 Purchased Not credit impaired Commercial real estate $ — $ — $ 484 $ 484 $ 56,185 $ 56,669 Real estate multi-family — — — — 10,483 10,483 Real estate-1 to 4 family — 736 — 736 9,757 10,493 Commercial & industrial — — — — 3,617 3,617 Total $ — $ 736 $ 484 $ 1,220 $ 80,042 $ 81,262 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — At March 31, 2018, there were no loans that were 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, 2017 (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 $ 989 $ 597 $ — $ 1,586 $ 399,571 $ 401,157 Real estate construction — — — — 35,206 35,206 Real estate multi family — 2,348 — 2,348 89,294 91,642 Real estate-1 to 4 family 1,603 1,082 464 3,149 157,276 160,425 Commercial & industrial 69 250 745 1,064 51,206 52,270 Consumer 52 — — 52 14,005 14,057 Total $ 2,713 $ 4,277 $ 1,209 $ 8,199 $ 746,558 $ 754,757 Purchased Not credit impaired Commercial real estate $ — $ 85 $ — $ 85 $ 55,750 $ 55,835 Real estate multi-family — — — — 13,496 13,496 Real estate-1 to 4 family — — — — 13,051 13,051 Commercial & industrial — — — — 3,457 3,457 Total $ — $ 85 $ — $ 85 $ 85,754 $ 85,839 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — At December 31, 2017, there were no loans that were 90 days or more past due where interest was still accruing. The over 90 days column includes nonaccrual loans that were over 90 days but does not include loans that are in nonaccrual status for reasons other than past due. Credit Quality Indicators As of March 31, 2018 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 395,216 $ — $ 2,082 $ 33 $ 397,331 Real estate construction 35,984 — 791 — 36,775 Real estate multi-family 92,949 — 2,348 — 95,297 Real estate-1 to 4 family 165,029 — 134 — 165,163 Commercial & industrial 46,844 771 288 — 47,903 Consumer loans 17,993 — — — 17,993 Totals $ 754,015 $ 771 $ 5,643 $ 33 $ 760,462 Purchased Not credit impaired Commercial real estate $ 56,104 $ — $ 565 $ — $ 56,669 Real estate multi-family 10,483 — — — 10,483 Real estate-1 to 4 family 10,493 — — — 10,493 Commercial & industrial 3,617 — — — 3,617 Total $ 80,697 $ — $ 565 $ — $ 81,262 Purchased Credit impaired Commercial real estate $ — Total $ — Credit Quality Indicators As of December 31, 2017 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 397,311 $ — $ 3,846 $ — $ 401,157 Real estate construction 34,392 — 814 — 35,206 Real estate multi-family 91,642 — — — 91,642 Real estate-1 to 4 family 159,881 — 544 — 160,425 Commercial & industrial 51,968 — 302 — 52,270 Consumer loans 14,057 — — — 14,057 Totals $ 749,251 $ — $ 5,506 $ — $ 754,757 Purchased Not credit impaired Commercial real estate $ 53,656 $ 873 $ 1,306 $ — $ 55,835 Real estate multi-family 13,496 — — — 13,496 Real estate-1 to 4 family 13,051 — — — 13,051 Commercial & industrial 3,457 — — — 3,457 Total $ 83,660 $ 873 $ 1,306 $ — $ 85,839 Purchased Credit impaired Commercial real estate $ — Total $ —

F. OTHER REAL ESTATE OWNED

F. OTHER REAL ESTATE OWNED	3 Months Ended
	Mar. 31, 2018
F. Other Real Estate Owned
Other Real Estate Owned	A summary of the activity in the balance of other real estate owned for the time periods noted is as follows: Twelve Three Months Months Three Months Ended Ended Ended (Dollar amounts in thousands) March 31, 2018 December 31, 2017 March 31, 2017 Beginning foreclosed asset balance, net $ 3,300 $ 1,427 $ 1,026 Additions / transfers from loans — 1,817 — Capitalized expenditures 1,121 56 417 Disposition/sales (2,604 ) — — Ending foreclosed asset balance, net $ 1,817 $ 3,300 $ 1,443 Ending number of foreclosed properties 1 2 1 Net gain on sale of foreclosed properties $ 392 $ — $ — Loans to facilitate sale of OREO $ 1,200 $ — $ — At December 31, 2017, there were two properties reported in other real estate owned. The first property was a commercial building located at 416 Browning Way, South San Francisco, California that had a net book balance of $1,483,000 and $1,427,000 as of December 31, 2017 and 2016, respectively. This commercial property has soil and water contamination issues related to the property’s use by previous owners. Remediation efforts to date include, but are not limited to, removal of contaminated soil around the building down to the water table, water detoxification treatments, drilling of water monitoring wells, obtaining air samples inside the building, and engaging in ongoing discussions with the San Francisco Bay Regional Water Quality Control Board (the “Water Board”) with the stated objective of obtaining a final approved remediation plan. The Bank has engaged a soil engineering and consulting company consultant to provide cost estimates related to the final clean-up costs that are expected to be incurred as part of any final remediation plan that would be acceptable to the Water Board. Those costs, along with reimbursable costs incurred by the Water Board, are expected to total approximately $725,000, but could vary depending on the extent of final remediation requirements and the time required to complete them. The Bank developed this cost estimate based on advice from its soil engineering expert and consulting company and over six years of coordinated remediation efforts with the Water Board. During the first quarter of 2018, the Bank sold this property and received $675,000 in proceeds from the $2,604,000 sale and recorded a pretax gain on sale of $392,000. The Bank provided a loan to facilitate this sale at prevailing market rates. The second property is an elderly care facility located in Lafayette, California that was acquired in November 2017 and has a net book balance of $1,817,000. As of March 31, 2018, this is the Bank’s only remaining OREO property.

G. BORROWINGS

G. BORROWINGS	3 Months Ended
	Mar. 31, 2018
G. Borrowings
BORROWINGS	Federal Home Loan Bank advances As of March 31, 2018 As of December 31, 2017 Maturity Interest Amount Maturity Interest Amount (Dollar amounts in thousands) Date Rate Outstanding Date Rate Outstanding FHLB Term Advance 04/02/18 1.69 % $ 20,000 01/02/18 1.35 % $ 15,000 FHLB Term Advance 04/05/18 1.68 % 25,000 01/04/18 1.39 % 10,000 FHLB Term Advance 04/12/18 1.72 % 10,000 01/22/18 1.49 % 10,000 FHLB Term Advance 04/26/18 1.87 % 25,000 01/29/18 1.49 % 20,000 FHLB Term Advance 05/01/18 1.79 % 20,000 01/29/18 1.49 % 20,000 Totals $ 100,000 $ 75,000 At March 31, 2018, the Bank had a maximum borrowing capacity under Federal Home Loan Bank advances of $519,932,000 of which $419,932,000 was available. The Federal Home Loan Bank advances are secured by a blanket collateral agreement pledge of FHLB stock and certain other qualifying collateral, such as commercial and mortgage loans. Interest rates are at the prevailing rate when advances are made. Environmental Remediation Liability The Bank has engaged a soil engineering and consulting company consultant to provide cost estimates related to the final clean-up costs that are expected to be incurred by the Company as part of any final remediation plan that would be acceptable to the Water Board related to the Company’s ownership in the Browning Way, South San Francisco property. Those costs, along with reimbursable costs incurred by the Water Board, are expected to total approximately $725,000, but could vary depending on the extent of final remediation requirements and the time required to complete them. As of March 31, 2018, the environmental remediation liability remained at $725,000. 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.

