Highlands Bankshares 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	HIGHLANDS BANKSHARES INC /VA/
Entity Central Index Key	1,008,579
Document Period End Date	Mar. 31, 2017
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,199,228
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 22,122	$ 27,391
Federal funds sold	34,066	22,994
Total Cash and Cash Equivalents	56,188	50,385
Investment securities available for sale (amortized cost $98,149 at March 31, 2017, $96,930 at December 31, 2016)	96,384	95,073
Other investments, at cost	6,385	6,637
Loans held for sale	3,063	1,255
Loans, net of allowance for loan losses of $4,728 at March 31, 2017, $4,829 at December 31, 2016	404,383	404,838
Premises and equipment, net	17,843	17,814
Real Estate held for Sale	1,662	1,680
Deferred tax assets	12,519	12,989
Interest receivable	1,845	2,047
Bank owned life Insurance	14,409	14,314
Other real estate owned	2,741	2,768
Other assets	2,114	2,878
Total Assets	619,536	612,678
Deposits:
Non-interest bearing	140,616	134,488
Interest bearing	354,851	355,381
Total Deposits	495,467	489,869
Interest, taxes and other liabilities	1,477	1,353
Other short-term borrowings	27,552	27,552
Long-term debt	40,133	40,146
Total Other Liabilities	69,162	69,051
Total Liabilities	564,629	558,920
STOCKHOLDERS' EQUITY
Common stock (8,199 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively)	5,124	5,124
Preferred Stock (2,092 shares issued and outstanding)	4,184	4,184
Additional paid-in capital	18,946	18,891
Retained earnings	27,817	26,785
Accumulated other comprehensive income	(1,164)	(1,226)
Total Stockholders' Equity	54,907	53,758
Total Liabilities and Stockholders' Equity	$ 619,536	$ 612,678

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Investment securities available for sale, amortization cost	$ 98,149	$ 96,930
Loans, allowance for loan losses	$ 4,728	$ 4,829
STOCKHOLDERS' EQUITY
Common stock, shares issued (in shares)	8,199	8,199
Common stock, shares outstanding (in shares)	8,199	8,199
Preferred stock shares issued	2,092	2,092
Preferred stock shares outstanding	2,092	2,092

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
INTEREST INCOME
Loans receivable and fees on loans	$ 5,049	$ 5,478
Securities available for sale:
Taxable	435	297
Exempt from taxable income	86	78
Other investment income	61	57
Federal funds sold	50	26
Total Interest Income	5,681	5,936
INTEREST EXPENSE
Deposits	446	453
Other borrowed funds	585	592
Total Interest Expense	1,031	1,045
Net Interest Income	4,650	4,891
Provision for Loan Losses	17	224
Net Interest Income after Provision for Loan Losses	4,633	4,667
NON-INTEREST INCOME
Mortgage Banking Income	226	0
Securities gains, net	0	35
Service charges on deposit accounts	397	398
Other service charges, commissions and fees	498	441
Other operating income	166	284
Total Non-Interest Income	1,287	1,158
NON-INTEREST EXPENSE
Salaries and employee benefits	2,493	2,919
Occupancy expense of bank premises	323	313
Furniture and equipment expense	346	351
Other operating expense	1,267	1,302
Foreclosed Assets - Write-down and operating expenses	20	219
Total Non-Interest Expense	4,449	5,104
Income Before Income Taxes	1,471	721
Income Tax Expense (Note 3)	439	191
Net Income	$ 1,032	$ 530
Basic Earnings Per Common Share (Note 6)	$ .13	$ .07
Earnings Per Common Share - Assuming Dilution	.10	.05
Dividends Per Share	$ 0	$ 0

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Consolidated Statements Of Comprehensive Income
Net Income	$ 1,032	$ 530
Other Comprehensive Income
Unrealized gains on securities during the period	94	880
Less: reclassification adjustment for (gains) included in net income	0	(35)
Other Comprehensive Income, before tax	94	845
Income tax expense related to other comprehensive income	32	287
Other Comprehensive Income	62	558
Comprehensive Income	$ 1,094	$ 1,088

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 1,032	$ 530
Adjustments to reconcile net income to net cash provided by operating activities
Provision for loan losses	17	224
Depreciation and amortization	241	243
Net realized gains on available for sale securities	0	(35)
Net amortization on securities	163	221
Restricted Stock Expense	55	0
Origination of loans held for sale	(7,386)	0
Proceeds from loans held for sale	5,578	0
(Increase) decrease in interest receivable	202	(50)
Valuation adjustment of other real estate owned	0	166
Decrease in other assets	1,266	1,010
Increase in interest, taxes and other liabilities	124	479
Net cash provided by operating activities	1,292	2,788
Securities available for sale:
Proceeds from sale of securities	0	11,549
Proceeds from maturities of securities	3,910	3,457
Purchase of debt and equity securities	(5,293)	(18,082)
(Purchases) redemptions of other investments	252	(19)
Net decrease in loans	212	3,725
Proceeds from sales of other real estate owned	255	328
Proceeds from cash surrender value of life insurance	0	93
Premises and equipment expenditures	(410)	(114)
Net cash provided by (used in) investing activities	(1,074)	937
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in time deposits	(1,966)	(3,890)
Net increase in demand, savings and other deposits	7,564	2,075
Decrease in short-term borrowings	0	(1)
Decrease in long-term debt	(13)	(12)
Issuance of Common Stock	0	1,110
Net cash provided by (used in) financing activities	5,585	(718)
Net increase in cash and cash equivalents	5,803	3,007
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	50,385	46,891
CASH AND CASH EQUIVALENTS AT END OF PERIOD	56,188	49,898
Cash paid during the period for:
Interest	1,047	1,059
Income taxes	0	0
SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS
Transfer of loans to other real estate owned	228	153
Loans originated from sales of other real estate owned	$ 0	$ 10

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Preferred Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance, Amount at Dec. 31, 2015	$ 4,907	$ 4,184	$ 17,944	$ 26,773	$ (248)	$ 53,560
Balance, Shares at Dec. 31, 2015	7,851	2,092
Net Income				530		530
Issuance of Common Stock, Amount	$ 163		947			1,110
Issuance of Common Stock, Shares	262
Other Comprehensive Income					558	558
Balance, Amount at Mar. 31, 2016	$ 5,124	$ 4,184	18,891	27,303	310	55,758
Balance, Shares at Mar. 31, 2016	8,113	2,092
Balance, Amount at Dec. 31, 2016	$ 5,124	$ 4,184	18,891	26,785	(1,226)	53,758
Balance, Shares at Dec. 31, 2016	8,199	2,092
Net Income				1,032		1,032
Other Comprehensive Income					62	62
Compensation Expense on Restricted Stock			55			55
Balance, Amount at Mar. 31, 2017	$ 5,124	$ 4,184	$ 18,946	$ 27,817	$ (1,164)	$ 54,907
Balance, Shares at Mar. 31, 2017	8,199	2,092

1. General

1. General	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
General	The consolidated financial statements of Highlands Bankshares, Inc. (the “Company”) conform to United States generally accepted accounting principles and to banking industry practices. The accompanying consolidated interim financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. All such adjustments are of a normal and recurring nature. The consolidated balance sheet as of December 31, 2016 has been extracted from the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”). The notes included herein should be read in conjunction with the notes to consolidated financial statements included in the 2016 Form 10-K. The results of operations for the three-month period ended March 31, 2017, are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

