Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Reclassification, Policy [Policy Text Block]

Significant Event.

During the year ended

December

31,

2015,

the Company identified historical errors related to its deferred tax asset and income tax receivable accounts as well as income tax expense. As a result of the historical error, the Company determined that its cumulative income tax expense associated with prior periods had been understated by a net amount of

$434,000

for all periods prior to

December

31,

2014.

The Company assessed the impact of the errors on its prior period financial statements included in the

December

31,

2013,

Form

-K and concluded that these errors were not material, individually or in the aggregate, to any of those financial statements. Although the effect of these errors was not material to any previously issued financial statements, the cumulative effect of correcting these historical errors in

2015

would have been material for the fiscal year

2015.

For the periods prior to

December

31,

2014,

the cumulative net income tax expense understatement was

$651,000.

Consequently, the Company has revised its prior period financial statements by adjusting ending retained earnings as of

December

31,

2013,

in the amount of

$651,000.

During

2014

the Company overstated income tax expense by

$217,000.

As a result, the Company has adjusted income tax expense accordingly.

The financial statements as of

December

31,

2014,

included herein have been prepared in light of the cumulative revisions above. The financial statements for all other periods affected by the revisions can continue to be relied upon, and will be revised to reflect the revisions discussed above, the next time such financial statements are included in future reports for comparative purposes.

The impact of the above adjustments compared to amounts previously presented is as follows:

	December 31, 2014				December 31, 2013
	As filed		As restated		As filed		As restated
Consolidated Statement of Financial Condition
Income tax receivable	$	2,594,376	$	1,591,105
Prepaid expenses and other assets	$	6,898,192	$	7,467,178	$	9,599,143	$	8,948,180
Total assets	$	885,864,932	$	885,430,647	$	674,721,943	$	674,070,980
Retained earnings	$	41,303,204	$	40,868,919	$	38,849,326	$	38,198,363
Total stockholders' equity	$	80,436,861	$	80,002,576	$	74,858,143	$	74,207,180

	Year Ended
	December 31,
	2014		2014
Consolidated Statement of Operations	As filed		As restated
Income tax expense	$	1,565,687	$	1,349,009
Net income	$	3,872,944	$	4,089,622
Basic earnings per share	$	0.40	$	0.43
Diluted earnings per share	$	0.40	$	0.42

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid assets such as cash on hand, non-interest bearing deposits and amounts in clearing accounts due from correspondent banks and clearing balances required to be maintained with the Federal Reserve. At times, the Bank places deposits with high credit quality financial institutions in amounts which

may

be in excess of federally insured limits.

Marketable Securities, Policy [Policy Text Block]

Investment Securities

Investments in certain securities are classified into

three

categories and accounted for as follows:

(1)

debt securities that the Company has the positive intent and the ability to hold to maturity are classified as held to maturity (“HTM”) and reported at amortized cost;

(2)

debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings;

(3)

debt and equity securities not classified as either held to maturity securities or trading securities are classified as available for sale (“AFS”) securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported as accumulated other comprehensive income, a separate component of equity.

Premiums are amortized and discounts accreted using the interest method over the remaining terms of the related securities. Dividend and interest income are recognized when earned. Sales of investment securities are recorded at trade date, with realized gains and losses on sales determined using the specific identification method and included in non-interest income.

Our investment securities portfolio includes residential mortgage-backed securities and collateralized mortgage obligations. As the underlying collateral of each of these securities is comprised of a large number of similar residential mortgage loans for which prepayments are probable and the timing and amount of such prepayments can be reasonably estimated, we consider estimates of future principal prepayments of these underlying residential mortgage loans in the calculation of the constant effective yield used to apply the interest method for income recognition.

The Company evaluates securities for other-than-temporary impairment ("OTTI") on at least a quarterly basis. For securities in an unrealized loss position, the Company considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. The Company also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value would be recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into

two

components as follows:

OTTI related to credit loss, which must be recognized in the income statement and

OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings.

Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]

Loans Held for Sale.