H. FAIR VALUE MEASUREMENT

H. FAIR VALUE MEASUREMENT	3 Months Ended
	Mar. 31, 2018
H. Fair Value Measurement
FAIR VALUE MEASUREMENT	The following table presents information about the Company’s assets and liabilities measured at fair value as of March 31, 2018 and December 31, 2017, and indicates 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 and 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 three months of 2018 and 2017 there were no transfers of assets or liabilities between hierarchy levels. In accordance with the prospective adoption of ASU No. 2016-01, the fair value of loan as of March 31, 2018 was measured using an exit price notion. The fair value of loans as of December 31, 2017 was measured using an entry price notion. The following tables present the recorded amounts of assets measured at fair value on a recurring basis: Fair Value Measurements (Dollar amounts in thousands) at March 31, 2018, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 3/31/2018 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 1,958 $ 1,958 $ — $ — Obligations of U.S. Government agencies 41,506 — 41,506 — Mortgage-backed securities 116,357 — 116,357 — Asset-backed securities 3,435 — 3,435 — Obligations of states and political subdivisions 147,923 — 147,923 — Corprate Debt 37,085 — 37,085 — Total assets measured at fair value $ 348,264 $ 1,958 $ 346,306 $ — Fair Value Measurements (Dollar amounts in thousands) at December 31, 2017, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2017 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 1,975 $ 1,975 $ — $ — Obligations of U.S. Government agencies 41,823 — 41,823 — Mortgage-backed securities 119,792 — 119,792 — Asset-backed securities 3,686 — 3,686 — Obligations of states and political subdivisions 151,103 — 151,103 — Corporate debt 37,478 — 37,478 — Total assets measured at fair value $ 355,857 $ 1,975 $ 353,882 $ — 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. 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 March 31, 2018, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 3/31/2018 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate loans $ 4,631 $ — $ — $ 4,631 Real estate construction 791 — — 791 Real estate multi-family 2,348 — — 2,348 Real estate 1 to 4 family 2,413 — — 2,413 Commercial and industrial loans 841 — — 841 Other real estate owned 1,817 — — 1,817 Total impaired assets measured at fair value $ 12,841 $ — $ — $ 12,841 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2017, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2017 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate loans $ 745 $ — $ — $ 745 Real estate construction 814 — — 814 Real estate 1 to 4 family 2,286 — — 2,286 Commercial and industrial loans 745 — — 745 Other real estate owned 3,300 — — 3,300 Total impaired assets measured at fair value $ 7,890 $ — $ — $ 7,890 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 a non-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 value less costs to sell. An appraisal (a Level 3 valuation) 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 charge is recorded along with a corresponding reduction in the book carrying value of the property. Historical costs of other real estate owned were below fair value estimates at March 31, 2018 and December 31, 2017. The Bank 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. 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 March 31, 2018: Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 5,733 $ 5,733 $ 5,733 $ — $ — Interest-bearing time deposits with financial institutions 15,630 15,630 — 15,630 — Securities available for sale 348,264 348,264 1,958 346,306 — Loans 831,049 822,398 — — 822,398 Other equity securities 7,567 7,567 — — 7,567 Accrued interest receivable 4,914 4,914 4,914 — — Financial liabilities: Deposits 1,018,453 859,015 730,523 128,492 — Federal Home Loan Bank advances 100,000 99,998 — 99,998 — Note payable 3,600 — — — — Accrued interest payable 641 641 641 — — Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,935 — — — The carrying amount of loans include $3,774,000 of nonaccrual loans (loans that are not accruing interest) as of March 31, 2018. 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, 2017: December 31, 2017 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 5,585 $ 5,585 $ 5,585 $ — $ — Interest-bearing deposits with financial institutions 12,898 12,898 — 12,898 — Securities available for sale 355,857 355,857 1,975 350,196 — Loans 829,766 811,382 — — 811,382 Other equity securities 7,567 7,567 — — 7,567 Accrued interest receivable 5,317 5,317 5,317 — — Financial liabilities: Deposits 1,050,295 1,050,858 912,211 138,647 — Federal Home Loan Bank advances 75,000 75,000 — 75,000 — Note payable 3,750 3,750 — 3,750 — Accrued interest payable 510 510 510 — — Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,884 — — 1,884 The carrying amounts of loans include $1,940,000 of nonaccrual loans (loans that are not accruing interest) as of December 31, 2017. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received.

I. REVENUE FROM CONTRACTS WITH

I. REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2018
I. Revenue From Contracts With Customers
REVENUE FROM CONTRACTS WITH CUSTOMERS	As noted in Note A, the Company adopted the provisions of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue Recognition In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Disaggregation of Revenue The following table summarizes the Company’s revenues, which includes net interest income on financial instruments and noninterest income, disaggregated by type of service and business segments for the three months ended March 31, 2018: (dollars in thousands) Service charges on deposit accounts $ 323 Other service charges and fees 206 Not in scope of Topic 606 (1) 113 Total noninterest income $ 842 (1) Most of the Company’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. For the three months ended March 31, 2018, substantially all of the Company’s revenues under the scope of Topic 606 were related to performance obligations satisfied at a point in time. The following is a discussion of revenues within the scope of Topic 606. Service Charges on Deposit Accounts Service charges on deposit accounts relate to fees generated from a variety of deposit products and services rendered to customers. Charges include, but are not limited to, overdraft fees, non-sufficient fund fees, dormant fees and monthly service charges. Such fees are recognized concurrent with the event on a daily basis or on a monthly basis depending upon the customer’s cycle date. Credit and Debit Card Fees Credit and debit card fees primarily represent revenues earned from interchange fees, ATM fees and merchant processing fees. Interchange and network revenues are earned on credit and debit card transactions conducted with payment networks. ATM fees are primarily earned as a result of surcharges assessed to non-Bank customers who use a Bank ATM. Merchant processing fees are primarily earned on processing merchant credit card transactions. Such fees are generally recognized concurrently with the delivery of services on a daily basis. Other Fees Other fees primarily include revenues generated from wire transfers, lockboxes and bank issuance of checks. Such fees are recognized concurrent with the event on a daily basis. Contract Balances A contract liability is an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer. As of March 31, 2018 and December 31, 2017, the Company had no contract liabilities outstanding. A contract asset is the right to consideration for transferred goods or services when the amount is conditioned on something other than the passage of time. As of March 31, 2018 and December 31, 2017, there were no receivables from contracts with customers or contract assets recorded on the Company’s consolidated balance sheets. Other The Company did not have any significant performance obligations as of March 31, 2018. The Company also did not have any material contract acquisition costs or use any significant judgments or estimates in recognizing revenue for financial reporting purposes.

C. EARNINGS PER SHARE CALCULA17

C. EARNINGS PER SHARE CALCULATION (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings per share data:
Earnings per common share (EPS) computed	(Dollar amounts in thousands) Three months ended March 31, 2018 2017 Net earnings $ 4,188 $ 3,089 Average number of shares outstanding 7,463,000 7,300,000 Effect of dilutive options 222,000 218,000 Average number of shares outstanding used to calculate diluted earnings per share 7,685,000 7,518,000

D. SECURITIES AVAILABLE FOR S18

D. SECURITIES AVAILABLE FOR SALE (Tables)	3 Months Ended
	Mar. 31, 2018
D. 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 March 31, 2018 U.S. Treasury securities $ 1,991 $ — $ (33 ) $ 1,958 Obligations of U.S. government agencies 42,220 — (714 ) 41,506 Mortgage-backed securities 119,279 165 (3,087 ) 116,357 Asset-backed securities 3,513 — (78 ) 3,435 Obligations of states and political subdivisions 148,614 869 (1,560 ) 147,923 Corporate debt 37,307 190 (412 ) 37,085 $ 352,924 $ 1,224 $ (5,884 ) $ 348,264 December 31, 2017 U.S. Treasury securities $ 1,989 $ — $ (14 ) $ 1,975 Obligations of U.S. government agencies 42,247 10 (434 ) 41,823 Mortgage-backed securities 121,087 421 (1,716 ) 119,792 Asset-backed securities 3,734 — (48 ) 3,686 Obligations of states and political subdivisions 150,724 1,325 (946 ) 151,103 Corporate debt 37,409 199 (130 ) 37,478 $ 357,190 $ 1,955 $ (3,288 ) $ 355,857
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 March 31, 2018 U.S. Treasury securities $ 1,958 $ (33 ) $ — $ — $ 1,958 $ (33 ) Obligations of U.S. government agencies 23,179 (375 ) 17,338 (339 ) 40,517 (714 ) Mortgage-backed securities 67,371 (1,235 ) 36,297 (1,852 ) 103,668 (3,087 ) Obligations of states and political subdivisions 3,435 (78 ) — — 3,435 (78 ) Corporate debt 68,461 (942 ) 15,075 (618 ) 83,536 (1,560 ) Total 23,381 (378 ) 1,965 (34 ) 25,346 (412 ) $ 187,785 $ (3,041 ) $ 70,675 $ (2,843 ) $ 258,460 $ (5,884 ) (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, 2017 U.S. Treasury securities $ 1,975 $ (14 ) $ — $ — $ 1,975 $ (14 ) Obligations of U.S. government agencies 22,364 (195 ) 16,461 (239 ) 38,825 (434 ) Mortgage-backed securities 46,515 (424 ) 38,003 (1,292 ) 84,518 (1,716 ) Asset-backed securities 3,685 (48 ) — — 3,685 (48 ) Obligations of states and political subdivisions 46,919 (460 ) 15,243 (486 ) 62,162 (946 ) Corporate debt 13,255 (112 ) 1,982 (18 ) 15,237 (130 ) Total $ 134,713 $ (1,253 ) $ 71,689 $ (2,035 ) $ 206,402 $ (3,288 )
Schedule of amortized cost and carrying value of available-for-sale debt securities by contractual maturity	(Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 18,885 $ 18,850 Due after one through five years 187,944 186,100 Due after five years through ten years 97,260 96,031 Due after ten years 48,835 47,283 $ 352,924 $ 348,264