2. Loans and Allowance for Loan

2. Loans and Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
Loans and Allowance for Loan Losses	The composition of net loans is as follows: March 31, 2017 December 31, 2016 Real Estate Secured: Residential 1-4 family $ 183,080 $ 186,695 Multifamily 22,723 22,630 Construction and Land Loans 16,521 15,978 Commercial, Owner Occupied 69,298 72,383 Commercial, Non-owner occupied 29,404 28,818 Second mortgages 6,195 6,934 Equity lines of credit 19,882 13,395 Farmland 12,283 12,194 359,386 359,027 Secured (other) and unsecured Personal 16,777 17,745 Commercial 30,238 29,977 Agricultural 3,169 3,490 50,184 51,212 Overdrafts 260 142 409,830 410,381 Less: Allowance for loan losses 4,728 4,829 Net deferred fees 719 714 5,447 5,543 Loans, net $ 404,383 $ 404,838 The following table is an analysis of past due loans as of March 31, 2017 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Real Estate Secured Residential 1-4 family $ 388 $ 39 $ 819 $ 1,246 $ 181,834 $ 183,080 $ - Equity lines of credit - - 10 10 19,872 19,882 - Multifamily - - - - 22,723 22,723 - Farmland 411 - 193 604 11,679 12,283 - Construction, Land Development, Other Land Loans 143 - - 143 16,378 16,521 - Commercial Real Estate- Owner Occupied - - 1,643 1,643 67,655 69,298 - Commercial Real Estate- Non Owner Occupied - - 346 346 29,058 29,404 - Second Mortgages - - 18 18 6,177 6,195 - Non Real Estate Secured Personal 115 30 26 171 16,866 17,037 - Commercial 40 38 397 475 29,763 30,238 - Agricultural - - - - 3,169 3,169 - Total $ 1,097 $ 107 $ 3,452 $ 4,656 $ 405,174 $ 409,830 $ - The following table is an analysis of past due loans as of December 31, 2016: 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Real Estate Secured Residential 1-4 family $ 841 $ 242 $ 1,000 $ 2,083 $ 184,612 $ 186,695 $ - Equity lines of credit - 30 10 40 13,355 13,395 - Multifamily - - - - 22,630 22,630 - Farmland - 47 564 611 11,583 12,194 - Construction, Land Development, Other Land Loans 39 - - 39 15,939 15,978 - Commercial Real Estate- Owner Occupied 14 - 3,868 3,882 68,501 72,383 2,210 Commercial Real Estate- Non Owner Occupied - - - - 28,818 28,818 - Second Mortgages 160 1 18 179 6,755 6,934 - Non Real Estate Secured Personal 118 23 12 153 17,734 17,887 - Commercial 142 54 462 658 29,319 29,977 - Agricultural - 7 - 7 3,483 3,490 - Total $ 1,314 $ 404 $ 5,934 $ 7,652 $ 402,729 $ 410,381 $ 2,210 Loans are considered delinquent when payments have not been made according to the terms of the contract. The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Additionally, in certain instances, loans that have been restructured or modified may also be classified as non-accrual per regulatory guidance until a satisfactory payment history has been established. Credit card loans and other personal loans are typically charged off no later than 180 days past due. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. The following is a summary of non-accrual loans at March 31, 2017 and December 31, 2016: March 31, 2017 December 31, 2016 Real Estate Secured Residential 1-4 Family $ 819 $ 1,275 Multifamily - - Construction and Land Loans - - Commercial-Owner Occupied 1,643 1,658 Commercial- Non Owner Occupied 346 - Second Mortgages 18 18 Equity Lines of Credit 10 10 Farmland 193 564 Secured (other) and Unsecured Personal 26 12 Commercial 397 462 Agricultural - - Total $ 3,452 $ 3,999 The following is a summary of residential real estate currently in the process of foreclosure as well as foreclosed residential real estate as of March 31, 2017. Number 03/31/2017 Balance Residential real estate in the process of foreclosure 4 $ 678 Foreclosed residential real estate 6 $ 334 The following tables represent a summary of credit quality indicators of the Company’s loan portfolio at March 31, 2017 and December 31, 2016. The grades are assigned and/or modified by the Company’s credit review and credit analysis departments based on the creditworthiness of the borrower and the overall strength of the loan. Credit Risk Profile by Internally Assigned Grade as of March 31, 2017 Grade (1) Residential 1-4 Family Multifamily Farmland Construction, Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate Non-Owner Occupied Quality 32,409 - 18 1,714 3,823 363 Satisfactory 102,826 18,147 7,955 5,129 36,625 16,799 Acceptable 40,789 1,716 3,441 7,744 21,838 8,236 Special Mention 3,191 1,880 - - 4,401 126 Substandard 3,865 980 869 1,934 2,611 3,880 Doubtful - - - - - - Total $ 183,080 $ 22,723 $ 12,283 $ 16,521 $ 69,298 $ 29,404 Credit Risk Profile by Internally Assigned Grade as of December 31, 2016 Grade (1) Residential 1-4 Family Multifamily Farmland Construction, Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate Non-Owner Occupied Quality $ 32,054 $ - $ 19 $ 1,941 $ 3,686 $ 387 Satisfactory 106,154 18,335 7,823 5,969 36,806 15,198 Acceptable 41,369 1,410 3,474 5,961 22,767 5,119 Special Mention 3,399 1,896 - - 4,435 4,221 Substandard 3,719 989 878 2,107 4,689 3,893 Doubtful - - - - - - Total $ 186,695 $ 22,630 $ 12,194 $ 15,978 $ 72,383 $ 28,818 (1) Quality Conformity in all respects with Bank policy, guidelines, underwriting standards, and Federal and State regulations (no exceptions of any kind). Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. For existing loans, all of the requirements above apply plus all payments have been made as agreed, current financial information on all borrowers and guarantors has been obtained and analyzed, and overall business operating trends are either stable or improving. Satisfactory- General conformity to the Bank's policy requirements, product guidelines and underwriting standards. Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors. Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources. Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor. For existing loans, all of the requirements outlined above will apply, plus all payments have been made as agreed, current financial information on all borrowers and guarantors has been obtained and analyzed, and overall business operating trends are stable with any declines considered minor and temporary. Acceptable- Additional exceptions to the Bank's policy requirements, product guidelines or underwriting standards that present a higher degree of risk to the Bank. Although the combination and/or severity of identified exceptions is greater, all exceptions have been properly mitigated by other factors. Unproved, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time. Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected (not historic) performance. Marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and liquidation value to the net worth of the borrower or guarantor. For existing loans, payments have generally been made as agreed with only minor and isolated delinquencies. Special Mention Loans with underwriting guideline tolerances and/or exceptions with no identifiable mitigating factors. Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank's position at some future date. Potential weaknesses are the result of deviations from prudent lending practices. Loans where adverse economic conditions that develop subsequent to the loan origination do not jeopardize liquidation of the debt, but do substantially increase the level of risk may also warrant this rating. Substandard- The weaknesses may include, but are not limited to: · High debt to worth ratios and or declining or negative earnings trends · Declining or inadequate liquidity · Improper loan structure or questionable repayment sources · Lack of well-defined secondary repayment source, and · Unfavorable competitive comparisons. Such loans are no longer considered to be adequately protected due to the borrower's declining net worth, lack of earnings capacity, declining collateral margins and/or unperfected collateral positions. A possibility of loss of a portion of the loan balance cannot be ruled out. The repayment ability of the borrower is marginal or weak and the loan may have exhibited excessive overdue status or extensions and/or renewals. Doubtful However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Among these events are: · Injection of capital · Alternative financing · Liquidation of assets or the pledging of additional collateral. Credit Risk Profile based on payment activity as of March 31, 2017 Consumer - Non Real Estate Equity Line of Credit /Second Mortgages Commercial - Non Real Estate Agricultural - Non Real Estate Performing $ 17,011 $ 26,049 $ 29,841 $ 3,169 Nonperforming (>90 days past due) 26 28 397 - Total $ 17,037 $ 26,077 $ 30,238 $ 3,169 Credit Risk Profile based on payment activity as of December 31, 2016 Consumer - Non Real Estate Equity Line of Credit /Second Mortgages Commercial - Non Real Estate Agricultural - Non Real Estate Performing $ 17,875 $ 20,301 $ 29,515 $ 3,490 Nonperforming (>90 days past due) 12 28 462 - Total $ 17,887 $ 20,329 $ 29,977 $ 3,490 The following tables reflect the Bank’s impaired loans at March 31, 2017: March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With No Related Allowance Real Estate Secured Residential 1-4 family $ 5,699 $ 5,699 $ - $ 5,273 $ 70 Equity lines of credit - - - 12 - Multifamily 980 980 - 984 13 Farmland 582 582 - 633 13 Construction, Land Development, Other Land Loans 1,536 1,536 - 1,638 23 Commercial Real Estate- Owner Occupied 826 826 - 3,314 5 Commercial Real Estate- Non Owner Occupied 346 346 - 1,114 - Second Mortgages 64 64 - 125 1 Non Real Estate Secured Personal /Consumer - - - 7 - Commercial - - - 21 - Agricultural - - - - - Total $ 10,033 $ 10,033 $ - $ 13,121 $ 125 March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With an Allowance Recorded Real Estate Secured Residential 1-4 family $ 697 $ 697 $ 47 $ 578 $ 7 Equity lines of credit - - - - - Multifamily - - - - - Farmland 191 191 20 191 2 Construction, Land Development, Other Land Loans 366 366 20 366 6 Commercial Real Estate- Owner Occupied 3,437 4,437 960 2,288 49 Commercial Real Estate- Non Owner Occupied 3,879 3,879 768 2,944 46 Second Mortgages - - - 9 - Non Real Estate Secured Personal /Consumer - - - 25 - Commercial 466 466 280 550 1 Agricultural - - - - - Total $ 9,036 $ 10,036 $ 2,095 $ 6,951 $ 111 The following tables reflect the Bank’s impaired loans at December 31, 2016: December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no Related Allowance Real Estate Secured Residential 1-4 family $ 4,848 $ 4,848 $ - $ 5,963 $ 200 Equity lines of credit 25 25 - 38 1 Multifamily 989 989 - 1,005 1 Farmland 685 685 - 750 24 Construction, Land Development, Other Land Loans 1,741 1,741 - 1,643 114 Commercial Real Estate- Owner Occupied 5,802 5,802 - 5,685 390 Commercial Real Estate- Non Owner Occupied 1,883 1,883 - 941 39 Second Mortgages 186 186 - 292 8 Non Real Estate Secured Personal 14 14 - 41 1 Commercial 43 43 - 179 3 Agricultural - - - - - Total $ 16,216 $ 16,216 $ - $ 16,537 $ 781 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With an Allowance Recorded Real Estate Secured Residential 1-4 family $ 460 $ 460 $ 36 $ 1,153 $ 14 Equity lines of credit - - - - - Multifamily - - - - - Farmland 192 192 16 96 11 Construction, Land Development, Other Land Loans 366 366 20 406 22 Commercial Real Estate- Owner Occupied 1,139 2,139 558 1,629 Commercial Real Estate- Non Owner Occupied 2,009 2,009 314 1,947 41 Second Mortgages 18 18 9 18 - Non Real Estate Secured Personal 51 51 29 82 3 Commercial 634 634 365 652 16 Agricultural - - - - - Total $ 4,869 $ 5,869 $ 1,347 $ 5,983 $ 107 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by loan category and is segregated by impairment evaluation method as of March 31, 2017 and March 31, 2016. Three months ended March 31, 2017 Residential 1-4 Family Multifamily Construction and Land Loans Commercial Owner Occupied Commercial Non-Owner Occupied Second Mortgages Equity Line of Credit Farmland Personal and Overdrafts Commercial and Agricultural Unallocated Total Allowance for Credit Losses: Beginning Balance December 31, 2016 $ 371 $ - $ 21 $ 1,339 $ 445 $ 15 $ 27 $ 16 $ 802 $ 535 $ 1,258 $ 4,829 Provision for Credit Losses (16) - (1) 350 403 (11) 4 37 204 (99) (854) 17 Charge-offs 14 - - - - - - - 79 59 - 152 Recoveries (3) - (1) - (1) - - (1) (25) (3) - (34) Net Charge-offs 11 - (1) - (1) - - (1) 54 56 - 118 Ending Balance March 31, 2017 344 - 21 1,689 849 4 31 54 952 380 404 4,728 Ending Balance: Individually evaluated for impairment 47 - 20 960 768 - - 20 - 280 - 2,095 Ending Balance: Collectively evaluated for impairment 297 - 1 729 81 4 31 34 952 100 404 2,633 Loans: Ending Balance: Individually Evaluated for Impairment 6,396 980 1,902 4,263 4,225 64 - 773 260 466 - 19,329 Ending Balance: Collectively Evaluated for Impairment 176,684 21,743 14,619 65,035 25,179 6,131 19,882 11,510 16,777 32,941 - 390,501 Ending Balance: March 31, 2017 $183,080 $22,723 $16,521 $69,298 $29,404 $6,195 $19,882 $12,283 $17,037 $33,407 - $409,830 Three months ended March 31, 2016 Residential 1-4 Family Multifamily Construction and Land Loans Commercial Owner Occupied Commercial Non-Owner Occupied Second Mortgages Equity Line of Credit Farmland Personal and Overdrafts Commercial and Agricultural Unallocated Total Allowance for Credit Losses: Beginning Balance December 31, 2015 $ 654 $ - $ 37 $ 1,012 $ 748 $ 43 $ 20 $ 7 $ 704 $ 886 $ 1,543 $ 5,654 Provision for Credit Losses (33) - (18) 97 (130) 40 (3) (1) (94) 60 306 224 Charge-offs 27 - - - - - - - 139 23 - 189 Recoveries (1) - (2) - - - (1) - (131) (1) - (136) Net Charge-offs 26 - (2) - - - (1) - 8 22 - 53 Ending Balance March 31, 2016 595 - 21 1,109 618 83 18 6 602 924 1,849 5,825 Ending Balance: Individually evaluated for impairment 228 - 21 925 283 59 - - 42 599 - 2,157 Ending Balance: Collectively Evaluated for Impairment 367 - - 184 335 24 18 6 560 325 1,849 3,668 Loans: Ending Balance: Individually Evaluated for Impairment 8,069 1,009 1,995 7,729 1,878 427 50 812 147 966 - 23,082 Ending Balance: Collectively Evaluated for Impairment 189,709 21,875 15,798 64,343 31,449 7,759 6,230 11,566 20,330 36,792 - 405,851 Ending Balance: March 31, 2016 $197,778 $22,884 $17,793 $72,072 $33,327 $8,186 $6,280 $12,378 $20,477 $37,758 - $428,933 A loan is considered impaired and an allowance for loan losses is established on loans for which it is probable that the full collection of principal and interest is in doubt. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value based on recent appraisal and /or tax assessment value, liquidation value and/or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At March 31, 2017 and December 31, 2016, all of the total impaired loans were evaluated based on either the fair value of the collateral or the discounted cash flows. On a quarterly basis, the ALLL methodology begins with the determination of individually impaired loans. All loans that are rated “7” (Doubtful) are assessed as impaired based on the expectation that the full collection of principal and interest is in doubt. All loans that are rated “6” (Substandard) or are expected to be downgraded to “6”, require additional analysis to determine whether they may be impaired. All loans that are rated “5” (Special Mention) are presumed not to be impaired. However, “5” rated loans with the following characteristics warrant further analysis before completing an assessment of impairment: • A loan is 60 days or more delinquent on scheduled principal or interest; • A loan is presently in an unapproved over advanced position; • A loan is newly modified; or, • A loan is expected to be modified. The Company’s credit administration personnel and senior financial officers are responsible for tracking, coding, and monitoring loans that become Troubled Debt Restructurings (“TDRs”). Concessions are made to existing borrowers in the form of modified interest rates and / or payment terms. The loans are segregated for regulatory and external reporting. Each specific TDR is reviewed to determine if the accrual of interest should be discontinued and also reviewed for impairment. The Company’s senior credit officer performs this analysis on a quarterly basis in addition to determining any other loans that are impaired within the loan portfolio. The Company had a total of $11,773 and $12,660 of loans categorized as troubled debt restructurings as of March 31, 2017 and December 31, 2016, respectively. Interest is accrued on TDRs if the loan is otherwise not impaired and the full collection of principal and interest under the modified terms is still deemed probable. In the determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings by adjusting the loan grades of such loans. Defaults resulting in charge-offs affect the historical loss experience ratios which are a component of the allowance calculation. Additionally, specific reserves may be established on restructured loans evaluated individually. The following tables summarize the troubled debt restructurings during the three months ended March 31, 2017 and 2016. There were no new TDRs in the first quarter of 2017. Troubled Debt Restructurings –Three months ended March 31, 2017 Interest only Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total - - - Troubled Debt Restructurings Below Market Rate Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total - - - Troubled Debt Restructurings Loan term extension Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Business Commercial Agricultural Total - - - Troubled Debt Restructurings All Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Total Restructurings - - - Troubled Debt Restructurings That Subsequently Defaulted Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total - - - Troubled Debt Restructurings –Three months ended March 31, 2016 Interest only Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland 1 57 57 Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied 1 92 92 Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total 2 149 149 Troubled Debt Restructurings Below Market Rate Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family 1 848 848 Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total 1 848 848 Troubled Debt Restructurings Loan term extension Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Business Commercial Agricultural Total Troubled Debt Restructurings All Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Total Restructurings 3 997 997 Troubled Debt Restructurings That Subsequently Defaulted Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total - - - The loan review function performs various tasks that are utilized to discover weaknesses within the loan portfolio. These include annual reviews on loan relationships that are greater than $500. The relationship review includes a discussion on the collateral, repayment history, guarantor(s) financial position, and debt service coverage on an individual and global level. These reviews are based primarily upon federal tax returns for cash flow determination, internally prepared interim statements and personal financial statements. Debt service coverage (DSC) is calculated on each individual customer, or guarantor, as well as the aggregate or global DSC. The DSC is discounted to determine a “stressed” DSC. Collateral evaluation includes an inspection of the collateral file to determine if the Bank is indeed properly securitized. Collateral is discounted, when appropriate, to determine a “stressed” loan to value (LTV) ratio. In addition to annual loan relationship reviews, quarterly reviews on all loan relationships over $100 that are graded Substandard, Doubtful and Loss are also completed. This quarterly review process is comprised of a shortened version of the full relationship review. These quarterly reviews include a discussion on personal credit management, DSC and LTV. In addition to these quarterly reviews of non-pass watch list relationships, a semi-annual review is conducted on all Special Mention loan relationships that are on the watch list. These reviews are prepared in the same manner as the quarterly non-pass relationship reviews. The appropriateness of the risk rating of each relationship is assessed, with changes to the risk rating being made by the Senior Credit Officer or the individual Loan Officer, when deemed appropriate. Other measures taken to determine potential problem relationships include the monthly preparation of the watch list. During that process, past due loan reports are reviewed, as well as any other information that might be presented by loan officers, regarding a particular loan relationship that is exhibiting stress. To be considered as a watch list relationship, distinct characteristics must be exhibited. These include, but are not limited to late payments greater than 60 days, a low DSC calculation, bankruptcy filings, casualty losses, or other issues that would cause a perceived increase in the risk of loss to the Bank. The final segment of the loan review process involves special reviews. These reviews target specific segments of the loan portfolio, i.e. credit cards, equity lines, consumer loans, construction loans, and other specific segments of the loan portfolio that management wishes to have reviewed. However, currently, the primary emphasis of the loan review function is loan relationship review work, and watch list management. The segments of the Company’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. In reviewing risk, management has determined there to be several different risk categories within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) the commercial loan portfolio; (ii) the commercial real estate loan portfolio; (iii) the construction loan portfolio; (iv) the consumer loan portfolio; and, (v) the residential loan portfolio. The commercial real estate (“CRE”) loan segment is further disaggregated into two classes. Non-owner occupied CRE loans, which include loans secured by non-owner occupied nonfarm nonresidential properties, generally have a greater risk profile than all other CRE loans, which include multifamily structures and owner-occupied commercial structures. The construction loan segment is further disaggregated into two classes. One-to-four family residential construction loans are generally made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. Commercial construction loans are generally made to developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures. Construction lending is generally considered to involve a higher degree of credit risk than long-term permanent financing. The following describes the Company’s basic methodology for computing its ALLL. On a quarterly basis, the ALLL methodology begins with the identification of loans subject to ASC 310. All loans that are rated “7” (Doubtful) are assessed as impaired based on the expectation that the full collection of principal and interest is in doubt. All loans that are rated “6” (Substandard) or are expected to be downgraded to “6”, require additional analysis to determine whether they may be impaired under ASC 310. All loans that are rated “5” (Special Mention) are presumed not to be impaired. However, “5” rated loans, together with any Troubled Debt Restructured (TDR) loan, may warrant further analysis before completing an assessment of impairment. For ASC 310 loans that are individually evaluated and found to be impaired (primarily those designated as Substandard and Doubtful), the associated ALLL will be based upon one of the three impairment measurement methods specified within ASC 310: (1) Present value of expected future cash flows discounted at the loan’s effective interest rate; (2) Loan’s observable market price; or (3) Fair value of the collateral. To determine the amount of loan loss exposure for the impaired ASC 310 loans, the value of collateral for secured loans is evaluated to determine the current value and potential exposure. The collateral value is adjusted for its age and condition, and, for real estate, adjusted for condition, location, and age of the most current appraisal. If the adjusted value of the collateral is less than the current principal balance, the difference is designated as direct exposure for loan loss calculations. The total balance of unsecured loans is considered as direct exposure. ASC 450 Loan Loss For all other loans, including individual loans determined not to be impaired under ASC 310, the associated ALLL is calculated in accordance with ASC 450 that provides for estimated credit losses likely to be realized on groups of loans with similar risk characteristics. The Company uses standard call report categories to segregate loans into groups with similar risk characteristics. Estimated credit losses reflect significant factors that affect the collectability of the portfolio as of the evaluation date. Key factors that influence risk within the Company’s loan portfolio are divided into three major categories: (1) Historical Loss Factor: To calculate the anticipated loan loss in each call report category for ASC 450 loans, the Company begins with the net loss in each category for each of the last twelve quarters. The Company uses a rolling twelve quarter weighted historical loss average where the most recent quarters are weighted heavier than the earlier quarters so that the calculation reflects current risk trends within the portfolio. The weighting used by the Company is similar to the Rule of 78’s with the net losses of the most recent quarter weighted at 12/78ths and those in the first quarter in the twelve quarter period weighted at 1/78 th . (2)External economic factors: Economic conditions have a significant impact on Company’s loan portfolio because deteriorating conditions can adversely impact both collateral values and the customer’s ability to service debt. Management has selected the following external factors as indicators of economic conditions: a. National GDP Growth Rate b. Local Unemployment Rates c. The Prime Rate The values for external factors are updated on a quarterly basis based on current economic data. (3)Internal process factors: Internal factors that influence loss rates as a result of risk management and control practices include the following: d. Past-Due Loans e. Non-Accrual Loans f. CRE Concentrations g. Loan Volume Level h. Level and Trend of Classified Loans The values for internal factors are updated on a quarterly basis based on current portfolio metrics. Once the quarterly ALLL is computed, the calculations are reviewed by the Company’s Senior Loan Officer, CEO, CFO, and Senior Lending Officers, including Credit Review personnel. The Company’s controller also performs a detailed review of the computations, estimates, etc. included in the ALLL calculation. The ALLL is then reviewed and approved by the Board of Directors. Loans Held for Sale The Company’s mortgage division, Highlands Home Mortgage, originates certain single family, residential first mortgage loans for sale on a presold basis. Loan sale activity is summarized below. This division began operations in the second quarter of 2016. Loans are typically sold to one of the various investors within 20 days of closing. Management feels the carrying amounts approximate the fair values of loans held for sale. Three-months ended March 31 2017 2016 Loans held for sale at end of period $ 3,063 $ - Proceeds from sales of mortgage loans originated for sale 5,578 Gain on sales of mortgage loans originated for sale $ 226 -

