HomeTown Bankshares (HMTA) 10-K 30 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 30, 2017	Jun. 30, 2016
Document Information [Line Items]
Entity Registrant Name	HomeTown Bankshares Corp
Entity Central Index Key	1,461,640
Trading Symbol	hmta
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		5,767,175
Entity Public Float			$ 49,173,014
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 18,229	$ 28,745
Federal funds sold	42	1,329
Securities available for sale, at fair value	52,975	52,544
Restricted equity securities, at cost	2,213	2,535
Loans held for sale	678	1,643
Loans, net of allowance for loan losses of $3,636 in 2016 and $3,298 in 2015	415,355	364,060
Property and equipment, net	13,371	14,008
Other real estate owned, net of valuation allowance of $825 in 2016 and $420 in 2015	3,794	5,237
Bank owned life insurance	7,469	6,285
Accrued income	2,289	2,057
Other assets	875	942
Total assets	517,290	479,385
Liabilities and Stockholders’ Equity
Noninterest-bearing	91,354	77,268
Interest-bearing	359,494	322,278
Total deposits	450,848	399,546
Federal Home Loan Bank borrowings	8,000	22,000
Subordinated notes	7,224	7,194
Other borrowings	1,117	2,361
Accrued interest payable	386	372
Other liabilities	1,490	1,521
Total liabilities	469,065	432,994
Commitments and contingencies
Stockholders’ equity:
Common stock, $5 par value; authorized 10,000,000 shares, issued and outstanding 5,760,735 (includes 31,546 restricted shares) at December 31, 2016 and 3,362,536 (includes 37,848 restricted shares) at December 31, 2015	28,765	16,801
Surplus	17,833	15,484
Retained earnings	1,247	443
Accumulated other comprehensive income (loss)	(56)	396
Total HomeTown Bankshares Corporation stockholders’ equity	47,789	46,017
Noncontrolling interest in consolidated subsidiary	436	374
Total stockholders’ equity	48,225	46,391
Total liabilities and stockholders’ equity	517,290	479,385
Series C Preferred Stock [Member]
Stockholders’ equity:
Convertible preferred stock, no par value; Series C authorized 20,000 shares, issued and outstanding none at December 31, 2016 and 13,600 at December 31, 2015		$ 12,893

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loans, allowance for loan losses	$ 3,636	$ 3,298
Other real estate owned, valuation allowance	$ 825	$ 420
Common stock, par value (in dollars per share)	$ 5	$ 5
Common stock, authorized shares (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	5,760,735	3,362,536
Common stock, shares outstanding (in shares)	5,760,735	3,362,536
Common stock, restricted shares (in shares)	31,546	37,848
Series C Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, authorized (in shares)	20,000	20,000
Preferred stock, issued (in shares)	0	13,600
Preferred stock, outstanding (in shares)	0	13,600

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Interest and dividend income:
Loans and fees on loans	$ 17,711	$ 16,374
Taxable investment securities	837	741
Nontaxable investment securities	388	405
Dividends on restricted stock	131	140
Other interest income	107	41
Total interest and dividend income	19,174	17,701
Interest expense:
Deposits	2,216	1,898
Subordinated notes	536	19
Other borrowed funds	266	394
Total interest expense	3,018	2,311
Net interest income	16,156	15,390
Provision for loan losses	1,082
Net interest income after provision for loan losses	15,074	15,390
Noninterest income:
Service charges on deposit accounts	669	523
ATM and interchange income	670	575
Mortgage banking	854	703
Gains on sales of investment securities, net	257	52
Gain on sale of building		348
Other income	651	770
Total noninterest income	3,101	2,971
Noninterest expense:
Salaries and employee benefits	6,981	6,529
Occupancy and equipment expense	1,733	1,757
Data processing expense	950	856
Advertising and marketing expense	480	691
Professional fees	494	386
Bank franchise taxes	366	262
FDIC insurance expense	306	320
Losses on sales and writedowns of other real estate owned, net	495	346
Other real estate owned expense	97	151
Directors’ fees	411	222
Other expense	1,841	1,635
Total noninterest expense	14,154	13,155
Net income before income taxes	4,021	5,206
Income tax expense	1,440	1,595
Net income	2,581	3,611
Less net income attributable to non-controlling interest	62	57
Net income attributable to HomeTown Bankshares Corporation	2,519	3,554
Effective dividends on preferred stock	408	840
Net income available to common stockholders	$ 2,111	$ 2,714
Basic earnings per common share (in dollars per share)	$ 0.45	$ 0.79	[1]
Diluted earnings per common share (in dollars per share)	$ 0.37	$ 0.62	[1]
Weighted average common shares outstanding (in shares)	4,652,853	3,432,457	[1]
Diluted weighted average common shares outstanding (in shares)	5,776,292	5,756,586	[1]
[1]	Restated for the 4% stock dividend distributed July 11, 2016

Consolidated Statements of Inc5

Consolidated Statements of Income (Parentheticals)	Jul. 11, 2016	Jun. 11, 2016	May 10, 2016	Dec. 31, 2016	Dec. 31, 2015
Stock dividend	4.00%	4.00%	4.00%		4.00%

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Net income	$ 2,581	$ 3,611
Other comprehensive loss:
Net unrealized holding losses on securities available for sale during the period	(428)	(38)
Deferred income tax benefit on unrealized holding losses on securities available for sale	146	13
Reclassification adjustment for gains on sales of investment securities included in net income	(257)	(52)
Tax expense related to realized gains on securities sold	87	18
Total other comprehensive loss	(452)	(59)
Comprehensive income	2,129	3,552
Less: comprehensive income attributable to the non-controlling interest	62	57
Comprehensive income attributable to HomeTown Bankshares Corporation	$ 2,067	$ 3,495

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Preferred Stock [Member]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, 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 loss, net of tax					(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
Net income				2,519		62	2,581
Other comprehensive loss, net of tax					(452)		(452)
Preferred stock dividend paid				(408)			(408)
Conversion of preferred stock to common stock	(12,893)	11,315	1,578
Stock based compensation			147				147
Balance at Dec. 31, 2016		28,765	17,833	1,247	(56)	436	48,225
Net settlement of restricted stock vesting (8,519 shares, net)		(16)	(13)				(29)
Common stock dividend issued		$ 665	$ 637	$ (1,307)			$ (5)

Consolidated Statements of Cha8

Consolidated Statements of Changes in Stockholders' Equity (Parentheticals)	12 Months Ended
	Dec. 31, 2016shares
Common Stock [Member]
Net settlement of restricted stock vesting (in shares)	8,519

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 2,581	$ 3,611
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	754	762
Provision for loan losses	1,082
Amortization of premium on securities, net	591	575
Amortization of discount on subordinated notes	30	1
Gains on sales of loans held for sale	(626)	(527)
Losses on sales and writedowns of other real estate owned, net	495	346
Gains on sales of investment securities	(257)	(52)
Gain on sale of building		(348)
Net losses on fixed assets disposals	13	3
Increase in value of life insurance contracts	(184)	(163)
Stock compensation expense	147	137
Originations of loans held for sale	(25,897)	(24,690)
Proceeds from sales of loans held for sale	27,488	23,816
Changes in assets and liabilities:
Accrued income	(232)	(133)
Other assets	96	(277)
Deferred taxes, net	(56)	50
Accrued interest payable	14	100
Other liabilities	229	(193)
Net cash flows provided by operating activities	6,268	3,018
Cash flows from investing activities:
Net (increase) decrease in federal funds sold	1,287	(680)
Purchases of investment securities	(15,829)	(9,394)
Sales, maturities, and calls of available for sale securities	14,379	10,840
Redemptions (purchase) of restricted equity securities, net	322	(59)
Net increase in loans	(52,858)	(35,713)
Proceeds from sales of other real estate	1,429	1,403
Purchases of bank owned life insurance	(1,000)	(2,500)
Purchases of property and equipment	(130)	(370)
Proceeds from disposals of property and equipment		845
Net cash flows used in investing activities	(52,400)	(35,628)
Cash flows from financing activities:
Net increase in noninterest-bearing deposits	14,086	26,042
Net increase in interest-bearing deposits	37,216	10,909
Net increase (decrease) in FHLB borrowings	(14,000)	2,000
Issuance of subordinated notes, net		7,193
Net increase (decrease) in other borrowings	(1,244)	1,939
Net increase in equity of non-controlling interest		317
Preferred stock dividend payment	(408)	(840)
Net settlement of vested restricted stock and cash in lieu of fractional shares	(34)
Net cash flows provided by financing activities	35,616	47,560
Net increase (decrease) in cash and cash equivalents	(10,516)	14,950
Cash and cash equivalents, beginning	28,745	13,795
Cash and cash equivalents, ending	18,229	28,745
Supplemental disclosure of cash flow information:
Cash payments for interest	2,974	2,211
Cash payments for income taxes	1,368	2,201
Supplemental disclosure of noncash investing and financing activities:
Transfer from loans to other real estate owned	481
Change in unrealized gains and losses on available for sale securities	(685)	(90)
Conversion of preferred stock to common stock	$ 12,893	$ 400

Note 1 - Organization and Summa

Note 1 - Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	Note 1. Organization On September 4, 2009, one one on November 9, 2004 November 14, 2005. In 2013 49% 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 statement s 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 Federal Home Loan Bank ( 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 Held for Sale Secondary market mortgage loans are designated as held for sale at the time of their origination. These loans are pre-sold with servicing released and the Company does not retain any interest after the loans are sold. These loans consist primarily of fixed-rate, single-family residential mortgage loans which meet the underwriting characteristics of certain government sponsored enterprises (conforming loans). In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be committed, thus limiting interest rate risk. Loans held for sale are carried at fair value. Gains on sales of loans are recognized at the loan closing date and are included in noninterest income. 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 The interest on 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, at any point in time, may may ● 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, at any point in time, may may ● 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 ● Commercial, industrial and agricultural loans carry risks associated with the successful operation of a business . Typically repayment is dependent on the cash flow of the business, and is secured by business assets, such as accounts receivable, equipment, and inventory. There is risk associated with the value of the collateral which may ● 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 assoc iated 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 six 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 uncollectibility of a loan balance is confirmed. Consumer loans are charged off when they become 120 180 may 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 third may ● 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 ● 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 may may ● 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 forty and leasehold improvements, and from three ten Other Real Estate Owned 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 “Losses on sales and writedowns of other real estate owned, net.” Bank Owned Life Insurance The Company purchased seven 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) (2) (3) 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 in the consolidated statement of income. There are no unrecognized tax benefits as of December 31, 2016 2015. 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 June 29, 2016. $6.25 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 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 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 April 20, 2006, 550,000 2016. ’s maximum term was ten 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 was 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, 137,280 4% 2016) five ’s common stock on the date the restricted shares are awarded. Recent Accounting Pronouncements In August 2014, 2014 15, – Going Concern (Subtopic 205 40): one December 15, 2016. 2014 15 In January 2016, 2016 01, – Overall (Subtopic 825 10): 2016 01, 1) 2) 3) 4) December 15, 2017, 2016 01 In February 2016, 2016 02, 842).” 2016 02, (1) ‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) 606, December 15, 2018, may 2016 02 In March 2016, 2016 07, 323): The amendments in this ASU 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. In addition, the amendments in this ASU 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. 2016 07 In March 2016, 2016 09, – Stock Compensation (Topic 718): December 15, 2016, 2016 09 second 2016. In June 2016, 2016 13, – Credit Losses (Topic 326): December 15, 2019. December 15, 2020. 2016 13 In August 2016, 2016 15, 230): December 15, 2017, 2016 15 In January 2017, 2017 01, 805): 805, three —inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. The amendments in this ASU provide a screen to determine when a set is not a business. If the screen is not met, the amendments (1) (2) December 15, 2017, 2017 01

Note 2 - Investment Securities

Note 2 - Investment Securities	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	Note 2. A mortized cost and fair value of securities available for sale are as follows: (Dollars In Thousands) December 31, 201 6 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agency securities $ 12,422 $ 118 $ (96 ) $ 12,444 Mortgage-backed securities and CMO’s 19,979 54 (265 ) 19,768 Corporate securities 5,000 66 - 5,066 Municipal securities 15,659 266 (228 ) 15,697 $ 53,060 $ 504 $ (589 ) $ 52,975 (Dollars In Thousands) December 31, 201 5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agency securities $ 16,899 $ 227 $ (107 ) $ 17,019 Mortgage-backed securities and CMO’s 18,289 75 (174 ) 18,190 Municipal securities 16,756 594 (15 ) 17,335 $ 51,944 $ 896 $ (296 ) $ 52,544 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, 201 6, U.S. Government agency securities . twenty one December 31, 2016. Mortg age-backed securitie s and CMO’s . thirty two December 31, 2016. Corporate securities . The unrealized loss on one December 31, 2016. Municipal securities . nineteen December 31, 2016. The following tables demonstrate the unrealized loss position of securities availab le for sale at December 31, 2016 2015. December 31, 2016 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 $ 3,492 $ (32 ) $ 3,491 $ (64 ) $ 6,983 $ (96 ) Mortgage-backed securities and CMO’s 14,232 (235 ) 1,474 (30 ) 15,706 (265 ) Corporate securities 500 - - - 500 - Municipal securities 6,967 (223 ) 262 (5 ) 7,229 (228 ) $ 25,191 $ (490 ) $ 5,227 $ (99 ) $ 30,418 $ (589 ) 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 $ 1,999 $ (24 ) $ 4,924 $ (83 ) $ 6,923 $ (107 ) Mortgage-backed securities and CMO’s 10,326 (114 ) 3,069 (60 ) 13,395 (174 ) Municipal securities 805 (10 ) 526 (5 ) 1,331 (15 ) $ 13,130 $ (148 ) $ 8,519 $ (148 ) $ 21,649 $ (296 ) The amortized cost and estimated fair value of securities at December 31, 2016, may (Dollars In Thousands) Amortized Cost Fair Value Less than one year $ 112 $ 112 Over one through five years 1,394 1,406 Over five through ten years 15,857 15,889 Greater than 10 years 35,697 35,568 $ 53,060 $ 52,975 Proceeds from the sales, maturities and calls of secur ities available for sale in 2016 2015 $14.4 $10.8 $257 fourteen 2016, $52 six 2016 $262 $5 $67 $15 $6.2 December 31, 2016 $7.4 December 31, 2015. December 31, 2016, $3.7 $1.0 $1.5