E. LOANS (Tables)

E. LOANS (Tables)	3 Months Ended
	Mar. 31, 2018
E. Loans Tables
Schedule Of Loans Outstanding	Total FNB Balance Bancorp March 31, (Dollar amounts in thousands) Originated PNCI PCI 2018 Commercial real estate $ 397,331 $ 56,669 $ — $ 454,000 Real estate construction 36,775 — — 36,775 Real estate multi-family 95,297 10,483 — 105,780 Real estate 1 to 4 family 165,163 10,493 — 175,656 Commercial & industrial 47,903 3,617 — 51,520 Consumer loans 17,993 — — 17,993 Gross loans 760,462 81,262 — 841,724 Net deferred loan fees (489 ) — — (489 ) Allowance for loan losses (10,186 ) — — (10,186 ) Net loans $ 749,787 $ 81,262 $ — $ 831,049 Total FNB Balance Bancorp December 31, (Dollar amounts in thousands) Originated PNCI PCI 2017 Commercial real estate $ 401,157 $ 55,835 $ — $ 456,992 Real estate construction 35,206 — — 35,206 Real estate multi-family 91,642 13,496 — 105,138 Real estate 1 to 4 family 160,425 13,051 — 173,476 Commercial & industrial 52,270 3,457 — 55,727 Consumer loans 14,057 — — 14,057 Gross loans 754,757 85,839 — 840,596 Net deferred loan fees (659 ) — — (659 ) Allowance for loan losses (10,171 ) — — (10,171 ) Net loans $ 743,927 $ 85,839 $ — $ 829,766
Schedule of Recorded Investment in Loans	Recorded Investment in Loans at March 31, 2018 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction Family Family & industrial Consumer Total Loans: Ending balance $ 454,000 $ 36,775 $ 105,780 $ 175,656 $ 51,520 $ 17,993 $ 841,724 Ending balance: individually evaluated for impairment $ 4,631 $ 791 $ 2,348 $ 2,413 $ 841 $ — $ 11,024 Ending balance: collectively evaluated for impairment $ 449,369 $ 35,984 $ 103,432 $ 173,243 $ 50,679 $ 17,993 $ 830,700 Recorded Investment in Loans at December 31, 2017 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction Family Family & industrial Consumer Total Loans: Ending balance $ 456,992 $ 35,206 $ 105,138 $ 173,476 $ 55,727 $ 14,057 $ 840,596 Ending balance: individually evaluated for impairment $ 6,530 $ 814 $ — $ 2,750 $ 860 $ — $ 10,954 Ending balance: collectively evaluated for impairment $ 450,462 $ 34,392 $ 105,138 $ 170,726 $ 54,867 $ 14,057 $ 829,642 Recorded Investment in Loans at March 31, 2017 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction Family Family & industrial Consumer Total Loans: Ending balance $ 431,295 $ 49,490 $ 112,911 $ 169,373 $ 49,277 $ 6,065 $ 818,411 Ending balance: individually evaluated for impairment $ 10,390 $ 831 $ — $ 4,391 $ 971 $ — $ 16,583 Ending balance: collectively evaluated for impairment $ 420,905 $ 48,659 $ 112,911 $ 164,982 $ 48,306 $ 6,065 $ 801,828
Schedule of Impaired Loans Allowance	Impaired Loans As of and for the three months ended March 31, 2018 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 3,491 $ 3,499 $ — $ 3,501 $ 42 Real estate construction 791 992 — 797 16 Real estate multi-family 2,348 2,348 — 2,348 — Commercial and industrial 114 114 — 114 2 Total 6,744 6,953 — 6,760 60 With an allowance recorded Commercial real estate $ 1,140 $ 1,140 $ 62 $ 1,142 $ 19 Real estate 1 to 4 family 2,413 2,413 320 2,415 23 Commercial and industrial 727 727 84 740 1 Total 4,280 4,280 466 4,297 43 Total Commercial real estate $ 4,631 $ 4,639 $ 62 $ 4,643 $ 61 Real estate construction 791 992 — 797 16 Real estate multi-family 2,348 2,348 — 2,348 — Real estate 1 to 4 family 2,413 2,413 320 2,415 23 Commercial and industrial 841 841 84 854 3 Grand total $ 11,024 $ 11,233 $ 466 $ 11,057 $ 103 Impaired Loans As of and for the year ended December 31, 2017 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 5,785 $ 5,785 $ — $ 8,317 $ 212 Real estate construction — — — 520 22 Real estate multi-family — — — 764 12 Real estate 1 to 4 family 464 464 — 561 21 Commercial and industrial 115 115 — 117 7 Total 6,364 6,364 — 10,279 274 With an allowance recorded Commercial real estate $ 745 $ 745 $ 15 $ 2,294 $ 72 Real estate construction 814 814 4 556 52 Real estate 1 to 4 family 2,286 2,286 318 1,503 69 Commercial and industrial 745 745 72 841 — Total 4,590 4,590 409 5,194 193 Total Commercial real estate $ 6,530 $ 6,530 $ 15 $ 10,611 $ 284 Real estate construction 814 814 4 1,076 74 Real estate multi-family — — — 764 12 Real estate 1 to 4 family 2,750 2,750 318 2,064 90 Commercial and industrial 860 860 72 958 7 Grand total $ 10,954 $ 10,954 $ 409 $ 15,473 $ 467 Impaired Loans As of and for three months ended March 31, 2017 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,900 $ 10,023 $ — $ 8,923 $ 32 Real estate construction 831 1,022 — 837 9 Real estate 1 to 4 family 1,547 1,547 — 1,551 21 Commercial and industrial 119 119 — 119 2 Total 11,397 12,711 — 11,430 64 With an allowance recorded Commercial real estate $ 1,490 $ 1,490 $ 39 $ 1,498 $ 20 Residential- 1 to 4 family 2,844 2,869 434 2,848 28 Commercial and industrial 852 852 84 879 — Total 5,186 5,211 557 5,225 48 Total Commercial real estate $ 10,390 $ 11,513 $ 39 $ 10,421 $ 52 Real estate construction 831 1,022 — 837 9 Real estate 1 to 4 family 4,391 4,416 434 4,399 49 Commercial and industrial 971 971 84 998 2 Grand total $ 16,583 $ 17,922 $ 557 $ 16,655 $ 112
Schedule of Loans On Nonaccrual Status	Loans on Nonaccrual Status as of (Dollar amounts in thousands) March 31, December 31, 2018 2017 Commercial real estate $ 565 $ 731 Real estate multi-family 2,348 — Real estate 1 to 4 family 135 464 Commercial & industrial 726 745 Total $ 3,774 $ 1,940
Troubled Debt Restructurings	Total troubled debt restructured loans outstanding at (Dollars in thousands) March 31, 2018 December 31, 2017 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 4,066 $ — $ 4,066 $ 3,451 $ 646 $ 4,097 Real estate 1 to 4 family 2,279 — 2,279 2,286 464 2,750 Commercial & industrial 114 693 807 115 746 861 Total $ 6,459 $ 693 $ 7,152 $ 5,852 $ 1,856 $ 7,708
Schedule of Allowance for Credit Losses	As of and For the Three Months Ended March 31, 2018 Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial (Dollar amounts in thousands) Real Estate Construction Family 4 Family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,495 $ 388 $ 1,496 $ 2,008 $ 440 $ 344 $ 10,171 Charge-offs — — — (3 ) — — (3 ) Recoveries 2 — — 12 4 — 18 Provision for (recovery of) loan losses — — — — — — — Ending balance $ 5,497 $ 388 $ 1,496 $ 2,017 $ 444 $ 344 $ 10,186 Ending balance: individually evaluated for impairment $ 62 $ — $ — $ 320 $ 84 $ — $ 466 Ending balance: collectively evaluated for $ 5,435 $ 388 $ 1,496 $ 1,697 $ 360 $ 344 $ 9,720 As of and For the Twelve Months Ended December 31, 2017 Real Real Estate Estate Commercial Real Estate Multi- 1 to 4 Commercial (Dollar amounts in thousands) Real Estate Construction Family Family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,392 $ 617 $ 389 $ 2,082 $ 650 $ 37 $ 10,167 Charge-offs (91 ) — — — (39 ) (8 ) (138 ) Recoveries 8 — — 175 319 — 502 (Recovery of) / provision for loan losses (814 ) (229 ) 1,107 (249 ) (490 ) 315 (360 ) Ending balance $ 5,495 $ 388 $ 1,496 $ 2,008 $ 440 $ 344 $ 10,171 Ending balance: individually evaluated for impairment $ 15 $ 4 $ — $ 318 $ 72 $ — $ 409 Ending balance: collectively evaluated for $ 5,480 $ 384 $ 1,496 $ 1,690 $ 368 $ 344 $ 9,762 As of and For the Three Months Ended March 31, 2017 Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial (Dollar amounts in thousands) Real Estate Construction Family Family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,392 $ 617 $ 389 $ 2,082 $ 650 $ 37 $ 10,167 Charge-offs — — — — (39 ) (1 ) (40 ) Recoveries 2 — — 8 7 — 17 Provision for (recovery of) loan losses 249 10 (143 ) (266 ) 36 114 — Ending balance $ 6,643 $ 627 $ 246 $ 1,824 $ 654 $ 150 $ 10,144 Ending balance: individually evaluated for impairment $ 39 $ — $ — $ 434 $ 84 $ — $ 557 Ending balance: collectively evaluated for $ 6,604 $ 627 $ 246 $ 1,390 $ 570 $ 150 $ 9,587
Schedule Age Analysis Of Past Due Loans	Age Analysis of Past Due Loans As of March 31, 2018 (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 $ 1,150 $ 611 $ — $ 1,761 $ 395,570 $ 397,331 Real estate construction — — — — 36,775 36,775 Real estate multi family — — 2,348 2,348 92,949 95,297 Real estate-1 to 4 family 1,971 443 135 2,549 162,641 165,163 Commercial & industrial 1,117 — 693 1,810 46,093 47,903 Consumer 102 — — 102 17,891 17,993 Total $ 4,340 $ 1,054 $ 3,176 $ 8,570 $ 751,892 $ 760,462 Purchased Not credit impaired Commercial real estate $ — $ — $ 484 $ 484 $ 56,185 $ 56,669 Real estate multi-family — — — — 10,483 10,483 Real estate-1 to 4 family — 736 — 736 9,757 10,493 Commercial & industrial — — — — 3,617 3,617 Total $ — $ 736 $ 484 $ 1,220 $ 80,042 $ 81,262 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ — Age Analysis of Past Due Loans As of December 31, 2017 (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 $ 989 $ 597 $ — $ 1,586 $ 399,571 $ 401,157 Real estate construction — — — — 35,206 35,206 Real estate multi family — 2,348 — 2,348 89,294 91,642 Real estate-1 to 4 family 1,603 1,082 464 3,149 157,276 160,425 Commercial & industrial 69 250 745 1,064 51,206 52,270 Consumer 52 — — 52 14,005 14,057 Total $ 2,713 $ 4,277 $ 1,209 $ 8,199 $ 746,558 $ 754,757 Purchased Not credit impaired Commercial real estate $ — $ 85 $ — $ 85 $ 55,750 $ 55,835 Real estate multi-family — — — — 13,496 13,496 Real estate-1 to 4 family — — — — 13,051 13,051 Commercial & industrial — — — — 3,457 3,457 Total $ — $ 85 $ — $ 85 $ 85,754 $ 85,839 Purchased Credit impaired Commercial real estate $ — $ — $ — $ — $ — $ — Total $ — $ — $ — $ — $ — $ —
Schedule Credit Quality Indicators	Credit Quality Indicators As of March 31, 2018 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 395,216 $ — $ 2,082 $ 33 $ 397,331 Real estate construction 35,984 — 791 — 36,775 Real estate multi-family 92,949 — 2,348 — 95,297 Real estate-1 to 4 family 165,029 — 134 — 165,163 Commercial & industrial 46,844 771 288 — 47,903 Consumer loans 17,993 — — — 17,993 Totals $ 754,015 $ 771 $ 5,643 $ 33 $ 760,462 Purchased Not credit impaired Commercial real estate $ 56,104 $ — $ 565 $ — $ 56,669 Real estate multi-family 10,483 — — — 10,483 Real estate-1 to 4 family 10,493 — — — 10,493 Commercial & industrial 3,617 — — — 3,617 Total $ 80,697 $ — $ 565 $ — $ 81,262 Purchased Credit impaired Commercial real estate $ — Total $ — Credit Quality Indicators As of December 31, 2017 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 397,311 $ — $ 3,846 $ — $ 401,157 Real estate construction 34,392 — 814 — 35,206 Real estate multi-family 91,642 — — — 91,642 Real estate-1 to 4 family 159,881 — 544 — 160,425 Commercial & industrial 51,968 — 302 — 52,270 Consumer loans 14,057 — — — 14,057 Totals $ 749,251 $ — $ 5,506 $ — $ 754,757 Purchased Not credit impaired Commercial real estate $ 53,656 $ 873 $ 1,306 $ — $ 55,835 Real estate multi-family 13,496 — — — 13,496 Real estate-1 to 4 family 13,051 — — — 13,051 Commercial & industrial 3,457 — — — 3,457 Total $ 83,660 $ 873 $ 1,306 $ — $ 85,839 Purchased Credit impaired Commercial real estate $ — Total $ —

