10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 001-36706

	CB FINANCIAL SERVICES, INC.
(Exact name of registrant as specified in its charter)

Pennsylvania	51-0534721
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

100 N. Market Street, Carmichaels, PA	15320
(Address of principal executive offices)	(Zip Code)

	(724) 966-5041
(Registrant’s telephone number, including area code)

	N/A
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐ (Do not check if a smaller reporting company)	Smaller reporting company ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐     No ☒

As of November 9, 2015, the number of shares outstanding of the Registrant’s Common Stock was 4,071,462.

 

FORM 10-Q

INDEX

			Page
PART I – FINANCIAL INFORMATION
	Item 1.  Financial Statements.		1
		Consolidated Statement of Financial Condition	1
		Consolidated Statement of Income (Unaudited)	2
		Consolidated Statement of Comprehensive Income (Unaudited)	3
		Consolidated Statement of Changes In Stockholders’ Equity (Unaudited)	3
		Consolidated Statement of Cash Flows (Unaudited)	4
		Notes to Unaudited Consolidated Financial Statements	5
	Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.		24
	Item 3. Quantitative and Qualitative Disclosure about Market Risk.		34
	Item 4. Controls and Procedures.		34
PART II - OTHER INFORMATION
	Item 1. Legal Proceedings.		35
	Item 1A. Risk Factors.		35
	Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.		35
	Item 3.  Defaults Upon Senior Securities.		35
	Item 4. Mine Safety Disclosures.		35
	Item 5. Other Information.		35
	Item 6. Exhibits		35
SIGNATURES			36

 

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

CONSOLIDATED STATEMENT OF FINANCIAL CONDITION

	(Unaudited)
(Dollars in thousands, except share data)	September 30, 2015			December 31, 2014
ASSETS
Cash and Due From Banks:
Interest Bearing	$	4,577		$	5,933
Non-Interest Bearing		10,887			5,818
Total Cash and Due From Banks		15,464			11,751
Investment Securities:
Available-for-Sale		101,515			105,449
Held-to-Maturity		-			504
Loans, Net		661,225			680,451
Premises and Equipment, Net		10,289			10,593
Bank-Owned Life Insurance		18,089			17,735
Goodwill		5,632			5,632
Core Deposit Intangible		4,487			4,888
Accrued Interest and Other Assets		7,447			9,311
TOTAL ASSETS	$	824,148		$	846,314
LIABILITIES
Deposits:
Demand Deposits	$	163,540		$	163,362
NOW Accounts		95,184			98,919
Money Market Accounts		142,927			160,747
Savings Accounts		122,695			118,332
Time Deposits		148,379			151,594
Brokered Deposits		17,221			4,540
Total Deposits		689,946			697,494
Short-Term Borrowings		27,908			46,684
Other Borrowed Funds		15,000			15,136
Accrued Interest and Other Liabilities		5,035			5,088
TOTAL LIABILITIES		737,889			764,402
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value; 5,000,000 Shares Authorized		-			-
Common Stock, $0.4167 Par Value; 35,000,000 Shares Authorized,  4,363,346 Shares Issued and 4,071,462 Shares Outstanding at September 30, 2015 and December 31, 2014, Respectively		1,818			1,818
Capital Surplus		41,762			41,762
Retained Earnings		46,864			42,766
Treasury Stock, at Cost (291,884 Shares at September 30, 2015 and December 31, 2014, Respectively)		(4,999	)		(4,999	)
Accumulated Other Comprehensive Income		814			565
TOTAL STOCKHOLDERS' EQUITY		86,259			81,912
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	824,148		$	846,314

The accompanying notes are an integral part of these consolidated financial statements

1

 

CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands, except share and per share data)	2015		2014		2015			2014
INTEREST AND DIVIDEND INCOME
Loans, Including Fees	$	7,390	$	4,077	$	22,256		$	12,067
Federal Funds Sold		4		7		11			18
Investment Securities:
Taxable		237		187		704			633
Exempt From Federal Income Tax		278		318		848			1,021
Other Interest and Dividend Income		37		24		241			77
TOTAL INTEREST AND DIVIDEND INCOME		7,946		4,613		24,060			13,816
INTEREST EXPENSE
Deposits		577		388		1,769			1,222
Federal Funds Purchased		-		-		1			1
Short-Term Borrowings		16		11		61			31
Other Borrowed Funds		66		28		218			86
TOTAL INTEREST EXPENSE		659		427		2,049			1,340
NET INTEREST INCOME		7,287		4,186		22,011			12,476
Provision For Loan Losses		300		-		975			-
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		6,987		4,186		21,036			12,476
NONINTEREST INCOME
Service Fees on Deposit Accounts		632		575		1,834			1,538
Insurance Commissions		772		3		2,640			8
Other Commissions		142		100		379			291
Net Gains on Sales of Loans		205		74		248			272
Net Gains on Sales of Investments		-		35		-			35
Income from Bank-Owned Life Insurance		119		58		354			174
Other		35		10		82			35
TOTAL NONINTEREST INCOME		1,905		855		5,537			2,353
NONINTEREST EXPENSE
Salaries and Employee Benefits		3,131		1,893		9,466			5,642
Occupancy		428		283		1,326			874
Equipment		411		275		1,215			802
FDIC Assessment		120		96		373			288
PA Shares Tax		165		87		513			271
Contracted Services		156		89		440			276
Legal and Professional Fees		118		32		359			306
Advertising		233		88		679			268
Bankcard Processing Expense		116		89		343			217
Other Real Estate Owned Expense (Income)		32		222		(210	)		204
Amortization of Core Deposit Intangible		134		-		401			-
Merger-Related		-		368		-			1,033
Other		816		512		2,237			1,357
TOTAL NONINTEREST EXPENSE		5,860		4,034		17,142			11,538
Income Before Income Taxes		3,032		1,007		9,431			3,291
Income Taxes		904		268		2,768			734
NET INCOME	$	2,128	$	739	$	6,663		$	2,557
EARNINGS PER SHARE
Basic	$	0.52	$	0.32	$	1.64		$	1.09
Diluted		0.52		0.32		1.64			1.09
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		4,071,462		2,348,323		4,071,462			2,348,956
Diluted		4,071,462		2,348,323		4,071,462			2,354,484

The accompanying notes are an integral part of these consolidated financial statements

2

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars in thousands)	2015		2014			2015		2014
Net Income	$	2,128	$	739		$	6,663	$	2,557
Other Comprehensive Income (Loss)
Unrealized Gains (Losses) on Available-for-Sale Securities Net of Income Tax of $151 and ($2) for the Three Months Ended September 30, 2015 and 2014, Respectively, and $128 and $659 for the Nine Months Ended September 30, 2015 and 2014, Respectively		294		(4	)		249		1,279
Reclassification Adjustment for Gains on Securities Included in Net Income, Net of Tax of $12 for the Three and Nine Months Ended September 30, 2014, Respectively (1)		-		(23	)		-		(23	)
Other Comprehensive Income (Loss), Net of Income Tax		294		(27	)		249		1,256
Total Comprehensive Income	$	2,422	$	712		$	6,912	$	3,813

(1) The gross amount of gains on securities of $35,000 for the three and nine months ended September 30, 2014, respectively, is reported as Net Gains on Sales of Investments on the Consolidated Statement of Income. The income tax effect is included in Income Taxes on the Consolidated Statement of Income.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

(Dollars in thousands, except share and per share data)	Shares Issued		Common Stock		Capital Surplus		Retained  Earnings			Treasury  Stock			Accumulated Other Comprehensive (Loss) Income			Total Stockholders’  Equity
December 31, 2013		2,626,864	$	1,095	$	5,969	$	40,807		$	(2,103	)	$	(763	)	$45,005
Comprehensive income:
Net income		-		-		-		2,557			-			-		2,557
Other comprehensive income		-		-		-		-			-			1,256		1,256
Exercise of stock options		14,515		6		200		-			-			-		206
Purchase of common stock, at cost (133,000 shares)		-		-		-		-			(2,896	)		-		(2,896)
Dividends paid ($0.63 per share)		-		-		-		(1,478	)		-			-		(1,478)
September 30, 2014		2,641,379	$	1,101	$	6,169	$	41,886		$	(4,999	)	$	493		$44,650

(Dollars in thousands, except share and per share data)	Shares Issued		Common Stock		Capital Surplus		Retained  Earnings			Treasury  Stock			Accumulated Other Comprehensive  Income		Total Stockholders’  Equity
December 31, 2014		4,363,346	$	1,818	$	41,762	$	42,766		$	(4,999	)	$	565	$81,912
Comprehensive income:
Net income		-		-		-		6,663			-			-	6,663
Other comprehensive income		-		-		-		-			-			249	249
Dividends paid ($0.63 per share)		-		-		-		(2,565	)		-			-	(2,565)
September 30, 2015		4,363,346	$	1,818	$	41,762	$	46,864		$	(4,999	)	$	814	$86,259

The accompanying notes are an integral part of these consolidated financial statements

3

 

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

	Nine Months Ended September 30,
(Dollars in thousands)	2015			2014
OPERATING ACTIVITIES
Net Income	$	6,663		$	2,557
Αdjustmеnts to Rеconcilе Net Income to Net Cash Provided By Operating Activities:
Net Amortization on Investments		523			1,020
Depreciation and Amortization		1,944			422
Provision for Loan Losses		975			-
Income from Bank-Owned Life Insurance		(354	)		(174	)
Proceeds From Mortgage Loans Sold		53,476			11,448
Originations of Mortgage Loans for Sale		(15,053	)		(11,176	)
Gains on Sales of Loans		(248	)		(272	)
Gains on Sales of Investment Securities		-			(35	)
Gains on Sales of Other Real Estate Owned and Repossessed Assets		(284	)		-
Decrease in Accrued Interest Receivable		268			118
Increase (Decrease) in Taxes Payable		111			(96	)
Decrease in Accrued Interest Payable		(36	)		(32	)
Receipt of Federal Income Tax Refund		1,218			-
Other, Net		49			(632	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		49,252			3,148
INVESTING ACTIVITIES
Investment Securities Available for Sale:
Proceeds From Principal Repayments and Maturities		32,068			39,513
Purchases of Securities		(28,276	)		(9,506	)
Investment Securities Held-to-Maturity:
Proceeds From Principal Repayments and Maturities		500			530
Net Increase in Loans		(21,194	)		(23,297	)
Purchase of Premises and Equipment		(365	)		(454	)
Retirements of Premises and Equipment		-			30
Proceeds From Sales of Other Real Estate Owned and Repossessed Assets		15			108
Decrease (Increase) in Restricted Equity Securities		738			(284	)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES		(16,514	)		6,640
FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits		(7,548	)		10,423
Net (Decrease) Increase in Short-Term Borrowings		(18,776	)		771
Principal Payments on Other Borrowed Funds		(15,136	)		(1,000	)
Proceeds from Other Borrowed Funds		15,000			-
Cash Dividends Paid		(2,565	)		(1,478	)
Treasury Stock, Purchases at Cost		-			(2,896	)
Exercise of Stock Options		-			206
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(29,025	)		6,026
INCREASE IN CASH AND CASH EQUIVALENTS		3,713			15,814
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR		11,751			16,417
CASH AND DUE FROM BANKS AT END OF PERIOD	$	15,464		$	32,231
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for:
Interest on deposits and borrowings (including interest credited to deposit accounts of $1,765 and $1,251 respectively)		2,086			1,372
Income taxes		1,433			1,225
Real estate acquired in settlement of loans		431			1,501

The accompanying notes are an integral part of these consolidated financial statements

4

 

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of CB Financial Services, Inc. (“CB Financial”) and its wholly owned subsidiary, Community Bank, (the “Bank”), and the Bank’s wholly-owned subsidiary, Exchange Underwriters, Inc. (“Exchange Underwriters”). CB Financial and the Bank are collectively referred to as the “Company”. All intercompany transactions and balances have been eliminated in consolidation.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and income and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, evaluation of securities for other-than-temporary impairment including related cash flow projections, goodwill impairment, and the valuation of deferred tax assets.

In the opinion of management, the accompanying unaudited interim financial statements include all adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations at the dates and for the periods presented. All of these adjustments are of a normal, recurring nature, and they are the only adjustments included in the accompanying unaudited interim financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Interim results are not necessarily indicative of results for a full year.

The Company evaluated the provisions of Accounting Standards Codification (“ASC”) Topic 280 and determined that segment reporting information related to Exchange Underwriters was not required to be presented because the segment comprises less than 10% of total interest and noninterest income and less than 10% of the combined assets of the Company.

The Company evaluated subsequent events through the date the consolidated financial statements were filed with the Securities and Exchange Commission and incorporated into the consolidated financial statements the effect of all material known events determined by ASC Topic 855, Subsequent Events, to be recognizable events.

Nature of Operations

The Company derives substantially all its income from banking and bank-related services which include interest earnings on commercial, commercial mortgage, residential real estate and consumer loan financing, as well as interest earnings on investment securities and fees generated from deposit services to its customers. The Company provides banking services primarily to communities in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties located in southwestern Pennsylvania. The Company also conducts insurance brokerage activities through Exchange Underwriters.

Acquired Loans

Loans that were acquired in the merger with FedFirst Financial Corporation were recorded at fair value with no carryover of the related allowance for credit losses. The fair value of the acquired loans was estimated by management with the assistance of a third party valuation specialist.

The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. The nonaccretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require an evaluation to determine the need for an allowance for loan losses. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the nonaccretable discount which is then reclassified as accretable discount that is recognized into interest income over the remaining life of the loan using the interest method. The evaluation of the amount of future cash flows that is expected to be collected is performed in a similar manner as that used to determine our allowance for credit losses. Charge-offs of the principal amount on acquired loans would be first applied to the nonaccretable discount portion of the fair value adjustment.

5

 

Reclassifications

Certain comparative amounts for the prior year have been reclassified to conform to the current year presentation. Such reclassifications did not affect net income or stockholders’ equity.

Recent Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which establishes a comprehensive revenue recognition standard for virtually all industries under GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. ASU 2014-09 specifies that an entity shall recognize revenue when, or as, the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when, or as, the customer obtains control of the asset. Entities are required to disclose qualitative and quantitative information on the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption not permitted. In July 2015, the FASB approved to defer for one year the effective date of this ASU to December 15, 2017 and to also allow entities to early adopt the standard, but not before December 31, 2016. The Company is evaluating the provisions of ASU 2014-09, but does not believe that its adoption will have a material impact on the Company’s financial condition and results of operations.

In January 2015, the FASB issued ASU 2015-01, Income Statement-Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU 2015-01 eliminates the requirement in ASC Subtopic 225-20 to consider whether an underlying event or transaction is extraordinary, and if so, to separately present the item in the income statement net of tax, after income from continuing operations. Items that are either unusual in nature or infrequently occurring will continue to be reported as a separate component of income from continuing operations. Alternatively, these amounts may still be disclosed in the notes to the financial statements. The same requirement has been expanded to include items that are both unusual and infrequent. ASU 2015-01 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted from the beginning of the fiscal year of adoption. The Company is evaluating the provisions of ASU 2015-01, but does not believe that its adoption will have a material impact on the Company’s financial condition and results of operations.

Note 2. Earnings Per Share

There are no convertible securities which would affect the numerator in calculating basic and diluted earnings per share; therefore, net income as presented on the Consolidated Statement of Income is used as the numerator.

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Weighted-Average Common Shares Outstanding		4,363,346			2,639,097			4,363,346			2,639,866
Average Treasury Stock Shares		(291,884	)		(290,774	)		(291,884	)		(290,910	)
Weighted-Average Common Shares and Common Stock Equivalents Used to Calculate Basic Earnings Per Share		4,071,462			2,348,323			4,071,462			2,348,956
Additional Common Stock Equivalents (Stock Options) Used to Calculate Diluted Earnings Per Share		-			-			-			5,528
Weighted-Average Common Shares and Common Stock Equivalents Used to Calculate Diluted Earnings Per Share		4,071,462			2,348,323			4,071,462			2,354,484
Earnings per share:
Basic	$	0.52		$	0.32		$	1.64		$	1.09
Diluted		0.52			0.32			1.64			1.09

6

 

Note 3. Investment Securities

The following table presents the amortized cost and fair value of investment securities available-for-sale at the dates indicated:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government Agencies	$	52,724	$	352	$	(3	)	$	53,073
Obligations of States and Political Subdivisions		42,865		829		(75	)		43,619
Mortgage-Backed Securities - Government-Sponsored Enterprises		3,593		55		-			3,648
Equity Securities - Mutual Funds		500		18		-			518
Equity Securities - Other		600		61		(4	)		657
Total	$	100,282	$	1,315	$	(82	)	$	101,515

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government Agencies	$	57,669	$	139	$	(157	)	$	57,651
Obligations of States and Political Subdivisions		41,611		886		(116	)		42,381
Mortgage-Backed Securities - Government-Sponsored Enterprises		4,240		33		-			4,273
Equity Securities - Mutual Funds		500		14		-			514
Equity Securities - Other		573		58		(1	)		630
Total	$	104,593	$	1,130	$	(274	)	$	105,449

The following table presents the amortized cost and fair value of investment securities held-to-maturity at the date indicated:

	(Dollars in thousands)
	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Obligations of States and Political Subdivisions	$	504	$	-	$	-	$	504

7

 

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at the dates indicated:

	(Dollars in thousands)
	September 30, 2015
	Less than 12 months							12 Months or Greater							Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses
U.S. Government Agencies		1	$	1,018	$	(3	)		-	$	-	$	-			1	$	1,018	$	(3	)
Obligations of States and Political Subdivisions		12		7,024		(45	)		9		5,368		(30	)		21		12,392		(75	)
Equity Securities - Other		2		100		(4	)		-		-		-			2		100		(4	)
Total		15	$	8,142	$	(52	)		9	$	5,368	$	(30	)		24	$	13,510	$	(82	)

	December 31, 2014
	Less than 12 months							12 Months or Greater							Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses
U.S. Government Agencies		10	$	26,101	$	(144	)		1	$	2,987	$	(13	)		11	$	29,088	$	(157	)
Obligations of States and Political Subdivisions		5		2,123		(9	)		22		13,590		(107	)		27		15,713		(116	)
Equity Securities - Other		1		48		(1	)		-		-		-			1		48		(1	)
Total		16	$	28,272	$	(154	)		23	$	16,577	$	(120	)		39	$	44,849	$	(274	)

For debt securities, the Company does not believe any individual unrealized loss as of September 30, 2015 and December 31, 2014 represents an other-than-temporary impairment. The Company performs a review of the entire securities portfolio on a quarterly basis to identify securities that may indicate an other-than-temporary impairment. The Company’s management considers the length of time and the extent to which the fair value has been less than cost, and the financial condition of the issuer. The securities that are temporarily impaired at September 30, 2015 and December 31, 2014 relate principally to changes in interest rates subsequent to the acquisition of the specific securities. The Company does not intend to sell or it is not more likely than not that it will be required to sell any of the securities in an unrealized loss position before recovery of its amortized cost or maturity of the security.

The following table presents the scheduled maturities of investment securities as of the date indicated:

	(Dollars in thousands)
	September 30, 2015
	Available-for-Sale
	Amortized Cost		Fair Value
Due in One Year or Less	$	2,577	$	2,618
Due after One Year through Five Years		37,259		37,574
Due after Five Years through Ten Years		49,424		49,950
Due after Ten Years		11,022		11,373
Total	$	100,282	$	101,515

Equity Securities – Mutual Funds and Equity Securities – Other do not have a scheduled maturity date, but have been included in the Due After Ten Years category.

8

 

Note 4. Loans and Related Allowance for Loan Loss

The Company’s loan portfolio is made up of four segments: real estate loans, commercial and industrial loans, consumer loans and other loans. These segments are further segregated between loans accounted for under the amortized cost method (“Originated Loans”) and acquired loans that were originally recorded at fair value with no carryover of the related pre-merger allowance for loan losses (“Loans Acquired at Fair Value”). The following table presents the major classifications of loans as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015						December 31, 2014
	Amount			Percent			Amount			Percent
Originated Loans
Real Estate:
Residential	$	164,362			35.8	%	$	161,719			39.4	%
Commercial		124,786			27.2			104,994			25.7
Construction		14,200			3.1			10,039			2.5
Commercial and Industrial		52,725			11.5			53,238			13.0
Consumer		98,044			21.4			76,242			18.6
Other		4,671			1.0			3,099			0.8
Total Originated Loans		458,788			100.0	%		409,331			100.0	%
Allowance for Loan Losses		(5,888	)					(5,195	)
Loans, Net	$	452,900					$	404,136
Loans Acquired at Fair Value
Real Estate:
Residential	$	109,078			52.4	%	$	161,561			58.4	%
Commercial		77,296			37.1			77,864			28.2
Construction		4,583			2.2			12,158			4.4
Commercial and Industrial		16,743			8.0			23,363			8.5
Consumer		625			0.3			1,369			0.5
Total Loans Acquired at Fair Value	$	208,325			100.0	%	$	276,315			100.0	%
Total Loans
Real Estate:
Residential	$	273,440			35.8	%	$	323,280			39.4	%
Commercial		202,082			27.2			182,858			25.7
Construction		18,783			3.1			22,197			2.5
Commercial and Industrial		69,468			11.5			76,601			13.0
Consumer		98,669			21.4			77,611			18.6
Other		4,671			1.0			3,099			0.8
Total Loans		667,113			100.0	%		685,646			100.0	%
Allowance for Loan Losses		(5,888	)					(5,195	)
Loans, Net	$	661,225					$	680,451

Total unamortized net deferred loan fees were $667,000 and $322,000 at September 30, 2015 and December 31, 2014, respectively.

Real estate loans serviced for others, which are not included in the Consolidated Statement of Financial Condition, totaled $70.0 million and $62.3 million at September 30, 2015 and December 31, 2014, respectively.

9

 

The following table presents loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the dates indicated. At September 30, 2015 and December 31, 2014, there were no loans in the criticized category of Loss within the internal risk rating system.

	(Dollars in thousands)
	September 30, 2015
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	163,766	$	227	$	364	$	5	$	164,362
Commercial		112,999		4,529		6,176		1,082		124,786
Construction		13,194		744		-		262		14,200
Commercial and Industrial		48,936		2,177		1,612		-		52,725
Consumer		98,004		-		40		-		98,044
Other		4,671		-		-		-		4,671
Total Originated Loans	$	441,570	$	7,677	$	8,192	$	1,349	$	458,788
Loans Acquired at Fair Value
Real Estate:
Residential	$	106,060	$	-	$	3,018	$	-	$	109,078
Commercial		70,424		4,342		2,530		-		77,296
Construction		4,583		-		-		-		4,583
Commercial and Industrial		15,501		1,200		42		-		16,743
Consumer		625		-		-		-		625
Total Loans Acquired at Fair Value	$	197,193	$	5,542	$	5,590	$	-	$	208,325
Total Loans
Real Estate:
Residential	$	269,826	$	227	$	3,382	$	5	$	273,440
Commercial		183,423		8,871		8,706		1,082		202,082
Construction		17,777		744		-		262		18,783
Commercial and Industrial		64,437		3,377		1,654		-		69,468
Consumer		98,629		-		40		-		98,669
Other		4,671		-		-		-		4,671
Total Loans	$	638,763	$	13,219	$	13,782	$	1,349	$	667,113

10

 

	December 31, 2014
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	161,191	$	194	$	315	$	19	$	161,719
Commercial		89,721		10,761		3,820		692		104,994
Construction		8,805		101		789		344		10,039
Commercial and Industrial		49,612		2,941		383		302		53,238
Consumer		76,238		-		4		-		76,242
Other		3,099		-		-		-		3,099
Total Originated Loans	$	388,666	$	13,997	$	5,311	$	1,357	$	409,331
Loans Acquired at Fair Value
Real Estate:
Residential	$	159,633	$	-	$	1,928	$	-	$	161,561
Commercial		73,280		2,429		2,155		-		77,864
Construction		12,158		-		-		-		12,158
Commercial and Industrial		21,913		1,450		-		-		23,363
Consumer		1,369		-		-		-		1,369
Total Loans Acquired at Fair Value	$	268,353	$	3,879	$	4,083	$	-	$	276,315
Total Loans
Real Estate:
Residential	$	320,824	$	194	$	2,243	$	19	$	323,280
Commercial		163,001		13,190		5,975		692		182,858
Construction		20,963		101		789		344		22,197
Commercial and Industrial		71,525		4,391		383		302		76,601
Consumer		77,607		-		4		-		77,611
Other		3,099		-		-		-		3,099
Total Loans	$	657,019	$	17,876	$	9,394	$	1,357	$	685,646

11

 

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated.

	September 30, 2015
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	163,613	$	107	$	274	$	-	$	381	$	368	$	164,362
Commercial		121,889		343		-		-		343		2,554		124,786
Construction		13,938		-		-		-		-		262		14,200
Commercial and Industrial		52,691		34		-		-		34		-		52,725
Consumer		97,570		364		70		-		434		40		98,044
Other		4,671		-		-		-		-		-		4,671
Total Originated Loans	$	454,372	$	848	$	344	$	-	$	1,192	$	3,224	$	458,788
Loans Acquired at Fair Value
Real Estate:
Residential	$	106,515	$	14	$	408	$	54	$	476	$	2,087	$	109,078
Commercial		75,995		210		671		-		881		420		77,296
Construction		4,583		-		-		-		-		-		4,583
Commercial and Industrial		16,685		-		15		43		58		-		16,743
Consumer		565		-		5		55		60		-		625
Total Loans Acquired at Fair Value	$	204,343	$	224	$	1,099	$	152	$	1,475	$	2,507	$	208,325
Total Loans
Real Estate:
Residential	$	270,128	$	121	$	682	$	54	$	857	$	2,455	$	273,440
Commercial		197,884		553		671		-		1,224		2,974		202,082
Construction		18,521		-		-		-		-		262		18,783
Commercial and Industrial		69,376		34		15		43		92		-		69,468
Consumer		98,135		364		75		55		494		40		98,669
Other		4,671		-		-		-		-		-		4,671
Total Loans	$	658,715	$	1,072	$	1,443	$	152	$	2,667	$	5,731	$	667,113

12

 

	December 31, 2014
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	161,145	$	249	$	16	$	-	$	265	$	309	$	161,719
Commercial		102,016		2,397		-		-		2,397		581		104,994
Construction		9,695		-		-		-		-		344		10,039
Commercial and Industrial		53,234		-		-		-		-		4		53,238
Consumer		75,839		369		24		10		403		-		76,242
Other		3,099		-		-		-		-		-		3,099
Total Originated Loans	$	405,028	$	3,015	$	40	$	10	$	3,065	$	1,238	$	409,331
Loans Acquired at Fair Value
Real Estate:
Residential	$	158,576	$	1,364	$	18	$	369	$	1,751	$	1,234	$	161,561
Commercial		77,252		128		-		-		128		484		77,864
Construction		12,158		-		-		-		-		-		12,158
Commercial and Industrial		23,356		7		-		-		7		-		23,363
Consumer		1,341		28		-		-		28		-		1,369
Total Loans Acquired at Fair Value	$	272,683	$	1,527	$	18	$	369	$	1,914	$	1,718	$	276,315
Total Loans
Real Estate:
Residential	$	319,721	$	1,613	$	34	$	369	$	2,016	$	1,543	$	323,280
Commercial		179,268		2,525		-		-		2,525		1,065		182,858
Construction		21,853		-		-		-		-		344		22,197
Commercial and Industrial		76,590		7		-		-		7		4		76,601
Consumer		77,180		397		24		10		431		-		77,611
Other		3,099		-		-		-		-		-		3,099
Total Loans	$	677,711	$	4,542	$	58	$	379	$	4,979	$	2,956	$	685,646

13

 

The following table sets forth the amounts and categories of our nonperforming assets at the dates indicated. Included in nonperforming loans and assets are troubled debt restructurings (“TDRs”), which are loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties. Nonaccrual TDRs are included in their specific loan category in the nonaccrual loans section.

