Note 17 - Subsequent Events

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

(

17

)

Subsequent Events

On

July 3, 2019,

the Company announced the startup of a Small Business Specialty Lending Group which will focus on Small Business Administration lending and other government guaranteed loans. The Company has hired

two

veteran bankers to lead the group.

On

July 18, 2019,

the Board of Directors declared a cash dividend of

$0.075

per share to shareholders of record on

July 31, 2019,

payable on

August 15, 2019.

Colony Risk Management, Inc. (“the Captive”), a wholly-owned subsidiary of the Company, began operations in

July 2019,

in the State of Nevada. The Captive is a pure captive insurance company as defined by the Nevada Revised Statutes, Chapter

694C,

and is engaged in the business of providing commercial property and various liability insurance to the Company and related entities. The Captive has elected to be taxed under Section

831

(b) of the Internal Revenue Code. Pursuant to Section

831

(b), if gross premiums do

not

exceed

$2,300,000,

then the Captive is taxable solely on its investment income. The Captive will be included in the consolidated federal income tax return of the Company. The Captive has a policy to pay to the Company its federal income tax liability or receive a credit for the tax reduction realized in the event of a loss. The Captive is subject to federal income taxes and state premium taxes to Nevada.