Note 3 - Loans Receivable

Note 3 - Loans Receivable	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	Note 3. The major classifications of loans in the consolidated balance sheets at December 31, 2016 2015 (Dollars In Thousands) December 31, 201 6 2015 Construction: Residential $ 10,204 $ 11,779 Land acquisition, development & commercial 27,480 27,440 Real Estate: Residential 111,626 100,268 Commercial 172,248 140,952 Commercial, industrial & agricultural 59,702 52,943 Equity lines 29,956 26,376 Consumer 7,668 7,531 Overdrafts 107 69 Total loans 418,991 367,358 Less allowance for loan losses (3,636 ) (3,298 ) Loans, net $ 415,355 $ 364,060 The past -due and nonaccrual status of loans as of December 31, 2016 (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 $ − $ − $ − $ − $ 10,204 $ 10,204 $ − Land acquisition, development & commercial − − − − 27,480 27,480 − Real Estate: Residential 672 193 577 1,442 110,184 111,626 577 Commercial 115 − − 115 172,133 172,248 336 Commercial, industrial & agricultural 60 33 − 93 59,716 59,809 11 Equity lines 258 − − 258 29,698 29,956 − Consumer 8 6 4 18 7,650 7,668 − Total $ 1,113 $ 232 $ 581 $ 1,926 $ 417,065 $ 418,991 $ 924 The past -due and nonaccrual status of loans as of December 31, 2015 (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 There were two $4 ninety December 31, 2016. two $842 ninety December 31, 2015. Impaired loans, which include TDRs of $ 6.4 December 31, 2016, 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 770 770 – 629 (11 ) Commercial 6,380 6,556 – 6,521 255 Commercial, industrial & agricultural 11 11 – 11 − Equity lines − − – − − Consumer − − – − − Total loans with no allowance $ 7,161 $ 7,337 $ – $ 7,161 $ 244 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 115 115 17 122 − Commercial, industrial & agricultural − − − − − Equity lines − − − − − Consumer − − − − − Total loans with an allowance $ 115 $ 115 $ 17 $ 122 $ − Impaired loans, which include TDRs of $6. 7 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 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 $ – Troubled Debt Restructurings At December 31, 2016, five $6.4 five $6.2 2016. two one $231 2016. five December 31, 2016. At December 31, 2015, six $6.7 six $6.4 2015. two $252 one one two 2015. two December 31, 2015 2014. six December 31, 2015. There was no valuation allowance related to total TDRs at December 31, 2016, December 31, 2015. No loans were modified in a TDR during the year ended December 31, 2016. The following table presents by class of loan, information related to the loan mod ified into two December 31, 2015: Loans modified as TDR s 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 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 may may may may may

Note 4 - Allowance for Loan Los

Note 4 - Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Allowance for Credit Losses [Text Block]	Note 4. The following table presents, as of December 31, 2016, December 31, 2016 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 $ 83 $ − $ − $ (20 ) $ 63 $ − $ 63 $ 10,204 $ − $ 10,204 Land acquisition, development & commercial 187 (2 ) − (12 ) 173 − 173 27,480 − 27,480 Real estate: Residential 1,047 (4 ) 45 (222 ) 866 − 866 111,626 770 110,856 Commercial 1,001 (606 ) − 1,121 1,516 17 1,499 172,248 6,495 165,753 Commercial, industrial & agricultural 531 (34 ) − (36 ) 461 − 461 59,809 11 59,798 Equity lines 277 (99 ) 10 150 338 − 338 29,956 − 29,956 Consumer 85 (103 ) 49 66 97 − 97 7,668 − 7,668 Unallocated 87 − − 35 122 − 122 − − − Total $ 3,298 $ (848 ) $ 104 $ 1,082 $ 3,636 $ 17 $ 3,619 $ 418,991 $ 7,276 $ 411,715 The following table presents, as of December 31, 2015, December 31, 2015 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 Loans by credit quality indicators as of December 31, 2016 (Dollars In Thousands) Pass Special Mention Substandard Accruing Substandard Nonaccrual Total Construction loans: Residential $ 10,204 $ − $ − $ − $ 10,204 Land acquisition, development & commercial 27,480 − − − 27,480 Real estate loans: Residential 110,856 − 193 577 111,626 Commercial 171,369 − 543 336 172,248 Commercial, industrial, agricultural 59,120 78 600 11 59,809 Equity lines 29,956 − − − 29,956 Consumer 7,668 − − − 7,668 Total Loans $ 416,653 $ 78 $ 1,336 $ 924 $ 418,991 At December 31, 2016, Loans by credit quality indicators as of December 31, 2015 (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,

Note 5 - Foreclosed Properties

Note 5 - Foreclosed Properties	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Real Estate Owned [Text Block]	Note 5. Changes in other real estate owned for 201 6 (Dollars In Thousands) Other Real Estate Owned Valuation Allowance Net Balance at the beginning of the year $ 5,657 $ (420 ) $ 5,237 Additions 481 — 481 Writedowns — (405 ) (405 ) Sales (1,519 ) — (1,519 ) Balance at the end of the year $ 4,619 $ (825 ) $ 3,794 Changes in other real estate owned for 2015 (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 The major classifications of other real estate owned in the consolidated balance sheets at December 31, 2016 December 31, 2015 (Dollars In Thousands) 201 6 2015 Residential lots $ 2,234 $ 2,520 Residential development 423 423 Commercial lots 90 90 Commercial buildings 1,047 2,204 Total Other Real Estate Owned $ 3,794 $ 5,237 Other real estate owned related expenses in the consolidated statements of income for the years ended December 31, 2016 December 31, 2015 (Dollars In Thousands) 201 6 2015 Net loss on sales $ 90 $ — Provision for unrealized losses 405 346 Operating expenses 97 151 Total Other Real Estate Owned $ 592 $ 497

Note 6 - Property and Equipment

Note 6 - Property and Equipment	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	Note 6. The major components of property and equipment at December 31, 2016 2015 (Dollars In Thousands) 201 6 2015 Land $ 4,309 $ 4,309 Buildings and improvements 8,617 8,611 Leasehold improvements 2,156 2,149 Furniture and equipment 3,214 3,113 Software 556 554 Construction in process 10 13 Property and equipment, total 18,862 18,749 Less accumulated depreciation and amortization 5,491 4,741 Property and equipment, net $ 13,371 $ 14,008 Depreciation and amortization e xpense was $754 $762 December 31, 2016 2015, Leases The Company currently leases its main office under a non-cancelable lease agreement. The lease has a ten December 31, 2025. one ten January 1, 2017, three July 31, 2016. one ten two five July 31, 2026. eight April 1, 2013 April 1, 2021. two five three twelve 60 May 31 September 30. The current minimum annual lease payments under non-cancelable lease s in effect at December 31, 2016 (Dollars In Thousands) 201 6 201 7 $ 288 201 8 274 201 9 274 20 20 274 202 1 268 Thereafter 1,145 Total $ 2,523 Rent expense for t he years ended December 31, 2016 2015 $307 $333 2016 2015: (Dollars In Thousands) 2016 2015 Minimum rentals $ 298 $ 291 Contingent rentals 9 42 Total $ 307 $ 333

Note 7 - Deposits

Note 7 - Deposits	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Deposit Liabilities Disclosures [Text Block]	Note 7. The aggregate amount of time deposits in denominations of over two fifty December 31, 2016 2015 $9.8 $10.0 A t December 31, 2016, (Dollars In Thousands) 201 6 2017 $ 94,235 2018 27,465 2019 14,218 2020 7,144 2021 5,608 Total $ 148,670 The Company obtains certain deposits through the efforts of third December 31, 2016 2015, $28.5 $34.2 5% 2016.

Note 8 - Federal Home Loan Bank

Note 8 - Federal Home Loan Bank Borrowings	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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 $8.0 $22.0 December 31, 2016 2015, December 31, 2016 two $8.0 At December 31, 2016 2015, (Dollars In Thousands ) Advanc e Dat e Maturit y Dat e Conversio n Dat e Current Rat e 201 6 201 5 September 7, 200 7 September 7, 201 7 Quarterl y 3.690% $ - $ 4,000 April 13, 201 2 April 13, 201 6 1.265% - 12,000 June 17, 201 4 June 17, 201 6 0.670% - 2,000 January 14, 201 5 January 16, 201 8 1.090% 4,000 4,000 August 19, 201 6 August 20, 201 8 2.535% 4,000 - $ 8,000 $ 22,000 The Company had collateral pledged on these borrowings at December 31, 2016, $28.0 $1.0 $814

Note 9 - Subordinated Notes

Note 9 - Subordinated Notes	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Subordinated Borrowings Disclosure [Text Block]	Note 9 . Subordinated Notes On December 18, 2015, the issuance of $7.5 December 30, 2025 6.75% December 30, 2020. June 30 December 30 March 30, June 30, September 30 December 30 (Dollars in Thousands) As of December 31, 2016 Principal Unamortized Debt Issuance Costs Net Subordinated notes $ 7,500 $ 276 $ 7,224 (Dollars in Thousands) As of December 31, 2015 Principal Unamortized Debt Issuance Costs Net Subordinated notes $ 7,500 $ 306 $ 7,194 For the year s ended December 31, 2016 2015, 7.44% 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 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, 2016
Notes to Financial Statements
Short-term Debt [Text Block]	Note 10. Other borrowings consist of the following at December 31, 2016 2015: (Dollars In Thousands) 201 6 2015 Securities sold under agreements to repurchase $ 452 $ 759 Warehouse line of credit 665 1,602 $ 1,117 $ 2,361 Weighted average interest rate at December 31 2.07 % 2.25 % Securities sold under agreements to repurchase are secured transactions with customers and generally mature the day following the day sold. Short-term borrowings may $5.0 $665 2016 2.75%. $36.5 2016. $10.0 one one 11 20 December 31, 2016 2015,

Note 11 - Fair Value Measuremen

Note 11 - Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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 two Level 1 Level 2 , 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 one 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: 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). may 2). The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 2015: (Dollars In Thousands) Carrying value at December 31, 2016 Description Balance as of December 31, 201 6 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 $ 12,444 $ – $ 12,444 $ – Mortgage-backed securities and CMO ’s 19,768 – 19,768 – Corporate securities 5,066 – 5,066 – Municipal securities 15,697 – 15,697 – (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 $ 17,019 $ – $ 17,019 $ – Mortgage-backed securities and CMO ’s 18,190 – 18,190 – Municipal securities 17,335 – 17,335 – 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: The Company does not record loans at fair value on a recurring basis. However, from time to time a loan is considered impaired and a specific reserve is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures the extent of any loss. The fair value of impaired loans is estimated using one 2. 3. Loans held for sale: The carrying value of these loans approximates the fair value. These loans close in the name of the Bank’s consolidated joint venture subsidiary HomeTown Residential Mortgage, LLC, but are generally sold within a two Other Real Estate Owned (OREO) : The carrying amount of real estate owned by the Company resulting from foreclosures is estimated at the lesser of cost or the fair value of the real estate based on an observable market price or a current appraised value less selling costs. If carried at market price based on appraised value using observable market data, it is recorded as nonrecurring Level 2. 3. The following table summarizes the Company ’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2016 2015. (Dollars In Thousands) Carrying value at December 31, 2016 Description Balance as of December 31, 2016 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 $ 98 $ – $ – $ 98 Loans held for sale 678 – 678 – Other real estate owned 3,794 – – 3,794 (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 At December 31, 2016 December 31, 2015, The following table displays quantitative information about Level 3 December 31, 2016: (Dollars In Thousands) Quantitative information about Level 3 Fair Value Measurements for December 31, 201 6 Assets Fair Value Valuation Technique(s) Unobservable input Range (Weighted Average) Impaired loans $ 98 Discounted appraised value Residual cash flows discount rate 6% - 6% (6%) Other real estate owned $ 1,560 Discounted appraised value Selling cost 6% - 6% (6%) Discount for lack of marketability and age of appraisal 4% - 12% (10%) $ 2,234 Internal evaluations Internal evaluations 4% - 54% (24%) The following table displays quantitative information about Level 3 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 Residual cash flows discount rate 6% - 6% (6%) 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 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 three 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). -party vendors compile prices from various sources and may 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 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 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 values is 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 2). 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, 2016 2015, The carrying amounts and approximate fair values of the Company's financial instruments are as follows at December 31, 2016: (Dollars In Thousands) Fair value at December 31, 2016 Description Carrying value as of December 31, 201 6 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 $ 18,229 $ 17,479 $ 760 $ – $ 18,239 Federal funds sold 42 42 – – 42 Securities available for sale 52,975 – 52,975 – 52,975 Restricted equity securities 2,213 – 2,213 – 2,213 Loans held for sale 678 – 678 – 678 Loans, net 415,355 – – 415,039 415,039 Bank owned life insurance 7,469 – 7,469 – 7,469 Accrued income 2,289 – 2,289 – 2,289 Financial liabilities Total deposits 450,848 – 451,385 – 451,385 FHLB borrowings 8,000 – 8,031 – 8,031 Subordinated notes 7,224 – 8,012 – 8,012 Other borrowings 1,117 – 1,117 – 1,117 Accrued interest payable 386 – 386 – 386 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

Note 12 - Earnings Per Common S

Note 12 - Earnings Per Common Share	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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 shar eholders for the year ended December 31, 2016, December 31, 2015, For the Years Ended December 31, 2016 2015 Dollars In Thousands, except share and per share data Weighted Average Common Shares Outstanding Net Income Available to Common Shareholders Per Share Amount Weighted Average Common Shares Outstanding Net Income Available to Common Shareholders Per Share Amount Earnings per common share, basic 4,652,853 $ 2,111 $ 0.45 3,432,457 * $ 2,714 $ 0.79 * Series C Preferred Stock Dividends − 840 Effect of dilutive securities: Convertible preferred stock 1,112,970 − (0.08 ) 2,324,129 * − (0.17 )* Dilutive stock options 10,469 − − − − − Earnings per common share, diluted 5,776,292 $ 2,111 $ 0.37 5,756,586 * $ 3,554 $ 0.62 * * Restated for the 4% July 11, 2016. At December 31, 2016 2015, 190,531 546,460,

Note 13 - Stock Based Compensat

Note 13 - Stock Based Compensation	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 1 3 . Stock Based Compensation The Company recorded stock based compensation expense of $ 147 $137 December 31, 2016 2015, The 2005 2016, The Company used the Black-Scholes option pricing model to determine the fair value of stock options. The fair value of the stock based payment awards was affected by the price of the Company's stock and a number of financial assumptions and variables. These variables included 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 2016 2015. $75 2016 2015. December 31, 2016, $211 three 4% July 11, 2016 A summary of option activity under the 2005 December 31, 2016 Options Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value (1) Weighted Average Contractual Term (years) Balance at December 31, 2015 546,460 $ 8.62 Granted – – Exercised – – Expired (339,460 ) 9.13 Forfeited (6,000 ) 6.90 Balance at December 31, 2016 201,000 $ 7.80 $ 368,950 6.51 Exercisable at December 31, 2016 109,200 $ 8.56 $ 153,220 5.28 (1) December 31, 2016. In 2009, 137,280* five -year period and compensation expense is charged to income ratably over the vesting period and was $72 2016 $62 2015. 2016 $9.09* $7.60* 2015. 11,149* 11,404* 2016 2015, As of December 31, 2016, $165 2021. 2016 2015 Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Nonvested at beginning of year 39,352 * $ 6.00 * 39,227 * $ 5.35 * Granted 11,149 * 9.09 * 11,404 * 7.60 * Vested (12,167) * 5.63 * (11,279) * 5.34 * Forfeited (6,788) * 6.99 * – * – * Nonvested at the end of the period 31,546 * $ 7.03 * 39,352 * $ 6.00 * * Restated for the 4% July 11, 2016.

