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Note 7 - Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2018
Notes Tables  
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
 
                                 
June
3
0
, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 
Collateralized mortgage obligations
  $
346,942
    $
-
    $
346,942
    $
-
 
Agency mortgage-backed securities
   
69,382
     
-
     
69,382
     
-
 
Municipal securities
   
18,578
     
-
     
18,578
     
-
 
Corporate bonds
   
59,614
     
-
     
56,531
     
3,083
 
Asset-backed securities
   
6,958
     
-
     
6,958
     
-
 
Trust Preferred Securities
   
547
     
-
     
-
     
547
 
Securities Available for Sale
  $
502,021
    $
-
    $
498,391
    $
3,630
 
                                 
Mortgage Loans Held for Sale
  $
36,090
    $
-
    $
36,090
    $
-
 
SBA Servicing Assets
   
4,977
     
-
     
-
     
4,977
 
Interest Rate Lock Commitments
   
714
     
-
     
714
     
-
 
Best Efforts Forward Loan Sales Commitments
   
1
     
-
     
1
     
-
 
Mandatory Forward Loan Sales Commitments
   
6
     
-
     
6
     
-
 
                                 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 
Interest Rate Lock Commitments
   
3
     
-
     
3
     
-
 
Best Efforts Forward Loan Sales Commitments
   
210
     
-
     
210
     
-
 
Mandatory Forward Loan Sales Commitments
   
301
     
-
     
301
     
-
 
                                 
                                 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 
Collateralized mortgage obligations
  $
320,241
    $
-
    $
320,241
    $
-
 
Agency mortgage-backed securities
   
54,866
     
-
     
54,866
     
-
 
Municipal securities
   
15,100
     
-
     
15,100
     
-
 
Corporate bonds
   
60,282
     
-
     
57,196
     
3,086
 
Asset-backed securities
   
13,452
     
-
     
13,452
     
-
 
Trust Preferred Securities
   
489
     
-
     
-
     
489
 
Securities Available for Sale
  $
464,430
    $
-
    $
460,855
    $
3,575
 
                                 
Mortgage Loans Held for Sale
  $
43,375
    $
-
    $
43,375
    $
-
 
SBA Servicing Assets
   
5,243
     
-
     
-
     
5,243
 
Interest Rate Lock Commitments
   
363
     
-
     
363
     
-
 
Best Efforts Forward Loan Sales Commitments
   
5
     
-
     
5
     
-
 
Mandatory Forward Loan Sales Commitments
   
19
     
-
     
19
     
-
 
                                 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 
Interest Rate Lock Commitments
   
1
     
-
     
1
     
-
 
Best Efforts Forward Loan Sales Commitments
   
93
     
-
     
93
     
-
 
Mandatory Forward Loan Sales Commitments
   
195
     
-
     
195
     
-
 
Schedule of Servicing Assets at Fair Value [Table Text Block]
   
Three Months Ended
June 30,
 
(dollars in thousands)
 
201
8
   
201
7
 
Beginning balance, April 1st
  $
5,059
    $
5,298
 
Additions
   
247
     
267
 
Fair value adjustments
   
(329
)    
(371
)
Ending balance, June 30th
  $
4,977
    $
5,194
 
   
Six Months Ended
June 30,
 
(dollars in thousands)
 
2018
   
2017
 
Beginning balance, January 1st
  $
5,243
    $
5,352
 
Additions
   
567
     
478
 
Fair value adjustments
   
(833
)    
(636
)
Ending balance, June 30th
  $
4,977
    $
5,194
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
   
Three Months Ended
June 30, 201
8
   
Three Months Ended
June 30
, 201
7
 
Level 3 Investments Only
(dollars in thousands)
 
Trust
Preferred
Securities
   
Corporate
Bonds
   
Trust
Preferred
Securities
   
Corporate
Bonds
 
Balance, April 1
st
  $
561
    $
3,090
    $
1,961
    $
3,024
 
Unrealized gains (losses)
   
(14
)    
(7
)    
525
     
55
 
Proceeds from sales
   
-
     
-
     
(970
)    
-
 
Realized losses
   
-
     
-
     
(548
)    
-
 
Balance, June 30
th
  $
547
    $
3,083
    $
968
    $
3,079
 
   
Six Months Ended
June 30, 201
8
   
Six Months Ended
June 30, 201
7
 
Level 3 Investments Only
(dollars in thousands)
 