The Bank originates single family residential

first

mortgage loans. A certain portion of these originations are classified as loans held for sale. Pursuant to Accounting Standards Codification (“ASC”)

825,

Financial Instruments

, the Bank marks these mortgage loans to market. The Bank originates mortgage loans for sale that have been approved by

secondary

investors. The Bank issues an interest rate lock commitment to a borrower and concurrently “locks-in” with a

secondary

market investor, under a best efforts delivery. The terms of the loan are set by the

secondary

investors and are transferred within a short time period of the Bank initially funding the loan. At the time the loan is sold to an investor, the Bank realizes the origination fee received from borrowers and a servicing release premium, if sold with servicing released, from the investor. However, the majority of our mortgage loans held for sale are sold with mortgage servicing rights retained. In these instances the Company recognizes income on these rights based on their estimate of their fair value. See “Mortgage Servicing Rights” below for additional information.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Loans Held for Investment and Allowance for Credit Losses

Loans held for investment are stated at the amount of unpaid principal, net of deferred origination fees, and reduced by an allowance for credit losses. Interest on loans is accrued based on the principal amount outstanding and is recognized using the interest method. Loan origination fees, as well as certain direct loan origination costs, are deferred. Such costs and fees are recognized as an adjustment to yield over the contractual lives of the related loans. Commitment fees to originate or purchase loans are deferred, and if the commitment is exercised, recognized over the life of the loan as an adjustment of yield. If the commitment expires unexercised, commitment fees are recognized in income upon expiration. Fees for originating loans for other financial institutions are recognized as loan fee income.

A loan is considered impaired, based on current information and events, if it is probable that scheduled payments of principal or interest due according to the contractual terms of the loan agreement are uncollectible. Uncollateralized loans are measured for impairment based on the present value of expected future cash flows discounted at historical interest rates; while collateral-dependent loans are measured for impairment based on the fair value of the collateral. The Bank uses several factors in determining if a loan is impaired. Internal asset classification procedures include a review of significant loans and lending relationships and certain related data. This data includes the borrower’s loan payment status, current financial data and factors such as cash flows and operating income or loss, among others.

The allowance for credit losses is increased by charges to income and decreased by charge-offs (net of recoveries). Management's periodic evaluation of the adequacy of the allowance is based on past loan loss experience, known and inherent risks in the portfolio, adverse situations that

may

affect the borrower's ability to repay, the estimated value of any underlying collateral, and current economic conditions. While management believes it has established the allowance in accordance with accounting principles generally accepted in the United States of America and has taken into account the views of its regulators and the current economic environment, there can be no assurance that in the future the Bank's regulators or risks in its portfolio will not require further changes in the allowance.

Real Estate, Policy [Policy Text Block]

Other Real Estate Owned

Real estate assets acquired through loan foreclosure are recorded as other real estate owned (“OREO”) at the lower of the estimated fair value of the property less estimated costs to sell or the carrying amount of the loan plus unpaid accrued interest at the date of foreclosure. The carrying amount is subsequently reduced by additional valuations which are charged to earnings if the estimated fair value declines below its initial value plus any capitalized costs. Costs related to the improvement of the property are capitalized, whereas costs related to holding the property are expensed.

Loans and Leases Receivable, Nonaccrual Loan and Lease Status, Policy [Policy Text Block]

Income Recognition on Impaired and Nonaccrual Loans.

Loans, including impaired loans, are generally classified as nonaccrual if they are past due as to maturity or payment of principal or interest for a period of more than

days, unless such loans are well-secured and in the process of collection. If a loan or a portion of a loan is classified as doubtful or is partially charged off, the loan is generally classified as nonaccrual. Loans that are on a current payment status or past due less than

days

may

also be classified as nonaccrual if repayment in full of principal and/or interest is in doubt. Loans

may

be returned to accrual status when all principal and interest amounts contractually due (including arrearages) are reasonably assured of repayment within an acceptable period of time, and there is a sustained period of repayment performance (generally a minimum of

six

months) by the borrower, in accordance with the contractual terms of interest and principal.

While a loan is classified as nonaccrual and the future collectability of the recorded loan balance is doubtful, collections of interest and principal are generally applied as a reduction to principal outstanding, except in the case of loans with scheduled amortization where the payment is generally applied to the oldest payment due. When the future collectability of the recorded loan balance is expected, interest income

may

be recognized on a cash basis limited to that which would have been recognized on the recorded loan balance at the contractual interest rate. Receipts in excess of that amount are recorded as recoveries to the allowance for credit losses until prior charge-offs have been fully recovered.

Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block]

Troubled Debt Restructurings.

The Bank identifies loans for potential restructuring on a loan-by-loan basis using a variety of sources which

may

include, but are not limited to, any

one

or a combination of the following: being approached or contacted by the borrower to modify loan terms; review of the borrower’s financial statements indicates the borrower

may

be experiencing financial difficulties; past due payment reports; loans extending past their stated maturity date; and nonaccrual loan reports. Not all loan modifications constitute troubled debt restructurings (“TDRs”). Identifying whether a loan restructuring is a TDR is based upon individual facts and circumstances and requires the use of judgment on a loan-by-loan basis. The Bank must

first

determine if the borrower is experiencing financial difficulty. A restructuring constitutes a TDR, if for economic or legal reasons related to an individual borrower’s financial condition, the Bank grants a concession to the borrower that would not otherwise be considered. A restructuring that results in only a delay in payment that is insignificant is not a concession.

Mortgage Servicing Rights [Policy Text Block]

Mortgage Servicing Rights.

When mortgage loans are sold with servicing retained, the proceeds are allocated between the related loans and the retained mortgage servicing rights (“MSRs”) based on their relative fair values. Servicing assets and liabilities are amortized over the average period of estimated net servicing income (if servicing revenues exceed servicing costs) or net servicing loss (if servicing costs exceed servicing revenues). All servicing assets or liabilities are assessed for impairment or increased obligation based on their fair value. There were no impairments recognized during the years ended

December

31,

2016,

2015

and

2014.

Property, Plant and Equipment, Policy [Policy Text Block]

Premises and Equipment

Premises and equipment are stated at cost less accumulated depreciation or amortization. Depreciation and amortization are computed using the straight-line method based on the estimated useful lives of the assets, which range from

years for leasehold improvements and buildings, and

years for furniture, fixtures and equipment. Repairs and maintenance costs are charged to operations as incurred, and additions and improvements to premises and equipment are capitalized. Upon sale or retirement, the cost and related accumulated depreciation are removed from the accounts and any gains or losses are reflected in earnings.

Investment, Policy [Policy Text Block]

Investment in Federal Home Loan Bank Stock

As a member of the Federal Home Loan Bank of Atlanta (“FHLB”), the Bank is required to invest in Class B capital stock, par value

$100,

of the FHLB. The FHLB capital stock requirement is based on the sum of a membership stock component totaling

0.09%

of the Bank’s total assets with a cap of

$15.0

million, and an activity based component of

4.25%

of outstanding FHLB advances. At

December

31,

2016

and

2015,

the Bank owned

15,737

and

23,693

shares of the FHLB’s capital stock, respectively. The Bank carries this investment at cost. Due to the redemption provisions of the FHLB’s capital stock, the Bank estimated that fair value equals cost and that this investment was not impaired at

December

31,

2016

and

2015,

respectively.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and Intangible Assets.

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill created in a purchase business combination has an indefinite useful life that is not amortized. Goodwill is tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed. The Company has performed annual impairment testing and determined there was no goodwill impairment as of

December

31,

2016

and

2015,

respectively. Intangible assets with useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the Company’s consolidated balance sheet. Other intangible assets consist of core deposit intangibles (CDI) arising from branch acquisitions and will be amortized over

years.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company has adopted FASB ASC

740

regarding uncertain income tax positions. Under this standard, the impact of an uncertain income tax position on the income tax returns must be recognized at the largest amount that is more-likely-than-not to be required to be recognized upon audit by the relevant taxing authority. The standard also provides guidance on de-recognition, measurement, classification, interest and penalties, accounting for interim periods, disclosure, and transition issues with respect to tax positions. The Company has determined that it had no material uncertain income tax positions as of

December

31,

2016.

Also, the Company does not anticipate any increase or decrease in unrecognized tax benefits during the next

twelve

months that would result in a material change to its financial position. The Company includes interest and penalties in the financial statements as a component of income tax expense; however, no interest or penalties are included in the Company's income tax expense for the years ended

December

2016,

2015

and

2014,

respectively. The Company and the Bank file a consolidated federal income tax return, and separate state income tax returns. The Company's income tax returns for years ended after

December

31,

2012

are subject to examination by taxing authorities.

