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Note 10 - Fair Values Of Financial Instruments

3 Months Ended

Mar. 31, 2014

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments [Text Block]

10.	FAIR VALUES OF FINANCIAL INSTRUMENTS

The carrying amounts, estimated fair values and level within the fair value hierarchy of financial instruments were as follows as of March 31, 2014 and December 31, 2013 (dollars in thousands):

	Level in	March 31, 2014				December 31, 2013
	Fair Value	Carrying		Fair		Carrying		Fair
	Hierarchy	Values		Values		Values		Values

Financial assets:
Cash	Level 1	$	1,699	$	1,699	$	1,464	$	1,464
Cash equivalents	Level 2		108,248		108,248		145,501		145,501
Securities available for sale	(1)		141,097		141,097		131,178		131,178
FHLB stock	(2)		11,961		11,961		11,961		11,961
Loans, net	Level 3		1,045,842		1,045,151		1,030,422		1,027,300
Bank owned life insurance	Level 2		51,667		51,667		51,377		51,377
Accrued interest receivable	Level 2		3,861		3,861		3,649		3,649

Financial liabilities:
Deposits	Level 2		1,108,251		1,110,957		1,118,911		1,120,576
Repurchase agreements	Level 2		63,165		63,165		69,305		69,305
FHLB advances	Level 2		45,000		45,035		45,000		45,139
Subordinated debentures	Level 2		32,990		32,959		32,990		32,974
Accrued interest payable	Level 2		1,431		1,431		2,041		2,041
Interest rate swap	(1)		250		250		264		264

(1)

See Note 11 for a description of the fair value hierarchy as well as a disclosure of levels for classes of financial assets and liabilities.

(2)

It is not practical to determine the fair value of FHLB stock due to transferability restrictions.

Carrying amount is the estimated fair value for cash and cash equivalents, accrued interest receivable and payable, bank owned life insurance, noninterest checking deposits, securities sold under agreements to repurchase, and variable rate loans and deposits that reprice frequently and fully. Security fair values are based on market prices or dealer quotes, and if no such information is available, on the rate and term of the security and information about the issuer. For fixed rate loans and deposits and for variable rate loans and deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. Fair value of subordinated debentures and Federal Home Loan Bank advances is based on current rates for similar financing. Fair value of the interest rate swap is determined primarily utilizing market-consensus forecasted yield curves. Fair value of off-balance sheet items is estimated to be nominal.