Macatawa Bank (MCBC) 10-K 16 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 16, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	MACATAWA BANK CORP
Entity Central Index Key	1,053,584
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	Accelerated Filer
Entity Public Float			$ 233,288,000
Entity Common Stock, Shares Outstanding		33,940,788
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 27,690	$ 29,104
Federal funds sold and other short -term investments	62,129	152,372
Cash and cash equivalents	89,819	181,476
Interest-bearing time deposits in other financial institutions	0	20,000
Securities available for sale, at fair value	184,433	166,815
Securities held to maturity (fair value 2016 - $69,849 and 2015 - $52,837)	69,378	51,856
Federal Home Loan Bank (FHLB) stock	11,558	11,558
Loans held for sale, at fair value	2,181	2,776
Total loans	1,280,812	1,197,932
Allowance for loan losses	(16,962)	(17,081)
Net loans	1,263,850	1,180,851
Premises and equipment - net	50,026	51,456
Accrued interest receivable	4,092	3,622
Bank-owned life insurance	39,274	28,858
Other real estate owned - net	12,253	17,572
Net deferred tax asset	8,863	8,819
Other assets	5,286	3,984
Total assets	1,741,013	1,729,643
Deposits
Noninterest-bearing	501,478	477,032
Interest-bearing	947,246	958,480
Total deposits	1,448,724	1,435,512
Other borrowed funds	84,173	96,169
Long-term debt	41,238	41,238
Accrued expenses and other liabilities	4,639	4,747
Total liabilities	1,578,774	1,577,666
Commitments and contingent liabilities
Shareholders' equity
Common stock, no par value, 200,000,000 shares authorized; 33,940,788 and 33,925,113 shares issued and outstanding at December 31, 2016 and December 31, 2015	216,731	216,540
Retained deficit	(53,008)	(64,910)
Accumulated other comprehensive income (loss)	(1,484)	347
Total shareholders' equity	162,239	151,977
Total liabilities and shareholders' equity	$ 1,741,013	$ 1,729,643

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Securities held to maturity fair value	$ 69,849	$ 52,837
Shareholders' equity
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	33,940,788	33,925,113
Common stock, shares outstanding (in shares)	33,940,788	33,925,113

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income
Loans, including fees	$ 47,400	$ 44,857	$ 42,911
Securities
Taxable	2,322	2,065	2,006
Tax-exempt	1,819	1,557	1,161
FHLB Stock	491	472	471
Federal funds sold and other short-term investments	467	435	439
Total interest income	52,499	49,386	46,988
Interest expense
Deposits	1,771	2,210	2,576
Other borrowings	1,685	1,765	1,709
Long-term debt	1,503	1,331	1,311
Total interest expense	4,959	5,306	5,596
Net interest income	47,540	44,080	41,392
Provision for loan losses	(1,350)	(3,500)	(3,350)
Net interest income after provision for loan losses	48,890	47,580	44,742
Noninterest income
Service charges and fees	4,425	4,377	4,334
Net gains on mortgage loans	3,024	2,925	1,939
Trust fees	3,096	2,927	2,701
ATM and debit card fees	4,980	4,750	4,654
Gain on sales of securities	124	129	75
Bank owned life insurance ("BOLI") income	977	663	678
Other	2,448	2,022	1,833
Total noninterest income	19,074	17,793	16,214
Noninterest expense
Salaries and benefits	24,867	24,668	23,137
Occupancy of premises	3,789	3,714	3,840
Furniture and equipment	3,256	3,237	3,190
Legal and professional	863	833	846
Marketing and promotion	1,000	951	1,056
Data processing	2,787	2,483	2,423
FDIC assessment	778	1,137	1,218
Interchange and other card expense	1,286	1,151	1,109
Bond and D&O Insurance	527	584	659
Net losses (gains) on repossessed and foreclosed properties	318	1,651	999
Administration and disposition of problem assets	977	1,381	2,072
Other	5,334	5,163	5,361
Total noninterest expenses	45,782	46,953	45,910
Income before income tax	22,182	18,420	15,046
Income tax expense	6,231	5,626	4,573
Net income	$ 15,951	$ 12,794	$ 10,473
Basic earnings per common share (in dollars per share)	$ 0.47	$ 0.38	$ 0.31
Diluted earnings per common share (in dollars per share)	0.47	0.38	0.31
Cash dividends per common share (in dollars per share)	$ 0.12	$ 0.11	$ 0.08

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 15,951	$ 12,794	$ 10,473
Unrealized gains (losses):
Net change in unrealized gains (losses) on securities available for sale	(2,694)	569	3,177
Tax effect	943	(199)	(1,112)
Net change in unrealized gains (losses) on securities available for sale, net of tax	(1,751)	370	2,065
Less: reclassification adjustments:
Reclassification for gains included in net income	124	129	75
Tax effect	(44)	(45)	(26)
Reclassification for gains included in net income, net of tax	80	84	49
Other comprehensive income (loss), net of tax	(1,831)	286	2,016
Comprehensive income	$ 14,120	$ 13,080	$ 12,489

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2013	$ 216,263	$ (81,786)	$ (1,955)	$ 132,522
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	10,473	0	10,473
Common stock issuance costs	(102)	0	0	(102)
Issuance of 392 shares of Common Stock on exercise of stock purchase warrants	4	0	0	4
Cash dividends	0	(2,689)	0	(2,689)
Repurchase of shares for taxes withheld on vested restricted stock	(106)	0	0	(106)
Tax effect of vested stock awards	63	0	0	63
Net change in unrealized loss on securities available for sale, net of tax	0	0	2,016	2,016
Stock compensation expense	338	0	0	338
Balance at Dec. 31, 2014	216,460	(74,002)	61	142,519
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	12,794	0	12,794
Common stock issuance costs				0
Cash dividends	0	(3,702)	0	(3,702)
Repurchase of shares for taxes withheld on vested restricted stock	(171)	0	0	(171)
Tax effect of vested stock awards	53	0	0	53
Net change in unrealized loss on securities available for sale, net of tax	0	0	286	286
Tax effect of expired common stock warrants	(280)	0	0	(280)
Stock compensation expense	478	0	0	478
Balance at Dec. 31, 2015	216,540	(64,910)	347	151,977
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	15,951	0	15,951
Common stock issuance costs				0
Cash dividends	0	(4,049)	0	(4,049)
Repurchase of shares for taxes withheld on vested restricted stock	(269)	0	0	(269)
Tax effect of vested stock awards	143	0	0	143
Net change in unrealized loss on securities available for sale, net of tax	0	0	(1,831)	(1,831)
Tax effect of expired common stock options	(219)	0	0	(219)
Stock compensation expense	536	0	0	536
Balance at Dec. 31, 2016	$ 216,731	$ (53,008)	$ (1,484)	$ 162,239

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Common Stock on exercise of stock purchase warrants (in shares)			392
Cash dividend (in dollars per share)	$ 0.12	$ 0.11	$ 0.08
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Number of shares repurchased for taxes withheld on vested restricted stock (in shares)	30,350	29,676	20,534

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net income	$ 15,951	$ 12,794	$ 10,473
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	2,805	2,969	3,139
Stock compensation expense	536	478	338
Tax effect of vested stock awards	143	53	63
Tax effect of expired common stock options and warrants	(219)	(280)	0
Provision for loan losses	(1,350)	(3,500)	(3,350)
Origination of loans for sale	(103,385)	(99,998)	(73,516)
Proceeds from sales of loans originated for sale	107,004	102,494	75,023
Net gains on mortgage loans	(3,024)	(2,925)	(1,939)
Gain on sales of securities	(124)	(129)	(75)
Write-down of other real estate	964	724	1,623
Net (gain) loss on sales of other real estate	(645)	926	(624)
Deferred income tax expense	942	3,291	2,849
Change in accrued interest receivable and other assets	(1,585)	(1,323)	1,555
Earnings in bank-owned life insurance	(977)	(663)	(678)
Change in accrued expenses and other liabilities	(108)	(910)	1,737
Net cash from operating activities	16,928	14,001	16,618
Cash flows from investing activities
Loan originations and payments, net	(81,988)	(80,350)	(79,524)
Change in interest-bearing deposits in other financial institutions	20,000	0	5,000
Purchases of securities available for sale	(89,159)	(59,807)	(43,882)
Purchases of securities held to maturity	(33,702)	(36,547)	(25,225)
Purchase of bank-owned life insurance	(10,000)	0	0
Purchase of FHLB stock	0	(320)	(2,519)
Proceeds from:
Maturities and calls of securities	68,952	47,056	22,528
Sales of securities available for sale	11,729	20,625	10,936
Principal paydowns on securities	4,159	3,670	3,642
Sales of other real estate	5,339	11,540	12,487
Death benefit from bank-owned life insurance	518	0	0
Sale of FHLB stock	0	0	2,517
Additions to premises and equipment	(1,188)	(1,170)	(1,766)
Net cash from investing activities	(105,340)	(95,303)	(95,806)
Cash flows from financing activities
Change in deposits	13,212	129,187	56,591
Repayments and maturities of other borrowed funds	(21,996)	(1,938)	(1,884)
Proceeds from other borrowed funds	10,000	10,000	0
Proceeds from issuance of common stock	0	0	4
Cash paid related to tax impact of vested stock awards	(143)	(53)	(63)
Cash dividends paid	(4,049)	(3,702)	(2,689)
Common stock issuance costs	0	0	(102)
Repurchase of shares for taxes withheld on vested restricted stock	(269)	(171)	(106)
Net cash from financing activities	(3,245)	133,323	51,751
Net change in cash and cash equivalents	(91,657)	52,021	(27,437)
Cash and cash equivalents at beginning of period	181,476	129,455	156,892
Cash and cash equivalents at end of period	89,819	181,476	129,455
Supplemental cash flow information
Interest paid	4,950	5,322	5,615
Income taxes paid	6,160	4,300	90
Supplemental noncash disclosures:
Transfers from loans to other real estate	$ 339	$ 2,520	$ 4,932