Note 14 - Salary Continuation P

Note 14 - Salary Continuation Plan	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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% five 20% five 2016, 2015, $666 $315 2016 2015, $351 2016 $186 2015.

Note 15 - Employee Benefit Plan

Note 15 - Employee Benefit Plan	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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) may 100% ’s deferral up to 3% 50% 3% may $240 $209 December 31, 2016 2015,

Note 16 - Income Taxes

Note 16 - Income Taxes	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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 20 13. The current and deferred components of income tax expense for the periods ended December 31, 2016 2015 (Dollars In Thousands) 20 16 2015 Current $ 1,496 $ 1,514 Deferred (56 ) 81 Income tax expense $ 1,440 $ 1,595 Rate Reconciliation Total income tax expense differed from the “expected” amount computed by applying the U.S. Federal income tax rate of 34 (Dollars In Thousands) 2016 2015 Tax at statutory federal rate $ 1,367 $ 1,770 Tax-exempt interest income (201 ) (196 ) Cash surrender value of life insurance (63 ) (55 ) Incentive stock options 261 47 Other 76 29 Income tax expense $ 1,440 $ 1,595 Deferred Income Tax Analysis The significant components of net deferred taxes at December 31, 2016 2015 (Dollars In Thousands) 201 6 2015 Deferred tax assets Pre-opening expenses $ 62 $ 78 Allowance for loan losses 693 518 Stock-based compensation – 236 Deferred compensation 226 107 Other real estate expenses 280 143 Unrealized loss on securities available for sale 29 – Nonaccrual loan interest 17 11 Other 21 – Deferred tax asset 1,328 1,093 Deferred tax liabilities Property and equipment 305 327 Unrealized gain on securities available for sale – 204 Deferred loan fees 980 821 Other 13 – Deferred tax liability 1,298 1,352 Net deferred tax asset (liability) $ 30 $ (259 )

Note 17 - Commitments and Conti

Note 17 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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. Credit Related Financial Instruments 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, 2016 2015 (Dollars In Thousands) 201 6 2015 Commitments to extend credit $ 102,277 $ 85,437 Standby letters of credit 4,255 5,264 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 ’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 Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third The Company is required to maintain certain required reserve balances with the Federal Reserve Bank. At December 31, 2016 2015, $6.6 $3.9 The Company from time to time may Balances in excess of FDIC insured amounts totaled $7.2 $3.8 December 31, 2016 2015, Purchase Obligation On November 1 , 2015, three July 1, 2016. five $57.5 $47.8 2016 2015, $65.0 2017 2018, $66.0 2019, $68.0 2020 $34.5 first 2021,

Note 18 - Regulatory Restrictio

Note 18 - Regulatory Restrictions	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Regulatory Capital Requirements under Banking Regulations [Text Block]	Note 1 8 . Regulatory Restrictions Dividends The Company, as a Virginia banking corporation, may may determined that such a limitation is in the public interest and is necessary to ensure financial soundness of the Company. At December 31, 2016, $1.2 2016 2015. 2016 20 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 January 1, 2019. 1 Prompt corrective action regulations provide five 201 6 2015, 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, July 2013, The new rule s introduced the requirement of a new 2.5% January 1, 2016, January 1, 2019. January 1, 2016 2015, (1) 1 5.125% 4.5% (2) 1 6.625% 6% (3) 8.625% 8% (4) 4% 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, 2016, The Bank ’s actual capital amounts and ratios are also presented in the following tables: HomeTown Bank December 31, 2016 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) $ 58,436 12.59 % $ 40,045 8.625 % $ 46,429 10.00 % Tier I Common Equity (to Risk-Weighted Assets) $ 54,783 11.80 % $ 23,795 5.125 % $ 30,179 6.50 % Tier I Capital (to Risk-Weighted Assets) $ 54,800 11.80 % $ 30,759 6.625 % $ 37,143 8.00 % Tier I Capital (to Average Assets) $ 54,800 10.67 % $ 20,537 4.00 % $ 25,671 5.00 % 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 % T ier 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 %

Note 19 - Transactions with Rel

Note 19 - Transactions with Related Parties	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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) 201 6 2015 Balance, beginning $ 7,124 $ 8,048 New loans 5,261 3,116 Repayments (4,191 ) (4,040 ) Balance, ending $ 8,194 $ 7,124 Repayments of loans to related parties include $575 2016. Aggregate deposit balances with related parties at December 31, 2016 2015 $16.7 $16.3

Note 20 - Capital Transactions

Note 20 - Capital Transactions	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 20 . Capital Transaction s The Board of Directors declared a 4% May 10, 2016 June 9, 2016. July 11, 2016. 134,177. On June 28, 2013, $14,000,000 April 17, 2013 14,000 6.0% $1,000 paid quarterly dividends equivalent to six (6.0%) $6.25 $408 $840 2016 2015, 2015, 400 64,000 13,600 2,176,000 June 29, 2016. 4% May 10, 2016 87,037

Note 21 - Reclassifications Out

Note 21 - Reclassifications Out of Other Comprehensive Income	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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, 2016 2015 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 6 2015 Available for sale securities Realized gains on sales of securities held for sale during the period $ 257 $ 52 Gains on sales of investment securities Tax expense related to realized gains on securities sold 87 18 Income tax expense $ 170 $ 34 Net income

Note 22 - Condensed Parent Comp

Note 22 - Condensed Parent Company Financial Information	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
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. CONDENSED BALANCE SHEETS Dollars In Thousands December 31, 2016 December 31, 2015 Assets Cash and due from banks $ 298 $ 1,576 Investment in bank subsidiary 54,727 51,951 Other assets — 7 Total assets $ 55,025 $ 53,534 Liabilities and Stockholders ’ Equity Accrued interest payable $ — $ 18 Other liabilities 12 305 Subordinated notes 7,224 7,194 Total liabilities 7,236 7,517 Stockholders ’ equity: Total stockholders ’ equity 47,789 46,017 Total liabilities and stockholders ’ equity $ 55,025 $ 53,534 CONDENSED STATEMENTS OF INCOME Dollars In Thousands For the year ended December 31, 2016 For the year ended December 31, 2015 Dividend from Bank subsidiary $ — $ 630 Income — 630 Interest expense 536 18 Other expenses 302 182 Expenses 838 200 Net income (loss) before income taxes (838 ) 430 Income tax benefit 278 68 Net income (loss) before equity in undistributed net income of subsidiary (560 ) 498 Undistributed net income of subsidiary 3,079 3,056 Net Income $ 2,519 $ 3,554 CONDENSED STATEMENTS OF CASH FLOWS Dollars In Thousands For the year ended December 31, 201 6 For the year ended December 31, 2015 Cash flows from operating activities: Net income $ 2,519 $ 3,554 Equity in undistributed net income of subsidiary bank (3,079 ) (3,056 ) Amortization expense on subordinated notes 30 1 ( Increase) decrease in other assets 7 (7 ) Increase in interest payable (18 ) 18 Increase (decrease) in other liabilities (295 ) 305 Net cash flows provided by (used in) operating activities (836 ) 815 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 (408 ) (840 ) Net settlement of vested restricted stock (29 ) — Cash in lieu of fractional shares (5 ) — Net cash flows provided by (used in) financing activities (442 ) 6,353 Net increase (decrease) in cash and cash equivalents (1,278 ) 1,168 Cash and cash equivalents, beginning 1,576 408 Cash and cash equivalents, ending $ 298 $ 1,576 Supplemental disclosure of cash flow information: Cash payments for interest $ 554 $ —

Note 23 - Subsequent Events

Note 23 - Subsequent Events	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	Note 23 . Subsequent Events In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date of this filing, and there were no reportable subsequent events.

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
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 statement s 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 Federal Home Loan Bank ( 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, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]	Loans Held for Sale Secondary market mortgage loans are designated as held for sale at the time of their origination. These loans are pre-sold with servicing released and the Company does not retain any interest after the loans are sold. These loans consist primarily of fixed-rate, single-family residential mortgage loans which meet the underwriting characteristics of certain government sponsored enterprises (conforming loans). In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be committed, thus limiting interest rate risk. Loans held for sale are carried at fair value. Gains on sales of loans are recognized at the loan closing date and are included in noninterest income.
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 The interest on 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, at any point in time, may may ● 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, at any point in time, may may ● 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 ● Commercial, industrial and agricultural loans carry risks associated with the successful operation of a business . Typically repayment is dependent on the cash flow of the business, and is secured by business assets, such as accounts receivable, equipment, and inventory. There is risk associated with the value of the collateral which may ● 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 assoc iated 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 six
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 uncollectibility of a loan balance is confirmed. Consumer loans are charged off when they become 120 180 may 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 third may ● 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 ● 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 may may ● 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 forty and leasehold improvements, and from three ten
Real Estate, Policy [Policy Text Block]	Other Real Estate Owned 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 “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 seven 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) (2) (3)
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 in the consolidated statement of income. There are no unrecognized tax benefits as of December 31, 2016 2015.
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 June 29, 2016. $6.25
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 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
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 April 20, 2006, 550,000 2016. ’s maximum term was ten 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 was 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, 137,280 4% 2016) five ’s common stock on the date the restricted shares are awarded.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In August 2014, 2014 15, – Going Concern (Subtopic 205 40): one December 15, 2016. 2014 15 In January 2016, 2016 01, – Overall (Subtopic 825 10): 2016 01, 1) 2) 3) 4) December 15, 2017, 2016 01 In February 2016, 2016 02, 842).” 2016 02, (1) ‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) 606, December 15, 2018, may 2016 02 In March 2016, 2016 07, 323): The amendments in this ASU 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. In addition, the amendments in this ASU 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. 2016 07 In March 2016, 2016 09, – Stock Compensation (Topic 718): December 15, 2016, 2016 09 second 2016. In June 2016, 2016 13, – Credit Losses (Topic 326): December 15, 2019. December 15, 2020. 2016 13 In August 2016, 2016 15, 230): December 15, 2017, 2016 15 In January 2017, 2017 01, 805): 805, three —inputs, processes, and outputs. While an integrated set of assets and activities (collectively referred to as a “set”) that is a business usually has outputs, outputs are not required to be present. In addition, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs. The amendments in this ASU provide a screen to determine when a set is not a business. If the screen is not met, the amendments (1) (2) December 15, 2017, 2017 01

Note 2 - Investment Securities

Note 2 - Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	(Dollars In Thousands) December 31, 201 6 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agency securities $ 12,422 $ 118 $ (96 ) $ 12,444 Mortgage-backed securities and CMO’s 19,979 54 (265 ) 19,768 Corporate securities 5,000 66 - 5,066 Municipal securities 15,659 266 (228 ) 15,697 $ 53,060 $ 504 $ (589 ) $ 52,975 (Dollars In Thousands) December 31, 201 5 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Government agency securities $ 16,899 $ 227 $ (107 ) $ 17,019 Mortgage-backed securities and CMO’s 18,289 75 (174 ) 18,190 Municipal securities 16,756 594 (15 ) 17,335 $ 51,944 $ 896 $ (296 ) $ 52,544
Schedule of Unrealized Loss on Investments [Table Text Block]	December 31, 2016 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 $ 3,492 $ (32 ) $ 3,491 $ (64 ) $ 6,983 $ (96 ) Mortgage-backed securities and CMO’s 14,232 (235 ) 1,474 (30 ) 15,706 (265 ) Corporate securities 500 - - - 500 - Municipal securities 6,967 (223 ) 262 (5 ) 7,229 (228 ) $ 25,191 $ (490 ) $ 5,227 $ (99 ) $ 30,418 $ (589 ) 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 $ 1,999 $ (24 ) $ 4,924 $ (83 ) $ 6,923 $ (107 ) Mortgage-backed securities and CMO’s 10,326 (114 ) 3,069 (60 ) 13,395 (174 ) Municipal securities 805 (10 ) 526 (5 ) 1,331 (15 ) $ 13,130 $ (148 ) $ 8,519 $ (148 ) $ 21,649 $ (296 )
Investments Classified by Contractual Maturity Date [Table Text Block]	(Dollars In Thousands) Amortized Cost Fair Value Less than one year $ 112 $ 112 Over one through five years 1,394 1,406 Over five through ten years 15,857 15,889 Greater than 10 years 35,697 35,568 $ 53,060 $ 52,975

