Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 30, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | HomeTown Bankshares Corp | ||
Trading Symbol | hmta | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 3,373,259 | ||
Entity Public Float | $ 23,949,476 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,461,640 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 28,745 | $ 13,795 |
Federal funds sold | 1,329 | 649 |
Securities available for sale, at fair value | 52,544 | 54,603 |
Restricted equity securities, at cost | 2,535 | 2,476 |
Loans held for sale | 1,643 | 242 |
Loans, net of allowance for loan losses of $3,298 in 2015 and $3,332 in 2014 | 364,060 | 328,347 |
Property and equipment, net | 14,008 | 14,900 |
Other real estate owned, net of valuation allowance of $420 in 2015 and $422 in 2014 | 5,237 | 6,986 |
Bank owned life insurance | 6,285 | 3,622 |
Accrued income | 2,057 | 1,924 |
Other assets | 942 | 665 |
Total assets | 479,385 | 428,209 |
Deposits: | ||
Noninterest-bearing | 77,268 | 51,226 |
Interest-bearing | 322,278 | 311,369 |
Total deposits | 399,546 | 362,595 |
Federal Home Loan Bank borrowings | 22,000 | 20,000 |
Subordinated notes | 7,194 | |
Other borrowings | 2,361 | 422 |
Accrued interest payable | 372 | 272 |
Other liabilities | 1,521 | 1,695 |
Total liabilities | $ 432,994 | $ 384,984 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $5 par value; authorized 10,000,000 shares, issued and outstanding 3,362,536 (includes 37,848 restricted shares) at December 31, 2015 and 3,287,567 (includes 37,727 restricted shares) at December 31, 2014 | $ 16,801 | $ 16,438 |
Surplus | 15,484 | 15,310 |
Retained earnings (deficit) | 443 | (2,271) |
Accumulated other comprehensive income | 396 | 455 |
Total HomeTown Bankshares Corporation stockholders’ equity | 46,017 | 43,225 |
Noncontrolling interest in consolidated subsidiary | 374 | |
Total stockholders’ equity | 46,391 | 43,225 |
Total liabilities and stockholders’ equity | 479,385 | 428,209 |
Series C Preferred Stock [Member] | ||
Stockholders’ equity: | ||
Convertible preferred stock, no par value; Series C authorized 20,000 shares, issued and outstanding 13,600 at December 31, 2015 and 14,000 at December 31, 2014 | $ 12,893 | $ 13,293 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans, allowance for loan losses (in Dollars) | $ 3,298 | $ 3,332 |
Other real estate owned, valuation allowance (in Dollars) | $ 420 | $ 422 |
Common stock, par value (in Dollars per share) | $ 5 | $ 5 |
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,362,536 | 3,287,567 |
Common stock, shares outstanding | 3,362,536 | 3,287,567 |
Common stock, restricted shares | 37,848 | 37,727 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized | 20,000 | 20,000 |
Preferred stock, issued | 13,600 | 14,000 |
Preferred stock, outstanding | 13,600 | 14,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and dividend income: | ||
Loans and fees on loans | $ 16,374 | $ 15,230 |
Taxable investment securities | 741 | 1,000 |
Nontaxable investment securities | 405 | 400 |
Dividends on restricted stock | 140 | 129 |
Other interest income | 41 | 39 |
Total interest and dividend income | 17,701 | 16,798 |
Interest expense: | ||
Deposits | 1,898 | 1,746 |
Other borrowed funds | 413 | 372 |
Total interest expense | 2,311 | 2,118 |
Net interest income | 15,390 | 14,680 |
Noninterest income: | ||
Service charges on deposit accounts | 523 | 452 |
ATM and interchange income | 575 | 443 |
Mortgage banking | 703 | 231 |
Gains on sales of investment securities | 52 | 128 |
Gain on sale of building | 348 | |
Other income | 770 | 632 |
Total noninterest income | 2,971 | 1,886 |
Noninterest expense: | ||
Salaries and employee benefits | 6,529 | 5,802 |
Occupancy and equipment expense | 1,757 | 1,535 |
Data processing expense | 856 | 720 |
Advertising and marketing expense | 691 | 598 |
Professional fees | 386 | 581 |
Bank franchise taxes | 262 | 262 |
FDIC insurance expense | 320 | 283 |
Losses (gains) on sales and writedowns of other real estate owned, net | 346 | (10) |
Other real estate owned expense | 151 | 224 |
Directors’ fees | 222 | 223 |
Other expense | 1,635 | 1,346 |
Total noninterest expense | 13,155 | 11,564 |
Net income before income taxes | 5,206 | 5,002 |
Income tax expense | 1,595 | 1,587 |
Net income | 3,611 | 3,415 |
Less net income attributable to non-controlling interest | 57 | |
Net income attributable to HomeTown Bankshares Corporation | 3,554 | 3,415 |
Effective dividends on preferred stock | 840 | 840 |
Net income available to common stockholders | $ 2,714 | $ 2,575 |
Basic earnings per common share (in Dollars per share) | $ 0.82 | $ 0.78 |
Diluted earnings per common share (in Dollars per share) | $ 0.64 | $ 0.62 |
Weighted average common shares outstanding (in Shares) | 3,300,440 | 3,284,870 |
Diluted weighted average common shares outstanding (in Shares) | 5,535,180 | 5,524,870 |
Net interest income after provision for loan losses | $ 15,390 | $ 14,680 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 3,611 | $ 3,415 |
Other comprehensive income: | ||
Net unrealized holding (losses) gains on securities available for sale during the period | (38) | 1,725 |
Deferred income tax benefit (expense) on unrealized holding (losses) gains on securities available for sale | 13 | (587) |
Reclassification adjustment for gains on sales of investment securities included in net income | (52) | (128) |
Tax expense related to realized gains on securities sold | 18 | 44 |
Total other comprehensive (loss) income | (59) | 1,054 |
Comprehensive income | 3,552 | 4,469 |
Less: comprehensive income attributable to the non-controlling interest | 57 | |
Comprehensive income attributable to HomeTown Bankshares Corporation | $ 3,495 | $ 4,469 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2013 | $ 13,293 | $ 16,351 | $ 15,339 | $ (4,846) | $ (599) | $ 39,538 | |
Net income | 3,415 | 3,415 | |||||
Other comprehensive | 1,054 | 1,054 | |||||
Restricted stock awarded | 87 | (87) | |||||
Preferred stock dividend paid | (840) | (840) | |||||
Stock based compensation | 58 | 58 | |||||
Balance at Dec. 31, 2014 | 13,293 | 16,438 | 15,310 | (2,271) | 455 | 43,225 | |
Consolidation of subsidiary shares from non-controlling interest | $ 317 | 317 | |||||
Net income | 3,554 | 57 | 3,611 | ||||
Other comprehensive | (59) | (59) | |||||
Restricted stock awarded | 43 | (43) | |||||
Preferred stock dividend paid | (840) | (840) | |||||
Conversion of preferred stock to common stock | (400) | 320 | 80 | ||||
Stock based compensation | 137 | 137 | |||||
Balance at Dec. 31, 2015 | $ 12,893 | $ 16,801 | $ 15,484 | $ 443 | $ 396 | $ 374 | $ 46,391 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 3,611 | $ 3,415 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 762 | 657 |
Amortization of premium on securities, net | 575 | 577 |
Amortization of discount on subordinated notes | 1 | |
Gains on sales of loans held for sale | (527) | (172) |
Losses (gains) on sales and writedowns of other real estate, net | 346 | (10) |
Gains on sales of investment securities | (52) | (128) |
Gain on sale of building | (348) | |
Net losses on fixed assets disposals | 3 | |
Increase in value of life insurance contracts | (163) | (104) |
Stock compensation expense | 137 | 58 |
Originations of loans held for sale | (24,690) | (8,906) |
Proceeds from sales of loans held for sale | 23,816 | 8,836 |
Changes in assets and liabilities: | ||
Accrued income | (133) | (47) |
Other assets | (277) | (53) |
Deferred taxes, net | 50 | 856 |
Accrued interest payable | 100 | (14) |
Other liabilities | (193) | 870 |
Net cash flows provided by operating activities | 3,018 | 5,835 |
Cash flows used in investing activities: | ||
Net (increase) decrease in federal funds sold | (680) | 89 |
Purchases of investment securities | (9,394) | (9,428) |
Sales, maturities, and calls of available for sale securities | 10,840 | 13,895 |
(Redemptions) purchase of restricted equity securities, net | (59) | 88 |
Net increase in loans | (35,713) | (35,655) |
Proceeds from sales of other real estate | 1,403 | 1,206 |
Purchases of bank owned life insurance | (2,500) | |
Purchases of property and equipment | (370) | (1,921) |
Proceeds from disposals of property and equipment | 845 | |
Net cash flows used in investing activities | (35,628) | (31,726) |
Cash flows from financing activities: | ||
Net increase in noninterest-bearing deposits | 26,042 | 4,994 |
Net increase in interest-bearing deposits | 10,909 | 17,831 |
Net increase (decrease) in FHLB borrowings | 2,000 | (2,000) |
Issuance of subordinated notes, net | 7,193 | |
Net increase in other borrowings | 1,939 | 164 |
Net increase in equity of non-controlling interest | 317 | |
Preferred stock dividend payment | (840) | (840) |
Net cash flows provided by financing activities | 47,560 | 20,149 |
Net increase (decrease) in cash and cash equivalents | 14,950 | (5,742) |
Cash and cash equivalents, beginning | 13,795 | 19,537 |
Cash and cash equivalents, ending | 28,745 | 13,795 |
Supplemental disclosure of cash flow information: | ||
Cash payments for interest | 2,211 | 2,132 |
Cash payments for income taxes | 2,201 | 42 |
Supplemental disclosure of noncash investing activities: | ||
Transfer from loans to other real estate owned | 1,520 | |
Transfer from other real estate to fixed assets | 1,481 | |
Change in unrealized gains and losses on available for sale securities | (90) | $ 1,597 |
Conversion of preferred stock to common stock | $ 400 |
Note 1 - Organization and Summa
Note 1 - Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Note 1. Organization and Summary of Significant Accounting Policies Organization On September 4, 2009, HomeTown Bankshares Corporation (the “Company”) acquired all outstanding stock of HomeTown Bank (the “Bank”) in an exchange for shares of the Company on a one-for-one basis to become a single-bank holding company with the Bank becoming a wholly-owned subsidiary. The Bank was organized and incorporated under the laws of the State of Virginia on November 9, 2004 and commenced operations on November 14, 2005. The Bank currently serves Roanoke City, Virginia; the County of Roanoke, Virginia; the City of Salem, Virginia; Christiansburg, Virginia; and surrounding areas. As a state chartered bank, which is a member of the Federal Reserve System, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Federal Reserve Board. In 2014 the Bank formed a joint venture with another entity and now has a 49% ownership interest in HomeTown Residential Mortgage, LLC. The consolidated financial statements of HomeTown Bankshares Corporation include the accounts of its wholly-owned subsidiary HomeTown Bank and the accounts of its subsidiary, HomeTown Residential Mortgage LLC. HomeTown Bank owns a 49% interest in HomeTown Residential Mortgage LLC which originates and sells mortgages secured by personal residences. Due to the marketing support and direction provided by HomeTown Bank to HomeTown Residential Mortgage LLC, along with guarantees of warehouse lines of credit used in its operation, the Company is deemed to exercise control of this entity. The ownership interest in HomeTown Residential Mortgage LLC not owned by the Company is reported as a Non-Controlling Interest in a Consolidated Subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. Summary of Significant Accounting Policies The following is a description of the significant accounting and reporting policies the Company follows in preparing and presenting its consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of HomeTown Bankshares Corporation and its wholly-owned subsidiary HomeTown Bank. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, and the valuation of deferred tax assets. Substantially all of the Company’s loan portfolio consists of loans in its market area. Accordingly, the ultimate collectability of a substantial portion of the Company’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate (as applicable) is susceptible to changes in local market conditions. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and amounts due from correspondent banks. For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as those amounts included in the consolidated balance sheet caption “cash and due from banks.” Securities Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available for sale, or trading, based on management’s intent. Currently, all of the Company’s investment securities are classified as available for sale. Available for sale securities are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income. Gains or losses are recognized in earnings on the trade date using the amortized cost of the specific security sold. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either (i) the Company intends to sell the security or (ii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not likely that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. The Company regularly reviews each investment security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. Restricted Equity Securities As members of the Federal Reserve Bank (FRB) and the FHLB, the Company is required to maintain certain minimum investments in the capital stock of the FRB and FHLB. The Company’s investment in these securities is recorded at cost, based on the redemption provisions of the FRB and FHLB. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal amount adjusted for any charge-offs, allowance for loan losses and deferred fees or costs on originated loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield of the related loan. Interest is accrued and credited to income based on the principal amount outstanding. The accrual of interest on impaired loans for all classes is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest for the current year is reversed. Interest income is subsequently recognized only to the extent cash payments are received. When facts and circumstances indicate the borrower has regained the ability to meet the required payments, the loan is returned to accrual status. Past-due status of loans is determined based on contractual terms. The loan portfolio is comprised of the following classes. ● Residential real estate construction loans carry risks that the home will not be finished according to schedule, will not be finished according to the budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor may be unable to finish the construction project as planned because of financial pressure unrelated to the project. ● Land acquisition and development loans and commercial construction loans carry risks that the project will not be finished according to schedule, will not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Land acquisition and development loans and commercial construction loans also bear the risk that the developer, in the case of land acquisition and development loans, or the general contractor, in the case of commercial construction loans, may be unable to finish the development or construction project as planned because of financial pressure unrelated to the project. ● Residential real estate loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. ● Commercial, industrial and agricultural loans carry risks associated with the successful operation of a business. In addition, there is risk associated with the value of the collateral which may depreciate over time and cannot be appraised with as much precision. ● Equity lines of credit carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Consumer loans carry risks associated with the continued creditworthiness of the borrower and the value of the collateral (e.g., rapidly depreciating assets such as automobiles), or lack thereof. Consumer loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell, if the loan is collateral dependent. TDRs (Troubled Debt Restructurings) occur when the Company agrees to significantly modify the original terms of a loan due to the deterioration in the financial condition of the borrower. TDRs are considered impaired loans. Upon designation as a TDR, the Company evaluates the borrower’s payment history, past-due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Company concludes that the borrower is able to make such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on nonaccrual status at the time of the TDR, the loan will remain on nonaccrual status following the modification and may be returned to accrual status based on a record of making payments as scheduled for a period of six consecutive months. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Consumer loans are charged off when they become 120 days past due. Non-consumer loans are charged off when the loan becomes 180 days past due unless the loan is well secured and in the process of collection. Borrowers that are in bankruptcy are charged off unless the debt has been reaffirmed and is well secured and recovery is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired, and is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal will be ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions when appropriate. The general component covers non-classified, or performing, loans and those loans classified as substandard or special mention that are not impaired. The general component is based on historical loss experience adjusted for qualitative factors, such as current economic conditions, including current home sales and foreclosures, unemployment rates and retail sales. The characteristics of the loan ratings are as follows: ● Pass rated loans are to persons or business entities with an acceptable financial condition, appropriate collateral margins, appropriate cash flow to service the existing loan, and an appropriate leverage ratio. The borrower has paid all obligations as agreed and it is expected that this type of payment history will continue. When necessary, acceptable personal guarantors support the loan. ● Special mention loans have a specific defined weakness in the borrower’s operations and the borrower’s ability to generate positive cash flow on a sustained basis. The borrower’s recent payment history may be characterized by late payments. The Company’s risk exposure is mitigated by collateral supporting the loan. The collateral is considered to be well-margined, well maintained, accessible and readily marketable. ● Substandard loans are considered to have specific and well-defined weaknesses that jeopardize the viability of the Company’s credit extension. The payment history for the loan may have been inconsistent, and the expected or projected primary repayment source may be inadequate to service the loan. The estimated net liquidation value of the collateral pledged and/or ability of the personal guarantor(s) to pay the loan may not adequately protect the Company. There is a distinct possibility that the Company will sustain some loss if the deficiencies associated with the loan are not corrected in the near term. A substandard loan would not automatically meet our definition of impaired unless the loan is significantly past due and the borrower’s performance and financial condition provide evidence that it is probable that the Company will be unable to collect all amounts due. ● Substandard nonaccrual loans have the same characteristics as substandard loans; however, they have a non-accrual classification and are considered impaired. ● Doubtful rated loans have all the weaknesses inherent in a loan that is classified substandard but with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high. ● Loss rated loans are not considered collectible under normal circumstances, and there is no realistic expectation for any future payment on the loan. Loss rated loans are fully charged off. Loan Fees and Costs Loan origination and commitment fees and certain direct loan origination costs charged by the Bank are deferred and the net amount amortized as an adjustment of the related loan’s yield. The Bank is amortizing these net amounts over the contractual life of the related loans or, in the case of demand loans, over the estimated life. Net fees related to standby letters of credit are recognized over the commitment period. Property and Equipment Land is carried at cost. Buildings, equipment, and leasehold improvements are carried at cost, less accumulated depreciation and amortization. Depreciation is provided over the estimated useful lives of the respective assets on the straight-line basis. Estimated useful lives range from ten to forty years for buildings and from three to ten years for equipment, furniture, and fixtures. Leasehold improvements are amortized over a term which includes the remaining lease term and probable renewal periods on a straight-line basis. Maintenance and repairs are charged to expense as incurred and major improvements are capitalized. Foreclosed Properties Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less anticipated cost to sell at the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Changes in the valuation allowance are included in the income statement in the line “Gains, losses on sales and writedowns of other real estate owned, net.” Bank Owned Life Insurance The Company purchased life insurance policies during 2013 and 2015 on certain key executives. These policies are recorded at their cash surrender value. Increases in the cash surrender value of the life insurance contracts are included in noninterest income in the consolidated income statement caption “other income.” Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity, or the ability to unilaterally cause the transferee to return specific assets. Advertising Expense The Company expenses advertising and marketing costs as they are incurred. Income Taxes Deferred income tax assets and liabilities are determined using the liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the consolidated statement of income. There are no unrecognized tax benefits as of December 31, 2015 and 2014. Earnings per Common Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits and dividends. Nonvested restricted shares are included in basic earnings per share because of dividend participation rights. Diluted earnings per common share is similar to the computation of basic earnings per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of those potential common shares. Potential common shares that may be issued by the Company relate to the convertible preferred stock outstanding and the outstanding stock options. The preferred stock is convertible into shares of common stock of the Company based on a conversion price of $6.25 per share, subject to adjustment. The potential dilutive effect of the outstanding stock options is determined using the treasury stock method. Comprehensive Income Comprehensive income reflects the change in the Company’s equity during the year arising from transactions and events other than investment by and distributions to stockholders. It consists of net income plus certain other changes in assets and liabilities that are reported as separate components of stockholders’ equity rather than as income or expense. These changes for the Company relate solely to unrealized gains and losses on securities available for sale. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distress sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation techniques or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under lines of credit arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. Stock-Based Compensation Plan The 2005 Stock Option Plan was approved by stockholders on April 20, 2006, which authorized 550,000 shares of common stock to be used in the granting of incentive options to employees and directors. This is the first stock incentive plan adopted by the Company. Under the plan, the option price cannot be less than the fair market value of the stock on the date granted. An option’s maximum term is ten years from the date of grant. Options granted under the plan may be subject to a vesting schedule. The Company accounts for the stock option plan in accordance with applicable accounting guidance. Under the fair value recognition provisions of this guidance, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. In 2009, the Board of Directors authorized 132,000 shares of common stock for issuance under the Restricted Stock Plan. The plan provides for restricted stock awards to key employees. Restricted shares awarded to employees generally vest over a five-year period and compensation expense is charged to income ratably over the vesting period. Compensation is accounted for using the fair market value of the Company’s common stock on the date the restricted shares are awarded. Recent Accounting Pronouncements In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718),” should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its consolidated financial statements. In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” The amendments in ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The Company does not expect the adoption of ASU 2014-16 to have a material impact on its consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU are intended to improve targeted areas of co |