	(Dollars in Thousands)
	September 30,  2015			December 31,  2014
Nonaccrual Loans:
Real Estate:
Residential	$	2,455		$	1,543
Commercial		2,974			1,065
Construction		262			344
Commercial and Industrial		-			4
Consumer		40			-
Total Nonaccrual Loans		5,731			2,956
Accruing Loans Past Due 90 Days or More:
Real Estate:
Residential		54			369
Commercial and Industrial		43			-
Consumer		55			10
Total Accruing Loans 90 Days or More Past Due		152			379
Total Nonaccrual Loans and Accruing Loans 90 Days or More Past Due		5,883			3,335
Troubled Debt Restructurings, Accruing:
Originated Loans:
Real Estate - Commercial		1,116			246
Commercial and Industrial		7			310
Total Originated Loans		1,123			556
Loans Acquired at Fair Value:
Real Estate - Residential		1,306			1,337
Real Estate - Commercial		1,521			1,800
Total Loans Acquired at Fair Value		2,827			3,137
Total Troubled Debt Restructurings, Accruing		3,950			3,693
Total Nonperforming Loans		9,833			7,028
Real Estate Owned:
Residential		151			104
Other		174			174
Total Real Estate Owned		325			278
Total Nonperforming Assets	$	10,158		$	7,306
Nonperforming Loans to Total Loans		1.47	%		1.03	%
Nonperforming Assets to Total Assets		1.23			0.86

The recorded investment of residential real estate loans for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction was $2.8 million and $2.7 million at September 30, 2015 and December 31, 2014, respectively.

14

 

TDRs typically are the result of our loss mitigation activities whereby concessions are granted to minimize loss and avoid foreclosure or repossession of collateral. The concessions granted for the TDRs in our portfolio primarily consist of, but are not limited to, modification of payment or other terms, temporary rate modification and extension of maturity date. Loans classified as TDRs consisted of 12 loans totaling $4.2 million and 13 loans totaling $4.0 million at September 30, 2015 and December 31, 2014, respectively. Originated loans classified as TDRs consisted of 4 loans totaling $1.4 million and $830,000, respectively, at September 30, 2015 and December 31, 2014. Loans acquired at fair value as TDRs consisted of 8 loans totaling $2.8 million and 9 loans totaling $3.1 million at September 30, 2015 and December 31, 2014, respectively.

During the nine months ended September 30, 2015, one commercial loan previously identified as an originated TDR and two other commercial loans were consolidated into one loan in a new TDR transaction. In addition, two commercial loans previously identified as originated TDRs were refinanced in new TDR transactions. During the three and nine months ended September 30, 2015, one commercial TDR acquired at fair value paid off. No TDRs have subsequently defaulted during the three or nine months ended September 30, 2015 and 2014, respectively.

The following table presents information at the time of modification related to loans modified as TDRs during the periods indicated.

	Nine Months Ended September 30, 2015
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Commercial		2	$	912	$	1,135	$	108
Total		2	$	912	$	1,135	$	108

	Three and Nine Months Ended September 30, 2014
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Commercial		1	$	9	$	9	$	-
Total		1	$	9	$	9	$	-

15

 

The following table presents a summary of the loans considered to be impaired as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Residential	$	6	$	-	$	18	$	16	$	1
Commercial		6,246		-		6,246		6,374		173
Construction		262		-		262		311		-
Commercial and Industrial		1,406		-		1,406		1,409		43
Total With No Related Allowance Recorded	$	7,920	$	-	$	7,932	$	8,110	$	217
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,306	$	-	$	1,306	$	1,320	$	50
Commercial		3,107		-		3,166		3,345		120
Commercial and Industrial		42		-		42		47		1
Total With No Related Allowance Recorded	$	4,455	$	-	$	4,514	$	4,712	$	171
Total Loans
Real Estate:
Residential	$	1,312	$	-	$	1,324	$	1,336	$	51
Commercial		9,353		-		9,412		9,719		293
Construction		262		-		262		311		-
Commercial and Industrial		1,448		-		1,448		1,456		44
Total With No Related Allowance Recorded	$	12,375	$	-	$	12,446	$	12,822	$	388
With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,432	$	405	$	1,451	$	1,456	$	23
Commercial and Industrial		213		135		213		239		10
Total With A Related Allowance Recorded	$	1,645	$	540	$	1,664	$	1,695	$	33
Total Impaired Loans:
Originated Loans
Real Estate:
Residential	$	6	$	-	$	18	$	16	$	1
Commercial		7,678		405		7,697		7,830		196
Construction		262		-		262		311		-
Commercial and Industrial		1,619		135		1,619		1,648		53
Total Impaired Loans	$	9,565	$	540	$	9,596	$	9,805	$	250
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,306	$	-	$	1,306	$	1,320	$	50
Commercial		3,107		-		3,166		3,345		120
Commercial and Industrial		42		-		42		47		1
Total Impaired Loans	$	4,455	$	-	$	4,514	$	4,712	$	171
Total Loans
Real Estate:
Residential	$	1,312	$	-	$	1,324	$	1,336	$	51
Commercial		10,785		405		10,863		11,175		316
Construction		262		-		262		311		-
Commercial and Industrial		1,661		135		1,661		1,695		54
Total Impaired Loans	$	14,020	$	540	$	14,110	$	14,517	$	421

16

 

	December 31, 2014
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Residential	$	45	$	-	$	70	$	55	$	-
Commercial		3,352		-		3,366		4,300		149
Commercial and Industrial		369		-		369		426		17
Total With No Related Allowance Recorded	$	3,766	$	-	$	3,805	$	4,781	$	166
Loans Acquired at Fair Value
Real Estate:
Residential	$	947	$	-	$	947	$	957	$	51
Commercial		1,846		-		1,885		1,926		93
Total With No Related Allowance Recorded	$	2,793	$	-	$	2,832	$	2,883	$	144
Total Loans
Real Estate:
Residential	$	992	$	-	$	1,017	$	1,012	$	51
Commercial		5,198		-		5,251		6,226		242
Commercial and Industrial		369		-		369		426		17
Total With No Related Allowance Recorded	$	6,559	$	-	$	6,637	$	7,664	$	310
With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,382	$	519	$	1,389	$	1,427	$	51
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		317		254		317		319		17
Total With A Related Allowance Recorded	$	2,832	$	873	$	2,839	$	3,112	$	109
Total Loans
Originated Loans
Real Estate:
Residential	$	45	$	-	$	70	$	55	$	-
Commercial		4,734		519		4,755		5,727		200
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		686		254		686		745		34
Total Impaired Loans	$	6,598	$	873	$	6,644	$	7,893	$	275
Loans Acquired at Fair Value
Real Estate:
Residential	$	947	$	-	$	947	$	957	$	51
Commercial		1,846		-		1,885		1,926		93
Total Impaired Loans	$	2,793	$	-	$	2,832	$	2,883	$	144
Total Loans
Real Estate:
Residential	$	992	$	-	$	1,017	$	1,012	$	51
Commercial		6,580		519		6,640		7,653		293
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		686		254		686		745		34
Total Impaired Loans	$	9,391	$	873	$	9,476	$	10,776	$	419

17

 

The following table presents the activity in the allowance for loan losses summarized by major classifications and segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for potential impairment for the periods indicated.

	(Dollars in thousands)
	Real Estate Residential			Real Estate Commercial			Real Estate Construction			Commercial and Industrial			Consumer			Unallocated			Total
June 30, 2015	$	1,667		$	1,746		$	87		$	917		$	1,338		$	(69	)	$	5,686
Charge-offs		(28	)		-			-			-			(114	)		-			(142	)
Recoveries		4			1			-			-			39			-			44
Provision		(87	)		135			28			(94	)		241			77			300
September 30, 2015	$	1,556		$	1,882		$	115		$	823		$	1,504		$	8		$	5,888
December 31, 2014	$	2,690		$	582		$	122		$	684		$	1,015		$	102		$	5,195
Charge-offs		(139	)		(18	)		-			-			(230	)		-			(387	)
Recoveries		9			4			-			10			82			-			105
Provision		(1,004	)		1,314			(7	)		129			637			(94	)		975
September 30, 2015	$	1,556		$	1,882		$	115		$	823		$	1,504		$	8		$	5,888
Originated Loans
Individually Evaluated for Impairment	$	-		$	405		$	-		$	135		$	-		$	-		$	540
Collectively Evaluated for Potential Impairment	$	1,556		$	1,477		$	115		$	688		$	1,504		$	8		$	5,348

	Real Estate Residential			Real Estate Commercial			Real Estate Construction			Commercial and Industrial			Consumer			Unallocated			Total
June 30, 2014	$	1,478		$	1,712		$	293		$	1,027		$	571		$	259		$	5,340
Charge-offs		-			-			-			-			(36	)		-			(36	)
Recoveries		1			-			-			2			30			-			33
Provision		10			(2	)		(64	)		(55	)		265			(154	)		-
September 30, 2014	$	1,489		$	1,710		$	229		$	974		$	830		$	105		$	5,337
December 31, 2013	$	1,481		$	1,703		$	355		$	1,013		$	592		$	238		$	5,382
Charge-offs		(10	)		-			-			-			(103	)		-			(113	)
Recoveries		2			-			-			4			62			-			68
Provision		16			7			(126	)		(43	)		279			(133	)		-
September 30, 2014	$	1,489		$	1,710		$	229		$	974		$	830		$	105		$	5,337
Originated Loans
Individually Evaluated for Impairment	$	-		$	460		$	192		$	244		$	-		$	-		$	896
Collectively Evaluated for Potential Impairment	$	1,489		$	1,250		$	37		$	730		$	830		$	105		$	4,441

December 31, 2014	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Unallocated		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	519	$	100	$	254	$	-	$	-	$	873
Collectively Evaluated for Potential Impairment	$	2,690	$	63	$	22	$	430	$	1,015	$	102	$	4,322

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The following table presents changes in the accretable discount on the loans acquired at fair value for the dates indicated.

	Accretable Discount
Balance at December 31, 2014	$	4,359
Accretable yield		(839	)
Nonaccretable premium		78
Balance at September 30, 2015	$	3,598

The following table presents the major classifications of loans summarized by individually evaluated for impairment and collectively evaluated for potential impairment as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	6	$	7,678	$	262	$	1,619	$	-	$	-	$	9,565
Collectively Evaluated for Potential Impairment		164,356		117,108		13,938		51,106		98,044		4,671		449,223
	$	164,362	$	124,786	$	14,200	$	52,725	$	98,044	$	4,671	$	458,788
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	1,306	$	3,107	$	-	$	42	$	-	$	-	$	4,455
Collectively Evaluated for Potential Impairment		107,772		74,189		4,583		16,701		625		-		203,870
	$	109,078	$	77,296	$	4,583	$	16,743	$	625	$	-	$	208,325
Total Loans
Individually Evaluated for Impairment	$	1,312	$	10,785	$	262	$	1,661	$	-	$	-	$	14,020
Collectively Evaluated for Potential Impairment		272,128		191,297		18,521		67,807		98,669		4,671		653,093
	$	273,440	$	202,082	$	18,783	$	69,468	$	98,669	$	4,671	$	667,113

	December 31, 2014
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	45	$	4,734	$	1,133	$	686	$	-	$	-	$	6,598
Collectively Evaluated for Potential Impairment		161,674		100,260		8,906		52,552		76,242		3,099		402,733
	$	161,719	$	104,994	$	10,039	$	53,238	$	76,242	$	3,099	$	409,331
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	947	$	1,846	$	-	$	-	$	-	$	-	$	2,793
Collectively Evaluated for Potential Impairment		160,614		76,018		12,158		23,363		1,369		-		273,522
	$	161,561	$	77,864	$	12,158	$	23,363	$	1,369	$	-	$	276,315
Total Loans
Individually Evaluated for Impairment	$	992	$	6,580	$	1,133	$	686	$	-	$	-	$	9,391
Collectively Evaluated for Potential Impairment		322,288		176,278		21,064		75,915		77,611		3,099		676,255
	$	323,280	$	182,858	$	22,197	$	76,601	$	77,611	$	3,099	$	685,646

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Note 5. Deposits

The following table shows the maturities of time deposits for the next five years and beyond at the date indicated (dollars in thousands).

Maturity Period:	September 30, 2015
One Year or Less	$	62,907
Over One Through Two Years		28,915
Over Two Through Three Years		16,342
Over Three Through Four Years		11,628
Over Four Through Five Years		17,579
Over Five Years		11,008
Total	$	148,379

The balance in time deposits that meet or exceed the FDIC insurance limit of $250,000 totaled $33.1 million and $26.9 million as of September 30, 2015 and December 31, 2014, respectively.

Note 6. Short-Term Borrowings

The following table sets forth the components of short-term borrowings as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015					December 31, 2014
	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Short-term Borrowings
Federal Funds Purchased:
Average Balance Outstanding During the Period	$	341		0.39	%	$	375		0.46	%
Maximum Amount Outstanding at any Month End		100					1,850
FHLB Borrowings:
Balance at Period End		-		-			25,800		0.32
Average Balance Outstanding During the Period		7,531		0.36			4,283		0.31
Maximum Amount Outstanding at any Month End		30,950					25,800
Securities Sold Under Agreements to Repurchase:
Balance at Period End		27,908		0.18			20,884		0.17
Average Balance Outstanding During the Period		22,956		0.24			17,525		0.26
Maximum Amount Outstanding at any Month End		27,908					25,893
Securities Collaterizing the Agreements at Period-End:
Carrying Value		33,034					23,244
Market Value		33,289					23,243

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Note 7. Other Borrowed Funds

Other borrowed funds consist of fixed rate advances from the Federal Home Loan Bank of Pittsburgh (“FHLB”). The following table sets forth the scheduled maturities of other borrowed funds at the dates indicated.

	(Dollars in thousands)
	September 30, 2015				December 31, 2014
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Due in One Year	$	-		-%	$	15,136		3.78	%
Due After One Year to Two Years		3,500		0.94		-		-
Due After Two Years to Three Years		3,500		1.35		-		-
Due After Three Years to Four Years		3,000		1.68		-		-
Due After Four Years to Five Years		3,000		1.88		-		-
Due After Five Years		2,000		2.12		-		-
Total	$	15,000		1.53	$	15,136		3.78

As of September 30, 2015, the Company maintained a credit arrangement with a maximum borrowing limit of approximately $297.1 million with the FHLB. This arrangement is subject to annual renewal, incurs no service charge, and is secured by a blanket security agreement on outstanding residential mortgage loans and the Company’s investment in FHLB stock. Under this arrangement the Company had available a variable rate Line of Credit in the amount of $20.0 million as of September 30, 2015 and December 31, 2014.

The Company maintains a Borrower-In-Custody of Collateral line of credit agreement with the Federal Reserve Bank for $40.0 million that requires quarterly certification of collateral, is subject to annual renewal, incurs no service charge and is secured by commercial and consumer indirect auto loans. The Company also maintains multiple line of credit arrangements with various banks totaling $40.0 million. As of September 30, 2015 and December 31, 2014, no draws had been taken on these facilities.

Note 8. Commitments and Contingent Liabilities

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business primarily to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and performance letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Statement of Financial Condition. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

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 and performance letters of credit written 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.

The following table presents the unused and available credit balances of financial instruments whose contracts represent credit risk at the dates indicated.

	(Dollars in thousands)
	September 30, 2015		December 31, 2014
Standby Letters of Credit	$	21,229	$	18,260
Performance Letters of Credit		2,224		2,986
Construction Mortgages		25,334		12,241
Personal Lines of Credit		5,847		5,675
Overdraft Protection Lines		6,158		6,505
Home Equity Lines of Credit		14,237		13,253
Commercial Lines of Credit		52,043		54,301
	$	127,072	$	113,221

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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 require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’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 counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Performance letters of credit represent conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance-related contracts. The coverage period for these instruments is typically a one-year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized upon expiration of the letter. For secured letters of credit, the collateral is typically Company deposit instruments or customer business assets.

Note 9. Fair Value Disclosure

FASB ASC 820 “Fair Value Measurement” defines fair value and provides the framework for measuring fair value and required disclosures about fair value measurements. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the market date. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used in valuation methods to determine fair value.

The three levels of fair value hierarchy are as follows:

Level I –	Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available.
Level II –	Fair value is based on significant inputs, other than Level I inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level II inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets, and other observable inputs.
Level III –	Fair value would be based on significant unobservable inputs. Examples of valuation methodologies that would result in Level III classification include option pricing models, discounted cash flows, and other similar techniques.

This hierarchy requires the use of observable market data when available. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.

The following table presents the financial assets measured at fair value on a recurring basis and reported on the Consolidated Statement of Financial Condition as of the dates indicated, by level within the fair value hierarchy. The majority of the Company’s securities are included in Level II of the fair value hierarchy. Fair values for Level II securities were primarily determined by a third party pricing service using both quoted prices for similar assets, when available, and model-based valuation techniques that derive fair value based on market-corroborated data, such as instruments with similar prepayment speeds and default interest rates. The standard inputs that are normally used include benchmark yields of like securities, reportable trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications.

		(Dollars in thousands)
	Valuation Technique	September 30, 2015		December 31, 2014
Available for Sales Securities:
U.S. Government Agencies	Level II	$	53,073	$	57,651
Obligations of States and Political Subdivisions	Level II		43,619		42,381
Mortgage-Backed Securities - Government-Sponsored Enterprises	Level II		3,648		4,273
Equity Securities - Mutual Funds	Level I		518		514
Equity Securities - Other	Level I		657		630
Total Available for Sale Securities		$	101,515	$	105,449

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The following table presents the financial assets measured at fair value on a nonrecurring basis on the Consolidated Statement of Financial Condition as of the dates indicated by level within the fair value hierarchy. The table also presents the significant unobservable inputs used in the fair value measurements. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include quoted market prices for identical assets classified as Level I inputs or observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs.

		(Dollars in thousands)
		Fair Value at						Significant
Financial Asset	Valuation Technique	September 30, 2015		December 31, 2014		Valuation Technique	Significant Unobservable Inputs	Unobservable  Input Value
Impaired Loans	Level III	$	1,105	$	1,959	Market Comparable Properties	Marketability Discount	10%	to	30% (1)
OREO	Level III		431		77	Market Comparable Properties	Marketability Discount	10%	to	50% (1)

⁽¹⁾ Range includes discounts taken since appraisal and estimated values.

Impaired loans are evaluated when the loan is identified as impaired and valued at the lower of cost or fair value at that time. Fair value is measured based on the value of the collateral securing these loans and is classified as Level III in the fair value hierarchy. At September 30, 2015 and December 31, 2014, the fair value of impaired loans consists of the loan balance of $1.6 million and $2.8 million, respectively, less their specific valuation allowances of $540,000 and $873,000, respectively.

Financial instruments are defined as cash, evidence of an ownership in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

Fair value 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. If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses and other factors, as determined through various option pricing formulas or simulation modeling. As many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the estimated fair values are based may have significant impact on the resulting estimated fair values.

As certain assets such as deferred tax assets and premises and equipment are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Company.

The Company employs simulation modeling in determining the estimated fair value of financial instruments for which quoted market prices are not available, based upon the following assumptions:

Cash and Due From Banks, Restricted Stock, Bank-Owned Life Insurance, Accrued Interest Receivable, Short-Term Borrowings, and Accrued Interest Payable

The fair value is equal to the current carrying value.

Investment Securities

The fair value of investment securities is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted prices.

Loans Receivable

For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans and other consumer loans are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics. Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates for comparable loans. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable.

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Deposit Liabilities

The fair values disclosed for demand deposits, are, by definition, equal to the amount payable on demand at the reporting date. The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits.

Borrowed Funds

Fair values of borrowed funds are estimated using discounted cash flow analyses based on current market rates for similar types of borrowing arrangements.

Commitments to Extend Credit

These financial instruments are generally not subject to sale and estimated fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment or letter of credit, and the fair value determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure. The contractual amounts of unfunded commitments and letters of credit are presented in Note 8.

The following table presents the estimated fair values of the Company’s financial instruments at the dates indicated.

		(Dollars in thousands)
		September 30, 2015				December 31, 2014
	Valuation Method Used	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and Due From Banks:
Interest Bearing	Level I	$	4,577	$	4,577	$	5,933	$	5,933
Non-Interest Bearing	Level I		10,887		10,887		5,818		5,818
Investment Securities:
Available for Sale	See Above		101,515		101,515		105,449		105,449
Held-to-Maturity	Level II		-		-		504		504
Loans, Net	Level III		661,225		679,177		680,451		695,844
Restricted Stock	Level II		2,651		2,651		3,390		3,390
Bank-Owned Life Insurance	Level II		18,089		18,089		17,735		17,735
Accrued Interest Receivable	Level II		2,267		2,267		2,535		2,535
Financial Liabilities:
Deposits	Level II		689,946		690,455		697,494		698,418
Short-term Borrowings	Level II		27,908		27,908		46,684		46,684
Other Borrowed Funds	Level III		15,000		15,061		15,136		15,305
Accrued Interest Payable	Level II		312		312		348		348

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This discussion should be read in conjunction with the unaudited consolidated financial statements, notes and tables included in this report. For further information, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Forward-Looking Statements

This report contains certain “forward-looking statements” within the meaning of the federal securities laws. These statements are not historical facts, but rather statements based on the Company’s current expectations regarding its business strategies, intended results and future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

24

 

Management’s ability to predict results or the effect of future plans or strategies is inherently uncertain. Factors which could affect actual results include the following:

· General and local economic conditions;

· Changes in interest rates, deposit flows, demand for loans, real estate values and competition;

· Competitive products and pricing;

· The ability of our customers to make scheduled loan payments;

· Loan delinquency rates;

· Our ability to manage the risks involved in our business;

· Our ability to integrate the operations of businesses we acquire;

· Inflation, market and monetary fluctuations;

· CB Financial’s ability to control costs and expenses;

· Changes in federal and state legislation and regulation (i.e. the effect of new capital standards to be imposed by banking regulators and the implementation of the Dodd-Frank Act).

The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

General

CB Financial Services, Inc. (“CB Financial”) is a bank holding company established in 2006. CB Financial’s business activity is conducted through its wholly owned banking subsidiary Community Bank (“the Bank”). CB Financial and the Bank are collectively referred to as the “Company.” All significant intercompany transactions have been eliminated.

The Bank is a Pennsylvania-chartered commercial bank headquartered in Carmichaels, Pennsylvania. The Bank operates from 16 offices in Greene, Allegheny, Washington, Fayette and Westmoreland Counties in southwestern Pennsylvania. The Bank is a community-oriented institution offering residential and commercial real estate loans, commercial and industrial loans, and consumer loans as well as a variety of deposit products for individuals and businesses in its market area. Property and casualty, commercial liability, surety and other insurance products are offered through Exchange Underwriters, Inc, the Bank’s wholly-owned subsidiary that is a full-service, independent insurance agency.

On October 31, 2014, the Company completed its merger with FedFirst Financial Corporation (“FedFirst” or the “merger”), the holding company for First Federal Savings Bank, a community bank based in Monessen, Pennsylvania. The merger resulted in the addition of five branches and expanded the Company’s reach into Fayette and Westmoreland counties in southwestern Pennsylvania.

The Bank’s website address is www.communitybank.tv. Information on the website is not and should not be considered a part of this Form 10-Q.

Overview

The following discussion and analysis is presented to assist in the understanding and evaluation of our consolidated financial condition and results of operations. It is intended to complement the unaudited consolidated financial statements and notes thereto appearing elsewhere in this Form 10-Q and should be read in conjunction therewith. The detailed discussion focuses on our consolidated financial condition as of September 30, 2015 compared to the financial condition as of December 31, 2014 and the consolidated results of operations for the three and nine months ended September 30, 2015 and 2014.

Our results of operations depend primarily on our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets and the interest we pay on our interest-bearing liabilities. Our results of operations also are affected by our provisions for loan losses, noninterest income and noninterest expense. Noninterest income consists primarily of fees and service charges on deposit accounts, fees and charges on loans, insurance commissions, income from bank-owned life insurance and other income. Noninterest expense consists primarily of expenses related to salaries and employee benefits, occupancy and equipment, contracted services, legal fees, other real estate owned, advertising and promotion, stationery and supplies, deposit and general insurance and other expenses.

Financial institutions like us, in general, are significantly affected by economic conditions, competition, and the monetary and fiscal policies of the federal government. Lending activities are influenced by the demand for and supply of housing, competition among lenders, interest rate conditions, and funds availability. Our operations and lending are principally concentrated in the southwestern Pennsylvania market area.

25

 

Statement of Financial Condition Analysis

Assets. Total assets decreased $22.2 million, or 2.6%, to $824.1 million at September 30, 2015 compared to $846.3 million at December 31, 2014.

Investment securities classified as available-for-sale decreased $3.9 million, or 3.7%, to $101.5 million at September 30, 2015 compared to $105.4 million at December 31, 2014. This decrease was primarily the result of calls and maturities of U.S. government agencies and obligations of states and political subdivisions that were utilized to pay down borrowings and were partially reinvested in U.S. government agencies and obligations of states and political subdivisions.