Comprehensive Income, Policy [Policy Text Block]

Accumulated Other Comprehensive Income.

The following table presents the changes in accumulated other comprehensive income (AOCI), net of taxes:

	Unrealized Holding Gains(Losses) on I nvestment Securities Available-For-Sale			Unrealized Holding Gains(Losses) on Cash Flow Hedging Activities			Total Accumulated Other Comprehensive Income
	(In Thousands)
Balance at December 31, 2013	$	125		$	(22	)	$	103
Other comprehensive income (loss) before reclassifications		3,305			(232	)		3,073
Amounts reclassified from AOCI		(8	)		-			(8	)
Net current period other comprehensive income (loss)		3,297			(232	)		3,065
Balance at December 31, 2014		3,422			(254	)		3,168
Other comprehensive income before reclassifications		152			7			159
Amounts reclassified from AOCI		(879	)		-			(879	)
Net current period other comprehensive income (loss)		(727	)		7			(720	)
Balance at December 31, 2015	$	2,695		$	(247	)	$	2,448
Other comprehensive income before reclassifications		(973	)		324			(649	)
Amounts reclassified from AOCI		(289	)		-			(289	)
Net current period other comprehensive income (loss)		(1,262	)		324			(938	)
Balance at December 31, 2016	$	1,433		$	77		$	1,510

Comprehensive Income (Loss)

The Company's comprehensive income (loss) includes net income (loss) and changes in other comprehensive income. The components of other comprehensive income primarily include net changes in unrealized gains and losses on available for sale securities, the reclassification of net gains and losses on available for sale securities recognized in income during the respective reporting periods and unrealized holding gains (losses) on cash flow hedging activities.

Advertising Costs, Policy [Policy Text Block]

Marketing.

Marketing costs are expensed as incurred.

Segment Reporting, Policy [Policy Text Block]

Segment Information.

The Company follows financial accounting standards which specify guidelines for determining its operating segments and the type and level of financial information to be disclosed. Based on these guidelines, management has determined that the Bank operates in

one

business segment, the providing of general commercial financial services to customers located in its market areas. The various products are those generally offered by community banks. The allocation of Bank resources is based on overall performance of the Bank, rather than individual branches or products.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements and Changes in Accounting Principles.

The following are Accounting Standards Updates (“ASU”) recently issued by the Financial Accounting Standards Board (“the FASB”) and their expected impact on the Company. Other accounting standards issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s consolidated financial statements.

May

2014,

the FASB issued ASU

2014

09,

Revenue from Contracts with Customers

. This ASU was developed as a joint project with the International Accounting Standards Board to remove inconsistencies in revenue requirements and provide a more robust framework for addressing revenue issues. The ASU’s core principle is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. ASU

2015

issued in

August

2015,

amended the effective date of this ASU to annual reporting periods beginning after

December

15,

2017,

including interim reporting periods within that reporting period. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

November

2015,

the FASB issued ASU

2015

17,

Balance Sheet Classification of Deferred Taxes

. Topic

740,

Income Taxes, requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments in this ASU require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public entities, this ASU is effective for financial statements issued for annual periods beginning after

December

15,

2016,

and interim periods within those annual periods. The Company does not expect this ASU to have a material impact on its consolidated financial statements, as it does not have a classified balance sheet.

January

2016,

the FASB issued ASU

2016

01,

Recognition and Measurement of Financial Assets and Liabilities

. The amendments in this ASU require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this ASU eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement for to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. For public entities, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2017,

including interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

February

2016,

the FASB issued ASU

2016

02,

Leases (Topic

842).

The amendments in this ASU create Topic

842,

Leases, and supersede the leases requirements in Topic

840,

Leases. Topic

842

specifies the accounting for leases. The objective of Topic

842

is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than

months. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee will depend on its classification as finance or operating lease. This ASU will require both types of leases to be recognized on the balance sheet. For public entities, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2018,

including interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

March

2016,

the FASB issued ASU

2016

05,

Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.