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common securities of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are discussed in a separate note. Under generally accepted accounting principles, these trusts are not consolidated into the financial statements of the Company. Use of Estimates Concentration of Credit Risk Cash Flow Reporting Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments. Gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available for sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments — Debt and Equity Instruments In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management has determined that no OTTI charges were necessary during 2016, 2015 and 2014. Federal Home Loan Bank (FHLB) Stock Loans Held for Sale Loans Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the respective term of the loan using the level‑yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost‑recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative environmental factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class as well as the loan risk grade assignment for commercial loans. At December 31, 2016, an 18 month (six quarter) annualized historical loss experience was used for commercial loans and a 12 month (four quarter) historical loss experience period was applied to residential mortgage and consumer loan portfolios. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative environmental factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, competition, increasing interest rates, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Transfers of Financial Assets Foreclosed Assets Premises and Equipment Bank-Owned Life Insurance (BOLI): Goodwill and Acquired Intangible Assets Acquired intangible assets consist of core deposit and customer relationship intangible assets arising from acquisitions. They are initially measured at fair value and then are amortized on an accelerated method over their estimated useful lives, which range from ten to sixteen years. The Company had no acquired intangible assets at December 31, 2016 and 2015. Long-term Assets Loan Commitments and Related Financial Instruments Mortgage Banking Derivatives Changes in the fair values of these interest rate lock and forward commitment derivatives are included in net gains on mortgage loans. The net fair value of mortgage banking derivatives was approximately $51,000 and $38,000 at December 31, 2016 and 2015, respectively. Derivatives Income Taxes The Company recognizes a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Earnings Per Common Share Comprehensive Income Loss Contingencies Restrictions on Cash Stock Splits and Dividends Dividend Restriction Fair Values of Financial Instruments Segment Reporting Reclassifications Adoption of New Accounting Standards Simplifying the Presentation of Debt Issuance Costs FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Newly Issued Not Yet Effective Standards Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers This ASU may require us to change how we recognize certain recurring revenue streams within trust and investment management fees, however, we do not expect these changes to have a significant effect on our financial statements FASB issued ASU 2016-02, Leases FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force).

SECURITIES

SECURITIES	12 Months Ended
	Dec. 31, 2016
SECURITIES [Abstract]
SECURITIES	NOTE 2 – SECURITIES The amortized cost and fair value of securities were as follows (dollars in thousands): Amortized Gross Gross Fair December 31, 2016 Available for Sale: U.S. Treasury and federal agency securities $ 85,582 $ 49 $ (1,281 ) $ 84,350 U.S. Agency MBS and CMOs 12,037 11 (231 ) 11,817 Tax-exempt state and municipal bonds 39,578 212 (603 ) 39,187 Taxable state and municipal bonds 34,255 65 (437 ) 33,883 Corporate bonds and other debt securities 13,765 16 (55 ) 13,726 Other equity securities 1,500 --- (30 ) 1,470 $ 186,717 $ 353 $ (2,637 ) $ 184,433 Held to Maturity Tax-exempt state and municipal bonds $ 69,378 $ 573 $ (102 ) $ 69,849 December 31, 2015 Available for Sale: U.S. Treasury and federal agency securities $ 74,618 $ 48 $ (274 ) $ 74,392 U. S. Agency MBS and CMOs 13,828 35 (108 ) 13,755 Tax-exempt state and municipal bonds 32,943 692 (37 ) 33,598 Taxable state and municipal bonds 28,554 246 (37 ) 28,763 Corporate bonds and other debt securities 14,838 19 (44 ) 14,813 Other equity securities 1,500 --- (6 ) 1,494 $ 166,281 $ 1,040 $ (506 ) $ 166,815 Held to Maturity: Tax-exempt state and municipal bonds $ 51,856 $ 986 $ (5 ) $ 52,837 Proceeds from the sale of securities available for sale were $11.7 million, $20.6 million and $10.9 million, respectively, for the years ended December 31, 2016, 2015 and 2014, resulting in net gains on sale of $124,000, $129,000 and $75,000, respectively, as reported in the consolidated statements of income. This resulted in reclassifications of $124,000 ($80,000 net of tax), $129,000 ($84,000 net of tax) and $75,000 ($49,000 net of tax), respectively, from accumulated other comprehensive income to gain on sale of securities in the consolidated statements of income in years ended December 31, 2016, 2015 and 2014. Contractual maturities of debt securities at December 31, 2016 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 25,203 $ 25,156 $ 17,192 $ 17,228 Due from one to five years 14,801 15,069 94,916 94,067 Due from five to ten years 8,279 8,443 57,224 56,200 Due after ten years 21,095 21,181 15,885 15,468 $ 69,378 $ 69,849 $ 185,217 $ 182,963 Securities with unrealized losses at December 31, 2016 and 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): Less than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 59,129 $ (1,271 ) $ 3,053 $ (10 ) $ 62,182 $ (1,281 ) U.S. Agency MBS and CMOs 10,702 (231 ) --- --- 10,702 (231 ) Tax-exempt state and municipal bonds 49,508 (698 ) 1,672 (7 ) 51,180 (705 ) Taxable state and municipal bonds 22,633 (437 ) --- --- 22,633 (437 ) Corporate bonds and other debt securities 5,745 (50 ) 500 (5 ) 6,245 (55 ) Other equity securities 1,470 (30 ) --- --- 1,470 (30 ) Total temporarily impaired $ 149,187 $ (2,717 ) $ 5,225 $ (22 ) $ 154,412 $ (2,739 ) Less than 12 Months 12 Months or More Total December 31, 2015 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 35,090 $ (187 ) $ 7,036 $ (82 ) $ 42,126 $ (269 ) U.S. Agency MBS and CMOs 8,842 (108 ) --- --- 8,842 (108 ) Tax-exempt state and municipal bonds 3,487 (9 ) 2,022 (33 ) 5,509 (42 ) Taxable state and municipal bonds 8,158 (29 ) 640 (8 ) 8,798 (37 ) Corporate bonds and other debt securities 9,330 (47 ) 499 (2 ) 9,829 (49 ) Other equity securities 1,494 (6 ) --- --- 1,494 (6 ) Total temporarily impaired $ 66,401 $ (386 ) $ 10,197 $ (125 ) $ 76,598 $ (511 ) Other-Than-Temporary-Impairment Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management determined that the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during 2016, 2015 and 2014. Securities with a carrying value of approximately $2.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at December 31, 2016 and 2015.