F. OTHER REAL ESTATE OWNED (Tab

F. OTHER REAL ESTATE OWNED (Tables)	3 Months Ended
	Mar. 31, 2018
F. Other Real Estate Owned Tables
Schedule of activity of foreclosed assets	Twelve Three Months Months Three Months Ended Ended Ended (Dollar amounts in thousands) March 31, 2018 December 31, 2017 March 31, 2017 Beginning foreclosed asset balance, net $ 3,300 $ 1,427 $ 1,026 Additions / transfers from loans — 1,817 — Capitalized expenditures 1,121 56 417 Disposition/sales (2,604 ) — — Ending foreclosed asset balance, net $ 1,817 $ 3,300 $ 1,443 Ending number of foreclosed properties 1 2 1 Net gain on sale of foreclosed properties $ 392 $ — $ — Loans to facilitate sale of OREO $ 1,200 $ — $ —

G. BORROWINGS (Tables)

G. BORROWINGS (Tables)	3 Months Ended
	Mar. 31, 2018
G. Borrowings Tables
FHLB outstanding	As of March 31, 2018 As of December 31, 2017 Maturity Interest Amount Maturity Interest Amount (Dollar amounts in thousands) Date Rate Outstanding Date Rate Outstanding FHLB Term Advance 04/02/18 1.69 % $ 20,000 01/02/18 1.35 % $ 15,000 FHLB Term Advance 04/05/18 1.68 % 25,000 01/04/18 1.39 % 10,000 FHLB Term Advance 04/12/18 1.72 % 10,000 01/22/18 1.49 % 10,000 FHLB Term Advance 04/26/18 1.87 % 25,000 01/29/18 1.49 % 20,000 FHLB Term Advance 05/01/18 1.79 % 20,000 01/29/18 1.49 % 20,000 Totals $ 100,000 $ 75,000

H. FAIR VALUE MEASUREMENT (Tabl

H. FAIR VALUE MEASUREMENT (Tables)	3 Months Ended
	Mar. 31, 2018
H. Fair Value Measurement Tables
Schedule of assets measured at fair value on a recurring basis	Fair Value Measurements (Dollar amounts in thousands) at March 31, 2018, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 3/31/2018 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 1,958 $ 1,958 $ — $ — Obligations of U.S. Government agencies 41,506 — 41,506 — Mortgage-backed securities 116,357 — 116,357 — Asset-backed securities 3,435 — 3,435 — Obligations of states and political subdivisions 147,923 — 147,923 — Corprate Debt 37,085 — 37,085 — Total assets measured at fair value $ 348,264 $ 1,958 $ 346,306 $ — Fair Value Measurements (Dollar amounts in thousands) at December 31, 2017, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2017 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 1,975 $ 1,975 $ — $ — Obligations of U.S. Government agencies 41,823 — 41,823 — Mortgage-backed securities 119,792 — 119,792 — Asset-backed securities 3,686 — 3,686 — Obligations of states and political subdivisions 151,103 — 151,103 — Corporate debt 37,478 — 37,478 — Total assets measured at fair value $ 355,857 $ 1,975 $ 353,882 $ —
Schedule of assets measured at fair value on a non-recurring basis	Fair Value Measurements (Dollar amounts in thousands) at March 31, 2018, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 3/31/2018 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate loans $ 4,631 $ — $ — $ 4,631 Real estate construction 791 — — 791 Real estate multi-family 2,348 — — 2,348 Real estate 1 to 4 family 2,413 — — 2,413 Commercial and industrial loans 841 — — 841 Other real estate owned 1,817 — — 1,817 Total impaired assets measured at fair value $ 12,841 $ — $ — $ 12,841 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2017, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2017 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate loans $ 745 $ — $ — $ 745 Real estate construction 814 — — 814 Real estate 1 to 4 family 2,286 — — 2,286 Commercial and industrial loans 745 — — 745 Other real estate owned 3,300 — — 3,300 Total impaired assets measured at fair value $ 7,890 $ — $ — $ 7,890
Schedule of estimated fair value of financial instruments	Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 5,733 $ 5,733 $ 5,733 $ — $ — Interest-bearing time deposits with financial institutions 15,630 15,630 — 15,630 — Securities available for sale 348,264 348,264 1,958 346,306 — Loans 831,049 822,398 — — 822,398 Other equity securities 7,567 7,567 — — 7,567 Accrued interest receivable 4,914 4,914 4,914 — — Financial liabilities: Deposits 1,018,453 859,015 730,523 128,492 — Federal Home Loan Bank advances 100,000 99,998 — 99,998 — Note payable 3,600 — — — — Accrued interest payable 641 641 641 — — Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,935 — — — December 31, 2017 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 5,585 $ 5,585 $ 5,585 $ — $ — Interest-bearing deposits with financial institutions 12,898 12,898 — 12,898 — Securities available for sale 355,857 355,857 1,975 350,196 — Loans 829,766 811,382 — — 811,382 Other equity securities 7,567 7,567 — — 7,567 Accrued interest receivable 5,317 5,317 5,317 — — Financial liabilities: Deposits 1,050,295 1,050,858 912,211 138,647 — Federal Home Loan Bank advances 75,000 75,000 — 75,000 — Note payable 3,750 3,750 — 3,750 — Accrued interest payable 510 510 510 — — Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit — 1,884 — — 1,884

