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 |