LOANS

LOANS	12 Months Ended
	Dec. 31, 2016
LOANS [Abstract]
LOANS	NOTE 3 – LOANS Portfolio loans were as follows (dollars in thousands): December 31, 2016 December 31, 2015 Commercial and industrial $ 449,342 $ 377,298 Commercial real estate: Residential developed 11,970 10,448 Unsecured to residential developers 4,734 7,372 Vacant and unimproved 40,286 42,881 Commercial development 378 559 Residential improved 75,348 67,922 Commercial improved 289,478 289,651 Manufacturing and industrial 95,787 89,839 Total commercial real estate 517,981 508,672 Consumer Residential mortgage 217,614 209,972 Unsecured 396 637 Home equity 88,113 92,716 Other secured 7,366 8,637 Total consumer 313,489 311,962 Total loans 1,280,812 1,197,932 Allowance for loan losses (16,962 ) (17,081 ) $ 1,263,850 $ 1,180,851 The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (205 ) --- (205 ) Recoveries 162 1,090 184 --- 1,436 Provision for loan losses 1,357 (2,844 ) 131 6 (1,350 ) Ending Balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs (172 ) (218 ) (312 ) --- (702 ) Recoveries 406 1,264 651 --- 2,321 Provision for loan losses (1,581 ) (1,279 ) (624 ) (16 ) (3,500 ) Ending Balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 2014 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,174 $ 10,868 $ 3,703 $ 53 $ 20,798 Charge-offs (43 ) (134 ) (499 ) --- (676 ) Recoveries 522 1,481 187 --- 2,190 Provision for loan losses (480 ) (3,525 ) 655 --- (3,350 ) Ending Balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): December 31, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 605 $ 368 $ 723 $ --- $ 1,696 Collectively evaluated for impairment 5,740 6,335 3,148 43 15,266 Total ending allowance balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 Loans: Individually reviewed for impairment $ 5,994 $ 11,934 $ 11,726 $ --- $ 29,654 Collectively evaluated for impairment 443,348 506,047 301,763 --- 1,251,158 Total ending loans balance $ 449,342 $ 517,981 $ 313,489 $ --- $ 1,280,812 December 31, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 673 $ 436 $ 829 $ --- $ 1,938 Collectively evaluated for impairment 4,153 8,021 2,932 37 15,143 Total ending allowance balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Loans: Individually reviewed for impairment $ 7,718 $ 17,569 $ 13,463 $ --- $ 38,750 Collectively evaluated for impairment 369,580 491,103 298,499 --- 1,159,182 Total ending loans balance $ 377,298 $ 508,672 $ 311,962 $ --- $ 1,197,932 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016 (dollars in thousands): December 31, 2016 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 2,298 $ 2,298 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development --- --- --- Residential improved 27 27 --- Commercial improved 350 350 --- Manufacturing and industrial --- --- --- 377 377 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 2,675 $ 2,675 $ --- With an allowance recorded: Commercial and industrial $ 3,696 $ 3,696 $ 605 Commercial real estate: Residential developed 187 187 4 Unsecured to residential developers --- --- --- Vacant and unimproved 387 387 9 Commercial development 189 189 6 Residential improved 4,687 4,687 216 Commercial improved 5,879 5,879 128 Manufacturing and industrial 228 228 5 11,557 11,557 368 Consumer: Residential mortgage 7,523 7,523 464 Unsecured --- --- --- Home equity 4,203 4,203 259 Other secured --- --- --- 11,726 11,726 723 Total with an allowance recorded $ 26,979 $ 26,979 $ 1,696 Total $ 29,654 $ 29,654 $ 1,696 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015 (dollars in thousands): December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 2,736 $ 2,736 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 206 206 --- Commercial development --- --- --- Residential improved 5 5 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 211 211 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 2,947 $ 2,947 $ --- With an allowance recorded: Commercial and industrial $ 4,982 $ 4,982 $ 673 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 247 247 7 Commercial development 192 192 6 Residential improved 5,254 5,254 140 Commercial improved 11,425 11,425 274 Manufacturing and industrial 240 240 9 17,358 17,358 436 Consumer: Residential mortgage 8,655 8,655 533 Unsecured --- --- --- Home equity 4,808 4,808 296 Other secured --- --- --- 13,463 13,463 829 Total with an allowance recorded $ 35,803 $ 35,803 $ 1,938 Total $ 38,750 $ 38,750 $ 1,938 The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): 2016 2015 2014 Average of impaired loans during the period: Commercial and industrial $ 6,468 $ 7,296 $ 11,818 Commercial real estate: Residential developed 78 577 3,628 Unsecured to residential developers --- --- --- Vacant and unimproved 422 1,231 1,646 Commercial development 191 195 451 Residential improved 5,273 6,425 9,309 Commercial improved 7,332 15,106 17,853 Manufacturing and industrial 235 1,944 5,630 Consumer 12,602 14,259 14,476 Interest income recognized during impairment: Commercial and industrial 993 1,110 1,108 Commercial real estate 643 967 1,527 Consumer 444 497 541 Cash-basis interest income recognized Commercial and industrial 992 1,066 1,107 Commercial real estate 647 970 1,547 Consumer 443 502 541 Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2016 and 2015: December 31, 2016 Nonaccrual Over 90 days Accruing Commercial and industrial $ 36 $ --- Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 6 --- Commercial improved 128 --- Manufacturing and industrial --- --- 183 --- Consumer: Residential mortgage 58 --- Unsecured 16 --- Home equity 7 --- Other secured --- --- 81 --- Total $ 300 $ --- December 31, 2015 Nonaccrual Over 90 days Accruing Commercial and industrial $ 174 $ --- Commercial real estate: Residential developed 195 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 124 --- Commercial improved 157 --- Manufacturing and industrial --- --- 525 --- Consumer: Residential mortgage 2 --- Unsecured 28 --- Home equity 10 17 Other secured --- --- 40 17 Total $ 739 $ 17 The following table presents the aging of the recorded investment in past due loans as of December 31, 2016 by class of loans (dollars in thousands): December 31, 2016 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 425 $ 28 $ 453 $ 448,889 $ 449,342 Commercial real estate: Residential developed --- --- --- 11,970 11,970 Unsecured to residential developers --- --- --- 4,734 4,734 Vacant and unimproved --- --- --- 40,286 40,286 Commercial development --- 49 49 329 378 Residential improved 74 5 79 75,269 75,348 Commercial improved 478 --- 478 289,000 289,478 Manufacturing and industrial --- --- --- 95,787 95,787 552 54 606 517,375 517,981 Consumer: Residential mortgage 64 56 120 217,494 217,614 Unsecured --- --- --- 396 396 Home equity 187 --- 187 87,926 88,113 Other secured 81 --- 81 7,285 7,366 332 56 388 313,101 313,489 Total $ 1,309 $ 138 $ 1,447 $ 1,279,365 $ 1,280,812 The following table presents the aging of the recorded investment in past due loans as of December 31, 2015 by class of loans (dollars in thousands): December 31, 2015 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 719 $ 100 $ 819 $ 376,479 $ 377,298 Commercial real estate: Residential developed --- --- --- 10,448 10,448 Unsecured to residential developers --- --- --- 7,372 7,372 Vacant and unimproved --- --- --- 42,881 42,881 Commercial development --- 49 49 510 559 Residential improved 73 6 79 67,843 67,922 Commercial improved 375 --- 375 289,276 289,651 Manufacturing and industrial --- --- --- 89,839 89,839 448 55 503 508,169 508,672 Consumer: Residential mortgage --- --- --- 209,972 209,972 Unsecured --- --- --- 637 637 Home equity 32 17 49 92,667 92,716 Other secured --- --- --- 8,637 8,637 32 17 49 311,913 311,962 Total $ 1,199 $ 172 $ 1,371 $ 1,196,561 $ 1,197,932 The Company had allocated $1,696,000 and $1,938,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of December 31, 2016 and December 31, 2015, respectively. These loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. These may also include loans that renewed at existing contractual rates, but below market rates for comparable credit. The Company has been active at utilizing these programs and working with its customers to reduce the risk of foreclosure. For commercial loans, these modifications typically include an interest only period and, in some cases, a lowering of the interest rate on the loan. In some cases, the modification will include separating the note into two notes with the first note structured to be supported by current cash flows and collateral, and the second note made for the remaining unsecured debt. The second note is charged off immediately and collected only after the first note is paid in full. This modification type is commonly referred to as an A-B note structure. For consumer mortgage loans, the restructuring typically includes a lowering of the interest rate to provide payment and cash flow relief. For each restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt. An analysis is also performed to determine whether the restructured loan should be on accrual status. Generally, if the loan is on accrual at the time of restructure, it will remain on accrual after the restructuring. In some cases, a nonaccrual loan may be placed on accrual at restructuring if the loan’s actual payment history demonstrates it would have cash flowed under the restructured terms. After six consecutive payments under the restructured terms, a nonaccrual restructured loan is reviewed for possible upgrade to accruing status. Based upon regulatory guidance issued in 2014, the Company has determined that in situations where there is a subsequent modification or renewal and the loan is brought to market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, the TDR and impaired loan designations may be removed. This guidance was first applied to loans outstanding at September 30, 2014 resulting in a reduction of $5.9 million in loans designated as TDR and impaired. In addition, the TDR designation may also be removed from loans modified under an A-B note structure. If the remaining “A” note is at a market rate at the time of restructuring (taking into account the borrower’s credit risk and prevailing market conditions), the loan can be removed from TDR designation in a subsequent calendar year after six months of performance in accordance with the new terms. The market rate relative to the borrower’s credit risk is determined through analysis of market pricing information gathered from peers and use of a loan pricing model. The general objective of the model is to achieve a consistent return on equity from one credit to the next, taking into consideration differences in credit risk. In the model, credits with higher risk receive a higher potential loss allocation, and therefore require a higher interest rate to achieve the target return on equity. As with other impaired loans, an allowance for loan loss is estimated for each TDR based on the most likely source of repayment for each loan. For impaired commercial real estate loans that are collateral dependent, the allowance is computed based on the fair value of the underlying collateral, less estimated costs to sell. For impaired commercial loans where repayment is expected from cash flows from business operations, the allowance is computed based on a discounted cash flow computation. Certain groups of TDRs, such as residential mortgages, have common characteristics and for them the allowance is computed based on a discounted cash flow computation on the change in weighted rate for the pool. The allowance allocations for commercial TDRs where we have reduced the contractual interest rate are computed by measuring cash flows using the new payment terms discounted at the original contractual rate. The following table presents information regarding TDRs as of December 31, 2016 and 2015 (dollars in thousands): 2016 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 25 $ 5,994 33 $ 7,611 Commercial real estate 49 11,933 56 17,871 Consumer 116 12,059 124 13,570 190 $ 29,986 213 $ 39,052 The following table presents information related to accruing TDRs as of December 31, 2016, 2015 and 2014. The table presents the amount of accruing TDRs that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of December 31, 2016, 2015 and 2014 (dollars in thousands): 2016 2015 2014 Accruing TDR - nonaccrual at restructuring $ --- $ --- $ --- Accruing TDR - accruing at restructuring 25,665 33,691 46,197 Accruing TDR - upgraded to accruing after six consecutive payments 4,172 4,784 --- $ 29,837 $ 38,475 $ 46,197 The following tables present information regarding troubled debt restructurings executed during the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): 2016 2015 2014 # of Pre-TDR Writedown # of Pre-TDR Writedown # of Pre-TDR Writedown Commercial and industrial --- $ --- $ --- 6 $ 745 $ --- 1 $ 61 $ --- Commercial real estate 1 56 --- 3 301 --- 11 4,345 --- Consumer 7 289 --- 34 1,000 --- 39 1,422 --- 8 $ 345 $ --- 43 2,046 $ --- 51 $ 5,828 $ --- According to the accounting standards, not all loan modifications are TDRs. TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. In some situations a borrower may be experiencing financial distress, but the Company does not provide a concession. These modifications are not considered TDRs. In other cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor’s interest rate. These modifications would also not be considered TDRs. Finally, any renewals at existing terms for borrowers not experiencing financial distress would not be considered TDRs. As with other loans not considered TDR or impaired, allowance allocations are based on the historical based allocation for the applicable loan grade and loan class. Payment defaults on TDRs have been minimal and during the twelve months ended December 31, 2016, 2015 and 2014 the balance of loans that became delinquent by more than 90 days past due or that were transferred to nonaccrual within 12 months of restructuring were not material. Credit Quality Indicators: 1. Excellent 2. Above Average 3. Good Quality 4. Acceptable Risk 5. Marginally Acceptable 6. Substandard 7. Doubtful 8. Loss At year end, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): December 31, 2016 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 27,619 $ 118,243 $ 282,527 $ 14,610 $ 6,307 $ 36 $ --- $ 449,342 Commercial real estate: Residential developed --- --- 2,328 8,786 856 --- --- --- 11,970 Unsecured to residential developers --- --- --- 4,734 --- --- --- --- 4,734 Vacant and unimproved --- --- 17,672 19,028 3,586 --- --- --- 40,286 Commercial development --- --- --- 140 --- 189 49 --- 378 Residential improved --- --- 7,100 63,957 2,628 1,657 6 --- 75,348 Commercial improved --- 2,433 66,259 210,449 9,084 1,125 128 --- 289,478 Manufacturing & industrial --- 1,665 38,719 51,718 3,076 609 --- --- 95,787 $ --- $ 31,717 $ 250,321 $ 641,339 $ 33,840 $ 9,887 $ 219 $ --- $ 967,323 December 31, 2015 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 196 $ 8,774 $ 114,451 $ 242,253 $ 5,235 $ 6,215 $ 174 $ --- $ 377,298 Commercial real estate: Residential developed --- --- 2,226 5,191 2,836 --- 195 --- 10,448 Unsecured to residential developers --- --- --- 7,372 --- --- --- --- 7,372 Vacant and unimproved --- --- 17,768 20,588 4,525 --- --- --- 42,881 Commercial development --- --- --- 318 --- 192 49 --- 559 Residential improved --- --- 7,191 54,376 4,722 1,509 124 --- 67,922 Commercial improved --- 3,094 60,475 208,127 15,645 2,153 157 --- 289,651 Manufacturing & industrial --- 1,478 34,857 50,023 3,481 --- --- --- 89,839 $ 196 $ 13,346 $ 236,968 $ 588,248 $ 36,444 $ 10,069 $ 699 $ --- $ 885,970 Commercial loans rated a 6 or worse per the Company’s internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at year-end (dollars in thousands): 2016 2015 Not classified as impaired $ 2,608 $ 1,986 Classified as impaired 7,498 8,782 Total commercial loans classified substandard or worse $ 10,106 $ 10,768 The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following tables present the recorded investment in consumer loans based on payment activity as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 217,558 $ 396 $ 88,113 $ 7,366 Nonperforming 56 --- --- --- Total $ 217,614 $ 396 $ 88,113 $ 7,366 December 31, 2015 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 209,972 $ 637 $ 92,699 $ 8,637 Nonperforming --- --- 17 --- Total $ 209,972 $ 637 $ 92,716 $ 8,637