Note 3 - Loans Receivable (Tabl

Note 3 - Loans Receivable (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	(Dollars In Thousands) December 31, 201 6 2015 Construction: Residential $ 10,204 $ 11,779 Land acquisition, development & commercial 27,480 27,440 Real Estate: Residential 111,626 100,268 Commercial 172,248 140,952 Commercial, industrial & agricultural 59,702 52,943 Equity lines 29,956 26,376 Consumer 7,668 7,531 Overdrafts 107 69 Total loans 418,991 367,358 Less allowance for loan losses (3,636 ) (3,298 ) Loans, net $ 415,355 $ 364,060
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 $ − $ − $ − $ − $ 10,204 $ 10,204 $ − Land acquisition, development & commercial − − − − 27,480 27,480 − Real Estate: Residential 672 193 577 1,442 110,184 111,626 577 Commercial 115 − − 115 172,133 172,248 336 Commercial, industrial & agricultural 60 33 − 93 59,716 59,809 11 Equity lines 258 − − 258 29,698 29,956 − Consumer 8 6 4 18 7,650 7,668 − Total $ 1,113 $ 232 $ 581 $ 1,926 $ 417,065 $ 418,991 $ 924 (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
Impaired Financing Receivables [Table Text Block]	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 770 770 – 629 (11 ) Commercial 6,380 6,556 – 6,521 255 Commercial, industrial & agricultural 11 11 – 11 − Equity lines − − – − − Consumer − − – − − Total loans with no allowance $ 7,161 $ 7,337 $ – $ 7,161 $ 244 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 115 115 17 122 − Commercial, industrial & agricultural − − − − − Equity lines − − − − − Consumer − − − − − Total loans with an allowance $ 115 $ 115 $ 17 $ 122 $ − 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 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 $ –
Troubled Debt Restructurings on Financing Receivables [Table Text Block]	Loans modified as TDR s 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

Note 4 - Allowance for Loan L36

Note 4 - Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Allowance for Credit Losses on Financing Receivables [Table Text Block]	December 31, 2016 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 $ 83 $ − $ − $ (20 ) $ 63 $ − $ 63 $ 10,204 $ − $ 10,204 Land acquisition, development & commercial 187 (2 ) − (12 ) 173 − 173 27,480 − 27,480 Real estate: Residential 1,047 (4 ) 45 (222 ) 866 − 866 111,626 770 110,856 Commercial 1,001 (606 ) − 1,121 1,516 17 1,499 172,248 6,495 165,753 Commercial, industrial & agricultural 531 (34 ) − (36 ) 461 − 461 59,809 11 59,798 Equity lines 277 (99 ) 10 150 338 − 338 29,956 − 29,956 Consumer 85 (103 ) 49 66 97 − 97 7,668 − 7,668 Unallocated 87 − − 35 122 − 122 − − − Total $ 3,298 $ (848 ) $ 104 $ 1,082 $ 3,636 $ 17 $ 3,619 $ 418,991 $ 7,276 $ 411,715 December 31, 2015 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
Financing Receivable Credit Quality Indicators [Table Text Block]	(Dollars In Thousands) Pass Special Mention Substandard Accruing Substandard Nonaccrual Total Construction loans: Residential $ 10,204 $ − $ − $ − $ 10,204 Land acquisition, development & commercial 27,480 − − − 27,480 Real estate loans: Residential 110,856 − 193 577 111,626 Commercial 171,369 − 543 336 172,248 Commercial, industrial, agricultural 59,120 78 600 11 59,809 Equity lines 29,956 − − − 29,956 Consumer 7,668 − − − 7,668 Total Loans $ 416,653 $ 78 $ 1,336 $ 924 $ 418,991 (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

Note 5 - Foreclosed Properties

Note 5 - Foreclosed Properties (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Forclosed Properties [Table Text Block]	(Dollars In Thousands) Other Real Estate Owned Valuation Allowance Net Balance at the beginning of the year $ 5,657 $ (420 ) $ 5,237 Additions 481 — 481 Writedowns — (405 ) (405 ) Sales (1,519 ) — (1,519 ) Balance at the end of the year $ 4,619 $ (825 ) $ 3,794 (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
Schedule of Real Estate Properties [Table Text Block]	(Dollars In Thousands) 201 6 2015 Residential lots $ 2,234 $ 2,520 Residential development 423 423 Commercial lots 90 90 Commercial buildings 1,047 2,204 Total Other Real Estate Owned $ 3,794 $ 5,237 (Dollars In Thousands) 201 6 2015 Net loss on sales $ 90 $ — Provision for unrealized losses 405 346 Operating expenses 97 151 Total Other Real Estate Owned $ 592 $ 497

Note 6 - Property and Equipme38

Note 6 - Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Property, Plant and Equipment [Table Text Block]	(Dollars In Thousands) 201 6 2015 Land $ 4,309 $ 4,309 Buildings and improvements 8,617 8,611 Leasehold improvements 2,156 2,149 Furniture and equipment 3,214 3,113 Software 556 554 Construction in process 10 13 Property and equipment, total 18,862 18,749 Less accumulated depreciation and amortization 5,491 4,741 Property and equipment, net $ 13,371 $ 14,008
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	(Dollars In Thousands) 201 6 201 7 $ 288 201 8 274 201 9 274 20 20 274 202 1 268 Thereafter 1,145 Total $ 2,523
Schedule of Rent Expense [Table Text Block]	(Dollars In Thousands) 2016 2015 Minimum rentals $ 298 $ 291 Contingent rentals 9 42 Total $ 307 $ 333

Note 7 - Deposits (Tables)

Note 7 - Deposits (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Maturities of Long-term Debt [Table Text Block]	(Dollars In Thousands) 201 6 2017 $ 94,235 2018 27,465 2019 14,218 2020 7,144 2021 5,608 Total $ 148,670

Note 8 - Federal Home Loan Ba40

Note 8 - Federal Home Loan Bank Borrowings (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block]	(Dollars In Thousands ) Advanc e Dat e Maturit y Dat e Conversio n Dat e Current Rat e 201 6 201 5 September 7, 200 7 September 7, 201 7 Quarterl y 3.690% $ - $ 4,000 April 13, 201 2 April 13, 201 6 1.265% - 12,000 June 17, 201 4 June 17, 201 6 0.670% - 2,000 January 14, 201 5 January 16, 201 8 1.090% 4,000 4,000 August 19, 201 6 August 20, 201 8 2.535% 4,000 - $ 8,000 $ 22,000

Note 9 - Subordinated Notes (Ta

Note 9 - Subordinated Notes (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Subordinated Borrowing [Table Text Block]	(Dollars in Thousands) As of December 31, 2016 Principal Unamortized Debt Issuance Costs Net Subordinated notes $ 7,500 $ 276 $ 7,224 (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, 2016
Notes Tables
Schedule of Short-term Debt [Table Text Block]	(Dollars In Thousands) 201 6 2015 Securities sold under agreements to repurchase $ 452 $ 759 Warehouse line of credit 665 1,602 $ 1,117 $ 2,361 Weighted average interest rate at December 31 2.07 % 2.25 %

Note 11 - Fair Value Measurem43

Note 11 - Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	(Dollars In Thousands) Carrying value at December 31, 2016 Description Balance as of December 31, 201 6 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 $ 12,444 $ – $ 12,444 $ – Mortgage-backed securities and CMO ’s 19,768 – 19,768 – Corporate securities 5,066 – 5,066 – Municipal securities 15,697 – 15,697 – (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 $ 17,019 $ – $ 17,019 $ – Mortgage-backed securities and CMO ’s 18,190 – 18,190 – Municipal securities 17,335 – 17,335 –
Fair Value Measurements, Nonrecurring [Table Text Block]	(Dollars In Thousands) Carrying value at December 31, 2016 Description Balance as of December 31, 2016 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 $ 98 $ – $ – $ 98 Loans held for sale 678 – 678 – Other real estate owned 3,794 – – 3,794 (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
Fair Value Inputs, Assets, Quantitative Information [Table Text Block]	(Dollars In Thousands) Quantitative information about Level 3 Fair Value Measurements for December 31, 201 6 Assets Fair Value Valuation Technique(s) Unobservable input Range (Weighted Average) Impaired loans $ 98 Discounted appraised value Residual cash flows discount rate 6% - 6% (6%) Other real estate owned $ 1,560 Discounted appraised value Selling cost 6% - 6% (6%) Discount for lack of marketability and age of appraisal 4% - 12% (10%) $ 2,234 Internal evaluations Internal evaluations 4% - 54% (24%) (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 Residual cash flows discount rate 6% - 6% (6%) 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%)
Fair Value, by Balance Sheet Grouping [Table Text Block]	(Dollars In Thousands) Fair value at December 31, 2016 Description Carrying value as of December 31, 201 6 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 $ 18,229 $ 17,479 $ 760 $ – $ 18,239 Federal funds sold 42 42 – – 42 Securities available for sale 52,975 – 52,975 – 52,975 Restricted equity securities 2,213 – 2,213 – 2,213 Loans held for sale 678 – 678 – 678 Loans, net 415,355 – – 415,039 415,039 Bank owned life insurance 7,469 – 7,469 – 7,469 Accrued income 2,289 – 2,289 – 2,289 Financial liabilities Total deposits 450,848 – 451,385 – 451,385 FHLB borrowings 8,000 – 8,031 – 8,031 Subordinated notes 7,224 – 8,012 – 8,012 Other borrowings 1,117 – 1,117 – 1,117 Accrued interest payable 386 – 386 – 386 (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

Note 12 - Earnings Per Common44

Note 12 - Earnings Per Common Share (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	For the Years Ended December 31, 2016 2015 Dollars In Thousands, except share and per share data Weighted Average Common Shares Outstanding Net Income Available to Common Shareholders Per Share Amount Weighted Average Common Shares Outstanding Net Income Available to Common Shareholders Per Share Amount Earnings per common share, basic 4,652,853 $ 2,111 $ 0.45 3,432,457 * $ 2,714 $ 0.79 * Series C Preferred Stock Dividends − 840 Effect of dilutive securities: Convertible preferred stock 1,112,970 − (0.08 ) 2,324,129 * − (0.17 )* Dilutive stock options 10,469 − − − − − Earnings per common share, diluted 5,776,292 $ 2,111 $ 0.37 5,756,586 * $ 3,554 $ 0.62 *

Note 13 - Stock Based Compens45

Note 13 - Stock Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
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, 2015 546,460 $ 8.62 Granted – – Exercised – – Expired (339,460 ) 9.13 Forfeited (6,000 ) 6.90 Balance at December 31, 2016 201,000 $ 7.80 $ 368,950 6.51 Exercisable at December 31, 2016 109,200 $ 8.56 $ 153,220 5.28
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	2016 2015 Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Nonvested at beginning of year 39,352 * $ 6.00 * 39,227 * $ 5.35 * Granted 11,149 * 9.09 * 11,404 * 7.60 * Vested (12,167) * 5.63 * (11,279) * 5.34 * Forfeited (6,788) * 6.99 * – * – * Nonvested at the end of the period 31,546 * $ 7.03 * 39,352 * $ 6.00 *

Note 16 - Income Taxes (Tables)

Note 16 - Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	(Dollars In Thousands) 20 16 2015 Current $ 1,496 $ 1,514 Deferred (56 ) 81 Income tax expense $ 1,440 $ 1,595
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	(Dollars In Thousands) 2016 2015 Tax at statutory federal rate $ 1,367 $ 1,770 Tax-exempt interest income (201 ) (196 ) Cash surrender value of life insurance (63 ) (55 ) Incentive stock options 261 47 Other 76 29 Income tax expense $ 1,440 $ 1,595
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	(Dollars In Thousands) 201 6 2015 Deferred tax assets Pre-opening expenses $ 62 $ 78 Allowance for loan losses 693 518 Stock-based compensation – 236 Deferred compensation 226 107 Other real estate expenses 280 143 Unrealized loss on securities available for sale 29 – Nonaccrual loan interest 17 11 Other 21 – Deferred tax asset 1,328 1,093 Deferred tax liabilities Property and equipment 305 327 Unrealized gain on securities available for sale – 204 Deferred loan fees 980 821 Other 13 – Deferred tax liability 1,298 1,352 Net deferred tax asset (liability) $ 30 $ (259 )

Note 17 - Commitments and Con47

Note 17 - Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]	(Dollars In Thousands) 201 6 2015 Commitments to extend credit $ 102,277 $ 85,437 Standby letters of credit 4,255 5,264

Note 18 - Regulatory Restrict48

Note 18 - Regulatory Restrictions (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]	HomeTown Bank December 31, 2016 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) $ 58,436 12.59 % $ 40,045 8.625 % $ 46,429 10.00 % Tier I Common Equity (to Risk-Weighted Assets) $ 54,783 11.80 % $ 23,795 5.125 % $ 30,179 6.50 % Tier I Capital (to Risk-Weighted Assets) $ 54,800 11.80 % $ 30,759 6.625 % $ 37,143 8.00 % Tier I Capital (to Average Assets) $ 54,800 10.67 % $ 20,537 4.00 % $ 25,671 5.00 % 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 % T ier 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 %

Note 19 - Transactions with R49

Note 19 - Transactions with Related Parties (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Schedule of Related Party Transactions [Table Text Block]	(Dollars In Thousands) 201 6 2015 Balance, beginning $ 7,124 $ 8,048 New loans 5,261 3,116 Repayments (4,191 ) (4,040 ) Balance, ending $ 8,194 $ 7,124

Note 21 - Reclassifications O50

Note 21 - Reclassifications Out of Other Comprehensive Income (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
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 6 2015 Available for sale securities Realized gains on sales of securities held for sale during the period $ 257 $ 52 Gains on sales of investment securities Tax expense related to realized gains on securities sold 87 18 Income tax expense $ 170 $ 34 Net income