The term novation refers to replacing

one

counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in this ASU clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic

815

(Derivatives and Hedging), does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public entities, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2016,

and interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

March

2016,

the FASB issued ASU

2016

06,

Contingent Put and Call Options in Debt Instruments.

Topic

815

requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. This ASU clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the

four

-step decision sequence. The amendments in this ASU apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. For public entities, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2016,

and interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

March

2016,

the FASB issued ASU

2016

08,

Principal versus Agent Considerations (Reporting Revenue Gross versus Net).

The amendments in this ASU affect entities with transactions included within the scope of Topic

606

(Revenue from Contracts with Customers). The scope of Topic

606

includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration. The amendments in this ASU clarify the implementation guidance on principal versus agent considerations. The effective date and transition requirements for this ASU are the same as the effective date of ASU

2014

above. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

March

2016,

the FASB issued ASU

2016

09,

Improvements to Employee Share-Based Payment Accounting.

This ASU was issued as part of an initiative to reduce complexity in accounting standards. The areas for simplification in this ASU involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. In addition, the amendments in this ASU eliminate the guidance in Topic

718

(Compensation-Stock Compensation) that was indefinitely deferred shortly after the issuance of FASB Statement No.

123

(revised

2004),

Share-Based Payment. For public entities, the amendments in this ASU are effective for annual periods beginning after

December

15,

2016,

and interim periods within those annual periods. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

April

2016,

the FASB issued ASU

2016

10,

Identifying Performance Obligations and Licensing.

The amendments in this ASU affect entities with transactions included within the scope of Topic

606.

This ASU clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The ASU seeks to address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The effective date for this ASU is the same as the effective date and transition requirements in Topic

606

(and any other Topic amended by ASU

2014

above). The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

May

2016,

the FASB issued ASU

2016

11,

Rescission of SEC Guidance Because of Accounting Standards Updates

2014

and

2014

Pursuant to Staff Announcements at the

March

2016

EITF Meeting

. This ASU rescinds Securities and Exchange Commission (SEC) paragraphs pursuant to the SEC Staff Announcement, “Rescission of Certain SEC Staff Observer Comments upon Adoption of Topic

606,”

and the SEC Staff Announcement, “Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity,” announced at the

March

2016

Emerging Issues Task Force (EITF) meeting. The Company does not expect this ASU to have a material impact on its consolidated financial statements.

May

2016,

the FASB issued ASU

2016

12,

Narrow-Scope Improvements and Practical Expedients

. The amendments in this ASU address narrow-scope improvements to the guidance on collectibility, noncash consideration, and completed contracts at transition. Additionally, the amendments in this ASU provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The effective date and transition requirements for the amendments in this ASU are the same as requirements of ASU

2014

ASU

2015

14,

issued in

August

2015,

amended the effective date of ASU

2014

to annual reporting periods beginning after

December

15,

2017,

including interim reporting periods within that reporting period. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

June

2016,

the FASB issued ASU

2016

13,

Measurement of Credit Losses on Financial Instruments

. The main objective of this ASU is to provide financial statement users with more decision-useful information about expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public entities that are SEC filers, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2019,

including interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

August

2016,

the FASB issued ASU

2016

15,

Classification of Certain Cash Receipts and Cash Payments

. Current GAAP is either unclear or does not include guidance on certain cash flow issues included in the amendments in this ASU. The amendments are an improvement in GAAP because they provide guidance for each of the noted issues, thereby reducing the current and potential future diversity in accounting practice. This ASU addresses the following specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of

zero

-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. For public business entities, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2017,

and interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

October

2016,

the FASB issued ASU

2016

16,

Intra-Entity Transfers of Assets Other Than Inventory

. Topic

740,

Income Taxes, prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. In addition, interpretations of this guidance have developed in practice for transfers of certain intangible and tangible assets. This prohibition on recognition is an exception to the principle of comprehensive recognition of current and deferred income taxes in GAAP. To more faithfully represent the economics of intra-entity asset transfers, the amendments in this ASU require that entities recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU do not change GAAP for the pre-tax effects of an intra-entity asset transfer under Topic

810,

Consolidation, or for an intra-entity transfer of inventory. For public business entities, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2017,

and interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

October

2016,

the FASB issued ASU

2016

17,

Interests Held Through Related Parties That Are Under Common Control

. The FASB issued this ASU to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. Under the amendments, a single decision maker is not required to consider indirect interests held through related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties. For public entities, the amendments in this ASU are effective for annual periods beginning after

December

15,

2016,

and interim periods within those annual periods. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

November

2016,

the FASB issued ASU

2016

18,

Restricted Cash.