Loans, net, decreased $19.2 million, or 2.8%, to $661.2 million at September 30, 2015 compared to $680.5 million at December 31, 2014 primarily due to $38.2 million of residential loan sales in the second quarter partially offset by increases of $21.1 million in consumer loans (mainly indirect auto loans) and $19.2 million in commercial real estate loans. The loan sales were primarily comprised of 30-year fixed rate mortgage loans that were acquired in the merger and were secured by properties located outside the Bank’s normal lending area within the five counties it conducts business. The Company utilized the proceeds from the loan sales to payoff $14.0 million of borrowings in the third quarter and to fund commercial loan originations, which have shorter interest rate repricing durations than mortgage loans.

Other assets decreased $1.4 million, or 15.4%, primarily due to the receipt of a $1.2 million federal income tax refund.

Liabilities. Total liabilities decreased $26.5 million, or 3.5%, to $737.9 million at September 30, 2015 compared to $764.4 million at December 31, 2014.

Total deposits decreased $7.5 million, or 1.1%, to $689.9 million at September 30, 2015 compared to $697.5 million at December 31, 2014. There were decreases of $17.8 million in money market accounts, $3.7 million in NOW accounts and $3.2 million in time deposits, partially offset by increases of $12.7 million in brokered deposits and $4.4 million in savings accounts. The decrease in deposit balances is partly attributable to a decline in school district deposits, which is a seasonal fluctuation, as well as a decline in oil and gas industry related deposits. Brokered deposits increased primarily due to the Bank participating in a reciprocal deposit network, which allows participating institutions to both send and receive identical amounts simultaneously and provides increased FDIC insurance coverage on customer deposit amounts greater than $250,000. The reciprocal deposit network does not share the same characteristics of traditional brokered deposits because they are based on actual customer relationships. Due to the low interest rate environment, the Bank has been selective on offering promotional interest rates and has concentrated its efforts on increasing noninterest-bearing accounts by building strong customer relationships.

Short-term borrowings decreased $18.8 million, or 40.2%, to $27.9 million at September 30, 2015 compared to $46.7 million at December 31, 2014. At September 30, 2015, short-term borrowings were comprised entirely of $27.9 million of securities sold under agreements to repurchase compared to $20.9 million at December 31, 2014. The increase is related to business deposit customers whose funds, above designated target balances, are transferred into an overnight interest-earning investment account by purchasing securities from the Bank’s investment portfolio under an agreement to repurchase. In addition, in the first quarter, a portion of FHLB short-term borrowings were replaced with $15.0 million in long-term borrowings with laddered maturities designed to mitigate the Company’s interest rate risk in the event of rising interest rates. Funds generated from loan sales and security maturities and calls were utilized to payoff FHLB short-term borrowings and $15.0 million of long-term FHLB borrowings. As a result of current year activity, the weighted average interest rate on long-term borrowings decreased from 3.78% to 1.53%.

Stockholders’ Equity. Stockholders’ equity increased $4.3 million, or 5.3%, to $86.3 million at September 30, 2015 compared to $81.9 million at December 31, 2014. During the period, net income was $6.7 million and the Company paid $2.6 million in dividends to stockholders.

26

 

Results of Operations for the Three Months Ended September 30, 2015 and 2014

Overview. Net income increased $1.4 million, to $2.1 million, for the three months ended September 30, 2015 compared to $739,000 for the three months ended September 30, 2014. The increase is primarily due to income generated in the current period from the merger in the fourth quarter of 2014 as well as $368,000 of merger-related expenses incurred in the prior period only.

Net Interest Income. Net interest income increased $3.1 million, or 74.1%, to $7.3 million for the three months ended September 30, 2015 compared to $4.2 million for the three months ended September 30, 2014.

Interest and dividend income increased $3.3 million, or 72.3%, to $7.9 million for the three months ended September 30, 2015 compared to $4.6 million for the three months ended September 30, 2014. Interest income on loans increased $3.3 million due to an increase in average loans outstanding of $274.6 million primarily due to the merger. Despite a decrease of $7.9 million in the average balance, interest income on taxable securities increased $50,000 due to an increase of 53 basis points in yield from new purchases or from higher yields on the remaining securities in the portfolio. Other interest and dividend income increased $13,000 primarily due to an increase in FHLB stock dividends. As a result of an increase in borrowings compared to the prior period, the Bank was required to hold additional FHLB stock. Interest income on securities exempt from federal tax decreased $40,000 due to deploying proceeds from security calls and maturities into loans and for merger-related funding purposes in the prior period. There was a decrease of $3.2 million in the average balance on securities exempt from federal tax and a decrease of 25 basis points in yield as a result of purchasing securities with lower prevailing yields.

Interest expense increased $232,000, or 54.3%, to $659,000 for the three months ended September 30, 2015 compared to $427,000 for the three months ended September 30, 2014. Interest expense on deposits increased $189,000 due to an increase in average interest-bearing deposits of $180.0 million primarily due to the merger. Despite the increase in average balances, the average cost of interest-bearing deposits decreased 1 basis point, primarily related to the repricing of maturing certificates of deposit to lower rates. Interest expense on other borrowed funds and short-term borrowings increased $38,000 and $5,000, respectively, primarily due to an increase in average borrowings of $24.8 million.

27

 

Average Balances and Yields. The following table presents information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. Average balances are derived from daily balances over the periods indicated. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Tax-equivalent yield adjustments have been made for tax exempt loan and securities income utilizing a marginal federal tax rate of 34%. As such, amounts will not agree to income as reported in the consolidated financial statements. Average balances for loans are net of the allowance for loan losses, but include non-accrual loans. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented and are expressed in annualized rates.

	(Dollars in thousands)
	Three Months Ended September 30,
	2015							2014
	Average Balance		Interest and Dividends		Yield/ Cost (1)			Average Balance		Interest and Dividends		Yield/ Cost (1)
Assets:
Interest-Earning Assets:
Loans	$	661,977	$	7,418		4.45	%	$	387,424	$	4,098		4.20	%
Investment Securities
Taxable		55,136		237		1.72			63,061		187		1.19
Exempt From Federal Tax		42,795		414		3.87			45,945		473		4.12
Other Interest-Earning Assets		11,744		41		1.39			17,490		31		0.70
Total Interest-Earning Assets		771,652		8,110		4.17			513,920		4,789		3.70
Noninterest-Earning Assets		55,394							31,607
Total Assets	$	827,046						$	545,527
Liabilities and Stockholders' equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits	$	103,917		41		0.16	%	$	70,370		33		0.19	%
Savings		123,727		57		0.18			91,662		43		0.19
Money Market		146,702		87		0.24			102,694		70		0.27
Time Deposits		153,698		392		1.01			83,303		242		1.15
Total Interest-Bearing Deposits		528,044		577		0.43			348,029		388		0.44
Borrowings		44,647		82		0.73			19,855		39		0.78
Total Interest-Bearing Liabilities		572,691		659		0.46			367,884		427		0.46
Noninterest-Bearing Demand Deposits		163,182							129,550
Other Liabilities		5,415							3,174
Total Liabilities		741,288							500,608
Stockholders' Equity		85,758							44,919
Total Liabilities and
Stockholders' Equity	$	827,046						$	545,527
Net Interest Income			$	7,451						$	4,362
Net Interest Rate Spread (2)						3.71	%						3.24	%
Net Interest-Earning Assets (3)	$	198,961						$	146,036
Net Interest Margin (4)						3.83							3.37
Return on Average Assets						1.02							0.54
Return on Average Equity						9.84							6.53
Average Equity to Average Assets						10.37							8.23
Average Interest-Earning Assets to Average Interest-Bearing Liabilities						134.74							139.70

(1) Annualized.

(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets.

28

 

Rate/Volume Analysis. The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. Tax-equivalent yield adjustments have been made for tax exempt loan and securities income utilizing a marginal federal tax rate of 34%. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. The total column represents the sum of the prior columns.

	(Dollars in thousands) Three Months Ended September 30, 2015 Compared To Three Months Ended September 30, 2014
	Increase (Decrease) Due to
	Volume			Rate			Total
Interest and Dividend Income:
Loans, net	$	3,063		$	257		$	3,320
Investment Securities:
Taxable		(25	)		75			50
Exempt From Federal Tax		(31	)		(28	)		(59	)
Other Interest-Earning Assets		(13	)		23			10
Total Interest-Earning Assets		2,994			327			3,321
Interest Expense:
Deposits		198			(9	)		189
Borrowings		46			(3	)		43
Total Interest-Bearing Liablities		244			(12	)		232
Change in Net Interest Income	$	2,750		$	339		$	3,089

Provision for Loan Losses. The provision for loan losses was $300,000 for the three months ended September 30, 2015 and was all applied to the originated loan portfolio. There was no provision for loan losses for the three months ended September 30, 2014. Net charge-offs for the three months ended September 30, 2015 were $98,000 compared to $3,000 for the three months ended September 30, 2014. Management analyzes the loan portfolio on a quarterly basis to determine the adequacy of the allowance for loan losses and the need for additional provisions for loan losses and determined the current quarter provision was necessary due to quarterly charge-offs, commercial and indirect auto loan growth and an increase in substandard loans.

Noninterest Income. Noninterest income increased $1.1 million to $1.9 million for the three months ended September 30, 2015 compared to $855,000 for the three months ended September 30, 2014 primarily due to a $769,000 increase in insurance commission from the acquisition of Exchange Underwriters as part of the merger. Net gains on the sales of loans increased $131,000 primarily due an increase in the number of loans originated and subsequently sold to the FHLB as part of the Mortgage Partnership Finance® (“MPF®”) program. The MPF® program enables member financial institutions to offer competitive interest rates for fixed-rate mortgage loans without assuming any of the interest rate risk associated with a long-term asset. Income from bank owned life insurance increased $61,000 due to the acquisition of policies in the merger. Service fees on deposit accounts increased $57,000 primarily due to check card fees from deposit accounts acquired in the merger. Other miscellaneous income increased $25,000 primarily due to a decline in amortization on mortgage servicing rights related to loans sold to the FHLB as part of the MPF® program.

29

 

Noninterest Expense. Noninterest expense increased $1.8 million, or 45.3%, to $5.9 million for the three months ended September 30, 2015 compared to $4.0 million for the three months ended September 30, 2014. Salaries and employee benefits increased $1.2 million primarily due to employees retained as a result of the merger as well as normal salary increases. Occupancy and equipment increased $145,000 and $136,000, respectively, primarily due to the acquisition of branches in the merger and increased costs associated with the prior year upgrade of the data processing system to accommodate additional account activity. Advertising increased $145,000 related to a cooperative marketing agreement at Exchange Underwriters and advertising initiatives to promote the merger. Amortization of core deposit intangible increased $134,000 due to amortization of the core deposit intangible from the merger. Legal and professional fees increased $86,000 due to legal fees that were reclassified to other real estate owned expense in the prior period and a cybersecurity audit conducted in the current period. PA shares tax, which is calculated based on the Bank’s stockholders’ equity, increased $78,000 due to an increase in stockholders’ equity from of the merger. Contracted services increased $67,000 primarily due to increases in data processing expenses and fees associated with becoming a publicly traded company. Bankcard processing expense increased $27,000 due to the increase in the number of accounts from the merger. Other noninterest expense increased $304,000 primarily due to an increase in various miscellaneous expenses due to the merger, such as telephone, supplies, postage, director fees, and business travel. Merger expenses decreased $368,000 due to merger-related expenses incurred in the prior period only. Other real estate owned expense decreased $190,000 due to a writedown and related legal expenses associated with a commercial property in the prior period.

Income Tax Expense. Income taxes increased $636,000 to $904,000 for the three months ended September 30, 2015 compared to $268,000 for the three months ended September 30, 2014. The effective tax rate for the three months ended September 30, 2015 was 29.8% compared to 26.6% for the three months ended September 30, 2014. The increase in income taxes and effective tax rate was due to an increase of $2.0 million in net income before income tax expense and a decrease in tax-exempt income.

Results of Operations for the Nine Months Ended September 30, 2015 and 2014

Overview. Net income increased $4.1 million, to $6.7 million, for the nine months ended September 30, 2015 compared to $2.6 million for the nine months ended September 30, 2014. The increase is primarily due to income generated in the current period from the merger in the fourth quarter of 2014 as well by $1.0 of merger-related expenses incurred in the prior period only.

Net Interest Income. Net interest income increased $9.5 million, or 76.4%, to $22.0 million for the nine months ended September 30, 2015 compared to $12.5 million for the nine months ended September 30, 2014.

Interest and dividend income increased $10.2 million, or 74.1%, to $24.1 million for the nine months ended September 30, 2015 compared to $13.8 million for the nine months ended September 30, 2014. Interest income on loans increased $10.2 million due to an increase in average loans outstanding of $291.3 million primarily due to the merger. Other interest and dividend income increased $164,000 primarily due to an increase in FHLB stock dividends which included the payment of a special dividend in the first quarter of 2015 of $56,000. As a result of an increase in borrowings compared to the prior period, the Bank was required to hold additional FHLB stock. Despite a decrease of $12.2 million in the average balance, interest income on taxable securities increased $71,000 due to an increase of 43 basis points in yield from new purchases or from higher yields on the remaining securities in the portfolio. Interest income on securities exempt from federal tax decreased $173,000 due to deploying proceeds from security calls and maturities into loans and for merger-related funding purposes in the prior period. There was a decrease of $6.2 million in the average balance on securities exempt from federal tax and a decrease of 20 basis points in yield as a result of purchasing securities with lower prevailing yields.

Interest expense increased $709,000, or 52.9%, to $2.0 million for the nine months ended September 30, 2015 compared to $1.3 million for the nine months ended September 30, 2014. Interest expense on deposits increased $547,000 due to an increase in average interest-bearing deposits of $179.9 million primarily due to the merger. Despite the increase in average balances, the average cost of interest-bearing deposits decreased 2 basis points, primarily related to the repricing of maturing certificates of deposit to lower rates. Interest expense on other borrowed funds and short-term borrowings increased $132,000 and $30,000, respectively, primarily due to an increase in average borrowings of $34.4 million.

30

 

Average Balances and Yields. The following table presents information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. Average balances are derived from daily balances over the periods indicated. The yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or interest expense. Tax-equivalent yield adjustments have been made for tax exempt loan and securities income utilizing a marginal federal tax rate of 34%. Average balances for loans are net of the allowance for loan losses, but include non-accrual loans. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented and are expressed in annualized rates.

	(Dollars in thousands)
	Nine Months Ended September 30,
	2015							2014
(Dollars in thousands)	Average Balance		Interest and Dividends		Yield/Cost (1)			Average Balance		Interest and Dividends		Yield/Cost (1)
Assets:
Interest-Earning Assets:
Loans	$	672,656	$	22,335		4.44	%	$	381,344	$	12,119		4.25	%
Investment Securities
Taxable		57,025		704		1.65			69,223		633		1.22
Exempt From Federal Tax		42,217		1,264		3.99			48,414		1,521		4.19
Other Interest-Earning Assets		13,216		252		2.55			15,770		95		0.81
Total Interest-Earning Assets		785,114		24,555		4.18			514,751		14,368		3.73
Noninterest-Earning Assets		55,774							29,835
Total Assets	$	840,888						$	544,586
Liabilities and Stockholders' equity:
Interest-Bearing Liabilities:
Interest-Bearing Demand Deposits	$	101,673		121		0.16	%	$	72,332		105		0.19	%
Savings		122,995		166		0.18			89,565		124		0.19
Money Market		154,441		268		0.23			105,738		216		0.27
Time Deposits		152,867		1,214		1.06			84,449		777		1.23
Total Interest-Bearing Deposits		531,976		1,769		0.44			352,084		1,222		0.46
Borrowings		53,789		280		0.70			19,368		118		0.81
Total Interest-Bearing Liabilities		585,765		2,049		0.47			371,452		1,340		0.48
Noninterest-Bearing Demand Deposits		164,663							125,745
Other Liabilities		5,972							3,139
Total Liabilities		756,400							500,336
Stockholders' Equity		84,488							44,250
Total Liabilities and Stockholders' Equity	$	840,888						$	544,586
Net interest income			$	22,506						$	13,028
Net Interest Rate Spread (2)						3.71	%						3.25	%
Net Interest-Earning Assets (3)	$	199,349						$	143,299
Net Interest Margin (4)						3.83							3.38
Return on Average Assets						1.06							0.63
Return on Average Equity						10.54							7.73
Average Equity to Average Assets						10.05							8.13
Average Interest-Earning Assets to Average Interest-Bearing Liabilities						134.03							138.58

(1) Annualized.

(2) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(3) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4) Net interest margin represents net interest income divided by average total interest-earning assets. Interest income and yields are on a fully tax equivalent basis utilizing a marginal tax rate of 34%.

31

 

Rate/Volume Analysis. The following table presents the effects of changing rates and volumes on our net interest income for the periods indicated. The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately based on the changes due to rate and the changes due to volume. The total column represents the sum of the prior columns.

	(Dollars in thousands)
	Nine Months Ended September 30, 2015 Compared To Nine Months Ended September 30, 2014
	Increase (Decrease) Due to
(Dollars in thousands)	Volume			Rate			Total
Interest and Dividend Income:
Loans, net	$	9,651		$	565		$	10,216
Investment Securities:
Taxable		(126	)		197			71
Exempt From Federal Tax		(186	)		(71	)		(257	)
Other Interest-Earning Assets		(17	)		174			157
Total Interest-Earning Assets		9,322			865			10,187
Interest Expense:
Deposits		602			(55	)		547
Borrowings		180			(18	)		162
Total Interest-Bearing Liablities		782			(73	)		709
Change in Net Interest Income	$	8,540		$	938		$	9,478

Provision for Loan Losses. The provision for loan losses was $975,000 for the nine months ended September 30, 2015. There was no provision for loan losses in the nine months ended September 30, 2014. Net charge-offs for the nine months ended September 30, 2015 were $282,000 compared to net charge-offs of $45,000 for the nine months ended September 30, 2014. Management analyzes the loan portfolio on a quarterly basis to determine the adequacy of the allowance for loan losses and the need for additional provisions for loan losses and determined the current provision was necessary due to current period charge-offs, commercial and indirect auto loan growth, and an increase in substandard loans.

Noninterest Income. Noninterest income increased $3.2 million to $5.5 million for the nine months ended September 30, 2015 compared to $2.4 million for the nine months ended September 30, 2014 primarily due to a $2.6 million increase in insurance commission from the acquisition of Exchange Underwriters as part of the merger. Included in insurance commissions are $340,000 of contingency fees, which are commissions that are contingent upon several factors including, but not limited to, eligible written premiums, earned premiums, incurred losses and stop loss charges. Service fees on deposit accounts increased $296,000 primarily due to check card fees from deposit accounts acquired in the merger. In addition, income from bank owned life insurance increased $180,000 due to the acquisition of policies in the merger. Net gains on sale of loans decreased $24,000 primarily due to losses on the sales of $38.2 million of residential loans that were acquired in the merger. Other miscellaneous income increased $47,000 primarily due to a decline in amortization on mortgage servicing rights related to loans sold to the FHLB as part of the MPF® program.

Noninterest Expense. Noninterest expense increased $5.6 million, or 48.6%, to $17.1 million for the nine months ended September 30, 2015 compared to $11.5 million for the nine months ended September 30, 2014. Salaries and employee benefits increased $3.8 million primarily due to employees retained as a result of the merger as well as normal salary increases. Occupancy and equipment increased $452,000 and $413,000, respectively, primarily due to the acquisition of branches in the merger and increased costs associated with the prior year upgrade of the data processing system to accommodate additional account activity. Advertising increased $411,000 related to a cooperative marketing agreement at Exchange Underwriters and advertising initiatives to promote the merger. Amortization of core deposit intangible increased $401,000 due to amortization of the core deposit intangible from the merger. PA shares tax, which is calculated based on the Bank’s stockholders’ equity, increased $242,000 due to an increase in stockholders’ equity from the merger. Contracted services increased $164,000 primarily due to increases in data processing expenses and fees associated with becoming a publicly traded company. Bankcard processing expense increased $126,000 due to the increase in the number of accounts from the merger. The FDIC assessment increased $85,000 due to the increase in deposits from the merger. Other noninterest expense increased $880,000 primarily due to an increase in various miscellaneous expenses due to the merger, such as telephone, supplies, postage, director fees, and business travel. Merger expenses decreased $1.0 million due to merger-related expenses incurred in the prior period only. Other real estate owned income was $210,000 in the current period compared to expense of $204,000 in the prior period resulting in a decrease of $414,000 in expense due to gains recognized on the sale of properties in the current period and a writedown and related legal expenses associated with a commercial property in the prior period.

32

 

Income Tax Expense. Income taxes increased $2.0 million to $2.8 million for the nine months ended September 30, 2015 compared to $734,000 for the nine months ended September 30, 2014. The effective tax rate for the nine months ended September 30, 2015 was 29.4% compared to 22.3% for the nine months ended September 30, 2014. The increase in income taxes and effective tax rate was due to an increase of $6.1 million in net income before income tax expense and a decrease in tax-exempt income.

Off-Balance Sheet Arrangements.

Other than loan commitments, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a significant current or future effect on our financial condition, revenues, expenses, results of operations, liquidity, capital expenditures, or capital resources that are material to investors. Refer to Note 8 in the Notes to Consolidated Financial Statements for a summary of commitments outstanding as of September 30, 2015.

Liquidity and Capital Management

Liquidity. Liquidity is the ability to meet current and future financial obligations of a short-term nature. The Company’s primary sources of funds consist of deposit inflows, loan repayments and maturities, calls and sales of securities. While maturities and scheduled amortization of loans and securities are predictable sources of funds, deposit flows and mortgage prepayments are greatly influenced by general interest rates, economic conditions and competition.

The Company regularly adjusts its investments in liquid assets based upon its assessment of expected loan demand, expected deposit flows, yields available on interest-earning deposits and securities, and the objectives of its asset/liability management program. Excess liquid assets are invested generally in interest-earning deposits with other banks and short- and intermediate-term securities. The Company believes that it had sufficient liquidity at September 30, 2015 to satisfy its short- and long-term liquidity needs at that date.

The Company’s most liquid assets are cash and due from banks, which totaled $15.5 million at September 30, 2015. The levels of these assets depend on our operating, financing, lending and investing activities during any given period. Unpledged securities, which provide an additional source of liquidity, totaled $18.1 million. In addition, at September 30, 2015, the Company had the ability to borrow up to $297.1 million from the FHLB of Pittsburgh, of which $15.0 million was outstanding and $19.5 million was utilized toward a standby letter of credit. The Company also has the ability to borrow up to $40.0 million from the Federal Reserve Bank through its Borrower-In-Custody line of credit agreement and $40.0 million from multiple line of credit arrangements with various banks, none of which were outstanding.

At September 30, 2015, time deposits due within one year of that date totaled $62.9 million, or 42.4% of total time deposits. If these time deposits do not remain with the Company, the Company will be required to seek other sources of funds. Depending on market conditions, the Company may be required to pay higher rates on such deposits or other borrowings than it currently pays on these certificates of deposit. The Company believes, however, based on past experience, that a significant portion of its certificates of deposit will remain with it, either as certificates of deposit or as other deposit products. The Company has the ability to attract and retain deposits by adjusting the interest rates offered.

CB Financial is a separate legal entity from the Bank and must provide for its own liquidity to pay any dividends to its shareholders and for other corporate purposes. Its primary source of liquidity is dividend payments it receives from the Bank. The Bank’s ability to pay dividends to CB Financial is subject to regulatory limitations. At September 30, 2015, CB Financial (on an unconsolidated, stand-alone basis) had liquid assets of $776,000.

We are committed to maintaining a strong liquidity position; therefore, we monitor our liquidity position on a daily basis. We anticipate that we will have sufficient funds to meet our current funding commitments. The marginal cost of new funding, however, whether from deposits or borrowings from the Federal Home Loan Bank, will be carefully considered as we monitor our liquidity needs. Therefore, in order to minimize our cost of funds, we may consider additional borrowings from the Federal Home Loan Bank in the future.

Capital Management. The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, each must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

33

 

At September 30, 2015 and December 31, 2014, the Company was categorized as well capitalized under the regulatory framework for prompt corrective action. The following table presents the Bank’s regulatory capital amounts and ratios, as well as the minimum amounts and ratios required to be well capitalized as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015					December 31, 2014
	Amount		Ratio			Amount		Ratio
Common Equity Tier 1 (to risk weighted assets)
Actual	$	77,084		12.91	%		N/A		N/A
For Capital Adequacy Purposes		26,873		4.50			N/A		N/A
To Be Well Capitalized		38,816		6.50			N/A		N/A
Tier 1 Capital (to risk weighted assets)
Actual		77,084		12.91		$	69,340		11.63	%
For Capital Adequacy Purposes		35,830		6.00			23,840		4.00
To Be Well Capitalized		47,774		8.00			35,760		6.00
Total Capital (to risk weighted assets)
Actual		82,972		13.89			74,484		12.50
For Capital Adequacy Purposes		47,774		8.00			47,680		8.00
To Be Well Capitalized		59,717		10.00			59,600		10.00
Tier 1 Leverage (to adjusted total assets)
Actual		77,084		9.41			69,340		9.33
For Capital Adequacy Purposes		32,754		4.00			29,719		4.00
To Be Well Capitalized		40,942		5.00			37,149		5.00

Item 3. Quantitative and Qualitative Disclosure about Market Risk.

The Company believes that as of September 30, 2015, there was no material change in the quantitative and qualitative disclosure about market risk data as of December 31, 2014, as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Item 4. Controls and Procedures.

CB Financial’s management, including CB Financial’s principal executive officer and principal financial officer, have evaluated the effectiveness of CB Financial’s “disclosure controls and procedures” as such term is defined in Rule 13a-15(c) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon their evaluation, the principal executive officer and principal financial officer concluded that, as of the end of the period covered by the report, CB Financial’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that CB Financial files or submits under the Exchange Act with the Securities and Exchange Commission (the “SEC”) (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to CB Financial’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosures.

There have been no changes in CB Financial’s internal control over financial reporting during the quarter ended September 30, 2015, that has materially affected, or is reasonably likely to materially affect, CB Financial’s internal control over financial reporting.