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	12 Months Ended
	Dec. 31, 2016
OTHER REAL ESTATE OWNED [Abstract]
OTHER REAL ESTATE OWNED	NOTE 4 – OTHER REAL ESTATE OWNED Other real estate owned was as follows (dollars in thousands): 2016 2015 2014 Beginning balance $ 28,377 $ 43,071 $ 53,501 Additions, transfers from loans 339 2,520 4,932 Proceeds from sales of other real estate owned (5,339 ) (11,540 ) (12,487 ) Valuation allowance reversal upon sale (1,158 ) (4,748 ) (3,499 ) Gain (loss) on sales of other real estate owned 645 (926 ) 624 22,864 28,377 43,071 Less: valuation allowance (10,611 ) (10,805 ) (14,829 ) Ending balance $ 12,253 $ 17,572 $ 28,242 Activity in the valuation allowance was as follows (dollars in thousands): 2016 2015 2014 Beginning balance $ 10,805 $ 14,829 $ 16,705 Additions charged to expense 964 724 1,623 Reversals upon sale (1,158 ) (4,748 ) (3,499 ) Ending balance $ 10,611 $ 10,805 $ 14,829 At December 31, 2016, the balance of other real estate owned includes $136,000 of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2016, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process is $238,000.

FAIR VALUE

FAIR VALUE	12 Months Ended
	Dec. 31, 2016
FAIR VALUE [Abstract]
FAIR VALUE	NOTE 5 – FAIR VALUE ASC Topic 820, Fair Value Measurements and Disclosures Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 : Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 : Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. Investment Securities: Loans Held for Sale: Impaired Loans Other Real Estate Owned Interest Rate Swaps: Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2016 U.S. Treasury and federal agency securities $ 84,350 $ --- $ 84,350 $ --- U.S. Agency MBS and CMOs 11,817 --- 11,817 --- Tax-exempt state and municipal bonds 39,187 --- 39,187 --- Taxable state and municipal bonds 33,883 --- 33,883 --- Corporate bonds and other debt securities 13,726 --- 13,726 --- Other equity securities 1,470 --- 1,470 --- Loans held for sale 2,181 --- 2,181 --- Interest rate swaps 494 --- --- 494 Interest rate swaps (494 ) --- --- (494 ) December 31, 2015 U.S. Treasury and federal agency securities $ 74,392 $ --- $ 74,392 $ --- U.S. Agency MBS and CMOs 13,755 --- 13,755 --- Tax-exempt state and municipal bonds 33,598 --- 33,598 --- Taxable state and municipal bonds 28,763 --- 28,763 --- Corporate bonds and other debt securities 14,813 --- 14,813 --- Other equity securities 1,494 --- 1,494 --- Loans held for sale 2,776 --- 2,776 --- Interest rate swaps 790 --- --- 790 Interest rate swaps (790 ) --- --- (790 ) Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2016 Impaired loans $ 3,436 $ --- $ --- $ 3,436 Other real estate owned 9,542 --- --- 9,542 December 31, 2015 Impaired loans $ 6,573 $ --- $ --- $ 6,573 Other real estate owned 13,602 --- --- 13,602 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at year end (dollars in thousands). Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2016 Impaired Loans $ 3,436 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 35.0 Income approach Capitalization rate 9.5 to 11.5 Other real estate owned 9,542 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 32.5 Income approach Capitalization rate 9.5 to 11.5 Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2015 Impaired Loans $ 6,573 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 19.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 13,602 Sales comparison approach Adjustment for differences between comparable sales 4.5 to 32.5 Income approach Capitalization rate 9.5 to 11.0 The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at year end (dollars in thousands). Level in Fair Value 2016 2015 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 27,690 $ 27,690 $ 29,104 $ 29,104 Cash equivalents Level 2 62,129 62,129 152,372 152,372 Interest-bearing time deposits in other financial institutions Level 2 --- --- 20,000 20,008 Securities held to maturity Level 3 69,378 69,849 51,856 52,837 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,260,414 1,247,842 1,187,423 1,177,527 Bank owned life insurance Level 3 39,274 39,274 28,858 28,858 Accrued interest receivable Level 2 4,092 4,092 3,622 3,622 Financial liabilities Deposits Level 2 (1,448,724 ) (1,448,724 ) (1,435,512 ) (1,435,473 ) Other borrowed funds Level 2 (84,173 ) (84,051 ) (96,169 ) (96,465 ) Long-term debt Level 2 (41,238 ) (36,112 ) (41,238 ) (35,757 ) Accrued interest payable Level 2 (282 ) (282 ) (273 ) (273 ) Off-balance sheet credit-related items Loan commitments --- --- --- --- The methods and assumptions used to estimate fair value are described as follows. Carrying amount is the estimated fair value for cash and cash equivalents, bank owned life insurance, accrued interest receivable and payable, demand deposits, short-term borrowings and variable rate loans or deposits that reprice frequently and fully. Security fair values are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities as discussed above. For fixed rate loans, interest-bearing time deposits in other financial institutions and deposits, and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk (including consideration of widening credit spreads). Fair value of debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of off-balance sheet credit-related items is not significant.

