Note 11 - Income Taxes

3 Months Ended

Mar. 31, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

11. INCOME TAXES

The provision for income taxes was $0.1

million and $0.4 million for the three-month periods ended March 31, 2016 and 2015, respectively. The Company’s effective tax rate was 24.0% and 29.6% for the same periods. The effective tax rate is impacted by recurring permanent differences, such as those associated with bank-owned life insurance and tax-exempt investment and loan income.

The Company had a net deferred tax asset of $

7.5 million and $7.8 million as of March 31, 2016 and December 31, 2015, respectively. The reduction in the net deferred tax asset resulted primarily from the impact of changes in the fair value of securities available-for-sale.