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Note 22 - Disclosures About Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2015

Fair Value Measurements And Financial Instruments Disclosure [Abstract]

Fair Value Measurements And Financial Instruments Disclosure [Text Block]

(22)

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table summarizes the carrying value and estimated fair value of financial instruments and the level within the fair value hierarchy (see Note 23) in which the fair value measurements fall at December 31, 2015 and 2014:

										Fair Value Measurements Using
(In thousands)		Carrying Value				Fair Value				Level 1				Level 2				Level 3

December 31, 2015:

Financial assets:
Cash and cash equivalents		$	109,174			$	109,174			$	109,174			$	0			$	0
Interest-bearing time deposits			16,655				16,696				0				16,696				0
Securities available for sale			186,751				186,751				118				186,633				0
Securities held to maturity			4				4				0				4				0
Loans held for sale			3,081				3,145				0				3,145				0
Loans, net			359,166				359,784				0				0				359,784
FHLB and other stock			1,650				1,650				0				1,650				0
Accrued interest receivable			2,244				2,244				0				2,244				0
Cost method investment (included in other assets)			711				711				0				711				0

Financial liabilities:
Deposits			637,177				636,406				0				0				636,406
Accrued interest payable			167				167				0				167				0

December 31, 2014:

Financial assets:
Cash and cash equivalents		$	33,243			$	33,243			$	33,243			$	0			$	0
Interest-bearing time deposits			8,270				8,370				0				8,370				0
Securities available for sale			100,226				100,226				2,083				98,143				0
Securities held to maturity			6				6				0				6				0
Loans held for sale			1,608				1,641				0				1,641				0
Loans, net			300,603				301,864				0				0				301,864
FHLB and other stock			2,241				2,241				0				2,241				0
Accrued interest receivable			1,580				1,580				0				1,580				0
Cost method investment (included in other assets)			711				711				0				711				0

Financial liabilities:
Deposits			412,636				412,282				0				0				412,282
Accrued interest payable			127				127				0				127				0

The carrying amounts in the preceding table are included in the consolidated balance sheets under the applicable captions. The contractual or notional amounts of financial instruments with off-balance-sheet risk are disclosed in Note 18, and the fair value of these instruments is considered immaterial.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value:

Cash and Cash Equivalents

For cash and short-term instruments, including cash and due from banks, interest-bearing deposits with banks, and federal funds sold, the carrying amount is a reasonable estimate of fair value.

Investment Securities and Interest-Bearing Time Deposits

For marketable equity securities, the fair values are based on quoted market prices. For debt securities and interest-bearing time deposits, the Company obtains fair value measurements from an independent pricing service and the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. For FHLB stock and other restricted equity securities, the carrying amount is a reasonable estimate of fair value because the stock is not marketable. For other cost method investments where a quoted market value is not available, the carrying amount is a reasonable estimate of fair value.

Loans

The fair value of loans, excluding loans held for sale, is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and terms. Impaired loans are valued at the lower of their carrying value or fair value. The carrying amount of accrued interest receivable approximates its fair value.

The fair value of loans held for sale is based on specific prices of underlying contracts for sales to investors.

Deposits

The fair value of demand deposits, savings accounts, money market deposit accounts and other transaction accounts is the amount payable on demand at the balance sheet date. The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value.

Borrowed Funds

The carrying amount of retail repurchase agreements and other short-term borrowings approximates its fair value. The fair value of advances from FHLB is estimated by discounting the future cash flows using the current rates at which similar loans with the same remaining maturities could be obtained.