Note 3 - Loans Held for Sale

12 Months Ended

Dec. 31, 2015

Disclosure Text Block Supplement [Abstract]

Loans, Notes, Trade and Other Receivables, Excluding Allowance for Credit Losses [Text Block]

3. LOANS HELD FOR SALE

The Bank originates residential mortgage loans for sale in the secondary market. Pursuant to ASC 825, Financial Instruments, at December 31, 2015 and 2014, the Bank marked these mortgage loans to market. Mortgage loans held for sale at December 31, 2015 and December 31, 2014, had estimated fair market values of $3.9 million and $4.8 million, respectively. The Bank originates mortgage loans for sale that are approved by secondary investors. Their terms are set by secondary investors, and they are transferred within 120 days after the Bank funds the loans. The Bank issues rate lock commitments to borrowers, and depending on market conditions, may enter into forward contracts with secondary market investors to minimize interest rate risk related to mortgage loan forward sales commitments. The Bank uses forward contracts to minimize interest rate risk related to mortgage loan forward sales commitments to economically hedge a percentage of the locked-in pipeline. The Bank receives origination fees from borrowers and servicing release premiums from investors that are recognized in income when loans are sold. The following table summarizes forward contract positions of the Bank at December 31, 2014 and 2014, respectively:

Forward Contracts	December 31, 2015				December 31, 2014
	Fair		Notional		Fair		Notional
	Value		Value		Value		Value
	(In thousands)
Mortgage Loan Forward Sales Commitments	$	78	$	2,882	$	111	$	4,099