3. Income Taxes

3. Income Taxes	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
Income Taxes	Income tax expense for the three months ended March 31 is different than the amount computed by applying the statutory corporate federal income tax rate of 34% to income before taxes. The reasons for these differences are as follows: 2017 2016 Tax expense at statutory rate $ 500 $ 245 Reduction in taxes from: Tax-exempt interest (29) (26) Other, net (32) (28) Income tax expense $ 439 $ 191

4. Capital Requirements

4. Capital Requirements	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
Capital Requirements	Regulators of the Company and its subsidiary, Highlands Union Bank (the “Bank”), have implemented risk-based capital guidelines which require compliance with certain minimum capital ratios as a percent of assets and other certain off-balance sheet items that are adjusted for predefined credit risk factors. On July 7, 2013 the Federal Reserve Board approved Basel III Final Rules to begin implementation January 1, 2015. The desired overall objective of Basel III is to improve the banking sector’s ability to absorb shocks arising from financial and economic stress. The Final Rule includes a new Common Equity Tier 1 (CET1) minimum ratio and raises the Tier 1 Risk Weighted Assets ratio to 6% from 4%. In addition, the new rules require a bank to maintain a capital conservation buffer of between 2 and 2 ½ % beginning in 2016. Additionally, the new rules increase the risk weighting of various assets. The new rules will be phased in beginning in 2015 with complete compliance required by 2019. Generally, the Basel III Final Rule requires banks to maintain higher levels of common equity and regulatory capital. On December 18, 2014, the President of the United States signed into law Public Law 113-250 (the “Act”), which directs the Board of Governors of the Federal Reserve System (Board) to propose revisions to the Small Bank Holding Company Policy Statement (Policy Statement) to raise the total consolidated asset limit in the Policy Statement from $500 million to $1 billion. On February 5, 2015 the Company received notification from the Federal Reserve Bank that it would no longer be required to report holding company consolidated capital ratios. The following tables present the capital ratios for the Bank only. March 31, 2017 Entity Tier 1 Total Risk Based Leverage CET 1 Highlands Union Bank 12.15% 13.37% 7.80% 12.15% December 31, 2016 Entity Tier 1 Total Risk Based Leverage CET 1 Highlands Union Bank 11.78% 13.02% 7.59% 11.78%

5. Capital Issuances _ Awards

5. Capital Issuances / Awards	3 Months Ended
	Mar. 31, 2017
Capital Issuances Awards
Capital Issuances / Awards	In January of 2016, the Company’s CEO, Timothy K. Schools purchased 235,294 shares of the Company’s common stock at a price of $4.25 per share in a private placement as disclosed on Form 4 on January 12, 2016. In February 2016, two of the private placement purchasers participating in the capital raise in 2014, MFP Partners LP and Deerhill Pond Investment Partners, LP, each purchased another 12,744 shares of common stock at $4.25 per share which allowed them to maintain the same ownership percentage that was held immediately prior to Mr. Schools’ purchase. The company down-streamed $1,150 to the Bank. Effective September 6, 2016, the Company and Timothy K. Schools, the Company’s President and Chief Executive Officer, executed an amendment to Mr. Schools’ employment agreement. The amendment provides for the grant of 86,667 restricted shares of the Company’s common stock. The Restricted Shares will vest 50% on the first anniversary of the Award Date and 50% on the second anniversary of the Award Date. The restricted shares are being expensed over the 2 year vesting period based on the grant date fair value of the shares.

6. Stock and Earnings Per Share

6. Stock and Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
Stock and Earnings Per Share	Earnings per common share is computed using the weighted average outstanding shares for the three months ended March 31, 2017 and 2016. During 2014, the Company issued a total of 2,092,287 shares of Series A preferred stock (See Note 5). These preferred shares are non-voting mandatorily convertible non-cumulative preferred shares which are entitled to receive dividends equal to dividends paid on the Company’s common shares. The Series A preferred shares will rank pari passu with the common stock with respect to all terms (other than voting), including, the payment of dividends or distributions, and payments and rights upon liquidation and dissolution. The restricted stock awards issued by the Company to Mr. Schools are also included in the diluted shares total. The following is a reconciliation of the numerators and the denominators of the basic and diluted earnings per common share computation: For the three months ended March 31 2017 2016 Income available to common stockholders $ 1,032 $ 530 Weighted average shares outstanding 8,113 8,089 Shares outstanding including assumed conversion 10,292 10,205 Basic earnings per common share $ 0.13 $ 0.07 Fully diluted earnings per share (including convertible preferred shares outstanding and restricted stock) $ 0.10 $ 0.05

7. Commitments and Contingencie

7. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
Commitments and Contingencies	The Bank is a party to various financial instruments with off-balance sheet risk arising in the normal course of business to meet the financing needs of its customers. Those financial instruments include commitments to extend credit and standby letters of credit. At March 31, 2017, these commitments included: standby letters of credit of $843; equity lines of credit of $15,155; credit card lines of credit of $6,729; commercial real estate, construction and land development commitments of $1,980; and other unused commitments to fund interest earning assets of $21,491.

