Note 13 - Preferred Stock

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Preferred Stock And Warrants [Text Block]

(

13

) Preferred Stock

At

December 31, 2016,

9,360

shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the Preferred Stock) was outstanding with private investors. On

March 31, 2017

the Company redeemed these

9,360

shares of Preferred Stock at the stated rate of

$1,000

per share. Previously, the Company redeemed

8,661

shares in

2016

and

9,979

shares in

2015,

all at the stated rate of

$1,000

per share. As a result, there is

no

outstanding Preferred Stock as of

December 31, 2017.

While outstanding, the Preferred Stock qualified as Tier I Capital and was nonvoting, other th

an class voting rights on certain matters that could adversely affect the Preferred Stock. The Preferred Stock paid cumulative cash dividends on a quarterly basis at a rate of

9

percent per annum for the years

2017,

2016

and

2015.

The Company issued a warrant (the Warrant) to private investors for the purchase of up to

500,000

shares of the Company

’s outstanding common stock. The Warrant originated in

2009

through transactions with the United States Department of the Treasury in conjunction with the issuance of the Preferred Stock. The Warrant

may

be exercised on or before

January 9, 2019

at an exercise price of

$8.40

per share.

No

voting rights

may

be exercised with respect to the shares of the Warrant until the Warrant has been exercised.