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Note 7 - Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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

(dollars in thousands)	Total		(Level 1) Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs

March 31 , 201 7
Assets:

Collateralized mortgage obligations	$	217,616	$	-	$	217,616	$	-
Agency mortgage-backed securities		36,030		-		36,030		-
Municipal securities		27,640		-		27,640		-
Corporate bonds		64,281		-		61,257		3,024
Asset-backed securities		14,800		-		14,800		-
Trust Preferred Securities		1,961		-		-		1,961
Securities Available for Sale	$	362,328	$	-	$	357,343	$	4,985

Mortgage Loans Held for Sale	$	19,753	$	-	$	19,753	$	-
SBA Servicing Assets		5,298		-		-		5,298
Interest Rate Lock Commitments		831		-		831		-
Best Efforts Forward Loan Sales Commitments		3		-		3		-
Mandatory Forward Loan Sales Commitments		8		-		8		-

Liabilities:

Interest Rate Lock Commitments		7		-		7		-
Best Efforts Forward Loan Sales Commitments		270		-		270		-
Mandatory Forward Loan Sales Commitments		125		-		125		-

December 31, 201 6
Assets:

Collateralized mortgage obligations	$	224,765	$	-	$	224,765	$	-
Agency mortgage-backed securities		36,710		-		36,710		-
Municipal securities		26,547		-		26,547		-
Corporate bonds		64,748		-		61,777		2,971
Asset-backed securities		15,149		-		15,149		-
Trust Preferred Securities		1,820		-		-		1,820
Securities Available for Sale	$	369,739	$	-	$	364,948	$	4,791

Mortgage Loans Held for Sale	$	23,911	$	-	$	23,911	$	-
SBA Servicing Assets		5,352		-		-		5,352
Interest Rate Lock Commitments		439		-		439		-
Best Efforts Forward Loan Sales Commitments		103		-		103		-
Mandatory Forward Loan Sales Commitments		229		-		229		-

Liabilities:

Interest Rate Lock Commitments		55		-		55		-
Best Efforts Forward Loan Sales Commitments		125		-		125		-
Mandatory Forward Loan Sales Commitments		38		-		38		-

Schedule of Servicing Assets at Fair Value [Table Text Block]

	Three Months Ended March 31,
(dollars in thousands)	201 7			201 6

Beginning balance	$	5,352		$	4,886
Additions		211			242
Fair value adjustments		(265	)		(70	)
Ending balance	$	5,298		$	5,058

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

	Three Months Ended March 31, 2017				Three Months Ended March 31, 2016
Level 3 Investments Only (dollars in thousands)	Trust Preferred Securities		Corporate Bonds		Trust Preferred Securities			Corporate Bonds
Balance, January 1 st	$	1,820	$	2,971	$	1,883		$	2,834
Unrealized (losses) gains		141		53		(24	)		10
Paydowns		-		-		-			-
Proceeds from sales		-		-		-			-
Realized (losses) gains		-		-		-			-
Impairment charges on Level 3		-		-		(1	)		-
Balance, March 31 st	$	1,961	$	3,024	$	1,858		$	2,844

Fair Value Measurements, Nonrecurring [Table Text Block]

(dollars in thousands)	Total		(Level 1) Quoted Prices in Active Markets for Identical Assets		(Level 2) Significant Other Observable Inputs		(Level 3) Significant Unobservable Inputs
March 31, 2017
Impaired loans	$	8,677	$	-	$	-	$	8,677
Other real estate owned		496		-		-		496

December 31, 2016
Impaired loans	$	9,110	$	-	$	-	$	9,110
Other real estate owned		8,563		-		-		8,563

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

	Quantitative Information about Level 3 Fair Value Measurements
Asset Description	Fair Value		Valuation Technique	Unobservable Input	Range (Weighted Average)
March 31, 201 7
Corporate bonds	$	3,024	Discounted Cash Flows	Discount Rate					(5.06%)

Trust preferred securities	$	1,961	Discounted Cash Flows	Discount Rate		8.13%	-	8.63%	(8.36%)

SBA servicing assets	$	5,298	Discounted Cash Flows	Conditional Prepayment Rate					(6.58%)

				Discount Rate					(10.00%)

Impaired loans	$	8,677	Appraised Value of Collateral (1)	Liquidation expenses (2)		10%	-	23%	(12%)	(3)

Other real estate owned	$	496	Appraised Value of Collateral (1)	Liquidation expenses (2)		7%	-	20%	(9%)	(3)

			Sales Price	Liquidation expenses (2)		7%	-	8%	(7%)	(3)

December 31, 201 6
Corporate bonds	$	2,971	Discounted Cash Flows	Discount Rate					(4.68%)

Trust preferred securities	$	1,820	Discounted Cash Flows	Discount Rate		8.85%	-	9.35%	(9.08%)