8. Fair Value

8. Fair Value	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
Fair Value	The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Fair Value Hierarchy Under ASC Topic 820 on Fair Value Measurements and Disclosures, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon third party models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Recurring - Investment Securities Available for Sale Securities classified as available for sale are reported at fair value utilizing Level 2. For Level 2 securities, the Company obtains fair value measurements from multiple independent third party sources. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things. The following tables summarize the Company’s available for sale securities portfolio measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, segregated by the level of the valuation inputs within the fair value hierarchy. March 31, 2017 Level 1 Level 2 Level 3 Total Fair Value Available for Sale Securities State and Political Subdivisions $ - $ 12,903 $ - $ 12,903 Mortgage Backed Securities - 75,431 - 75,431 SBA Pools - 8,050 - 8,050 Total AFS Securities $ - $ 96,384 $ - $ 96,384 December 31, 2016 Level 1 Level 2 Level 3 Total Fair Value Available for Sale Securities State and Political Subdivisions $ - $ 12,451 $ - $ 12,451 Mortgage Backed Securities - 74,288 - 74,288 SBA Pools - 8,334 - 8,334 Total AFS Securities $ - $ 95,073 $ - $ 95,073 Non Recurring - Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including recently appraised collateral value and /or tax assessed value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At March 31, 2017 and December 31, 2016, all of the total impaired loans were evaluated based on the fair value of the collateral or the present value of the future cash flows. The Company frequently obtains appraisals prepared by external professional appraisers and applies discounts ranging from 8% to 40% depending on type of property, condition, location, etc. The Company also, in certain instances, prepares internally generated valuations from on-site inspections, third-party valuation models or other information. Non Recurring – Loans Held for Sale Loans held for sale are carried at the lower of cost or market value. The fair value of loans held for sale is based on what secondary markets are currently offering for loans with similar characteristics. As such, the Company considers loans held for sale as nonrecurring Level 2. Non Recurring –Other Real Estate Owned / Repossessions / Real estate held for sale Other Real Estate Owned and repossessions are adjusted to fair value upon transfer of the loans to Other Real Estate Owned and repossessions. Subsequently, foreclosed assets and repossessions are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices or recent appraised values of the collateral which the Company considers as nonrecurring Level 2. When the current appraised value is not available and /or further discounted below the most recent appraised value less selling costs due to such things as absorption rates and market conditions, the Company records the foreclosed assets within Level 3 of the fair value hierarchy. Real estate held for sale is adjusted to fair value upon transfer from fixed assets or when no longer being used for banking purposes. The following table summarizes the Company’s assets at fair value on a non - recurring basis as of March 31, 2017 and December 31, 2016 segregated by the level of the valuation inputs within the fair value hierarchy. The tables disclose the recorded investment of impaired loans requiring a specific allowance. March 31, 2017 Level 1 Level 2 Level 3 Total Fair Value Impaired Loans $ - $ - $ 9,036 $ 9,036 Loans held for Sale 3,063 - $ 3 ,063 Repossessions/OREO, net $ - $ - $ 2,741 $ 2,741 Real Estate Held for sale $ - $ - $ 1,662 $ 1,662 December 31, 2016 Level 1 Level 2 Level 3 Total Fair Value Impaired Loans $ - $ - $ 4,869 $ 4,869 Loans held for sale 1,255 - 1,255 Repossessions/OREO, net $ - $ - $ 2,768 $ 2,768 Real Estate Held for sale $ - $ - $ 1,680 $ 1,680 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses Level 3 inputs to determine fair value (dollars in thousands): Quantitative Information about Level 3 Fair Value Measurements March Valuation Unobservable Range 12/31/16 3/31/17 Techniques Input (2) (Weighted Average) OREO, net $ 2,768 $ 2,741 Appraisal of collateral (1) Appraisal adjustments 0% to 45% (13%) Liquidation expenses 0% to 10% (9%) Real Estate held for sale $ 1,680 $ 1,662 Appraisal of collateral (1) Appraisal adjustments 0% to 50% (40%) Liquidation expenses 0% to 10% (8%) Impaired loans $ 4,869 $ 9,036 Fair value of collateral –real estate (1), (3) Appraisal adjustments 0% to 10% (9%) Fair value of collateral –equipment, inventory, other (1), (3) Appraisal adjustments 25% to 50% (33%) Liquidation expenses 0% to 10% (9%) Valuation adjustments and liquidation cost adjustments represent unobservable inputs for OREO and impaired loans. The ranges of discounts applied are based on age of independent appraisals, type and condition of collateral, current market conditions, and experience with the local market. (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (3) Includes qualitative adjustments by management. General The Company has no liabilities carried at fair value or measured at fair value on a recurring or non-recurring basis. Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Cash and Cash Equivalents The carrying amount reported in the balance sheets for cash, short-term investments and federal funds sold approximates fair value. Securities Available for Sale Fair values are determined in the manner as described above. Other Investments Other investments include Federal Home Loan Bank stock, Federal Reserve Bank stock, Community Bankers Bank stock, and Pacific Coast Bankers Bank. The carrying value of those securities approximates fair value based on the redemption provisions of those Banks. Also included in other investments are certificates of deposit purchased from other FDIC insured banks in which the carrying amount approximates fair value. Loans The fair value of loans represent the amount at which the loans of the Bank could be exchanged on the open market, based upon the current lending rate for similar types of lending arrangements discounted over the remaining life of the loans. For fixed rate loans and for variable rate loans with infrequent re-pricing or re-pricing limits, fair value is based on discounted cash flows using current market rates applied to the cash flow analysis. Deposits The fair value of time deposits is based on discounted cash flows using current market rates applied to the cash flow analysis for each time deposit. Other non-maturity deposits are reported at their carrying values. Other Short-Term Borrowings Fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Estimated maturity dates are also included in the calculation of fair value for these borrowings. Long-term Debt and Capital Securities Rates currently available to the Company for debt with similar terms and remaining maturities or established call prices are used to estimate fair value of existing debt. Off-Balance Sheet Instruments The amount of off-balance sheet commitments to extend credit, standby letters of credit, and financial guarantees, is considered equal to fair value. Because of the uncertainty involved in attempting to assess the likelihood and timing of commitments being drawn upon, coupled with the lack of an established market and the wide diversity of fee structures, the Company does not believe it is meaningful to provide an estimate of fair value that differs from the given value of the commitment. The carrying amounts and fair values of the Company's financial instruments at March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 56,188 $ 56,188 $ 50,385 $ 50,385 Securities available for sale 96,384 96,384 95,073 95,073 Other investments 6,385 6,385 6,637 6,637 Loans, net 404,383 404,043 404,838 406,851 Deposits (495,467) (427,552) (489,869) (422,730) Other short-term borrowings (27,552) (27,781) (27,552) (27,958) Long-term debt (40,133) (41,555) (40,146) (41,825)

9. Investment Securities Availa

9. Investment Securities Available For Sale	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
Investment Securities Available For Sale	The amortized cost and market value of securities available for sale are as follows: March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 13,455 $ 31 $ 583 $ 12,903 Mortgage backed securities 76,478 86 1,133 75,431 SBA Pools 8,216 4 170 8,050 $ 98,149 $ 121 $ 1,886 $ 96,384 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 13,013 $ 41 $ 603 $ 12,451 Mortgage backed securities 75,384 93 1,189 74,288 SBA Pools 8,533 6 205 8,334 $ 96,930 $ 140 $ 1,997 $ 95,073 Investment securities available for sale with a carrying value of $31,442 and $33,238 at March 31, 2017 and December 31, 2016 respectively, and a market value of $30,961 and $32,698 at March 31, 2017 and December 31, 2016, respectively, were pledged as collateral on public deposits, FHLB advances and for other purposes as required or permitted by law. The following table presents the age of gross unrealized losses and fair value by investment category: March 31, 2017 Less Than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses State and political subdivisions $ 9,907 $ 583 $ - $ - $ 9,907 $ 583 Mortgage-backed securities 66,109 1,077 1,286 56 67,395 1,133 SBA Pools 7,106 154 554 16 7,660 170 Total $ 83,122 $ 1,814 $ 1,840 $ 72 $84,962 $ 1,886 December 31, 2016 Less Than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses State and political subdivisions $ 9,191 $ 603 $ - $ - $ 9,191 $ 603 Mortgage-backed securities 66,878 1,189 - - 66,878 1,189 SBA Pools 7,587 205 - - 7,587 205 Total $ 83,656 $ 1,997 $ - $ - $83,656 $ 1,997 The Company assesses its securities for OTTI quarterly by reviewing credit ratings, financial and regulatory reports as well as other pertinent published financial data. As of March 31, 2017 and December 31, 2016, the Company's assessment revealed no impairment other than that deemed temporary on those securities. The amortized cost and estimated fair value of securities available for sale at March 31, 2017 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Approximate Market Value Due in one year or less $ 555 $ 558 Due after one year through five years 1,431 1,446 Due after five years through ten years 3 3 Due after ten years 19,682 18,946 21,671 20,953 Mortgage-backed securities 76,478 75,431 $ 98,149 $ 96,384

10. Formal Written Agreement

10. Formal Written Agreement	3 Months Ended
	Mar. 31, 2017
Formal Written Agreement
Formal Written Agreement	On October 13, 2010, the Company and Bank entered into a written agreement (“Written Agreement”) with the Federal Reserve Bank of Richmond (the “Reserve Bank”). Under the terms of the Written Agreement, the Bank has agreed to develop and submit to the Reserve Bank for approval within the time periods specified therein written plans or programs to: · strengthen board oversight of the management and operations of the Bank; · strengthen credit risk management and administration; · provide for the effective grading of the Bank’s loan portfolio; · summarize the findings of its review of the adequacy of the staffing of its loan review function; · improve the Bank’s position with respect to loans, relationships, or other assets in excess of $500,000 that currently are, or in the future become past due more than 90 days, on the Bank’s problem loan list, or adversely classified in any report of examination of the Bank; · review and revise the Bank’s methodology for determining the allowance for loan and lease losses (“ALLL”) and maintain an adequate ALLL; · maintain sufficient capital at the Company and the Bank; · establish a revised written contingency funding plan; · establish a revised written strategic and capital plan; · establish a revised investment policy; · improve the Bank’s earnings and overall condition; · revise the Bank’s information technology program; · establish a disaster recovery and business continuity program; and, · establish a committee to monitor compliance with all aspects of the written agreement. Further, both the Company and the Bank have agreed to refrain from declaring or paying dividends without prior regulatory approval. The Company has agreed that it will not take any other form of payment representing a reduction in Bank’s capital or make any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities without prior regulatory approval. The Company also has agreed not to incur, increase or guarantee any debt or not to purchase or redeem any shares of its stock without prior regulatory approval.

11. Summary of Significant Acco

11. Summary of Significant Accounting Policy Update For Certain Required Disclosures	3 Months Ended
	Mar. 31, 2017
Notes To Financial Statements Abstract
Summary of Significant Accounting Policy Update For Certain Required Disclosures	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 was effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016. ASU No. 2015-14 issued in August 2015 deferred the effective date of this Update to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The adoption of this ASU is not expected to have a material effect on the Company's current financial position or results of operations; however, it may impact the reporting of future financial statement disclosures. In January 2016, ASU No. 2016-01 Financial Instruments--Overall (Subtopic 825-10) was issued by the FASB. The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect this ASU to have a material effect on its financial statements. In June 2016, ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" was issued by the FASB. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The amendments are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows.

11. Summary of Significant Ac19

11. Summary of Significant Accounting Policy Update For Certain Required Disclosures (Policies)	3 Months Ended
	Mar. 31, 2017
Summary Of Significant Accounting Policy Update For Certain Required Disclosures Policies
Recently Issued Accounting Pronouncements	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 was effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016. ASU No. 2015-14 issued in August 2015 deferred the effective date of this Update to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The adoption of this ASU is not expected to have a material effect on the Company's current financial position or results of operations; however, it may impact the reporting of future financial statement disclosures. In January 2016, ASU No. 2016-01 Financial Instruments--Overall (Subtopic 825-10) was issued by the FASB. The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect this ASU to have a material effect on its financial statements. In June 2016, ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" was issued by the FASB. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost”. The amendments require that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. The amendments are effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company's financial position, results of operations or cash flows.