PREMISES AND EQUIPMENT - NET

PREMISES AND EQUIPMENT - NET	12 Months Ended
	Dec. 31, 2016
PREMISES AND EQUIPMENT - NET [Abstract]
PREMISES AND EQUIPMENT - NET	NOTE 6 – PREMISES AND EQUIPMENT – NET Year-end premises and equipment were as follows (dollars in thousands): 2016 2015 Land $ 18,227 $ 18,227 Building 43,600 43,449 Leasehold improvements 779 779 Furniture and equipment 20,576 19,353 Construction in progress 358 575 83,540 82,383 Less accumulated depreciation (33,514 ) (30,927 ) $ 50,026 $ 51,456 Depreciation expense was $2,618,000, $2,608,000 and $2,513,000 for 2016, 2015 and 2014, respectively. The Bank leases certain office and branch premises and equipment under operating lease agreements. Total rental expense for all operating leases aggregated to $398,000, $417,000 and $436,000 for 2016, 2015 and 2014, respectively. Future minimum rental expense under noncancelable operating leases as of December 31, 2016 is as follows (dollars in thousands): 2017 $ 237 2018 234 2019 234 2020 129 2021 --- Thereafter --- $ 834

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2016
DEPOSITS [Abstract]
DEPOSITS	NOTE 7 – DEPOSITS Deposits at year-end were as follows (dollars in thousands): 2016 2015 Noninterest-bearing demand $ 501,478 $ 477,032 Interest bearing demand 340,715 358,306 Savings and money market accounts 532,853 512,980 Certificates of deposit 73,678 87,194 $ 1,448,724 $ 1,435,512 The following table depicts the maturity distribution of certificates of deposit at December 31, 2016 (dollars in thousands): 2017 $ 42,778 2018 17,122 2019 11,254 2020 1,734 2021 790 Thereafter --- $ 73,678 Time deposits that exceed the FDIC insurance limit of $250,000 at year end 2016 and 2015 were approximately $17.4 million and $17.1 million.

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS	12 Months Ended
	Dec. 31, 2016
OTHER BORROWED FUNDS [Abstract]
OTHER BORROWED FUNDS	NOTE 8 - OTHER BORROWED FUNDS Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank. Federal Home Loan Bank Advances At year-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2016 Single maturity fixed rate advances $ 80,000 February 2018 to April 2021 1.60 % Amortizable mortgage advances 4,173 March 2018 to July 2018 3.78 % $ 84,173 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2015 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 6,169 March 2018 to July 2018 3.78 % $ 96,169 Each advance is subject to a prepayment fee if paid prior to its maturity date. Fixed rate advances are payable at maturity. Amortizable mortgage advances are fixed rate advances with scheduled repayments based upon amortization to maturity. These advances were collateralized by residential and commercial real estate loans totaling $424,951,000 and $440,660,000 under a blanket lien arrangement at December 31, 2016 and 2015. Scheduled repayments of FHLB advances as of December 31, 2016 were as follows (in thousands): 2017 $ 2,055 2018 52,118 2019 10,000 2020 10,000 2021 10,000 Thereafter --- $ 84,173 Federal Reserve Bank Borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at December 31, 2016 and 2015, and the Company had approximately $18.1 million and $18.5 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $20.7 million and $21.6 million at December 31, 2016 and 2015, respectively.

