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Note 8 - Subordinated Debt
 9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Subordinated Borrowings Disclosure [Text Block]
Note
8.
Subordinated Debt
 
On
October 
30,
2015,
the Company entered into a Subordinated Loan Agreement (the Agreement) pursuant to which the Company issued an interest only subordinated term note due
2025
in the aggregate principal amount of
$5.0
million (the Note). The Note bears interest at a fixed rate of
6.75%
per annum. The Note qualifies as Tier
2
capital for regulatory capital purposes and at
September 30, 2019
, the total amount of subordinated debt issued was included in the Company’s Tier
2
capital. Unamortized debt issuance costs related to the Note were
$22
thousand and
$35
thousand at
September 30, 2019
and
December 31, 2018
, respectively.
 
The Note has a maturity date of
October 
1,
2025.
Subject to regulatory approval, the Company
may
prepay the Note, in part or in full, beginning on
October 
30,
2020.
The Note is an unsecured, subordinated obligation of the Company and ranks junior in right of payment to the Company’s senior indebtedness and to the Company’s obligations to its general creditors. The Note ranks equally with all other unsecured subordinated debt, except any which by its terms is expressly stated to be subordinated to the Note. The Note ranks senior to all current and future junior subordinated debt obligations, preferred stock, and common stock of the Company.
 
The Note is
not
convertible into common stock or preferred stock. The Agreement contains customary events of default such as the bankruptcy of the Company and the non-payment of principal or interest when due. The holder of the Note
may
accelerate the repayment of the Note only in the event of bankruptcy or similar proceedings and
not
for any other event of default.