I. REVENUE FROM CONTRACTS WIT23

I. REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2018
I. Revenue From Contracts With Customers Tables
Disaggregation of revenue	(dollars in thousands) Service charges on deposit accounts $ 323 Other service charges and fees 206 Not in scope of Topic 606 (1) 113 Total noninterest income $ 842 (1) Most of the Company’s revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers.

B. STOCK OPTION PLANS (Details

B. STOCK OPTION PLANS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation [Abstract]
Compensation expense for options	$ 92	$ 103
Intrinsic value options exercised	1,530	495
Intrinsic value options exercisable	5,449	$ 4,927
Unrecognized compensation expense nonvested options	$ 837
Non-vested options weighted average period	3 years

C. EARNINGS PER SHARE CALCULA25

C. EARNINGS PER SHARE CALCULATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings per share data:
Net earnings	$ 4,188	$ 3,089
Average number of shares outstanding	7,463	7,300
Effect of dilutive options	$ 222	$ 218
Average number of shares outstanding used to calculate diluted earnings per share	7,685	7,518
Anti-dilutive options not included	0	115

D. SECURITIES AVAILABLE FOR S26

D. SECURITIES AVAILABLE FOR SALE (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Available for sale securities, Amortized Cost	$ 352,924	$ 357,190
Available for sale securities, Unrealized Gains	1,224	1,955
Available for sale securities, Unrealized Losses	(5,884)	(3,288)
Available for sale securities, Fair Value	348,264	355,857
U.S. Treasury securities
Available for sale securities, Amortized Cost	1,991	1,989
Available for sale securities, Unrealized Gains	0	0
Available for sale securities, Unrealized Losses	(33)	(14)
Available for sale securities, Fair Value	1,958	1,975
Obligations of U.S. government agencies
Available for sale securities, Amortized Cost	42,220	42,247
Available for sale securities, Unrealized Gains	0	10
Available for sale securities, Unrealized Losses	(714)	(434)
Available for sale securities, Fair Value	41,506	41,823
Mortgage-backed securities
Available for sale securities, Amortized Cost	119,279	121,087
Available for sale securities, Unrealized Gains	165	421
Available for sale securities, Unrealized Losses	(3,087)	(1,716)
Available for sale securities, Fair Value	116,357	119,792
Asset-backed securities
Available for sale securities, Amortized Cost	3,513	3,734
Available for sale securities, Unrealized Gains	0	0
Available for sale securities, Unrealized Losses	(78)	(48)
Available for sale securities, Fair Value	3,435	3,686
Obligations of states and political subdivisions
Available for sale securities, Amortized Cost	148,614	150,724
Available for sale securities, Unrealized Gains	869	1,325
Available for sale securities, Unrealized Losses	(1,560)	(946)
Available for sale securities, Fair Value	147,923	151,103
Corporate debt
Available for sale securities, Amortized Cost	37,307	37,409
Available for sale securities, Unrealized Gains	190	199
Available for sale securities, Unrealized Losses	(412)	(130)
Available for sale securities, Fair Value	$ 37,085	$ 37,478

D. SECURITIES AVAILABLE FOR S27

D. SECURITIES AVAILABLE FOR SALE (Details 1) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Less than 12 months, Total Fair Value	$ 187,785	$ 134,713
Less than 12 months, Unrealized Loss	(3,041)	(1,253)
12 months or more, Total Fair Value	70,675	71,689
12 months or more, Unrealized Loss	(2,843)	(2,032)
Total Fair Value	258,460	206,402
Total Unrealized Loss	(5,884)	(3,285)
U.S. Treasury securities
Less than 12 months, Total Fair Value	1,958	1,975
Less than 12 months, Unrealized Loss	(33)	(14)
12 months or more, Total Fair Value	0	0
12 months or more, Unrealized Loss	0	0
Total Fair Value	1,958	1,975
Total Unrealized Loss	(33)	(14)
Obligations of U.S. government agencies
Less than 12 months, Total Fair Value	23,179	22,364
Less than 12 months, Unrealized Loss	(375)	(195)
12 months or more, Total Fair Value	17,338	16,461
12 months or more, Unrealized Loss	(339)	(236)
Total Fair Value	40,517	38,825
Total Unrealized Loss	(714)	(431)
Mortgage-backed securities
Less than 12 months, Total Fair Value	67,371	46,515
Less than 12 months, Unrealized Loss	(1,235)	(424)
12 months or more, Total Fair Value	36,297	38,003
12 months or more, Unrealized Loss	(1,852)	(1,292)
Total Fair Value	103,668	84,518
Total Unrealized Loss	(3,087)	(1,716)
Asset-backed securities
Less than 12 months, Total Fair Value	3,435	3,685
Less than 12 months, Unrealized Loss	(78)	(48)
12 months or more, Total Fair Value	0	0
12 months or more, Unrealized Loss	0	0
Total Fair Value	3,435	3,685
Total Unrealized Loss	(78)	(48)
Obligations of states and political subdivisions
Less than 12 months, Total Fair Value	68,461	46,919
Less than 12 months, Unrealized Loss	(942)	(460)
12 months or more, Total Fair Value	15,075	15,243
12 months or more, Unrealized Loss	(618)	(486)
Total Fair Value	83,536	62,162
Total Unrealized Loss	(1,560)	(946)
Corporate debt
Less than 12 months, Total Fair Value	23,381	13,255
Less than 12 months, Unrealized Loss	(378)	(112)
12 months or more, Total Fair Value	1,965	1,982
12 months or more, Unrealized Loss	(34)	(18)
Total Fair Value	25,346	15,237
Total Unrealized Loss	$ (412)	$ (130)

D. SECURITIES AVAILABLE FOR S28

D. SECURITIES AVAILABLE FOR SALE (Details 2) $ in Thousands	Mar. 31, 2018USD ($)
D. Securities Available For Sale Details 2
Due in one year or less, amortized cost	$ 18,885
Due after one through five years, amortized cost	187,944
Due after five through ten years, amortized cost	97,260
Due after ten years, amortized cost	48,835
Equity securities, amortized cost	352,924
Due in one year or less, fair value	18,850
Due after one through five years, fair value	186,100
Due after five through ten years, fair value	96,031
Due after ten years, fair value	47,283
Equity securities, fair value	$ 348,264

D. SECURITIES AVAILABLE FOR S29

D. SECURITIES AVAILABLE FOR SALE (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
D. Securities Available For Sale Details Narrative
Gross realized gains	$ 0	$ 28
Gross securities sold or called	0	$ 10,781
Amortized cost	130,725
Fair value of pledged as collateral for public deposits	$ 128,213