Note 2 - Investment Securities
Note 2 - Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2. Investment Securities Amortized cost and fair value of securities available for sale are as follows: (Dollars In Thousands) December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agency securities $ 26,385 $ 242 $ (191 ) $ 26,436 Mortgage-backed securities 8,803 60 (90 ) 8,773 Municipal securities 16,756 594 (15 ) 17,335 $ 51,944 $ 896 $ (296 ) $ 52,544 (Dollars In Thousands) December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agency securities $ 26,812 $ 333 $ (180 ) $ 26,965 Mortgage-backed securities 9,678 125 (64 ) 9,739 Municipal securities 17,423 531 (55 ) 17,899 $ 53,913 $ 989 $ (299 ) $ 54,603 The primary purpose of the investment portfolio is to generate income, diversify earning assets, and meet liquidity needs of the Company through readily saleable financial instruments. The portfolio is made up primarily of fixed rate bonds, whose prices move inversely with rates. At the end of any accounting period, the investment portfolio has unrealized gains and losses. The Company monitors the portfolio, which is subject to liquidity needs, market rate changes, and credit risk changes, to see if adjustments are needed. The primary concern in a loss situation is the credit quality of the business or entity behind the instrument. The primary cause of unrealized losses is the increase in market interest rates over the yields available at the time the securities were purchased. At December 31, 2015, the Company does not consider any security in an unrealized loss position to be other-than-temporarily impaired. U.S. Government and federal agency securities . Mortgage-backed securitie s. Municipal securities . The following tables demonstrate the unrealized loss position of securities available for sale at December 31, 2015 and 2014. December 31, 2015 Less than 12 months 12 months or more Total (Dollars In Thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agency securities $ 8,878 $ (106 ) $ 5,275 $ (85 ) $ 14,153 $ (191 ) Mortgage-backed securities 3,447 (32 ) 2,718 (58 ) 6,165 (90 ) Municipal securities 805 (10 ) 526 (5 ) 1,331 (15 ) $ 13,130 $ (148 ) $ 8,519 $ (148 ) $ 21,649 $ (296 ) December 31, 2014 Less than 12 months 12 months or more Total (Dollars In Thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agency securities $ 5,568 $ (48 ) $ 7,078 $ (132 ) $ 12,646 $ (180 ) Mortgage-backed securities 742 (6 ) 4,058 (58 ) 4,800 (64 ) Municipal securities 1,625 (20 ) 2,186 (35 ) 3,811 (55 ) $ 7,935 $ (74 ) $ 13,322 $ (225 ) $ 21,257 $ (299 ) The amortized cost and estimated fair value of securities at December 31, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to prepay obligations with or without call or prepayment penalties. (Dollars In Thousands) Amortized Cost Fair Value Less than one year $ - $ - Over one through five years 1,809 1,825 Over five through ten years 10,363 10,424 Greater than 10 years 39,772 40,295 $ 51,944 $ 52,544 Proceeds from the sales, maturities and calls of securities available for sale in 2015 and 2014 were $10.8 million and $13.9 million, respectively. The Company realized $52 thousand in net gains on sales of six available for sale securities in 2015, compared to $128 thousand from the sales of twelve securities in the prior year. The net gain in 2015 included gross gains of $67 thousand and gross losses of $15 thousand. The prior year included gross gains of $163 thousand and gross losses of $35 thousand. Total pledged securities had a fair market value of $7.4 million at December 31, 2015 and $8.8 million at December 31, 2014. Securities having a fair market value of $4.4 million were pledged to secure public deposits, while securities pledged to secure Federal Home Loan Bank borrowings totaled $1.4 million. $1.6 million in securities were pledged for other purposes at December 31, 2015. |
Note 3 - Loans Receivable
Note 3 - Loans Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3. Loans Receivable The major classifications of loans in the consolidated balance sheets at December 31, 2015 and 2014 were as follows: (Dollars In Thousands) December 31, 2015 2014 Construction: Residential $ 11,779 $ 10,019 Land acquisition, development & commercial 27,440 23,686 Real Estate: Residential 100,268 86,269 Commercial 140,952 135,070 Commercial, industrial & agricultural 53,012 44,807 Equity lines 26,376 24,330 Consumer 7,531 7,498 Total loans $ 367,358 $ 331,679 Less allowance for loan losses (3,298 ) (3,332 ) Loans, net $ 364,060 $ 328,347 The past-due and nonaccrual status of loans as of December 31, 2015 was as follows: (Dollars In Thousands) 30-59 Days Past-Due 60-89 Days Past-Due 90 Days or More Past-Due Total Past-Due Current Total Loans Nonaccrual Loans Construction: Residential $ − $ − $ − $ − $ 11,779 $ 11,779 $ − Land acquisition, development & commercial − − 11 11 27,429 27,440 11 Real Estate: Residential 297 − 50 347 99,921 100,268 − Commercial 44 − 792 836 140,116 140,952 368 Commercial, industrial & agricultural 52 84 35 171 52,841 53,012 47 Equity lines 105 − − 105 26,271 26,376 − Consumer − − − − 7,531 7,531 − Total $ 498 $ 84 $ 888 $ 1,470 $ 365,888 $ 367,358 $ 426 The past-due and nonaccrual status of loans as of December 31, 2014 was as follows: (Dollars In Thousands) 30-59 Days Past-Due 60-89 Days Past-Due 90 Days or More P ast-Due Total Past-Due Current Total Loans Nonaccrual Loans Construction: Residential $ – $ – $ – $ – $ 10,019 $ 10,019 $ – Land acquisition, development & commercial – – – – 23,686 23,686 – Real Estate: Residential – 381 261 642 85,627 86,269 475 Commercial – 85 – 85 134,985 135,070 758 Commercial, industrial & agricultural 96 – – 96 44,711 44,807 – Equity lines 105 – – 105 24,225 24,330 – Consumer 10 36 – 46 7,452 7,498 21 Total $ 211 $ 502 $ 261 $ 974 $ 330,705 $ 331,679 $ 1,254 There were two loans, totaling $842 thousand that were past due ninety days or more and still accruing interest at December 31, 2015. There were no loans past due ninety days or more and still accruing interest at December 31, 2014. Impaired loans, which include TDRs of $6.7 million, and the related allowance at December 31, 2015, were as follows: December 31, 2015 With no related allowance: (Dollars In Thousands) Recorded Investment in Loans Unpaid Principal Balance Related Allowance Average Balance Total Loans Interest Income Recognized Construction: Residential $ − $ − $ – $ − $ − Land acquisition, development & commercial − − – − − Real Estate: Residential 247 247 – 255 13 Commercial 7,451 7,627 – 7,623 291 Commercial, industrial & agricultural 12 12 – 12 − Equity lines − − – − − Consumer − − – − − Total loans with no allowance $ 7,710 $ 7,886 $ – $ 7,890 $ 304 December 31, 2015 With an allowance recorded: (Dollars In Thousands) Recorded Investment in Loans Unpaid Principal Balance Related Allowance Average Balance Total Loans Interest Income Recognized Construction: Residential $ − $ − $ − $ − $ − Land acquisition, development & commercial − − − − − Real Estate: Residential − − − − − Commercial 127 127 17 135 − Commercial, industrial & agricultural − − − − − Equity lines − − − − − Consumer − − − − − Total loans with an allowance $ 127 $ 127 $ 17 $ 135 $ − Impaired loans, which include TDRs of $6.7 million, and the related allowance at December 31, 2014, were as follows: December 31, 2014 With no related allowance: (Dollars In Thousands) Recorded Investment in Loans Unpaid Principal Balance Related Allowance Average Balance Total Loans Interest Income Recognized Construction: Residential $ – $ – $ – $ – $ – Land acquisition, development & commercial – – – – – Real Estate: Residential 525 700 – 605 12 Commercial 7,507 7,507 – 8,563 289 Commercial, industrial & agricultural – – – – – Equity lines – – – – – Consumer – – – – – Total loans with no allowance $ 8,032 $ 8,207 $ – $ 9,168 $ 301 December 31, 2014 With an allowance recorded: (Dollars In Thousands) Recorded Investment in Loans Unpaid Principal Balance Related Allowance Average Balance Total Loans Interest Income Recognized Construction: Residential $ – $ – $ – $ – $ – Land acquisition, development & commercial – – – – – Real Estate: Residential – – – – – Commercial 141 141 141 153 – Commercial, industrial & agricultural – – – – – Equity lines – – – – – Consumer – – – – – Total loans with an allowance $ 141 $ 141 $ 141 $ 153 $ – Troubled Debt Restructurings At December 31, 2015, six loans totaling $6.7 million were classified as troubled debt restructurings (“TDRs”). Four of the six loans totaling $6.4 million were performing in accordance with their restructured terms and were not on nonaccrual status at year end 2015. The other two loans totaling $252 thousand were on nonaccrual status at year end 2015. The loan restructured into two TDRs during the year ended December 31, 2015 was included in substandard nonaccrual loans and impaired loans at the end of 2014. All six TDRs were current with their restructured terms at December 31, 2015. At December 31, 2014, four loans totaling $6.7 million were classified as troubled debt restructurings. Two of the four loans totaling $6.1 million were performing in accordance with their restructured terms and were not on nonaccrual status at year end 2014. The other two loans totaling $639 thousand were on nonaccrual status. One of the loans evaluated separately for impairment at year end 2013 was modified as a TDR during the third quarter of 2014. The other was a TDR that was classified as a substandard non-accruing loan at December 31, 2014. The outstanding balance of this loan was $22 thousand at December 31, 2014. There was no valuation allowance related to total TDRs at December 31, 2015, or December 31, 2014. The following table presents by class of loan, information related to the loan modified in a TDR during the year ended December 31, 2015: Loans modified as TDRs For the year ended December 31, 2015 Class of Loan Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (Dollars in Thousands) Construction loans: Residential — $ — $ — Land acquisition, development & commercial — — — Real estate loans: Residential — — — Commercial 1 260 255 Commercial, industrial, agricultural — — 12 Equity lines — — — Consumer — — — Total Loans 1 $ 260 $ 267 In September 2014, the Company agreed to take ownership via a deed-in-lieu of foreclosure of a commercial property pledged to a loan. The property is included in other real estate owned. The remaining balance is reported as a loan modified as a TDR. The following table presents by class of loan, information related to the loan modified in a TDR during 2014: Loans modified as TDR s For the year ended December 31, 2014 Class of Loan Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (Dollars in Thousands) Construction loans: Residential — $ — $ — Land acquisition, development & commercial — — — Real estate loans: Residential — — — Commercial 1 1,932 632 Commercial, industrial, agricultural — — — Equity lines — — — Consumer — — — Total Loans 1 $ 1,932 $ 632 Management considers troubled debt restructurings and subsequent defaults in restructured loans in the determination of the adequacy of the Company’s allowance for loan losses. When identified as a TDR, a loan is evaluated for potential loss based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs if the loan is collateral dependent. Loans identified as TDRs frequently are on non-accrual status at the time of the restructuring and, in some cases, partial charge-offs may have already been taken against the loan and a specific allowance may have already been established for the loan. As a result of any modification as a TDR, the specific reserve associated with the loan may be increased. Additionally, loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future defaults. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. As a result, any specific allowance may be increased, adjustments may be made in the allocation of the total allowance balance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Management exercises significant judgment in developing estimates for potential losses associated with TDRs. |
Note 4 - Allowance for Loan Los
Note 4 - Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Allowance for Credit Losses [Text Block] | Note 4. Allowance for Loan Losses The following table presents, as of December 31, 2015, the total loans and loans by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment) and the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment). December 31, 201 5 Allowance for loan losses Loans Class of Loan (Dollars in Thousands) Beginning balance Charge- offs Recoveries Provisions Ending balance Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Ending balance Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Construction loans: Residential $ 43 $ − $ − $ 40 $ 83 $ − $ 83 $ 11,779 $ − $ 11,779 Land acquisition, development & commercial 453 − − (266 ) 187 − 187 27,440 − 27,440 Real estate: Residential 833 − 1 213 1,047 − 1,047 100,268 247 100,021 Commercial 1,012 − − (11 ) 1,001 17 984 140,952 7,578 133,374 Commercial, industrial & agricultural 319 − 10 202 531 − 531 53,012 12 53,000 Equity lines 423 − 1 (147 ) 277 − 277 26,376 − 26,376 Consumer 65 (80 ) 34 66 85 − 85 7,531 − 7,531 Unallocated 184 − − (97 ) 87 − 87 − − − Total $ 3,332 $ (80 ) $ 46 $ − $ 3,298 $ 17 $ 3,281 $ 367,358 $ 7,837 $ 359,521 The following table presents, as of December 31, 2014, the total loans and loans by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment) and the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment). December 31, 2014 Allowance for loan losses Loans Class of Loan (Dollars in Thousands) Beginning balance Charge- offs Recoveries Provisions Ending balance Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Ending balance Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Construction loans: Residential $ 156 $ − $ − $ (113 ) $ 43 $ − $ 43 $ 10,019 $ − $ 10,019 Land acquisition, development & commercial 872 − − (419 ) 453 − 453 23,686 − 23,686 Real estate: Residential 867 (233 ) 34 165 833 − 833 86,269 525 85,744 Commercial 1,008 − − 4 1,012 141 871 135,070 7,648 127,422 Commercial, industrial & agricultural 327 (55 ) − 47 319 − 319 44,807 − 44,807 Equity lines 385 (136 ) 37 137 423 − 423 24,330 − 24,330 Consumer 63 (40 ) 4 38 65 − 65 7,498 − 7,498 Unallocated 43 − − 141 184 − 184 − − − Total $ 3,721 $ (464 ) $ 75 $ − $ 3,332 $ 141 $ 3,191 $ 331,679 $ 8,173 $ 323,506 Loans by credit quality indicators as of December 31, 2015 were as follows: (Dollars In Thousands) Pass Special Mention Substandard Accruing Substandard Nonaccrual Total Construction loans: Residential $ 11,779 $ − $ − $ − $ 11,779 Land acquisition, development & commercial 27,429 − − 11 27,440 Real estate loans: Residential 95,809 4,212 247 − 100,268 Commercial 138,034 1,155 1,395 368 140,952 Commercial, industrial, agricultural 51,801 1,164 − 47 53,012 Equity lines 26,376 − − − 26,376 Consumer 7,523 − 8 − 7,531 Total Loans $ 358,751 $ 6,531 $ 1,650 $ 426 $ 367,358 At December 31, 2015, the Company does not have any loans classified as Doubtful or Loss. Loans by credit quality indicators as of December 31, 2014 were as follows: (Dollars In Thousands) Pass Special Mention Substandard Accruing Substandard Nonaccrual Total Construction loans: Residential $ 10,019 $ − $ − $ − $ 10,019 Land acquisition, development & commercial 23,672 − 14 − 23,686 Real estate loans: Residential 81,409 4,335 50 475 86,269 Commercial 131,087 2,302 923 758 135,070 Commercial, industrial, agricultural 44,248 521 38 − 44,807 Equity lines 24,330 − − − 24,330 Consumer 7,475 − 2 21 7,498 Total Loans $ 322,240 $ 7,158 $ 1,027 $ 1,254 $ 331,679 At December 31, 2014, the Company does not have any loans classified as Doubtful or Loss. |
Note 5 - Foreclosed Properties
Note 5 - Foreclosed Properties | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Real Estate Owned [Text Block] | Note 5. Foreclosed Properties Changes in foreclosed properties for 2015 were as follows: (Dollars In Thousands) Other Real Estate Owned Valuation Allowance Net Balance at the beginning of the year $ 7,408 $ (422 ) $ 6,986 Additions — — — Writedowns — (346 ) (346 ) Sales (1,751 ) 348 (1,403 ) Balance at the end of the year $ 5,657 $ (420 ) $ 5,237 Changes in foreclosed properties for 2014 were as follows: (Dollars In Thousands) Other Real Estate Owned Valuation Allowance Net Balance at the beginning of the year $ 9,078 $ (935 ) $ 8,143 Additions 1,520 — 1,520 Writedowns — — — Sales (1,618 ) 422 (1,196 ) Transfer to fixed assets (1,572 ) 91 (1,481 ) Balance at the end of the year $ 7,408 $ (422 ) $ 6,986 The major classifications of other real estate owned in the consolidated balance sheets at December 31, 2015 and December 31, 2014 were as follows: (Dollars In Thousands) 2015 2014 Residential lots $ 2,520 $ 3,023 Residential development 423 423 Commercial lots 90 1,076 Commercial buildings 2,204 2,464 Total Other Real Estate Owned $ 5,237 $ 6,986 Other real estate owned related expenses in the consolidated statements of income for the years ended December 31, 2015 and December 31, 2014 include: (Dollars In Thousands) 2015 2014 Net (gain) loss on sales $ — $ (10 ) Provision for unrealized losses 346 — Operating expenses 151 224 Total Other Real Estate Owned $ 497 $ 214 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 6. Property and Equipment The major components of property and equipment at December 31, 2015 and 2014 were as follows: (Dollars In Thousands) 2015 2014 Land $ 4,309 $ 4,656 Buildings and improvements 8,611 8,720 Leasehold improvements 2,149 2,149 Furniture and equipment 3,113 3,074 Software 554 487 Construction in process 13 49 Property and equipment, total 18,749 19,135 Less accumulated depreciation and amortization 4,741 4,235 Property and equipment, net $ 14,008 $ 14,900 Depreciation and amortization expense was $762 thousand and $657 thousand for the years ended December 31, 2015 and 2014, respectively. Leases The Company currently leases its main office under a non-cancelable lease agreement. The original lease expired on December 31, 2015, which provided an option to extend the lease for two additional five-year periods. The lease was renewed for one additional term of ten years and it provides an option to extend the lease for one additional ten-year tem at expiration. The newly negotiated lease expires December 31, 2025. Terms of the new agreement provide for an annual rental increase, beginning January 1, 2017, based on a published inflation index, not to exceed three percent over the rent for the immediately preceding lease year. The Company currently leases a branch location under a non-cancelable lease agreement. Terms of the agreement provide for an annual rental increase based on a published inflation index, not to exceed three percent over the rent for the immediately preceding lease year. The lease expires on July 31, 2016 and provides an option to extend the lease for two additional five-year periods. The Company currently leases space to operate an automated teller machine under a non-cancelable lease agreement. The lease expires April 1, 2021 and provides an option to extend the lease for two additional five-year periods. Terms of the agreement provide for an annual rental increase of three percent over the rent for the immediately preceding lease year. The current minimum annual lease payments under non-cancelable leases in effect at December 31, 2015 were as follows: (Dollars In Thousands) 2014 2016 $ 224 2017 168 2018 168 2019 169 2020 169 Thereafter 788 Total $ 1,686 Rent expense for the years ended December 31, 2015 and 2014 was $333 thousand and $322 thousand, respectively, and is included in occupancy and equipment expense on the Company’s consolidated statements of income. |
Note 7 - Deposits