2. Loans and Allowance for Lo20

2. Loans and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure Loans And Allowance For Loan Losses Tables Abstract
Composition of net loans	March 31, 2017 December 31, 2016 Real Estate Secured: Residential 1-4 family $ 183,080 $ 186,695 Multifamily 22,723 22,630 Construction and Land Loans 16,521 15,978 Commercial, Owner Occupied 69,298 72,383 Commercial, Non-owner occupied 29,404 28,818 Second mortgages 6,195 6,934 Equity lines of credit 19,882 13,395 Farmland 12,283 12,194 359,386 359,027 Secured (other) and unsecured Personal 16,777 17,745 Commercial 30,238 29,977 Agricultural 3,169 3,490 50,184 51,212 Overdrafts 260 142 409,830 410,381 Less: Allowance for loan losses 4,728 4,829 Net deferred fees 719 714 5,447 5,543 Loans, net $ 404,383 $ 404,838
Analysis of past due loans	The following table is an analysis of past due loans as of March 31, 2017 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Real Estate Secured Residential 1-4 family $ 388 $ 39 $ 819 $ 1,246 $ 181,834 $ 183,080 $ - Equity lines of credit - - 10 10 19,872 19,882 - Multifamily - - - - 22,723 22,723 - Farmland 411 - 193 604 11,679 12,283 - Construction, Land Development, Other Land Loans 143 - - 143 16,378 16,521 - Commercial Real Estate- Owner Occupied - - 1,643 1,643 67,655 69,298 - Commercial Real Estate- Non Owner Occupied - - 346 346 29,058 29,404 - Second Mortgages - - 18 18 6,177 6,195 - Non Real Estate Secured Personal 115 30 26 171 16,866 17,037 - Commercial 40 38 397 475 29,763 30,238 - Agricultural - - - - 3,169 3,169 - Total $ 1,097 $ 107 $ 3,452 $ 4,656 $ 405,174 $ 409,830 $ - The following table is an analysis of past due loans as of December 31, 2016: 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment > 90 Days and Accruing Real Estate Secured Residential 1-4 family $ 841 $ 242 $ 1,000 $ 2,083 $ 184,612 $ 186,695 $ - Equity lines of credit - 30 10 40 13,355 13,395 - Multifamily - - - - 22,630 22,630 - Farmland - 47 564 611 11,583 12,194 - Construction, Land Development, Other Land Loans 39 - - 39 15,939 15,978 - Commercial Real Estate- Owner Occupied 14 - 3,868 3,882 68,501 72,383 2,210 Commercial Real Estate- Non Owner Occupied - - - - 28,818 28,818 - Second Mortgages 160 1 18 179 6,755 6,934 - Non Real Estate Secured Personal 118 23 12 153 17,734 17,887 - Commercial 142 54 462 658 29,319 29,977 - Agricultural - 7 - 7 3,483 3,490 - Total $ 1,314 $ 404 $ 5,934 $ 7,652 $ 402,729 $ 410,381 $ 2,210
Schedule of non-accrual loans	March 31, 2017 December 31, 2016 Real Estate Secured Residential 1-4 Family $ 819 $ 1,275 Multifamily - - Construction and Land Loans - - Commercial-Owner Occupied 1,643 1,658 Commercial- Non Owner Occupied 346 - Second Mortgages 18 18 Equity Lines of Credit 10 10 Farmland 193 564 Secured (other) and Unsecured Personal 26 12 Commercial 397 462 Agricultural - - Total $ 3,452 $ 3,999
Residential real estate current	Number 03/31/2017 Balance Residential real estate in the process of foreclosure 4 $ 678 Foreclosed residential real estate 6 $ 334
Credit Risk Profile by Internally Assigned Grade	Credit Risk Profile by Internally Assigned Grade as of March 31, 2017 Grade (1) Residential 1-4 Family Multifamily Farmland Construction, Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate Non-Owner Occupied Quality 32,409 - 18 1,714 3,823 363 Satisfactory 102,826 18,147 7,955 5,129 36,625 16,799 Acceptable 40,789 1,716 3,441 7,744 21,838 8,236 Special Mention 3,191 1,880 - - 4,401 126 Substandard 3,865 980 869 1,934 2,611 3,880 Doubtful - - - - - - Total $ 183,080 $ 22,723 $ 12,283 $ 16,521 $ 69,298 $ 29,404 Credit Risk Profile by Internally Assigned Grade as of December 31, 2016 Grade (1) Residential 1-4 Family Multifamily Farmland Construction, Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate Non-Owner Occupied Quality $ 32,054 $ - $ 19 $ 1,941 $ 3,686 $ 387 Satisfactory 106,154 18,335 7,823 5,969 36,806 15,198 Acceptable 41,369 1,410 3,474 5,961 22,767 5,119 Special Mention 3,399 1,896 - - 4,435 4,221 Substandard 3,719 989 878 2,107 4,689 3,893 Doubtful - - - - - - Total $ 186,695 $ 22,630 $ 12,194 $ 15,978 $ 72,383 $ 28,818
Credit Risk Profile based on payment activity	Credit Risk Profile based on payment activity as of March 31, 2017 Consumer - Non Real Estate Equity Line of Credit /Second Mortgages Commercial - Non Real Estate Agricultural - Non Real Estate Performing $ 17,011 $ 26,049 $ 29,841 $ 3,169 Nonperforming (>90 days past due) 26 28 397 - Total $ 17,037 $ 26,077 $ 30,238 $ 3,169 Credit Risk Profile based on payment activity as of December 31, 2016 Consumer - Non Real Estate Equity Line of Credit /Second Mortgages Commercial - Non Real Estate Agricultural - Non Real Estate Performing $ 17,875 $ 20,301 $ 29,515 $ 3,490 Nonperforming (>90 days past due) 12 28 462 - Total $ 17,887 $ 20,329 $ 29,977 $ 3,490
Impaired loans	The following tables reflect the Bank’s impaired loans at March 31, 2017: March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With No Related Allowance Real Estate Secured Residential 1-4 family $ 5,699 $ 5,699 $ - $ 5,273 $ 70 Equity lines of credit - - - 12 - Multifamily 980 980 - 984 13 Farmland 582 582 - 633 13 Construction, Land Development, Other Land Loans 1,536 1,536 - 1,638 23 Commercial Real Estate- Owner Occupied 826 826 - 3,314 5 Commercial Real Estate- Non Owner Occupied 346 346 - 1,114 - Second Mortgages 64 64 - 125 1 Non Real Estate Secured Personal /Consumer - - - 7 - Commercial - - - 21 - Agricultural - - - - - Total $ 10,033 $ 10,033 $ - $ 13,121 $ 125 March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With an Allowance Recorded Real Estate Secured Residential 1-4 family $ 697 $ 697 $ 47 $ 578 $ 7 Equity lines of credit - - - - - Multifamily - - - - - Farmland 191 191 20 191 2 Construction, Land Development, Other Land Loans 366 366 20 366 6 Commercial Real Estate- Owner Occupied 3,437 4,437 960 2,288 49 Commercial Real Estate- Non Owner Occupied 3,879 3,879 768 2,944 46 Second Mortgages - - - 9 - Non Real Estate Secured Personal /Consumer - - - 25 - Commercial 466 466 280 550 1 Agricultural - - - - - Total $ 9,036 $ 10,036 $ 2,095 $ 6,951 $ 111 The following tables reflect the Bank’s impaired loans at December 31, 2016: December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no Related Allowance Real Estate Secured Residential 1-4 family $ 4,848 $ 4,848 $ - $ 5,963 $ 200 Equity lines of credit 25 25 - 38 1 Multifamily 989 989 - 1,005 1 Farmland 685 685 - 750 24 Construction, Land Development, Other Land Loans 1,741 1,741 - 1,643 114 Commercial Real Estate- Owner Occupied 5,802 5,802 - 5,685 390 Commercial Real Estate- Non Owner Occupied 1,883 1,883 - 941 39 Second Mortgages 186 186 - 292 8 Non Real Estate Secured Personal 14 14 - 41 1 Commercial 43 43 - 179 3 Agricultural - - - - - Total $ 16,216 $ 16,216 $ - $ 16,537 $ 781 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With an Allowance Recorded Real Estate Secured Residential 1-4 family $ 460 $ 460 $ 36 $ 1,153 $ 14 Equity lines of credit - - - - - Multifamily - - - - - Farmland 192 192 16 96 11 Construction, Land Development, Other Land Loans 366 366 20 406 22 Commercial Real Estate- Owner Occupied 1,139 2,139 558 1,629 Commercial Real Estate- Non Owner Occupied 2,009 2,009 314 1,947 41 Second Mortgages 18 18 9 18 - Non Real Estate Secured Personal 51 51 29 82 3 Commercial 634 634 365 652 16 Agricultural - - - - - Total $ 4,869 $ 5,869 $ 1,347 $ 5,983 $ 107
Allowance for loan losses and the recorded investment in loans by loan category	Three months ended March 31, 2017 Residential 1-4 Family Multifamily Construction and Land Loans Commercial Owner Occupied Commercial Non-Owner Occupied Second Mortgages Equity Line of Credit Farmland Personal and Overdrafts Commercial and Agricultural Unallocated Total Allowance for Credit Losses: Beginning Balance December 31, 2016 $ 371 $ - $ 21 $ 1,339 $ 445 $ 15 $ 27 $ 16 $ 802 $ 535 $ 1,258 $ 4,829 Provision for Credit Losses (16) - (1) 350 403 (11) 4 37 204 (99) (854) 17 Charge-offs 14 - - - - - - - 79 59 - 152 Recoveries (3) - (1) - (1) - - (1) (25) (3) - (34) Net Charge-offs 11 - (1) - (1) - - (1) 54 56 - 118 Ending Balance March 31, 2017 344 - 21 1,689 849 4 31 54 952 380 404 4,728 Ending Balance: Individually evaluated for impairment 47 - 20 960 768 - - 20 - 280 - 2,095 Ending Balance: Collectively evaluated for impairment 297 - 1 729 81 4 31 34 952 100 404 2,633 Loans: Ending Balance: Individually Evaluated for Impairment 6,396 980 1,902 4,263 4,225 64 - 773 260 466 - 19,329 Ending Balance: Collectively Evaluated for Impairment 176,684 21,743 14,619 65,035 25,179 6,131 19,882 11,510 16,777 32,941 - 390,501 Ending Balance: March 31, 2017 $183,080 $22,723 $16,521 $69,298 $29,404 $6,195 $19,882 $12,283 $17,037 $33,407 - $409,830 Three months ended March 31, 2016 Residential 1-4 Family Multifamily Construction and Land Loans Commercial Owner Occupied Commercial Non-Owner Occupied Second Mortgages Equity Line of Credit Farmland Personal and Overdrafts Commercial and Agricultural Unallocated Total Allowance for Credit Losses: Beginning Balance December 31, 2015 $ 654 $ - $ 37 $ 1,012 $ 748 $ 43 $ 20 $ 7 $ 704 $ 886 $ 1,543 $ 5,654 Provision for Credit Losses (33) - (18) 97 (130) 40 (3) (1) (94) 60 306 224 Charge-offs 27 - - - - - - - 139 23 - 189 Recoveries (1) - (2) - - - (1) - (131) (1) - (136) Net Charge-offs 26 - (2) - - - (1) - 8 22 - 53 Ending Balance March 31, 2016 595 - 21 1,109 618 83 18 6 602 924 1,849 5,825 Ending Balance: Individually evaluated for impairment 228 - 21 925 283 59 - - 42 599 - 2,157 Ending Balance: Collectively Evaluated for Impairment 367 - - 184 335 24 18 6 560 325 1,849 3,668 Loans: Ending Balance: Individually Evaluated for Impairment 8,069 1,009 1,995 7,729 1,878 427 50 812 147 966 - 23,082 Ending Balance: Collectively Evaluated for Impairment 189,709 21,875 15,798 64,343 31,449 7,759 6,230 11,566 20,330 36,792 - 405,851 Ending Balance: March 31, 2016 $197,778 $22,884 $17,793 $72,072 $33,327 $8,186 $6,280 $12,378 $20,477 $37,758 - $428,933
Troubled debt restructurings	Troubled Debt Restructurings –Three months ended March 31, 2017 Interest only Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total - - - Troubled Debt Restructurings Below Market Rate Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total - - - Troubled Debt Restructurings Loan term extension Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Business Commercial Agricultural Total - - - Troubled Debt Restructurings All Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Total Restructurings - - - Troubled Debt Restructurings That Subsequently Defaulted Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total - - - Troubled Debt Restructurings –Three months ended March 31, 2016 Interest only Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland 1 57 57 Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied 1 92 92 Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total 2 149 149 Troubled Debt Restructurings Below Market Rate Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family 1 848 848 Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total 1 848 848 Troubled Debt Restructurings Loan term extension Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Business Commercial Agricultural Total Troubled Debt Restructurings All Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Total Restructurings 3 997 997 Troubled Debt Restructurings That Subsequently Defaulted Number of Contracts Pre- Modification Outstanding Recorded Investment Post - Modification Recorded Investment Real Estate Secured Residential 1-4 family Equity lines of credit Multifamily Farmland Construction, Land Development, Other Land Loans Commercial Real Estate- Owner Occupied Commercial Real Estate- Non Owner Occupied Second Mortgages Non Real Estate Secured Personal / Consumer Commercial Agricultural Total - - -
Loans held for sale	Three-months ended March 31 2017 2016 Loans held for sale at end of period $ 3,063 $ - Proceeds from sales of mortgage loans originated for sale 5,578 Gain on sales of mortgage loans originated for sale $ 226 -