E. LOANS (Details)

E. LOANS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Gross loans	$ 841,724	$ 840,596
Net deferred loan fees	(489)	(659)
Allowance for loan losses	(10,186)	(10,171)
Net loans	831,049	829,766
Commercial real estate
Gross loans	454,000	456,992
Real estate construction
Gross loans	36,775	35,206
Real Estate Multi family
Gross loans	105,780	105,138
Real Estate 1 to 4 family
Gross loans	175,656	173,476
Commercial and industrial
Gross loans	51,520	55,727
Consumer
Gross loans	17,993	14,057
FNB Bancorp Originated
Gross loans	760,462	754,757
Net deferred loan fees	(489)	(659)
Allowance for loan losses	(10,186)	(10,171)
Net loans	749,787	743,927
FNB Bancorp Originated | Commercial real estate
Gross loans	397,331	401,157
FNB Bancorp Originated | Real estate construction
Gross loans	36,775	35,206
FNB Bancorp Originated | Real Estate Multi family
Gross loans	95,297	91,642
FNB Bancorp Originated | Real Estate 1 to 4 family
Gross loans	165,163	160,425
FNB Bancorp Originated | Commercial and industrial
Gross loans	47,903	52,270
FNB Bancorp Originated | Consumer
Gross loans	17,993	14,057
PNCI
Gross loans	81,262	85,839
Net deferred loan fees	0	0
Allowance for loan losses	0	0
Net loans	81,262	85,839
PNCI | Commercial real estate
Gross loans	56,669	55,835
PNCI | Real estate construction
Gross loans	0	0
PNCI | Real Estate Multi family
Gross loans	10,483	13,496
PNCI | Real Estate 1 to 4 family
Gross loans	10,493	13,051
PNCI | Commercial and industrial
Gross loans	3,617	3,457
PNCI | Consumer
Gross loans	0	0
PCI
Gross loans	0	0
Net deferred loan fees	0	0
Allowance for loan losses	0	0
Net loans	0	0
PCI | Commercial real estate
Gross loans	0	0
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 (Details 1)

E. LOANS (Details 1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Commercial Real estate
Ending balance	$ 454,000	$ 456,992	$ 431,295
Ending balance: individually evaluated for impairment	4,631	6,530	10,390
Ending balance: collectively evaluated for impairment	449,369	450,462	420,905
Real Estate Construction
Ending balance	36,775	35,206	49,490
Ending balance: individually evaluated for impairment	791	814	831
Ending balance: collectively evaluated for impairment	35,984	34,392	48,659
Real Estate Multi family
Ending balance	105,780	105,138	112,911
Ending balance: individually evaluated for impairment	2,348	0	0
Ending balance: collectively evaluated for impairment	103,432	105,138	112,911
Real Estate 1 to 4 family
Ending balance	175,656	173,476	169,373
Ending balance: individually evaluated for impairment	2,413	2,750	4,391
Ending balance: collectively evaluated for impairment	173,243	170,726	164,982
Commercial and industrial
Ending balance	51,520	55,727	49,277
Ending balance: individually evaluated for impairment	841	860	971
Ending balance: collectively evaluated for impairment	50,679	54,867	48,306
Consumer
Ending balance	17,993	14,057	6,065
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	17,993	14,057	6,065
Total
Ending balance	841,724	840,596	818,411
Ending balance: individually evaluated for impairment	11,024	10,954	16,583
Ending balance: collectively evaluated for impairment	$ 830,700	$ 829,642	$ 801,828

E. LOANS (Details 2)

E. LOANS (Details 2) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
With no related allowance, Recorded Investment	$ 6,744	$ 11,397	$ 6,364
With no related allowance, Unpaid Principal Balance	6,953	12,711	6,364
With no related allowance recorded, Related Allowance	0	0	0
With no related allowance, Average Recorded Investment	6,760	11,430	10,279
With no related allowance, Income Recognized	60	64	274
With an allowance recorded, Recorded Investment	4,280	5,186	4,590
With an allowance recorded, Unpaid Principal Balance	4,280	5,211	4,590
With an allowance recorded, Related Allowance	466	557	409
With an allowance recorded, Average Impaired Balance	4,297	5,225	5,194
With an allowance recorded, Income Recognized	43	48	193
Recorded Investment	11,024	16,583	10,954
Unpaid Principal Balance	11,233	17,922	10,954
Related Allowance	466	557	409
Average Recorded Investment	11,057	16,655	15,473
Income Recognized	103	112	467
Commercial real estate
With no related allowance, Recorded Investment	3,491	8,900	5,785
With no related allowance, Unpaid Principal Balance	3,499	10,023	5,785
With no related allowance recorded, Related Allowance	0	0	0
With no related allowance, Average Recorded Investment	3,501	8,923	8,317
With no related allowance, Income Recognized	42	32	212
With an allowance recorded, Recorded Investment	1,140	1,490	745
With an allowance recorded, Unpaid Principal Balance	1,140	1,490	745
With an allowance recorded, Related Allowance	62	39	15
With an allowance recorded, Average Impaired Balance	1,142	1,498	2,294
With an allowance recorded, Income Recognized	19	20	72
Recorded Investment	4,631	10,390	6,530
Unpaid Principal Balance	4,639	11,513	6,530
Related Allowance	62	39	15
Average Recorded Investment	4,643	10,421	10,611
Income Recognized	61	52	284
Commercial real estate construction
With no related allowance, Recorded Investment	791	831	0
With no related allowance, Unpaid Principal Balance	992	1,022	0
With no related allowance recorded, Related Allowance	0	0	0
With no related allowance, Average Recorded Investment	797	837	520
With no related allowance, Income Recognized	16	9	22
With an allowance recorded, Recorded Investment			814
With an allowance recorded, Unpaid Principal Balance			814
With an allowance recorded, Related Allowance			4
With an allowance recorded, Average Impaired Balance			556
With an allowance recorded, Income Recognized			52
Recorded Investment	791	831	814
Unpaid Principal Balance	992	1,022	814
Related Allowance	0	0	4
Average Recorded Investment	797	837	1,076
Income Recognized	16	9	74
Real Estate Multi family
With no related allowance, Recorded Investment	2,348		0
With no related allowance, Unpaid Principal Balance	2,348		0
With no related allowance recorded, Related Allowance	0		0
With no related allowance, Average Recorded Investment	2,348		764
With no related allowance, Income Recognized	0		12
Recorded Investment	2,348		0
Unpaid Principal Balance	2,348		0
Related Allowance	0		0
Average Recorded Investment	2,348		764
Income Recognized	0		12
Real Estate 1 to 4 family
With no related allowance, Recorded Investment		1,547	464
With no related allowance, Unpaid Principal Balance		1,547	464
With no related allowance recorded, Related Allowance		0	0
With no related allowance, Average Recorded Investment		1,551	561
With no related allowance, Income Recognized		21	21
With an allowance recorded, Recorded Investment	2,413	2,844	2,286
With an allowance recorded, Unpaid Principal Balance	2,413	2,869	2,286
With an allowance recorded, Related Allowance	320	434	318
With an allowance recorded, Average Impaired Balance	2,415	2,848	1,503
With an allowance recorded, Income Recognized	23	28	69
Recorded Investment	2,413	4,391	2,750
Unpaid Principal Balance	2,413	4,416	2,750
Related Allowance	320	434	318
Average Recorded Investment	2,415	4,399	2,064
Income Recognized	23	49	90
Commercial and industrial
With no related allowance, Recorded Investment	114	119	115
With no related allowance, Unpaid Principal Balance	114	119	115
With no related allowance recorded, Related Allowance	0	0	0
With no related allowance, Average Recorded Investment	114	119	117
With no related allowance, Income Recognized	2	2	7
With an allowance recorded, Recorded Investment	727	852	745
With an allowance recorded, Unpaid Principal Balance	727	852	745
With an allowance recorded, Related Allowance	84	84	72
With an allowance recorded, Average Impaired Balance	740	879	841
With an allowance recorded, Income Recognized	1	0	0
Recorded Investment	841	971	860
Unpaid Principal Balance	841	971	860
Related Allowance	84	84	72
Average Recorded Investment	854	998	958
Income Recognized	$ 3	$ 2	$ 7

E. LOANS (Details 3)

E. LOANS (Details 3) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Loans, Nonaccrual Status	$ 3,774	$ 1,940
Commercial real estate
Loans, Nonaccrual Status	565	731
Real Estate Multi family
Loans, Nonaccrual Status	2,348	0
Real Estate 1 to 4 family
Loans, Nonaccrual Status	135	464
Commercial and industrial
Loans, Nonaccrual Status	$ 726	$ 745

E. LOANS (Details 4)

E. LOANS (Details 4) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Troubled debt restructured loans outstanding, accrual status	$ 6,459	$ 5,852
Troubled debt restructured loans outstanding, nonaccrual status	693	1,856
Total modifications	7,152	7,708
Commercial real estate
Troubled debt restructured loans outstanding, accrual status	4,066	3,451
Troubled debt restructured loans outstanding, nonaccrual status	0	646
Total modifications	4,066	4,097
Real Estate 1 to 4 family
Troubled debt restructured loans outstanding, accrual status	2,279	2,286
Troubled debt restructured loans outstanding, nonaccrual status	0	464
Total modifications	2,279	2,750
Commercial and industrial
Troubled debt restructured loans outstanding, accrual status	114	115
Troubled debt restructured loans outstanding, nonaccrual status	693	746
Total modifications	$ 807	$ 861