34

 

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

On April 21, 2014, a class action complaint, captioned Sutton v. FedFirst Financial Corp., et al., was filed under Case No. 24C14002331, in the Circuit Court in Baltimore City, Maryland (the “Court”), against FedFirst Financial Corp., each of FedFirst Financial’s directors, and CB Financial. The complaint alleged, among other things, that the FedFirst Financial directors breached their fiduciary duties to FedFirst Financial and its stockholders by agreeing to sell to CB Financial without first taking steps to ensure that FedFirst Financial stockholders would obtain adequate, fair and maximum consideration under the circumstances, by agreeing to terms with CB Financial that benefit themselves and/or CB Financial without regard for the FedFirst Financial stockholders and by agreeing to terms with CB Financial that discourages other bidders. The plaintiff also alleged that CB Financial aided and abetted the FedFirst Financial directors’ breaches of fiduciary duties. The complaint sought, among other things, an order declaring the Merger Agreement unenforceable and rescinding and invalidating the Merger Agreement, an order enjoining the defendants from consummating the merger, as well as attorneys’ and experts’ fees and certain other damages. On June 20, 2014, FedFirst Financial and the individual defendants filed a Motion to Dismiss the complaint. On July 29, 2014, the plaintiff filed an amended complaint adding an additional claim that the Form S-4 filed by CB Financial in connection with the merger contained material misstatements and omissions. On September 22, 2014, the Court dismissed all claims as to all defendants with prejudice, including claims against FedFirst Financial and its directors as well as claims against CB Financial. The plaintiff appealed the dismissal of the complaint. On October 29, 2015, the Maryland Court of Special Appeals affirmed the dismissal of the case. The plaintiff has the ability to file a petition for certiorari to the highest court in the state, the Maryland Court of Appeals, who would then decide whether to hear the appeal. CB Financial continues to believe that the factual allegations in the complaint, as amended, are without merit.

Periodically, there have been various claims and lawsuits against us, such as claims to enforce liens, claims seeking damages for improper collection procedures or misrepresentations, condemnation proceedings on properties in which we hold security interests, claims involving the making and servicing of real property loans and other issues incident to our business. We are not a party to any other pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows.

Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Not applicable.

Item 3. Defaults Upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits

31.1	Rule 13a-14(a) / 15d-14(a) Certification (President and Chief Executive Officer)
31.2	Rule 13a-14(a) / 15d-14(a) Certification (Chief Financial Officer)
32.1	Chief Executive Officer Certification pursuant to 18 U.S.C. Section 1350, as adopted to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Chief Financial Officer Certification pursuant to 18 U.S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.0	The following materials for the quarter ended September 30, 2015, formatted in XBRL (Extensible Business Reporting Language); (i) the Consolidated Statement of Financial Condition, (ii) the Consolidated Statement of Operations, (iii) the Consolidated Statement of Comprehensive Income, (iv) the Consolidated Statement of Stockholders’ Equity, (v) the Consolidated Statement of Cash Flows and (vi) the Notes to the Unaudited Consolidated Financial Statements

35

 

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CB FINANCIAL SERVICES, INC.
	(Registrant)
Date:     November 9, 2015	/s/ Barron P. McCune, Jr.
	Barron P. McCune, Jr.
	President and Chief Executive Officer
Date:     November 9, 2015	/s/ Kevin D. Lemley
	Kevin D. Lemley
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer and Chief Accounting Officer)

36

EX-31.1

EXHIBIT 31.1

RULE 13a-14(a)/15d-14(a)

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Barron P. McCune, Jr., President, Chief Executive Officer and Director of CB Financial Services, Inc., certify that:

1.   I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 of CB Financial Services, Inc.;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:       November 9, 2015	/s/ Barron P. McCune, Jr.
	Barron P. McCune, Jr.
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

RULE 13a-14(a)/15d-14(a)

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Kevin D. Lemley, Executive Vice President and Chief Financial Officer of CB Financial Services, Inc., certify that:

1.   I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 of CB Financial Services, Inc;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:       November 9, 2015	/s/ Kevin D. Lemley
	Kevin D. Lemley
	Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of CB Financial Services, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, Barron P. McCune, Jr., the President, Chief Executive Officer and Director of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)   The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:       November 9, 2015	/s/ Barron P. McCune, Jr.
	Barron P. McCune, Jr.
	President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of CB Financial Services, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission (the “Report”), I, Kevin D. Lemley, the Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)   The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company

Date:       November 9, 2015	/s/ Kevin D. Lemley
	Kevin D. Lemley
	Executive Vice President and Chief Financial Officer

XML

Note 4 - Loans and Related Allowance for Loan Loss (Details) - Delinquencies in the Loan Portfolio - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Real Estate:
Loans current	$ 658,715	$ 677,711
Total past due	2,667	4,979
Non-accrual	5,731	2,956
Total loans	667,113	685,646
Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	1,072	4,542
Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	1,443	58
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due	152	379
Originated Loans [Member]
Real Estate:
Loans current	454,372	405,028
Total past due	1,192	3,065
Non-accrual	3,224	1,238
Total loans	458,788	409,331
Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	848	3,015
Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	344	40
Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due		10
Acquired Loans [Member]
Real Estate:
Loans current	204,343	272,683
Total past due	1,475	1,914
Non-accrual	2,507	1,718
Total loans	208,325	276,315
Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	224	1,527
Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	1,099	18
Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due	152	369
Residential Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans current	270,128	319,721
Total past due	857	2,016
Non-accrual	2,455	1,543
Total loans	273,440	323,280
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	121	1,613
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	682	34
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due	54	369
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans current	163,613	161,145
Total past due	381	265
Non-accrual	368	309
Total loans	164,362	161,719
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	107	249
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	274	16
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans current	106,515	158,576
Total past due	476	1,751
Non-accrual	2,087	1,234
Total loans	109,078	161,561
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	14	1,364
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	408	18
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due	54	369
Commercial Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans current	197,884	179,268
Total past due	1,224	2,525
Non-accrual	2,974	1,065
Total loans	202,082	182,858
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	553	2,525
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	671
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans current	121,889	102,016
Total past due	343	2,397
Non-accrual	2,554	581
Total loans	124,786	104,994
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	343	2,397
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans current	75,995	77,252
Total past due	881	128
Non-accrual	420	484
Total loans	77,296	77,864
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	210	128
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	671
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member]
Real Estate:
Loans current	69,376	76,590
Total past due	92	7
Non-accrual		4
Total loans	69,468	76,601
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	34	7
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	15
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due	43
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member]
Real Estate:
Loans current	52,691	53,234
Total past due	34
Non-accrual		4
Total loans	52,725	53,238
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	34
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans current	16,685	23,356
Total past due	58	7
Total loans	16,743	23,363
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due		7
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	15
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due	43
Construction Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans current	18,521	21,853
Non-accrual	262	344
Total loans	18,783	22,197
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans current	13,938	9,695
Non-accrual	262	344
Total loans	14,200	10,039
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans current	4,583	12,158
Total loans	4,583	12,158
Consumer Portfolio Segment [Member]
Real Estate:
Loans current	98,135	77,180
Total past due	494	431
Non-accrual	40
Total loans	98,669	77,611
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	364	397
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	75	24
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due	55	10
Consumer Portfolio Segment [Member] | Originated Loans [Member]
Real Estate:
Loans current	97,570	75,839
Total past due	434	403
Non-accrual	40
Total loans	98,044	76,242
Consumer Portfolio Segment [Member] | Originated Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due	364	369
Consumer Portfolio Segment [Member] | Originated Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	70	24
Consumer Portfolio Segment [Member] | Originated Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due		10
Consumer Portfolio Segment [Member] | Acquired Loans [Member]
Real Estate:
Loans current	565	1,341
Total past due	60	28
Total loans	625	1,369
Consumer Portfolio Segment [Member] | Acquired Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Real Estate:
Total past due		28
Consumer Portfolio Segment [Member] | Acquired Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Real Estate:
Total past due	5
Consumer Portfolio Segment [Member] | Acquired Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Real Estate:
Total past due	55
Unallocated Financing Receivables [Member]
Real Estate:
Loans current	4,671	3,099
Total loans	4,671	3,099
Unallocated Financing Receivables [Member] | Originated Loans [Member]
Real Estate:
Loans current	4,671	3,099
Total loans	4,671	3,099
Unallocated Financing Receivables [Member] | Acquired Loans [Member]
Real Estate:
Total loans	$ 0	$ 0

XML

Note 9 - Fair Value Disclosure (Details) - Significant Unobservable Inputs Used in the Fair Value Measurements - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired Loans (in Dollars)		$ 14,020	$ 9,391
Minimum [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired Loans	[1]	10.00%
OREO	[1]	10.00%
Minimum [Member] | Market Approach Valuation Technique [Member] | OREO [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired Loans	[1]	10.00%
OREO	[1]	10.00%
Maximum [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired Loans	[1]	30.00%
OREO	[1]	30.00%
Maximum [Member] | Market Approach Valuation Technique [Member] | OREO [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired Loans	[1]	50.00%
OREO	[1]	50.00%
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impaired Loans (in Dollars)		$ 1,105	1,959
Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique [Member] | OREO [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
OREO (in Dollars)		$ 431	$ 77

[1] Range includes discounts taken since appraisal and estimated values.

XML

Note 6 - Short-term Borrowings (Details) - Federal Funds Purchased and Short-term Borrowings - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Note 6 - Short-term Borrowings (Details) - Federal Funds Purchased and Short-term Borrowings [Line Items]
Balance at Year-End	$ 27,908	$ 46,684
Other Short-term Debt [Member]
Note 6 - Short-term Borrowings (Details) - Federal Funds Purchased and Short-term Borrowings [Line Items]
Balance at Year-End		$ 25,800
Balance at Year-End, Weighted Average Rate		0.32%
Average Balance Outstanding During the Year	$ 7,531	$ 4,283
Average Balance Outstanding During the Year, Weighted Average Rate	0.36%	0.31%
Maximum Amount Outstanding at any Month End	$ 30,950	$ 25,800
Federal Funds Purchased [Member]
Note 6 - Short-term Borrowings (Details) - Federal Funds Purchased and Short-term Borrowings [Line Items]
Average Balance Outstanding During the Year	$ 341	$ 375
Average Balance Outstanding During the Year, Weighted Average Rate	0.39%	0.46%
Maximum Amount Outstanding at any Month End	$ 100	$ 1,850
Securities Sold under Agreements to Repurchase [Member]
Note 6 - Short-term Borrowings (Details) - Federal Funds Purchased and Short-term Borrowings [Line Items]
Balance at Year-End	$ 27,908	$ 20,884
Balance at Year-End, Weighted Average Rate	0.18%	0.17%
Average Balance Outstanding During the Year	$ 22,956	$ 17,525
Average Balance Outstanding During the Year, Weighted Average Rate	0.24%	0.26%
Maximum Amount Outstanding at any Month End	$ 27,908	$ 25,893
Securities Collaterizing the Agreements at Period-End:
Carrying Value	33,034	23,244
Market Value	$ 33,289	$ 23,243

XML

Note 9 - Fair Value Disclosure (Details) - Estimated Fair Values of the Company’s Financial Instruments - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Cash and Due From Banks:
Interest Bearing	$ 4,577	$ 5,933
Non-Interest Bearing	10,887	5,818
Investment Securities:
Available for Sale	101,515	105,449
Held-to-Maturity		504
Bank-Owned Life Insurance	18,089	17,735
Financial Liabilities:
Deposits	689,946	697,494
Short-term Borrowings	27,908	46,684
Other Borrowed Funds	15,000	15,136
Fair Value, Inputs, Level 1 [Member]
Cash and Due From Banks:
Interest Bearing	4,577	5,933
Interest Bearing	4,577	5,933
Non-Interest Bearing	10,887	5,818
Non-Interest Bearing	10,887	5,818
Fair Value, Inputs, Level 2 [Member]
Investment Securities:
Held-to-Maturity		504
Held-to-Maturity		504
Restricted Stock	2,651	3,390
Restricted Stock	2,651	3,390
Bank-Owned Life Insurance	18,089	17,735
Bank-Owned Life Insurance	18,089	17,735
Accrued Interest Receivable	2,267	2,535
Accrued Interest Receivable	2,267	2,535
Financial Liabilities:
Deposits	689,946	697,494
Deposits	690,455	698,418
Short-term Borrowings	27,908	46,684
Short-term Borrowings	27,908	46,684
Accrued Interest Payable	312	348
Accrued Interest Payable	312	348
Fair Value, Inputs, Level 3 [Member]
Investment Securities:
Loans, Net	661,225	680,451
Loans, Net	679,177	695,844
Financial Liabilities:
Other Borrowed Funds	15,000	15,136
Other Borrowed Funds	$ 15,061	$ 15,305

XML

Note 5 - Deposits (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Disclosure Text Block [Abstract]
Time Deposits, $250,000 or More	$ 33.1	$ 26.9

XML

Note 3 - Investment Securities (Details) - Amortized Cost and Fair Value of Investment Securities Held-to-maturity $ in Thousands	Dec. 31, 2014 USD ($)
Schedule of Held-to-maturity Securities [Line Items]
Obligations of States and Political Subdivisions	$ 504
US States and Political Subdivisions Debt Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Obligations of States and Political Subdivisions	504
Obligations of States and Political Subdivisions	$ 504

XML

Note 6 - Short-term Borrowings (Tables)

9 Months Ended

Sep. 30, 2015

Disclosure Text Block [Abstract]

Schedule of Debt [Table Text Block]

	(Dollars in thousands)
	September 30, 2015					December 31, 2014
	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Short-term Borrowings
Federal Funds Purchased:
Average Balance Outstanding During the Period	$	341		0.39	%	$	375		0.46	%
Maximum Amount Outstanding at any Month End		100					1,850
FHLB Borrowings:
Balance at Period End		-		-			25,800		0.32
Average Balance Outstanding During the Period		7,531		0.36			4,283		0.31
Maximum Amount Outstanding at any Month End		30,950					25,800
Securities Sold Under Agreements to Repurchase:
Balance at Period End		27,908		0.18			20,884		0.17
Average Balance Outstanding During the Period		22,956		0.24			17,525		0.26
Maximum Amount Outstanding at any Month End		27,908					25,893
Securities Collaterizing the Agreements at Period-End:
Carrying Value		33,034					23,244
Market Value		33,289					23,243

XML

Note 7 - Other Borrowed Funds (Details) - Federal Home Loan Bank Advances - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Federal Home Loan Bank Advances [Abstract]
Due in One Year		$ 15,136
Due in One Year		3.78%
Due After One Year to Two Years	$ 3,500
Due After One Year to Two Years	0.94%
Due After Two Years to Three Years	$ 3,500
Due After Two Years to Three Years	1.35%
Due After Three Years to Four Years	$ 3,000
Due After Three Years to Four Years	1.68%
Due After Four Years to Five Years	$ 3,000
Due After Four Years to Five Years	1.88%
Due After Five Years	$ 2,000
Due After Five Years	2.12%
Total	$ 15,000	$ 15,136
Total	1.53%	3.78%

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Note 4 - Loans and Related Allowance for Loan Loss (Details) - Impaired Loans - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Real Estate:
Recorded investment - with no related allowance	$ 12,375,000	$ 6,559,000
Unpaid principal balance - with no related allowance	12,446,000	6,637,000
Average recorded investment - with no related allowance	12,822,000	7,664,000
Interest income recognized - with no related allowance	388,000	310,000
Real Estate:
Related allowance - with related allowance	540,000	873,000
Unpaid principal balance - with related allowance	1,600,000	2,800,000
Real Estate:
Recorded investment	14,020,000	9,391,000
Related allowance	540,000	873,000
Unpaid principal balance	14,110,000	9,476,000
Average recorded investment	14,517,000	10,776,000
Interest income recognized	421,000	419,000
Originated Loans [Member]
Real Estate:
Recorded investment - with no related allowance	7,920,000	3,766,000
Unpaid principal balance - with no related allowance	7,932,000	3,805,000
Average recorded investment - with no related allowance	8,110,000	4,781,000
Interest income recognized - with no related allowance	217,000	166,000
Real Estate:
Recorded investment - with related allowance	1,645,000	2,832,000
Related allowance - with related allowance	540,000	873,000
Unpaid principal balance - with related allowance	1,664,000	2,839,000
Average recorded investment - with related allowance	1,695,000	3,112,000
Interest income recognized - with related allowance	33,000	109,000
Real Estate:
Recorded investment	9,565,000	6,598,000
Related allowance	540,000	873,000
Unpaid principal balance	9,596,000	6,644,000
Average recorded investment	9,805,000	7,893,000
Interest income recognized	250,000	275,000
Acquired Loans [Member]
Real Estate:
Recorded investment - with no related allowance	4,455,000	2,793,000
Unpaid principal balance - with no related allowance	4,514,000	2,832,000
Average recorded investment - with no related allowance	4,712,000	2,883,000
Interest income recognized - with no related allowance	171,000	144,000
Real Estate:
Recorded investment	4,455,000	2,793,000
Unpaid principal balance	4,514,000	2,832,000
Average recorded investment	4,712,000	2,883,000
Interest income recognized	171,000	144,000
Residential Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Recorded investment - with no related allowance	1,312,000	992,000
Unpaid principal balance - with no related allowance	1,324,000	1,017,000
Average recorded investment - with no related allowance	1,336,000	1,012,000
Interest income recognized - with no related allowance	51,000	51,000
Real Estate:
Recorded investment	1,312,000	992,000
Unpaid principal balance	1,324,000	1,017,000
Average recorded investment	1,336,000	1,012,000
Interest income recognized	51,000	51,000
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Recorded investment - with no related allowance	6,000	45,000
Unpaid principal balance - with no related allowance	18,000	70,000
Average recorded investment - with no related allowance	16,000	55,000
Interest income recognized - with no related allowance	1,000
Real Estate:
Recorded investment	6,000	45,000
Unpaid principal balance	18,000	70,000
Average recorded investment	16,000	55,000
Interest income recognized	1,000
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Recorded investment - with no related allowance	1,306,000	947,000
Unpaid principal balance - with no related allowance	1,306,000	947,000
Average recorded investment - with no related allowance	1,320,000	957,000
Interest income recognized - with no related allowance	50,000	51,000
Real Estate:
Recorded investment	1,306,000	947,000
Unpaid principal balance	1,306,000	947,000
Average recorded investment	1,320,000	957,000
Interest income recognized	50,000	51,000
Commercial Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Recorded investment - with no related allowance	9,353,000	5,198,000
Unpaid principal balance - with no related allowance	9,412,000	5,251,000
Average recorded investment - with no related allowance	9,719,000	6,226,000
Interest income recognized - with no related allowance	293,000	242,000
Real Estate:
Related allowance - with related allowance	405,000	519,000
Real Estate:
Recorded investment	10,785,000	6,580,000
Related allowance	405,000	519,000
Unpaid principal balance	10,863,000	6,640,000
Average recorded investment	11,175,000	7,653,000
Interest income recognized	316,000	293,000
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Recorded investment - with no related allowance	6,246,000	3,352,000
Unpaid principal balance - with no related allowance	6,246,000	3,366,000
Average recorded investment - with no related allowance	6,374,000	4,300,000
Interest income recognized - with no related allowance	173,000	149,000
Real Estate:
Recorded investment - with related allowance	1,432,000	1,382,000
Related allowance - with related allowance	405,000	519,000
Unpaid principal balance - with related allowance	1,451,000	1,389,000
Average recorded investment - with related allowance	1,456,000	1,427,000
Interest income recognized - with related allowance	23,000	51,000
Real Estate:
Recorded investment	7,678,000	4,734,000
Related allowance	405,000	519,000
Unpaid principal balance	7,697,000	4,755,000
Average recorded investment	7,830,000	5,727,000
Interest income recognized	196,000	200,000
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Recorded investment - with no related allowance	3,107,000	1,846,000
Unpaid principal balance - with no related allowance	3,166,000	1,885,000
Average recorded investment - with no related allowance	3,345,000	1,926,000
Interest income recognized - with no related allowance	120,000	93,000
Real Estate:
Recorded investment	3,107,000	1,846,000
Unpaid principal balance	3,166,000	1,885,000
Average recorded investment	3,345,000	1,926,000
Interest income recognized	120,000	93,000
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member]
Real Estate:
Recorded investment - with no related allowance	1,448,000	369,000
Unpaid principal balance - with no related allowance	1,448,000	369,000
Average recorded investment - with no related allowance	1,456,000	426,000
Interest income recognized - with no related allowance	44,000	17,000
Real Estate:
Related allowance - with related allowance	135,000	254,000
Real Estate:
Recorded investment	1,661,000	686,000
Related allowance	135,000	254,000
Unpaid principal balance	1,661,000	686,000
Average recorded investment	1,695,000	745,000
Interest income recognized	54,000	34,000
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member]
Real Estate:
Recorded investment - with no related allowance	1,406,000	369,000
Unpaid principal balance - with no related allowance	1,406,000	369,000
Average recorded investment - with no related allowance	1,409,000	426,000
Interest income recognized - with no related allowance	43,000	17,000
Real Estate:
Recorded investment - with related allowance	213,000	317,000
Related allowance - with related allowance	135,000	254,000
Unpaid principal balance - with related allowance	213,000	317,000
Average recorded investment - with related allowance	239,000	319,000
Interest income recognized - with related allowance	10,000	17,000
Real Estate:
Recorded investment	1,619,000	686,000
Related allowance	135,000	254,000
Unpaid principal balance	1,619,000	686,000
Average recorded investment	1,648,000	745,000
Interest income recognized	53,000	34,000
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member]
Real Estate:
Recorded investment - with no related allowance	42,000
Unpaid principal balance - with no related allowance	42,000
Average recorded investment - with no related allowance	47,000
Interest income recognized - with no related allowance	1,000
Real Estate:
Recorded investment	42,000
Unpaid principal balance	42,000
Average recorded investment	47,000
Interest income recognized	1,000
Construction Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Recorded investment - with no related allowance	262,000
Unpaid principal balance - with no related allowance	262,000
Average recorded investment - with no related allowance	311,000
Real Estate:
Related allowance - with related allowance		100,000
Real Estate:
Recorded investment	262,000	1,133,000
Related allowance		100,000
Unpaid principal balance	262,000	1,133,000
Average recorded investment	311,000	1,366,000
Interest income recognized		41,000
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Recorded investment - with no related allowance	262,000
Unpaid principal balance - with no related allowance	262,000
Average recorded investment - with no related allowance	311,000
Real Estate:
Recorded investment - with related allowance		1,133,000
Related allowance - with related allowance		100,000
Unpaid principal balance - with related allowance		1,133,000
Average recorded investment - with related allowance		1,366,000
Interest income recognized - with related allowance		41,000
Real Estate:
Recorded investment	262,000	1,133,000
Related allowance		100,000
Unpaid principal balance	262,000	1,133,000
Average recorded investment	$ 311,000	1,366,000
Interest income recognized		$ 41,000

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Note 4 - Loans and Related Allowance for Loan Loss (Details) - Composition of Loan Portfolio - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Real Estate:
Loans receivable	$ 667,113	$ 685,646
Percentage of total loans	100.00%	100.00%
Allowance for Loan Losses	$ (5,888)	$ (5,195)
Loans, Net	661,225	680,451
Originated Loans [Member]
Real Estate:
Loans receivable	$ 458,788	$ 409,331
Percentage of total loans	100.00%	100.00%
Allowance for Loan Losses	$ (5,888)	$ (5,195)
Loans, Net	452,900	404,136
Acquired Loans [Member]
Real Estate:
Loans receivable	$ 208,325	$ 276,315
Percentage of total loans	100.00%	100.00%
Residential Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans receivable	$ 273,440	$ 323,280
Percentage of total loans	35.80%	39.40%
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	$ 164,362	$ 161,719
Percentage of total loans	35.80%	39.40%
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	$ 109,078	$ 161,561
Percentage of total loans	52.40%	58.40%
Commercial Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans receivable	$ 202,082	$ 182,858
Percentage of total loans	27.20%	25.70%
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	$ 124,786	$ 104,994
Percentage of total loans	27.20%	25.70%
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	$ 77,296	$ 77,864
Percentage of total loans	37.10%	28.20%
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member]
Real Estate:
Loans receivable	$ 69,468	$ 76,601
Percentage of total loans	11.50%	13.00%
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	$ 52,725	$ 53,238
Percentage of total loans	11.50%	13.00%
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	$ 16,743	$ 23,363
Percentage of total loans	8.00%	8.50%
Construction Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans receivable	$ 18,783	$ 22,197
Percentage of total loans	3.10%	2.50%
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	$ 14,200	$ 10,039
Percentage of total loans	3.10%	2.50%
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	$ 4,583	$ 12,158
Percentage of total loans	2.20%	4.40%
Consumer Portfolio Segment [Member]
Real Estate:
Loans receivable	$ 98,669	$ 77,611
Percentage of total loans	21.40%	18.60%
Consumer Portfolio Segment [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	$ 98,044	$ 76,242
Percentage of total loans	21.40%	18.60%
Consumer Portfolio Segment [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	$ 625	$ 1,369
Percentage of total loans	0.30%	0.50%
Unallocated Financing Receivables [Member]
Real Estate:
Loans receivable	$ 4,671	$ 3,099
Percentage of total loans	1.00%	0.80%
Unallocated Financing Receivables [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	$ 4,671	$ 3,099
Percentage of total loans	1.00%	0.80%
Unallocated Financing Receivables [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	$ 0	$ 0

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Note 9 - Fair Value Disclosure (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	$ 1,600,000	$ 2,800,000
Impaired Financing Receivable, Related Allowance	$ 540,000	$ 873,000

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Note 5 - Deposits (Details) - Maturities of Time Deposits - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Maturities of Time Deposits [Abstract]
One Year or Less	$ 62,907
Over One Through Two Years	28,915
Over Two Through Three Years	16,342
Over Three Through Four Years	11,628
Over Four Through Five Years	17,579
Over Five Years	11,008
Total	$ 148,379	$ 151,594

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Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net Income	$ 6,663	$ 2,557
Αdjustmеnts to Rеconcilе Net Income to Net Cash Provided By Operating Activities:
Net Amortization on Investments	523	1,020
Depreciation and Amortization	1,944	422
Provision for Loan Losses	975
Income from Bank-Owned Life Insurance	(354)	(174)
Proceeds From Mortgage Loans Sold	53,476	11,448
Originations of Mortgage Loans for Sale	(15,053)	(11,176)
Gains on Sales of Loans	(248)	(272)
Gains on Sales of Investment Securities		(35)
Gains on Sales of Other Real Estate Owned and Repossessed Assets	(284)
Decrease in Accrued Interest Receivable	268	118
Increase (Decrease) in Taxes Payable	111	(96)
Decrease in Accrued Interest Payable	(36)	(32)
Receipt of Federal Income Tax Refund	1,218
Other, Net	49	(632)
NET CASH PROVIDED BY OPERATING ACTIVITIES	49,252	3,148
Investment Securities Available for Sale:
Proceeds From Principal Repayments and Maturities	32,068	39,513
Purchases of Securities	(28,276)	(9,506)
Investment Securities Held-to-Maturity:
Proceeds From Principal Repayments and Maturities	500	530
Net Increase in Loans	(21,194)	(23,297)
Purchase of Premises and Equipment	(365)	(454)
Retirements of Premises and Equipment		30
Proceeds From Sales of Other Real Estate Owned and Repossessed Assets	15	108
Decrease (Increase) in Restricted Equity Securities	738	(284)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(16,514)	6,640
FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	(7,548)	10,423
Net (Decrease) Increase in Short-Term Borrowings	(18,776)	771
Principal Payments on Other Borrowed Funds	(15,136)	(1,000)
Proceeds from Other Borrowed Funds	15,000
Cash Dividends Paid	(2,565)	(1,478)
Treasury Stock, Purchases at Cost		(2,896)
Exercise of Stock Options		206
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(29,025)	6,026
INCREASE IN CASH AND CASH EQUIVALENTS	3,713	15,814
CASH AND DUE FROM BANKS AT BEGINNING OF YEAR	11,751	16,417
CASH AND DUE FROM BANKS AT END OF PERIOD	15,464	32,231
Cash paid for:
Interest on deposits and borrowings (including interest credited to deposit accounts of $1,765 and $1,251 respectively)	2,086	1,372
Income taxes	1,433	1,225
Real estate acquired in settlement of loans	$ 431	$ 1,501

