Not a big ice dam, but it's big enough to cause problems. Homes with small soffits have far less warning time between 'hey look at the pretty icicles' and 'oh sh*t!, my wall is wrecked'.

This homeowner is bummed. When you see ice on the siding it is quite likely that water is inside the wall cavity. This moisture can damage framing, Insulation, drywall and ultimately your millwork and flooring..