Note 7 - Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Note 7. Deposits The aggregate amount of time deposits in denominations of over two hundred and fifty thousand dollars at December 31, 2015 and 2014 were $10.0 million and $9.4 million, respectively. At December 31, 2015, the scheduled maturities of time deposits are as follows: (Dollars In Thousands) 2015 2016 $ 74,626 2017 41,354 2018 14,024 2019 5,703 2020 3,903 Total $ 139,610 The Company obtains certain deposits through the efforts of third-party deposit brokers. At December 31, 2015 and 2014, brokered deposits totaled $34.2 million and $40.2 million, respectively, and were included in interest-bearing deposits on the consolidated balance sheets. There were no deposit relationships over 5% of total deposits at the end of 2015. |
Note 8 - Federal Home Loan Bank
Note 8 - Federal Home Loan Bank Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Federal Home Loan Bank Advances, Disclosure [Text Block] | Note 8 . Federal Home Loan Bank Borrowings The Company has outstanding debt with the Federal Home Loan Bank of Atlanta in the amount of $22.0 million and $20.0 million as of December 31, 2015 and 2014, respectively. The Federal Home Loan Bank debt at December 31, 2015 is comprised of one convertible advance in the amount of $4 million, and three fixed rate advances totaling $18 million. Beginning on March 7, 2011, the Federal Home Loan Bank of Atlanta had the option to convert the convertible advance and on any quarterly interest payment date thereafter, with at least two business days’ notice. If called, the advance will be converted into a 3-month London Interbank Offered Rate (LIBOR) based adjustable rate credit. At December 31, 2015 and 2014, borrowings from the Federal Home Loan Bank of Atlanta were as follows: (Dollars In Thousands) Advance Date Maturity Date Conversion Date Current Rate 2015 2014 September 7, 2007 September 7, 2017 Quarterly 3.690 % $ 4,000 $ 4,000 April 13, 2012 April 13, 2016 1.265 % 12,000 12,000 June 17, 2014 June 17, 2015 0.260 % - 2,000 June 17, 2014 June 17, 2016 0.670 % 2,000 2,000 January 14, 2015 January 16, 2018 1.090 % 4,000 - $ 22,000 $ 20,000 The Company had collateral pledged on these borrowings at December 31, 2015, including real estate loans totaling $30.7 million, investment securities totaling $1.4 million, and Federal Home Loan Bank stock with a book value of $1.3 million. |
Note 9 - Subordinated Notes
Note 9 - Subordinated Notes | 12 Months Ended |
Dec. 31, 2015 | |
Subordinated Borrowings [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | Note 9 . Subordinated Notes On December 18, 2015, the Company completed the issuance of $7.5 million in aggregate principal amount of fixed-to-floating rate subordinated notes in a private placement transaction to various institutional accredited investors. The net proceeds of the offering are intended to support growth and be used for other general business purposes. The notes have a maturity date of December 30, 2025 and have an annual fixed interest rate of 6.75% until December 30, 2020. Thereafter, the notes will have a floating interest rate based on LIBOR. Interest will be paid semi-annually, in arrears, on June 30 and December 30 of each year during the time that the notes remain outstanding through the fixed interest rate period or earlier redemption date. Interest will be paid quarterly, in arrears, on March 30, June 30, September 30 and December 30 throughout the floating interest rate period or earlier redemption date. (Dollars in Thousands) As of December 31, 2015 Principal Unamortized Debt Issuance Costs Net Subordinated notes $ 7,500 $ 306 $ 7,194 For the year ended December 31, 2015, the average effective interest rate was 6.89%. The indebtedness evidenced by the notes, including principal and interest, is unsecured and subordinate and junior in right of the Company’s payments to general and secured creditors and depositors of its wholly owned subsidiary, HomeTown Bank. The notes are redeemable, without penalty, on or after December 30, 2020 and, in certain limited circumstances, prior to that date. The notes limit the Company from declaring or paying any dividend, or making any distribution on capital stock or other equity securities of any kind of the Company if the Company is not “well capitalized” for regulatory purposes, immediately prior to the declaration of such dividend or distribution, except for dividends payable solely in shares of common stock of the Company. |
Note 10 - Other Borrowings
Note 10 - Other Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Short-term Debt [Text Block] | Note 10 . Other Borrowings Other borrowings consist of the following at December 31, 2015 and 2014: (Dollars In Thousands) 2015 2014 Securities sold under agreements to repurchase $ 759 $ 185 Warehouse line of credit 1,602 237 $ 2,361 $ 422 Weighted average interest rate at December 31 2.25 % 1.93 % Securities sold under agreements to repurchase are secured transactions with customers and generally mature the day following the day sold. Short-term borrowings may also include federal funds purchased, which are unsecured overnight borrowings from other financial institutions. The warehouse line of credit is a short-term revolving credit facility used to fund mortgage loans originations until the underlying loan is sold. The amount borrowed on the warehouse line of credit was $1.6 million at year end 2015 at a rate of LIBOR plus 2.25% with a LIBOR floor of 1.00%. The Company also has an $8 million guidance line of credit to borrow against securities. The limit on this line is 15% of assets. In addition, the Company had $18.5 million of fed funds lines of credit available at year-end 2015. At December 31, 2015and 2014, there were no advances on the fed funds or guidance lines. |
Note 11 - Fair Value Measuremen
Note 11 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 1 1 . Fair Value Measurements The Company uses a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: Level 1 - Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 - Valuation is based on observable inputs, including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 - Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the consolidated financial statements: Securities available for sale: The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014: (Dollars In Thousands) Carrying value at December 31, 2015 Description Balance as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: U.S. Government agency securities $ 26,436 $ – $ 26,436 $ – Mortgaged-backed securities 8,773 – 8,773 – Municipal securities 17,335 – 17,335 – (Dollars In Thousands) Carrying value at December 31, 2014 Description Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: U.S. Government agency securities $ 26,965 $ – $ 26,965 $ – Mortgaged-backed securities 9,739 – 9,739 – Municipal securities 17,899 – 17,899 – Certain assets are measured at fair value on a nonrecurring basis in accordance with generally accepted accounting principles (GAAP). Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the consolidated financial statements: Impaired Loans: Loans held for sale: Other Real Estate Owned (OREO) The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2015 and 2014. (Dollars In Thousands) Carrying value at December 31, 2015 Description Balance as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans, net of valuation allowance $ 110 $ – $ – $ 110 Loans held for sale 1,643 – 1,643 – Other real estate owned 5,237 – 1,300 3,937 (Dollars In Thousands) Carrying value at December 31, 2014 Description Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans, net of valuation allowance $ – $ – $ – $ – Loans held for sale 242 – 242 – Other real estate owned 6,986 – 3,255 3,731 At December 31, 2015 and December 31, 2014, the Company did not have any liabilities measured at fair value on a nonrecurring basis. The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2015: (Dollars In Thousands) Quantitative information about Level 3 Fair Value Measurements for December 31, 2015 Assets Fair Value Valuation Technique(s) Unobservable input Range (Weighted Average) Impaired loans $ 110 Discounted appraised value Selling cost 0% - 0% (0%) Discount for lack of marketability and age of appraisal 94.5% - 94.5% (94.5%) Other real estate owned $ 1,735 Discounted appraised value Selling cost 6% - 6% (6%) Discount for lack of marketability and age of appraisal 4% - 9% (8%) $ 2,202 Internal evaluations Internal evaluations 4% - 39% (21%) The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2014: (Dollars In Thousands) Quantitative information about Level 3 Fair Value Measurements for December 31, 2014 Assets Fair Value Valuation Technique(s) Unobservable input Range (Weighted Average) Impaired loans $ – Discounted appraised value Selling cost 6% - 6% (6%) Discount for lack of marketability and age of appraisal 94% - 94% (94%) Other real estate owned $ 1,458 Discounted appraised value Selling cost 6% - 6% (6%) Discount for lack of marketability and age of appraisal 4% - 4% (4%) $ 2,273 Internal evaluations Internal evaluations 0% - 33% (11%) The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Cash and due from banks: The carrying amounts reported in the consolidated balance sheet for cash on hand and amounts due from correspondent banks approximate their fair values. The fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates of deposit to a schedule of contractual maturities on such time deposits. Federal funds sold: Federal funds sold consist of overnight loans to other financial institutions and mature within one to three days. Management believes the carrying value of federal funds sold approximates estimated market value. Securities available for sale: Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third-party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). Restricted equity securities: For these restricted equity securities, the carrying amount is a reasonable estimate of fair value based on the redemption provisions of the related securities. Loans held for sale: The carrying value of these loans approximates the fair value. These loans close in the name of the bank’s joint venture subsidiary HomeTown Residential Mortgage, LLC, but are generally sold within a two-week period. Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts. The fair values for other loans are estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Bank owned life insurance: The cash values of these policies are estimates using information provided by insurance carriers. The policies are carried at their cash surrender value, which approximates fair value. Deposit liabilities: The fair values disclosed for demand and savings deposits are, by definition, equal to the amount payable on demand at the reporting date. The fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates of deposit to a schedule of contractual maturities on such time deposits. Short-term borrowings: The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings maturing within 30 days approximate their fair values. FHLB borrowings: The fair values for FHLB borrowings are estimated using a discounted cash flow calculation that applies interest rates currently being offered on FHLB borrowings to the contractual maturities on such FHLB borrowings. Subordinated notes: The fair value of the subordinated notes is estimated using a discounted cash flow calculation that applies current incremental borrowing rates for similar types of borrowing arrangements. Accrued interest: The carrying amount of accrued interest receivable and payable approximates fair value. Off-balance sheet financial instruments: The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements. At December 31, 2015 and 2014, the fair value of loan commitments and standby letters of credit was deemed to be immaterial. The carrying amounts and approximate fair values of the Company's financial instruments are as follows at December 31, 2015: (Dollars In Thousands) Fair value at December 31, 2015 Description Carrying value as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Approximate Fair Values Financial assets Cash and due from banks $ 28,745 $ 26,995 $ 1,767 $ – $ 28,762 Federal funds sold 1,329 1,329 – – 1,329 Securities available for sale 52,544 – 52,544 – 52,544 Restricted equity securities 2,535 – 2,535 – 2,535 Loans held for sale 1,643 – 1,643 – 1,643 Loans, net 364,060 – – 362,440 362,440 Bank owned life insurance 6,285 – 6,285 – 6,285 Accrued income 2,057 – 2,057 – 2,057 Financial liabilities Total deposits 399,546 – 400,117 – 400,117 FHLB borrowings 22,000 – 22,191 – 22,191 Subordinated notes 7,194 – 7,354 – 7,354 Other borrowings 2,361 – 2,361 – 2,361 Accrued interest payable 372 – 372 – 372 The carrying amounts and approximate fair values of the Company's financial instruments are as follows at December 31, 2014: (Dollars In Thousands) Fair value at December 31, 2014 Description Carrying value as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Approximate Fair Values Financial assets Cash and due from banks $ 13,795 $ 11,794 $ 2,012 $ – $ 13,806 Federal funds sold 649 649 – – 649 Securities available for sale 54,603 – 54,603 – 54,603 Restricted equity securities 2,476 – 2,476 – 2,476 Loans held for sale 242 – 242 – 242 Loans, net 328,347 – – 332,167 332,167 Bank owned life insurance 3,622 – 3,622 – 3,622 Accrued income 1,924 – 1,924 – 1,924 Financial liabilities Total deposits 362,595 – 350,418 – 350,418 FHLB borrowings 20,000 – 20,356 – 20,356 Other borrowings 422 – 422 – 422 Accrued interest payable 272 – 272 – 272 |
Note 12 - Earnings Per Common S
Note 12 - Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 1 2 . Earnings per Common Share The following tables show the weighted average number of shares used in computing earnings per common share and the effect on weighted average number of shares of diluted potential common stock. Potential dilutive common stock had no effect on income available to common shareholders. For the Years Ended December 31, 201 5 201 4 Dollars In Thousands, except share and per share data Weighted Average Common Share s Outstanding Net Income Available to Common Shareholders Per Share Amount Weighted Average Common Share s Outstanding Net Income Available to Common Shareholders Per Share Amount Earnings per common share, basic 3,300,440 $ 2,714 $ 0.82 3,284,870 $ 2,575 $ 0.78 Series C Preferred Stock Dividends 840 840 Effect of dilutive securities: Convertible preferred stock 2,234,740 − (0.18 ) 2,240,000 − (0.16 ) Earnings per common share, diluted 5,535,180 $ 3,554 $ 0.64 5,524,870 $ 3,415 $ 0.62 At December 31, 2015 and 2014, stock options to purchase 546,460 and 549,560 shares, respectively, were outstanding. These options were not included in the calculation of diluted weighted average shares as their impact would be antidilutive. Non-vested restricted shares were included in weighted average common shares outstanding for computing basic earnings per share, as the holder has voting rights and would share in a dividends during the vesting period. |
Note 13 - Stock Based Compensat
Note 13 - Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 1 3 . Stock Based Compensation The Company recorded stock based compensation expense of $137 thousand and $58 thousand for the years ended December 31, 2015 and 2014, respectively. The Company has a 2005 Stock Option Plan (the Plan) pursuant to which the Board of Directors may grant stock options to directors, officers and employees. Under the fair value recognition provisions of relevant accounting guidance, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. The Company uses the Black-Scholes option pricing model to determine the fair value of stock options. The fair value of the stock based payment awards is affected by the price of our stock and a number of financial assumptions and variables. These variables include the risk free interest rate, expected dividend rate, expected stock price volatility and the expected life of the options. No stock options were granted during 2015. On December 18, 2014, the Board of Directors granted 165 thousand shares which are vesting over a five-year period. Financial assumptions and variables used to determine the fair value of these stock options were: risk free interest rate of 2.01%, an expected term of 7.5 years, an expected stock price volatility of 26% and a dividend rate of 0%. Compensation expense is charged to income ratably over the vesting period and was $75 thousand and $2 thousand in 2015 and 2014, respectively. As of December 31, 2015, there was $301 thousand of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a period of four years. All previously issued options were fully vested at the end of 2012, resulting in no compensation expense being recorded in 2015 or 2014. A summary of option activity under the 2005 stock option plan during the year ended December 31, 2015 is as follows: Options Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value (1) Weighted Average Contractual Term (years) Balance at December 31, 2014 549,560 $ 8.61 Granted – – Exercised – – Forfeited (3,100 ) 7.76 Balance at December 31, 2015 546,460 $ 8.62 $ – 3.06 Exercisable at December 31, 2015 437,793 $ 9.04 $ – 1.59 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. In 2009, the Board of Directors authorized 132,000 shares of common stock for issuance under the Restricted Stock Plan. The plan provides for restricted stock awards to key employees. Restricted shares awarded to employees generally vest over a five-year period and compensation expense is charged to income ratably over the vesting period and was $62 thousand in 2015 and $56 thousand in 2014. Compensation is accounted for using the fair market value of the Company’s common stock on the date the restricted shares are awarded. The weighted-average grant date fair value of restricted stock granted in 2015 was $7.91 compared to $6.25 in 2014. The Company granted 10,969 and 17,268 shares of restricted stock under the plan in 2015 and 2014, respectively. As of December 31, 2015, there was $184 thousand of total unrecognized compensation cost related to restricted stock granted under the Plan. The cost is expected to be recognized through 2020. A summary of the activity for restricted stock awards for the periods indicated is presented below: 2015 2014 Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Nonvested at beginning of year 37,727 $ 5.56 27,846 $ 5.05 Granted 10,969 7.91 17,268 6.25 Vested (10,848 ) 5.56 (7,387 ) 5.23 Cancelled – – – – Nonvested at end of year 37,848 $ 6.24 37,727 $ 5.56 |
Note 14 - Salary Continuation P
Note 14 - Salary Continuation Plan | 12 Months Ended |
Dec. 31, 2015 | |
Salary Continuation Plan [Abstract] | |
Salary Continuation Plan [Text Block] | Note 1 4 . Salary Continuation Plan The Company has a Salary Continuation Plan for certain key officers. The plan provides the participating officers with supplemental retirement income. The Supplemental Executive Retirement Plan (the “SERP”) provides lifetime payments equal to 20% of a participant’s average annual base salary for the five years immediately prior to retirement. There is an incentive formula with an additional benefit of 20% of a participant’s average annual base salary for the five years immediately prior to retirement if performance targets set by the Board of Directors are met. The SERP contains provisions for disability and survivor benefits, a benefits vesting schedule based on age attained and automatic full vesting in the event of a change in control of the Company. During 2015, the SERP was expanded to include all executive managers. Deferred compensation accrued under the SERP totaled $315 thousand and $129 thousand at the end of 2015 and 2014, respectively. The funding mechanism for the plan is Bank Owned Life Insurance policies on the lives of the participants. |
Note 15. Employee Benefit Plan
Note 15. Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 1 5 . Employee Benefit Plan The Company adopted a profit sharing plan pursuant to Section 401(k) of the Internal Revenue Code. The plan covers substantially all employees. Participants may contribute a percentage of compensation, subject to a maximum allowed under the Code. The Company makes non-discretionary matching contributions of 100% of the employee’s deferral up to 3% of compensation and matches 50% of the employee’s next 3% deferral. In addition, the Company may make additional contributions at the discretion of the Board of Directors. The Company’s matching contributions were $209 thousand for the years ended December 31, 2015 and 2014. |
Note 16 - Income Taxes
Note 16 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 1 6 . Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and the Commonwealth of Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2012. The current and deferred components of income tax expense for the periods ended December 31, 2015 and 2014 are as follows: (Dollars In Thousands) 2015 2014 Current $ 1,514 $ 731 Deferred 81 856 Income tax expense $ 1,595 $ 1,587 Total income tax expense differed from the “expected” amount computed by applying the U.S. Federal income tax rate of 34 percent to income before income taxes as a result of the following. (Dollars In Thousands) 2015 2014 Tax at statutory federal rate $ 1,770 $ 1,701 Tax-exempt interest income (196 ) (136 ) Cash surrender value of life insurance (55 ) (35 ) Incentive stock options 47 19 Other 29 38 Income tax expense $ 1,595 $ 1,587 Deferred Income Tax Analysis The significant components of net deferred taxes at December 31, 2015 and 2014 are summarized as follows: (Dollars In Thousands) 2015 2014 Deferred tax assets Pre-opening expenses $ 78 $ 94 Allowance for loan losses 518 513 Stock-based compensation 236 236 Deferred compensation 107 44 Other real estate expenses 143 175 Nonaccrual loan interest 11 14 Deferred tax asset 1,093 1,076 Deferred tax liabilities Property and equipment 327 360 Unrealized gain on securities available for sale 204 235 Deferred loan fees 821 721 Deferred tax liability 1,352 1,316 Net deferred tax liability $ (259 ) $ (240 ) |
Note 17 - Commitments and Conti