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Note 4 - Loans and Related Allowance for Loan Loss (Details) - Activity in the Allowance for Loan Losses - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	$ 5,686	$ 5,340	$ 5,195	$ 5,382
Charge-offs	(142)	(36)	(387)	(113)
Recoveries	44	33	105	68
Provision	300	0	975	0
Ending Balance	5,888	5,337	5,888	5,337
Originated Loans
Individually Evaluated for Impairment	540	896	540	896	$ 873
Collectively Evaluated for Potential Impairment	5,348	4,441	5,348	4,441	4,322
Residential Portfolio Segment [Member] | Real Estate Sector [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	1,667	1,478	2,690	1,481
Charge-offs	(28)	0	(139)	(10)
Recoveries	4	1	9	2
Provision	(87)	10	(1,004)	16
Ending Balance	1,556	1,489	1,556	1,489
Originated Loans
Individually Evaluated for Impairment	0	0	0	0	0
Collectively Evaluated for Potential Impairment	1,556	1,489	1,556	1,489	2,690
Commercial Real Estate Portfolio Segment [Member] | Real Estate Sector [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	1,746	1,712	582	1,703
Charge-offs	0	0	(18)	0
Recoveries	1	0	4	0
Provision	135	(2)	1,314	7
Ending Balance	1,882	1,710	1,882	1,710
Originated Loans
Individually Evaluated for Impairment	405	460	405	460	519
Collectively Evaluated for Potential Impairment	1,477	1,250	1,477	1,250	63
Construction Portfolio Segment [Member] | Real Estate Sector [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	87	293	122	355
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision	28	(64)	(7)	(126)
Ending Balance	115	229	115	229
Originated Loans
Individually Evaluated for Impairment	0	192	0	192	100
Collectively Evaluated for Potential Impairment	115	37	115	37	22
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	917	1,027	684	1,013
Charge-offs	0	0	0	0
Recoveries	0	2	10	4
Provision	(94)	(55)	129	(43)
Ending Balance	823	974	823	974
Originated Loans
Individually Evaluated for Impairment	135	244	135	244	254
Collectively Evaluated for Potential Impairment	688	730	688	730	430
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	1,338	571	1,015	592
Charge-offs	(114)	(36)	(230)	(103)
Recoveries	39	30	82	62
Provision	241	265	637	279
Ending Balance	1,504	830	1,504	830
Originated Loans
Individually Evaluated for Impairment	0	0	0	0	0
Collectively Evaluated for Potential Impairment	1,504	830	1,504	830	1,015
Unallocated Financing Receivables [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	(69)	259	102	238
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision	77	(154)	(94)	(133)
Ending Balance	8	105	8	105
Originated Loans
Individually Evaluated for Impairment	0	0	0	0	0
Collectively Evaluated for Potential Impairment	$ 8	$ 105	$ 8	$ 105	$ 102

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Note 2 - Earnings Per Share (Details)	9 Months Ended
	Sep. 30, 2015 shares
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0

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Note 9 - Fair Value Disclosure (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

		(Dollars in thousands)
	Valuation Technique	September 30, 2015		December 31, 2014
Available for Sales Securities:
U.S. Government Agencies	Level II	$	53,073	$	57,651
Obligations of States and Political Subdivisions	Level II		43,619		42,381
Mortgage-Backed Securities - Government-Sponsored Enterprises	Level II		3,648		4,273
Equity Securities - Mutual Funds	Level I		518		514
Equity Securities - Other	Level I		657		630
Total Available for Sale Securities		$	101,515	$	105,449

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

		(Dollars in thousands)
		Fair Value at						Significant
Financial Asset	Valuation Technique	September 30, 2015		December 31, 2014		Valuation Technique	Significant Unobservable Inputs	Unobservable  Input Value
Impaired Loans	Level III	$	1,105	$	1,959	Market Comparable Properties	Marketability Discount	10%	to	30%	(1)
OREO	Level III		431		77	Market Comparable Properties	Marketability Discount	10%	to	50%	(1)

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

		(Dollars in thousands)
		September 30, 2015				December 31, 2014
	Valuation Method Used	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and Due From Banks:
Interest Bearing	Level I	$	4,577	$	4,577	$	5,933	$	5,933
Non-Interest Bearing	Level I		10,887		10,887		5,818		5,818
Investment Securities:
Available for Sale	See Above		101,515		101,515		105,449		105,449
Held-to-Maturity	Level II		-		-		504		504
Loans, Net	Level III		661,225		679,177		680,451		695,844
Restricted Stock	Level II		2,651		2,651		3,390		3,390
Bank-Owned Life Insurance	Level II		18,089		18,089		17,735		17,735
Accrued Interest Receivable	Level II		2,267		2,267		2,535		2,535
Financial Liabilities:
Deposits	Level II		689,946		690,455		697,494		698,418
Short-term Borrowings	Level II		27,908		27,908		46,684		46,684
Other Borrowed Funds	Level III		15,000		15,061		15,136		15,305
Accrued Interest Payable	Level II		312		312		348		348

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Note 4 - Loans and Related Allowance for Loan Loss (Details) - Accretable Discount on Loans Acquired at Fair Value $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Accretable Discount on Loans Acquired at Fair Value [Abstract]
Balance at December 31, 2014	$ 4,359
Balance at September 30, 2015	3,598
Accretable yield	(839)
Nonaccretable premium	$ 78

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Note 2 - Earnings Per Share (Details) - Basic and Diluted Earnings Per Common Share - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic and Diluted Earnings Per Common Share [Abstract]
Weighted-Average Common Shares Outstanding	4,363,346	2,639,097	4,363,346	2,639,866
Average Treasury Stock Shares	(291,884)	(290,774)	(291,884)	(290,910)
Weighted-Average Common Shares and Common Stock Equivalents Used to Calculate Basic Earnings Per Share	4,071,462	2,348,323	4,071,462	2,348,956
Additional Common Stock Equivalents (Stock Options) Used to Calculate Diluted Earnings Per Share				5,528
Weighted-Average Common Shares and Common Stock Equivalents Used to Calculate Diluted Earnings Per Share	4,071,462	2,348,323	4,071,462	2,354,484
Earnings per share:
Basic (in Dollars per share)	$ 0.52	$ 0.32	$ 1.64	$ 1.09
Diluted (in Dollars per share)	$ 0.52	$ 0.32	$ 1.64	$ 1.09

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Note 3 - Investment Securities (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held	$ 0	$ 0

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Consolidated Statement of Changes in Stockholders’ Equity (Unaudited) (Parentheticals) - $ / shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Dividends paid	$ 0.63	$ 0.63
Common Stock [Member]
Purchase of common stock, shares (in Shares)		133,000

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Note 3 - Investment Securities (Details) - Amortized Cost and Fair Value of Investment Securities Available-for-Sale - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 100,282	$ 104,593
Gross Unrealized Gains	1,315	1,130
Gross Unrealized Losses	(82)	(274)
Fair Value	101,515	105,449
US Government Agencies Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	52,724	57,669
Gross Unrealized Gains	352	139
Gross Unrealized Losses	(3)	(157)
Fair Value	53,073	57,651
US States and Political Subdivisions Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	42,865	41,611
Gross Unrealized Gains	829	886
Gross Unrealized Losses	(75)	(116)
Fair Value	43,619	42,381
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,593	4,240
Gross Unrealized Gains	55	33
Fair Value	3,648	4,273
Equity Securities - Mutual Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	500	500
Gross Unrealized Gains	18	14
Fair Value	518	514
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	600	573
Gross Unrealized Gains	61	58
Gross Unrealized Losses	(4)	(1)
Fair Value	$ 657	$ 630

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Note 4 - Loans and Related Allowance for Loan Loss (Details) - Nonperforming Assets - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Nonaccrual Loans:
Nonaccrual loans	$ 5,731		$ 2,956
Loans Acquired at Fair Value:
Total Nonperforming Loans	667,113		685,646
Total Nonperforming Assets	$ 824,148		$ 846,314
Nonperforming Loans to Total Loans	1.47%		1.03%
Nonperforming Assets to Total Assets	1.23%		0.86%
Originated Loans:
Nonperforming loans	$ 1,135	$ 9
Nonperforming Financial Instruments [Member]
Nonaccrual Loans:
Nonaccrual loans	5,731		$ 2,956
Total Nonaccrual Loans and Accruing Loans 90 Days or More Past Due	5,883		3,335
Loans Acquired at Fair Value:
Total Nonperforming Loans	9,833		7,028
Total Nonperforming Assets	10,158		7,306
Accruing loans past due 90 days or more	152		379
Originated Loans:
Nonperforming loans	3,950		3,693
Real estate owned	325		278
Originated Loans [Member]
Nonaccrual Loans:
Nonaccrual loans	3,224		1,238
Loans Acquired at Fair Value:
Total Nonperforming Loans	458,788		409,331
Originated Loans [Member] | Nonperforming Financial Instruments [Member]
Originated Loans:
Nonperforming loans	1,123		556
Acquired Loans [Member]
Nonaccrual Loans:
Nonaccrual loans	2,507		1,718
Loans Acquired at Fair Value:
Total Nonperforming Loans	208,325		276,315
Acquired Loans [Member] | Nonperforming Financial Instruments [Member]
Originated Loans:
Nonperforming loans	2,827		3,137
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Originated Loans:
Real estate owned	151		104
Residential Portfolio Segment [Member] | Real Estate Sector [Member]
Nonaccrual Loans:
Nonaccrual loans	2,455		1,543
Loans Acquired at Fair Value:
Total Nonperforming Loans	273,440		323,280
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Nonperforming Financial Instruments [Member]
Nonaccrual Loans:
Nonaccrual loans	2,455		1,543
Loans Acquired at Fair Value:
Accruing loans past due 90 days or more	54		369
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Nonaccrual Loans:
Nonaccrual loans	368		309
Loans Acquired at Fair Value:
Total Nonperforming Loans	164,362		161,719
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Nonaccrual Loans:
Nonaccrual loans	2,087		1,234
Loans Acquired at Fair Value:
Total Nonperforming Loans	109,078		161,561
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Nonperforming Financial Instruments [Member]
Originated Loans:
Nonperforming loans	1,306		1,337
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Loans Acquired at Fair Value:
Accruing loans past due 90 days or more	43
Commercial Portfolio Segment [Member] | Real Estate Sector [Member]
Nonaccrual Loans:
Nonaccrual loans	2,974		1,065
Loans Acquired at Fair Value:
Total Nonperforming Loans	202,082		182,858
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Nonperforming Financial Instruments [Member]
Nonaccrual Loans:
Nonaccrual loans	2,974		1,065
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Nonaccrual Loans:
Nonaccrual loans	2,554		581
Loans Acquired at Fair Value:
Total Nonperforming Loans	124,786		104,994
Originated Loans:
Nonperforming loans	1,135	$ 9
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Nonperforming Financial Instruments [Member]
Originated Loans:
Nonperforming loans	1,116		246
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Nonaccrual Loans:
Nonaccrual loans	420		484
Loans Acquired at Fair Value:
Total Nonperforming Loans	77,296		77,864
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Nonperforming Financial Instruments [Member]
Originated Loans:
Nonperforming loans	1,521		1,800
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member]
Nonaccrual Loans:
Nonaccrual loans			4
Loans Acquired at Fair Value:
Total Nonperforming Loans	69,468		76,601
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Nonperforming Financial Instruments [Member]
Nonaccrual Loans:
Nonaccrual loans			4
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member]
Nonaccrual Loans:
Nonaccrual loans			4
Loans Acquired at Fair Value:
Total Nonperforming Loans	52,725		53,238
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member] | Nonperforming Financial Instruments [Member]
Originated Loans:
Nonperforming loans	7		310
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member]
Loans Acquired at Fair Value:
Total Nonperforming Loans	16,743		23,363
Construction Portfolio Segment [Member] | Real Estate Sector [Member]
Nonaccrual Loans:
Nonaccrual loans	262		344
Loans Acquired at Fair Value:
Total Nonperforming Loans	18,783		22,197
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Nonperforming Financial Instruments [Member]
Nonaccrual Loans:
Nonaccrual loans	262		344
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Nonaccrual Loans:
Nonaccrual loans	262		344
Loans Acquired at Fair Value:
Total Nonperforming Loans	14,200		10,039
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Loans Acquired at Fair Value:
Total Nonperforming Loans	4,583		12,158
Consumer Portfolio Segment [Member]
Nonaccrual Loans:
Nonaccrual loans	40
Loans Acquired at Fair Value:
Total Nonperforming Loans	98,669		77,611
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Nonaccrual Loans:
Nonaccrual loans	40
Loans Acquired at Fair Value:
Accruing loans past due 90 days or more	55		10
Consumer Portfolio Segment [Member] | Originated Loans [Member]
Nonaccrual Loans:
Nonaccrual loans	40
Loans Acquired at Fair Value:
Total Nonperforming Loans	98,044		76,242
Consumer Portfolio Segment [Member] | Acquired Loans [Member]
Loans Acquired at Fair Value:
Total Nonperforming Loans	625		1,369
Unallocated Financing Receivables [Member]
Loans Acquired at Fair Value:
Total Nonperforming Loans	4,671		3,099
Unallocated Financing Receivables [Member] | Nonperforming Financial Instruments [Member]
Originated Loans:
Real estate owned	174		174
Unallocated Financing Receivables [Member] | Originated Loans [Member]
Loans Acquired at Fair Value:
Total Nonperforming Loans	4,671		3,099
Unallocated Financing Receivables [Member] | Acquired Loans [Member]
Loans Acquired at Fair Value:
Total Nonperforming Loans	$ 0		$ 0

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Note 9 - Fair Value Disclosure (Details) - Assets and Liabilities Reported Fair Value - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Available for Sales Securities:
Available for Sale Securities	$ 101,515	$ 105,449
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Available for Sales Securities:
Available for Sale Securities	53,073	57,651
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member]
Available for Sales Securities:
Available for Sale Securities	43,619	42,381
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Available for Sales Securities:
Available for Sale Securities	3,648	4,273
Fair Value, Inputs, Level 1 [Member] | Equity Securities - Mutual Funds [Member]
Available for Sales Securities:
Available for Sale Securities	518	514
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member]
Available for Sales Securities:
Available for Sale Securities	$ 657	$ 630

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Consolidated Statement of Financial Condition (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Cash and Due From Banks:
Interest Bearing	$ 4,577	$ 5,933
Non-Interest Bearing	10,887	5,818
Total Cash and Due From Banks	15,464	11,751
Investment Securities:
Available-for-Sale	101,515	105,449
Held-to-Maturity		504
Loans, Net	661,225	680,451
Premises and Equipment, Net	10,289	10,593
Bank-Owned Life Insurance	18,089	17,735
Goodwill	5,632	5,632
Core Deposit Intangible	4,487	4,888
Accrued Interest and Other Assets	7,447	9,311
TOTAL ASSETS	824,148	846,314
Deposits:
Demand Deposits	163,540	163,362
NOW Accounts	95,184	98,919
Money Market Accounts	142,927	160,747
Savings Accounts	122,695	118,332
Time Deposits	148,379	151,594
Brokered Deposits	17,221	4,540
Total Deposits	689,946	697,494
Short-Term Borrowings	27,908	46,684
Other Borrowed Funds	15,000	15,136
Accrued Interest and Other Liabilities	5,035	5,088
TOTAL LIABILITIES	$ 737,889	$ 764,402
STOCKHOLDERS' EQUITY
Preferred Stock, No Par Value; 5,000,000 Shares Authorized
Common Stock, $0.4167 Par Value; 35,000,000 Shares Authorized, 4,363,346 Shares Issued and 4,071,462 Shares Outstanding at September 30, 2015 and December 31, 2014, Respectively	$ 1,818	$ 1,818
Capital Surplus	41,762	41,762
Retained Earnings	46,864	42,766
Treasury Stock, at Cost (291,884 Shares at September 30, 2015 and December 31, 2014, Respectively)	(4,999)	(4,999)
Accumulated Other Comprehensive Income	814	565
TOTAL STOCKHOLDERS' EQUITY	86,259	81,912
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 824,148	$ 846,314

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Note 4 - Loans and Related Allowance for Loan Loss (Details) - Major Classifications of Loans Summarized by Individually Evaluated for Impairment and Collectively Evaluated for Potential Losses - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Originated Loans
Individually Evaluated for Impairment	$ 14,020	$ 9,391
Collectively Evaluated for Potential Impairment	653,093	676,255
Total Loans	667,113	685,646
Originated Loans [Member]
Originated Loans
Individually Evaluated for Impairment	9,565	6,598
Collectively Evaluated for Potential Impairment	449,223	402,733
Total Loans	458,788	409,331
Acquired Loans [Member]
Originated Loans
Individually Evaluated for Impairment	4,455	2,793
Collectively Evaluated for Potential Impairment	203,870	273,522
Total Loans	208,325	276,315
Residential Portfolio Segment [Member] | Real Estate Sector [Member]
Originated Loans
Individually Evaluated for Impairment	1,312	992
Collectively Evaluated for Potential Impairment	272,128	322,288
Total Loans	273,440	323,280
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Originated Loans
Individually Evaluated for Impairment	6	45
Collectively Evaluated for Potential Impairment	164,356	161,674
Total Loans	164,362	161,719
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Originated Loans
Individually Evaluated for Impairment	1,306	947
Collectively Evaluated for Potential Impairment	107,772	160,614
Total Loans	109,078	161,561
Commercial Portfolio Segment [Member] | Real Estate Sector [Member]
Originated Loans
Individually Evaluated for Impairment	10,785	6,580
Collectively Evaluated for Potential Impairment	191,297	176,278
Total Loans	202,082	182,858
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Originated Loans
Individually Evaluated for Impairment	7,678	4,734
Collectively Evaluated for Potential Impairment	117,108	100,260
Total Loans	124,786	104,994
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Originated Loans
Individually Evaluated for Impairment	3,107	1,846
Collectively Evaluated for Potential Impairment	74,189	76,018
Total Loans	77,296	77,864
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member]
Originated Loans
Individually Evaluated for Impairment	1,661	686
Collectively Evaluated for Potential Impairment	67,807	75,915
Total Loans	69,468	76,601
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member]
Originated Loans
Individually Evaluated for Impairment	1,619	686
Collectively Evaluated for Potential Impairment	51,106	52,552
Total Loans	52,725	53,238
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member]
Originated Loans
Individually Evaluated for Impairment	42	0
Collectively Evaluated for Potential Impairment	16,701	23,363
Total Loans	16,743	23,363
Construction Portfolio Segment [Member] | Real Estate Sector [Member]
Originated Loans
Individually Evaluated for Impairment	262	1,133
Collectively Evaluated for Potential Impairment	18,521	21,064
Total Loans	18,783	22,197
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Originated Loans
Individually Evaluated for Impairment	262	1,133
Collectively Evaluated for Potential Impairment	13,938	8,906
Total Loans	14,200	10,039
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Originated Loans
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	4,583	12,158
Total Loans	4,583	12,158
Consumer Portfolio Segment [Member]
Originated Loans
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	98,669	77,611
Total Loans	98,669	77,611
Consumer Portfolio Segment [Member] | Originated Loans [Member]
Originated Loans
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	98,044	76,242
Total Loans	98,044	76,242
Consumer Portfolio Segment [Member] | Acquired Loans [Member]
Originated Loans
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	625	1,369
Total Loans	625	1,369
Unallocated Financing Receivables [Member]
Originated Loans
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	4,671	3,099
Total Loans	4,671	3,099
Unallocated Financing Receivables [Member] | Originated Loans [Member]
Originated Loans
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	4,671	3,099
Total Loans	4,671	3,099
Unallocated Financing Receivables [Member] | Acquired Loans [Member]
Originated Loans
Individually Evaluated for Impairment	0	0
Collectively Evaluated for Potential Impairment	0	0
Total Loans	$ 0	$ 0

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Consolidated Statement of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Unrealized Gains on Available-for-Sale Securities, Tax	$ 151	$ (2)	$ 128	$ 659
Reclassification adjustment for gains on securities, tax		$ 12		$ 12

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Note 3 - Investment Securities (Details) - Maturities of Investment Securities Available-for-Sale and Held-to-maturity - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Maturities of Investment Securities Available-for-Sale and Held-to-maturity [Abstract]
Due in One Year or Less	$ 2,577
Due in One Year or Less	2,618
Due after One Year through Five Years	37,259
Due after One Year through Five Years	37,574
Due after Five Years through Ten Years	49,424
Due after Five Years through Ten Years	49,950
Due after Ten Years	11,022
Due after Ten Years	11,373
Total	100,282	$ 104,593
Total	$ 101,515	$ 105,449

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Note 3 - Investment Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities [Table Text Block]

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government Agencies	$	52,724	$	352	$	(3	)	$	53,073
Obligations of States and Political Subdivisions		42,865		829		(75	)		43,619
Mortgage-Backed Securities - Government-Sponsored Enterprises		3,593		55		-			3,648
Equity Securities - Mutual Funds		500		18		-			518
Equity Securities - Other		600		61		(4	)		657
Total	$	100,282	$	1,315	$	(82	)	$	101,515

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government Agencies	$	57,669	$	139	$	(157	)	$	57,651
Obligations of States and Political Subdivisions		41,611		886		(116	)		42,381
Mortgage-Backed Securities - Government-Sponsored Enterprises		4,240		33		-			4,273
Equity Securities - Mutual Funds		500		14		-			514
Equity Securities - Other		573		58		(1	)		630
Total	$	104,593	$	1,130	$	(274	)	$	105,449

Held-to-maturity Securities [Table Text Block]

	(Dollars in thousands)
	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Obligations of States and Political Subdivisions	$	504	$	-	$	-	$	504

Schedule of Unrealized Loss on Investments [Table Text Block]

	(Dollars in thousands)
	September 30, 2015
	Less than 12 months							12 Months or Greater							Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses
U.S. Government Agencies		1	$	1,018	$	(3	)		-	$	-	$	-			1	$	1,018	$	(3	)
Obligations of States and Political Subdivisions		12		7,024		(45	)		9		5,368		(30	)		21		12,392		(75	)
Equity Securities - Other		2		100		(4	)		-		-		-			2		100		(4	)
Total		15	$	8,142	$	(52	)		9	$	5,368	$	(30	)		24	$	13,510	$	(82	)

	December 31, 2014
	Less than 12 months							12 Months or Greater							Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses
U.S. Government Agencies		10	$	26,101	$	(144	)		1	$	2,987	$	(13	)		11	$	29,088	$	(157	)
Obligations of States and Political Subdivisions		5		2,123		(9	)		22		13,590		(107	)		27		15,713		(116	)
Equity Securities - Other		1		48		(1	)		-		-		-			1		48		(1	)
Total		16	$	28,272	$	(154	)		23	$	16,577	$	(120	)		39	$	44,849	$	(274	)

Investments Classified by Contractual Maturity Date [Table Text Block]

	(Dollars in thousands)
	September 30, 2015
	Available-for-Sale
	Amortized Cost		Fair Value
Due in One Year or Less	$	2,577	$	2,618
Due after One Year through Five Years		37,259		37,574
Due after Five Years through Ten Years		49,424		49,950
Due after Ten Years		11,022		11,373
Total	$	100,282	$	101,515

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Note 4 - Loans and Related Allowance for Loan Loss (Details)			3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014	Sep. 30, 2015 USD ($)	Sep. 30, 2014
Note 4 - Loans and Related Allowance for Loan Loss (Details) [Line Items]
Number of Loan Portfolio Segments	4		4		4
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums (in Dollars)	$ 667,000	$ 322,000	$ 667,000		$ 667,000
Real Estate Loans Serviced for Others (in Dollars)	70,000,000	62,300,000	70,000,000		70,000,000
Mortgage Loans in Process of Foreclosure, Amount (in Dollars)	$ 2,800,000	$ 2,700,000	2,800,000		$ 2,800,000
Financing Receivable, Modifications, Number of Contracts	12	13			2	1
Financing Receivable, Modifications, Recorded Investment (in Dollars)	$ 4,200,000	$ 4,000,000	$ 4,200,000		$ 4,200,000
Financing Receivable, Modifications, Subsequent Default, Number of Contracts			0	0	0	0
Refinanced [Member]
Note 4 - Loans and Related Allowance for Loan Loss (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts					1
Originated Loans [Member]
Note 4 - Loans and Related Allowance for Loan Loss (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts	4	4
Financing Receivable, Modifications, Recorded Investment (in Dollars)	$ 1,400,000	$ 830,000	$ 1,400,000		$ 1,400,000
Acquired Loans [Member]
Note 4 - Loans and Related Allowance for Loan Loss (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts	8	9
Financing Receivable, Modifications, Recorded Investment (in Dollars)	$ 2,800,000	$ 3,100,000	$ 2,800,000		$ 2,800,000
Commercial Portfolio Segment [Member]
Note 4 - Loans and Related Allowance for Loan Loss (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts					2
Financing Receivable, Modifications, Number of Contracts Paid-off			1		1
Commercial Portfolio Segment [Member] | Refinanced [Member]
Note 4 - Loans and Related Allowance for Loan Loss (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts					2
Commercial Portfolio Segment [Member] | Originated Loans [Member]
Note 4 - Loans and Related Allowance for Loan Loss (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts					1

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Note 5 - Deposits (Tables)

9 Months Ended

Sep. 30, 2015

Note 5 - Deposits (Tables) [Line Items]

Schedule of Long-term Debt Instruments [Table Text Block]

	(Dollars in thousands)
	September 30, 2015				December 31, 2014
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Due in One Year	$	-		-%	$	15,136		3.78	%
Due After One Year to Two Years		3,500		0.94		-		-
Due After Two Years to Three Years		3,500		1.35		-		-
Due After Three Years to Four Years		3,000		1.68		-		-
Due After Four Years to Five Years		3,000		1.88		-		-
Due After Five Years		2,000		2.12		-		-
Total	$	15,000		1.53	$	15,136		3.78

Time Deposits [Member]

Note 5 - Deposits (Tables) [Line Items]

Schedule of Long-term Debt Instruments [Table Text Block]

Maturity Period:	September 30, 2015
One Year or Less	$	62,907
Over One Through Two Years		28,915
Over Two Through Three Years		16,342
Over Three Through Four Years		11,628
Over Four Through Five Years		17,579
Over Five Years		11,008
Total	$	148,379

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Consolidated Statement of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Total
Beginning Balance at Dec. 31, 2013	$ 1,095	$ 5,969	$ 40,807	$ (2,103)	$ (763)	$ 45,005
Beginning Balance (in Shares) at Dec. 31, 2013	2,626,864
Comprehensive income:
Net Income			2,557			2,557
Other comprehensive income (loss)					1,256	1,256
Exercise of stock options	$ 6	200				206
Exercise of stock options (in Shares)	14,515
Purchase of common stock, at cost (133,000 shares)				(2,896)		(2,896)
Dividends paid			(1,478)			(1,478)
Ending Balance at Sep. 30, 2014	$ 1,101	6,169	41,886	(4,999)	493	44,650
Ending Balance (in Shares) at Sep. 30, 2014	2,641,379
Beginning Balance at Dec. 31, 2014	$ 1,818	41,762	42,766	(4,999)	565	81,912
Beginning Balance (in Shares) at Dec. 31, 2014	4,363,346
Comprehensive income:
Net Income			6,663			6,663
Other comprehensive income (loss)					249	249
Dividends paid			(2,565)			(2,565)
Ending Balance at Sep. 30, 2015	$ 1,818	$ 41,762	$ 46,864	$ (4,999)	$ 814	$ 86,259
Ending Balance (in Shares) at Sep. 30, 2015	4,363,346

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Consolidated Statement of Financial Condition (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred Stock, Par Value (in Dollars per share)	$ 0	$ 0
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Common Stock, Par Value (in Dollars per share)	$ 0.4167	$ 0.4167
Common Stock, Shares Authorized	35,000,000	35,000,000
Common Stock, Shares Issued	4,363,346	4,363,346
Common Stock, Shares Outstanding	4,071,462	4,071,462
Treasury Stock, at Cost (Shares)	291,884	291,884

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Note 7 - Other Borrowed Funds

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 7. Other Borrowed Funds

Other borrowed funds consist of fixed rate advances from the Federal Home Loan Bank of Pittsburgh (“FHLB”). The following table sets forth the scheduled maturities of other borrowed funds at the dates indicated.