SBA servicing assets	$	5,352	Discounted Cash Flows	Conditional Prepayment Rate					(6.12%)

				Discount Rate					(10.00%)

Impaired loans	$	9,110	Appraised Value of Collateral (1)	Liquidation expenses (2)		7%	-	20%	(11%)	(3)

			Sales Price	Liquidation expenses (2)					(7%)	(3)

Other real estate owned	$	8,563	Appraised Value of Collateral (1)	Liquidation expenses (2)		5%	-	76%	(17%)	(3)

			Sales Price	Liquidation expenses (2)		7%	-	8%	(7%)	(3)

Fair Value, Option, Quantitative Disclosures [Table Text Block]

Mortgage loans held for sale	Carrying Amount		Aggregate Unpaid Principal Balance		Excess Carrying Amount Over Aggregate Unpaid Principal Balance
March 31, 2017	$	19,753	$	19,052	$	701

December 31, 2016	$	23,911	$	23,428	$	483

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]

(dollars in thousands)	March 3 1 , 201 7			December 31, 201 6

SBA Servicing Asset

Fair Value of SBA Servicing Asset	$	5,298		$	5,352

Composition of SBA Loans Serviced for Others
Fixed-rate SBA loans		0	%		0	%
Adjustable-rate SBA loans		100	%		100	%
Total		100	%		100	%

Weighted Average Remaining Term (in years)		20.9			21.1

Prepayment Speed		6.58	%		6.12	%
Effect on fair value of a 10% increase	$	(164	)	$	(161	)
Effect on fair value of a 20% increase		(321	)		(316	)

Weighted Average Discount Rate		10.00	%		10.00	%
Effect on fair value of a 10% increase	$	(220	)	$	(226	)
Effect on fair value of a 20% increase		(423	)		(435	)

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

	Fair Value Measurements at March 31, 2017
(dollars in thousands)	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Balance Sheet Data
Financial assets:
Cash and cash equivalents	$	36,591	$	36,591		$	36,591	$	-	$	-
Investment securities available for sale		362,328		362,328			-		357,343		4,985
Investment securities held to maturity		421,850		413,699			-		413,699		-
Restricted stock		1,366		1,366			-		1,366		-
Loans held for sale		25,098		25,237			-		19,753		5,484
Loans receivable, net		1,016,962		995,394			-		-		995,394
SBA servicing assets		5,298		5,298			-		-		5,298
Accrued interest receivable		5,987		5,987			-		5,987		-
Interest rate lock commitments		831		831			-		831		-
Best efforts forward loan sales commitments		3		3			-		3		-
Mandatory forward loan sales commitments		8		8			-		8		-

Financial liabilities:
Deposits
Demand, savings and money market	$	1,614,079	$	1,614,079		$	-	$	1,614,079	$	-
Time		106,433		104,888			-		104,888		-
Subordinated debt		21,648		16,927			-		-		16,927
Accrued interest payable		490		490			-		490		-
Interest rate lock commitments		7		7			-		7		-
Best efforts forward loan sales commitments		270		270			-		270		-
Mandatory forward loan sales commitments		125		125			-		125		-

Off-Balance Sheet Data
Commitments to extend credit		-		-			-		-		-
Standby letters-of-credit		-		-			-		-		-

	Fair Value Measurements at December 31, 2016
(dollars in thousands)	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Balance Sheet Data
Financial assets:
Cash and cash equivalents	$	34,554	$	34,554	$	34,554	$	-	$	-
Investment securities available for sale		369,739		369,739		-		364,948		4,791
Investment securities held to maturity		432,499		425,183		-		425,183		-
Restricted stock		1,366		1,366		-		1,366		-
Loans held for sale		28,065		28,267		-		23,911		4,356
Loans receivable, net		955,817		937,944		-		-		937,944
SBA servicing assets		5,352		5,352		-		-		5,352
Accrued interest receivable		5,497		5,497		-		5,497		-
Interest rate lock commitments		439		439		-		439		-
Best efforts forward loan sales commitments		103		103		-		103		-
Mandatory forward loan sales commitments		229		229		-		229		-

Financial liabilities:
Deposits
Demand, savings and money market	$	1,566,506	$	1,566,506	$	-	$	1,566,506	$	-
Time		111,164		110,988		-		110,988		-
Subordinated debt		21,881		16,286		-		-		16,286
Accrued interest payable		444		444		-		444		-
Interest rate lock commitments		55		55		-		55		-
Best efforts forward loan sales commitments		125		125		-		125		-
Mandatory forward loan sales commitments		38		38		-		38		-

Off-Balance Sheet Data
Commitments to extend credit		-		-		-		-		-
Standby letters-of-credit		-		-		-		-		-

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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