Note 17 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 1 7 . Commitments and Contingencies Litigation In the normal course of business, the Company becomes involved in litigation arising from the banking, financial and other activities it conducts. Management, after consultation with legal counsel, does not anticipate that the ultimate liability, if any, arising from these matters will have a material effect on the Company’s financial condition, operating results or liquidity. Financial Instruments with Off-Balance-Sheet Risk The Company is party to credit related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, credit risk in excess of the amount recognized in the consolidated balance sheet. The Company’s exposure to credit loss, in the event of nonperformance by the other party to the financial instrument, for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. A summary of the Company’s commitments at December 31, 2015 and 2014 is as follows (dollars in thousands): (Dollars In Thousands) 2015 2014 Commitments to extend credit $ 21,326 $ 21,137 Unfunded commitments under lines of credit 64,111 55,280 Standby letters of credit 5,264 5,563 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate and income-producing commercial properties. Unfunded commitments under commercial lines-of-credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines-of-credit may or may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held varies as specified above and is required in instances which the Company deems necessary. The Company is required to maintain certain required reserve balances with the Federal Reserve Bank. At December 31, 2015 and 2014, these reserve balances amounted to $3.9 million and $3.7 million, respectively. The Company from time to time may have cash and cash equivalents on deposit with financial institutions that exceed federally insured limits. Balances in excess of FDIC insured amounts totaled $3.8 million and $4.1 million at December 31, 2015 and 2014, respectively. Purchase Obligation On November 1, 2014, the Company entered into a marketing agreement involving naming, advertising, and sponsorship rights. The agreement was for three years, with an option for an additional two years. In relation to this agreement, the Company expensed $47.8 thousand and $9.5 thousand in 2015 and 2014, respectively. The agreement obligates the Company to pay $52.8 thousand in 2016, and $47.9 thousand in 2017 for these rights. |
Note 18 - Regulatory Restrictio
Note 18 - Regulatory Restrictions | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 1 8 . Regulatory Restrictions Dividends The Company, as a Virginia banking corporation, may pay dividends only out of its retained earnings. However, regulatory authorities may limit payment of dividends by any company when it is determined that such a limitation is in the public interest and is necessary to ensure financial soundness of the Company. At December 31, 2015, there were $443 thousand in retained earnings available from which to pay dividends to common stockholders. Capital Requirements Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in January 1, 2019. As part of the new requirements, the Common Equity Tier 1 Capital is calculated and utilized in the assessment of capital for all institutions. Capital amounts and ratios for December 31, 2014 were calculated using the Basel I rules, which were effective until January 1, 2015. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year end 2015 and 2014, the most recent regulatory notifications categorized the bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve Board’s Small Bank Holding Company Policy statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. In July 2013, the Federal Reserve Bank issued revised final rules that make technical changes to its market risk capital rules to align it with the Basel III regulatory capital framework and meet certain requirements of the Dodd-Frank Act. The final new capital rules require the Company to comply with the following new minimum capital ratios, effective January 1, 2015: (1) a new common equity Tier 1 capital ratio of 4.5% of risk-weighted assets; (2) a Tier 1 capital ratio of 6% of risk-weighted assets (increased from the current requirement of 4%); (3) a total capital ratio of 8% of risk-weighted assets (unchanged from current requirement); and (4) a leverage ratio of 4% of total assets. The rule introduces the requirement of a new 2.5% capital conservation buffer, to be phased in beginning on January 1, 2016, and ending on January 1, 2019. Banking organizations without other supervisory issues that wish to distribute capital freely, such as in the payment of dividends for example, must maintain the new capital conservation buffer. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier I common equity, and Tier I capital to risk-weighted assets, and of Tier I capital to average assets, as all those terms are defined in the applicable regulations. As of December 31, 2015, management believes the Bank met all capital adequacy requirements to which it was subject. The Bank’s actual capital amounts and ratios are also presented in the following tables: HomeTown Bank December 31, 2015 Actual Minimum Capital Requirement Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (in thousands except for percentages) Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) $ 54,890 13.80 % $ 31,822 8.00 % $ 39,778 10.00 % Tier I Common Equity (to Risk-Weighted Assets) $ 51,556 12.96 % $ 17,900 4.50 % $ 25,855 6.50 % Tier I Capital (to Risk-Weighted Assets) $ 51,592 12.97 % $ 23,867 6.00 % $ 31,822 8.00 % Tier I Capital (to Average Assets) $ 51,592 10.83 % $ 19,053 4.00 % $ 23,816 5.00 % HomeTown Bank December 31, 2014 Actual Minimum Capital Requirement Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (in thousands except for percentages) Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) $ 45,695 13.00 % $ 28,125 8.00 % $ 35,157 10.0 % Tier I Common Equity (to Risk-Weighted Assets) NA NA NA NA NA NA Tier I Capital (to Risk-Weighted Assets) $ 42,363 12.05 % $ 14,063 4.00 % $ 21,094 6.0 % Tier I Capital (to Average Assets) $ 42,363 10.00 % $ 16,952 4.00 % $ 21,190 5.0 % |
Note 19 - Transactions with Rel
Note 19 - Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 1 9 . Transactions with Related Parties The Company has entered into transactions with its directors, significant shareholders and their affiliates (related parties). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. Aggregate loan transactions with related parties were as follows: (Dollars In Thousands) 2015 2014 Balance, beginning $ 8,048 $ 8,280 New loans 3,116 3,859 Repayments (4,040 ) (4,091 ) Balance, ending $ 7,124 $ 8,048 Aggregate deposit balances with related parties at December 31, 2015 and 2014 were $16.3 million and $6.4 million, respectively. |
Note 20 - Capital Transactions
Note 20 - Capital Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Capital Transactions [Abstract] | |
Capital Transactions [Text Block] | Note 20 . Capital Transactions On June 28, 2013, HomeTown Bankshares Corporation completed a $14,000,000 private placement of its convertible preferred stock. Pursuant to the terms of the Private Placement Memorandum, dated April 17, 2013 and amended thereafter, the Company sold 14,000 shares of its 6.0% Series C Non-Cumulative Perpetual Convertible Preferred Stock at a price of $1,000 per share. The convertible preferred stock pays quarterly dividends equivalent to six percent (6.0%) per annum, and is convertible into shares of common stock of the Company based on a conversion price of $6.25 per share, subject to adjustment. The Company paid $840 thousand in dividends on Series C preferred stock in 2015 and 2014, respectively. For the year 2015, 400 shares of preferred stock were converted to 64,000 shares of common stock. |
Note 21 - Reclassifications Out
Note 21 - Reclassifications Out of Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 21 . Reclassifications Out of Other Comprehensive Income Items not reclassified in their entirety to net income for the years ended December 31, 2015 and 2014 are as follows: Details about Other Comprehensive Components Amounts Reclassified from Other Comprehensive Income for the Years Ended December 31, Affected Line Item in the Statement Where Net Income is Presented (Dollars In Thousands) 201 5 201 4 Available for sale securities Realized gains on sales of securities held for sale during the period $ 52 $ 128 Gains on sales of investment securities Tax expense related to realized gains on securities sold 18 44 Income tax expense $ 34 $ 84 Net income |
Note 22 - Condensed Parent Comp
Note 22 - Condensed Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Note 22 . Condensed Parent Company Financial Information Financial information pertaining only to HomeTown Bankshares Corporation follows. The parent company was formed on September 4, 2009. CONDENSED BALANCE SHEETS Dollars In Thousands December 31, 201 5 December 31, 2014 Assets Cash and due from banks $ 1,576 $ 408 Investment in bank subsidiary 51,951 42,817 Other assets 7 — Total assets $ 53,534 $ 43,225 Liabilities and Stockholders’ Equity Accrued interest payable $ 18 $ — Other liabilities 305 — Subordinated notes 7,194 — Total liabilities 7,517 — Stockholders’ equity: Total stockholders’ equity 46,017 43,225 Total liabilities and stockholders’ equity $ 53,534 $ 43,225 CONDENSED STATEMENTS OF INCOME Dollars In Thousands For the year ended December 31, 201 5 For the year ended December 31, 2014 Dividend from Bank subsidiary $ 630 $ — Income 630 — Interest expense 19 — Other expenses 181 143 Expenses 200 143 Net income ( loss ) before income taxes 430 (143 ) Income tax benefit 68 48 Net income ( loss ) before equity in undistributed net income of subsidiary 498 (95 ) Undistributed net income of subsidiary 3,056 3,510 Net Income $ 3,554 $ 3,415 CONDENSED STATEMENTS OF CASH FLOWS Dollars In Thousands For the year ended December 31, 201 5 For the year ended December 31, 2014 Cash flows from operating activities: Net income $ 3,554 $ 3,415 Equity in undistributed net income of subsidiary bank (3,056 ) (3,510 ) Amortization expense on subordinated notes 1 — Increase in other assets (7 ) — Increase in interest payable 18 — Increase in other liabilities 305 (9 ) Net cash flows provided by (used in) operating activities 815 (104 ) Cash flows from investing activities: Capital contribution to bank subsidiary (6,000 ) — Net cash flows used in investing activities (6,000 ) — Cash flows from financing activities: Issuance of subordinated notes 7,193 — Preferred dividend payment (840 ) (840 ) Net cash flows provided by (used in) financing activities 6,353 (840 ) Net increase (decrease) in cash and cash equivalents 1,168 (944 ) Cash and cash equivalents, beginning 408 1,352 Cash and cash equivalents, ending $ 1,576 $ 408 |
Note 23 - Subsequent Events
Note 23 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 23 . Subsequent Events On February 25, 2016, the Company’s Board of Directors declared a quarterly cash dividend in the amount of $15.00 per Series C convertible preferred share, payable on March 15, 2016 to preferred shareholders of record February 29, 2016. On February 26, 2016, the Bank added $473 thousand to other real estate owned. At December 31, 2015, the related loan was included in “Current” in Note 3 and “Pass in Note 4. The borrower was an independent church and the membership voted to disband in the first quarter of 2016, prompting the Bank to negotiate a deed-in-lieu of foreclosure. Additional collateral in the form of an assigned note receivable was received as part of the negotiation. No loss was recognized when the loan was transferred to other real estate owned. In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date of this filing. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of HomeTown Bankshares Corporation and its wholly-owned subsidiary HomeTown Bank. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of other real estate owned, and the valuation of deferred tax assets. Substantially all of the Company’s loan portfolio consists of loans in its market area. Accordingly, the ultimate collectability of a substantial portion of the Company’s loan portfolio and the recovery of a substantial portion of the carrying amount of foreclosed real estate (as applicable) is susceptible to changes in local market conditions. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and amounts due from correspondent banks. For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as those amounts included in the consolidated balance sheet caption “cash and due from banks.” |
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Securities Investments in debt and equity securities with readily determinable fair values are classified as either held to maturity, available for sale, or trading, based on management’s intent. Currently, all of the Company’s investment securities are classified as available for sale. Available for sale securities are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income. Gains or losses are recognized in earnings on the trade date using the amortized cost of the specific security sold. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either (i) the Company intends to sell the security or (ii) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not likely that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. The Company regularly reviews each investment security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. |
Restricted Equity Securities [Policy Text Block] | Restricted Equity Securities As members of the Federal Reserve Bank (FRB) and the FHLB, the Company is required to maintain certain minimum investments in the capital stock of the FRB and FHLB. The Company’s investment in these securities is recorded at cost, based on the redemption provisions of the FRB and FHLB. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal amount adjusted for any charge-offs, allowance for loan losses and deferred fees or costs on originated loans. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield of the related loan. Interest is accrued and credited to income based on the principal amount outstanding. The accrual of interest on impaired loans for all classes is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest for the current year is reversed. Interest income is subsequently recognized only to the extent cash payments are received. When facts and circumstances indicate the borrower has regained the ability to meet the required payments, the loan is returned to accrual status. Past-due status of loans is determined based on contractual terms. The loan portfolio is comprised of the following classes. ● Residential real estate construction loans carry risks that the home will not be finished according to schedule, will not be finished according to the budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor may be unable to finish the construction project as planned because of financial pressure unrelated to the project. ● Land acquisition and development loans and commercial construction loans carry risks that the project will not be finished according to schedule, will not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Land acquisition and development loans and commercial construction loans also bear the risk that the developer, in the case of land acquisition and development loans, or the general contractor, in the case of commercial construction loans, may be unable to finish the development or construction project as planned because of financial pressure unrelated to the project. ● Residential real estate loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Commercial real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. ● Commercial, industrial and agricultural loans carry risks associated with the successful operation of a business. In addition, there is risk associated with the value of the collateral which may depreciate over time and cannot be appraised with as much precision. ● Equity lines of credit carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. ● Consumer loans carry risks associated with the continued creditworthiness of the borrower and the value of the collateral (e.g., rapidly depreciating assets such as automobiles), or lack thereof. Consumer loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell, if the loan is collateral dependent. TDRs (Troubled Debt Restructurings) occur when the Company agrees to significantly modify the original terms of a loan due to the deterioration in the financial condition of the borrower. TDRs are considered impaired loans. Upon designation as a TDR, the Company evaluates the borrower’s payment history, past-due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Company concludes that the borrower is able to make such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on nonaccrual status at the time of the TDR, the loan will remain on nonaccrual status following the modification and may be returned to accrual status based on a record of making payments as scheduled for a period of six consecutive months. |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Consumer loans are charged off when they become 120 days past due. Non-consumer loans are charged off when the loan becomes 180 days past due unless the loan is well secured and in the process of collection. Borrowers that are in bankruptcy are charged off unless the debt has been reaffirmed and is well secured and recovery is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired, and is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal will be ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions when appropriate. The general component covers non-classified, or performing, loans and those loans classified as substandard or special mention that are not impaired. The general component is based on historical loss experience adjusted for qualitative factors, such as current economic conditions, including current home sales and foreclosures, unemployment rates and retail sales. The characteristics of the loan ratings are as follows: ● Pass rated loans are to persons or business entities with an acceptable financial condition, appropriate collateral margins, appropriate cash flow to service the existing loan, and an appropriate leverage ratio. The borrower has paid all obligations as agreed and it is expected that this type of payment history will continue. When necessary, acceptable personal guarantors support the loan. ● Special mention loans have a specific defined weakness in the borrower’s operations and the borrower’s ability to generate positive cash flow on a sustained basis. The borrower’s recent payment history may be characterized by late payments. The Company’s risk exposure is mitigated by collateral supporting the loan. The collateral is considered to be well-margined, well maintained, accessible and readily marketable. ● Substandard loans are considered to have specific and well-defined weaknesses that jeopardize the viability of the Company’s credit extension. The payment history for the loan may have been inconsistent, and the expected or projected primary repayment source may be inadequate to service the loan. The estimated net liquidation value of the collateral pledged and/or ability of the personal guarantor(s) to pay the loan may not adequately protect the Company. There is a distinct possibility that the Company will sustain some loss if the deficiencies associated with the loan are not corrected in the near term. A substandard loan would not automatically meet our definition of impaired unless the loan is significantly past due and the borrower’s performance and financial condition provide evidence that it is probable that the Company will be unable to collect all amounts due. ● Substandard nonaccrual loans have the same characteristics as substandard loans; however, they have a non-accrual classification and are considered impaired. ● Doubtful rated loans have all the weaknesses inherent in a loan that is classified substandard but with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high. ● Loss rated loans are not considered collectible under normal circumstances, and there is no realistic expectation for any future payment on the loan. Loss rated loans are fully charged off. |
Loans and Leases Receivable, Origination Fees, Discounts or Premiums, and Direct Costs to Acquire Loans Policy [Policy Text Block] | Loan Fees and Costs Loan origination and commitment fees and certain direct loan origination costs charged by the Bank are deferred and the net amount amortized as an adjustment of the related loan’s yield. The Bank is amortizing these net amounts over the contractual life of the related loans or, in the case of demand loans, over the estimated life. Net fees related to standby letters of credit are recognized over the commitment period. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Land is carried at cost. Buildings, equipment, and leasehold improvements are carried at cost, less accumulated depreciation and amortization. Depreciation is provided over the estimated useful lives of the respective assets on the straight-line basis. Estimated useful lives range from ten to forty years for buildings and from three to ten years for equipment, furniture, and fixtures. Leasehold improvements are amortized over a term which includes the remaining lease term and probable renewal periods on a straight-line basis. Maintenance and repairs are charged to expense as incurred and major improvements are capitalized. |
Real Estate, Policy [Policy Text Block] | Foreclosed Properties Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less anticipated cost to sell at the date of foreclosure establishing a new cost basis. After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Changes in the valuation allowance are included in the income statement in the line “Gains, losses on sales and writedowns of other real estate owned, net.” |
Bank Owned Life Insurance [Policy Text Block] | Bank Owned Life Insurance The Company purchased life insurance policies during 2013 and 2015 on certain key executives. These policies are recorded at their cash surrender value. Increases in the cash surrender value of the life insurance contracts are included in noninterest income in the consolidated income statement caption “other income.” |
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity, or the ability to unilaterally cause the transferee to return specific assets. |