3. Income Taxes (Tables)

3. Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2017
Loans: [Abstract]
Income tax reconciliation	2017 2016 Tax expense at statutory rate $ 500 $ 245 Reduction in taxes from: Tax-exempt interest (29) (26) Other, net (32) (28) Income tax expense $ 439 $ 191

4. Capital Requirements (Tables

4. Capital Requirements (Tables)	3 Months Ended
	Mar. 31, 2017
Farmland, real estate secured impaired loans, fair value disclosure
Schedule of Capital Ratios as Required by Regulators	March 31, 2017 Entity Tier 1 Total Risk Based Leverage CET 1 Highlands Union Bank 12.15% 13.37% 7.80% 12.15% December 31, 2016 Entity Tier 1 Total Risk Based Leverage CET 1 Highlands Union Bank 11.78% 13.02% 7.59% 11.78%

6. Per Share Amounts (Tables)

6. Per Share Amounts (Tables)	3 Months Ended
	Mar. 31, 2017
Past due days
Schedule of Earnings Per Share, Basic and Diluted	For the three months ended March 31 2017 2016 Income available to common stockholders $ 1,032 $ 530 Weighted average shares outstanding 8,113 8,089 Shares outstanding including assumed conversion 10,292 10,205 Basic earnings per common share $ 0.13 $ 0.07 Fully diluted earnings per share (including convertible preferred shares outstanding and restricted stock) $ 0.10 $ 0.05

8. Fair Value (Tables)

8. Fair Value (Tables)	3 Months Ended
	Mar. 31, 2017
Liabilities Less Deposits
Available for sale securities portfolio measured at fair value on a recurring basis	March 31, 2017 Level 1 Level 2 Level 3 Total Fair Value Available for Sale Securities State and Political Subdivisions $ - $ 12,903 $ - $ 12,903 Mortgage Backed Securities - 75,431 - 75,431 SBA Pools - 8,050 - 8,050 Total AFS Securities $ - $ 96,384 $ - $ 96,384 December 31, 2016 Level 1 Level 2 Level 3 Total Fair Value Available for Sale Securities State and Political Subdivisions $ - $ 12,451 $ - $ 12,451 Mortgage Backed Securities - 74,288 - 74,288 SBA Pools - 8,334 - 8,334 Total AFS Securities $ - $ 95,073 $ - $ 95,073
Assets at fair value on a non - recurring basis segregated by the level of the valuation inputs within the fair value hierarchy	March 31, 2017 Level 1 Level 2 Level 3 Total Fair Value Impaired Loans $ - $ - $ 9,036 $ 9,036 Loans held for Sale 3,063 - $ 3 ,063 Repossessions/OREO, net $ - $ - $ 2,741 $ 2,741 Real Estate Held for sale $ - $ - $ 1,662 $ 1,662 December 31, 2016 Level 1 Level 2 Level 3 Total Fair Value Impaired Loans $ - $ - $ 4,869 $ 4,869 Loans held for sale 1,255 - 1,255 Repossessions/OREO, net $ - $ - $ 2,768 $ 2,768 Real Estate Held for sale $ - $ - $ 1,680 $ 1,680
Level 3 inputs for assets measured on a nonrecurring basis	Quantitative Information about Level 3 Fair Value Measurements March Valuation Unobservable Range 12/31/16 3/31/17 Techniques Input (2) (Weighted Average) OREO, net $ 2,768 $ 2,741 Appraisal of collateral (1) Appraisal adjustments 0% to 45% (13%) Liquidation expenses 0% to 10% (9%) Real Estate held for sale $ 1,680 $ 1,662 Appraisal of collateral (1) Apprais al adjustments 0% to 50% (40%) Liquidation expenses 0% to 10% (8%) Impaired loans $ 4,869 $ 9,036 Fair value of collateral –real estate (1), (3) Appraisal adjustments 0% to 10% (9%) Fair value of collateral –equipment, inventory, other (1), (3) Appraisal adjustments 25% to 50% (33%) Liquidation expenses 0% to 10% (9%)
Carrying amounts and fair values of financial instruments	March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 56,188 $ 56,188 $ 50,385 $ 50,385 Securities available for sale 96,384 96,384 95,073 95,073 Other investments 6,385 6,385 6,637 6,637 Loans, net 404,383 404,043 404,838 406,851 Deposits (495,467) (427,552) (489,869) (422,730) Other short-term borrowings (27,552) (27,781) (27,552) (27,958) Long-term debt (40,133) (41,555) (40,146) (41,825)

9. Investment Securities Avai25

9. Investment Securities Available For Sale (Tables)	3 Months Ended
	Mar. 31, 2017
Maximum amount of all loan relationships review in addition to annual loan relationship
Schedule of amortized cost and market value of securities available-for-sale	March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 13,455 $ 31 $ 583 $ 12,903 Mortgage backed securities 76,478 86 1,133 75,431 SBA Pools 8,216 4 170 8,050 $ 98,149 $ 121 $ 1,886 $ 96,384 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 13,013 $ 41 $ 603 $ 12,451 Mortgage backed securities 75,384 93 1,189 74,288 SBA Pools 8,533 6 205 8,334 $ 96,930 $ 140 $ 1,997 $ 95,073
Age of gross unrealized losses and fair value by investment category	March 31, 2017 Less Than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses State and political subdivisions $ 9,907 $ 583 $ - $ - $ 9,907 $ 583 Mortgage-backed securities 66,109 1,077 1,286 56 67,395 1,133 SBA Pools 7,106 154 554 16 7,660 170 Total $ 83,122 $ 1,814 $ 1,840 $ 72 $84,962 $ 1,886 December 31, 2016 Less Than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses State and political subdivisions $ 9,191 $ 603 $ - $ - $ 9,191 $ 603 Mortgage-backed securities 66,878 1,189 - - 66,878 1,189 SBA Pools 7,587 205 - - 7,587 205 Total $ 83,656 $ 1,997 $ - $ - $83,656 $ 1,997
Amortized cost and estimated fair value of securities available-for-sale by contractual maturity	Amortized Cost Approximate Market Value Due in one year or less $ 555 $ 558 Due after one year through five years 1,431 1,446 Due after five years through ten years 3 3 Due after ten years 19,682 18,946 21,671 20,953 Mortgage-backed securities 76,478 75,431 $ 98,149 $ 96,384

2. Loans and Allowance for Lo26

2. Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	$ 409,830	$ 410,381
Allowance for loan losses	4,728	4,829
Net deferred fees	719	714
Total allowances and net deferred fees	5,447	5,543
Loans, net	404,383	404,838
Analysis of past due loans
30 to 59 Days Past Due	1,097	1,314
60 to 89 Days Past Due	107	404
Greater Than 90 Days	3,452	5,934
Total Past Due	4,656	7,652
Current	405,174	402,729
Total Financing Receivables	409,830	410,381
Recorded Investment > 90 Days and Accruing	0	2,210
Non-accrual loans	3,452	3,999
Real Estate Secured [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	359,386	359,027
Real Estate Secured [Member] | Residential 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	183,080	186,695
Analysis of past due loans
30 to 59 Days Past Due	388	841
60 to 89 Days Past Due	39	242
Greater Than 90 Days	819	1,000
Total Past Due	1,246	2,083
Current	181,834	184,612
Total Financing Receivables	183,080	186,695
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	819	1,275
Real Estate Secured [Member] | Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	22,723	22,630
Analysis of past due loans
30 to 59 Days Past Due	0	0
60 to 89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Current	22,723	22,630
Total Financing Receivables	22,723	22,630
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	0	0
Real Estate Secured [Member] | Construction, Land Development, Other Land Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	16,521	15,978
Analysis of past due loans
30 to 59 Days Past Due	143	39
60 to 89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	143	39
Current	16,378	15,939
Total Financing Receivables	16,521	15,978
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	0	0
Real Estate Secured [Member] | Commercial Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	69,298	72,383
Analysis of past due loans
30 to 59 Days Past Due	0	14
60 to 89 Days Past Due	0	0
Greater Than 90 Days	1,643	3,868
Total Past Due	1,643	3,882
Current	67,655	68,501
Total Financing Receivables	69,298	72,383
Recorded Investment > 90 Days and Accruing	0	2,210
Non-accrual loans	1,643	1,658
Real Estate Secured [Member] | Commercial Non Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	29,404	28,818
Analysis of past due loans
30 to 59 Days Past Due	0	0
60 to 89 Days Past Due	0	0
Greater Than 90 Days	346	0
Total Past Due	346	0
Current	29,058	28,818
Total Financing Receivables	29,404	28,818
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	346	0
Real Estate Secured [Member] | Second Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	6,195	6,934
Analysis of past due loans
30 to 59 Days Past Due	0	160
60 to 89 Days Past Due	0	1
Greater Than 90 Days	18	18
Total Past Due	18	179
Current	6,177	6,755
Total Financing Receivables	6,195	6,934
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	18	18
Real Estate Secured [Member] | Equity Line of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	19,882	13,395
Analysis of past due loans
30 to 59 Days Past Due	0	0
60 to 89 Days Past Due	0	30
Greater Than 90 Days	10	10
Total Past Due	10	40
Current	19,872	13,355
Total Financing Receivables	19,882	13,395
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	10	10
Real Estate Secured [Member] | Farmland [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	12,283	12,194
Analysis of past due loans
30 to 59 Days Past Due	411	0
60 to 89 Days Past Due	0	47
Greater Than 90 Days	193	564
Total Past Due	604	611
Current	11,679	11,583
Total Financing Receivables	12,283	12,194
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	193	564
Non Real Estate Secured [Member] | Personal [Member]
Analysis of past due loans
30 to 59 Days Past Due	115	118
60 to 89 Days Past Due	30	23
Greater Than 90 Days	26	12
Total Past Due	171	153
Current	16,866	17,734
Total Financing Receivables	17,037	17,887
Recorded Investment > 90 Days and Accruing	0	0
Non Real Estate Secured [Member] | Commercial [Member]
Analysis of past due loans
30 to 59 Days Past Due	40	142
60 to 89 Days Past Due	38	54
Greater Than 90 Days	397	462
Total Past Due	475	658
Current	29,763	29,319
Total Financing Receivables	30,238	29,977
Recorded Investment > 90 Days and Accruing	0	0
Non Real Estate Secured [Member] | Agricultural [Member]
Analysis of past due loans
30 to 59 Days Past Due	0	0
60 to 89 Days Past Due	0	7
Greater Than 90 Days	0	0
Total Past Due	0	7
Current	3,169	3,483
Total Financing Receivables	3,169	3,490
Recorded Investment > 90 Days and Accruing	0	0
Secured (other) and unsecured [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	50,184	51,212
Secured (other) and unsecured [Member] | Personal [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	16,777	17,745
Analysis of past due loans
Non-accrual loans	26	12
Secured (other) and unsecured [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	30,238	29,977
Analysis of past due loans
Non-accrual loans	397	462
Secured (other) and unsecured [Member] | Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	3,169	3,490
Analysis of past due loans
Non-accrual loans	0	0
Secured (other) and unsecured [Member] | Overdrafts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross	$ 260	$ 142

2. Loans and Allowance for Lo27

2. Loans and Allowance for Loan Losses, Foreclosed (Details) $ in Thousands	Mar. 31, 2017USD ($)
Residential real estate in the process of foreclosure [Member]
Number	4
Value of Property	$ 678
Foreclosed residential real estate [Member]
Number	6
Value of Property	$ 334