	(Dollars in thousands)
	September 30, 2015				December 31, 2014
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Due in One Year	$	-		-%	$	15,136		3.78	%
Due After One Year to Two Years		3,500		0.94		-		-
Due After Two Years to Three Years		3,500		1.35		-		-
Due After Three Years to Four Years		3,000		1.68		-		-
Due After Four Years to Five Years		3,000		1.88		-		-
Due After Five Years		2,000		2.12		-		-
Total	$	15,000		1.53	$	15,136		3.78

As of September 30, 2015, the Company maintained a credit arrangement with a maximum borrowing limit of approximately $297.1 million with the FHLB. This arrangement is subject to annual renewal, incurs no service charge, and is secured by a blanket security agreement on outstanding residential mortgage loans and the Company’s investment in FHLB stock. Under this arrangement the Company had available a variable rate Line of Credit in the amount of $20.0 million as of September 30, 2015 and December 31, 2014.

The Company maintains a Borrower-In-Custody of Collateral line of credit agreement with the Federal Reserve Bank for $40.0 million that requires quarterly certification of collateral, is subject to annual renewal, incurs no service charge and is secured by commercial and consumer indirect auto loans. The Company also maintains multiple line of credit arrangements with various banks totaling $40.0 million. As of September 30, 2015 and December 31, 2014, no draws had been taken on these facilities.

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Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 09, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	CB Financial Services, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		4,071,462
Amendment Flag	false
Entity Central Index Key	0001605301
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

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Note 8 - Commitments and Contingent Liabilities

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 8. Commitments and Contingent Liabilities

The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business primarily to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and performance letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Statement of Financial Condition. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

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 and performance letters of credit written 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.

The following table presents the unused and available credit balances of financial instruments whose contracts represent credit risk at the dates indicated.

	(Dollars in thousands)
	September 30, 2015		December 31, 2014
Standby Letters of Credit	$	21,229	$	18,260
Performance Letters of Credit		2,224		2,986
Construction Mortgages		25,334		12,241
Personal Lines of Credit		5,847		5,675
Overdraft Protection Lines		6,158		6,505
Home Equity Lines of Credit		14,237		13,253
Commercial Lines of Credit		52,043		54,301
	$	127,072	$	113,221

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 require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’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 counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties.

Performance letters of credit represent conditional commitments issued by the Company to guarantee the performance of a customer to a third party. These instruments are issued primarily to support bid or performance-related contracts. The coverage period for these instruments is typically a one-year period with an annual renewal option subject to prior approval by management. Fees earned from the issuance of these letters are recognized upon expiration of the letter. For secured letters of credit, the collateral is typically Company deposit instruments or customer business assets.

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Consolidated Statement of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
INTEREST AND DIVIDEND INCOME
Loans, Including Fees	$ 7,390	$ 4,077	$ 22,256	$ 12,067
Federal Funds Sold	4	7	11	18
Investment Securities:
Taxable	237	187	704	633
Exempt From Federal Income Tax	278	318	848	1,021
Other Interest and Dividend Income	37	24	241	77
TOTAL INTEREST AND DIVIDEND INCOME	7,946	4,613	24,060	13,816
INTEREST EXPENSE
Deposits	577	388	1,769	1,222
Federal Funds Purchased			1	1
Short-Term Borrowings	16	11	61	31
Other Borrowed Funds	66	28	218	86
TOTAL INTEREST EXPENSE	659	427	2,049	1,340
NET INTEREST INCOME	7,287	4,186	22,011	12,476
Provision For Loan Losses	300		975
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	6,987	4,186	21,036	12,476
NONINTEREST INCOME
Service Fees on Deposit Accounts	632	575	1,834	1,538
Insurance Commissions	772	3	2,640	8
Other Commissions	142	100	379	291
Net Gains on Sales of Loans	205	74	248	272
Net Gains on Sales of Investments		35		35
Income from Bank-Owned Life Insurance	119	58	354	174
Other	35	10	82	35
TOTAL NONINTEREST INCOME	1,905	855	5,537	2,353
NONINTEREST EXPENSE
Salaries and Employee Benefits	3,131	1,893	9,466	5,642
Occupancy	428	283	1,326	874
Equipment	411	275	1,215	802
FDIC Assessment	120	96	373	288
PA Shares Tax	165	87	513	271
Contracted Services	156	89	440	276
Legal and Professional Fees	118	32	359	306
Advertising	233	88	679	268
Bankcard Processing Expense	116	89	343	217
Other Real Estate Owned Expense (Income)	32	222	(210)	204
Amortization of Core Deposit Intangible	134		401
Merger-Related		368		1,033
Other	816	512	2,237	1,357
TOTAL NONINTEREST EXPENSE	5,860	4,034	17,142	11,538
Income Before Income Taxes	3,032	1,007	9,431	3,291
Income Taxes	904	268	2,768	734
NET INCOME	$ 2,128	$ 739	$ 6,663	$ 2,557
EARNINGS PER SHARE
Basic (in Dollars per share)	$ 0.52	$ 0.32	$ 1.64	$ 1.09
Diluted (in Dollars per share)	$ 0.52	$ 0.32	$ 1.64	$ 1.09
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in Shares)	4,071,462	2,348,323	4,071,462	2,348,956
Diluted (in Shares)	4,071,462	2,348,323	4,071,462	2,354,484

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Note 2 - Earnings Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Note 2. Earnings Per Share

There are no convertible securities which would affect the numerator in calculating basic and diluted earnings per share; therefore, net income as presented on the Consolidated Statement of Income is used as the numerator.

The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Weighted-Average Common Shares Outstanding		4,363,346			2,639,097			4,363,346			2,639,866
Average Treasury Stock Shares		(291,884	)		(290,774	)		(291,884	)		(290,910	)
Weighted-Average Common Shares and Common Stock Equivalents Used to Calculate Basic Earnings Per Share		4,071,462			2,348,323			4,071,462			2,348,956
Additional Common Stock Equivalents (Stock Options) Used to Calculate Diluted Earnings Per Share		-			-			-			5,528
Weighted-Average Common Shares and Common Stock Equivalents Used to Calculate Diluted Earnings Per Share		4,071,462			2,348,323			4,071,462			2,354,484
Earnings per share:
Basic	$	0.52		$	0.32		$	1.64		$	1.09
Diluted		0.52			0.32			1.64			1.09

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Note 1 - Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

Note 1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of CB Financial Services, Inc. (“CB Financial”) and its wholly owned subsidiary, Community Bank, (the “Bank”), and the Bank’s wholly-owned subsidiary, Exchange Underwriters, Inc. (“Exchange Underwriters”). CB Financial and the Bank are collectively referred to as the “Company”. All intercompany transactions and balances have been eliminated in consolidation.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and income and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, evaluation of securities for other-than-temporary impairment including related cash flow projections, goodwill impairment, and the valuation of deferred tax assets.

In the opinion of management, the accompanying unaudited interim financial statements include all adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations at the dates and for the periods presented. All of these adjustments are of a normal, recurring nature, and they are the only adjustments included in the accompanying unaudited interim financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Interim results are not necessarily indicative of results for a full year.

The Company evaluated the provisions of Accounting Standards Codification (“ASC”) Topic 280 and determined that segment reporting information related to Exchange Underwriters was not required to be presented because the segment comprises less than 10% of total interest and noninterest income and less than 10% of the combined assets of the Company.

The Company evaluated subsequent events through the date the consolidated financial statements were filed with the Securities and Exchange Commission and incorporated into the consolidated financial statements the effect of all material known events determined by ASC Topic 855, Subsequent Events, to be recognizable events.

Nature of Operations

The Company derives substantially all its income from banking and bank-related services which include interest earnings on commercial, commercial mortgage, residential real estate and consumer loan financing, as well as interest earnings on investment securities and fees generated from deposit services to its customers. The Company provides banking services primarily to communities in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties located in southwestern Pennsylvania. The Company also conducts insurance brokerage activities through Exchange Underwriters.

Acquired Loans

Loans that were acquired in the merger with FedFirst Financial Corporation were recorded at fair value with no carryover of the related allowance for credit losses. The fair value of the acquired loans was estimated by management with the assistance of a third party valuation specialist.

The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. The nonaccretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require an evaluation to determine the need for an allowance for loan losses. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the nonaccretable discount which is then reclassified as accretable discount that is recognized into interest income over the remaining life of the loan using the interest method. The evaluation of the amount of future cash flows that is expected to be collected is performed in a similar manner as that used to determine our allowance for credit losses. Charge-offs of the principal amount on acquired loans would be first applied to the nonaccretable discount portion of the fair value adjustment.

Reclassifications

Certain comparative amounts for the prior year have been reclassified to conform to the current year presentation. Such reclassifications did not affect net income or stockholders’ equity.

Recent Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which establishes a comprehensive revenue recognition standard for virtually all industries under GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. ASU 2014-09 specifies that an entity shall recognize revenue when, or as, the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when, or as, the customer obtains control of the asset. Entities are required to disclose qualitative and quantitative information on the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption not permitted. In July 2015, the FASB approved to defer for one year the effective date of this ASU to December 15, 2017 and to also allow entities to early adopt the standard, but not before December 31, 2016. The Company is evaluating the provisions of ASU 2014-09, but does not believe that its adoption will have a material impact on the Company’s financial condition and results of operations.

In January 2015, the FASB issued ASU 2015-01, Income Statement-Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU 2015-01 eliminates the requirement in ASC Subtopic 225-20 to consider whether an underlying event or transaction is extraordinary, and if so, to separately present the item in the income statement net of tax, after income from continuing operations. Items that are either unusual in nature or infrequently occurring will continue to be reported as a separate component of income from continuing operations. Alternatively, these amounts may still be disclosed in the notes to the financial statements. The same requirement has been expanded to include items that are both unusual and infrequent. ASU 2015-01 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted from the beginning of the fiscal year of adoption. The Company is evaluating the provisions of ASU 2015-01, but does not believe that its adoption will have a material impact on the Company’s financial condition and results of operations.

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Note 4 - Loans and Related Allowance for Loan Loss (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	(Dollars in thousands)
	September 30, 2015						December 31, 2014
	Amount			Percent			Amount			Percent
Originated Loans
Real Estate:
Residential	$	164,362			35.8	%	$	161,719			39.4	%
Commercial		124,786			27.2			104,994			25.7
Construction		14,200			3.1			10,039			2.5
Commercial and Industrial		52,725			11.5			53,238			13.0
Consumer		98,044			21.4			76,242			18.6
Other		4,671			1.0			3,099			0.8
Total Originated Loans		458,788			100.0	%		409,331			100.0	%
Allowance for Loan Losses		(5,888	)					(5,195	)
Loans, Net	$	452,900					$	404,136
Loans Acquired at Fair Value
Real Estate:
Residential	$	109,078			52.4	%	$	161,561			58.4	%
Commercial		77,296			37.1			77,864			28.2
Construction		4,583			2.2			12,158			4.4
Commercial and Industrial		16,743			8.0			23,363			8.5
Consumer		625			0.3			1,369			0.5
Total Loans Acquired at Fair Value	$	208,325			100.0	%	$	276,315			100.0	%
Total Loans
Real Estate:
Residential	$	273,440			35.8	%	$	323,280			39.4	%
Commercial		202,082			27.2			182,858			25.7
Construction		18,783			3.1			22,197			2.5
Commercial and Industrial		69,468			11.5			76,601			13.0
Consumer		98,669			21.4			77,611			18.6
Other		4,671			1.0			3,099			0.8
Total Loans		667,113			100.0	%		685,646			100.0	%
Allowance for Loan Losses		(5,888	)					(5,195	)
Loans, Net	$	661,225					$	680,451

Financing Receivable Credit Quality Indicators [Table Text Block]

	(Dollars in thousands)
	September 30, 2015
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	163,766	$	227	$	364	$	5	$	164,362
Commercial		112,999		4,529		6,176		1,082		124,786
Construction		13,194		744		-		262		14,200
Commercial and Industrial		48,936		2,177		1,612		-		52,725
Consumer		98,004		-		40		-		98,044
Other		4,671		-		-		-		4,671
Total Originated Loans	$	441,570	$	7,677	$	8,192	$	1,349	$	458,788
Loans Acquired at Fair Value
Real Estate:
Residential	$	106,060	$	-	$	3,018	$	-	$	109,078
Commercial		70,424		4,342		2,530		-		77,296
Construction		4,583		-		-		-		4,583
Commercial and Industrial		15,501		1,200		42		-		16,743
Consumer		625		-		-		-		625
Total Loans Acquired at Fair Value	$	197,193	$	5,542	$	5,590	$	-	$	208,325
Total Loans
Real Estate:
Residential	$	269,826	$	227	$	3,382	$	5	$	273,440
Commercial		183,423		8,871		8,706		1,082		202,082
Construction		17,777		744		-		262		18,783
Commercial and Industrial		64,437		3,377		1,654		-		69,468
Consumer		98,629		-		40		-		98,669
Other		4,671		-		-		-		4,671
Total Loans	$	638,763	$	13,219	$	13,782	$	1,349	$	667,113

	December 31, 2014
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	161,191	$	194	$	315	$	19	$	161,719
Commercial		89,721		10,761		3,820		692		104,994
Construction		8,805		101		789		344		10,039
Commercial and Industrial		49,612		2,941		383		302		53,238
Consumer		76,238		-		4		-		76,242
Other		3,099		-		-		-		3,099
Total Originated Loans	$	388,666	$	13,997	$	5,311	$	1,357	$	409,331
Loans Acquired at Fair Value
Real Estate:
Residential	$	159,633	$	-	$	1,928	$	-	$	161,561
Commercial		73,280		2,429		2,155		-		77,864
Construction		12,158		-		-		-		12,158
Commercial and Industrial		21,913		1,450		-		-		23,363
Consumer		1,369		-		-		-		1,369
Total Loans Acquired at Fair Value	$	268,353	$	3,879	$	4,083	$	-	$	276,315
Total Loans
Real Estate:
Residential	$	320,824	$	194	$	2,243	$	19	$	323,280
Commercial		163,001		13,190		5,975		692		182,858
Construction		20,963		101		789		344		22,197
Commercial and Industrial		71,525		4,391		383		302		76,601
Consumer		77,607		-		4		-		77,611
Other		3,099		-		-		-		3,099
Total Loans	$	657,019	$	17,876	$	9,394	$	1,357	$	685,646

Past Due Financing Receivables [Table Text Block]

	September 30, 2015
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	163,613	$	107	$	274	$	-	$	381	$	368	$	164,362
Commercial		121,889		343		-		-		343		2,554		124,786
Construction		13,938		-		-		-		-		262		14,200
Commercial and Industrial		52,691		34		-		-		34		-		52,725
Consumer		97,570		364		70		-		434		40		98,044
Other		4,671		-		-		-		-		-		4,671
Total Originated Loans	$	454,372	$	848	$	344	$	-	$	1,192	$	3,224	$	458,788
Loans Acquired at Fair Value
Real Estate:
Residential	$	106,515	$	14	$	408	$	54	$	476	$	2,087	$	109,078
Commercial		75,995		210		671		-		881		420		77,296
Construction		4,583		-		-		-		-		-		4,583
Commercial and Industrial		16,685		-		15		43		58		-		16,743
Consumer		565		-		5		55		60		-		625
Total Loans Acquired at Fair Value	$	204,343	$	224	$	1,099	$	152	$	1,475	$	2,507	$	208,325
Total Loans
Real Estate:
Residential	$	270,128	$	121	$	682	$	54	$	857	$	2,455	$	273,440
Commercial		197,884		553		671		-		1,224		2,974		202,082
Construction		18,521		-		-		-		-		262		18,783
Commercial and Industrial		69,376		34		15		43		92		-		69,468
Consumer		98,135		364		75		55		494		40		98,669
Other		4,671		-		-		-		-		-		4,671
Total Loans	$	658,715	$	1,072	$	1,443	$	152	$	2,667	$	5,731	$	667,113

	December 31, 2014
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	161,145	$	249	$	16	$	-	$	265	$	309	$	161,719
Commercial		102,016		2,397		-		-		2,397		581		104,994
Construction		9,695		-		-		-		-		344		10,039
Commercial and Industrial		53,234		-		-		-		-		4		53,238
Consumer		75,839		369		24		10		403		-		76,242
Other		3,099		-		-		-		-		-		3,099
Total Originated Loans	$	405,028	$	3,015	$	40	$	10	$	3,065	$	1,238	$	409,331
Loans Acquired at Fair Value
Real Estate:
Residential	$	158,576	$	1,364	$	18	$	369	$	1,751	$	1,234	$	161,561
Commercial		77,252		128		-		-		128		484		77,864
Construction		12,158		-		-		-		-		-		12,158
Commercial and Industrial		23,356		7		-		-		7		-		23,363
Consumer		1,341		28		-		-		28		-		1,369
Total Loans Acquired at Fair Value	$	272,683	$	1,527	$	18	$	369	$	1,914	$	1,718	$	276,315
Total Loans
Real Estate:
Residential	$	319,721	$	1,613	$	34	$	369	$	2,016	$	1,543	$	323,280
Commercial		179,268		2,525		-		-		2,525		1,065		182,858
Construction		21,853		-		-		-		-		344		22,197
Commercial and Industrial		76,590		7		-		-		7		4		76,601
Consumer		77,180		397		24		10		431		-		77,611
Other		3,099		-		-		-		-		-		3,099
Total Loans	$	677,711	$	4,542	$	58	$	379	$	4,979	$	2,956	$	685,646

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

	(Dollars in Thousands)
	September 30,  2015			December 31,  2014
Nonaccrual Loans:
Real Estate:
Residential	$	2,455		$	1,543
Commercial		2,974			1,065
Construction		262			344
Commercial and Industrial		-			4
Consumer		40			-
Total Nonaccrual Loans		5,731			2,956
Accruing Loans Past Due 90 Days or More:
Real Estate:
Residential		54			369
Commercial and Industrial		43			-
Consumer		55			10
Total Accruing Loans 90 Days or More Past Due		152			379
Total Nonaccrual Loans and Accruing Loans 90 Days or More Past Due		5,883			3,335
Troubled Debt Restructurings, Accruing:
Originated Loans:
Real Estate - Commercial		1,116			246
Commercial and Industrial		7			310
Total Originated Loans		1,123			556
Loans Acquired at Fair Value:
Real Estate - Residential		1,306			1,337
Real Estate - Commercial		1,521			1,800
Total Loans Acquired at Fair Value		2,827			3,137
Total Troubled Debt Restructurings, Accruing		3,950			3,693
Total Nonperforming Loans		9,833			7,028
Real Estate Owned:
Residential		151			104
Other		174			174
Total Real Estate Owned		325			278
Total Nonperforming Assets	$	10,158		$	7,306
Nonperforming Loans to Total Loans		1.47	%		1.03	%
Nonperforming Assets to Total Assets		1.23			0.86

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	Nine Months Ended September 30, 2015
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Commercial		2	$	912	$	1,135	$	108
Total		2	$	912	$	1,135	$	108

	Three and Nine Months Ended September 30, 2014
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Commercial		1	$	9	$	9	$	-
Total		1	$	9	$	9	$	-

Impaired Financing Receivables [Table Text Block]

	(Dollars in thousands)
	September 30, 2015
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Residential	$	6	$	-	$	18	$	16	$	1
Commercial		6,246		-		6,246		6,374		173
Construction		262		-		262		311		-
Commercial and Industrial		1,406		-		1,406		1,409		43
Total With No Related Allowance Recorded	$	7,920	$	-	$	7,932	$	8,110	$	217
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,306	$	-	$	1,306	$	1,320	$	50
Commercial		3,107		-		3,166		3,345		120
Commercial and Industrial		42		-		42		47		1
Total With No Related Allowance Recorded	$	4,455	$	-	$	4,514	$	4,712	$	171
Total Loans
Real Estate:
Residential	$	1,312	$	-	$	1,324	$	1,336	$	51
Commercial		9,353		-		9,412		9,719		293
Construction		262		-		262		311		-
Commercial and Industrial		1,448		-		1,448		1,456		44
Total With No Related Allowance Recorded	$	12,375	$	-	$	12,446	$	12,822	$	388
With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,432	$	405	$	1,451	$	1,456	$	23
Commercial and Industrial		213		135		213		239		10
Total With A Related Allowance Recorded	$	1,645	$	540	$	1,664	$	1,695	$	33
Total Impaired Loans:
Originated Loans
Real Estate:
Residential	$	6	$	-	$	18	$	16	$	1
Commercial		7,678		405		7,697		7,830		196
Construction		262		-		262		311		-
Commercial and Industrial		1,619		135		1,619		1,648		53
Total Impaired Loans	$	9,565	$	540	$	9,596	$	9,805	$	250
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,306	$	-	$	1,306	$	1,320	$	50
Commercial		3,107		-		3,166		3,345		120
Commercial and Industrial		42		-		42		47		1
Total Impaired Loans	$	4,455	$	-	$	4,514	$	4,712	$	171
Total Loans
Real Estate:
Residential	$	1,312	$	-	$	1,324	$	1,336	$	51
Commercial		10,785		405		10,863		11,175		316
Construction		262		-		262		311		-
Commercial and Industrial		1,661		135		1,661		1,695		54
Total Impaired Loans	$	14,020	$	540	$	14,110	$	14,517	$	421

	December 31, 2014
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Residential	$	45	$	-	$	70	$	55	$	-
Commercial		3,352		-		3,366		4,300		149
Commercial and Industrial		369		-		369		426		17
Total With No Related Allowance Recorded	$	3,766	$	-	$	3,805	$	4,781	$	166
Loans Acquired at Fair Value
Real Estate:
Residential	$	947	$	-	$	947	$	957	$	51
Commercial		1,846		-		1,885		1,926		93
Total With No Related Allowance Recorded	$	2,793	$	-	$	2,832	$	2,883	$	144
Total Loans
Real Estate:
Residential	$	992	$	-	$	1,017	$	1,012	$	51
Commercial		5,198		-		5,251		6,226		242
Commercial and Industrial		369		-		369		426		17
Total With No Related Allowance Recorded	$	6,559	$	-	$	6,637	$	7,664	$	310
With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,382	$	519	$	1,389	$	1,427	$	51
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		317		254		317		319		17
Total With A Related Allowance Recorded	$	2,832	$	873	$	2,839	$	3,112	$	109
Total Loans
Originated Loans
Real Estate:
Residential	$	45	$	-	$	70	$	55	$	-
Commercial		4,734		519		4,755		5,727		200
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		686		254		686		745		34
Total Impaired Loans	$	6,598	$	873	$	6,644	$	7,893	$	275
Loans Acquired at Fair Value
Real Estate:
Residential	$	947	$	-	$	947	$	957	$	51
Commercial		1,846		-		1,885		1,926		93
Total Impaired Loans	$	2,793	$	-	$	2,832	$	2,883	$	144
Total Loans
Real Estate:
Residential	$	992	$	-	$	1,017	$	1,012	$	51
Commercial		6,580		519		6,640		7,653		293
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		686		254		686		745		34
Total Impaired Loans	$	9,391	$	873	$	9,476	$	10,776	$	419

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	(Dollars in thousands)
	Real Estate Residential			Real Estate Commercial			Real Estate Construction			Commercial and Industrial			Consumer			Unallocated			Total
June 30, 2015	$	1,667		$	1,746		$	87		$	917		$	1,338		$	(69	)	$	5,686
Charge-offs		(28	)		-			-			-			(114	)		-			(142	)
Recoveries		4			1			-			-			39			-			44
Provision		(87	)		135			28			(94	)		241			77			300
September 30, 2015	$	1,556		$	1,882		$	115		$	823		$	1,504		$	8		$	5,888
December 31, 2014	$	2,690		$	582		$	122		$	684		$	1,015		$	102		$	5,195
Charge-offs		(139	)		(18	)		-			-			(230	)		-			(387	)
Recoveries		9			4			-			10			82			-			105
Provision		(1,004	)		1,314			(7	)		129			637			(94	)		975
September 30, 2015	$	1,556		$	1,882		$	115		$	823		$	1,504		$	8		$	5,888
Originated Loans
Individually Evaluated for Impairment	$	-		$	405		$	-		$	135		$	-		$	-		$	540
Collectively Evaluated for Potential Impairment	$	1,556		$	1,477		$	115		$	688		$	1,504		$	8		$	5,348