Advertising Costs, Policy [Policy Text Block] | Advertising Expense The Company expenses advertising and marketing costs as they are incurred. |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income tax assets and liabilities are determined using the liability method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the consolidated statement of income. There are no unrecognized tax benefits as of December 31, 2015 and 2014. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period, after giving retroactive effect to stock splits and dividends. Nonvested restricted shares are included in basic earnings per share because of dividend participation rights. Diluted earnings per common share is similar to the computation of basic earnings per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of those potential common shares. Potential common shares that may be issued by the Company relate to the convertible preferred stock outstanding and the outstanding stock options. The preferred stock is convertible into shares of common stock of the Company based on a conversion price of $6.25 per share, subject to adjustment. The potential dilutive effect of the outstanding stock options is determined using the treasury stock method. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income reflects the change in the Company’s equity during the year arising from transactions and events other than investment by and distributions to stockholders. It consists of net income plus certain other changes in assets and liabilities that are reported as separate components of stockholders’ equity rather than as income or expense. These changes for the Company relate solely to unrealized gains and losses on securities available for sale. |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distress sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation techniques or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under lines of credit arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Plan The 2005 Stock Option Plan was approved by stockholders on April 20, 2006, which authorized 550,000 shares of common stock to be used in the granting of incentive options to employees and directors. This is the first stock incentive plan adopted by the Company. Under the plan, the option price cannot be less than the fair market value of the stock on the date granted. An option’s maximum term is ten years from the date of grant. Options granted under the plan may be subject to a vesting schedule. The Company accounts for the stock option plan in accordance with applicable accounting guidance. Under the fair value recognition provisions of this guidance, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. In 2009, the Board of Directors authorized 132,000 shares of common stock for issuance under the Restricted Stock Plan. The plan provides for restricted stock awards to key employees. Restricted shares awarded to employees generally vest over a five-year period and compensation expense is charged to income ratably over the vesting period. Compensation is accounted for using the fair market value of the Company’s common stock on the date the restricted shares are awarded. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718),” should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company does not expect the adoption of ASU 2014-12 to have a material impact on its consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its consolidated financial statements. In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” The amendments in ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The Company does not expect the adoption of ASU 2014-16 to have a material impact on its consolidated financial statements. In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification™ and improves current GAAP by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE), and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The Company does not expect the adoption of ASU 2015-02 to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU 2015-03 to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this ASU provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The Company does not expect the adoption of ASU 2015-05 to have a material impact on its consolidated financial statements. In May 2015, the FASB issued ASU No. 2015-08, “Business Combinations (Topic 805): Pushdown Accounting – Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115.” The amendments in ASU 2015-08 amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115, Topic 5: Miscellaneous Accounting, regarding various pushdown accounting issues, and did not have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-12, “Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) – 1. Fully Benefit-Responsive Investment Contracts, 2. Plan Investment Disclosures, and 3. Measurement Date Practical Expedient.” The amendments within this ASU are in 3 parts. Among other things, Part 1 amendments designate contract value as the only required measure for fully benefit-responsive investment contracts; Part II amendments eliminate the requirement that plans disclose: (a) individual investments that represent 5 percent or more of net assets available for benefits; and (b) the net appreciation or depreciation for investments by general type requirements for both participant-directed investments and nonparticipant-directed investments. Part III amendments provide a practical expedient to permit plans to measure investments and investment-related accounts (e.g., a liability for a pending trade with a broker) as of a month-end date that is closest to the plan’s fiscal year-end, when the fiscal period does not coincide with month-end. The amendments in Parts 1 and 2 of this ASU are effective on a retrospective basis and Part 3 is effective on a prospective basis, for fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of ASU 2015-12 to have a material impact on its consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date.” The amendments in ASU 2015-14 defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. All other entities may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, including interim reporting periods within that reporting period. All other entities also may apply the guidance in ASU 2014-09 earlier as of an annual reporting period beginning after December 15, 2016, and interim reporting periods within annual reporting periods beginning one year after the annual reporting period in which the entity first applies the guidance in ASU 2014-09. The Company does not expect the adoption of ASU 2015-14 (or ASU 2014-09) to have a material impact on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-15, “Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting).” On April 7, 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. The guidance in ASU 2015-03 (see paragraph 835-30-45-1A) does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff stated that they would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 adds these SEC comments to the "S" section of the Codification. The adoption of ASU 2015-15 did not have a material impact on our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” The amendments in ASU 2015-16 require that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company does not expect the adoption of ASU 2015-16 to have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The amendments in ASU 2016-01, among other things: 1) Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. 2) Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. 3) Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). 4) Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently assessing the impact that ASU 2016-01 will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that ASU 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, “Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting.” Among other things, the amendments in ASU 2016-07, eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early Adoption is permitted. The Company is currently assessing the impact that ASU 2016-07 will have on its consolidated financial statements. |
Note 2 - Investment Securities
Note 2 - Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | (Dollars In Thousands) December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agency securities $ 26,385 $ 242 $ (191 ) $ 26,436 Mortgage-backed securities 8,803 60 (90 ) 8,773 Municipal securities 16,756 594 (15 ) 17,335 $ 51,944 $ 896 $ (296 ) $ 52,544 (Dollars In Thousands) December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agency securities $ 26,812 $ 333 $ (180 ) $ 26,965 Mortgage-backed securities 9,678 125 (64 ) 9,739 Municipal securities 17,423 531 (55 ) 17,899 $ 53,913 $ 989 $ (299 ) $ 54,603 |
Schedule of Unrealized Loss on Investments [Table Text Block] | December 31, 2015 Less than 12 months 12 months or more Total (Dollars In Thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agency securities $ 8,878 $ (106 ) $ 5,275 $ (85 ) $ 14,153 $ (191 ) Mortgage-backed securities 3,447 (32 ) 2,718 (58 ) 6,165 (90 ) Municipal securities 805 (10 ) 526 (5 ) 1,331 (15 ) $ 13,130 $ (148 ) $ 8,519 $ (148 ) $ 21,649 $ (296 ) December 31, 2014 Less than 12 months 12 months or more Total (Dollars In Thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Government agency securities $ 5,568 $ (48 ) $ 7,078 $ (132 ) $ 12,646 $ (180 ) Mortgage-backed securities 742 (6 ) 4,058 (58 ) 4,800 (64 ) Municipal securities 1,625 (20 ) 2,186 (35 ) 3,811 (55 ) $ 7,935 $ (74 ) $ 13,322 $ (225 ) $ 21,257 $ (299 ) |
Investments Classified by Contractual Maturity Date [Table Text Block] | (Dollars In Thousands) Amortized Cost Fair Value Less than one year $ - $ - Over one through five years 1,809 1,825 Over five through ten years 10,363 10,424 Greater than 10 years 39,772 40,295 $ 51,944 $ 52,544 |
Note 3 - Loans Receivable (Tabl
Note 3 - Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (Dollars In Thousands) December 31, 2015 2014 Construction: Residential $ 11,779 $ 10,019 Land acquisition, development & commercial 27,440 23,686 Real Estate: Residential 100,268 86,269 Commercial 140,952 135,070 Commercial, industrial & agricultural 53,012 44,807 Equity lines 26,376 24,330 Consumer 7,531 7,498 Total loans $ 367,358 $ 331,679 Less allowance for loan losses (3,298 ) (3,332 ) Loans, net $ 364,060 $ 328,347 |
Past Due Financing Receivables [Table Text Block] | (Dollars In Thousands) 30-59 Days Past-Due 60-89 Days Past-Due 90 Days or More Past-Due Total Past-Due Current Total Loans Nonaccrual Loans Construction: Residential $ − $ − $ − $ − $ 11,779 $ 11,779 $ − Land acquisition, development & commercial − − 11 11 27,429 27,440 11 Real Estate: Residential 297 − 50 347 99,921 100,268 − Commercial 44 − 792 836 140,116 140,952 368 Commercial, industrial & agricultural 52 84 35 171 52,841 53,012 47 Equity lines 105 − − 105 26,271 26,376 − Consumer − − − − 7,531 7,531 − Total $ 498 $ 84 $ 888 $ 1,470 $ 365,888 $ 367,358 $ 426 (Dollars In Thousands) 30-59 Days Past-Due 60-89 Days Past-Due 90 Days or More P ast-Due Total Past-Due Current Total Loans Nonaccrual Loans Construction: Residential $ – $ – $ – $ – $ 10,019 $ 10,019 $ – Land acquisition, development & commercial – – – – 23,686 23,686 – Real Estate: Residential – 381 261 642 85,627 86,269 475 Commercial – 85 – 85 134,985 135,070 758 Commercial, industrial & agricultural 96 – – 96 44,711 44,807 – Equity lines 105 – – 105 24,225 24,330 – Consumer 10 36 – 46 7,452 7,498 21 Total $ 211 $ 502 $ 261 $ 974 $ 330,705 $ 331,679 $ 1,254 |
Impaired Financing Receivables [Table Text Block] | December 31, 2015 With no related allowance: (Dollars In Thousands) Recorded Investment in Loans Unpaid Principal Balance Related Allowance Average Balance Total Loans Interest Income Recognized Construction: Residential $ − $ − $ – $ − $ − Land acquisition, development & commercial − − – − − Real Estate: Residential 247 247 – 255 13 Commercial 7,451 7,627 – 7,623 291 Commercial, industrial & agricultural 12 12 – 12 − Equity lines − − – − − Consumer − − – − − Total loans with no allowance $ 7,710 $ 7,886 $ – $ 7,890 $ 304 December 31, 2015 With an allowance recorded: (Dollars In Thousands) Recorded Investment in Loans Unpaid Principal Balance Related Allowance Average Balance Total Loans Interest Income Recognized Construction: Residential $ − $ − $ − $ − $ − Land acquisition, development & commercial − − − − − Real Estate: Residential − − − − − Commercial 127 127 17 135 − Commercial, industrial & agricultural − − − − − Equity lines − − − − − Consumer − − − − − Total loans with an allowance $ 127 $ 127 $ 17 $ 135 $ − December 31, 2014 With no related allowance: (Dollars In Thousands) Recorded Investment in Loans Unpaid Principal Balance Related Allowance Average Balance Total Loans Interest Income Recognized Construction: Residential $ – $ – $ – $ – $ – Land acquisition, development & commercial – – – – – Real Estate: Residential 525 700 – 605 12 Commercial 7,507 7,507 – 8,563 289 Commercial, industrial & agricultural – – – – – Equity lines – – – – – Consumer – – – – – Total loans with no allowance $ 8,032 $ 8,207 $ – $ 9,168 $ 301 December 31, 2014 With an allowance recorded: (Dollars In Thousands) Recorded Investment in Loans Unpaid Principal Balance Related Allowance Average Balance Total Loans Interest Income Recognized Construction: Residential $ – $ – $ – $ – $ – Land acquisition, development & commercial – – – – – Real Estate: Residential – – – – – Commercial 141 141 141 153 – Commercial, industrial & agricultural – – – – – Equity lines – – – – – Consumer – – – – – Total loans with an allowance $ 141 $ 141 $ 141 $ 153 $ – |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Loans modified as TDRs For the year ended December 31, 2015 Class of Loan Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (Dollars in Thousands) Construction loans: Residential — $ — $ — Land acquisition, development & commercial — — — Real estate loans: Residential — — — Commercial 1 260 255 Commercial, industrial, agricultural — — 12 Equity lines — — — Consumer — — — Total Loans 1 $ 260 $ 267 Loans modified as TDR s For the year ended December 31, 2014 Class of Loan Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (Dollars in Thousands) Construction loans: Residential — $ — $ — Land acquisition, development & commercial — — — Real estate loans: Residential — — — Commercial 1 1,932 632 Commercial, industrial, agricultural — — — Equity lines — — — Consumer — — — Total Loans 1 $ 1,932 $ 632 |
Note 4 - Allowance for Loan L34
Note 4 - Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | December 31, 201 5 Allowance for loan losses Loans Class of Loan (Dollars in Thousands) Beginning balance Charge- offs Recoveries Provisions Ending balance Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Ending balance Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Construction loans: Residential $ 43 $ − $ − $ 40 $ 83 $ − $ 83 $ 11,779 $ − $ 11,779 Land acquisition, development & commercial 453 − − (266 ) 187 − 187 27,440 − 27,440 Real estate: Residential 833 − 1 213 1,047 − 1,047 100,268 247 100,021 Commercial 1,012 − − (11 ) 1,001 17 984 140,952 7,578 133,374 Commercial, industrial & agricultural 319 − 10 202 531 − 531 53,012 12 53,000 Equity lines 423 − 1 (147 ) 277 − 277 26,376 − 26,376 Consumer 65 (80 ) 34 66 85 − 85 7,531 − 7,531 Unallocated 184 − − (97 ) 87 − 87 − − − Total $ 3,332 $ (80 ) $ 46 $ − $ 3,298 $ 17 $ 3,281 $ 367,358 $ 7,837 $ 359,521 December 31, 2014 Allowance for loan losses Loans Class of Loan (Dollars in Thousands) Beginning balance Charge- offs Recoveries Provisions Ending balance Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Ending balance Ending balance: individually evaluated for impairment Ending balance: collectively evaluated for impairment Construction loans: Residential $ 156 $ − $ − $ (113 ) $ 43 $ − $ 43 $ 10,019 $ − $ 10,019 Land acquisition, development & commercial 872 − − (419 ) 453 − 453 23,686 − 23,686 Real estate: Residential 867 (233 ) 34 165 833 − 833 86,269 525 85,744 Commercial 1,008 − − 4 1,012 141 871 135,070 7,648 127,422 Commercial, industrial & agricultural 327 (55 ) − 47 319 − 319 44,807 − 44,807 Equity lines 385 (136 ) 37 137 423 − 423 24,330 − 24,330 Consumer 63 (40 ) 4 38 65 − 65 7,498 − 7,498 Unallocated 43 − − 141 184 − 184 − − − Total $ 3,721 $ (464 ) $ 75 $ − $ 3,332 $ 141 $ 3,191 $ 331,679 $ 8,173 $ 323,506 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (Dollars In Thousands) Pass Special Mention Substandard Accruing Substandard Nonaccrual Total Construction loans: Residential $ 11,779 $ − $ − $ − $ 11,779 Land acquisition, development & commercial 27,429 − − 11 27,440 Real estate loans: Residential 95,809 4,212 247 − 100,268 Commercial 138,034 1,155 1,395 368 140,952 Commercial, industrial, agricultural 51,801 1,164 − 47 53,012 Equity lines 26,376 − − − 26,376 Consumer 7,523 − 8 − 7,531 Total Loans $ 358,751 $ 6,531 $ 1,650 $ 426 $ 367,358 (Dollars In Thousands) Pass Special Mention Substandard Accruing Substandard Nonaccrual Total Construction loans: Residential $ 10,019 $ − $ − $ − $ 10,019 Land acquisition, development & commercial 23,672 − 14 − 23,686 Real estate loans: Residential 81,409 4,335 50 475 86,269 Commercial 131,087 2,302 923 758 135,070 Commercial, industrial, agricultural 44,248 521 38 − 44,807 Equity lines 24,330 − − − 24,330 Consumer 7,475 − 2 21 7,498 Total Loans $ 322,240 $ 7,158 $ 1,027 $ 1,254 $ 331,679 |
Note 5 - Foreclosed Properties
Note 5 - Foreclosed Properties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Forclosed Properties [Table Text Block] | (Dollars In Thousands) Other Real Estate Owned Valuation Allowance Net Balance at the beginning of the year $ 7,408 $ (422 ) $ 6,986 Additions — — — Writedowns — (346 ) (346 ) Sales (1,751 ) 348 (1,403 ) Balance at the end of the year $ 5,657 $ (420 ) $ 5,237 (Dollars In Thousands) Other Real Estate Owned Valuation Allowance Net Balance at the beginning of the year $ 9,078 $ (935 ) $ 8,143 Additions 1,520 — 1,520 Writedowns — — — Sales (1,618 ) 422 (1,196 ) Transfer to fixed assets (1,572 ) 91 (1,481 ) Balance at the end of the year $ 7,408 $ (422 ) $ 6,986 |
Schedule of Real Estate Properties [Table Text Block] | (Dollars In Thousands) 2015 2014 Residential lots $ 2,520 $ 3,023 Residential development 423 423 Commercial lots 90 1,076 Commercial buildings 2,204 2,464 Total Other Real Estate Owned $ 5,237 $ 6,986 (Dollars In Thousands) 2015 2014 Net (gain) loss on sales $ — $ (10 ) Provision for unrealized losses 346 — Operating expenses 151 224 Total Other Real Estate Owned $ 497 $ 214 |
Note 6 - Property and Equipme36
Note 6 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | (Dollars In Thousands) 2015 2014 Land $ 4,309 $ 4,656 Buildings and improvements 8,611 8,720 Leasehold improvements 2,149 2,149 Furniture and equipment 3,113 3,074 Software 554 487 Construction in process 13 49 Property and equipment, total 18,749 19,135 Less accumulated depreciation and amortization 4,741 4,235 Property and equipment, net $ 14,008 $ 14,900 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | (Dollars In Thousands) 2014 2016 $ 224 2017 168 2018 168 2019 169 2020 169 Thereafter 788 Total $ 1,686 |
Note 7 - Deposits (Tables)
Note 7 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | (Dollars In Thousands) 2015 2016 $ 74,626 2017 41,354 2018 14,024 2019 5,703 2020 3,903 Total $ 139,610 |
Note 8 - Federal Home Loan Ba38
Note 8 - Federal Home Loan Bank Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block] | (Dollars In Thousands) Advance Date Maturity Date Conversion Date Current Rate 2015 2014 September 7, 2007 September 7, 2017 Quarterly 3.690 % $ 4,000 $ 4,000 April 13, 2012 April 13, 2016 1.265 % 12,000 12,000 June 17, 2014 June 17, 2015 0.260 % - 2,000 June 17, 2014 June 17, 2016 0.670 % 2,000 2,000 January 14, 2015 January 16, 2018 1.090 % 4,000 - $ 22,000 $ 20,000 |
Note 9 - Subordinated Notes (Ta
Note 9 - Subordinated Notes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Borrowing [Table Text Block] | (Dollars in Thousands) As of December 31, 2015 Principal Unamortized Debt Issuance Costs Net Subordinated notes $ 7,500 $ 306 $ 7,194 |
Note 10 - Other Borrowings (Tab
Note 10 - Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | (Dollars In Thousands) 2015 2014 Securities sold under agreements to repurchase $ 759 $ 185 Warehouse line of credit 1,602 237 $ 2,361 $ 422 Weighted average interest rate at December 31 2.25 % 1.93 % |
Note 11 - Fair Value Measurem41
Note 11 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | (Dollars In Thousands) Carrying value at December 31, 2015 Description Balance as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: U.S. Government agency securities $ 26,436 $ – $ 26,436 $ – Mortgaged-backed securities 8,773 – 8,773 – Municipal securities 17,335 – 17,335 – (Dollars In Thousands) Carrying value at December 31, 2014 Description Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: U.S. Government agency securities $ 26,965 $ – $ 26,965 $ – Mortgaged-backed securities 9,739 – 9,739 – Municipal securities 17,899 – 17,899 – |
Fair Value Measurements, Nonrecurring [Table Text Block] | (Dollars In Thousands) Carrying value at December 31, 2015 Description Balance as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans, net of valuation allowance $ 110 $ – $ – $ 110 Loans held for sale 1,643 – 1,643 – Other real estate owned 5,237 – 1,300 3,937 (Dollars In Thousands) Carrying value at December 31, 2014 Description Balance as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Impaired loans, net of valuation allowance $ – $ – $ – $ – Loans held for sale 242 – 242 – Other real estate owned 6,986 – 3,255 3,731 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | (Dollars In Thousands) Quantitative information about Level 3 Fair Value Measurements for December 31, 2015 Assets Fair Value Valuation Technique(s) Unobservable input Range (Weighted Average) Impaired loans $ 110 Discounted appraised value Selling cost 0% - 0% (0%) Discount for lack of marketability and age of appraisal 94.5% - 94.5% (94.5%) Other real estate owned $ 1,735 Discounted appraised value Selling cost 6% - 6% (6%) Discount for lack of marketability and age of appraisal 4% - 9% (8%) $ 2,202 Internal evaluations Internal evaluations 4% - 39% (21%) (Dollars In Thousands) Quantitative information about Level 3 Fair Value Measurements for December 31, 2014 Assets Fair Value Valuation Technique(s) Unobservable input Range (Weighted Average) Impaired loans $ – Discounted appraised value Selling cost 6% - 6% (6%) Discount for lack of marketability and age of appraisal 94% - 94% (94%) Other real estate owned $ 1,458 Discounted appraised value Selling cost 6% - 6% (6%) Discount for lack of marketability and age of appraisal 4% - 4% (4%) $ 2,273 Internal evaluations Internal evaluations 0% - 33% (11%) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | (Dollars In Thousands) Fair value at December 31, 2015 Description Carrying value as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Approximate Fair Values Financial assets Cash and due from banks $ 28,745 $ 26,995 $ 1,767 $ – $ 28,762 Federal funds sold 1,329 1,329 – – 1,329 Securities available for sale 52,544 – 52,544 – 52,544 Restricted equity securities 2,535 – 2,535 – 2,535 Loans held for sale 1,643 – 1,643 – 1,643 Loans, net 364,060 – – 362,440 362,440 Bank owned life insurance 6,285 – 6,285 – 6,285 Accrued income 2,057 – 2,057 – 2,057 Financial liabilities Total deposits 399,546 – 400,117 – 400,117 FHLB borrowings 22,000 – 22,191 – 22,191 Subordinated notes 7,194 – 7,354 – 7,354 Other borrowings 2,361 – 2,361 – 2,361 Accrued interest payable 372 – 372 – 372 (Dollars In Thousands) Fair value at December 31, 2014 Description Carrying value as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Approximate Fair Values Financial assets Cash and due from banks $ 13,795 $ 11,794 $ 2,012 $ – $ 13,806 Federal funds sold 649 649 – – 649 Securities available for sale 54,603 – 54,603 – 54,603 Restricted equity securities 2,476 – 2,476 – 2,476 Loans held for sale 242 – 242 – 242 Loans, net 328,347 – – 332,167 332,167 Bank owned life insurance 3,622 – 3,622 – 3,622 Accrued income 1,924 – 1,924 – 1,924 Financial liabilities Total deposits 362,595 – 350,418 – 350,418 FHLB borrowings 20,000 – 20,356 – 20,356 Other borrowings 422 – 422 – 422 Accrued interest payable 272 – 272 – 272 |
