Note 12 - Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

			Fair Value Measurements Using
(In thousands) Available For Sale Investment Securities	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

September 30 , 201 6
Obligations of U.S. government-sponsored entities	$	76,478	$	-	$	76,478	$	-
Obligations of states and political subdivisions		120,538		-		120,538		-
Mortgage-backed securities – residential		230,223		-		230,223		-
Mortgage-backed securities – commercial		40,239		-		40,239		-
Corporate debt securities		6,126		-		6,126		-
Mutual funds and equity securities		815		815		-		-
Total	$	474,419	$	815	$	473,604	$	-

			Fair Value Measurements Using
(In thousands) Available For Sale Investment Securities	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

December 31, 2015
Obligations of U.S. government-sponsored entities	$	106,906	$	-	$	106,906	$	-
Obligations of states and political subdivisions		150,266		-		150,266		-
Mortgage-backed securities – residential		297,861		-		297,861		-
Mortgage-backed securities – commercial		20,584		-		20,584		-
Corporate debt securities		5,840		-		5,840		-
Mutual funds and equity securities		745		745		-		-
Total	$	582,202	$	745	$	581,457	$	-

			Fair Value Measurements Using
(In thousands) Description	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

September 30 , 201 6
Collateral-dependent Impaired Loans
Real estate mortgage – residential	$	239	$	-	$	-	$	239
Real estate mortgage – farmland and other commercial enterprises		5		-		-		5
Total	$	244	$	-	$	-	$	244

OREO
Construction and land development	$	3,900	$	-	$	-	$	3,900
Residential real estate		436		-		-		436
Farmland and other commercial enterprises		2,303		-		-		2,303
Total	$	6,639	$	-	$	-	$	6,639

			Fair Value Measurements Using
(In thousands) Description	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 201 5
Collateral-dependent Impaired Loans
Real estate mortgage – construction and land development	$	2,908	$	-	$	-	$	2,908
Real estate mortgage – residential		3,720		-		-		3,720
Total	$	6,628	$	-	$	-	$	6,628

OREO
Construction and land development	$	2,252	$	-	$	-	$	2,252
Residential real estate		406		-		-		406
Farmland and other commercial enterprises		2,868		-		-		2,868
Total	$	5,526	$	-	$	-	$	5,526

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In thousands)	2016		2015		2016		2015
Impairment charges:
Collateral-dependent impaired loans	$	33	$	24	$	540	$	45
OREO		599		29		1,165		276
Total	$	632	$	53	$	1,705	$	321

(In thousands)	Fair Value		Valuation Technique	Unobservable Inputs	Range				Average
September 30, 2016
Collateral-dependent impaired loans	$	244	Discounted appraisals	Marketability discount		0%	-	67.8%		8.3	%
OREO	$	6,639	Discounted appraisals	Marketability discount		1.9%	-	45.4%		15.0	%
December 31, 2015
Collateral-dependent impaired loans	$	6,628	Discounted appraisals	Marketability discount		0%	-	8.3%		7.9	%
OREO	$	5,526	Discounted appraisals	Marketability discount		2.3%	-	26.9%		6.5	%

					Fair Value Measurements Using
(In thousands)	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
September 30 , 201 6
Assets
Cash and cash equivalents	$	127,575	$	127,575	$	127,575	$	-	$	-
Held to maturity investment securities		3,572		3,801		-		3,801		-
Loans, net		941,570		933,104		-		-		933,104
Accrued interest receivable		4,519		4,519		-		4,519		-
Federal Home Loan Bank and Federal Reserve Bank Stock		9,840		N/A		-		-		-

Liabilities
Deposits		1,350,931		1,350,804		1,067,178		-		283,626
Federal funds purchased and other short-term borrowings		37,407		37,407		-		37,407		-
Securities sold under agreements to repurchase and other long-term borrowings		19,968		20,544		-		20,544		-
Subordinated notes payable to unconsolidated trusts		33,506		18,352		-		-		18,352
Accrued interest payable		322		322		-		322		-

December 31 , 201 5
Assets
Cash and cash equivalents	$	120,493	$	120,493	$	120,493	$	-	$	-
Held to maturity investment securities		3,611		3,809		-		3,809		-
Loans, net		948,960		945,809		-		-		945,809
Accrued interest receivable		5,392		5,392		-		5,392		-
Federal Home Loan Bank and Federal Reserve Bank Stock		9,368		N/A		-		-		-

Liabilities
Deposits		1,368,994		1,369,016		1,043,616		-		325,400
Federal funds purchased and other short-term borrowings		34,353		34,353		-		34,353		-
Securities sold under agreements to repurchase and other long-term borrowings		120,280		126,964		-		126,964		-
Subordinated notes payable to unconsolidated trusts		48,970		31,515		-		-		31,515
Accrued interest payable		851		851		-		851		-