	Real Estate Residential			Real Estate Commercial			Real Estate Construction			Commercial and Industrial			Consumer			Unallocated			Total
June 30, 2014	$	1,478		$	1,712		$	293		$	1,027		$	571		$	259		$	5,340
Charge-offs		-			-			-			-			(36	)		-			(36	)
Recoveries		1			-			-			2			30			-			33
Provision		10			(2	)		(64	)		(55	)		265			(154	)		-
September 30, 2014	$	1,489		$	1,710		$	229		$	974		$	830		$	105		$	5,337
December 31, 2013	$	1,481		$	1,703		$	355		$	1,013		$	592		$	238		$	5,382
Charge-offs		(10	)		-			-			-			(103	)		-			(113	)
Recoveries		2			-			-			4			62			-			68
Provision		16			7			(126	)		(43	)		279			(133	)		-
September 30, 2014	$	1,489		$	1,710		$	229		$	974		$	830		$	105		$	5,337
Originated Loans
Individually Evaluated for Impairment	$	-		$	460		$	192		$	244		$	-		$	-		$	896
Collectively Evaluated for Potential Impairment	$	1,489		$	1,250		$	37		$	730		$	830		$	105		$	4,441

December 31, 2014	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Unallocated		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	519	$	100	$	254	$	-	$	-	$	873
Collectively Evaluated for Potential Impairment	$	2,690	$	63	$	22	$	430	$	1,015	$	102	$	4,322

Schedule of Accretable Discount on Loans Acquired at Fair Value [Table Text Block]

	Accretable Discount
Balance at December 31, 2014	$	4,359
Accretable yield		(839	)
Nonaccretable premium		78
Balance at September 30, 2015	$	3,598

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

	(Dollars in thousands)
	September 30, 2015
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	6	$	7,678	$	262	$	1,619	$	-	$	-	$	9,565
Collectively Evaluated for Potential Impairment		164,356		117,108		13,938		51,106		98,044		4,671		449,223
	$	164,362	$	124,786	$	14,200	$	52,725	$	98,044	$	4,671	$	458,788
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	1,306	$	3,107	$	-	$	42	$	-	$	-	$	4,455
Collectively Evaluated for Potential Impairment		107,772		74,189		4,583		16,701		625		-		203,870
	$	109,078	$	77,296	$	4,583	$	16,743	$	625	$	-	$	208,325
Total Loans
Individually Evaluated for Impairment	$	1,312	$	10,785	$	262	$	1,661	$	-	$	-	$	14,020
Collectively Evaluated for Potential Impairment		272,128		191,297		18,521		67,807		98,669		4,671		653,093
	$	273,440	$	202,082	$	18,783	$	69,468	$	98,669	$	4,671	$	667,113

	December 31, 2014
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	45	$	4,734	$	1,133	$	686	$	-	$	-	$	6,598
Collectively Evaluated for Potential Impairment		161,674		100,260		8,906		52,552		76,242		3,099		402,733
	$	161,719	$	104,994	$	10,039	$	53,238	$	76,242	$	3,099	$	409,331
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	947	$	1,846	$	-	$	-	$	-	$	-	$	2,793
Collectively Evaluated for Potential Impairment		160,614		76,018		12,158		23,363		1,369		-		273,522
	$	161,561	$	77,864	$	12,158	$	23,363	$	1,369	$	-	$	276,315
Total Loans
Individually Evaluated for Impairment	$	992	$	6,580	$	1,133	$	686	$	-	$	-	$	9,391
Collectively Evaluated for Potential Impairment		322,288		176,278		21,064		75,915		77,611		3,099		676,255
	$	323,280	$	182,858	$	22,197	$	76,601	$	77,611	$	3,099	$	685,646

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Note 9 - Fair Value Disclosure

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Note 9. Fair Value Disclosure

FASB ASC 820 “Fair Value Measurement” defines fair value and provides the framework for measuring fair value and required disclosures about fair value measurements. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market for the asset or liability at the market date. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used in valuation methods to determine fair value.

The three levels of fair value hierarchy are as follows:

Level I –	Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets. These generally provide the most reliable evidence and are used to measure fair value whenever available.
Level II –	Fair value is based on significant inputs, other than Level I inputs, that are observable either directly or indirectly for substantially the full term of the asset through corroboration with observable market data. Level II inputs include quoted market prices in active markets for similar assets, quoted market prices in markets that are not active for identical or similar assets, and other observable inputs.
Level III –	Fair value would be based on significant unobservable inputs. Examples of valuation methodologies that would result in Level III classification include option pricing models, discounted cash flows, and other similar techniques.

This hierarchy requires the use of observable market data when available. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement.

The following table presents the financial assets measured at fair value on a recurring basis and reported on the Consolidated Statement of Financial Condition as of the dates indicated, by level within the fair value hierarchy. The majority of the Company’s securities are included in Level II of the fair value hierarchy. Fair values for Level II securities were primarily determined by a third party pricing service using both quoted prices for similar assets, when available, and model-based valuation techniques that derive fair value based on market-corroborated data, such as instruments with similar prepayment speeds and default interest rates. The standard inputs that are normally used include benchmark yields of like securities, reportable trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications.

		(Dollars in thousands)
	Valuation Technique	September 30, 2015		December 31, 2014
Available for Sales Securities:
U.S. Government Agencies	Level II	$	53,073	$	57,651
Obligations of States and Political Subdivisions	Level II		43,619		42,381
Mortgage-Backed Securities - Government-Sponsored Enterprises	Level II		3,648		4,273
Equity Securities - Mutual Funds	Level I		518		514
Equity Securities - Other	Level I		657		630
Total Available for Sale Securities		$	101,515	$	105,449

The following table presents the financial assets measured at fair value on a nonrecurring basis on the Consolidated Statement of Financial Condition as of the dates indicated by level within the fair value hierarchy. The table also presents the significant unobservable inputs used in the fair value measurements. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loans include quoted market prices for identical assets classified as Level I inputs or observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs.

		(Dollars in thousands)
		Fair Value at						Significant
Financial Asset	Valuation Technique	September 30, 2015		December 31, 2014		Valuation Technique	Significant Unobservable Inputs	Unobservable  Input Value
Impaired Loans	Level III	$	1,105	$	1,959	Market Comparable Properties	Marketability Discount	10%	to	30%	(1)
OREO	Level III		431		77	Market Comparable Properties	Marketability Discount	10%	to	50%	(1)

⁽¹⁾ Range includes discounts taken since appraisal and estimated values.

Impaired loans are evaluated when the loan is identified as impaired and valued at the lower of cost or fair value at that time. Fair value is measured based on the value of the collateral securing these loans and is classified as Level III in the fair value hierarchy. At September 30, 2015 and December 31, 2014, the fair value of impaired loans consists of the loan balance of $1.6 million and $2.8 million, respectively, less their specific valuation allowances of $540,000 and $873,000, respectively.

Financial instruments are defined as cash, evidence of an ownership in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms.

Fair value 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. If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses and other factors, as determined through various option pricing formulas or simulation modeling. As many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the estimated fair values are based may have significant impact on the resulting estimated fair values.

As certain assets such as deferred tax assets and premises and equipment are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Company.

The Company employs simulation modeling in determining the estimated fair value of financial instruments for which quoted market prices are not available, based upon the following assumptions:

Cash and Due From Banks, Restricted Stock, Bank-Owned Life Insurance, Accrued Interest Receivable, Short-Term Borrowings, and Accrued Interest Payable

The fair value is equal to the current carrying value.

Investment Securities

The fair value of investment securities is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted prices.

Loans Receivable

For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans and other consumer loans are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics. Fair values for other loans are estimated using discounted cash flow analyses, using market interest rates for comparable loans. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable.

Deposit Liabilities

The fair values disclosed for demand deposits, are, by definition, equal to the amount payable on demand at the reporting date. The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits.

Borrowed Funds

Fair values of borrowed funds are estimated using discounted cash flow analyses based on current market rates for similar types of borrowing arrangements.

Commitments to Extend Credit

These financial instruments are generally not subject to sale and estimated fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment or letter of credit, and the fair value determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure. The contractual amounts of unfunded commitments and letters of credit are presented in Note 8.

The following table presents the estimated fair values of the Company’s financial instruments at the dates indicated.

		(Dollars in thousands)
		September 30, 2015				December 31, 2014
	Valuation Method Used	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and Due From Banks:
Interest Bearing	Level I	$	4,577	$	4,577	$	5,933	$	5,933
Non-Interest Bearing	Level I		10,887		10,887		5,818		5,818
Investment Securities:
Available for Sale	See Above		101,515		101,515		105,449		105,449
Held-to-Maturity	Level II		-		-		504		504
Loans, Net	Level III		661,225		679,177		680,451		695,844
Restricted Stock	Level II		2,651		2,651		3,390		3,390
Bank-Owned Life Insurance	Level II		18,089		18,089		17,735		17,735
Accrued Interest Receivable	Level II		2,267		2,267		2,535		2,535
Financial Liabilities:
Deposits	Level II		689,946		690,455		697,494		698,418
Short-term Borrowings	Level II		27,908		27,908		46,684		46,684
Other Borrowed Funds	Level III		15,000		15,061		15,136		15,305
Accrued Interest Payable	Level II		312		312		348		348

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Note 5 - Deposits

9 Months Ended

Sep. 30, 2015

Disclosure Text Block [Abstract]

Deposit Liabilities Disclosures [Text Block]

Note 5. Deposits

The following table shows the maturities of time deposits for the next five years and beyond at the date indicated (dollars in thousands).

Maturity Period:	September 30, 2015
One Year or Less	$	62,907
Over One Through Two Years		28,915
Over Two Through Three Years		16,342
Over Three Through Four Years		11,628
Over Four Through Five Years		17,579
Over Five Years		11,008
Total	$	148,379

The balance in time deposits that meet or exceed the FDIC insurance limit of $250,000 totaled $33.1 million and $26.9 million as of September 30, 2015 and December 31, 2014, respectively.

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Note 3 - Investment Securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 3. Investment Securities

The following table presents the amortized cost and fair value of investment securities available-for-sale at the dates indicated:

	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government Agencies	$	52,724	$	352	$	(3	)	$	53,073
Obligations of States and Political Subdivisions		42,865		829		(75	)		43,619
Mortgage-Backed Securities - Government-Sponsored Enterprises		3,593		55		-			3,648
Equity Securities - Mutual Funds		500		18		-			518
Equity Securities - Other		600		61		(4	)		657
Total	$	100,282	$	1,315	$	(82	)	$	101,515

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government Agencies	$	57,669	$	139	$	(157	)	$	57,651
Obligations of States and Political Subdivisions		41,611		886		(116	)		42,381
Mortgage-Backed Securities - Government-Sponsored Enterprises		4,240		33		-			4,273
Equity Securities - Mutual Funds		500		14		-			514
Equity Securities - Other		573		58		(1	)		630
Total	$	104,593	$	1,130	$	(274	)	$	105,449

The following table presents the amortized cost and fair value of investment securities held-to-maturity at the date indicated:

	(Dollars in thousands)
	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Obligations of States and Political Subdivisions	$	504	$	-	$	-	$	504

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at the dates indicated:

	(Dollars in thousands)
	September 30, 2015
	Less than 12 months							12 Months or Greater							Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses
U.S. Government Agencies		1	$	1,018	$	(3	)		-	$	-	$	-			1	$	1,018	$	(3	)
Obligations of States and Political Subdivisions		12		7,024		(45	)		9		5,368		(30	)		21		12,392		(75	)
Equity Securities - Other		2		100		(4	)		-		-		-			2		100		(4	)
Total		15	$	8,142	$	(52	)		9	$	5,368	$	(30	)		24	$	13,510	$	(82	)

	December 31, 2014
	Less than 12 months							12 Months or Greater							Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses			Number of Securities		Fair Value		Gross Unrealized Losses
U.S. Government Agencies		10	$	26,101	$	(144	)		1	$	2,987	$	(13	)		11	$	29,088	$	(157	)
Obligations of States and Political Subdivisions		5		2,123		(9	)		22		13,590		(107	)		27		15,713		(116	)
Equity Securities - Other		1		48		(1	)		-		-		-			1		48		(1	)
Total		16	$	28,272	$	(154	)		23	$	16,577	$	(120	)		39	$	44,849	$	(274	)

For debt securities, the Company does not believe any individual unrealized loss as of September 30, 2015 and December 31, 2014 represents an other-than-temporary impairment. The Company performs a review of the entire securities portfolio on a quarterly basis to identify securities that may indicate an other-than-temporary impairment. The Company’s management considers the length of time and the extent to which the fair value has been less than cost, and the financial condition of the issuer. The securities that are temporarily impaired at September 30, 2015 and December 31, 2014 relate principally to changes in interest rates subsequent to the acquisition of the specific securities. The Company does not intend to sell or it is not more likely than not that it will be required to sell any of the securities in an unrealized loss position before recovery of its amortized cost or maturity of the security.

The following table presents the scheduled maturities of investment securities as of the date indicated:

	(Dollars in thousands)
	September 30, 2015
	Available-for-Sale
	Amortized Cost		Fair Value
Due in One Year or Less	$	2,577	$	2,618
Due after One Year through Five Years		37,259		37,574
Due after Five Years through Ten Years		49,424		49,950
Due after Ten Years		11,022		11,373
Total	$	100,282	$	101,515

Equity Securities – Mutual Funds and Equity Securities – Other do not have a scheduled maturity date, but have been included in the Due After Ten Years category.

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Note 4 - Loans and Related Allowance for Loan Loss

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 4. Loans and Related Allowance for Loan Loss

The Company’s loan portfolio is made up of four segments: real estate loans, commercial and industrial loans, consumer loans and other loans. These segments are further segregated between loans accounted for under the amortized cost method (“Originated Loans”) and acquired loans that were originally recorded at fair value with no carryover of the related pre-merger allowance for loan losses (“Loans Acquired at Fair Value”). The following table presents the major classifications of loans as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015						December 31, 2014
	Amount			Percent			Amount			Percent
Originated Loans
Real Estate:
Residential	$	164,362			35.8	%	$	161,719			39.4	%
Commercial		124,786			27.2			104,994			25.7
Construction		14,200			3.1			10,039			2.5
Commercial and Industrial		52,725			11.5			53,238			13.0
Consumer		98,044			21.4			76,242			18.6
Other		4,671			1.0			3,099			0.8
Total Originated Loans		458,788			100.0	%		409,331			100.0	%
Allowance for Loan Losses		(5,888	)					(5,195	)
Loans, Net	$	452,900					$	404,136
Loans Acquired at Fair Value
Real Estate:
Residential	$	109,078			52.4	%	$	161,561			58.4	%
Commercial		77,296			37.1			77,864			28.2
Construction		4,583			2.2			12,158			4.4
Commercial and Industrial		16,743			8.0			23,363			8.5
Consumer		625			0.3			1,369			0.5
Total Loans Acquired at Fair Value	$	208,325			100.0	%	$	276,315			100.0	%
Total Loans
Real Estate:
Residential	$	273,440			35.8	%	$	323,280			39.4	%
Commercial		202,082			27.2			182,858			25.7
Construction		18,783			3.1			22,197			2.5
Commercial and Industrial		69,468			11.5			76,601			13.0
Consumer		98,669			21.4			77,611			18.6
Other		4,671			1.0			3,099			0.8
Total Loans		667,113			100.0	%		685,646			100.0	%
Allowance for Loan Losses		(5,888	)					(5,195	)
Loans, Net	$	661,225					$	680,451

Total unamortized net deferred loan fees were $667,000 and $322,000 at September 30, 2015 and December 31, 2014, respectively.

Real estate loans serviced for others, which are not included in the Consolidated Statement of Financial Condition, totaled $70.0 million and $62.3 million at September 30, 2015 and December 31, 2014, respectively.

The following table presents loans summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of the dates indicated. At September 30, 2015 and December 31, 2014, there were no loans in the criticized category of Loss within the internal risk rating system.

	(Dollars in thousands)
	September 30, 2015
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	163,766	$	227	$	364	$	5	$	164,362
Commercial		112,999		4,529		6,176		1,082		124,786
Construction		13,194		744		-		262		14,200
Commercial and Industrial		48,936		2,177		1,612		-		52,725
Consumer		98,004		-		40		-		98,044
Other		4,671		-		-		-		4,671
Total Originated Loans	$	441,570	$	7,677	$	8,192	$	1,349	$	458,788
Loans Acquired at Fair Value
Real Estate:
Residential	$	106,060	$	-	$	3,018	$	-	$	109,078
Commercial		70,424		4,342		2,530		-		77,296
Construction		4,583		-		-		-		4,583
Commercial and Industrial		15,501		1,200		42		-		16,743
Consumer		625		-		-		-		625
Total Loans Acquired at Fair Value	$	197,193	$	5,542	$	5,590	$	-	$	208,325
Total Loans
Real Estate:
Residential	$	269,826	$	227	$	3,382	$	5	$	273,440
Commercial		183,423		8,871		8,706		1,082		202,082
Construction		17,777		744		-		262		18,783
Commercial and Industrial		64,437		3,377		1,654		-		69,468
Consumer		98,629		-		40		-		98,669
Other		4,671		-		-		-		4,671
Total Loans	$	638,763	$	13,219	$	13,782	$	1,349	$	667,113

	December 31, 2014
	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans
Real Estate:
Residential	$	161,191	$	194	$	315	$	19	$	161,719
Commercial		89,721		10,761		3,820		692		104,994
Construction		8,805		101		789		344		10,039
Commercial and Industrial		49,612		2,941		383		302		53,238
Consumer		76,238		-		4		-		76,242
Other		3,099		-		-		-		3,099
Total Originated Loans	$	388,666	$	13,997	$	5,311	$	1,357	$	409,331
Loans Acquired at Fair Value
Real Estate:
Residential	$	159,633	$	-	$	1,928	$	-	$	161,561
Commercial		73,280		2,429		2,155		-		77,864
Construction		12,158		-		-		-		12,158
Commercial and Industrial		21,913		1,450		-		-		23,363
Consumer		1,369		-		-		-		1,369
Total Loans Acquired at Fair Value	$	268,353	$	3,879	$	4,083	$	-	$	276,315
Total Loans
Real Estate:
Residential	$	320,824	$	194	$	2,243	$	19	$	323,280
Commercial		163,001		13,190		5,975		692		182,858
Construction		20,963		101		789		344		22,197
Commercial and Industrial		71,525		4,391		383		302		76,601
Consumer		77,607		-		4		-		77,611
Other		3,099		-		-		-		3,099
Total Loans	$	657,019	$	17,876	$	9,394	$	1,357	$	685,646

The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of the dates indicated.

	September 30, 2015
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	163,613	$	107	$	274	$	-	$	381	$	368	$	164,362
Commercial		121,889		343		-		-		343		2,554		124,786
Construction		13,938		-		-		-		-		262		14,200
Commercial and Industrial		52,691		34		-		-		34		-		52,725
Consumer		97,570		364		70		-		434		40		98,044
Other		4,671		-		-		-		-		-		4,671
Total Originated Loans	$	454,372	$	848	$	344	$	-	$	1,192	$	3,224	$	458,788
Loans Acquired at Fair Value
Real Estate:
Residential	$	106,515	$	14	$	408	$	54	$	476	$	2,087	$	109,078
Commercial		75,995		210		671		-		881		420		77,296
Construction		4,583		-		-		-		-		-		4,583
Commercial and Industrial		16,685		-		15		43		58		-		16,743
Consumer		565		-		5		55		60		-		625
Total Loans Acquired at Fair Value	$	204,343	$	224	$	1,099	$	152	$	1,475	$	2,507	$	208,325
Total Loans
Real Estate:
Residential	$	270,128	$	121	$	682	$	54	$	857	$	2,455	$	273,440
Commercial		197,884		553		671		-		1,224		2,974		202,082
Construction		18,521		-		-		-		-		262		18,783
Commercial and Industrial		69,376		34		15		43		92		-		69,468
Consumer		98,135		364		75		55		494		40		98,669
Other		4,671		-		-		-		-		-		4,671
Total Loans	$	658,715	$	1,072	$	1,443	$	152	$	2,667	$	5,731	$	667,113

	December 31, 2014
	Loans Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due		Total Past Due		Non- Accrual		Total Loans
Originated Loans
Real Estate:
Residential	$	161,145	$	249	$	16	$	-	$	265	$	309	$	161,719
Commercial		102,016		2,397		-		-		2,397		581		104,994
Construction		9,695		-		-		-		-		344		10,039
Commercial and Industrial		53,234		-		-		-		-		4		53,238
Consumer		75,839		369		24		10		403		-		76,242
Other		3,099		-		-		-		-		-		3,099
Total Originated Loans	$	405,028	$	3,015	$	40	$	10	$	3,065	$	1,238	$	409,331
Loans Acquired at Fair Value
Real Estate:
Residential	$	158,576	$	1,364	$	18	$	369	$	1,751	$	1,234	$	161,561
Commercial		77,252		128		-		-		128		484		77,864
Construction		12,158		-		-		-		-		-		12,158
Commercial and Industrial		23,356		7		-		-		7		-		23,363
Consumer		1,341		28		-		-		28		-		1,369
Total Loans Acquired at Fair Value	$	272,683	$	1,527	$	18	$	369	$	1,914	$	1,718	$	276,315
Total Loans
Real Estate:
Residential	$	319,721	$	1,613	$	34	$	369	$	2,016	$	1,543	$	323,280
Commercial		179,268		2,525		-		-		2,525		1,065		182,858
Construction		21,853		-		-		-		-		344		22,197
Commercial and Industrial		76,590		7		-		-		7		4		76,601
Consumer		77,180		397		24		10		431		-		77,611
Other		3,099		-		-		-		-		-		3,099
Total Loans	$	677,711	$	4,542	$	58	$	379	$	4,979	$	2,956	$	685,646

The following table sets forth the amounts and categories of our nonperforming assets at the dates indicated. Included in nonperforming loans and assets are troubled debt restructurings (“TDRs”), which are loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties. Nonaccrual TDRs are included in their specific loan category in the nonaccrual loans section.

	(Dollars in Thousands)
	September 30,  2015			December 31,  2014
Nonaccrual Loans:
Real Estate:
Residential	$	2,455		$	1,543
Commercial		2,974			1,065
Construction		262			344
Commercial and Industrial		-			4
Consumer		40			-
Total Nonaccrual Loans		5,731			2,956
Accruing Loans Past Due 90 Days or More:
Real Estate:
Residential		54			369
Commercial and Industrial		43			-
Consumer		55			10
Total Accruing Loans 90 Days or More Past Due		152			379
Total Nonaccrual Loans and Accruing Loans 90 Days or More Past Due		5,883			3,335
Troubled Debt Restructurings, Accruing:
Originated Loans:
Real Estate - Commercial		1,116			246
Commercial and Industrial		7			310
Total Originated Loans		1,123			556
Loans Acquired at Fair Value:
Real Estate - Residential		1,306			1,337
Real Estate - Commercial		1,521			1,800
Total Loans Acquired at Fair Value		2,827			3,137
Total Troubled Debt Restructurings, Accruing		3,950			3,693
Total Nonperforming Loans		9,833			7,028
Real Estate Owned:
Residential		151			104
Other		174			174
Total Real Estate Owned		325			278
Total Nonperforming Assets	$	10,158		$	7,306
Nonperforming Loans to Total Loans		1.47	%		1.03	%
Nonperforming Assets to Total Assets		1.23			0.86

The recorded investment of residential real estate loans for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction was $2.8 million and $2.7 million at September 30, 2015 and December 31, 2014, respectively.

TDRs typically are the result of our loss mitigation activities whereby concessions are granted to minimize loss and avoid foreclosure or repossession of collateral. The concessions granted for the TDRs in our portfolio primarily consist of, but are not limited to, modification of payment or other terms, temporary rate modification and extension of maturity date. Loans classified as TDRs consisted of 12 loans totaling $4.2 million and 13 loans totaling $4.0 million at September 30, 2015 and December 31, 2014, respectively. Originated loans classified as TDRs consisted of 4 loans totaling $1.4 million and $830,000, respectively, at September 30, 2015 and December 31, 2014. Loans acquired at fair value as TDRs consisted of 8 loans totaling $2.8 million and 9 loans totaling $3.1 million at September 30, 2015 and December 31, 2014, respectively.

During the nine months ended September 30, 2015, one commercial loan previously identified as an originated TDR and two other commercial loans were consolidated into one loan in a new TDR transaction. In addition, two commercial loans previously identified as originated TDRs were refinanced in new TDR transactions. During the three and nine months ended September 30, 2015, one commercial TDR acquired at fair value paid off. No TDRs have subsequently defaulted during the three or nine months ended September 30, 2015 and 2014, respectively.

The following table presents information at the time of modification related to loans modified as TDRs during the periods indicated.

