Note 7 - Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2017

Notes Tables

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

(Dollars in Thousands)			Carrying value at September 30, 2017
Description	Balance as of September 30, 2017		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	$	13,356	$	–	$	13,356	$	–
Mortgage-backed securities and CMO ’s		21,193		–		21,193		–
Corporate securities		6,558		–		6,558		–
Municipal securities		12,487		–		12,487		–

(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:
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		–

Fair Value Measurements, Nonrecurring [Table Text Block]

(Dollars in Thousands)			Carrying value at September 30, 2017
Description	Balance as of September 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Loans held for sale		1,013		–		1,013		–
Other real estate owned		3,562		–		–		3,562

(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

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

(Dollars in Thousands)	Quantitative information about Level 3 Fair Value Measurements for September 30, 2017
Assets	Fair Value		Valuation Technique(s)	Unobservable input	Range (Weighted Average)
Other real estate owned	$	1,378	Discounted appraised value	Selling cost		6%	-	6%	(6%)
				Discount for lack of marketability and age of appraisal		4%	-	13%	(12%)
	$	2,184	Internal evaluations	Internal evaluations		4%	-	95%	(22%)

(Dollars in Thousands)	Quantitative information about Level 3 Fair Value Measurements for December 31, 2016
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%)

Fair Value, by Balance Sheet Grouping [Table Text Block]

(Dollars in Thousands)			Fair value at September 30, 2017
Description	Carrying value as of September 30, 2017		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	$	34,755	$	34,755	$	–	$	–	$	34,755
Federal funds sold		132		132		–		–		132
Securities available for sale		53,594		–		53,594		–		53,594
Restricted equity securities		2,371		–		2,371		–		2,371
Loans held for sale		1,013		–		1,013		–		1,013
Loans, net		431,104		–		–		433,652		433,652
Bank owned life insurance		8,115		–		8,115		–		8,115
Accrued income		2,619		–		2,619		–		2,619
Financial liabilities
Total deposits		478,944		–		479,777		–		479,777
FHLB borrowings		11,361		–		11,386		–		11,386
Subordinated notes		7,247		–		7,954		–		7,954
Other borrowings		992		–		992		–		992
Accrued interest payable		508		–		508		–		508

(Dollars in Thousands)			Fair value at December 31, 2016
Description	Carrying value 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)		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