Note 22 - Condensed Parent Co51

Note 22 - Condensed Parent Company Financial Information (Tables)	12 Months Ended
	Dec. 31, 2016
Notes Tables
Condensed Balance Sheet [Table Text Block]	CONDENSED BALANCE SHEETS Dollars In Thousands December 31, 2016 December 31, 2015 Assets Cash and due from banks $ 298 $ 1,576 Investment in bank subsidiary 54,727 51,951 Other assets — 7 Total assets $ 55,025 $ 53,534 Liabilities and Stockholders ’ Equity Accrued interest payable $ — $ 18 Other liabilities 12 305 Subordinated notes 7,224 7,194 Total liabilities 7,236 7,517 Stockholders ’ equity: Total stockholders ’ equity 47,789 46,017 Total liabilities and stockholders ’ equity $ 55,025 $ 53,534
Condensed Income Statement [Table Text Block]	CONDENSED STATEMENTS OF INCOME Dollars In Thousands For the year ended December 31, 2016 For the year ended December 31, 2015 Dividend from Bank subsidiary $ — $ 630 Income — 630 Interest expense 536 18 Other expenses 302 182 Expenses 838 200 Net income (loss) before income taxes (838 ) 430 Income tax benefit 278 68 Net income (loss) before equity in undistributed net income of subsidiary (560 ) 498 Undistributed net income of subsidiary 3,079 3,056 Net Income $ 2,519 $ 3,554
Condensed Cash Flow Statement [Table Text Block]	CONDENSED STATEMENTS OF CASH FLOWS Dollars In Thousands For the year ended December 31, 201 6 For the year ended December 31, 2015 Cash flows from operating activities: Net income $ 2,519 $ 3,554 Equity in undistributed net income of subsidiary bank (3,079 ) (3,056 ) Amortization expense on subordinated notes 30 1 ( Increase) decrease in other assets 7 (7 ) Increase in interest payable (18 ) 18 Increase (decrease) in other liabilities (295 ) 305 Net cash flows provided by (used in) operating activities (836 ) 815 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 (408 ) (840 ) Net settlement of vested restricted stock (29 ) — Cash in lieu of fractional shares (5 ) — Net cash flows provided by (used in) financing activities (442 ) 6,353 Net increase (decrease) in cash and cash equivalents (1,278 ) 1,168 Cash and cash equivalents, beginning 1,576 408 Cash and cash equivalents, ending $ 298 $ 1,576 Supplemental disclosure of cash flow information: Cash payments for interest $ 554 $ —

Note 1 - Organization and Sum52

Note 1 - Organization and Summary of Significant Accounting Policies (Details Textual) - USD ($)	Jul. 11, 2016	Jun. 11, 2016	May 10, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2013	Dec. 31, 2009
Preferred Stock Convertible Conversion Price				$ 6.25
Dividends, Common Stock, Stock, Percentge	4.00%	4.00%	4.00%		4.00%
Unrecognized Tax Benefits				$ 0	$ 0
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized							137,280
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				5 years
2005 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				550,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period				10 years
Restricted Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				137,280
Restricted Stock Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				5 years
Building [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life				10 years
Building [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life				40 years
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment, Useful Life				3 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment, Useful Life				10 years
Consumer Portfolio Segment [Member]
Threshold Period Past Due for Write-off of Financing Receivable				120 days
Non-consumer Portfolio Segment [Member]
Threshold Period Past Due for Write-off of Financing Receivable				180 days
Corporate Joint Venture [Member] | Home Town Residential Mortgage LLC [Member]
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions						49.00%

Note 2 - Investment Securitie53

Note 2 - Investment Securities (Details Textual)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Proceeds from Maturities, Prepayments and Calls of Available-for-sale Securities	$ 14,379,000	$ 10,840,000
Available-for-sale Securities, Gross Realized Gain (Loss)	$ 257,000	$ 52,000
Available-for-sale Securities, Number Sold	14	6
Available-for-sale Securities, Gross Realized Gains	$ 262,000	$ 67,000
Available-for-sale Securities, Gross Realized Losses	5,000	15,000
Available-for-sale Securities Pledged as Collateral	6,200,000	$ 7,400,000
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	0
Public Deposits [Member]
Available-for-sale Securities Pledged as Collateral	3,700,000
Federal Home Loan Bank Borrowing [Member]
Available-for-sale Securities Pledged as Collateral	1,000,000
Other Purposes [Member]
Available-for-sale Securities Pledged as Collateral	$ 1,500,000
US Government Agencies Debt Securities [Member]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	21
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	32
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0
Corporate Debt Securities [Member]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	1
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0
US States and Political Subdivisions Debt Securities [Member]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	19
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	$ 0

Note 2 - Investment Securitie54

Note 2 - Investment Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Securities available-for-sale, amortized cost	$ 53,060	$ 51,944
Securities available-for-sale, gross unrealized gains	504	896
Securities available-for-sale, gross unrealized losses	(589)	(296)
Securities available for sale, at fair value	52,975	52,544
US Government Agencies Debt Securities [Member]
Securities available-for-sale, amortized cost	12,422	16,899
Securities available-for-sale, gross unrealized gains	118	227
Securities available-for-sale, gross unrealized losses	(96)	(107)
Securities available for sale, at fair value	12,444	17,019
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Securities available-for-sale, amortized cost	19,979	18,289
Securities available-for-sale, gross unrealized gains	54	75
Securities available-for-sale, gross unrealized losses	(265)	(174)
Securities available for sale, at fair value	19,768	18,190
Corporate Debt Securities [Member]
Securities available-for-sale, amortized cost	5,000
Securities available-for-sale, gross unrealized gains	66
Securities available-for-sale, gross unrealized losses
Securities available for sale, at fair value	5,066
US States and Political Subdivisions Debt Securities [Member]
Securities available-for-sale, amortized cost	15,659	16,756
Securities available-for-sale, gross unrealized gains	266	594
Securities available-for-sale, gross unrealized losses	(228)	(15)
Securities available for sale, at fair value	$ 15,697	$ 17,335

Note 2 - Investment Securitie55

Note 2 - Investment Securities - Unrealized Loss Positions of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Securities available-for-sale in a continuous unrealized loss position, less than 12 months fair value	$ 25,191	$ 13,130
Securities available-for-sale in a continuous unrealized loss position, less than 12 months unrealized loss	(490)	(148)
Securities available-for-sale in a continuous unrealized loss position, 12 months or more fair value	5,227	8,519
Securities available-for-sale in a continuous unrealized loss position, 12 months or more unrealized loss	(99)	(148)
Securities available-for-sale in a continuous unrealized loss position, total fair value	30,418	21,649
Securities available-for-sale in a continuous unrealized loss position, total unrealized loss	(589)	(296)
US Government Agencies Debt Securities [Member]
Securities available-for-sale in a continuous unrealized loss position, less than 12 months fair value	3,492	1,999
Securities available-for-sale in a continuous unrealized loss position, less than 12 months unrealized loss	(32)	(24)
Securities available-for-sale in a continuous unrealized loss position, 12 months or more fair value	3,491	4,924
Securities available-for-sale in a continuous unrealized loss position, 12 months or more unrealized loss	(64)	(83)
Securities available-for-sale in a continuous unrealized loss position, total fair value	6,983	6,923
Securities available-for-sale in a continuous unrealized loss position, total unrealized loss	(96)	(107)
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Securities available-for-sale in a continuous unrealized loss position, less than 12 months fair value	14,232	10,326
Securities available-for-sale in a continuous unrealized loss position, less than 12 months unrealized loss	(235)	(114)
Securities available-for-sale in a continuous unrealized loss position, 12 months or more fair value	1,474	3,069
Securities available-for-sale in a continuous unrealized loss position, 12 months or more unrealized loss	(30)	(60)
Securities available-for-sale in a continuous unrealized loss position, total fair value	15,706	13,395
Securities available-for-sale in a continuous unrealized loss position, total unrealized loss	(265)	(174)
Corporate Debt Securities [Member]
Securities available-for-sale in a continuous unrealized loss position, less than 12 months fair value	500
Securities available-for-sale in a continuous unrealized loss position, less than 12 months unrealized loss
Securities available-for-sale in a continuous unrealized loss position, 12 months or more fair value
Securities available-for-sale in a continuous unrealized loss position, 12 months or more unrealized loss
Securities available-for-sale in a continuous unrealized loss position, total fair value	500
Securities available-for-sale in a continuous unrealized loss position, total unrealized loss
US States and Political Subdivisions Debt Securities [Member]
Securities available-for-sale in a continuous unrealized loss position, less than 12 months fair value	6,967	805
Securities available-for-sale in a continuous unrealized loss position, less than 12 months unrealized loss	(223)	(10)
Securities available-for-sale in a continuous unrealized loss position, 12 months or more fair value	262	526
Securities available-for-sale in a continuous unrealized loss position, 12 months or more unrealized loss	(5)	(5)
Securities available-for-sale in a continuous unrealized loss position, total fair value	7,229	1,331
Securities available-for-sale in a continuous unrealized loss position, total unrealized loss	$ (228)	$ (15)

Note 2 - Investment Securitie56

Note 2 - Investment Securities - Available-for-sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Less than one year, available-for-sale securities, amortized cost	$ 112
Less than one year, available-for-sale securities, fair value	112
Over one through five years, available-for-sale securities, amortized cost	1,394
Over one through five years, available-for-sale securities, fair value	1,406
Over five through ten years, available-for-sale securities, amortized cost	15,857
Over five through ten years, available-for-sale securities, fair value	15,889
Greater than 10 years, available-for-sale securities, amortized cost	35,697
Greater than 10 years, available-for-sale securities, fair value	35,568
Available-for-sale securities, amortized cost	53,060	$ 51,944
Available-for-sale securities, fair value	$ 52,975	$ 52,544

Note 3 - Loans Receivable (Deta

Note 3 - Loans Receivable (Details Textual)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Financing Receivable, 90 Days Past Due and Still Accruing, Number of Loans	2	2	2	2
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	$ 4,000	$ 842,000	$ 4,000	$ 842,000
Financing Receivable, Modifications, Recorded Investment	$ 6,400,000	$ 6,700,000	$ 6,400,000	$ 6,700,000
Financing Receivable, Modifications, Number of Contracts	5	6	0	1
Financing Receivable, Modifications, Number of Contracts, Before Split				2
Allowance for Credit Losses, Change in Method of Calculating Impairment	$ 0	$ 0	$ 0	$ 0
Performing Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment	$ 6,200,000	$ 6,400,000	6,200,000	6,400,000
Financing Receivable, Modifications, Number of Contracts	3	4
Nonperforming Financial Instruments [Member]
Financing Receivable, Modifications, Recorded Investment	$ 231,000	$ 252,000	$ 231,000	$ 252,000
Financing Receivable, Modifications, Number of Contracts	2	2

Note 3 - Loans Receivable - Cla

Note 3 - Loans Receivable - Classifications of Loans Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loans	$ 418,991	$ 367,358
Less allowance for loan losses	(3,636)	(3,298)	$ (3,332)
Loans, net	415,355	364,060
Construction Loan Portfolio Segment [Member] | Residential [Member]
Loans	10,204	11,779
Less allowance for loan losses	(63)	(83)	(43)
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Loans	27,480	27,440
Less allowance for loan losses	(173)	(187)	(453)
Real Estate Portfolio Segment [Member] | Residential [Member]
Loans	111,626	100,268
Less allowance for loan losses	(866)	(1,047)	(833)
Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans	172,248	140,952
Less allowance for loan losses	(1,516)	(1,001)	(1,012)
Commercial Industrial And Agricultural Portfolio Segment Excluding Overdrafts [Member]
Loans	59,702	52,943
Equity Lines Portfolio Segment [Member]
Loans	29,956	26,376
Less allowance for loan losses	(338)	(277)	(423)
Consumer Portfolio Segment [Member]
Loans	7,668	7,531
Less allowance for loan losses	(97)	(85)	$ (65)
Overdrafts Portfolio Segment [Member]
Loans	$ 107	$ 69

Note 3 - Loans Receivable - Pas

Note 3 - Loans Receivable - Past Due and Non-accrual Status of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loans, past due	$ 1,926	$ 1,470
Loans, current	417,065	365,888
Loans	418,991	367,358
Loans, nonaccrual loans	924	426
Construction Loan Portfolio Segment [Member] | Residential [Member]
Loans, past due
Loans, current	10,204	11,779
Loans	10,204	11,779
Loans, nonaccrual loans
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Loans, past due		11
Loans, current	27,480	27,429
Loans	27,480	27,440
Loans, nonaccrual loans		11
Real Estate Portfolio Segment [Member] | Residential [Member]
Loans, past due	1,442	347
Loans, current	110,184	99,921
Loans	111,626	100,268
Loans, nonaccrual loans	577
Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans, past due	115	836
Loans, current	172,133	140,116
Loans	172,248	140,952
Loans, nonaccrual loans	336	368
Commercial Industrial and Agricultural Portfolio Segment [Member]
Loans, past due	93	171
Loans, current	59,716	52,841
Loans	59,809	53,012
Loans, nonaccrual loans	11	47
Equity Lines Portfolio Segment [Member]
Loans, past due	258	105
Loans, current	29,698	26,271
Loans	29,956	26,376
Loans, nonaccrual loans
Consumer Portfolio Segment [Member]
Loans, past due	18
Loans, current	7,650	7,531
Loans	7,668	7,531
Loans, nonaccrual loans
Financing Receivables, 30 to 59 Days Past Due [Member]
Loans, past due	1,113	498
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loan Portfolio Segment [Member] | Residential [Member]
Loans, past due
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Loans, past due
Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Portfolio Segment [Member] | Residential [Member]
Loans, past due	672	297
Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans, past due	115	44
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Industrial and Agricultural Portfolio Segment [Member]
Loans, past due	60	52
Financing Receivables, 30 to 59 Days Past Due [Member] | Equity Lines Portfolio Segment [Member]
Loans, past due	258	105
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Loans, past due	8
Financing Receivables, 60 to 89 Days Past Due [Member]
Loans, past due	232	84
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Loan Portfolio Segment [Member] | Residential [Member]
Loans, past due
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Loans, past due
Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Portfolio Segment [Member] | Residential [Member]
Loans, past due	193
Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans, past due
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Industrial and Agricultural Portfolio Segment [Member]
Loans, past due	33	84
Financing Receivables, 60 to 89 Days Past Due [Member] | Equity Lines Portfolio Segment [Member]
Loans, past due
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Loans, past due	6
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Loans, past due	581	888
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Loan Portfolio Segment [Member] | Residential [Member]
Loans, past due
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Loans, past due		11
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Portfolio Segment [Member] | Residential [Member]
Loans, past due	577	50
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans, past due		792
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Industrial and Agricultural Portfolio Segment [Member]
Loans, past due		35
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Equity Lines Portfolio Segment [Member]
Loans, past due
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member]
Loans, past due	$ 4