Note 12 - Earnings Per Common42
Note 12 - Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Years Ended December 31, 201 5 201 4 Dollars In Thousands, except share and per share data Weighted Average Common Share s Outstanding Net Income Available to Common Shareholders Per Share Amount Weighted Average Common Share s Outstanding Net Income Available to Common Shareholders Per Share Amount Earnings per common share, basic 3,300,440 $ 2,714 $ 0.82 3,284,870 $ 2,575 $ 0.78 Series C Preferred Stock Dividends 840 840 Effect of dilutive securities: Convertible preferred stock 2,234,740 − (0.18 ) 2,240,000 − (0.16 ) Earnings per common share, diluted 5,535,180 $ 3,554 $ 0.64 5,524,870 $ 3,415 $ 0.62 |
Note 13 - Stock Based Compens43
Note 13 - Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value (1) Weighted Average Contractual Term (years) Balance at December 31, 2014 549,560 $ 8.61 Granted – – Exercised – – Forfeited (3,100 ) 7.76 Balance at December 31, 2015 546,460 $ 8.62 $ – 3.06 Exercisable at December 31, 2015 437,793 $ 9.04 $ – 1.59 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | 2015 2014 Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Nonvested at beginning of year 37,727 $ 5.56 27,846 $ 5.05 Granted 10,969 7.91 17,268 6.25 Vested (10,848 ) 5.56 (7,387 ) 5.23 Cancelled – – – – Nonvested at end of year 37,848 $ 6.24 37,727 $ 5.56 |
Note 16 - Income Taxes (Tables)
Note 16 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | (Dollars In Thousands) 2015 2014 Current $ 1,514 $ 731 Deferred 81 856 Income tax expense $ 1,595 $ 1,587 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | (Dollars In Thousands) 2015 2014 Tax at statutory federal rate $ 1,770 $ 1,701 Tax-exempt interest income (196 ) (136 ) Cash surrender value of life insurance (55 ) (35 ) Incentive stock options 47 19 Other 29 38 Income tax expense $ 1,595 $ 1,587 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (Dollars In Thousands) 2015 2014 Deferred tax assets Pre-opening expenses $ 78 $ 94 Allowance for loan losses 518 513 Stock-based compensation 236 236 Deferred compensation 107 44 Other real estate expenses 143 175 Nonaccrual loan interest 11 14 Deferred tax asset 1,093 1,076 Deferred tax liabilities Property and equipment 327 360 Unrealized gain on securities available for sale 204 235 Deferred loan fees 821 721 Deferred tax liability 1,352 1,316 Net deferred tax liability $ (259 ) $ (240 ) |
Note 17 - Commitments and Con45
Note 17 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | (Dollars In Thousands) 2015 2014 Commitments to extend credit $ 21,326 $ 21,137 Unfunded commitments under lines of credit 64,111 55,280 Standby letters of credit 5,264 5,563 |
Note 18 - Regulatory Restrict46
Note 18 - Regulatory Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | HomeTown Bank December 31, 2015 Actual Minimum Capital Requirement Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (in thousands except for percentages) Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) $ 54,890 13.80 % $ 31,822 8.00 % $ 39,778 10.00 % Tier I Common Equity (to Risk-Weighted Assets) $ 51,556 12.96 % $ 17,900 4.50 % $ 25,855 6.50 % Tier I Capital (to Risk-Weighted Assets) $ 51,592 12.97 % $ 23,867 6.00 % $ 31,822 8.00 % Tier I Capital (to Average Assets) $ 51,592 10.83 % $ 19,053 4.00 % $ 23,816 5.00 % HomeTown Bank December 31, 2014 Actual Minimum Capital Requirement Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions (in thousands except for percentages) Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) $ 45,695 13.00 % $ 28,125 8.00 % $ 35,157 10.0 % Tier I Common Equity (to Risk-Weighted Assets) NA NA NA NA NA NA Tier I Capital (to Risk-Weighted Assets) $ 42,363 12.05 % $ 14,063 4.00 % $ 21,094 6.0 % Tier I Capital (to Average Assets) $ 42,363 10.00 % $ 16,952 4.00 % $ 21,190 5.0 % |
Note 19 - Transactions with R47
Note 19 - Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | (Dollars In Thousands) 2015 2014 Balance, beginning $ 8,048 $ 8,280 New loans 3,116 3,859 Repayments (4,040 ) (4,091 ) Balance, ending $ 7,124 $ 8,048 |
Note 21 - Reclassifications O48
Note 21 - Reclassifications Out of Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Details about Other Comprehensive Components Amounts Reclassified from Other Comprehensive Income for the Years Ended December 31, Affected Line Item in the Statement Where Net Income is Presented (Dollars In Thousands) 201 5 201 4 Available for sale securities Realized gains on sales of securities held for sale during the period $ 52 $ 128 Gains on sales of investment securities Tax expense related to realized gains on securities sold 18 44 Income tax expense $ 34 $ 84 Net income |
Note 22 - Condensed Parent Co49
Note 22 - Condensed Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | CONDENSED BALANCE SHEETS Dollars In Thousands December 31, 201 5 December 31, 2014 Assets Cash and due from banks $ 1,576 $ 408 Investment in bank subsidiary 51,951 42,817 Other assets 7 — Total assets $ 53,534 $ 43,225 Liabilities and Stockholders’ Equity Accrued interest payable $ 18 $ — Other liabilities 305 — Subordinated notes 7,194 — Total liabilities 7,517 — Stockholders’ equity: Total stockholders’ equity 46,017 43,225 Total liabilities and stockholders’ equity $ 53,534 $ 43,225 |
Condensed Income Statement [Table Text Block] | CONDENSED STATEMENTS OF INCOME Dollars In Thousands For the year ended December 31, 201 5 For the year ended December 31, 2014 Dividend from Bank subsidiary $ 630 $ — Income 630 — Interest expense 19 — Other expenses 181 143 Expenses 200 143 Net income ( loss ) before income taxes 430 (143 ) Income tax benefit 68 48 Net income ( loss ) before equity in undistributed net income of subsidiary 498 (95 ) Undistributed net income of subsidiary 3,056 3,510 Net Income $ 3,554 $ 3,415 |
Condensed Cash Flow Statement [Table Text Block] | CONDENSED STATEMENTS OF CASH FLOWS Dollars In Thousands For the year ended December 31, 201 5 For the year ended December 31, 2014 Cash flows from operating activities: Net income $ 3,554 $ 3,415 Equity in undistributed net income of subsidiary bank (3,056 ) (3,510 ) Amortization expense on subordinated notes 1 — Increase in other assets (7 ) — Increase in interest payable 18 — Increase in other liabilities 305 (9 ) Net cash flows provided by (used in) operating activities 815 (104 ) Cash flows from investing activities: Capital contribution to bank subsidiary (6,000 ) — Net cash flows used in investing activities (6,000 ) — Cash flows from financing activities: Issuance of subordinated notes 7,193 — Preferred dividend payment (840 ) (840 ) Net cash flows provided by (used in) financing activities 6,353 (840 ) Net increase (decrease) in cash and cash equivalents 1,168 (944 ) Cash and cash equivalents, beginning 408 1,352 Cash and cash equivalents, ending $ 1,576 $ 408 |
Note 1 - Organization and Sum50
Note 1 - Organization and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Unrecognized Tax Benefits (in Dollars) | $ 0 | $ 0 |
Preferred Stock Convertible Conversion Price (in Dollars per share) | $ 6.25 | |
Consumer Portfolio Segment [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Threshold Period Past Due for Write-off of Financing Receivable | 120 days | |
Non-consumer Portfolio Segment [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Threshold Period Past Due for Write-off of Financing Receivable | 180 days | |
2005 Stock Option Plan [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 550,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
2009 Restricted Stock Plan [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 132,000 | |
HomeTown Residential Mortgage, LLC [Member] | Corporate Joint Venture [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 49.00% | |
Minimum [Member] | Building [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Minimum [Member] | Equipment, Furniture And Fixtures [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum [Member] | Building [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Maximum [Member] | Equipment, Furniture And Fixtures [Member] | ||
Note 1 - Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years |
Note 2 - Investment Securitie51
Note 2 - Investment Securities (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 2 - Investment Securities (Details) [Line Items] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | |
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities | 10,840,000 | $ 13,895,000 |
Available-for-sale Securities, Gross Realized Gain (Loss) | $ 52,000 | $ 128,000 |
Available-for-sale Securities, Number Sold | 6 | 12 |
Available-for-sale Securities, Gross Realized Gains | $ 67,000 | $ 163,000 |
Available-for-sale Securities, Gross Realized Losses | 15,000 | 35,000 |
Available-for-sale Securities Pledged as Collateral | 7,400,000 | $ 8,800,000 |
Public Deposits [Member] | ||
Note 2 - Investment Securities (Details) [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 4,400,000 | |
Federal Home Loan Bank Borrowing [Member] | ||
Note 2 - Investment Securities (Details) [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | 1,400,000 | |
Other Purposes [Member] | ||
Note 2 - Investment Securities (Details) [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $ 1,600,000 | |
US Government Agencies Debt Securities [Member] | ||
Note 2 - Investment Securities (Details) [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 25 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Note 2 - Investment Securities (Details) [Line Items] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 14 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Note 2 - Investment Securities (Details) [Line Items] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 5 |
Note 2 - Investment Securitie52
Note 2 - Investment Securities (Details) - Available-for-sale Securities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 2 - Investment Securities (Details) - Available-for-sale Securities [Line Items] | ||
Securities available-for-sale, amortized cost | $ 51,944 | $ 53,913 |
Securities available-for-sale, gross unrealized gains | 896 | 989 |
Securities available-for-sale, gross unrealized losses | (296) | (299) |
Securities available-for-sale | 52,544 | 54,603 |
US Government Agencies Debt Securities [Member] | ||
Note 2 - Investment Securities (Details) - Available-for-sale Securities [Line Items] | ||
Securities available-for-sale, amortized cost | 26,385 | 26,812 |
Securities available-for-sale, gross unrealized gains | 242 | 333 |
Securities available-for-sale, gross unrealized losses | (191) | (180) |
Securities available-for-sale | 26,436 | 26,965 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Note 2 - Investment Securities (Details) - Available-for-sale Securities [Line Items] | ||
Securities available-for-sale, amortized cost | 8,803 | 9,678 |
Securities available-for-sale, gross unrealized gains | 60 | 125 |
Securities available-for-sale, gross unrealized losses | (90) | (64) |
Securities available-for-sale | 8,773 | 9,739 |
US States and Political Subdivisions Debt Securities [Member] | ||
Note 2 - Investment Securities (Details) - Available-for-sale Securities [Line Items] | ||
Securities available-for-sale, amortized cost | 16,756 | 17,423 |
Securities available-for-sale, gross unrealized gains | 594 | 531 |
Securities available-for-sale, gross unrealized losses | (15) | (55) |
Securities available-for-sale | $ 17,335 | $ 17,899 |
Note 2 - Investment Securitie53
Note 2 - Investment Securities (Details) - Unrealized Loss Positions of Available-for-sale Securities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 2 - Investment Securities (Details) - Unrealized Loss Positions of Available-for-sale Securities [Line Items] | ||
Securities available-for-sale in a continuous unrealized loss position, less than 12 months, fair value | $ 13,130 | $ 7,935 |
Securities available-for-sale in a continuous unrealized loss position, less than 12 months, unrealized loss | (148) | (74) |
Securities available-for-sale in a continuous unrealized loss position, 12 months or more, fair value | 8,519 | 13,322 |
Securities available-for-sale in a continuous unrealized loss position, 12 months or more, unrealized loss | (148) | (225) |
Securities available-for-sale in a continuous unrealized loss position, fair value | 21,649 | 21,257 |
Securities available-for-sale in a continuous unrealized loss position, unrealized loss | (296) | (299) |
US Government Agencies Debt Securities [Member] | ||
Note 2 - Investment Securities (Details) - Unrealized Loss Positions of Available-for-sale Securities [Line Items] | ||
Securities available-for-sale in a continuous unrealized loss position, less than 12 months, fair value | 8,878 | 5,568 |
Securities available-for-sale in a continuous unrealized loss position, less than 12 months, unrealized loss | (106) | (48) |
Securities available-for-sale in a continuous unrealized loss position, 12 months or more, fair value | 5,275 | 7,078 |
Securities available-for-sale in a continuous unrealized loss position, 12 months or more, unrealized loss | (85) | (132) |
Securities available-for-sale in a continuous unrealized loss position, fair value | 14,153 | 12,646 |
Securities available-for-sale in a continuous unrealized loss position, unrealized loss | (191) | (180) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Note 2 - Investment Securities (Details) - Unrealized Loss Positions of Available-for-sale Securities [Line Items] | ||
Securities available-for-sale in a continuous unrealized loss position, less than 12 months, fair value | 3,447 | 742 |
Securities available-for-sale in a continuous unrealized loss position, less than 12 months, unrealized loss | (32) | (6) |
Securities available-for-sale in a continuous unrealized loss position, 12 months or more, fair value | 2,718 | 4,058 |
Securities available-for-sale in a continuous unrealized loss position, 12 months or more, unrealized loss | (58) | (58) |
Securities available-for-sale in a continuous unrealized loss position, fair value | 6,165 | 4,800 |
Securities available-for-sale in a continuous unrealized loss position, unrealized loss | (90) | (64) |
US States and Political Subdivisions Debt Securities [Member] | ||
Note 2 - Investment Securities (Details) - Unrealized Loss Positions of Available-for-sale Securities [Line Items] | ||
Securities available-for-sale in a continuous unrealized loss position, less than 12 months, fair value | 805 | 1,625 |
Securities available-for-sale in a continuous unrealized loss position, less than 12 months, unrealized loss | (10) | (20) |
Securities available-for-sale in a continuous unrealized loss position, 12 months or more, fair value | 526 | 2,186 |
Securities available-for-sale in a continuous unrealized loss position, 12 months or more, unrealized loss | (5) | (35) |
Securities available-for-sale in a continuous unrealized loss position, fair value | 1,331 | 3,811 |
Securities available-for-sale in a continuous unrealized loss position, unrealized loss | $ (15) | $ (55) |
Note 2 - Investment Securitie54
Note 2 - Investment Securities (Details) - Available-for-sale Securities by Contractual Maturity - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities by Contractual Maturity [Abstract] | ||
Less than one year | $ 0 | |
Less than one year | 0 | |
Over one through five years | 1,809 | |
Over one through five years | 1,825 | |
Over five through ten years | 10,363 | |
Over five through ten years | 10,424 | |
Greater than 10 years | 39,772 | |
Greater than 10 years | 40,295 | |
51,944 | $ 53,913 | |
$ 52,544 | $ 54,603 |
Note 3 - Loans Receivable (Deta
Note 3 - Loans Receivable (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 3 - Loans Receivable (Details) [Line Items] | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 842,000 | $ 0 |
Financing Receivable, Modifications, Number of Contracts | 1 | 1 |
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 426,000 | $ 1,254,000 |
Allowance for Credit Losses, Change in Method of Calculating Impairment | 0 | 0 |
Performing Financial Instruments [Member] | ||
Note 3 - Loans Receivable (Details) [Line Items] | ||
Financing Receivable, Modifications, Recorded Investment | $ 6,400,000 | $ 6,100,000 |
Financing Receivable, Modifications, Number of Contracts | 4 | 2 |
Nonperforming Financial Instruments [Member] | ||
Note 3 - Loans Receivable (Details) [Line Items] | ||
Financing Receivable, Modifications, Recorded Investment | $ 252,000 | $ 639,000 |
Financing Receivable, Modifications, Number of Contracts | 2 | 2 |
Troubled Debt Restructuring [Member] | ||
Note 3 - Loans Receivable (Details) [Line Items] | ||
Financing Receivable, Modifications, Recorded Investment | $ 6,700,000 | $ 6,700,000 |
Financing Receivable, Modifications, Number of Contracts | 6 | 4 |
Troubled Debt Restructuring [Member] | Substandard [Member] | ||
Note 3 - Loans Receivable (Details) [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 22,000 |
Note 3 - Loans Receivable (De56
Note 3 - Loans Receivable (Details) - Classifications of Loans Receivable - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Construction: | |||
Loans | $ 367,358 | $ 331,679 | |
Less allowance for loan losses | (3,298) | (3,332) | $ (3,721) |
Loans, net | 364,060 | 328,347 | |
Construction Loan Portfolio Segment [Member] | Residential [Member] | |||
Construction: | |||
Loans | 11,779 | 10,019 | |
Less allowance for loan losses | (83) | (43) | (156) |
Construction Loan Portfolio Segment [Member] | Land Acquisition, Development and Commercial [Member] | |||
Construction: | |||
Loans | 27,440 | 23,686 | |
Less allowance for loan losses | (187) | (453) | (872) |
Real Estate Portfolio Segment [Member] | Residential [Member] | |||
Construction: | |||
Loans | 100,268 | 86,269 | |
Less allowance for loan losses | (1,047) | (833) | (867) |
Real Estate Portfolio Segment [Member] | Commercial [Member} | |||
Construction: | |||
Loans | 140,952 | 135,070 | |
Less allowance for loan losses | (1,001) | (1,012) | (1,008) |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | |||
Construction: | |||
Loans | 53,012 | 44,807 | |
Less allowance for loan losses | (531) | (319) | (327) |
Equity Lines Portfolio Segment [Member] | |||
Construction: | |||
Loans | 26,376 | 24,330 | |
Less allowance for loan losses | (277) | (423) | (385) |
Consumer Portfolio Segment [Member] | |||
Construction: | |||
Loans | 7,531 | 7,498 | |
Less allowance for loan losses | $ (85) | $ (65) | $ (63) |
Note 3 - Loans Receivable (De57
Note 3 - Loans Receivable (Details) - Past Due and Non-accrual Status of Loans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Construction: | ||
Loans, past due | $ 1,470 | $ 974 |
Loans, current | 365,888 | 330,705 |
Loans | 367,358 | 331,679 |
Loans, nonaccrual | 426 | 1,254 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 498 | 211 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 84 | 502 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 888 | 261 |
Construction Loan Portfolio Segment [Member] | Residential [Member] | ||
Construction: | ||
Loans, current | 11,779 | 10,019 |
Loans | 11,779 | 10,019 |
Construction Loan Portfolio Segment [Member] | Land Acquisition, Development and Commercial [Member] | ||
Construction: | ||
Loans, past due | 11 | |
Loans, current | 27,429 | 23,686 |
Loans | 27,440 | 23,686 |
Loans, nonaccrual | 11 | |
Construction Loan Portfolio Segment [Member] | Land Acquisition, Development and Commercial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 11 | |
Real Estate Portfolio Segment [Member] | Residential [Member] | ||
Construction: | ||
Loans, past due | 347 | 642 |
Loans, current | 99,921 | 85,627 |
Loans | 100,268 | 86,269 |
Loans, nonaccrual | 475 | |
Real Estate Portfolio Segment [Member] | Residential [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 297 | |
Real Estate Portfolio Segment [Member] | Residential [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 381 | |
Real Estate Portfolio Segment [Member] | Residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 50 | 261 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | ||
Construction: | ||
Loans, past due | 836 | 85 |
Loans, current | 140,116 | 134,985 |
Loans | 140,952 | 135,070 |
Loans, nonaccrual | 368 | 758 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 44 | |
Real Estate Portfolio Segment [Member] | Commercial [Member} | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 85 | |
Real Estate Portfolio Segment [Member] | Commercial [Member} | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 792 | |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | ||
Construction: | ||
Loans, past due | 171 | 96 |
Loans, current | 52,841 | 44,711 |
Loans | 53,012 | 44,807 |
Loans, nonaccrual | 47 | |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 52 | 96 |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 84 | |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 35 | |
Equity Lines Portfolio Segment [Member] | ||
Construction: | ||
Loans, past due | 105 | 105 |
Loans, current | 26,271 | 24,225 |
Loans | 26,376 | 24,330 |
Equity Lines Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 105 | 105 |
Consumer Portfolio Segment [Member] | ||
Construction: | ||
Loans, past due | 46 | |
Loans, current | 7,531 | 7,452 |
Loans | $ 7,531 | 7,498 |
Loans, nonaccrual | 21 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | 10 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Construction: | ||
Loans, past due | $ 36 |
Note 3 - Loans Receivable (De58
Note 3 - Loans Receivable (Details) - Impaired Loans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Construction: | ||
Loans with no related allowance, recorded investment | $ 7,710 | $ 8,032 |
Loans with no related allowance, unpaid principal balance | 7,886 | 8,207 |