2. Loans and Allowance for Lo28

2. Loans and Allowance for Loan Losses, Credit Risk Profile (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 183,080	$ 186,695
Residential 1-4 Family [Member] | Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	32,409	32,054
Residential 1-4 Family [Member] | Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	102,826	106,154
Residential 1-4 Family [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	40,789	41,369
Residential 1-4 Family [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,191	3,399
Residential 1-4 Family [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,865	3,719
Residential 1-4 Family [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Multifamily [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	22,723	22,630
Multifamily [Member] | Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Multifamily [Member] | Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	18,147	18,335
Multifamily [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,716	1,410
Multifamily [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,880	1,896
Multifamily [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	980	989
Multifamily [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Farmland [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	12,283	12,194
Farmland [Member] | Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	18	19
Farmland [Member] | Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	7,955	7,823
Farmland [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,441	3,474
Farmland [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Farmland [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	869	878
Farmland [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Construction, Land Development, Other Land Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	16,521	15,978
Construction, Land Development, Other Land Loans [Member] | Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,714	1,941
Construction, Land Development, Other Land Loans [Member] | Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	5,129	5,969
Construction, Land Development, Other Land Loans [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	7,744	5,961
Construction, Land Development, Other Land Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Construction, Land Development, Other Land Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,934	2,107
Construction, Land Development, Other Land Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Commercial Real Estate- Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	69,298	72,383
Commercial Real Estate- Owner Occupied [Member] | Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,823	3,686
Commercial Real Estate- Owner Occupied [Member] | Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	36,625	36,806
Commercial Real Estate- Owner Occupied [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	21,838	22,767
Commercial Real Estate- Owner Occupied [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	4,401	4,435
Commercial Real Estate- Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	2,611	4,689
Commercial Real Estate- Owner Occupied [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Commercial Real Estate - Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	29,404	28,818
Commercial Real Estate - Non Owner Occupied [Member] | Quality [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	363	387
Commercial Real Estate - Non Owner Occupied [Member] | Satisfactory [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	16,799	15,198
Commercial Real Estate - Non Owner Occupied [Member] | Acceptable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	8,236	5,119
Commercial Real Estate - Non Owner Occupied [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	126	4,221
Commercial Real Estate - Non Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,880	3,893
Commercial Real Estate - Non Owner Occupied [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Consumer Non Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	17,037	17,887
Consumer Non Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	17,011	17,875
Consumer Non Real Estate [Member] | Nonperforming (>90 days past due) [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	26	12
Equity Line of Credit Second Mortgages [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	26,077	20,329
Equity Line of Credit Second Mortgages [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	26,049	20,301
Equity Line of Credit Second Mortgages [Member] | Nonperforming (>90 days past due) [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	28	28
Commercial Non Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	30,238	29,977
Commercial Non Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	29,841	29,515
Commercial Non Real Estate [Member] | Nonperforming (>90 days past due) [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	397	462
Agricultural - Non Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,169	3,490
Agricultural - Non Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	3,169	3,490
Agricultural - Non Real Estate [Member] | Nonperforming (>90 days past due) [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 0	$ 0

2. Loans and Allowance for Lo29

2. Loans and Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Recorded Investment
With No Related Allowance	$ 10,033	$ 16,216
With Related Allowance	9,036	4,869
Unpaid Principal Balance
With No Related Allowance	10,033	16,216
With Related Allowance	10,036	5,869
Related Allowance	2,095	1,347
Average Recorded Investment
With No Related Allowance	13,121	16,537
With Related Allowance	6,951	5,983
Interest Income Recognized
With No Related Allowance	125	781
With Related Allowance	111	107
Real Estate Secured [Member] | Residential 1-4 Family [Member]
Recorded Investment
With No Related Allowance	5,699	4,848
With Related Allowance	697	460
Unpaid Principal Balance
With No Related Allowance	5,699	4,848
With Related Allowance	697	460
Related Allowance	47	36
Average Recorded Investment
With No Related Allowance	5,273	5,963
With Related Allowance	578	1,153
Interest Income Recognized
With No Related Allowance	70	200
With Related Allowance	7	14
Real Estate Secured [Member] | Equity Line of Credit [Member]
Recorded Investment
With No Related Allowance	0	25
With Related Allowance	0	0
Unpaid Principal Balance
With No Related Allowance	0	25
With Related Allowance	0	0
Related Allowance	0	0
Average Recorded Investment
With No Related Allowance	12	38
With Related Allowance	0	0
Interest Income Recognized
With No Related Allowance	0	1
With Related Allowance	0	0
Real Estate Secured [Member] | Multifamily [Member]
Recorded Investment
With No Related Allowance	980	989
With Related Allowance	0	0
Unpaid Principal Balance
With No Related Allowance	980	989
With Related Allowance	0	0
Related Allowance	0	0
Real Estate Secured [Member] | Farmland [Member]
Recorded Investment
With No Related Allowance	582	685
With Related Allowance	191	192
Unpaid Principal Balance
With No Related Allowance	582	685
With Related Allowance	191	192
Related Allowance	20	16
Average Recorded Investment
With No Related Allowance	633	750
With Related Allowance	191	96
Interest Income Recognized
With No Related Allowance	13	24
With Related Allowance	2	11
Real Estate Secured [Member] | Construction, Land Development, Other Land Loans [Member]
Recorded Investment
With No Related Allowance	1,536	1,741
With Related Allowance	366	366
Unpaid Principal Balance
With No Related Allowance	1,536	1,741
With Related Allowance	366	366
Related Allowance	20	20
Average Recorded Investment
With No Related Allowance	1,638	1,643
With Related Allowance	366	406
Interest Income Recognized
With No Related Allowance	23	114
With Related Allowance	6	22
Real Estate Secured [Member] | Commercial Real Estate- Owner Occupied [Member]
Recorded Investment
With No Related Allowance	826	5,802
With Related Allowance	3,437	1,139
Unpaid Principal Balance
With No Related Allowance	826	5,802
With Related Allowance	4,437	2,139
Related Allowance	960	558
Average Recorded Investment
With No Related Allowance	3,314	5,685
With Related Allowance	2,288	1,629
Interest Income Recognized
With No Related Allowance	5	390
With Related Allowance	49	0
Real Estate Secured [Member] | Commercial Real Estate - Non Owner Occupied [Member]
Recorded Investment
With No Related Allowance	346	1,883
With Related Allowance	3,879	2,009
Unpaid Principal Balance
With No Related Allowance	346	1,883
With Related Allowance	3,879	2,009
Related Allowance	768	314
Average Recorded Investment
With No Related Allowance	1,114	941
With Related Allowance	2,944	1,947
Interest Income Recognized
With No Related Allowance	0	39
With Related Allowance	46	41
Real Estate Secured [Member] | Second Mortgage [Member]
Recorded Investment
With No Related Allowance	64	186
With Related Allowance	0	18
Unpaid Principal Balance
With No Related Allowance	64	186
With Related Allowance	0	18
Related Allowance	0	9
Average Recorded Investment
With No Related Allowance	125	292
With Related Allowance	9	18
Interest Income Recognized
With No Related Allowance	1	8
With Related Allowance	0	0
Real Estate Secured [Member] | Multifamily [Member]
Average Recorded Investment
With No Related Allowance	984	1,005
With Related Allowance	0	0
Interest Income Recognized
With No Related Allowance	13	1
With Related Allowance	0	0
Non Real Estate Secured [Member] | Personal [Member]
Recorded Investment
With No Related Allowance	0	14
With Related Allowance	0	51
Unpaid Principal Balance
With No Related Allowance	0	14
With Related Allowance	0	51
Related Allowance	0	29
Average Recorded Investment
With No Related Allowance	7	41
With Related Allowance	25	82
Interest Income Recognized
With No Related Allowance	0	1
With Related Allowance	0	3
Non Real Estate Secured [Member] | Commercial [Member]
Recorded Investment
With No Related Allowance	0	43
With Related Allowance	466	634
Unpaid Principal Balance
With No Related Allowance	0	43
With Related Allowance	466	634
Related Allowance	280	365
Average Recorded Investment
With No Related Allowance	21	179
With Related Allowance	550	652
Interest Income Recognized
With No Related Allowance	0	3
With Related Allowance	1	16
Non Real Estate Secured [Member] | Agricultural [Member]
Recorded Investment
With No Related Allowance	0	0
With Related Allowance	0	0
Unpaid Principal Balance
With No Related Allowance	0	0
With Related Allowance	0	0
Related Allowance	0	0
Average Recorded Investment
With No Related Allowance	0	0
With Related Allowance	0	0
Interest Income Recognized
With No Related Allowance	0	0
With Related Allowance	$ 0	$ 0

2. Loans and Allowance for Lo30

2. Loans and Allowance for Loan Losses, Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Allowance for Credit Losses
Beginning Balance	$ 4,829	$ 5,654
Provision for Credit Losses	17	224
Charge-offs	152	189
Recoveries	(34)	(136)
Net Charge-offs	118	53
Ending Balance	4,728	5,825
Ending Balance: Individually evaluated for impairment	2,095	2,157
Ending Balance: Collectively evaluated for impairment	2,633	3,668
Loans:
Ending Balance: Individually Evaluated for Impairment	19,329	23,082
Ending balance: Collectively Evaluated for Impairment	390,501	405,851
Ending Balance	409,830	428,933
Residential 1-4 Family [Member]
Allowance for Credit Losses
Beginning Balance	371	654
Provision for Credit Losses	(16)	(33)
Charge-offs	14	27
Recoveries	(3)	(1)
Net Charge-offs	11	26
Ending Balance	344	595
Ending Balance: Individually evaluated for impairment	47	228
Ending Balance: Collectively evaluated for impairment	297	367
Loans:
Ending Balance: Individually Evaluated for Impairment	6,396	8,069
Ending balance: Collectively Evaluated for Impairment	176,684	189,709
Ending Balance	183,080	197,778
Multifamily [Member]
Allowance for Credit Losses
Beginning Balance	0	0
Provision for Credit Losses	0	0
Charge-offs	0	0
Recoveries	0	0
Net Charge-offs	0	0
Ending Balance	0	0
Ending Balance: Individually evaluated for impairment	0	0
Ending Balance: Collectively evaluated for impairment	0	0
Loans:
Ending Balance: Individually Evaluated for Impairment	980	1,009
Ending balance: Collectively Evaluated for Impairment	21,743	21,875
Ending Balance	22,723	22,884
Construction and Land Loans [Member]
Allowance for Credit Losses
Beginning Balance	21	37
Provision for Credit Losses	(1)	(18)
Charge-offs	0	0
Recoveries	(1)	(2)
Net Charge-offs	(1)	(2)
Ending Balance	21	21
Ending Balance: Individually evaluated for impairment	20	21
Ending Balance: Collectively evaluated for impairment	1	0
Loans:
Ending Balance: Individually Evaluated for Impairment	1,902	1,995
Ending balance: Collectively Evaluated for Impairment	14,619	15,798
Ending Balance	16,521	17,793
Commercial Owner Occupied [Member]
Allowance for Credit Losses
Beginning Balance	1,339	1,012
Provision for Credit Losses	350	97
Charge-offs	0	0
Recoveries	0	0
Net Charge-offs	0	0
Ending Balance	1,689	1,109
Ending Balance: Individually evaluated for impairment	960	925
Ending Balance: Collectively evaluated for impairment	729	184
Loans:
Ending Balance: Individually Evaluated for Impairment	4,263	7,729
Ending balance: Collectively Evaluated for Impairment	65,035	64,343
Ending Balance	69,298	72,072
Commercial Non Owner Occupied [Member]
Allowance for Credit Losses
Beginning Balance	445	748
Provision for Credit Losses	403	(130)
Charge-offs	0	0
Recoveries	(1)	0
Net Charge-offs	(1)	0
Ending Balance	849	618
Ending Balance: Individually evaluated for impairment	768	283
Ending Balance: Collectively evaluated for impairment	81	335
Loans:
Ending Balance: Individually Evaluated for Impairment	4,225	1,878
Ending balance: Collectively Evaluated for Impairment	25,179	31,449
Ending Balance	29,404	33,327
Second Mortgage [Member]
Allowance for Credit Losses
Beginning Balance	15	43
Provision for Credit Losses	(11)	40
Charge-offs	0	0
Recoveries	0	0
Net Charge-offs	0	0
Ending Balance	4	83
Ending Balance: Individually evaluated for impairment	0	59
Ending Balance: Collectively evaluated for impairment	4	24
Loans:
Ending Balance: Individually Evaluated for Impairment	64	427
Ending balance: Collectively Evaluated for Impairment	6,131	7,759
Ending Balance	6,195	8,186
Equity Line of Credit [Member]
Allowance for Credit Losses
Beginning Balance	27	20
Provision for Credit Losses	4	(3)
Charge-offs	0	0
Recoveries	0	(1)
Net Charge-offs	0	(1)
Ending Balance	31	18
Ending Balance: Individually evaluated for impairment	0	0
Ending Balance: Collectively evaluated for impairment	31	18
Loans:
Ending Balance: Individually Evaluated for Impairment	0	50
Ending balance: Collectively Evaluated for Impairment	19,882	6,230
Ending Balance	19,882	6,280
Farmland [Member]
Allowance for Credit Losses
Beginning Balance	16	7
Provision for Credit Losses	37	(1)
Charge-offs	0	0
Recoveries	(1)	0
Net Charge-offs	(1)	0
Ending Balance	54	6
Ending Balance: Individually evaluated for impairment	20	0
Ending Balance: Collectively evaluated for impairment	34	6
Loans:
Ending Balance: Individually Evaluated for Impairment	773	812
Ending balance: Collectively Evaluated for Impairment	11,510	11,566
Ending Balance	12,283	12,378
Personal and Overdrafts [Member]
Allowance for Credit Losses
Beginning Balance	802	704
Provision for Credit Losses	204	(94)
Charge-offs	79	139
Recoveries	(25)	(131)
Net Charge-offs	54	8
Ending Balance	952	602
Ending Balance: Individually evaluated for impairment	0	42
Ending Balance: Collectively evaluated for impairment	952	560
Loans:
Ending Balance: Individually Evaluated for Impairment	260	147
Ending balance: Collectively Evaluated for Impairment	16,777	20,330
Ending Balance	17,037	20,477
Commercial and Agricultural [Member]
Allowance for Credit Losses
Beginning Balance	535	886
Provision for Credit Losses	(99)	60
Charge-offs	59	23
Recoveries	(3)	(1)
Net Charge-offs	56	22
Ending Balance	380	924
Ending Balance: Individually evaluated for impairment	280	599
Ending Balance: Collectively evaluated for impairment	100	325
Loans:
Ending Balance: Individually Evaluated for Impairment	466	966
Ending balance: Collectively Evaluated for Impairment	32,941	36,792
Ending Balance	33,407	37,758
Unallocated [Member]
Allowance for Credit Losses
Beginning Balance	1,258	1,543
Provision for Credit Losses	(854)	306
Charge-offs	0	0
Recoveries	0	0
Net Charge-offs	0	0
Ending Balance	404	1,849
Ending Balance: Individually evaluated for impairment	0	0
Ending Balance: Collectively evaluated for impairment	404	1,849
Loans:
Ending Balance: Individually Evaluated for Impairment	0	0
Ending balance: Collectively Evaluated for Impairment	0	0
Ending Balance	$ 0	$ 0