Note 3 - Loans Receivable - Imp

Note 3 - Loans Receivable - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loans with no related allowance, recorded investment in loans	$ 7,161	$ 7,710
Loans with no related allowance, unpaid principal balance	7,337	7,886
Loans with no related allowance, average balance total loans	7,161	7,890
Loans with no related allowance, interest income recognized	244	304
Loans with a related allowance, recorded investment in loans	115	127
Loans with a related allowance, unpaid principal balance	115	127
Related Allowance	17	17
Loans with a related allowance, average balance total loans	122	135
Loans with a related allowance, interest income recognized
Construction Loan Portfolio Segment [Member] | Residential [Member]
Loans with no related allowance, recorded investment in loans
Loans with no related allowance, unpaid principal balance
Loans with no related allowance, average balance total loans
Loans with no related allowance, interest income recognized
Loans with a related allowance, recorded investment in loans
Loans with a related allowance, unpaid principal balance
Related Allowance
Loans with a related allowance, average balance total loans
Loans with a related allowance, interest income recognized
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Loans with no related allowance, recorded investment in loans
Loans with no related allowance, unpaid principal balance
Loans with no related allowance, average balance total loans
Loans with no related allowance, interest income recognized
Loans with a related allowance, recorded investment in loans
Loans with a related allowance, unpaid principal balance
Related Allowance
Loans with a related allowance, average balance total loans
Loans with a related allowance, interest income recognized
Real Estate Portfolio Segment [Member] | Residential [Member]
Loans with no related allowance, recorded investment in loans	770	247
Loans with no related allowance, unpaid principal balance	770	247
Loans with no related allowance, average balance total loans	629	255
Loans with no related allowance, interest income recognized	(11)	13
Loans with a related allowance, recorded investment in loans
Loans with a related allowance, unpaid principal balance
Related Allowance
Loans with a related allowance, average balance total loans
Loans with a related allowance, interest income recognized
Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans with no related allowance, recorded investment in loans	6,380	7,451
Loans with no related allowance, unpaid principal balance	6,556	7,627
Loans with no related allowance, average balance total loans	6,521	7,623
Loans with no related allowance, interest income recognized	255	291
Loans with a related allowance, recorded investment in loans	115	127
Loans with a related allowance, unpaid principal balance	115	127
Related Allowance	17	17
Loans with a related allowance, average balance total loans	122	135
Loans with a related allowance, interest income recognized
Commercial Industrial and Agricultural Portfolio Segment [Member]
Loans with no related allowance, recorded investment in loans	11	12
Loans with no related allowance, unpaid principal balance	11	12
Loans with no related allowance, average balance total loans	11	12
Loans with no related allowance, interest income recognized
Loans with a related allowance, recorded investment in loans
Loans with a related allowance, unpaid principal balance
Related Allowance
Loans with a related allowance, average balance total loans
Loans with a related allowance, interest income recognized
Equity Lines Portfolio Segment [Member]
Loans with no related allowance, recorded investment in loans
Loans with no related allowance, unpaid principal balance
Loans with no related allowance, average balance total loans
Loans with no related allowance, interest income recognized
Loans with a related allowance, recorded investment in loans
Loans with a related allowance, unpaid principal balance
Related Allowance
Loans with a related allowance, average balance total loans
Loans with a related allowance, interest income recognized
Consumer Portfolio Segment [Member]
Loans with no related allowance, recorded investment in loans
Loans with no related allowance, unpaid principal balance
Loans with no related allowance, average balance total loans
Loans with no related allowance, interest income recognized
Loans with a related allowance, recorded investment in loans
Loans with a related allowance, unpaid principal balance
Related Allowance
Loans with a related allowance, average balance total loans
Loans with a related allowance, interest income recognized

Note 3 - Loans Receivable - Loa

Note 3 - Loans Receivable - Loans Modified in TDR by Class of Loan (Details) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015USD ($)
Number of contracts	5	6	0	1
Pre-modification outstanding recorded investment				$ 260
Post-modification outstanding recorded investment				$ 267
Construction Loan Portfolio Segment [Member] | Residential [Member]
Number of contracts
Pre-modification outstanding recorded investment
Post-modification outstanding recorded investment
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Number of contracts
Pre-modification outstanding recorded investment
Post-modification outstanding recorded investment
Real Estate Portfolio Segment [Member] | Residential [Member]
Number of contracts
Pre-modification outstanding recorded investment
Post-modification outstanding recorded investment
Real Estate Portfolio Segment [Member] | Commercial [Member]
Number of contracts				1
Pre-modification outstanding recorded investment				$ 260
Post-modification outstanding recorded investment				$ 255
Commercial Industrial and Agricultural Portfolio Segment [Member]
Number of contracts
Pre-modification outstanding recorded investment
Post-modification outstanding recorded investment				$ 12
Equity Lines Portfolio Segment [Member]
Number of contracts
Pre-modification outstanding recorded investment
Post-modification outstanding recorded investment
Consumer Portfolio Segment [Member]
Number of contracts
Pre-modification outstanding recorded investment
Post-modification outstanding recorded investment

Note 4 - Allowance for Loan L62

Note 4 - Allowance for Loan Losses (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Loans and Leases Receivable, Gross	$ 418,991,000	$ 367,358,000
Doubtful [Member]
Loans and Leases Receivable, Gross	0	0
Unlikely to be Collected Financing Receivable [Member]
Loans and Leases Receivable, Gross	$ 0	$ 0

Note 4 - Allowance for Loan L63

Note 4 - Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Allowance for loan losses, beginning balance	$ 3,298	$ 3,332
Allowance for loan losses, charge- offs	(848)	(80)
Allowance for loan losses, recoveries	104	46
Allowance for loan losses, provisions	1,082
Allowance for loan losses, ending balance	3,636	3,298
Allowance for loan losses: individually evaluated for impairment	17	17
Allowance for loan losses: collectively evaluated for impairment	3,619	3,281
Loans	418,991	367,358
Loans: individually evaluated for impairment	7,276	7,837
Loans: collectively evaluated for impairment	411,715	359,521
Construction Loan Portfolio Segment [Member] | Residential [Member]
Allowance for loan losses, beginning balance	83	43
Allowance for loan losses, charge- offs
Allowance for loan losses, recoveries
Allowance for loan losses, provisions	(20)	40
Allowance for loan losses, ending balance	63	83
Allowance for loan losses: individually evaluated for impairment
Allowance for loan losses: collectively evaluated for impairment	63	83
Loans	10,204	11,779
Loans: individually evaluated for impairment
Loans: collectively evaluated for impairment	10,204	11,779
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Allowance for loan losses, beginning balance	187	453
Allowance for loan losses, charge- offs	(2)
Allowance for loan losses, recoveries
Allowance for loan losses, provisions	(12)	(266)
Allowance for loan losses, ending balance	173	187
Allowance for loan losses: individually evaluated for impairment
Allowance for loan losses: collectively evaluated for impairment	173	187
Loans	27,480	27,440
Loans: individually evaluated for impairment
Loans: collectively evaluated for impairment	27,480	27,440
Real Estate Portfolio Segment [Member] | Residential [Member]
Allowance for loan losses, beginning balance	1,047	833
Allowance for loan losses, charge- offs	(4)
Allowance for loan losses, recoveries	45	1
Allowance for loan losses, provisions	(222)	213
Allowance for loan losses, ending balance	866	1,047
Allowance for loan losses: individually evaluated for impairment
Allowance for loan losses: collectively evaluated for impairment	866	1,047
Loans	111,626	100,268
Loans: individually evaluated for impairment	770	247
Loans: collectively evaluated for impairment	110,856	100,021
Real Estate Portfolio Segment [Member] | Commercial [Member]
Allowance for loan losses, beginning balance	1,001	1,012
Allowance for loan losses, charge- offs	(606)
Allowance for loan losses, recoveries
Allowance for loan losses, provisions	1,121	(11)
Allowance for loan losses, ending balance	1,516	1,001
Allowance for loan losses: individually evaluated for impairment	17	17
Allowance for loan losses: collectively evaluated for impairment	1,499	984
Loans	172,248	140,952
Loans: individually evaluated for impairment	6,495	7,578
Loans: collectively evaluated for impairment	165,753	133,374
Commercial Industrial and Agricultural Portfolio Segment [Member]
Allowance for loan losses, beginning balance	531	319
Allowance for loan losses, charge- offs	(34)
Allowance for loan losses, recoveries		10
Allowance for loan losses, provisions	(36)	202
Allowance for loan losses, ending balance	461	531
Allowance for loan losses: individually evaluated for impairment
Allowance for loan losses: collectively evaluated for impairment	461	531
Loans	59,809	53,012
Loans: individually evaluated for impairment	11	12
Loans: collectively evaluated for impairment	59,798	53,000
Equity Lines Portfolio Segment [Member]
Allowance for loan losses, beginning balance	277	423
Allowance for loan losses, charge- offs	(99)
Allowance for loan losses, recoveries	10	1
Allowance for loan losses, provisions	150	(147)
Allowance for loan losses, ending balance	338	277
Allowance for loan losses: individually evaluated for impairment
Allowance for loan losses: collectively evaluated for impairment	338	277
Loans	29,956	26,376
Loans: individually evaluated for impairment
Loans: collectively evaluated for impairment	29,956	26,376
Consumer Portfolio Segment [Member]
Allowance for loan losses, beginning balance	85	65
Allowance for loan losses, charge- offs	(103)	(80)
Allowance for loan losses, recoveries	49	34
Allowance for loan losses, provisions	66	66
Allowance for loan losses, ending balance	97	85
Allowance for loan losses: individually evaluated for impairment
Allowance for loan losses: collectively evaluated for impairment	97	85
Loans	7,668	7,531
Loans: individually evaluated for impairment
Loans: collectively evaluated for impairment	7,668	7,531
Unallocated Financing Receivables [Member]
Allowance for loan losses, beginning balance	87	184
Allowance for loan losses, charge- offs
Allowance for loan losses, recoveries
Allowance for loan losses, provisions	35	(97)
Allowance for loan losses, ending balance	122	87
Allowance for loan losses: individually evaluated for impairment
Allowance for loan losses: collectively evaluated for impairment	122	87
Loans
Loans: individually evaluated for impairment
Loans: collectively evaluated for impairment

Note 4 - Allowance for Loan L64

Note 4 - Allowance for Loan Losses - Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Loans	$ 418,991	$ 367,358
Pass [Member]
Loans	416,653	358,751
Special Mention [Member]
Loans	78	6,531
Substandard [Member]
Loans	1,336	1,650
Substandard Nonaccrual [Member]
Loans	924	426
Construction Loan Portfolio Segment [Member] | Residential [Member]
Loans	10,204	11,779
Construction Loan Portfolio Segment [Member] | Residential [Member] | Pass [Member]
Loans	10,204	11,779
Construction Loan Portfolio Segment [Member] | Residential [Member] | Special Mention [Member]
Loans
Construction Loan Portfolio Segment [Member] | Residential [Member] | Substandard [Member]
Loans
Construction Loan Portfolio Segment [Member] | Residential [Member] | Substandard Nonaccrual [Member]
Loans
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member]
Loans	27,480	27,440
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member] | Pass [Member]
Loans	27,480	27,429
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member] | Special Mention [Member]
Loans
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member] | Substandard [Member]
Loans
Construction Loan Portfolio Segment [Member] | Land Acquisition Development And Commercial [Member] | Substandard Nonaccrual [Member]
Loans		11
Real Estate Portfolio Segment [Member] | Residential [Member]
Loans	111,626	100,268
Real Estate Portfolio Segment [Member] | Residential [Member] | Pass [Member]
Loans	110,856	95,809
Real Estate Portfolio Segment [Member] | Residential [Member] | Special Mention [Member]
Loans		4,212
Real Estate Portfolio Segment [Member] | Residential [Member] | Substandard [Member]
Loans	193	247
Real Estate Portfolio Segment [Member] | Residential [Member] | Substandard Nonaccrual [Member]
Loans	577
Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans	172,248	140,952
Real Estate Portfolio Segment [Member] | Commercial [Member] | Pass [Member]
Loans	171,369	138,034
Real Estate Portfolio Segment [Member] | Commercial [Member] | Special Mention [Member]
Loans		1,155
Real Estate Portfolio Segment [Member] | Commercial [Member] | Substandard [Member]
Loans	543	1,395
Real Estate Portfolio Segment [Member] | Commercial [Member] | Substandard Nonaccrual [Member]
Loans	336	368
Commercial Industrial and Agricultural Portfolio Segment [Member]
Loans	59,809	53,012
Commercial Industrial and Agricultural Portfolio Segment [Member] | Pass [Member]
Loans	59,120	51,801
Commercial Industrial and Agricultural Portfolio Segment [Member] | Special Mention [Member]
Loans	78	1,164
Commercial Industrial and Agricultural Portfolio Segment [Member] | Substandard [Member]
Loans	600
Commercial Industrial and Agricultural Portfolio Segment [Member] | Substandard Nonaccrual [Member]
Loans	11	47
Equity Lines Portfolio Segment [Member]
Loans	29,956	26,376
Equity Lines Portfolio Segment [Member] | Pass [Member]
Loans	29,956	26,376
Equity Lines Portfolio Segment [Member] | Special Mention [Member]
Loans
Equity Lines Portfolio Segment [Member] | Substandard [Member]
Loans
Equity Lines Portfolio Segment [Member] | Substandard Nonaccrual [Member]
Loans
Consumer Portfolio Segment [Member]
Loans	7,668	7,531
Consumer Portfolio Segment [Member] | Pass [Member]
Loans	7,668	7,523
Consumer Portfolio Segment [Member] | Special Mention [Member]
Loans
Consumer Portfolio Segment [Member] | Substandard [Member]
Loans		8
Consumer Portfolio Segment [Member] | Substandard Nonaccrual [Member]
Loans