Loans with no related allowance, average balance total loans | 7,890 | 9,168 |
Loans with no related allowance, interest income recognized | 304 | 301 |
Construction: | ||
Loans with an related allowance, recorded investment | 127 | 141 |
Loans with an related allowance, unpaid principal balance | 127 | 141 |
Loans, related allowance | 17 | 141 |
Loans with an related allowance, average balance total loans | 135 | 153 |
Real Estate Portfolio Segment [Member] | Residential [Member] | ||
Construction: | ||
Loans with no related allowance, recorded investment | 247 | 525 |
Loans with no related allowance, unpaid principal balance | 247 | 700 |
Loans with no related allowance, average balance total loans | 255 | 605 |
Loans with no related allowance, interest income recognized | 13 | 12 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | ||
Construction: | ||
Loans with no related allowance, recorded investment | 7,451 | 7,507 |
Loans with no related allowance, unpaid principal balance | 7,627 | 7,507 |
Loans with no related allowance, average balance total loans | 7,623 | 8,563 |
Loans with no related allowance, interest income recognized | 291 | 289 |
Construction: | ||
Loans with an related allowance, recorded investment | 127 | 141 |
Loans with an related allowance, unpaid principal balance | 127 | 141 |
Loans, related allowance | 17 | 141 |
Loans with an related allowance, average balance total loans | 135 | $ 153 |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | ||
Construction: | ||
Loans with an related allowance, recorded investment | 12 | |
Loans with an related allowance, unpaid principal balance | 12 | |
Loans with an related allowance, average balance total loans | $ 12 |
Note 3 - Loans Receivable (De59
Note 3 - Loans Receivable (Details) - Loans Modified in TDR by Class of Loan $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Construction loans: | ||
Number of contracts | 1 | 1 |
Pre-modification outstanding recorded investment | $ 260 | $ 1,932 |
Post-modification outstanding recorded investment | $ 267 | $ 632 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | ||
Construction loans: | ||
Number of contracts | 1 | 1 |
Pre-modification outstanding recorded investment | $ 260 | $ 1,932 |
Post-modification outstanding recorded investment | 255 | $ 632 |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | ||
Construction loans: | ||
Post-modification outstanding recorded investment | $ 12 |
Note 4 - Allowance for Loan L60
Note 4 - Allowance for Loan Losses (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Note 4 - Allowance for Loan Losses (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 367,358,000 | $ 331,679,000 |
Unlikely to be Collected Financing Receivable [Member] | ||
Note 4 - Allowance for Loan Losses (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | 0 | 0 |
Doubtful [Member] | ||
Note 4 - Allowance for Loan Losses (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 0 | $ 0 |
Note 4 - Allowance for Loan L61
Note 4 - Allowance for Loan Losses (Details) - Allowance for Loan Losses - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Construction loans: | ||
Allowance for loan losses, beginning balance | $ 3,332 | $ 3,721 |
Allowance for loan losses, charge-offs | (80) | (464) |
Allowance for loan losses, recoveries | 46 | 75 |
Allowance for loan losses, ending balance | 3,298 | 3,332 |
Allowance for loan losses, ending balance: individually evaluated for impairment | 17 | 141 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 3,281 | 3,191 |
Loans | 367,358 | 331,679 |
Loans,ending balance: individually evaluated for impairment | 7,837 | 8,173 |
Loans, ending balance: collectively evaluated for impairment | 359,521 | 323,506 |
Construction Loan Portfolio Segment [Member] | Residential [Member] | ||
Construction loans: | ||
Allowance for loan losses, beginning balance | 43 | 156 |
Allowance for loan losses, provisions | 40 | (113) |
Allowance for loan losses, ending balance | 83 | 43 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 83 | 43 |
Loans | 11,779 | 10,019 |
Loans, ending balance: collectively evaluated for impairment | 11,779 | 10,019 |
Construction Loan Portfolio Segment [Member] | Land Acquisition, Development and Commercial [Member] | ||
Construction loans: | ||
Allowance for loan losses, beginning balance | 453 | 872 |
Allowance for loan losses, provisions | (266) | (419) |
Allowance for loan losses, ending balance | 187 | 453 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 187 | 453 |
Loans | 27,440 | 23,686 |
Loans, ending balance: collectively evaluated for impairment | 27,440 | 23,686 |
Real Estate Portfolio Segment [Member] | Residential [Member] | ||
Construction loans: | ||
Allowance for loan losses, beginning balance | 833 | 867 |
Allowance for loan losses, charge-offs | (233) | |
Allowance for loan losses, recoveries | 1 | 34 |
Allowance for loan losses, provisions | 213 | 165 |
Allowance for loan losses, ending balance | 1,047 | 833 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 1,047 | 833 |
Loans | 100,268 | 86,269 |
Loans,ending balance: individually evaluated for impairment | 247 | 525 |
Loans, ending balance: collectively evaluated for impairment | 100,021 | 85,744 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | ||
Construction loans: | ||
Allowance for loan losses, beginning balance | 1,012 | 1,008 |
Allowance for loan losses, provisions | (11) | 4 |
Allowance for loan losses, ending balance | 1,001 | 1,012 |
Allowance for loan losses, ending balance: individually evaluated for impairment | 17 | 141 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 984 | 871 |
Loans | 140,952 | 135,070 |
Loans,ending balance: individually evaluated for impairment | 7,578 | 7,648 |
Loans, ending balance: collectively evaluated for impairment | 133,374 | 127,422 |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | ||
Construction loans: | ||
Allowance for loan losses, beginning balance | 319 | 327 |
Allowance for loan losses, charge-offs | (55) | |
Allowance for loan losses, recoveries | 10 | |
Allowance for loan losses, provisions | 202 | 47 |
Allowance for loan losses, ending balance | 531 | 319 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 531 | 319 |
Loans | 53,012 | 44,807 |
Loans,ending balance: individually evaluated for impairment | 12 | |
Loans, ending balance: collectively evaluated for impairment | 53,000 | 44,807 |
Equity Lines Portfolio Segment [Member] | ||
Construction loans: | ||
Allowance for loan losses, beginning balance | 423 | 385 |
Allowance for loan losses, charge-offs | (136) | |
Allowance for loan losses, recoveries | 1 | 37 |
Allowance for loan losses, provisions | (147) | 137 |
Allowance for loan losses, ending balance | 277 | 423 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 277 | 423 |
Loans | 26,376 | 24,330 |
Loans, ending balance: collectively evaluated for impairment | 26,376 | 24,330 |
Consumer Portfolio Segment [Member] | ||
Construction loans: | ||
Allowance for loan losses, beginning balance | 65 | 63 |
Allowance for loan losses, charge-offs | (80) | (40) |
Allowance for loan losses, recoveries | 34 | 4 |
Allowance for loan losses, provisions | 66 | 38 |
Allowance for loan losses, ending balance | 85 | 65 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | 85 | 65 |
Loans | 7,531 | 7,498 |
Loans, ending balance: collectively evaluated for impairment | 7,531 | 7,498 |
Unallocated Financing Receivables [Member] | ||
Construction loans: | ||
Allowance for loan losses, beginning balance | 184 | 43 |
Allowance for loan losses, provisions | (97) | 141 |
Allowance for loan losses, ending balance | 87 | 184 |
Allowance for loan losses, ending balance: collectively evaluated for impairment | $ 87 | $ 184 |
Note 4 - Allowance for Loan L62
Note 4 - Allowance for Loan Losses (Details) - Loans by Credit Quality Indicators - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Construction loans: | ||
Loans | $ 367,358 | $ 331,679 |
Pass [Member] | ||
Construction loans: | ||
Loans | 358,751 | 322,240 |
Special Mention [Member] | ||
Construction loans: | ||
Loans | 6,531 | 7,158 |
Substandard [Member] | ||
Construction loans: | ||
Loans | 1,650 | 1,027 |
Substandard Nonaccrual [Member] | ||
Construction loans: | ||
Loans | 426 | 1,254 |
Construction Loan Portfolio Segment [Member] | Residential [Member] | ||
Construction loans: | ||
Loans | 11,779 | 10,019 |
Construction Loan Portfolio Segment [Member] | Residential [Member] | Pass [Member] | ||
Construction loans: | ||
Loans | 11,779 | 10,019 |
Construction Loan Portfolio Segment [Member] | Land Acquisition, Development and Commercial [Member] | ||
Construction loans: | ||
Loans | 27,440 | 23,686 |
Construction Loan Portfolio Segment [Member] | Land Acquisition, Development and Commercial [Member] | Pass [Member] | ||
Construction loans: | ||
Loans | 27,429 | 23,672 |
Construction Loan Portfolio Segment [Member] | Land Acquisition, Development and Commercial [Member] | Substandard [Member] | ||
Construction loans: | ||
Loans | 14 | |
Construction Loan Portfolio Segment [Member] | Land Acquisition, Development and Commercial [Member] | Substandard Nonaccrual [Member] | ||
Construction loans: | ||
Loans | 11 | |
Real Estate Portfolio Segment [Member] | Residential [Member] | ||
Construction loans: | ||
Loans | 100,268 | 86,269 |
Real Estate Portfolio Segment [Member] | Residential [Member] | Pass [Member] | ||
Construction loans: | ||
Loans | 95,809 | 81,409 |
Real Estate Portfolio Segment [Member] | Residential [Member] | Special Mention [Member] | ||
Construction loans: | ||
Loans | 4,212 | 4,335 |
Real Estate Portfolio Segment [Member] | Residential [Member] | Substandard [Member] | ||
Construction loans: | ||
Loans | 247 | 50 |
Real Estate Portfolio Segment [Member] | Residential [Member] | Substandard Nonaccrual [Member] | ||
Construction loans: | ||
Loans | 475 | |
Real Estate Portfolio Segment [Member] | Commercial [Member} | ||
Construction loans: | ||
Loans | 140,952 | 135,070 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | Pass [Member] | ||
Construction loans: | ||
Loans | 138,034 | 131,087 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | Special Mention [Member] | ||
Construction loans: | ||
Loans | 1,155 | 2,302 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | Substandard [Member] | ||
Construction loans: | ||
Loans | 1,395 | 923 |
Real Estate Portfolio Segment [Member] | Commercial [Member} | Substandard Nonaccrual [Member] | ||
Construction loans: | ||
Loans | 368 | 758 |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | ||
Construction loans: | ||
Loans | 53,012 | 44,807 |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | Pass [Member] | ||
Construction loans: | ||
Loans | 51,801 | 44,248 |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | Special Mention [Member] | ||
Construction loans: | ||
Loans | 1,164 | 521 |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | Substandard [Member] | ||
Construction loans: | ||
Loans | 38 | |
Commercial, Industrial and Agricultural Portfolio Segment [Member] | Substandard Nonaccrual [Member] | ||
Construction loans: | ||
Loans | 47 | |
Equity Lines Portfolio Segment [Member] | ||
Construction loans: | ||
Loans | 26,376 | 24,330 |
Equity Lines Portfolio Segment [Member] | Pass [Member] | ||
Construction loans: | ||
Loans | 26,376 | 24,330 |
Consumer Portfolio Segment [Member] | ||
Construction loans: | ||
Loans | 7,531 | 7,498 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Construction loans: | ||
Loans | 7,523 | 7,475 |
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Construction loans: | ||
Loans | $ 8 | 2 |
Consumer Portfolio Segment [Member] | Substandard Nonaccrual [Member] | ||
Construction loans: | ||
Loans | $ 21 |
Note 5 - Foreclosed Propertie63
Note 5 - Foreclosed Properties (Details) - Foreclosed Properties Valuation Allowance - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Foreclosed Properties Valuation Allowance [Abstract] | ||
Other real estate owned, beginning balance | $ 7,408 | $ 9,078 |
Other real estate owned, valuation allowance, beginning balance | (422) | (935) |
Other real estate owned, net, beginning balance | 6,986 | 8,143 |
Other real estate owned, ending balance | 5,657 | 7,408 |
Other real estate owned, valuation allowance, ending balance | (420) | (422) |
Other real estate owned, net, ending balance | 5,237 | 6,986 |
Other real estate owned, additions | 1,520 | |
Other real estate owned, additions, net | 1,520 | |
Other real estate owned, valuation allowance, writedowns | (346) | |
Other real estate owned, writedowns, net | (346) | |
Other real estate owned, sales | (1,751) | (1,618) |
Other real estate owned, valuation allowance, sales | 348 | 422 |
Other real estate owned, sales, net | $ (1,403) | (1,196) |
Transfer to fixed assets | (1,572) | |
Transfer to fixed assets | 91 | |
Transfer to fixed assets | $ (1,481) |
Note 5 - Foreclosed Propertie64
Note 5 - Foreclosed Properties (Details) - Classification of Other Real Estate Owned and Expenses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Real Estate Properties [Line Items] | |||
Other Real Estate Owned | $ 5,237 | $ 6,986 | $ 8,143 |
Net (gain) loss on sales | (10) | ||
Provision for unrealized losses | 346 | 0 | |
Operating expenses | 151 | 224 | |
Total Other Real Estate Owned | 497 | 214 | |
Residential Lots [Member] | |||
Real Estate Properties [Line Items] | |||
Other Real Estate Owned | 2,520 | 3,023 | |
Residential Development [Member] | |||
Real Estate Properties [Line Items] | |||
Other Real Estate Owned | 423 | 423 | |
Commercial Lots [Member] | |||
Real Estate Properties [Line Items] | |||
Other Real Estate Owned | 90 | 1,076 | |
Commercial Buildings [Member] | |||
Real Estate Properties [Line Items] | |||
Other Real Estate Owned | $ 2,204 | $ 2,464 |
Note 6 - Property and Equipme65
Note 6 - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 6 - Property and Equipment (Details) [Line Items] | ||
Depreciation, Depletion and Amortization | $ 762 | $ 657 |
Operating Leases, Rent Expense | $ 333 | $ 322 |
Main Office [Member] | ||
Note 6 - Property and Equipment (Details) [Line Items] | ||
Maximum Rental Increase | 3.00% | |
Branch Location [Member] | ||
Note 6 - Property and Equipment (Details) [Line Items] | ||
Maximum Rental Increase | 3.00% | |
Automated Teller Machine [Member] | ||
Note 6 - Property and Equipment (Details) [Line Items] | ||
Maximum Rental Increase | 3.00% | |
Expired on December 31, 2015 [Member] | Main Office [Member] | ||
Note 6 - Property and Equipment (Details) [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |
Expire on December 31, 2025 [Member] | Main Office [Member] | ||
Note 6 - Property and Equipment (Details) [Line Items] | ||
Lessor Leasing Arrangements, Operating Leases, Renewal Term | 10 years |
Note 6 - Property and Equipme66
Note 6 - Property and Equipment (Details) - Components of Property and Equipment - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Components of Property and Equipment [Abstract] | ||
Land | $ 4,309 | $ 4,656 |
Buildings and improvements | 8,611 | 8,720 |
Leasehold improvements | 2,149 | 2,149 |
Furniture and equipment | 3,113 | 3,074 |
Software | 554 | 487 |
Construction in process | 13 | 49 |
Property and equipment, total | 18,749 | 19,135 |
Less accumulated depreciation and amortization | 4,741 | 4,235 |
Property and equipment, net | $ 14,008 | $ 14,900 |
Note 6 - Property and Equipme67
Note 6 - Property and Equipment (Details) - Minimum Annual Lease Payments $ in Thousands | Dec. 31, 2015USD ($) |
Minimum Annual Lease Payments [Abstract] | |
2,016 | $ 224 |
2,017 | 168 |
2,018 | 168 |
2,019 | 169 |
2,020 | 169 |
Thereafter | 788 |
Total | $ 1,686 |
Note 7 - Deposits (Details)
Note 7 - Deposits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 7 - Deposits (Details) [Line Items] | ||
Time Deposits 250000 Or More | $ 10 | $ 9.4 |
Interest-bearing Domestic Deposit, Brokered | $ 34.2 | $ 40.2 |
Customer Concentration Risk [Member] | Deposits, Total [Member] | ||
Note 7 - Deposits (Details) [Line Items] | ||
Concentration Risk, Percentage | 0.00% |
Note 7 - Deposits (Details) - S
Note 7 - Deposits (Details) - Scheduled Maturities of Time Deposits $ in Thousands | Dec. 31, 2015USD ($) |
Scheduled Maturities of Time Deposits [Abstract] | |
2,016 | $ 74,626 |
2,017 | 41,354 |
2,018 | 14,024 |
2,019 | 5,703 |
2,020 | 3,903 |
Total | $ 139,610 |
Note 8 - Federal Home Loan Ba70
Note 8 - Federal Home Loan Bank Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 8 - Federal Home Loan Bank Borrowings (Details) [Line Items] | ||
Advances from Federal Home Loan Banks | $ 22,000 | $ 20,000 |
Real Estate Loans [Member] | ||
Note 8 - Federal Home Loan Bank Borrowings (Details) [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 30,700 | |
Investment Securities [Member] | ||
Note 8 - Federal Home Loan Bank Borrowings (Details) [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1,400 | |
Federal Home Loan Bank Stock [Member] | ||
Note 8 - Federal Home Loan Bank Borrowings (Details) [Line Items] | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1,300 | |
Federal Home Loan Bank of Atlanta [Member] | ||
Note 8 - Federal Home Loan Bank Borrowings (Details) [Line Items] | ||
Advances from Federal Home Loan Banks | 22,000 | $ 20,000 |
Federal Home Loan Bank of Atlanta [Member] | Convertible Debt [Member] | ||
Note 8 - Federal Home Loan Bank Borrowings (Details) [Line Items] | ||
Advances from Federal Home Loan Banks | 4,000 | |
Federal Home Loan Bank of Atlanta [Member] | Fixed Rate Advance [Member] | ||
Note 8 - Federal Home Loan Bank Borrowings (Details) [Line Items] | ||
Advances from Federal Home Loan Banks | $ 18,000 |
Note 8 - Federal Home Loan Ba71
Note 8 - Federal Home Loan Bank Borrowings (Details) - Federal Home Loan Bank of Atlanta Borrowings - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank Borrowings | $ 22,191 | $ 20,356 |
Federal Home Loan Bank of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank Borrowings | $ 22,000 | 20,000 |
Advance Date September 7, 2007 [Member] | Federal Home Loan Bank of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maturity Date | Sep. 7, 2017 | |
Current Rate | 3.69% | |
Federal Home Loan Bank Borrowings | $ 4,000 | 4,000 |
Advance Date April 13, 2012 [Member] | Federal Home Loan Bank of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maturity Date | Apr. 13, 2016 | |
Current Rate | 1.265% | |
Federal Home Loan Bank Borrowings | $ 12,000 | 12,000 |
Advance Date June 17, 2014 A [Member] | Federal Home Loan Bank of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maturity Date | Jun. 17, 2015 | |
Current Rate | 0.26% | |
Federal Home Loan Bank Borrowings | 2,000 | |
Advance Date June 17, 2014 B [Member] | Federal Home Loan Bank of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maturity Date | Jun. 17, 2016 | |
Current Rate | 0.67% | |
Federal Home Loan Bank Borrowings | $ 2,000 | $ 2,000 |
Advance Date January 14, 2015 [Member] | Federal Home Loan Bank of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Maturity Date | Jan. 16, 2018 | |
Current Rate | 1.09% | |
Federal Home Loan Bank Borrowings | $ 4,000 |
Note 9 - Subordinated Notes (De
Note 9 - Subordinated Notes (Details) - Subordinated Debt [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 18, 2015 |
Note 9 - Subordinated Notes (Details) [Line Items] | ||
Debt Instrument, Face Amount (in Dollars) | $ 7,500 | $ 7,500 |
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | |
Debt Instrument, Interest Rate, Effective Percentage | 6.89% |
Note 9 - Subordinated Notes (73
Note 9 - Subordinated Notes (Details) - Subordinated Notes - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 18, 2015 |
Subordinated Borrowing [Line Items] | ||
Subordinated notes | $ 7,194 | |
Subordinated Debt [Member] | ||
Subordinated Borrowing [Line Items] | ||
Subordinated notes | 7,500 | $ 7,500 |
Subordinated notes | $ 306 |
Note 10 - Other Borrowings (Det
Note 10 - Other Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 10 - Other Borrowings (Details) [Line Items] | ||
Short-term Debt | $ 2,361,000 | $ 422,000 |
Line of Credit Facility Limit Percentage | 15.00% | |
Line of Credit [Member] | ||
Note 10 - Other Borrowings (Details) [Line Items] | ||
Short-term Debt | $ 1,602,000 | 237,000 |
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Note 10 - Other Borrowings (Details) [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |
Guidance Line of Credit [Member] | ||
Note 10 - Other Borrowings (Details) [Line Items] | ||
Short-term Debt | $ 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 8,000,000 | |
Federal Funds Line of Credit [Member] | ||
Note 10 - Other Borrowings (Details) [Line Items] | ||
Short-term Debt | 0 | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 18,500,000 | |
Minimum [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Note 10 - Other Borrowings (Details) [Line Items] | ||
Line of Credit Facility, Interest Rate at Period End | 1.00% |
Note 10 - Other Borrowings (D75
Note 10 - Other Borrowings (Details) - Short Term Borrowings - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 2,361 | $ 422 |
Weighted average interest rate at December 31 | 2.25% | 1.93% |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 759 | $ 185 |
Line of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1,602 | $ 237 |
Note 11 - Fair Value Measurem76
Note 11 - Fair Value Measurements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 11 - Fair Value Measurements (Details) [Line Items] | ||
Liabilities, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 |
Minimum [Member] | ||
Note 11 - Fair Value Measurements (Details) [Line Items] | ||
Federal Funds, Maturity | 1 day | |
Maximum [Member] | ||
Note 11 - Fair Value Measurements (Details) [Line Items] | ||
Federal Funds, Maturity | 3 days |
Note 11 - Fair Value Measurem77
Note 11 - Fair Value Measurements (Details) - Fair Value of Financial Assets and Liabililties Measure on Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Available-for-sale securities | $ 52,544 | $ 54,603 |
US Government Agencies Debt Securities [Member] | ||
Assets: | ||
Available-for-sale securities | 26,436 | 26,965 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Assets: | ||
Available-for-sale securities | 8,773 | 9,739 |
US States and Political Subdivisions Debt Securities [Member] | ||
Assets: | ||
Available-for-sale securities | 17,335 | 17,899 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Available-for-sale securities | 52,544 | 54,603 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Assets: | ||
