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Note 14 - Commitments
 12 Months Ended
Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

14.

COMMITMENTS


In the normal course of business, there are various outstanding commitments and certain contingent liabilities which are not reflected in the accompanying consolidated financial statements. These commitments and contingent liabilities represent financial instruments with off-balance sheet risk. The contract or notional amounts of those instruments reflect the extent of involvement in particular types of financial instruments which were composed of the following:  


(Dollar amounts in thousands)

 

2013

   

2012

 
                 

Commitments to extend credit

  $ 120,861     $ 91,854  

Standby letters of credit

    4,809       281  
                 

Total

  $ 125,670     $ 92,135  

These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Balance Sheet. The Company’s exposure to credit loss, in the event of nonperformance by the other parties to the financial instruments, is represented by the contractual amounts as disclosed. The Company minimizes its exposure to credit loss under these commitments by subjecting them to credit approval and review procedures and collateral requirements as deemed necessary. Commitments generally have fixed expiration dates within one year of their origination.


Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. 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 over the coverage period. For secured letters of credit, the collateral is typically bank deposit instruments or customer business assets.


Leasing Arrangements


The Company leases certain of its banking facilities under operating leases which contain certain renewal options. As of December 31, 2013, approximate future minimum rental payments, including the renewal options under these leases, are as follows (in thousands): 


2014

      221  

2015

      226  

2016

      230  

2017

      238  

2018

      240  

Thereafter

      203  
      $ 1,358  

The above amounts represent minimum rentals not adjusted for possible future increases due to escalation provisions and assume that all renewal option periods will be exercised by the Company. Rent expense approximated $301,000, $269,000, and $248,000 for the years ended December 31, 2013, 2012, and 2011, respectively.