Note 5 - Foreclosed Propertie65

Note 5 - Foreclosed Properties - Foreclosed Properties Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Other Real Estate Owned, balance at the beginning of the year	$ 5,657	$ 7,408
Valuation Allowance, balance at the beginning of the year	(420)	(422)
Balance at the beginning of the year, net	5,237	6,986
Other Real Estate Owned, Additions	481
Additions, Net	481
Valuation Allowance, Writedowns	(405)	(346)
Writedowns, Net	(405)	(346)
Other Real Estate Owned, Sales	(1,519)	(1,751)
Valuation Allowance, Sales		348
Sales, Net	(1,519)	(1,403)
Other Real Estate Owned, balance at the end of the year	4,619	5,657
Valuation Allowance, Balance at the end of the year	(825)	(420)
Balance at the end of the year, net	$ 3,794	$ 5,237

Note 5 - Foreclosed Propertie66

Note 5 - Foreclosed Properties - Classification of Other Real Estate Owned and Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Real Estate Owned	$ 3,794	$ 5,237	$ 6,986
Net loss on sales	90
Provision for unrealized losses	405	346
Other real estate owned expense	97	151
Total Other Real Estate Owned	592	497
Residential Lots [Member]
Other Real Estate Owned	2,234	2,520
Residential Development [Member]
Other Real Estate Owned	423	423
Commercial Lots [Member]
Other Real Estate Owned	90	90
Commercial Buildings [Member]
Other Real Estate Owned	$ 1,047	$ 2,204

Note 6 - Property and Equipme67

Note 6 - Property and Equipment (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Depreciation, Depletion and Amortization	$ 754	$ 762
Operating Leases, Rent Expense, Net	307	333
Occupancy and Equipment Expense [Member]
Operating Leases, Rent Expense, Net	$ 307	$ 333
Home Town Residential Mortgage LLC [Member] | Roanoke [Member]
Lessee Leasing Arrangements, Operating Leases, Term of Contract	1 year
Home Town Residential Mortgage LLC [Member] | Christianburg [Member]
Lessee Leasing Arrangements, Operating Leases, Term of Contract	1 year
Main Office [Member]
Lessee Leasing Arrangements, Operating Leases, Term of Contract	10 years
Lessee Leasing Arrangements, Operating Leases, Renewal Term	10 years
Maximum Rental Increase	3.00%
Branch Location [Member]
Lessee Leasing Arrangements, Operating Leases, Term of Contract	10 years
Lessee Leasing Arrangements, Operating Leases, Renewal Term	5 years
Lessee Leasing Arrangements, Operating Leases,Number of Additional Renewal Terms	2
Automated Teller Machine [Member]
Lessee Leasing Arrangements, Operating Leases, Term of Contract	8 years
Maximum Rental Increase	3.00%
Automated Teller Machine [Member] | Expires on April 1, 2026 [Member]
Lessee Leasing Arrangements, Operating Leases, Renewal Term	5 years
Automated Teller Machine [Member] | Expires on April 1, 2031 [Member]
Lessee Leasing Arrangements, Operating Leases, Renewal Term	5 years

Note 6 - Property and Equipme68

Note 6 - Property and Equipment - Components of Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Land	$ 4,309	$ 4,309
Buildings and improvements	8,617	8,611
Leasehold improvements	2,156	2,149
Furniture and equipment	3,214	3,113
Software	556	554
Construction in process	10	13
Property and equipment, total	18,862	18,749
Less accumulated depreciation and amortization	5,491	4,741
Property and equipment, net	$ 13,371	$ 14,008

Note 6 - Property and Equipme69

Note 6 - Property and Equipment - Minimum Annual Lease Payments (Details) $ in Thousands	Dec. 31, 2016USD ($)
2,017	$ 288
2,018	274
2,019	274
2,020	274
2,021	268
Thereafter	1,145
Total	$ 2,523

Note 6 - Property and Equipme70

Note 6 - Property and Equipment - Rent Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Minimum rentals	$ 298	$ 291
Contingent rentals	9	42
Total	$ 307	$ 333

Note 7 - Deposits (Details Text

Note 7 - Deposits (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Time Deposits, at or Above FDIC Insurance Limit	$ 9.8	$ 10
Interest-bearing Domestic Deposit, Brokered	$ 28.5	$ 34.2
Deposits, Total [Member] | Customer Concentration Risk [Member]
Concentration Risk, Percentage	5.00%

Note 7 - Deposits - Scheduled M

Note 7 - Deposits - Scheduled Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2016USD ($)
2,017	$ 94,235
2,018	27,465
2,019	14,218
2,020	7,144
2,021	5,608
Total	$ 148,670

Note 8 - Federal Home Loan Ba73

Note 8 - Federal Home Loan Bank Borrowings (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Advances from Federal Home Loan Banks	$ 8,000	$ 22,000
Real Estate Loans [Member]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	28,000
Investment Securities [Member]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	1,000
Federal Home Loan Bank Stock [Member]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	814
Federal Home Loan Bank of Atlanta [Member]
Advances from Federal Home Loan Banks	8,000	$ 22,000
Federal Home Loan Bank of Atlanta [Member] | Fixed Rate Advance [Member]
Advances from Federal Home Loan Banks	$ 8,000

Note 8 - Federal Home Loan Ba74

Note 8 - Federal Home Loan Bank Borrowings - Federal Home Loan Bank of Atlanta Borrowings (Details) - Federal Home Loan Bank of Atlanta [Member] - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Current rate
Federal Home Loan Bank Borrowings	$ 8	$ 22
Advance Date September 7, 2007 [Member]
Current rate	3.69%
Federal Home Loan Bank Borrowings		4
Advance Date April 13, 2012 [Member]
Current rate	1.265%
Federal Home Loan Bank Borrowings		12
Advance Date June 17, 2014 [Member]
Current rate	0.67%
Federal Home Loan Bank Borrowings		2
Advance Date January 14, 2015 [Member]
Current rate	1.09%
Federal Home Loan Bank Borrowings	$ 4	4
Advance Date August 19, 2016 [Member]
Current rate	2.535%
Federal Home Loan Bank Borrowings	$ 4

Note 9 - Subordinated Notes (De

Note 9 - Subordinated Notes (Details Textual) - Subordinated Debt [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 18, 2015
Debt Instrument, Face Amount	$ 7,500	$ 7,500	$ 7,500
Debt Instrument, Interest Rate, Stated Percentage			6.75%
Debt Instrument, Interest Rate, Effective Percentage	7.44%	6.89%

Note 9 - Subordinated Notes - S

Note 9 - Subordinated Notes - Schedule of Subordinated Notes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 18, 2015
Subordinated notes	$ 7,224	$ 7,194
Subordinated Debt [Member]
Principal	7,500	7,500	$ 7,500
Unamortized debt issuance costs	276	306
Subordinated notes	$ 7,224	$ 7,194

Note 10 - Other Borrowings (Det

Note 10 - Other Borrowings (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Short-term Debt	$ 1,117,000	$ 2,361,000
Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	5,000,000
Short-term Debt	$ 665,000	1,602,000
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	2.75%
Federal Funds Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 36,500,000
Short-term Debt	0	$ 0
Promontory’s Insured Cash Sweep Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
Promontory’s Insured Cash Sweep Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	0.11%
Promontory’s Insured Cash Sweep Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	0.20%

Note 10 - Other Borrowings - Sh

Note 10 - Other Borrowings - Short Term Borrowings (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Short-term borrowings	$ 1,117,000	$ 2,361,000
Weighted average interest rate at December 31	2.07%	2.25%
Securities Sold under Agreements to Repurchase [Member]
Short-term borrowings	$ 452,000	$ 759,000
Line of Credit [Member]
Short-term borrowings	$ 665,000	$ 1,602,000

Note 11 - Fair Value Measurem79

Note 11 - Fair Value Measurements (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Liabilities, Fair Value Disclosure, Nonrecurring	$ 0	$ 0
Minimum [Member]
Federal Funds Maturity	1 day
Maximum [Member]
Federal Funds Maturity	3 days

Note 11 - Fair Value Measurem80

Note 11 - Fair Value Measurements - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Available-for-sale securities	$ 52,975	$ 52,544
US Government Agencies Debt Securities [Member]
Available-for-sale securities	12,444	17,019
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	12,444	17,019
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available-for-sale securities	19,768	18,190
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	19,768	18,190
Corporate Debt Securities [Member]
Available-for-sale securities	5,066
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	5,066
US States and Political Subdivisions Debt Securities [Member]
Available-for-sale securities	15,697	17,335
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Available-for-sale securities	$ 15,697	$ 17,335

Note 11 - Fair Value Measurem81

Note 11 - Fair Value Measurements - Fair Value of Financial Assets and Liabilities Measure on Non-recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Impaired loans, net of valuation allowance	$ 98	$ 110
Loans held for sale	678	1,643
Other real estate owned	3,794	5,237	$ 6,986
Fair Value, Inputs, Level 1 [Member]
Impaired loans, net of valuation allowance
Loans held for sale	678	1,643
Other real estate owned		1,300
Fair Value, Inputs, Level 2 [Member]
Impaired loans, net of valuation allowance	98	110
Loans held for sale
Other real estate owned	$ 3,794	$ 3,937

Note 11 - Fair Value Measurem82

Note 11 - Fair Value Measurements - Fair Value Quantitative Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Impaired Loans [Member] | Discounted Appraised Value [Member]
Impaired loans	$ 98	$ 110
Impaired Loans [Member] | Discounted Appraised Value [Member] | Minimum [Member]
Impaired loans	6.00%	6.00%
Impaired Loans [Member] | Discounted Appraised Value [Member] | Maximum [Member]
Impaired loans	6.00%	6.00%
Impaired Loans [Member] | Discounted Appraised Value [Member] | Weighted Average [Member]
Impaired loans	6.00%	6.00%
Other Real Estate Owned [Member] | Discounted Appraised Value [Member]
Other real estate owned	$ 1,560	$ 1,735
Other real estate owned	$ 1,560	$ 1,735
Other Real Estate Owned [Member] | Discounted Appraised Value [Member] | Minimum [Member]
Impaired loans	6.00%	6.00%
Other real estate owned	4.00%	4.00%
Other Real Estate Owned [Member] | Discounted Appraised Value [Member] | Maximum [Member]
Impaired loans	6.00%	6.00%
Other real estate owned	12.00%	9.00%
Other Real Estate Owned [Member] | Discounted Appraised Value [Member] | Weighted Average [Member]
Impaired loans	6.00%	6.00%
Other real estate owned	10.00%	8.00%
Other Real Estate Owned [Member] | Internal Evaluations [Member]
Other real estate owned	$ 2,234	$ 2,202
Other real estate owned	$ 2,234	$ 2,202
Other Real Estate Owned [Member] | Internal Evaluations [Member] | Minimum [Member]
Other real estate owned	4.00%	4.00%
Other Real Estate Owned [Member] | Internal Evaluations [Member] | Maximum [Member]
Other real estate owned	54.00%	39.00%
Other Real Estate Owned [Member] | Internal Evaluations [Member] | Weighted Average [Member]
Other real estate owned	24.00%	21.00%

Note 11 - Fair Value Measurem83

Note 11 - Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financial assets
Securities available for sale	$ 52,975	$ 52,544
Reported Value Measurement [Member]
Financial assets
Cash and due from banks	18,229	28,745
Federal funds sold	42	1,329
Securities available for sale	52,975	52,544
Restricted equity securities	2,213	2,535
Loans held for sale	678	1,643
Loans, net	415,355	364,060
Bank owned life insurance	7,469	6,285
Accrued income	2,289	2,057
Financial liabilities
Total deposits	450,848	399,546
FHLB borrowings	8,000	22,000
Subordinated notes	7,224	7,194
Other borrowings	1,117	2,361
Accrued interest payable	386	372
Estimate of Fair Value Measurement [Member]
Financial assets
Cash and due from banks	18,239	28,762
Federal funds sold	42	1,329
Securities available for sale	52,975	52,544
Restricted equity securities	2,213	2,535
Loans held for sale	678	1,643
Loans, net	415,039	362,440
Bank owned life insurance	7,469	6,285
Accrued income	2,289	2,057
Financial liabilities
Total deposits	451,385	400,117
FHLB borrowings	8,031	22,191
Subordinated notes	8,012	7,354
Other borrowings	1,117	2,361
Accrued interest payable	386	372
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Financial assets
Cash and due from banks	17,479	26,995
Federal funds sold	42	1,329
Securities available for sale
Restricted equity securities
Loans held for sale
Loans, net
Bank owned life insurance
Accrued income
Financial liabilities
Total deposits
FHLB borrowings
Subordinated notes
Other borrowings
Accrued interest payable
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Financial assets
Cash and due from banks	760	1,767
Federal funds sold
Securities available for sale	52,975	52,544
Restricted equity securities	2,213	2,535
Loans held for sale	678	1,643
Loans, net
Bank owned life insurance	7,469	6,285
Accrued income	2,289	2,057
Financial liabilities
Total deposits	451,385	400,117
FHLB borrowings	8,031	22,191
Subordinated notes	8,012	7,354
Other borrowings	1,117	2,361
Accrued interest payable	386	372
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Financial assets
Cash and due from banks
Federal funds sold
Securities available for sale
Restricted equity securities
Loans held for sale
Loans, net	415,039	362,440
Bank owned life insurance
Accrued income
Financial liabilities
Total deposits
FHLB borrowings
Subordinated notes
Other borrowings
Accrued interest payable

Note 12 - Earnings Per Common84

Note 12 - Earnings Per Common Share (Details Textual) - shares	Jul. 11, 2016	Jun. 11, 2016	May 10, 2016	Dec. 31, 2016	Dec. 31, 2015
Dividends, Common Stock, Stock, Percentge	4.00%	4.00%	4.00%		4.00%
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				190,531	546,460

Note 12 - Earnings Per Common85

Note 12 - Earnings Per Common Share - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Earnings per common share, basic (in shares)	4,652,853	3,432,457	[1]
Earnings per common share, basic	$ 2,111	$ 2,714
Earnings per common share, basic (in dollars per share)	$ 0.45	$ 0.79	[1]
Series C Preferred Stock Dividends	$ 408	$ 840
Convertible preferred stock (in shares)	1,112,970	2,324,129
Convertible preferred stock (in dollars per share)	$ (0.08)	$ (0.17)
Dilutive stock options (in shares)	10,469
Earnings per common share, diluted (in shares)	5,776,292	5,756,586	[1]
Earnings per common share, diluted	$ 2,111	$ 3,554
Earnings per common share, diluted (in dollars per share)	$ 0.37	$ 0.62	[1]
[1]	Restated for the 4% stock dividend distributed July 11, 2016

Note 13 - Stock Based Compens86

Note 13 - Stock Based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	Jul. 11, 2016	Jun. 11, 2016	May 10, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2009
Allocated Share-based Compensation Expense				$ 147	$ 137
Dividends, Common Stock, Stock, Percentge	4.00%	4.00%	4.00%		4.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				0	0
Employee Stock Option [Member]
Allocated Share-based Compensation Expense				$ 75	$ 75
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized				$ 211
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				3 years
Restricted Stock [Member]
Allocated Share-based Compensation Expense				$ 72	$ 62
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized				$ 165
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						137,280
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				$ 9.09	$ 7.60
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				11,149	11,404

Note 13 - Stock Based Compens87

Note 13 - Stock Based Compensation - Stock Option Activity (Details) - 2005 Stock Option Plan [Member]	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Beginning balance, options outstanding (in shares) | shares	546,460
Beginning balance, weighted average exercise price (in dollars per share) | $ / shares	$ 8.62
Expired, options outstanding (in shares) | shares	(339,460)
Expired, weighted average exercise price (in dollars per share) | $ / shares	$ (9.13)
Forfeited, options outstanding (in shares) | shares	(6,000)
Forfeited, weighted average exercise price (in dollars per share) | $ / shares	$ (6.90)
Ending balance, options outstanding (in shares) | shares	201,000
Ending balance, weighted average exercise price (in dollars per share) | $ / shares	$ 7.80
Balance, aggregate intrinsic value | $	$ 368,950	[1]
Balance, weighted average contractual term (Year)	6 years 186 days
Exercisable, options outstanding (in shares) | shares	109,200
Exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 8.56
Exercisable, aggregate intrinsic value | $	$ 153,220	[1]
Exercisable, weighted average contractual term (Year)	5 years 102 days
[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, 2016.