E. LOANS (Details 5)

E. LOANS (Details 5) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Commercial Real estate
Allowance for credit losses
Beginning balance	$ 5,495	$ 6,392	$ 6,392
Charge-offs	0	0	(91)
Recoveries	2	2	8
Provision for (recovery of) loan losses	0	249	(814)
Ending balance	5,497	6,643	5,495
Ending balance: individually evaluated for impairment	62	39	15
Ending balance: collectively evaluated for impairment	5,435	6,604	5,480
Real Estate Construction
Allowance for credit losses
Beginning balance	388	617	617
Charge-offs	0	0	0
Recoveries	0	0	0
Provision for (recovery of) loan losses	0	10	(229)
Ending balance	388	627	388
Ending balance: individually evaluated for impairment	0	0	4
Ending balance: collectively evaluated for impairment	388	627	384
Real Estate Multi family
Allowance for credit losses
Beginning balance	1,496	389	389
Charge-offs	0	0	0
Recoveries	0	0	0
Provision for (recovery of) loan losses	0	(143)	1,107
Ending balance	1,496	246	1,496
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	1,496	246	1,496
Real Estate 1 to 4 family
Allowance for credit losses
Beginning balance	2,008	2,082	2,082
Charge-offs	(3)	0	0
Recoveries	12	8	175
Provision for (recovery of) loan losses	0	(266)	(249)
Ending balance	2,017	1,824	2,008
Ending balance: individually evaluated for impairment	320	434	318
Ending balance: collectively evaluated for impairment	1,697	1,390	1,690
Commercial and industrial
Allowance for credit losses
Beginning balance	440	650	650
Charge-offs	0	(39)	(39)
Recoveries	4	7	319
Provision for (recovery of) loan losses	0	36	(490)
Ending balance	444	654	440
Ending balance: individually evaluated for impairment	84	84	72
Ending balance: collectively evaluated for impairment	360	570	368
Consumer
Allowance for credit losses
Beginning balance	344	37	37
Charge-offs	0	(1)	(8)
Recoveries	0	0	0
Provision for (recovery of) loan losses	0	114	315
Ending balance	344	150	344
Ending balance: individually evaluated for impairment	0	0	0
Ending balance: collectively evaluated for impairment	344	150	344
Total
Allowance for credit losses
Beginning balance	10,171	10,167	10,167
Charge-offs	(3)	(40)	(138)
Recoveries	18	17	502
Provision for (recovery of) loan losses	0	0	(360)
Ending balance	10,186	10,144	10,171
Ending balance: individually evaluated for impairment	466	557	409
Ending balance: collectively evaluated for impairment	$ 9,720	$ 9,587	$ 9,762

E. LOANS (Details 6)

E. LOANS (Details 6) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Originated
Past Due, Total	$ 8,570	$ 8,199
Current	751,892	746,558
Total Loans	760,462	754,757
Originated | Past Due, 30 - 59 days
Past Due, Total	4,340	2,713
Originated | Past Due, 60 - 89 days
Past Due, Total	1,054	4,277
Originated | Past Due, More than 90 days
Past Due, Total	3,176	1,209
Originated | Commercial real estate
Past Due, Total	1,761	1,586
Current	395,570	399,571
Total Loans	397,331	401,157
Originated | Commercial real estate | Past Due, 30 - 59 days
Past Due, Total	1,150	989
Originated | Commercial real estate | Past Due, 60 - 89 days
Past Due, Total	611	597
Originated | Commercial real estate | Past Due, More than 90 days
Past Due, Total	0	0
Originated | Real Estate Construction
Past Due, Total	0	0
Current	36,775	35,206
Total Loans	36,775	35,206
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	0	0
Originated | Real Estate Construction | Past Due, More than 90 days
Past Due, Total	0	0
Originated | Real Estate Multi family
Past Due, Total	2,348	2,348
Current	92,949	89,294
Total Loans	95,297	91,642
Originated | Real Estate Multi family | Past Due, 30 - 59 days
Past Due, Total	0	0
Originated | Real Estate Multi family | Past Due, 60 - 89 days
Past Due, Total	0	2,348
Originated | Real Estate Multi family | Past Due, More than 90 days
Past Due, Total	2,348	0
Originated | Real Estate 1 to 4 family
Past Due, Total	2,549	3,149
Current	162,614	157,276
Total Loans	165,163	160,425
Originated | Real Estate 1 to 4 family | Past Due, 30 - 59 days
Past Due, Total	1,971	1,603
Originated | Real Estate 1 to 4 family | Past Due, 60 - 89 days
Past Due, Total	443	1,082
Originated | Real Estate 1 to 4 family | Past Due, More than 90 days
Past Due, Total	135	464
Originated | Commercial and industrial
Past Due, Total	1,810	1,064
Current	46,093	51,206
Total Loans	47,903	52,270
Originated | Commercial and industrial | Past Due, 30 - 59 days
Past Due, Total	1,117	69
Originated | Commercial and industrial | Past Due, 60 - 89 days
Past Due, Total	0	250
Originated | Commercial and industrial | Past Due, More than 90 days
Past Due, Total	693	745
Originated | Consumer
Past Due, Total	102	52
Current	17,891	14,005
Total Loans	17,993	14,057
Originated | Consumer | Past Due, 30 - 59 days
Past Due, Total	102	52
Originated | Consumer | Past Due, 60 - 89 days
Past Due, Total	0	0
Originated | Consumer | Past Due, More than 90 days
Past Due, Total	0	0
Purchased Not credit impaired
Past Due, Total	1,220	85
Current	80,042	85,754
Total Loans	81,262	85,839
Purchased Not credit impaired | Past Due, 30 - 59 days
Past Due, Total	0	0
Purchased Not credit impaired | Past Due, 60 - 89 days
Past Due, Total	736	85
Purchased Not credit impaired | Past Due, More than 90 days
Past Due, Total	484	0
Purchased Not credit impaired | Commercial real estate
Past Due, Total	484	85
Current	56,185	55,750
Total Loans	56,669	55,835
Purchased Not credit impaired | Commercial real estate | Past Due, 30 - 59 days
Past Due, Total	0	0
Purchased Not credit impaired | Commercial real estate | Past Due, 60 - 89 days
Past Due, Total	0	85
Purchased Not credit impaired | Commercial real estate | Past Due, More than 90 days
Past Due, Total	484	0
Purchased Not credit impaired | Real Estate Multi family
Past Due, Total	0	0
Current	10,483	13,496
Total Loans	10,483	13,496
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	736	0
Current	9,757	13,051
Total Loans	10,493	13,051
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, 30 - 59 days
Past Due, Total	0	0
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, 60 - 89 days
Past Due, Total	736	0
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, More than 90 days
Past Due, Total	0	0
Purchased Not credit impaired | Commercial and industrial
Past Due, Total	0	0
Current	3,617	3,457
Total Loans	3,617	3,457
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	0
Current	0	0
Total Loans	0	0
Purchased Credit impaired | Past Due, 30 - 59 days
Past Due, Total	0	0
Purchased Credit impaired | Past Due, 60 - 89 days
Past Due, Total	0	0
Purchased Credit impaired | Past Due, More than 90 days
Past Due, Total	0	0
Purchased Credit impaired | Commercial real estate
Past Due, Total	0	0
Purchased Credit impaired | Commercial real estate | Past Due, 30 - 59 days
Past Due, Total	0	0
Purchased Credit impaired | Commercial real estate | Past Due, 60 - 89 days
Past Due, Total	0	0
Purchased Credit impaired | Commercial real estate | Past Due, More than 90 days
Past Due, Total	$ 0	$ 0

E. LOANS (Details 7)

E. LOANS (Details 7) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Pass
Commercial real estate	$ 395,216	$ 397,311
Real estate construction	35,984	34,392
Real estate multi-family	92,949	91,642
Real estate 1 to 4 family	165,029	159,881
Commercial and industrial	46,844	51,968
Consumer loans	17,993	14,057
Totals	754,015	749,251
Commercial real estate	56,104	53,656
Real estate multi-family	10,483	13,496
Real estate 1 to 4 family	10,493	13,051
Commercial and industrial	3,617	3,457
Total	80,697	83,660
Special mention
Commercial real estate	0	0
Real estate construction	0	0
Real estate multi-family	0	0
Real estate 1 to 4 family	0	0
Commercial and industrial	771	0
Consumer loans	0	0
Totals	771	0
Commercial real estate	0	873
Real estate multi-family	0	0
Real estate 1 to 4 family	0	0
Commercial and industrial	0	0
Total	0	873
Sub Standard
Commercial real estate	2,082	3,846
Real estate construction	791	814
Real estate multi-family	2,348	0
Real estate 1 to 4 family	134	544
Commercial and industrial	288	302
Consumer loans	0	0
Totals	5,643	5,506
Commercial real estate	565	1,306
Real estate multi-family	0	0
Real estate 1 to 4 family	0	0
Commercial and industrial	0	0
Total	565	1,306
Doubtful
Commercial real estate	33	0
Real estate construction	0	0
Real estate multi-family	0	0
Real estate 1 to 4 family	0	0
Commercial and industrial	0	0
Consumer loans	0	0
Totals	33	0
Commercial real estate	0	0
Real estate multi-family	0	0
Real estate 1 to 4 family	0	0
Commercial and industrial	0	0
Total	0	0
Total loans
Commercial real estate	397,331	401,157
Real estate construction	36,775	35,206
Real estate multi-family	95,297	91,642
Real estate 1 to 4 family	165,163	160,425
Commercial and industrial	47,903	52,270
Consumer loans	17,993	14,057
Totals	760,462	754,757
Commercial real estate	56,669	55,835
Real estate multi-family	10,483	13,496
Real estate 1 to 4 family	10,493	13,051
Commercial and industrial	3,617	3,457
Total	81,262	85,839
Commercial real estate	0	0
Total	$ 0	$ 0