	Nine Months Ended September 30, 2015
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Commercial		2	$	912	$	1,135	$	108
Total		2	$	912	$	1,135	$	108

	Three and Nine Months Ended September 30, 2014
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Related Allowance
Originated Loans
Real Estate
Commercial		1	$	9	$	9	$	-
Total		1	$	9	$	9	$	-

The following table presents a summary of the loans considered to be impaired as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Residential	$	6	$	-	$	18	$	16	$	1
Commercial		6,246		-		6,246		6,374		173
Construction		262		-		262		311		-
Commercial and Industrial		1,406		-		1,406		1,409		43
Total With No Related Allowance Recorded	$	7,920	$	-	$	7,932	$	8,110	$	217
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,306	$	-	$	1,306	$	1,320	$	50
Commercial		3,107		-		3,166		3,345		120
Commercial and Industrial		42		-		42		47		1
Total With No Related Allowance Recorded	$	4,455	$	-	$	4,514	$	4,712	$	171
Total Loans
Real Estate:
Residential	$	1,312	$	-	$	1,324	$	1,336	$	51
Commercial		9,353		-		9,412		9,719		293
Construction		262		-		262		311		-
Commercial and Industrial		1,448		-		1,448		1,456		44
Total With No Related Allowance Recorded	$	12,375	$	-	$	12,446	$	12,822	$	388
With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,432	$	405	$	1,451	$	1,456	$	23
Commercial and Industrial		213		135		213		239		10
Total With A Related Allowance Recorded	$	1,645	$	540	$	1,664	$	1,695	$	33
Total Impaired Loans:
Originated Loans
Real Estate:
Residential	$	6	$	-	$	18	$	16	$	1
Commercial		7,678		405		7,697		7,830		196
Construction		262		-		262		311		-
Commercial and Industrial		1,619		135		1,619		1,648		53
Total Impaired Loans	$	9,565	$	540	$	9,596	$	9,805	$	250
Loans Acquired at Fair Value
Real Estate:
Residential	$	1,306	$	-	$	1,306	$	1,320	$	50
Commercial		3,107		-		3,166		3,345		120
Commercial and Industrial		42		-		42		47		1
Total Impaired Loans	$	4,455	$	-	$	4,514	$	4,712	$	171
Total Loans
Real Estate:
Residential	$	1,312	$	-	$	1,324	$	1,336	$	51
Commercial		10,785		405		10,863		11,175		316
Construction		262		-		262		311		-
Commercial and Industrial		1,661		135		1,661		1,695		54
Total Impaired Loans	$	14,020	$	540	$	14,110	$	14,517	$	421

	December 31, 2014
	Recorded Investment		Related Allowance		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance Recorded:
Originated Loans
Real Estate:
Residential	$	45	$	-	$	70	$	55	$	-
Commercial		3,352		-		3,366		4,300		149
Commercial and Industrial		369		-		369		426		17
Total With No Related Allowance Recorded	$	3,766	$	-	$	3,805	$	4,781	$	166
Loans Acquired at Fair Value
Real Estate:
Residential	$	947	$	-	$	947	$	957	$	51
Commercial		1,846		-		1,885		1,926		93
Total With No Related Allowance Recorded	$	2,793	$	-	$	2,832	$	2,883	$	144
Total Loans
Real Estate:
Residential	$	992	$	-	$	1,017	$	1,012	$	51
Commercial		5,198		-		5,251		6,226		242
Commercial and Industrial		369		-		369		426		17
Total With No Related Allowance Recorded	$	6,559	$	-	$	6,637	$	7,664	$	310
With A Related Allowance Recorded:
Originated Loans
Real Estate:
Commercial	$	1,382	$	519	$	1,389	$	1,427	$	51
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		317		254		317		319		17
Total With A Related Allowance Recorded	$	2,832	$	873	$	2,839	$	3,112	$	109
Total Loans
Originated Loans
Real Estate:
Residential	$	45	$	-	$	70	$	55	$	-
Commercial		4,734		519		4,755		5,727		200
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		686		254		686		745		34
Total Impaired Loans	$	6,598	$	873	$	6,644	$	7,893	$	275
Loans Acquired at Fair Value
Real Estate:
Residential	$	947	$	-	$	947	$	957	$	51
Commercial		1,846		-		1,885		1,926		93
Total Impaired Loans	$	2,793	$	-	$	2,832	$	2,883	$	144
Total Loans
Real Estate:
Residential	$	992	$	-	$	1,017	$	1,012	$	51
Commercial		6,580		519		6,640		7,653		293
Construction		1,133		100		1,133		1,366		41
Commercial and Industrial		686		254		686		745		34
Total Impaired Loans	$	9,391	$	873	$	9,476	$	10,776	$	419

The following table presents the activity in the allowance for loan losses summarized by major classifications and segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for potential impairment for the periods indicated.

	(Dollars in thousands)
	Real Estate Residential			Real Estate Commercial			Real Estate Construction			Commercial and Industrial			Consumer			Unallocated			Total
June 30, 2015	$	1,667		$	1,746		$	87		$	917		$	1,338		$	(69	)	$	5,686
Charge-offs		(28	)		-			-			-			(114	)		-			(142	)
Recoveries		4			1			-			-			39			-			44
Provision		(87	)		135			28			(94	)		241			77			300
September 30, 2015	$	1,556		$	1,882		$	115		$	823		$	1,504		$	8		$	5,888
December 31, 2014	$	2,690		$	582		$	122		$	684		$	1,015		$	102		$	5,195
Charge-offs		(139	)		(18	)		-			-			(230	)		-			(387	)
Recoveries		9			4			-			10			82			-			105
Provision		(1,004	)		1,314			(7	)		129			637			(94	)		975
September 30, 2015	$	1,556		$	1,882		$	115		$	823		$	1,504		$	8		$	5,888
Originated Loans
Individually Evaluated for Impairment	$	-		$	405		$	-		$	135		$	-		$	-		$	540
Collectively Evaluated for Potential Impairment	$	1,556		$	1,477		$	115		$	688		$	1,504		$	8		$	5,348

	Real Estate Residential			Real Estate Commercial			Real Estate Construction			Commercial and Industrial			Consumer			Unallocated			Total
June 30, 2014	$	1,478		$	1,712		$	293		$	1,027		$	571		$	259		$	5,340
Charge-offs		-			-			-			-			(36	)		-			(36	)
Recoveries		1			-			-			2			30			-			33
Provision		10			(2	)		(64	)		(55	)		265			(154	)		-
September 30, 2014	$	1,489		$	1,710		$	229		$	974		$	830		$	105		$	5,337
December 31, 2013	$	1,481		$	1,703		$	355		$	1,013		$	592		$	238		$	5,382
Charge-offs		(10	)		-			-			-			(103	)		-			(113	)
Recoveries		2			-			-			4			62			-			68
Provision		16			7			(126	)		(43	)		279			(133	)		-
September 30, 2014	$	1,489		$	1,710		$	229		$	974		$	830		$	105		$	5,337
Originated Loans
Individually Evaluated for Impairment	$	-		$	460		$	192		$	244		$	-		$	-		$	896
Collectively Evaluated for Potential Impairment	$	1,489		$	1,250		$	37		$	730		$	830		$	105		$	4,441

December 31, 2014	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Unallocated		Total
Originated Loans
Individually Evaluated for Impairment	$	-	$	519	$	100	$	254	$	-	$	-	$	873
Collectively Evaluated for Potential Impairment	$	2,690	$	63	$	22	$	430	$	1,015	$	102	$	4,322

The following table presents changes in the accretable discount on the loans acquired at fair value for the dates indicated.

	Accretable Discount
Balance at December 31, 2014	$	4,359
Accretable yield		(839	)
Nonaccretable premium		78
Balance at September 30, 2015	$	3,598

The following table presents the major classifications of loans summarized by individually evaluated for impairment and collectively evaluated for potential impairment as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	6	$	7,678	$	262	$	1,619	$	-	$	-	$	9,565
Collectively Evaluated for Potential Impairment		164,356		117,108		13,938		51,106		98,044		4,671		449,223
	$	164,362	$	124,786	$	14,200	$	52,725	$	98,044	$	4,671	$	458,788
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	1,306	$	3,107	$	-	$	42	$	-	$	-	$	4,455
Collectively Evaluated for Potential Impairment		107,772		74,189		4,583		16,701		625		-		203,870
	$	109,078	$	77,296	$	4,583	$	16,743	$	625	$	-	$	208,325
Total Loans
Individually Evaluated for Impairment	$	1,312	$	10,785	$	262	$	1,661	$	-	$	-	$	14,020
Collectively Evaluated for Potential Impairment		272,128		191,297		18,521		67,807		98,669		4,671		653,093
	$	273,440	$	202,082	$	18,783	$	69,468	$	98,669	$	4,671	$	667,113

	December 31, 2014
	Real Estate Residential		Real Estate Commercial		Real Estate Construction		Commercial and Industrial		Consumer		Other		Total
Originated Loans
Individually Evaluated for Impairment	$	45	$	4,734	$	1,133	$	686	$	-	$	-	$	6,598
Collectively Evaluated for Potential Impairment		161,674		100,260		8,906		52,552		76,242		3,099		402,733
	$	161,719	$	104,994	$	10,039	$	53,238	$	76,242	$	3,099	$	409,331
Loans Acquired at Fair Value
Individually Evaluated for Impairment	$	947	$	1,846	$	-	$	-	$	-	$	-	$	2,793
Collectively Evaluated for Potential Impairment		160,614		76,018		12,158		23,363		1,369		-		273,522
	$	161,561	$	77,864	$	12,158	$	23,363	$	1,369	$	-	$	276,315
Total Loans
Individually Evaluated for Impairment	$	992	$	6,580	$	1,133	$	686	$	-	$	-	$	9,391
Collectively Evaluated for Potential Impairment		322,288		176,278		21,064		75,915		77,611		3,099		676,255
	$	323,280	$	182,858	$	22,197	$	76,601	$	77,611	$	3,099	$	685,646

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Note 6 - Short-term Borrowings

9 Months Ended

Sep. 30, 2015

Disclosure Text Block [Abstract]

Short-term Debt [Text Block]

Note 6. Short-Term Borrowings

The following table sets forth the components of short-term borrowings as of the dates indicated.

	(Dollars in thousands)
	September 30, 2015					December 31, 2014
	Amount		Weighted Average Rate			Amount		Weighted Average Rate
Short-term Borrowings
Federal Funds Purchased:
Average Balance Outstanding During the Period	$	341		0.39	%	$	375		0.46	%
Maximum Amount Outstanding at any Month End		100					1,850
FHLB Borrowings:
Balance at Period End		-		-			25,800		0.32
Average Balance Outstanding During the Period		7,531		0.36			4,283		0.31
Maximum Amount Outstanding at any Month End		30,950					25,800
Securities Sold Under Agreements to Repurchase:
Balance at Period End		27,908		0.18			20,884		0.17
Average Balance Outstanding During the Period		22,956		0.24			17,525		0.26
Maximum Amount Outstanding at any Month End		27,908					25,893
Securities Collaterizing the Agreements at Period-End:
Carrying Value		33,034					23,244
Market Value		33,289					23,243

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Note 3 - Investment Securities (Details) - Gross Unrealized Losses and Fair Value by Investment Category and Continuous Unrealized Loss Position $ in Thousands	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Note 3 - Investment Securities (Details) - Gross Unrealized Losses and Fair Value by Investment Category and Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Number of Securities	15	16
Less than Twelve Months, Fair Value	$ 8,142	$ 28,272
Less than Twelve Months, Gross Unrealized Losses	$ (52)	$ (154)
Twelve Months or More, Number of Securities	9	23
Twelve Months or More , Fair Value	$ 5,368	$ 16,577
Twelve Months or More , Gross Unrealized Losses	$ (30)	$ (120)
Number of Securities, Total	24	39
Fair Value , Total	$ 13,510	$ 44,849
Gross Unrealized Losses, Total	$ (82)	$ (274)
US Government Agencies Debt Securities [Member]
Note 3 - Investment Securities (Details) - Gross Unrealized Losses and Fair Value by Investment Category and Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Number of Securities	1	10
Less than Twelve Months, Fair Value	$ 1,018	$ 26,101
Less than Twelve Months, Gross Unrealized Losses	$ (3)	$ (144)
Twelve Months or More, Number of Securities		1
Twelve Months or More , Fair Value		$ 2,987
Twelve Months or More , Gross Unrealized Losses		$ (13)
Number of Securities, Total	1	11
Fair Value , Total	$ 1,018	$ 29,088
Gross Unrealized Losses, Total	$ (3)	$ (157)
US States and Political Subdivisions Debt Securities [Member]
Note 3 - Investment Securities (Details) - Gross Unrealized Losses and Fair Value by Investment Category and Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Number of Securities	12	5
Less than Twelve Months, Fair Value	$ 7,024	$ 2,123
Less than Twelve Months, Gross Unrealized Losses	$ (45)	$ (9)
Twelve Months or More, Number of Securities	9	22
Twelve Months or More , Fair Value	$ 5,368	$ 13,590
Twelve Months or More , Gross Unrealized Losses	$ (30)	$ (107)
Number of Securities, Total	21	27
Fair Value , Total	$ 12,392	$ 15,713
Gross Unrealized Losses, Total	$ (75)	$ (116)
Equity Securities [Member]
Note 3 - Investment Securities (Details) - Gross Unrealized Losses and Fair Value by Investment Category and Continuous Unrealized Loss Position [Line Items]
Less than Twelve Months, Number of Securities	2	1
Less than Twelve Months, Fair Value	$ 100	$ 48
Less than Twelve Months, Gross Unrealized Losses	$ (4)	$ (1)
Number of Securities, Total	2	1
Fair Value , Total	$ 100	$ 48
Gross Unrealized Losses, Total	$ (4)	$ (1)

XML

Note 8 - Commitments and Contingent Liabilities (Details) - Unused and Available Credit Balances of Financial Instruments Whose Contracts Represent Credit Risk - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments	$ 127,072	$ 113,221
Financial Standby Letter of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments	21,229	18,260
Performance Guarantee [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments	2,224	2,986
Construction Mortgages [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments	25,334	12,241
Personal Line Of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments	5,847	5,675
Overdraft Protection Lines [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments	6,158	6,505
Home Equity Lines of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments	14,237	13,253
Commercial Lines Of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments	$ 52,043	$ 54,301

XML

Note 2 - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Weighted-Average Common Shares Outstanding		4,363,346			2,639,097			4,363,346			2,639,866
Average Treasury Stock Shares		(291,884	)		(290,774	)		(291,884	)		(290,910	)
Weighted-Average Common Shares and Common Stock Equivalents Used to Calculate Basic Earnings Per Share		4,071,462			2,348,323			4,071,462			2,348,956
Additional Common Stock Equivalents (Stock Options) Used to Calculate Diluted Earnings Per Share		-			-			-			5,528
Weighted-Average Common Shares and Common Stock Equivalents Used to Calculate Diluted Earnings Per Share		4,071,462			2,348,323			4,071,462			2,354,484
Earnings per share:
Basic	$	0.52		$	0.32		$	1.64		$	1.09
Diluted		0.52			0.32			1.64			1.09

XML

Note 7 - Other Borrowed Funds (Tables)

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

	(Dollars in thousands)
	September 30, 2015				December 31, 2014
	Amount		Weighted Average Rate		Amount		Weighted Average Rate
Due in One Year	$	-		-%	$	15,136		3.78	%
Due After One Year to Two Years		3,500		0.94		-		-
Due After Two Years to Three Years		3,500		1.35		-		-
Due After Three Years to Four Years		3,000		1.68		-		-
Due After Four Years to Five Years		3,000		1.88		-		-
Due After Five Years		2,000		2.12		-		-
Total	$	15,000		1.53	$	15,136		3.78

XML

Note 7 - Other Borrowed Funds (Details) - USD ($) $ in Millions	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Note 7 - Other Borrowed Funds (Details) [Line Items]
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available	$ 297.1
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds	20.0		$ 20.0
Federal Reserve Bank [Member]
Note 7 - Other Borrowed Funds (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 40.0
Long-term Line of Credit	0.0		$ 0.0
Various Banks [Member]
Note 7 - Other Borrowed Funds (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 40.0

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Note 4 - Loans and Related Allowance for Loan Loss (Details) - Loans Classified as TDRs $ in Thousands			9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)
Real Estate
Number of contracts	12	13	2	1
Pre- modification outstanding recorded investment			$ 912	$ 9
Post- modification outstanding recorded investment			1,135	$ 9
Related allowance			$ 108
Originated Loans [Member]
Real Estate
Number of contracts	4	4
Commercial Portfolio Segment [Member]
Real Estate
Number of contracts			2
Commercial Portfolio Segment [Member] | Originated Loans [Member]
Real Estate
Number of contracts			1
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate
Number of contracts			2	1
Pre- modification outstanding recorded investment			$ 912	$ 9
Post- modification outstanding recorded investment			1,135	$ 9
Related allowance			$ 108

XML

Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net Income		$ 2,128	$ 739	$ 6,663	$ 2,557
Other Comprehensive Income (Loss)
Unrealized Gains (Losses) on Available-for-Sale Securities Net of Income Tax of $151 and ($2) for the Three Months Ended September 30, 2015 and 2014, Respectively, and $128 and $659 for the Nine Months Ended September 30, 2015 and 2014, Respectively		$ 294	(4)	$ 249	1,279
Reclassification Adjustment for Gains on Securities Included in Net Income, Net of Tax of $12 for the Three and Nine Months Ended September 30, 2014, Respectively (1)	[1]		(23)		(23)
Other Comprehensive Income (Loss), Net of Income Tax		$ 294	(27)	$ 249	1,256
Total Comprehensive Income		$ 2,422	$ 712	$ 6,912	$ 3,813

[1] The gross amount of gains on securities of $35,000 for the three and nine months ended September 30, 2014, respectively, is reported as Net Gains on Sales of Investments on the Consolidated Statement of Income. The income tax effect is included in Income Taxes on the Consolidated Statement of Income.

XML

Consolidated Statement of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Interest credited to deposit accounts	$ 1,765	$ 1,251

XML

Note 8 - Commitments and Contingent Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]

	(Dollars in thousands)
	September 30, 2015		December 31, 2014
Standby Letters of Credit	$	21,229	$	18,260
Performance Letters of Credit		2,224		2,986
Construction Mortgages		25,334		12,241
Personal Lines of Credit		5,847		5,675
Overdraft Protection Lines		6,158		6,505
Home Equity Lines of Credit		14,237		13,253
Commercial Lines of Credit		52,043		54,301
	$	127,072	$	113,221

XML

Note 4 - Loans and Related Allowance for Loan Loss (Details) - Credit Quality Information - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Real Estate:
Loans receivable	$ 667,113	$ 685,646
Pass [Member]
Real Estate:
Loans receivable	638,763	657,019
Special Mention [Member]
Real Estate:
Loans receivable	13,219	17,876
Substandard [Member]
Real Estate:
Loans receivable	13,782	9,394
Doubtful [Member]
Real Estate:
Loans receivable	1,349	1,357
Originated Loans [Member]
Real Estate:
Loans receivable	458,788	409,331
Originated Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	441,570	388,666
Originated Loans [Member] | Special Mention [Member]
Real Estate:
Loans receivable	7,677	13,997
Originated Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	8,192	5,311
Originated Loans [Member] | Doubtful [Member]
Real Estate:
Loans receivable	1,349	1,357
Acquired Loans [Member]
Real Estate:
Loans receivable	208,325	276,315
Acquired Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	197,193	268,353
Acquired Loans [Member] | Special Mention [Member]
Real Estate:
Loans receivable	5,542	3,879
Acquired Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	5,590	4,083
Residential Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans receivable	273,440	323,280
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Pass [Member]
Real Estate:
Loans receivable	269,826	320,824
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Special Mention [Member]
Real Estate:
Loans receivable	227	194
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Substandard [Member]
Real Estate:
Loans receivable	3,382	2,243
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Doubtful [Member]
Real Estate:
Loans receivable	5	19
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	164,362	161,719
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	163,766	161,191
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Special Mention [Member]
Real Estate:
Loans receivable	227	194
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	364	315
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Doubtful [Member]
Real Estate:
Loans receivable	5	19
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	109,078	161,561
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	106,060	159,633
Residential Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	3,018	1,928
Commercial Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans receivable	202,082	182,858
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Pass [Member]
Real Estate:
Loans receivable	183,423	163,001
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Special Mention [Member]
Real Estate:
Loans receivable	8,871	13,190
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Substandard [Member]
Real Estate:
Loans receivable	8,706	5,975
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Doubtful [Member]
Real Estate:
Loans receivable	1,082	692
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	124,786	104,994
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	112,999	89,721
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Special Mention [Member]
Real Estate:
Loans receivable	4,529	10,761
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	6,176	3,820
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Doubtful [Member]
Real Estate:
Loans receivable	1,082	692
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	77,296	77,864
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	70,424	73,280
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Special Mention [Member]
Real Estate:
Loans receivable	4,342	2,429
Commercial Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	2,530	2,155
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member]
Real Estate:
Loans receivable	69,468	76,601
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Pass [Member]
Real Estate:
Loans receivable	64,437	71,525
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Special Mention [Member]
Real Estate:
Loans receivable	3,377	4,391
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Substandard [Member]
Real Estate:
Loans receivable	1,654	383
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Doubtful [Member]
Real Estate:
Loans receivable		302
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	52,725	53,238
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	48,936	49,612
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member] | Special Mention [Member]
Real Estate:
Loans receivable	2,177	2,941
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	1,612	383
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Originated Loans [Member] | Doubtful [Member]
Real Estate:
Loans receivable		302
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	16,743	23,363
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	15,501	21,913
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member] | Special Mention [Member]
Real Estate:
Loans receivable	1,200	1,450
Commercial Portfolio Segment [Member] | Commercial and Industrial Sector [Member] | Acquired Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	42
Construction Portfolio Segment [Member] | Real Estate Sector [Member]
Real Estate:
Loans receivable	18,783	22,197
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Pass [Member]
Real Estate:
Loans receivable	17,777	20,963
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Special Mention [Member]
Real Estate:
Loans receivable	744	101
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Substandard [Member]
Real Estate:
Loans receivable		789
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Doubtful [Member]
Real Estate:
Loans receivable	262	344
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	14,200	10,039
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	13,194	8,805
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Special Mention [Member]
Real Estate:
Loans receivable	744	101
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable		789
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Originated Loans [Member] | Doubtful [Member]
Real Estate:
Loans receivable	262	344
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	4,583	12,158
Construction Portfolio Segment [Member] | Real Estate Sector [Member] | Acquired Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	4,583	12,158
Consumer Portfolio Segment [Member]
Real Estate:
Loans receivable	98,669	77,611
Consumer Portfolio Segment [Member] | Pass [Member]
Real Estate:
Loans receivable	98,629	77,607
Consumer Portfolio Segment [Member] | Substandard [Member]
Real Estate:
Loans receivable	40	4
Consumer Portfolio Segment [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	98,044	76,242
Consumer Portfolio Segment [Member] | Originated Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	98,004	76,238
Consumer Portfolio Segment [Member] | Originated Loans [Member] | Substandard [Member]
Real Estate:
Loans receivable	40	4
Consumer Portfolio Segment [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	625	1,369
Consumer Portfolio Segment [Member] | Acquired Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	625	1,369
Unallocated Financing Receivables [Member]
Real Estate:
Loans receivable	4,671	3,099
Unallocated Financing Receivables [Member] | Pass [Member]
Real Estate:
Loans receivable	4,671	3,099
Unallocated Financing Receivables [Member] | Originated Loans [Member]
Real Estate:
Loans receivable	4,671	3,099
Unallocated Financing Receivables [Member] | Originated Loans [Member] | Pass [Member]
Real Estate:
Loans receivable	4,671	3,099
Unallocated Financing Receivables [Member] | Acquired Loans [Member]
Real Estate:
Loans receivable	$ 0	$ 0

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Accounting Policies, by Policy (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation and Basis of Presentation

The accompanying consolidated financial statements include the accounts of CB Financial Services, Inc. (“CB Financial”) and its wholly owned subsidiary, Community Bank, (the “Bank”), and the Bank’s wholly-owned subsidiary, Exchange Underwriters, Inc. (“Exchange Underwriters”). CB Financial and the Bank are collectively referred to as the “Company”. All intercompany transactions and balances have been eliminated in consolidation.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and income and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to determination of the allowance for losses on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, evaluation of securities for other-than-temporary impairment including related cash flow projections, goodwill impairment, and the valuation of deferred tax assets.

In the opinion of management, the accompanying unaudited interim financial statements include all adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations at the dates and for the periods presented. All of these adjustments are of a normal, recurring nature, and they are the only adjustments included in the accompanying unaudited interim financial statements. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Interim results are not necessarily indicative of results for a full year.

The Company evaluated the provisions of Accounting Standards Codification (“ASC”) Topic 280 and determined that segment reporting information related to Exchange Underwriters was not required to be presented because the segment comprises less than 10% of total interest and noninterest income and less than 10% of the combined assets of the Company.

The Company evaluated subsequent events through the date the consolidated financial statements were filed with the Securities and Exchange Commission and incorporated into the consolidated financial statements the effect of all material known events determined by ASC Topic 855, Subsequent Events, to be recognizable events.

Nature of Operations [Policy Text Block]

Nature of Operations

The Company derives substantially all its income from banking and bank-related services which include interest earnings on commercial, commercial mortgage, residential real estate and consumer loan financing, as well as interest earnings on investment securities and fees generated from deposit services to its customers. The Company provides banking services primarily to communities in Greene, Allegheny, Washington, Fayette, and Westmoreland Counties located in southwestern Pennsylvania. The Company also conducts insurance brokerage activities through Exchange Underwriters.

Finance, Loans and Leases Receivable, Policy [Policy Text Block]

Acquired Loans

Loans that were acquired in the merger with FedFirst Financial Corporation were recorded at fair value with no carryover of the related allowance for credit losses. The fair value of the acquired loans was estimated by management with the assistance of a third party valuation specialist.

The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. The nonaccretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require an evaluation to determine the need for an allowance for loan losses. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the nonaccretable discount which is then reclassified as accretable discount that is recognized into interest income over the remaining life of the loan using the interest method. The evaluation of the amount of future cash flows that is expected to be collected is performed in a similar manner as that used to determine our allowance for credit losses. Charge-offs of the principal amount on acquired loans would be first applied to the nonaccretable discount portion of the fair value adjustment.

Reclassification, Policy [Policy Text Block]

Reclassifications

Certain comparative amounts for the prior year have been reclassified to conform to the current year presentation. Such reclassifications did not affect net income or stockholders’ equity.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which establishes a comprehensive revenue recognition standard for virtually all industries under GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. ASU 2014-09 specifies that an entity shall recognize revenue when, or as, the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when, or as, the customer obtains control of the asset. Entities are required to disclose qualitative and quantitative information on the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, with early adoption not permitted. In July 2015, the FASB approved to defer for one year the effective date of this ASU to December 15, 2017 and to also allow entities to early adopt the standard, but not before December 31, 2016. The Company is evaluating the provisions of ASU 2014-09, but does not believe that its adoption will have a material impact on the Company’s financial condition and results of operations.

In January 2015, the FASB issued ASU 2015-01, Income Statement-Extraordinary and Unusual Items (Subtopic 225-20) – Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU 2015-01 eliminates the requirement in ASC Subtopic 225-20 to consider whether an underlying event or transaction is extraordinary, and if so, to separately present the item in the income statement net of tax, after income from continuing operations. Items that are either unusual in nature or infrequently occurring will continue to be reported as a separate component of income from continuing operations. Alternatively, these amounts may still be disclosed in the notes to the financial statements. The same requirement has been expanded to include items that are both unusual and infrequent. ASU 2015-01 is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted from the beginning of the fiscal year of adoption. The Company is evaluating the provisions of ASU 2015-01, but does not believe that its adoption will have a material impact on the Company’s financial condition and results of operations.