Trust
Preferred
Securities
   
Corporate
Bonds
   
Trust
Preferred
Securities
   
Corporate
Bonds
 
Balance, January 1
st
  $
489
    $
3,086
    $
1,820
    $
2,971
 
Unrealized gains (losses)
   
58
     
(3
)    
666
     
108
 
Proceeds from sales
   
-
     
-
     
(970
)    
-
 
Realized losses
   
-
     
-
     
(548
)    
-
 
Balance, June 30
th
  $
547
    $
3,083
    $
968
    $
3,079
 
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
 
June 30, 2018
                               
Impaired loans
  $
7,149
    $
-
    $
-
    $
7,149
 
Other real estate owned
   
-
     
-
     
-
     
-
 
                                 
December 31, 2017
                               
Impaired loans
  $
7,322
    $
-
    $
-
    $
7,322
 
Other real estate owned
   
5,727
     
-
     
-
     
5,727
 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
   
Quantitative Information about Level 3 Fair Value Measurements
 
Asset Description
 
Fair Value
 
Valuation
Technique
 
Unobservable Input
 
Range (Weighted Average)
 
June
3
0
, 201
8
 
 
 
 
       
 
     
 
 
                             
Corporate bonds
  $
3,083
 
Discounted Cash Flows
 
Discount Rate
   
 
(7.32%)
 
 
 
                             
Trust preferred securities
  $
547
 
Discounted Cash Flows
 
Discount Rate
   
 
(8.06%)
 
 
 
                             
SBA servicing assets
  $
4,977
 
Discounted Cash Flows
 
Conditional
Prepayment Rate
   
 
(9.88%)
 
 
 
                             
     
 
 
 
 
Discount Rate
   
 
(11.00%)
 
 
 
                             
Impaired loans
  $
7,149
 
Appraised Value of Collateral (1)
 
Liquidation expenses (2)
   
10%
-
30%
(13%) (3)
 
                             
December 31, 201
7
 
 
 
 
       
 
     
 
 
                             
Corporate bonds
  $
3,086
 
Discounted Cash Flows
 
Discount Rate
   
 
(5.99%)
 
 
 
                             
Trust preferred securities
  $
489
 
Discounted Cash Flows
 
Discount Rate
   
 
(8.33%)
 
 
 
                             
SBA servicing assets
  $
5,243
 
Discounted Cash Flows
 
Conditional
Prepayment Rate
   
 
(7.85%)
 
 
 
                             
     
 
 
 
 
Discount Rate
   
 
(10.50%)
 
 
 
                             
Impaired loans
  $
7,322
 
Appraised Value of Collateral (1)
 
Liquidation expenses (2)
   
10%
-
21%
(14%) (3)
 
                             
Other real estate owned
  $
5,727
 
Appraised Value of Collateral (1)
 
Liquidation expenses (2)
   
 
(22%) (3)
 
 
 
                             
     
 
 
Sales Price
 
Liquidation expenses (2)
   
4%
-
7%
(7%) (3)
 
Fair Value Option, Disclosures [Table Text Block]
   
Carrying
Amount
   
Aggregate Unpaid
Principal Balance
   
Excess Carrying
Amount Over
Aggregate Unpaid
Principal Balance
 
June 30, 2018
  $
36,090
    $
34,802
    $
1,288
 
                         
December 31, 2017
  $
43,375
    $
42,046
    $
1,329
 
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]
(dollars in thousands)
 
June
3
0
, 2018
   
December 31, 2017
 
                 
SBA Servicing Asset
 
 
 
 
 
 
 
 
                 
Fair Value of SBA Servicing Asset
  $
4,977
    $
5,243
 
                 
Composition of SBA Loans Serviced for Others
               
Fixed-rate SBA loans
   
2
%    
2
%
Adjustable-rate SBA loans
   
98
%    
98
%
Total
   
100
%    
100
%
                 
Weighted Average Remaining Term (in years)    
20.4
     
20.5
 
                 
Prepayment Speed
   
9.88
%    
7.85
%
Effect on fair value of a 10% increase
  $
(174
)   $
(171
)
Effect on fair value of a 20% increase
   
(338
)    
(333
)
                 