LONG TERM DEBT

LONG TERM DEBT	12 Months Ended
	Dec. 31, 2016
LONG TERM DEBT [Abstract]
LONG TERM DEBT	NOTE 9 – LONG TERM DEBT The Company has outstanding $40.0 million aggregate liquidation amount of pooled trust preferred securities ("TRUPs") issued through its wholly-owned subsidiary grantor trusts. Macatawa Statutory Trust I issued $619,000 of common securities to the Company and $20.0 million aggregate liquidation amount of Preferred Securities with a floating interest rate of three-month LIBOR plus 3.05%, maturing on July 15, 2033. Macatawa Statutory Trust II issued $619,000 of common securities and $20.0 million aggregate liquidation amount of Preferred Securities with a floating interest rate of three-month LIBOR plus 2.75%, maturing on March 18, 2034. The Company issued subordinated debentures (“Debentures”) to each trust in exchange for ownership of all of the common securities of each trust and the $41,238,000 in proceeds of the offerings, which Debentures represent the sole asset of each trust. The Preferred Securities represent an interest in the Company’s Debentures, which have terms that are similar to the Preferred Securities. The Company is not considered the primary beneficiary of each trust (variable interest entity), therefore each trust is not consolidated in the Company’s financial statements, rather the Debentures are shown as a liability. The Company has the option to defer interest payments on the Debentures from time to time for up to twenty consecutive quarterly payments, although interest continues to accrue on the outstanding balance. During any deferral period, the Company may not declare or pay any dividends on the Company’s common stock or preferred stock or make any payment on any outstanding debt obligations that rank equally with or junior to the Debentures. The Company also has the option to redeem and prepay both the TRUPs and the Debentures. At December 31, 2016, the Company does not have any intention to redeem or prepay either of the TRUPs or Debentures. At December 31, 2016 and 2015, Debentures totaling $41,238,000 are reported in liabilities as long-term debt, and the common securities of $1,238,000 and unamortized debt issuance costs are included in other assets. The Preferred Securities may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. At December 31, 2016 and 2015, approximately $40.0 million of the Preferred Securities issued qualified as Tier 1 capital for regulatory capital purposes.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 10 – RELATED PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates were as follows (dollars in thousands). 2016 2015 Beginning balance $ 17,351 $ 10,077 New loans and renewals 13,223 22,550 Repayments and renewals (12,648 ) (15,114 ) Effect of changes in related parties 6,407 (162 ) Ending balance $ 24,333 $ 17,351 Deposits from principal officers, directors, and their affiliates at December 31, 2016 and 2015 were $92.9 million and $72.9 million, respectively. The majority of the deposit balances for each year are associated with institutional accounts of affiliated organizations of one of the Company’s directors. During 2015, the Bank entered into a back-to-back swap agreement (see Note 1 – Derivatives) with a company affiliated with one of the Company’s directors. Terms were at market rates and the total notional amount of the agreement was $16.8 million and $17.7 million at December 31, 2016 and 2015.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2016
STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATION	NOTE 11 – STOCK-BASED COMPENSATION The Company has stock-based compensation plans for its employees (the Employees’ Plans) and directors (the Directors’ Plans). The Employees’ Plans permit the grant of stock options or the issuance of restricted stock for up to 1,917,210 shares of common stock. The Directors’ Plans permit the grant of stock options or the issuance of restricted stock for up to 473,278 shares of common stock. Issuance from these plans was curtailed in 2015. On May 5, 2015, the Company’s shareholders approved the Macatawa Bank Corporation Stock Incentive Plan of 2015 (the 2015 Plan). The 2015 Plan provides for grant of up to 1,500,000 shares of Macatawa common stock in the form of stock options or restricted stock awards to employees and directors. There were 1,365,975 shares under the “2015 Plan” available for future issuance as of December 31, 2016. The Company issues new shares under its stock-based compensation plans from its authorized but unissued shares. Stock Options Option awards are granted with an exercise price equal to the market price at the date of grant. Option awards have vesting periods ranging from one to three years and have ten year contractual terms. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The Company expects that all options granted will vest and become exercisable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no options granted during 2016, 2015 and 2014. A summary of option activity in the plans is as follows (dollars in thousands, except per option data): Options Number Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at January 1, 2016 102,299 $ 13.04 --- --- Forfeited (8,000 ) 8.57 --- --- Expired (41,299 ) 19.64 --- --- Outstanding at December 31, 2016 53,000 $ 8.57 1.05 $ 97,520 Exercisable at December 31, 2016 53,000 $ 8.57 1.05 $ 97,520 Information related to stock options during each year follows (dollars in thousands): 2016 2015 2014 Intrinsic value of options exercised $ --- $ --- $ --- Cash received from option exercises --- --- --- Tax benefit realized from option exercises --- --- --- There was no compensation cost for stock options in 2016, 2015 and 2014. As of December 31, 2016, there was no unrecognized cost related to nonvested stock options granted under the Company’s stock-based compensation plans. Restricted Stock Awards Restricted stock awards have vesting periods of up to three years. A summary of changes in the Company’s nonvested restricted stock awards for the year follows: Nonvested Stock Awards Shares Weighted- Average Grant-Date Fair Value Aggregate Intrinsic Value Outstanding at January 1, 2016 197,846 $ 5.34 $ 1,196,968 Granted 46,025 9.67 479,120 Vested (111,323 ) 5.28 1,158,872 Forfeited --- --- --- Outstanding at December 31, 2016 132,548 $ 6.88 $ 1,379,825 Compensation cost related to restricted stock awards totaled $536,000, $478,000 and $338,000 for 2016, 2015 and 2014, respectively. As of December 31, 2016, there was $864,000 of total remaining unrecognized compensation cost related to nonvested restricted stock awards granted under the Company’s stock-based compensation plans. The cost is expected to be recognized over a weighted-average period of 1.46 years. The total grant date fair value of restricted stock awards vested during 2016 was $588,000. The total grant date fair value of restricted stock awards vested during 2015 was $471,000. The total grant date fair value of restricted stock awards vested during 2014 was $299,000.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Dec. 31, 2016
EMPLOYEE BENEFITS [Abstract]
EMPLOYEE BENEFITS	NOTE 12 – EMPLOYEE BENEFITS The Company sponsors a 401(k) plan which covers substantially all employees. Employees may elect to contribute to the plan up to the maximum percentage of compensation and dollar amount subject to statutory limitations. Beginning January 1, 2013, the Company’s contribution was set using a matching formula of 100% of the first 3% of employee contributions and 50% of employee contributions in excess of 3%, up to 5%. The Company’s contributions were approximately $673,000, $665,000 and $630,000 for 2016, 2015 and 2014, respectively. The Company sponsors an Employee Stock Purchase Plan which covers substantially all employees. Employees are allowed to direct the Company to withhold payroll dollars and purchase Company stock at market price on a payroll by payroll basis. The Company has reserved 210,000 shares of common stock to be issued under the plan. The plan allows for shares to be issued directly from the Company or purchased on the open market.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2016
EARNINGS PER COMMON SHARE [Abstract]
EARNINGS PER COMMON SHARE	NOTE 13 - EARNINGS PER COMMON SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per common share are as follows (dollars in thousands, except per share data): 2016 2015 2014 Net income available to common shares $ 15,951 $ 12,794 $ 10,473 Weighted average shares outstanding, including participating stock awards - 33,922,548 33,872,814 33,803,030 Dilutive potential common shares: Stock options --- --- --- Stock warrants --- --- --- Weighted average shares outstanding - 33,922,548 33,872,814 33,803,030 Basic earnings per common share $ 0.47 $ 0.38 $ 0.31 Diluted earnings per common share $ 0.47 $ 0.38 $ 0.31 Stock options for 53,000, 102,299 and 260,261 shares of common stock were not considered in computing diluted earnings per share for 2016, 2015 and 2014, respectively, because they were antidilutive.

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	12 Months Ended
	Dec. 31, 2016
FEDERAL INCOME TAXES [Abstract]
FEDERAL INCOME TAXES	NOTE 14 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): 2016 2015 2014 Current $ 5,289 $ 2,335 $ 1,724 Deferred 942 3,291 2,849 $ 6,231 $ 5,626 $ 4,573 The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): 2016 2015 2014 Statutory rate 35 % 35 % 35 % Statutory rate applied to income before taxes $ 7,764 $ 6,447 $ 5,266 Deduct Tax-exempt interest income (620 ) (529 ) (391 ) Bank-owned life insurance (342 ) (232 ) (237 ) Tax return credits and other adjustments (513 ) --- --- Other, net (58 ) (60 ) (65 ) $ 6,231 $ 5,626 $ 4,573 The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, we consider positive and negative evidence, including taxable income in carry-back years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies. No valuation allowance was necessary at December 31, 2016, 2015 or 2014. The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): 2016 2015 Deferred tax assets Allowance for loan losses $ 5,937 $ 5,978 Nonaccrual loan interest 718 850 Valuation allowance on other real estate owned 3,714 3,782 Unrealized loss on securities available for sale 799 --- Other 176 647 Gross deferred tax assets 11,344 11,257 Valuation allowance --- --- Total net deferred tax assets 11,344 11,257 Deferred tax liabilities Depreciation (1,705 ) (1,739 ) Prepaid expenses (399 ) (191 ) Unrealized gain on securities available for sale --- (187 ) Other (377 ) (321 ) Gross deferred tax liabilities (2,481 ) (2,438 ) Net deferred tax asset $ 8,863 $ 8,819 There were no unrecognized tax benefits at December 31, 2016 or 2015 and the Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company is no longer subject to examination by the Internal Revenue Service for years before 2012.

COMMITMENTS AND OFF BALANCE-SHE

COMMITMENTS AND OFF BALANCE-SHEET RISK	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
COMMITMENTS AND OFF-BALANCE-SHEET RISK	NOTE 15 – COMMITMENTS AND OFF BALANCE-SHEET RISK Some financial instruments are used to meet customer financing needs and to reduce exposure to interest rate changes. These financial instruments include commitments to extend credit and standby letters of credit. These involve, to varying degrees, credit and interest rate risk in excess of the amount reported in the financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment, and generally have fixed expiration dates. Standby letters of credit are conditional commitments to guarantee a customer’s performance to a third party. Exposure to credit loss if the other party does not perform is represented by the contractual amount for commitments to extend credit and standby letters of credit. Collateral or other security is normally not obtained for these financial instruments prior to their use and many of the commitments are expected to expire without being used. A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at year-end (dollars in thousands): 2016 2015 Commitments to make loans $ 90,293 $ 97,991 Letters of credit 13,823 12,976 Unused lines of credit 437,435 426,080 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $19.8 million and $19.8 million at December 31, 2016 and 2015, respectively. At year-end 2016 approximately 47.0% of the Bank’s commitments to make loans were at fixed rates, offered at current market rates. The remainder of the commitments to make loans were at variable rates tied to the prime rate and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to the prime rate.