E. LOANS, (Details Narrative)

E. LOANS, (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
E. Loans Details Narrative
Interest income on impaired loans recognized	$ 103	$ 112	$ 467
Interest on impaired loans not collected	114	225
Cumulative amount of unpaid interest on impaired loans	572	$ 3,537
Nonaccrual loans	$ 3,774		$ 1,940

F. OTHER REAL ESTATE OWNED (Det

F. OTHER REAL ESTATE OWNED (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
F. Other Real Estate Owned Details
Beginning foreclosed asset balance, net	$ 3,300	$ 1,427	$ 1,427
Additions/transfers from loans	0	0	1,817
Capitalized expenditures	1,121	417	56
Disposition/sales	2,604	0	0
Ending foreclosed asset balance, net	$ 1,817	$ 1,443	$ 3,300
Ending number of foreclosed assets	1	1	2
Net gain on sale of foreclosed properties	$ 392	$ 0	$ 0
Loans to facilitate sale of OREO	$ 1,200	$ 0	$ 0

G. BORROWINGS (Details)

G. BORROWINGS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Amount Outstanding	$ 100,000	$ 75,000
FHLB Term Advance
Maturity Date	Apr. 2, 2018	Jan. 2, 2018
Interest Rate	1.69%	1.35%
Amount Outstanding	$ 20,000	$ 15,000
FHLB Term Advance
Maturity Date	Apr. 5, 2018	Jan. 4, 2018
Interest Rate	1.68%	1.39%
Amount Outstanding	$ 25,000	$ 10,000
FHLB Term Advance
Maturity Date	Apr. 12, 2018	Jan. 22, 2018
Interest Rate	1.72%	1.49%
Amount Outstanding	$ 10,000	$ 10,000
FHLB Term Advance
Maturity Date	Apr. 26, 2018	Jan. 29, 2018
Interest Rate	1.87%	1.49%
Amount Outstanding	$ 25,000	$ 20,000
FHLB Term Advance
Maturity Date	May 1, 2018	Jan. 29, 2018
Interest Rate	1.79%	1.49%
Amount Outstanding	$ 20,000	$ 20,000

H. FAIR VALUE MEASUREMENT (Deta

H. FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
U. S. Treasury securities	$ 1,958	$ 1,975
Obligations of U.S. Government agencies	41,506	41,823
Mortgage-backed securities	116,357	119,792
Asset-back securities	3,435	3,686
Obligations of states and political subdivisions	147,923	151,103
Corporate debt	37,085	37,478
Total assets measured at fair value	348,264	355,857
Quoted Prices in Active Markets for Identical Assets (Level 1)
U. S. Treasury securities	1,958	1,975
Obligations of U.S. Government agencies	0	0
Mortgage-backed securities	0	0
Asset-back securities	0	0
Obligations of states and political subdivisions	0	0
Corporate debt	0	0
Total assets measured at fair value	1,958	1,975
Other Observable Inputs (Level 2)
U. S. Treasury securities	0	0
Obligations of U.S. Government agencies	41,506	41,823
Mortgage-backed securities	116,357	119,792
Asset-back securities	3,435	3,686
Obligations of states and political subdivisions	147,923	151,103
Corporate debt	37,085	37,478
Total assets measured at fair value	346,306	353,882
Significant Unobservable Inputs(Level 3)
U. S. Treasury securities	0	0
Obligations of U.S. Government agencies	0	0
Mortgage-backed securities	0	0
Asset-back securities	0	0
Obligations of states and political subdivisions	0	0
Corporate debt	0	0
Total assets measured at fair value	$ 0	$ 0

H. FAIR VALUE MEASUREMENT (De42

H. FAIR VALUE MEASUREMENT (Details 1) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value
Commercial real estate loans	$ 4,631	$ 745
Real estate construction	791	814
Real estate multi-family loans	2,348
Residential 1 to 4 family	2,413	2,286
Commercial and industrial loans	841	745
Other real estate owned	1,817	3,300
Total impaired assets measured at fair value	12,841	7,890
Quoted Prices in Active Markets for Identical Assets (Level 1)
Commercial real estate loans	0	0
Real estate construction	0	0
Real estate multi-family loans	0
Residential 1 to 4 family	0	0
Commercial and industrial loans	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 loans	0	0
Real estate construction	0	0
Real estate multi-family loans	0
Residential 1 to 4 family	0	0
Commercial and industrial loans	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 loans	4,631	745
Real estate construction	791	814
Real estate multi-family loans	2,348
Residential 1 to 4 family	2,413	2,286
Commercial and industrial loans	841	745
Other real estate owned	1,817	3,300
Total impaired assets measured at fair value	$ 12,841	$ 7,890

H. FAIR VALUE MEASUREMENT (De43

H. FAIR VALUE MEASUREMENT (Details 2) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Financial assets:
Cash and cash equivalents	$ 21,233	$ 18,353	$ 25,337	$ 15,758
Interest-bearing time deposits with financial Institutions	15,630	12,898
Other equity securities	348,264
Accrued interest receivable	4,914	5,317
Financial liabilities:
Deposits	1,018,453	1,050,295
Note payable	3,600	3,750
Carrying Amount
Financial assets:
Cash and cash equivalents	5,733	5,585
Interest-bearing time deposits with financial Institutions	15,630	12,898
Securities available for sale	348,264	355,857
Loans	831,049	829,766
Other equity securities	7,567	7,567
Accrued interest receivable	4,914	5,317
Financial liabilities:
Deposits	1,018,453	1,050,295
Federal Home Loan Bank advances	100,000	75,000
Note payable	3,600	3,750
Accrued interest payable	641	510
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	5,733	5,585
Interest-bearing time deposits with financial Institutions	15,630	12,898
Securities available for sale	348,264	355,857
Loans	822,398	811,382
Other equity securities	7,567	7,567
Accrued interest receivable	4,914	5,317
Financial liabilities:
Deposits	859,015	1,050,858
Federal Home Loan Bank advances	99,998	75,000
Note payable	0	3,750
Accrued interest payable	641	510
Off-balance-sheet liabilities:
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit	1,935	1,884
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	5,733	5,585
Interest-bearing time deposits with financial Institutions	0	0
Securities available for sale	1,958	1,975
Loans	0	0
Other equity securities	0	0
Accrued interest receivable	4,914	5,317
Financial liabilities:
Deposits	730,523	912,211
Federal Home Loan Bank advances	0	0
Note payable	0	0
Accrued interest payable	641	510
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	15,630	12,898
Securities available for sale	346,306	350,196
Loans	0	0
Other equity securities	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	128,492	138,647
Federal Home Loan Bank advances	99,998	75,000
Note payable	0	3,750
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
Significant Unobservable Inputs(Level 3)
Financial assets:
Cash and cash equivalents	0	0
Interest-bearing time deposits with financial Institutions	0	0
Securities available for sale	0	0
Loans	822,398	811,382
Other equity securities	7,567	7,567
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
Federal Home Loan Bank advances	0	0
Note 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	$ 1,935	$ 1,884

H. FAIR VALUE MEASUREMENT (De44

H. FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
H. Fair Value Measurement Details Narrative
Nonaccrual loans	$ 3,774	$ 1,940

I. REVENUE FROM CONTRACTS WIT45

I. REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Total noninterest income		$ 842	$ 1,010
Service charges on deposit accounts
Total noninterest income		323
Other service charges and fees
Total noninterest income		206
Not in scope of Topic 606
Total noninterest income	[1]	$ 113
[1]	Most of the Company's revenue is not within the scope of ASU No. 2014-09, Revenue from Contracts with Customers. The guidance explicitly excludes net interest income from financial assets and liabilities as well as other noninterest income from loans, leases, investment securities and derivative financial instruments.