Note 13 - Stock Based Compens88

Note 13 - Stock Based Compensation - Restricted Stock Awards Activity (Details) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Nonvested at beginning of year, shares (in shares)	39,352	39,227
Nonvested at beginning of year, weighted-average grant date fair value (in dollars per share)	$ 6	$ 5.35
Granted, shares (in shares)	11,149	11,404
Granted, weighted-average grant date fair value (in dollars per share)	$ 9.09	$ 7.60
Vested, shares (in shares)	(12,167)	(11,279)
Vested, weighted-average grant date fair value (in dollars per share)	$ 5.63	$ 5.34
Forfeited, shares (in shares)	(6,788)
Forfeited, weighted-average grant date fair value (in dollars per share)	$ 6.99
Nonvested at the end of the period, shares (in shares)	31,546	39,352
Nonvested at the end of the period, weighted-average grant date fair value (in dollars per share)	$ 7.03	$ 6

Note 14 - Salary Continuation89

Note 14 - Salary Continuation Plan (Details Textual) - Supplemental Executive Retirement Plan [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
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
Deferred Compensation Arrangement with Individual, Compensation Expense	$ 351	$ 186
Other Liabilities [Member]
Deferred Compensation Liability, Current and Noncurrent	$ 666	$ 315

Note 15 - Employee Benefit Pl90

Note 15 - Employee Benefit Plan (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 240	$ 209
Employee First 3 Percent [Member]
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]
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 Textual)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	34.00%	34.00%

Note 16 - Income Taxes - Compon

Note 16 - Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Current	$ 1,496	$ 1,514
Deferred	(56)	81
Income tax expense	$ 1,440	$ 1,595

Note 16 - Income Taxes - Income

Note 16 - Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Tax at statutory federal rate	$ 1,367	$ 1,770
Tax-exempt interest income	(201)	(196)
Cash surrender value of life insurance	(63)	(55)
Incentive stock options	261	47
Other	76	29
Income tax expense	$ 1,440	$ 1,595

Note 16 - Income Taxes - Comp94

Note 16 - Income Taxes - Components of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets
Pre-opening expenses	$ 62	$ 78
Allowance for loan losses	693	518
Stock-based compensation		236
Deferred compensation	226	107
Other real estate expenses	280	143
Unrealized loss on securities available for sale	29
Nonaccrual loan interest	17	11
Other	21
Deferred tax asset	1,328	1,093
Deferred tax liabilities
Property and equipment	305	327
Unrealized gain on securities available for sale		204
Deferred loan fees	980	821
Other	13
Deferred tax liability	1,298	1,352
Net deferred tax asset	$ 30
Net deferred tax liability		$ (259)

Note 17 - Commitments and Con95

Note 17 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Jul. 01, 2016	Nov. 01, 2015	Dec. 31, 2016	Dec. 31, 2015
Restricted Cash and Cash Equivalents			$ 6.6	$ 3.9
Cash, Uninsured Amount			7.2	3.8
Marketing Agreement [Member]
Purchase Obligation Term of Contract	5 years	3 years
Marketing Expense			57.5	$ 47.8
Purchase Obligation, Due in Next Twelve Months			65
Purchase Obligation, Due in Third Year			66
Purchase Obligation, Due in Fourth Year			68
Purchase Obligation, Due in Fifth Year			34.5
Purchase Obligation, Due in Second Year			$ 65

Note 17 - Commitments and Con96

Note 17 - Commitments and Contingencies - Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Standby Letters of Credit [Member]
Standby letters of credit	$ 4,255	$ 5,264
Commitments to Extend Credit [Member]
Commitments to extend credit	$ 102,277	$ 85,437

Note 18 - Regulatory Restrict97

Note 18 - Regulatory Restrictions (Details Textual) - USD ($) $ in Millions	Dec. 31, 2016	Jan. 01, 2016	Dec. 31, 2015	Jan. 01, 2015
Retained Earnings, Unappropriated		$ 1.2
Capital Conservation Buffer Required for Capital Adequacy		2.50%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	5.125%	5.125%	4.50%	4.50%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.625%	6.625%	6.00%	6.00%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.625%	8.625%	8.00%	8.00%
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%	4.00%

Note 18 - Regulatory Matters -

Note 18 - Regulatory Matters - Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 01, 2016	Dec. 31, 2015	Jan. 01, 2015
Total Capital (to Risk-weighted Assets), Actual, Amount	$ 58,436		$ 54,890
Total Capital (to Risk-weighted Assets), Actual, Ratio	12.59%		13.80%
Total Capital (to Risk-weighted Assets), for Capital Adequacy, Amount	$ 40,045		$ 31,822
Total Capital (to Risk-weighted Assets), for Capital Adequacy, Ratio	8.625%	8.625%	8.00%	8.00%
Total Capital (to Risk-weighted Assets), to Be Well Capitalized, Amount	$ 46,429		$ 39,778
Total Capital (to Risk-weighted Assets), to Be Well Capitalized, Ratio	10.00%		10.00%
Tier I Common Equity (to Risk-Weighted Assets), Actual, Amount	$ 54,783		$ 51,556
Tier I Common Equity (to Risk-Weighted Assets), Actual, Ratio	11.80%		12.96%
Tier I Common Equity (to Risk-Weighted Assets), for Capital Adequacy, Amount	$ 23,795		$ 17,900
Tier I Common Equity (to Risk-Weighted Assets), for Capital Adequacy, Ratio	5.125%	5.125%	4.50%	4.50%
Tier I Common Equity (to Risk-Weighted Assets), to Be Well Capitalized, Amount	$ 30,179		$ 25,855
Tier I Common Equity (to Risk-Weighted Assets), to Be Well Capitalized, Ratio	6.50%		6.50%
Tier I Capital (to Risk-Weighted Assets), Actual, Amount	$ 54,800		$ 51,592
Tier I Capital (to Risk-Weighted Assets), Actual, Ratio	11.80%		12.97%
Tier I Capital (to Risk-Weighted Assets), for Capital Adequacy, Amount	$ 30,759		$ 23,867
Tier I Capital (to Risk-Weighted Assets), for Capital Adequacy, Ratio	6.625%	6.625%	6.00%	6.00%
Tier I Capital (to Risk-Weighted Assets), to Be Well Capitalized, Amount	$ 37,143		$ 31,822
Tier I Capital (to Risk-Weighted Assets), to Be Well Capitalized, Ratio	8.00%		8.00%
Tier I Capital (to Average Assets), Actual, Amount	$ 54,800		$ 51,592
Tier I Capital (to Average Assets), Actual, Ratio	10.67%		10.83%
Tier I Capital (to Average Assets), for Capital Adequacy, Amount	$ 20,537		$ 19,053
Tier I Capital (to Average Assets), for Capital Adequacy, Ratio	4.00%	4.00%	4.00%
Tier I Capital (to Average Assets), to Be Well Capitalized, Amount	$ 25,671		$ 23,816
Tier I Capital (to Average Assets), to Be Well Capitalized, Ratio	5.00%		5.00%

Note 19 - Transactions with R99

Note 19 - Transactions with Related Parties (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loans and Leases Receivable, Related Parties, Proceeds	$ 4,191	$ 4,040
Related Party Deposit Liabilities	16,700	$ 16,300
Loans Removed from Related Party Disclosure [Member]
Loans and Leases Receivable, Related Parties, Proceeds	$ 575

Note 19 - Transactions with 100

Note 19 - Transactions with Related Parties - Loan Transactions with Related Parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Balance, beginning	$ 7,124	$ 8,048
New loans	5,261	3,116
Repayments	(4,191)	(4,040)
Balance, ending	$ 8,194	$ 7,124

Note 20 - Capital Transactions

Note 20 - Capital Transactions (Details Textual) - USD ($)	Jul. 11, 2016	Jun. 29, 2016	Jun. 11, 2016	May 10, 2016	Jun. 28, 2013	Dec. 31, 2016	Dec. 31, 2015
Dividends, Common Stock, Stock, Percentge	4.00%		4.00%	4.00%			4.00%
Common Stock Dividends, Shares	134,177
Conversion of Stock, Shares Converted		13,600					400
Conversion of Stock, Shares Issued		2,176,000					64,000
Series C Preferred Stock [Member]
Common Stock Dividends, Shares				87,037
Dividends, Preferred Stock, Paid-in-kind						$ 408,000	$ 840,000
Private Placement [Member]
Sale of Stock, Consideration Received on Transaction					$ 14,000,000
Private Placement [Member] | Series C Preferred Stock [Member]
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 102

Note 21 - Reclassifications Out of Other Comprehensive Income - Items Reclassified to Net Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Tax expense related to realized gains on securities sold	$ 1,440	$ 1,595
Net income	2,519	3,554
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Realized gains on sales of securities held for sale during the period	257	52
Tax expense related to realized gains on securities sold	87	18
Net income	$ 170	$ 34

Note 22 - Condensed Parent C103

Note 22 - Condensed Parent Company Financial Information - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 18,229	$ 28,745
Other assets	875	942
Total assets	517,290	479,385
Liabilities and Stockholders’ Equity
Accrued interest payable	386	372
Other liabilities	1,490	1,521
Subordinated notes	7,224	7,194
Total liabilities	469,065	432,994
Stockholders’ equity:
Total HomeTown Bankshares Corporation stockholders’ equity	47,789	46,017
Total liabilities and stockholders’ equity	517,290	479,385
Parent Company [Member]
Assets
Cash and due from banks	298	1,576
Investment in bank subsidiary	54,727	51,951
Other assets		7
Total assets	55,025	53,534
Liabilities and Stockholders’ Equity
Accrued interest payable		18
Other liabilities	12	305
Subordinated notes	7,224	7,194
Total liabilities	7,236	7,517
Stockholders’ equity:
Total HomeTown Bankshares Corporation stockholders’ equity	47,789	46,017
Total liabilities and stockholders’ equity	$ 55,025	$ 53,534

Note 22 - Condensed Parent C104

Note 22 - Condensed Parent Company Financial Information - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Interest expense	$ 3,018	$ 2,311
Other expense	1,841	1,635
Net income before income taxes	4,021	5,206
Income tax benefit	(1,440)	(1,595)
Net income attributable to HomeTown Bankshares Corporation	2,519	3,554
Parent Company [Member]
Dividend from Bank subsidiary		630
Income		630
Interest expense	536	18
Other expense	302	182
Expenses	838	200
Net income before income taxes	(838)	430
Income tax benefit	278	68
Net income (loss) before equity in undistributed net income of subsidiary	(560)	498
Undistributed net income of subsidiary	3,079	3,056
Net income attributable to HomeTown Bankshares Corporation	$ 2,519	$ 3,554

Note 22 - Condensed Parent C105

Note 22 - Condensed Parent Company Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 2,519	$ 3,554
Amortization of discount on subordinated notes	30	1
Other assets	96	(277)
Increase in interest payable	14	100
Increase (decrease) in other liabilities	229	(193)
Net cash flows provided by operating activities	6,268	3,018
Cash flows from investing activities:
Net cash flows used in investing activities	(52,400)	(35,628)
Cash flows from financing activities:
Issuance of subordinated notes, net		7,193
Net cash flows provided by financing activities	35,616	47,560
Net increase (decrease) in cash and cash equivalents	(10,516)	14,950
Cash and cash equivalents, beginning	28,745	13,795
Cash and cash equivalents, ending	18,229	28,745
Supplemental disclosure of noncash investing and financing activities:
Cash payments for interest	2,974	2,211
Parent Company [Member]
Cash flows from operating activities:
Net income	2,519	3,554
Equity in undistributed net income of subsidiary bank	(3,079)	(3,056)
Amortization of discount on subordinated notes	30	1
Other assets	7	(7)
Increase in interest payable	(18)	18
Increase (decrease) in other liabilities	(295)	305
Net cash flows provided by operating activities	(836)	815
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, net		7,193
Preferred dividend payment	(408)	(840)
Net settlement of vested restricted stock	(29)
Cash in lieu of fractional shares	(5)
Net cash flows provided by financing activities	(442)	6,353
Net increase (decrease) in cash and cash equivalents	(1,278)	1,168
Cash and cash equivalents, beginning	1,576	408
Cash and cash equivalents, ending	298	1,576
Supplemental disclosure of noncash investing and financing activities:
Cash payments for interest	$ 554