Available-for-sale securities | 26,436 | 26,965 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Assets: | ||
Available-for-sale securities | 8,773 | 9,739 |
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets: | ||
Available-for-sale securities | $ 17,335 | $ 17,899 |
Note 11 - Fair Value Measurem78
Note 11 - Fair Value Measurements (Details) - Fair Value of Financial Assets and Liabililties Measure on Non-recurring Basis - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | |||
Impaired loans, net of valuation allowance | $ 110 | ||
Loans held for sale | 1,643,000 | $ 242,000 | |
Other real estate owned | 5,237,000 | 6,986,000 | $ 8,143,000 |
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Loans held for sale | 1,643,000 | 242,000 | |
Other real estate owned | 1,300,000 | 3,255,000 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets: | |||
Impaired loans, net of valuation allowance | 110 | ||
Other real estate owned | $ 3,937,000 | $ 3,731,000 |
Note 11 - Fair Value Measurem79
Note 11 - Fair Value Measurements (Details) - Fair Value Quantitative Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Discounted Appraised Value [Member] | Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | 6.00% | |
Impaired loans | (6.00%) | |
Range | 94.00% | |
Weighted average | (94.00%) | |
Other real estate owned | 6.00% | |
Other real estate owned | (6.00%) | |
Discounted Appraised Value [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | 6.00% | |
Impaired loans | (6.00%) | |
Range | 4.00% | |
Weighted average | (4.00%) | |
Other real estate owned | 6.00% | |
Other real estate owned | (6.00%) | |
Internal Evaluations [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
11.00% | ||
(11.00%) | ||
Fair Value, Inputs, Level 3 [Member] | Discounted Appraised Value [Member] | Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans (in Dollars) | $ 110 | $ 0 |
Impaired loans | 0.00% | 6.00% |
Impaired loans | (0.00%) | (6.00%) |
Range | 94.50% | 94.00% |
Weighted average | (94.50%) | (94.00%) |
Other real estate owned | 0.00% | 6.00% |
Other real estate owned | (0.00%) | (6.00%) |
Fair Value, Inputs, Level 3 [Member] | Discounted Appraised Value [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | 6.00% | 6.00% |
Impaired loans | (6.00%) | (6.00%) |
Range | 8.00% | 4.00% |
Weighted average | (8.00%) | (4.00%) |
(in Dollars) | $ 1,735 | $ 1,458 |
Other real estate owned (in Dollars) | $ 1,735 | $ 1,458 |
Other real estate owned | 6.00% | 6.00% |
Other real estate owned | (6.00%) | (6.00%) |
Fair Value, Inputs, Level 3 [Member] | Internal Evaluations [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
(in Dollars) | $ 2,202 | $ 2,273 |
21.00% | 0.00% | |
(21.00%) | (0.00%) | |
Other real estate owned (in Dollars) | $ 2,202 | $ 2,273 |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Discounted Appraised Value [Member] | Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | 0.00% | |
Impaired loans | (0.00%) | |
Range | 94.50% | |
Weighted average | (94.50%) | |
Other real estate owned | 0.00% | |
Other real estate owned | (0.00%) | |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Discounted Appraised Value [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | 6.00% | |
Impaired loans | (6.00%) | |
Range | 4.00% | |
Weighted average | (4.00%) | |
Other real estate owned | 6.00% | |
Other real estate owned | (6.00%) | |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Internal Evaluations [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
4.00% | ||
(4.00%) | ||
Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | Discounted Appraised Value [Member] | Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | 0.00% | 6.00% |
Impaired loans | (0.00%) | (6.00%) |
Range | 94.50% | 94.00% |
Weighted average | (94.50%) | (94.00%) |
Other real estate owned | 0.00% | 6.00% |
Other real estate owned | (0.00%) | (6.00%) |
Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | Discounted Appraised Value [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired loans | 6.00% | 6.00% |
Impaired loans | (6.00%) | (6.00%) |
Range | 9.00% | 4.00% |
Weighted average | (9.00%) | (4.00%) |
Other real estate owned | 6.00% | 6.00% |
Other real estate owned | (6.00%) | (6.00%) |
Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | Internal Evaluations [Member] | Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
39.00% | 33.00% | |
(39.00%) | (33.00%) |
Note 11 - Fair Value Measurem80
Note 11 - Fair Value Measurements (Details) - Fair Value of Financial Instruments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | ||
Cash and due from banks | $ 28,745 | $ 13,795 |
Cash and due from banks, fair value | 28,762 | 13,806 |
Federal funds sold | 1,329 | 649 |
Federal funds sold, fair value | 1,329 | 649 |
Securities available-for-sale | 52,544 | 54,603 |
Restricted equity securities | 2,535 | 2,476 |
Restricted equity securities, fair value | 2,535 | 2,476 |
Loans held for sale | 1,643 | 242 |
Loans held for sale, fair value | 1,643 | 242 |
Loans, net | 364,060 | 328,347 |
Loans, net, fair value | 362,440 | 332,167 |
Bank owned life insurance | 6,285 | 3,622 |
Bank owned life insurance, fair value | 6,285 | 3,622 |
Accrued income | 2,057 | 1,924 |
Accrued income, fair value | 2,057 | 1,924 |
Financial liabilities | ||
Total deposits | 399,546 | 362,595 |
Total deposits, fair value | 400,117 | 350,418 |
FHLB borrowings | 22,000 | 20,000 |
FHLB borrowings, fair value | 22,191 | 20,356 |
Subordinated notes | 7,194 | |
Subordinated notes | 7,354 | |
Other borrowings | 2,361 | 422 |
Accrued interest payable | 372 | 272 |
Accrued interest payable, fair value | 372 | 272 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and due from banks, fair value | 26,995 | 11,794 |
Federal funds sold | 1,329 | 649 |
Federal funds sold, fair value | 1,329 | 649 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets | ||
Cash and due from banks, fair value | 1,767 | 2,012 |
Securities available-for-sale | 52,544 | 54,603 |
Restricted equity securities | 2,535 | 2,476 |
Restricted equity securities, fair value | 2,535 | 2,476 |
Loans held for sale | 1,643 | 242 |
Loans held for sale, fair value | 1,643 | 242 |
Bank owned life insurance | 6,285 | 3,622 |
Bank owned life insurance, fair value | 6,285 | 3,622 |
Accrued income | 2,057 | 1,924 |
Accrued income, fair value | 2,057 | 1,924 |
Financial liabilities | ||
Total deposits, fair value | 400,117 | 350,418 |
FHLB borrowings, fair value | 22,191 | 20,356 |
Subordinated notes | 7,354 | |
Other borrowings | 2,361 | 422 |
Accrued interest payable, fair value | 372 | 272 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets | ||
Loans, net, fair value | $ 362,440 | $ 332,167 |
Note 12 - Earnings Per Common81
Note 12 - Earnings Per Common Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Option [Member] | ||
Note 12 - Earnings Per Common Share (Details) [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 546,460 | 549,560 |
Note 12 - Earnings Per Common82
Note 12 - Earnings Per Common Share (Details) - Earnings Per Common Share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Common Share [Abstract] | ||
Earnings per common share, basic | 3,300,440 | 3,284,870 |
Earnings per common share, basic | $ 2,714 | $ 2,575 |
Earnings per common share, basic | $ 0.82 | $ 0.78 |
Series C Preferred Stock Dividends | $ 840 | $ 840 |
Effect of dilutive securities: | ||
Convertible preferred stock | 2,234,740 | 2,240,000 |
Convertible preferred stock | $ (0.18) | $ (0.16) |
Earnings per common share, diluted | 5,535,180 | 5,524,870 |
Earnings per common share, diluted | $ 3,554 | $ 3,415 |
Earnings per common share, diluted | $ 0.64 | $ 0.62 |
Note 13 - Stock Based Compens83
Note 13 - Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 18, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Note 13 - Stock Based Compensation (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | $ 137 | $ 58 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 165,000 | 0 | |
Employee Stock Option [Member] | |||
Note 13 - Stock Based Compensation (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | $ 75 | 2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.01% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 26.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 301 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years | ||
Restricted Stock [Member] | |||
Note 13 - Stock Based Compensation (Details) [Line Items] | |||
Allocated Share-based Compensation Expense | $ 62 | $ 56 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 184 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 132,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 7.91 | $ 6.25 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 10,969 | 17,268 |
Note 13 - Stock Based Compens84
Note 13 - Stock Based Compensation (Details) - Stock Option Activity - 2005 Stock Option Plan [Member] $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)$ / sharesshares | ||
Note 13 - Stock Based Compensation (Details) - Stock Option Activity [Line Items] | ||
Balance at December 31, 2014 | shares | 549,560 | |
Balance at December 31, 2014 | $ / shares | $ 8.61 | |
Forfeited | shares | (3,100) | |
Forfeited | $ / shares | $ 7.76 | |
Balance at December 31, 2015 | shares | 546,460 | |
Balance at December 31, 2015 | $ / shares | $ 8.62 | |
Balance at December 31, 2015 | 3 years 21 days | |
Balance at December 31, 2015 | $ | $ 0 | [1] |
Exercisable at December 31, 2015 | shares | 437,793 | |
Exercisable at December 31, 2015 | $ / shares | $ 9.04 | |
Exercisable at December 31, 2015 | 1 year 215 days | |
Exercisable at December 31, 2015 | $ | $ 0 | [1] |
[1] | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. |
Note 13 - Stock Based Compens85
Note 13 - Stock Based Compensation (Details) - Restricted Stock Awards Activity - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 13 - Stock Based Compensation (Details) - Restricted Stock Awards Activity [Line Items] | ||
Nonvested at beginning of year | 37,727 | 27,846 |
Nonvested at beginning of year | $ 5.56 | $ 5.05 |
Granted | 10,969 | 17,268 |
Granted | $ 7.91 | $ 6.25 |
Vested | (10,848) | (7,387) |
Vested | $ 5.56 | $ 5.23 |
Nonvested at end of year | 37,848 | 37,727 |
Nonvested at end of year | $ 6.24 | $ 5.56 |
Note 14 - Salary Continuation86
Note 14 - Salary Continuation Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 14 - Salary Continuation Plan (Details) [Line Items] | ||
Salary Continuation Plan Lifetime Payment Percentage | 20.00% | |
Salary Continuation Plan Base Salary Period | 5 years | |
Salary Continuation Plan Lifetime Payment Percentage Additional Benefit | 20.00% | |
Salary Continuation Plan Base Salary Period Additional Benefit | 5 years | |
Supplemental Executive Retirement Plan [Member] | ||
Note 14 - Salary Continuation Plan (Details) [Line Items] | ||
Deferred Compensation Liability, Current and Noncurrent | $ 315 | $ 129 |
Note 15. Employee Benefit Plan
Note 15. Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 15. Employee Benefit Plan (Details) [Line Items] | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount (in Dollars) | $ 209 | $ 209 |
Employee First 3 Percent [Member] | ||
Note 15. Employee Benefit Plan (Details) [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.00% | |
Employee Next 3 Percent [Member] | ||
Note 15. Employee Benefit Plan (Details) [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.00% |
Note 16 - Income Taxes (Details
Note 16 - Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Note 16 - Income Taxes (Detai89
Note 16 - Income Taxes (Details) - Components of Income Tax Expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Income Tax Expense [Abstract] | ||
Current | $ 1,514 | $ 731 |
Deferred | 81 | 856 |
Income tax expense | $ 1,595 | $ 1,587 |
Note 16 - Income Taxes (Detai90
Note 16 - Income Taxes (Details) - Income Tax Reconciliation - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Reconciliation [Abstract] | ||
Tax at statutory federal rate | $ 1,770 | $ 1,701 |
Tax-exempt interest income | (196) | (136) |
Cash surrender value of life insurance | (55) | (35) |
Incentive stock options | 47 | 19 |
Other | 29 | 38 |
Income tax expense | $ 1,595 | $ 1,587 |
Note 16 - Income Taxes (Detai91
Note 16 - Income Taxes (Details) - Components of Deferred Tax Assets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Nonaccrual loan interest | $ 11 | $ 14 |
Deferred tax asset | 1,093 | 1,076 |
Allowance for loan losses | 518 | 513 |
Stock-based compensation | 236 | 236 |
Deferred compensation | 107 | 44 |
Deferred tax liabilities | ||
Property and equipment | 327 | 360 |
Unrealized gain on securities available for sale | 204 | 235 |
Deferred loan fees | 821 | 721 |
Deferred tax liability | 1,352 | 1,316 |
Net deferred tax liability | (259) | (240) |
Pre-Opening Expenses [Member] | ||
Deferred tax assets | ||
Other assets | 78 | 94 |
Other Real Estate Expenses [Member] | ||
Deferred tax assets | ||
Other assets | $ 143 | $ 175 |
Note 17 - Commitments and Con92
Note 17 - Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 17 - Commitments and Contingencies (Details) [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 3,900,000 | $ 3,700,000 |
Cash, Uninsured Amount | $ 3,800,000 | 4,100,000 |
Marketing Agreement [Member] | ||
Note 17 - Commitments and Contingencies (Details) [Line Items] | ||
Purchase Obligation Term of Contract | 3 years | |
Purchase Obligation Renewal Term | 2 years | |
Marketing Expense | $ 47,800 | |
Purchase Obligation, Due in Next Twelve Months | 52,800 | |
Purchase Obligation, Due in Second Year | $ 47,900 | |
Marketing Agreement [Member] | ||
Note 17 - Commitments and Contingencies (Details) [Line Items] | ||
Marketing Expense | $ 9,500 |
Note 17 - Commitments and Con93
Note 17 - Commitments and Contingencies (Details) - Commitments - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Unfunded commitments under lines of credit | $ 64,111 | $ 55,280 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to extend credit | 21,326 | 21,137 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Standby letters of credit | $ 5,264 | $ 5,563 |
Note 18 - Regulatory Restrict94
Note 18 - Regulatory Restrictions (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Note 18 - Regulatory Restrictions (Details) [Line Items] | |||
Retained Earnings, Unappropriated (in Dollars) | $ 443 | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |
Scenario, Forecast [Member] | |||
Note 18 - Regulatory Restrictions (Details) [Line Items] | |||
Capital Conservation Buffer Required for Capital Adequacy | 2.50% |
Note 18 - Regulatory Restrict95
Note 18 - Regulatory Restrictions (Details) - Capital Amounts and Ratios - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Capital Amounts and Ratios [Abstract] | ||
Capital | $ 54,890 | $ 45,695 |
Capital to Risk Weighted Assets | 13.80% | 13.00% |
Capital Required for Capital Adequacy | $ 31,822 | $ 28,125 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 39,778 | $ 35,157 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Common Equity Tier One Risk Based Capital | $ 51,556 | |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 12.96% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | $ 17,900 | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized | $ 25,855 | |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | |
Tier One Risk Based Capital | $ 51,592 | $ 42,363 |
Tier One Risk Based Capital to Risk Weighted Assets | 12.97% | 12.05% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 23,867 | $ 14,063 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 31,822 | $ 21,094 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 6.00% |
Tier One Leverage Capital | $ 51,592 | $ 42,363 |
Tier One Leverage Capital to Average Assets | 10.83% | 10.00% |
Tier One Leverage Capital Required for Capital Adequacy | $ 19,053 | $ 16,952 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 23,816 | $ 21,190 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Note 19 - Transactions with R96
Note 19 - Transactions with Related Parties (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | ||
Related Party Deposit Liabilities | $ 16.3 | $ 6.4 |
Note 19 - Transactions with R97
Note 19 - Transactions with Related Parties (Details) - Loan Transactions with Related Parties - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loan Transactions with Related Parties [Abstract] | ||
Balance, beginning | $ 8,048 | $ 8,280 |
Balance, ending | 7,124 | 8,048 |
New loans | 3,116 | 3,859 |
Repayments | $ (4,040) | $ (4,091) |
Note 20 - Capital Transactions
Note 20 - Capital Transactions (Details) - USD ($) | Jun. 28, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Private Placement [Member] | |||
Note 20 - Capital Transactions (Details) [Line Items] | |||
Sale of Stock, Consideration Received on Transaction | $ 14,000,000 | ||
Preferred Stock Converted to Common Stock [Member] | |||
Note 20 - Capital Transactions (Details) [Line Items] | |||
Conversion of Stock, Shares Converted | 400 | ||
Conversion of Stock, Shares Issued | 64,000 | ||
Series C Preferred Stock [Member] | |||
Note 20 - Capital Transactions (Details) [Line Items] | |||
Dividends, Preferred Stock, Paid-in-kind | $ 840 | $ 840,000 | |
Series C Preferred Stock [Member] | Private Placement [Member] | |||
Note 20 - Capital Transactions (Details) [Line Items] | |||
Sale of Stock, Number of Shares Issued in Transaction | 14,000 | ||
Preferred Stock, Dividend Rate, Percentage | 6.00% | ||
Sale of Stock, Price Per Share | $ 1,000 | ||
Debt Instrument, Convertible, Conversion Price | $ 6.25 |
Note 21 - Reclassifications O99
Note 21 - Reclassifications Out of Other Comprehensive Income (Details) - Items Reclassified to Net Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Available for sale securities | ||
Tax expense related to realized gains on securities sold | $ 1,595 | $ 1,587 |
3,554 | 3,415 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Available for sale securities | ||
Realized gains on sales of securities held for sale during the period | 52 | 128 |
Tax expense related to realized gains on securities sold | 18 | 44 |
$ 34 | $ 84 |
Note 22 - Condensed Parent C100
Note 22 - Condensed Parent Company Financial Information (Details) - Condensed Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 28,745 | $ 13,795 |
Other assets | 942 | 665 |
Total assets | 479,385 | 428,209 |
Liabilities and Stockholders’ Equity | ||
Accrued interest payable | 372 | 272 |
Other liabilities | 1,521 | 1,695 |
Subordinated notes | 7,194 | |
Total liabilities | 432,994 | 384,984 |
Stockholders’ equity: | ||
Total stockholders’ equity | 46,017 | 43,225 |
Total liabilities and stockholders’ equity | 479,385 | 428,209 |
Parent Company [Member] | ||
Assets | ||
Cash and due from banks | 1,576 | 408 |
Investment in bank subsidiary | 51,951 | 42,817 |
Other assets | 7 | |
Total assets | 53,534 | 43,225 |
Liabilities and Stockholders’ Equity | ||
Accrued interest payable | 18 | |
Other liabilities | 305 | |
Subordinated notes | 7,194 | |
Total liabilities | 7,517 | |
Stockholders’ equity: | ||
Total stockholders’ equity | 46,017 | 43,225 |
Total liabilities and stockholders’ equity | $ 53,534 | $ 43,225 |
Note 22 - Condensed Parent C101
Note 22 - Condensed Parent Company Financial Information (Details) - Condensed Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||
Interest expense | $ 2,311 | $ 2,118 |
Other expenses | 1,635 | 1,346 |
Net income (loss) before income taxes | 5,206 | 5,002 |
Income tax benefit | (1,595) | (1,587) |
Net Income | 3,554 | 3,415 |
Parent Company [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Dividend from Bank subsidiary | 630 | |
Income | 630 | |
Interest expense | 19 | |
Other expenses | 181 | 143 |
Expenses | 200 | 143 |
Net income (loss) before income taxes | 430 | (143) |
Income tax benefit | 68 | 48 |
Net income (loss) before equity in undistributed net income of subsidiary | 498 | (95) |
Undistributed net income of subsidiary | 3,056 | 3,510 |
Net Income | $ 3,554 | $ 3,415 |
Note 22 - Condensed Parent C102
Note 22 - Condensed Parent Company Financial Information (Details) - Condensed Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 3,554 | $ 3,415 |
Amortization expense on subordinated notes | 1 | |
Increase in other assets | (277) | (53) |
Increase in interest payable | 100 | (14) |
Increase in other liabilities | (193) | 870 |
Net cash flows provided by (used in) operating activities | 3,018 | 5,835 |
Cash flows from investing activities: | ||
Net cash flows used in investing activities | (35,628) | (31,726) |
Cash flows from financing activities: | ||
Issuance of subordinated notes | 7,193 | |
Net cash flows provided by (used in) financing activities | 47,560 | 20,149 |
Net increase (decrease) in cash and cash equivalents | 14,950 | (5,742) |
Cash and cash equivalents, beginning | 13,795 | 19,537 |
Cash and cash equivalents, ending | 28,745 | 13,795 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | 3,554 | 3,415 |
Equity in undistributed net income of subsidiary bank | (3,056) | (3,510) |
Amortization expense on subordinated notes | 1 | |
Increase in other assets | (7) | |
Increase in interest payable | 18 | |
Increase in other liabilities | 305 | (9) |
Net cash flows provided by (used in) operating activities | 815 | (104) |
Cash flows from investing activities: | ||
Capital contribution to bank subsidiary | (6,000) | |
Net cash flows used in investing activities | (6,000) | |
Cash flows from financing activities: | ||
Issuance of subordinated notes | 7,193 | |
Preferred dividend payment | (840) | (840) |
Net cash flows provided by (used in) financing activities | 6,353 | (840) |
Net increase (decrease) in cash and cash equivalents | 1,168 | (944) |
Cash and cash equivalents, beginning | 408 | 1,352 |
Cash and cash equivalents, ending | $ 1,576 | $ 408 |
Note 23 - Subsequent Events (De
Note 23 - Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 15, 2016 | Feb. 26, 2016 | Feb. 25, 2016 | Dec. 31, 2014 |
Note 23 - Subsequent Events (Details) [Line Items] | ||||
Real Estate Owned, Transfer to Real Estate Owned (in Dollars) | $ 1,520 | |||
Scenario, Forecast [Member] | Series C Preferred Stock [Member] | ||||
Note 23 - Subsequent Events (Details) [Line Items] | ||||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 15 | |||
Subsequent Event [Member] | ||||
Note 23 - Subsequent Events (Details) [Line Items] | ||||
Real Estate Owned, Transfer to Real Estate Owned (in Dollars) | $ 473 | |||
Subsequent Event [Member] | Series C Preferred Stock [Member] | ||||
Note 23 - Subsequent Events (Details) [Line Items] | ||||
Preferred Stock, Dividends Per Share, Declared | $ 15 |