Weighted Average Discount Rate
   
11.00
%    
10.50
%
Effect on fair value of a 10% increase
  $
(191
)   $
(211
)
Effect on fair value of a 20% increase
   
(369
)    
(407
)
Fair Value, by Balance Sheet Grouping [Table Text Block]
   
Fair Value Measurements at June
3
0
, 201
8
 
 
(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
  $
59,354
    $
59,354
    $
59,354
    $
-
    $
-
 
Investment securities available for sale
   
502,021
     
502,021
     
-
     
498,391
     
3,630
 
Investment securities held to maturity
   
503,742
     
483,994
     
-
     
483,994
     
-
 
Restricted stock
   
8,379
     
8,379
     
-
     
8,379
     
-
 
Loans held for sale
   
39,301
     
39,301
     
-
     
36,090
     
3,211
 
Loans receivable, net
   
1,310,012
     
1,283,864
     
-
     
-
     
1,283,864
 
SBA servicing assets
   
4,977
     
4,977
     
-
     
-
     
4,977
 
Accrued interest receivable
   
8,019
     
8,019
     
-
     
8,019
     
-
 
Interest rate lock commitments
   
714
     
714
     
-
     
714
     
-
 
Best efforts forward loan sales commitments
   
1
     
1
     
-
     
1
     
-
 
Mandatory forward loan sales commitments
   
6
     
6
     
-
     
6
     
-
 
                                         
Financial liabilities:
                                       
Deposits
                                       
Demand, savings and money market
  $
2,010,345
    $
2,010,345
    $
-
    $
2,010,345
    $
-
 
Time
   
123,796
     
122,287
     
-
     
122,287
     
-
 
Short-term borrowings
   
161,669
     
161,669
     
-
     
161,669
     
-
 
Subordinated debt
   
11,256
     
8,501
     
-
     
-
     
8,501
 
Accrued interest payable
   
408
     
408
     
-
     
408
     
-
 
Interest rate lock commitments
   
3
     
3
     
-
     
3
     
-
 
Best efforts forward loan sales commitments
   
210
     
210
     
-
     
210
     
-
 
Mandatory forward loan sales commitments
   
301
     
301
     
-
     
301
     
-
 
                                         
Off-Balance Sheet Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments to extend credit
   
-
     
-
     
-
     
-
     
-
 
Standby letters-of-credit
   
-
     
-
     
-
     
-
     
-
 
   
Fair Value Measurements at December 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
  $
61,942
    $
61,942
    $
61,942
    $
-
    $
-
 
Investment securities available for sale
   
464,430
     
464,430
     
-
     
460,855
     
3,575
 
Investment securities held to maturity
   
472,213
     
463,799
     
-
     
463,799
     
-
 
Restricted stock
   
1,918
     
1,918
     
-
     
1,918
     
-
 
Loans held for sale
   
45,700
     
45,714
     
-
     
43,375
     
2,339
 
Loans receivable, net
   
1,153,679
     
1,120,305
     
-
     
-
     
1,120,305
 
SBA servicing assets
   
5,243
     
5,243
     
-
     
-
     
5,243
 
Accrued interest receivable
   
7,009
     
7,009
     
-
     
7,009
     
-
 
Interest rate lock commitments
   
363
     
363
     
-
     
363
     
-
 
Best efforts forward loan sales commitments
   
5
     
5
     
-
     
5
     
-
 
Mandatory forward loan sales commitments
   
19
     
19
     
-
     
19
     
-
 
                                         
Financial liabilities:
                                       
Deposits
                                       
Demand, savings and money market
  $
1,946,558
    $
1,946,558
    $
-
    $
1,946,558
    $
-
 
Time
   
116,737
     
115,673
     
-
     
115,673
     
-
 
Subordinated debt
   
21,681
     
18,458
     
-
     
-
     
18,458
 
Accrued interest payable
   
293
     
293
     
-
     
293
     
-
 
Interest rate lock commitments
   
1
     
1
     
-
     
1
     
-
 
Best efforts forward loan sales commitments
   
93
     
93
     
-
     
93
     
-
 
Mandatory forward loan sales commitments
   
195
     
195
     
-
     
195
     
-
 
                                         
Off-Balance Sheet Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments to extend credit
   
-
     
-
     
-
     
-
     
-
 
Standby letters-of-credit
   
-
     
-
     
-
     
-
     
-