2. Loans and Allowance for Lo31

2. Loans and Allowance for Loan Losses, Troubled Debt Resturcturing (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Contract	Mar. 31, 2016USD ($)Contract
Interest only [Member]
Troubled Debt Restructurings Interest Only
Number of Contracts | Contract	0	2
Pre-Modification Outstanding Recorded Investment	$ 0	$ 149
Post-Modification Recorded Investment	$ 0	$ 149
Interest only [Member] | Farmland [Member]
Troubled Debt Restructurings Interest Only
Number of Contracts | Contract		1
Pre-Modification Outstanding Recorded Investment		$ 57
Post-Modification Recorded Investment		$ 57
Interest only [Member] | Commercial Real Estate- Owner Occupied [Member]
Troubled Debt Restructurings Interest Only
Number of Contracts | Contract		1
Pre-Modification Outstanding Recorded Investment		$ 92
Post-Modification Recorded Investment		$ 92
Below Market Rate [Member]
Troubled Debt Restructurings Interest Only
Number of Contracts | Contract	0	1
Pre-Modification Outstanding Recorded Investment	$ 0	$ 848
Post-Modification Recorded Investment	$ 0	$ 848
Below Market Rate [Member] | Residential 1-4 Family [Member]
Troubled Debt Restructurings Interest Only
Number of Contracts | Contract		1
Pre-Modification Outstanding Recorded Investment		$ 848
Post-Modification Recorded Investment		$ 848
Loan term extension [Member]
Troubled Debt Restructurings Interest Only
Number of Contracts | Contract	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0
Post-Modification Recorded Investment	$ 0	$ 0
Troubled Debt Restructurings [Member]
Troubled Debt Restructurings Interest Only
Number of Contracts | Contract	0	3
Pre-Modification Outstanding Recorded Investment	$ 0	$ 997
Post-Modification Recorded Investment	$ 0	$ 997
Subsequently defaulted [Member]
Troubled Debt Restructurings Interest Only
Number of Contracts | Contract	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0
Post-Modification Recorded Investment	$ 0	$ 0

2. Loans and Allowance for Lo32

2. Loans and Allowance for Loan Losses, Loans Held For Sale (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loans And Allowance For Loan Losses Loans Held For Sale Details
Loans held for sale at end of period	$ 3,063	$ 0
Proceeds from sales of mortgage loans originated for sale	5,578	0
Gain on sales of mortgage loans originated for sale	$ 226	$ 0

3. Income Taxes (Details)

3. Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loan originated from sales of other real estate owned
Tax expense at statutory rate	$ 500	$ 245
Reduction in taxes from:
Tax-exempt interest	(29)	(26)
Other, net	(32)	(28)
Income tax benefit	$ 439	$ 191

4. Capital Requirements (Detail

4. Capital Requirements (Details) - Highlands Union Bank [Member]	Mar. 31, 2017	Dec. 31, 2016
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1	12.15%	11.78%
Total Risk Based	13.37%	13.02%
Leverage	7.80%	7.59%
CET 1	12.15%	11.78%

6. Per Share Amounts (Details)

6. Per Share Amounts (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
One to Four Family Residential, real estate secured impaired loans, fair value disclosure
Income available to common stockholders	$ 1,032	$ 530
Weighted average shares outstanding	8,113	8,089
Shares outstanding including assumed conversion	10,292	10,205
Basic earnings per common share	$ .13	$ .07
Fully diluted earnings per share (including convertible preferred shares oustanding)	$ .10	$ .05

6. Per Share Amounts (Details N

6. Per Share Amounts (Details Narrative)	12 Months Ended
	Dec. 31, 2014shares
Notes To Financial Statements Abstract
Preferred stock shares issued	2,092,287

7. Commitments and Contingenc37

7. Commitments and Contingencies (Details Narrative) $ in Thousands	Mar. 31, 2017USD ($)
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Commitments, maximum exposure	$ 843
Equity Line of Credit [Member]
Loss Contingencies [Line Items]
Commitments, maximum exposure	15,155
Credit Card Lines of Credit [Member]
Loss Contingencies [Line Items]
Commitments, maximum exposure	6,729
Construction and land development commitments [Member]
Loss Contingencies [Line Items]
Commitments, maximum exposure	1,980
Unused Commitments to Fund Interest Earning Assets [Member]
Loss Contingencies [Line Items]
Commitments, maximum exposure	$ 21,491

8. Fair Value (Details)

8. Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total AFS Securities	$ 96,384	$ 95,073
Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State and Political Subdivisions	12,903	12,451
Mortgage Backed Securities	75,431	74,288
SBA Pools	8,050	8,334
Total AFS Securities	96,384	95,703
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State and Political Subdivisions	0	0
Mortgage Backed Securities	0	0
SBA Pools	0	0
Total AFS Securities	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State and Political Subdivisions	12,903	12,451
Mortgage Backed Securities	75,431	74,288
SBA Pools	8,050	8,334
Total AFS Securities	96,384	95,073
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
State and Political Subdivisions	0	0
Mortgage Backed Securities	0	0
SBA Pools	0	0
Total AFS Securities	$ 0	$ 0

8. Fair Value, Loans (Details)

8. Fair Value, Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Held for Sale	$ 3,063	$ 1,255
Real Estate Held for sale	1,662	1,680
Fair Value, Measurements, Nonrecurring [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired Loans	9,036	4,869
Loans Held for Sale	3,063	1,255
Repossessions/OREO, net	2,741	2,768
Real Estate Held for sale	1,662	1,680
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired Loans	0	0
Loans Held for Sale	0	0
Repossessions/OREO, net	0	0
Real Estate Held for sale	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired Loans	0	0
Loans Held for Sale	3,063	1,255
Repossessions/OREO, net	0	0
Real Estate Held for sale	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired Loans	9,036	4,869
Loans Held for Sale	0	0
Repossessions/OREO, net	2,741	2,768
Real Estate Held for sale	$ 1,662	$ 1,680

8. Fair Value, Off-Balance Shee

8. Fair Value, Off-Balance Sheet Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available-for-sale	$ 96,384	$ 95,073
Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	56,188	50,385
Securities available-for-sale	96,384	95,073
Other investments	6,385	6,637
Loans, net	404,383	404,838
Deposits	(495,467)	(489,869)
Other short-term borrowings	(27,552)	(27,552)
Long-term debt	(40,133)	(40,146)
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	56,188	50,385
Securities available-for-sale	96,384	95,073
Other investments	6,385	6,637
Loans, net	404,043	406,851
Deposits	(427,552)	(422,730)
Other short-term borrowings	(27,781)	(27,958)
Long-term debt	$ (41,555)	$ (41,825)

9. Investment Securities Avai41

9. Investment Securities Available For Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 98,149	$ 96,930
Gross Unrealized Gains	121	140
Gross Unrealized Losses	1,886	1,997
Securities available-for-sale	96,384	95,073
Age of gross unrealized losses and fair value by investment category
Less Than 12 months, Fair Value	83,122	83,656
Less Than 12 months, Unrealized Losses	1,814	1,997
12 Months or More, Fair value	1,840	0
12 Months or More, Unrealized Losses	72	0
Fair Value	84,962	83,656
Unrealized Losses	1,886	1,997
Fiscal Year Maturity - Amortized Cost
Amortized cost - due in one year or less	555
Amortized cost - due after one year through five years	1,431
Amortized cost - due after five years through ten years	3
Amortized cost - due after ten years	19,682
Amortized cost - total	21,671
Mortgage-backed securities	76,478
Amortized cost - sub-total	98,149	96,930
Fiscal Year Maturity - Approximate Market Value
Approximate Market Value - due in one year or less	558
Approximate Market Value - due after one year through five years	1,446
Approximate Market Value - due after five years through ten years	3
Approximate Market Value - after ten years	18,946
Approximate Market Value - sub total	20,953
Mortgage-backed securities	75,431
Approximate Market Value - grand total	96,384
State and political subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	13,455	13,013
Gross Unrealized Gains	31	41
Gross Unrealized Losses	583	603
Securities available-for-sale	12,903	12,451
Age of gross unrealized losses and fair value by investment category
Less Than 12 months, Fair Value	9,907	9,191
Less Than 12 months, Unrealized Losses	583	603
12 Months or More, Fair value	0	0
12 Months or More, Unrealized Losses	0	0
Fair Value	9,907	9,191
Unrealized Losses	583	603
Fiscal Year Maturity - Amortized Cost
Amortized cost - sub-total	13,455	13,013
Mortgage-backed securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	76,478	75,384
Gross Unrealized Gains	86	93
Gross Unrealized Losses	1,133	1,189
Securities available-for-sale	75,431	74,288
Age of gross unrealized losses and fair value by investment category
Less Than 12 months, Fair Value	66,109	66,878
Less Than 12 months, Unrealized Losses	1,077	1,189
12 Months or More, Fair value	1,286	0
12 Months or More, Unrealized Losses	56	0
Fair Value	67,395	66,878
Unrealized Losses	1,133	1,189
Fiscal Year Maturity - Amortized Cost
Amortized cost - sub-total	76,478	75,384
SBA Pools [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	8,216	8,533
Gross Unrealized Gains	4	6
Gross Unrealized Losses	170	205
Securities available-for-sale	8,050	8,334
Age of gross unrealized losses and fair value by investment category
Less Than 12 months, Fair Value	7,106	7,587
Less Than 12 months, Unrealized Losses	154	205
12 Months or More, Fair value	554	0
12 Months or More, Unrealized Losses	16	0
Fair Value	7,660	7,587
Unrealized Losses	170	205
Fiscal Year Maturity - Amortized Cost
Amortized cost - sub-total	$ 8,216	$ 8,533

9. Investment Securities Avai42

9. Investment Securities Available For Sale (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Investment Securities Available For Sale Details Narrative
Investment securities available for sale	$ 31,442	$ 33,238
Investment securities pledged as collateral on public deposits	$ 30,961	$ 32,698

10. Formal Written Agreement (D

10. Formal Written Agreement (Details Narrative) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Formal Written Agreement
Loan and other assets amount requiring improvement	$ 500,000
Past due days	90 days