CONTINGENCIES

CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
CONTINGENCIES [Abstract]
CONTINGENCIES	NOTE 16 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of December 31, 2016, there were no material pending legal proceedings to which we or any of our subsidiaries are a party or which any of our properties are the subject.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 17 – SHAREHOLDERS' EQUITY Regulatory Capital The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. The prompt corrective action regulations provide five categories, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is only adequately capitalized, regulatory approval is required to, among other things, accept, renew or roll-over brokered deposits. If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required. In July 2013, the Board of Governors of the Federal Reserve Board and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (commonly known as Basel III). Under the final rules, which began for the Company and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements will increase for both the quantity and quality of capital held by the Company and the Bank. The rules include a new minimum common equity Tier 1 capital to risk-weighted assets ratio (CET1 ratio) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which when fully phased-in, effectively results in a minimum CET1 ratio of 7.0%. Basel III raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in), which effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures. Actual capital levels (dollars in thousands) and minimum required levels were as follows at year-end: Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2016 CET1 capital (to risk weighted assets) Consolidated $ 163,663 11.0 % $ 66,743 4.5 % $ 76,013 5.1 % N/A N/A Bank 197,972 13.4 66,737 4.5 76,006 5.1 $ 96,398 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 203,663 13.7 88,991 6.0 98,261 6.6 N/A N/A Bank 197,972 13.4 88,983 6.0 98,252 6.6 118,644 8.0 Total capital (to risk weighted assets) Consolidated 220,625 14.9 118,655 8.0 127,925 8.6 N/A N/A Bank 214,934 14.5 118,644 8.0 127,913 8.6 148,305 10.0 Tier 1 capital (to average assets) Consolidated 203,663 12.0 67,810 4.0 N/A N/A N/A N/A Bank 197,972 11.7 67,742 4.0 N/A N/A 84,677 5.0 December 31, 2015 CET1 capital (to risk weighted assets) Consolidated $ 151,630 10.8 % $ 63,479 4.5 % N/A N/A N/A N/A Bank 186,930 13.2 63,463 4.5 N/A N/A $ 91,668 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 191,630 13.6 84,638 6.0 N/A N/A N/A N/A Bank 186,930 13.2 84,617 6.0 N/A N/A 112,822 8.0 Total capital (to risk weighted assets) Consolidated 208,711 14.8 112,851 8.0 N/A N/A N/A N/A Bank 203,471 14.4 112,822 8.0 N/A N/A 141,028 10.0 Tier 1 capital (to average assets) Consolidated 191,630 11.5 66,400 4.0 N/A N/A N/A N/A Bank 186,930 11.2 66,332 4.0 N/A N/A 82,915 5.0 Approximately $40.0 million of trust preferred securities outstanding at December 31, 2016 and 2015, respectively, qualified as Tier 1 capital. The Bank was categorized as "well capitalized" at December 31, 2016 and 2015. Issuance of Capital A summary of the capital instruments activity during recent years is as follows: Warrants In 2009 the Company issued warrants to purchase a total of 1,478,811 shares of common stock at an exercise price of $9.00 per share. These warrants expired in 2015 (five years after commencement of exercise period), with one warrant to purchase 392 shares having been executed during the exercise period.

CONDENSED FINANCIAL STATEMENTS

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)	12 Months Ended
	Dec. 31, 2016
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) [Abstract]
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)	NOTE 18 – CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) Following are condensed parent company only financial statements (dollars in thousands): CONDENSED BALANCE SHEETS 2016 2015 ASSETS Cash and cash equivalents $ 5,542 $ 4,818 Investment in Bank subsidiary 196,548 186,737 Investment in other subsidiaries 1,471 1,478 Other assets 134 362 Total assets $ 203,695 $ 193,395 LIABILITIES AND SHAREHOLDERS' EQUITY Long-term debt 41,238 41,238 Other liabilities 218 180 Total liabilities 41,456 41,418 Total shareholders' equity 162,239 151,977 Total liabilities and shareholders' equity $ 203,695 $ 193,395 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 2016 2015 2014 INCOME Dividends from subsidiaries $ 6,238 $ 5,160 $ 4,139 Other --- --- --- Total income 6,238 5,160 4,139 EXPENSE Interest expense 1,503 1,331 1,311 Other expense 665 592 611 Total expense 2,168 1,923 1,922 Income before income tax and equity in undistributed earnings of subsidiaries 4,070 3,237 2,217 Equity in undistributed earnings of subsidiaries 11,128 8,893 7,592 Income before income tax 15,198 12,130 9,809 Income tax benefit (753 ) (664 ) (664 ) Net income $ 15,951 $ 12,794 $ 10,473 Comprehensive income $ 14,120 $ 13,080 $ 12,489 CONDENSED STATEMENTS OF CASH FLOWS 2016 2015 2014 Cash flows from operating activities Net income $ 15,951 $ 12,794 $ 10,473 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (11,128 ) (8,893 ) (7,592 ) Stock compensation expense 33 18 2 Change in other assets 148 2,237 673 Change in other liabilities 38 (9 ) (29 ) Net cash from operating activities 5,042 6,147 3,527 Cash flows from investing activities Investment in subsidiaries --- --- --- Net cash from investing activities --- --- --- Cash flows from financing activities Proceeds from issuance of common stock --- --- 4 Cash dividends paid (4,049 ) (3,702 ) (2,689 ) Common stock issuance costs --- --- (102 ) Repurchases of shares (269 ) (171 ) (106 ) Net cash from financing activities (4,318 ) (3,873 ) (2,893 ) Net change in cash and cash equivalents 724 2,274 634 Cash and cash equivalents at beginning of year 4,818 2,544 1,910 Cash and cash equivalents at end of year $ 5,542 $ 4,818 $ 2,544

QUARTERLY FINANCIAL DATA (Unaud

QUARTERLY FINANCIAL DATA (Unaudited)	12 Months Ended
	Dec. 31, 2016
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
QUARTERLY FINANCIAL DATA (Unaudited)	NOTE 19 – QUARTERLY FINANCIAL DATA (Dollars in thousands except per share data) Earnings Per Common Share Interest Income Net Interest Income Provision for Loan Losses Net Income Basic Diluted 2016 First quarter $ 13,008 $ 11,738 $ (100 ) $ 3,495 $ 0.10 $ 0.10 Second quarter 12,873 11,608 (750 ) 3,745 0.11 0.11 Third quarter 13,122 11,902 (250 ) 4,603 0.14 0.14 Fourth quarter 13,496 12,292 (250 ) 4,108 0.12 0.12 2015 First quarter $ 12,011 $ 10,652 $ (1,000 ) $ 2,840 $ 0.08 $ 0.08 Second quarter 12,238 10,845 (500 ) 3,215 0.09 0.09 Third quarter 12,427 11,121 (250 ) 3,201 0.09 0.09 Fourth quarter 12,709 11,461 (1,750 ) 3,538 0.10 0.10 Net income for the first quarter of 2016 was positively impacted by the distribution of $290,000 in net benefits from bank owned life insurance due to the death of a former employee. Net income for the third quarter of 2016 was positively impacted by $513,000 due to the realization of certain tax credits and other adjustments from the Company’s 2015 federal income tax return which was filed during the quarter. Net income and provision for loan losses for the fourth quarter of 2015 are positively impacted by the reduction in the specific reserve on an impaired loan which was upgraded in the fourth quarter of 2015.

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Nature of Operations and Principles of Consolidation	Nature of Operations and Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common securities of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are discussed in a separate note. Under generally accepted accounting principles, these trusts are not consolidated into the financial statements of the Company.
Use of Estimates	Use of Estimates
Concentration of Credit Risk	Concentration of Credit Risk
Cash Flow Reporting	Cash Flow Reporting
Securities	Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments. Gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available for sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments — Debt and Equity Instruments In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management has determined that no OTTI charges were necessary during 2016, 2015 and 2014.
Federal Home Loan Bank (FHLB) Stock	Federal Home Loan Bank (FHLB) Stock
Loans Held for Sale	Loans Held for Sale
Loans	Loans Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the respective term of the loan using the level‑yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost‑recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Allowance for Loan Losses	Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative environmental factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class as well as the loan risk grade assignment for commercial loans. At December 31, 2016, an 18 month (six quarter) annualized historical loss experience was used for commercial loans and a 12 month (four quarter) historical loss experience period was applied to residential mortgage and consumer loan portfolios. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative environmental factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, competition, increasing interest rates, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral.
Transfers of Financial Assets	Transfers of Financial Assets
Foreclosed Assets	Foreclosed Assets
Premises and Equipment	Premises and Equipment
Bank-Owned Life Insurance (BOLI)	Bank-Owned Life Insurance (BOLI):
Goodwill and Acquired Intangible Assets	Goodwill and Acquired Intangible Assets Acquired intangible assets consist of core deposit and customer relationship intangible assets arising from acquisitions. They are initially measured at fair value and then are amortized on an accelerated method over their estimated useful lives, which range from ten to sixteen years. The Company had no acquired intangible assets at December 31, 2016 and 2015.
Long-term Assets	Long-term Assets
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments
Mortgage Banking Derivatives	Mortgage Banking Derivatives Changes in the fair values of these interest rate lock and forward commitment derivatives are included in net gains on mortgage loans. The net fair value of mortgage banking derivatives was approximately $51,000 and $38,000 at December 31, 2016 and 2015, respectively.
Derivatives	Derivatives
Income Taxes	Income Taxes The Company recognizes a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Earnings Per Common Share	Earnings Per Common Share
Comprehensive Income (Loss)	Comprehensive Income
Loss Contingencies	Loss Contingencies
Restrictions on Cash	Restrictions on Cash
Stock Splits and Dividends	Stock Splits and Dividends
Dividend Restriction	Dividend Restriction
Fair Values of Financial Instruments	Fair Values of Financial Instruments
Segment Reporting	Segment Reporting
Reclassifications	Reclassifications
Adoption of New Accounting Standards	Adoption of New Accounting Standards Simplifying the Presentation of Debt Issuance Costs FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Newly Issued Not Yet Effective Standards Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers This ASU may require us to change how we recognize certain recurring revenue streams within trust and investment management fees, however, we do not expect these changes to have a significant effect on our financial statements FASB issued ASU 2016-02, Leases FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force).