Stakeholders indicated that diversity exists in the classification and presentation of changes in restricted cash on the statement of cash flows under Topic

230,

Statement of Cash Flows. This ASU addresses that diversity and its amendments require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this ASU apply to all entities that have restricted cash or

restricted cash equivalents and are required to present a statement of cash flows.

For public business entities, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2017,

and interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

December

2016,

the FASB issued ASU

2016

19,

Technical Corrections and Improvements.

The amendments in this ASU cover a wide range of Topics in the ASC. The amendments in this ASU represent changes to make corrections or improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Most of the amendments in this ASU do not require transition guidance and were effective upon issuance of this ASU. The amendments in this ASU did not have a material impact on Company’s consolidated financial statements.

January

2017,

the FASB issued ASU

2017

01,

Clarifying the Definition of a Business.

The amendments in this ASU clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. The amendments in this ASU provide a screen to determine when a set is not a business. If the screen is not met, it

(1)

requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and

(2)

removes the evaluation of whether a market participant could replace the missing elements. For public business entities, the amendments in this ASU are effective for fiscal years beginning after

December

15,

2017,

and interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

January

2017,

the FASB issued ASU

2017

03,

Accounting Changes and Error Corrections (Topic

250)

and Investments-

Equity Method and Joint Ventures (Topic

323).

This ASU adds and amends SEC paragraphs pursuant to SEC Staff Announcements at the

September

2016

and

November

2016

Emerging Issues Task Force (EITF) meetings. The

September

announcement is about Disclosure of the Impact That Recently Issued Accounting Standards Will Have on the Financial Statements of a Registrant When Such Standards are Adopted in a Future Period. The

November

announcement made amendments to conform the SEC Observer Comment on Accounting for Tax Benefits Resulting from Investments in Qualified Affordable Housing Projects to the guidance issued in ASU

2014

01.

For public business entities, amendments to the Topics covered by this ASU are effective for various fiscal years beginning after

December

15,

2017,

2018

and

2019,

respectively, and interim periods within those fiscal years. The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

January

2017,

the FASB issued ASU

2017

04,

Simplifying the Test for Goodwill Impairment

. Topic

350,

Intangibles-Goodwill and Other

, currently requires an entity to perform a

two

-step test to determine the amount, if any, of goodwill impairment. In Step

an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step

and compares the implied fair value of goodwill with the carrying amount of that goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. To address concerns over the cost and complexity of the

two

-step goodwill impairment test, the amendments in this ASU remove the

second

step of the test. An entity will apply a

one

-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. For public entities, the amendments in this ASU are effective for annual goodwill impairment tests in fiscal years beginning after

December

15,

2019.

The Company will evaluate the impact this ASU

may

have on its consolidated financial statements.

Derivatives, Policy [Policy Text Block]

Interest Rate Hedging.

The Company has executed certain strategies targeted at hedging the impact of rising interest rates on its future earnings. Effective as of

December

30,

2014,

the Company entered into a pay-fixed receive-floating swap to hedge our

$10.0

million floating rate Trust Preferred debt for an ensuing

five

year term. The primary objective of the swap is to minimize future interest rate risk. During

2016,

the swap was restructured to lower the interest rate and extend the maturity date to

December

30,

2024.

See Note

below for additional information.

Compensated Absences Policy [Policy Text Block]

Compensated Absences.

The Company has not accrued compensated absences because the amount cannot be reasonably estimated.

Subsequent Events, Policy [Policy Text Block]

Subsequent Events.

We have evaluated subsequent events after

December

31,

2016,

and concluded that no material transactions occurred that provided additional evidence about conditions that existed at or after

December

31,

2016,

that required adjustments to or disclosure in the Consolidated Financial Statements.