SECURITIES (Tables)

SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2016
SECURITIES [Abstract]
Amortized Cost and Fair Value of Securities	The amortized cost and fair value of securities were as follows (dollars in thousands): Amortized Gross Gross Fair December 31, 2016 Available for Sale: U.S. Treasury and federal agency securities $ 85,582 $ 49 $ (1,281 ) $ 84,350 U.S. Agency MBS and CMOs 12,037 11 (231 ) 11,817 Tax-exempt state and municipal bonds 39,578 212 (603 ) 39,187 Taxable state and municipal bonds 34,255 65 (437 ) 33,883 Corporate bonds and other debt securities 13,765 16 (55 ) 13,726 Other equity securities 1,500 --- (30 ) 1,470 $ 186,717 $ 353 $ (2,637 ) $ 184,433 Held to Maturity Tax-exempt state and municipal bonds $ 69,378 $ 573 $ (102 ) $ 69,849 December 31, 2015 Available for Sale: U.S. Treasury and federal agency securities $ 74,618 $ 48 $ (274 ) $ 74,392 U. S. Agency MBS and CMOs 13,828 35 (108 ) 13,755 Tax-exempt state and municipal bonds 32,943 692 (37 ) 33,598 Taxable state and municipal bonds 28,554 246 (37 ) 28,763 Corporate bonds and other debt securities 14,838 19 (44 ) 14,813 Other equity securities 1,500 --- (6 ) 1,494 $ 166,281 $ 1,040 $ (506 ) $ 166,815 Held to Maturity: Tax-exempt state and municipal bonds $ 51,856 $ 986 $ (5 ) $ 52,837
Contractual Maturities of Debt Securities	Contractual maturities of debt securities at December 31, 2016 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 25,203 $ 25,156 $ 17,192 $ 17,228 Due from one to five years 14,801 15,069 94,916 94,067 Due from five to ten years 8,279 8,443 57,224 56,200 Due after ten years 21,095 21,181 15,885 15,468 $ 69,378 $ 69,849 $ 185,217 $ 182,963
Securities in Continuous Unrealized Loss Position	Securities with unrealized losses at December 31, 2016 and 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): Less than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 59,129 $ (1,271 ) $ 3,053 $ (10 ) $ 62,182 $ (1,281 ) U.S. Agency MBS and CMOs 10,702 (231 ) --- --- 10,702 (231 ) Tax-exempt state and municipal bonds 49,508 (698 ) 1,672 (7 ) 51,180 (705 ) Taxable state and municipal bonds 22,633 (437 ) --- --- 22,633 (437 ) Corporate bonds and other debt securities 5,745 (50 ) 500 (5 ) 6,245 (55 ) Other equity securities 1,470 (30 ) --- --- 1,470 (30 ) Total temporarily impaired $ 149,187 $ (2,717 ) $ 5,225 $ (22 ) $ 154,412 $ (2,739 ) Less than 12 Months 12 Months or More Total December 31, 2015 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 35,090 $ (187 ) $ 7,036 $ (82 ) $ 42,126 $ (269 ) U.S. Agency MBS and CMOs 8,842 (108 ) --- --- 8,842 (108 ) Tax-exempt state and municipal bonds 3,487 (9 ) 2,022 (33 ) 5,509 (42 ) Taxable state and municipal bonds 8,158 (29 ) 640 (8 ) 8,798 (37 ) Corporate bonds and other debt securities 9,330 (47 ) 499 (2 ) 9,829 (49 ) Other equity securities 1,494 (6 ) --- --- 1,494 (6 ) Total temporarily impaired $ 66,401 $ (386 ) $ 10,197 $ (125 ) $ 76,598 $ (511 )

LOANS (Tables)

LOANS (Tables)	12 Months Ended
	Dec. 31, 2016
LOANS [Abstract]
Portfolio Loans	Portfolio loans were as follows (dollars in thousands): December 31, 2016 December 31, 2015 Commercial and industrial $ 449,342 $ 377,298 Commercial real estate: Residential developed 11,970 10,448 Unsecured to residential developers 4,734 7,372 Vacant and unimproved 40,286 42,881 Commercial development 378 559 Residential improved 75,348 67,922 Commercial improved 289,478 289,651 Manufacturing and industrial 95,787 89,839 Total commercial real estate 517,981 508,672 Consumer Residential mortgage 217,614 209,972 Unsecured 396 637 Home equity 88,113 92,716 Other secured 7,366 8,637 Total consumer 313,489 311,962 Total loans 1,280,812 1,197,932 Allowance for loan losses (16,962 ) (17,081 ) $ 1,263,850 $ 1,180,851
Activity in Allowance for Loan Losses by Portfolio Segment	The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (205 ) --- (205 ) Recoveries 162 1,090 184 --- 1,436 Provision for loan losses 1,357 (2,844 ) 131 6 (1,350 ) Ending Balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs (172 ) (218 ) (312 ) --- (702 ) Recoveries 406 1,264 651 --- 2,321 Provision for loan losses (1,581 ) (1,279 ) (624 ) (16 ) (3,500 ) Ending Balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 2014 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,174 $ 10,868 $ 3,703 $ 53 $ 20,798 Charge-offs (43 ) (134 ) (499 ) --- (676 ) Recoveries 522 1,481 187 --- 2,190 Provision for loan losses (480 ) (3,525 ) 655 --- (3,350 ) Ending Balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method	The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): December 31, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 605 $ 368 $ 723 $ --- $ 1,696 Collectively evaluated for impairment 5,740 6,335 3,148 43 15,266 Total ending allowance balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 Loans: Individually reviewed for impairment $ 5,994 $ 11,934 $ 11,726 $ --- $ 29,654 Collectively evaluated for impairment 443,348 506,047 301,763 --- 1,251,158 Total ending loans balance $ 449,342 $ 517,981 $ 313,489 $ --- $ 1,280,812 December 31, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 673 $ 436 $ 829 $ --- $ 1,938 Collectively evaluated for impairment 4,153 8,021 2,932 37 15,143 Total ending allowance balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Loans: Individually reviewed for impairment $ 7,718 $ 17,569 $ 13,463 $ --- $ 38,750 Collectively evaluated for impairment 369,580 491,103 298,499 --- 1,159,182 Total ending loans balance $ 377,298 $ 508,672 $ 311,962 $ --- $ 1,197,932
Loans Individually Evaluated for Impairment by Class of Loans	The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016 (dollars in thousands): December 31, 2016 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 2,298 $ 2,298 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development --- --- --- Residential improved 27 27 --- Commercial improved 350 350 --- Manufacturing and industrial --- --- --- 377 377 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 2,675 $ 2,675 $ --- With an allowance recorded: Commercial and industrial $ 3,696 $ 3,696 $ 605 Commercial real estate: Residential developed 187 187 4 Unsecured to residential developers --- --- --- Vacant and unimproved 387 387 9 Commercial development 189 189 6 Residential improved 4,687 4,687 216 Commercial improved 5,879 5,879 128 Manufacturing and industrial 228 228 5 11,557 11,557 368 Consumer: Residential mortgage 7,523 7,523 464 Unsecured --- --- --- Home equity 4,203 4,203 259 Other secured --- --- --- 11,726 11,726 723 Total with an allowance recorded $ 26,979 $ 26,979 $ 1,696 Total $ 29,654 $ 29,654 $ 1,696 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015 (dollars in thousands): December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 2,736 $ 2,736 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 206 206 --- Commercial development --- --- --- Residential improved 5 5 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 211 211 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 2,947 $ 2,947 $ --- With an allowance recorded: Commercial and industrial $ 4,982 $ 4,982 $ 673 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 247 247 7 Commercial development 192 192 6 Residential improved 5,254 5,254 140 Commercial improved 11,425 11,425 274 Manufacturing and industrial 240 240 9 17,358 17,358 436 Consumer: Residential mortgage 8,655 8,655 533 Unsecured --- --- --- Home equity 4,808 4,808 296 Other secured --- --- --- 13,463 13,463 829 Total with an allowance recorded $ 35,803 $ 35,803 $ 1,938 Total $ 38,750 $ 38,750 $ 1,938
Average Balances of Impaired Loans and Interest Recognized on Impaired Loans	The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): 2016 2015 2014 Average of impaired loans during the period: Commercial and industrial $ 6,468 $ 7,296 $ 11,818 Commercial real estate: Residential developed 78 577 3,628 Unsecured to residential developers --- --- --- Vacant and unimproved 422 1,231 1,646 Commercial development 191 195 451 Residential improved 5,273 6,425 9,309 Commercial improved 7,332 15,106 17,853 Manufacturing and industrial 235 1,944 5,630 Consumer 12,602 14,259 14,476 Interest income recognized during impairment: Commercial and industrial 993 1,110 1,108 Commercial real estate 643 967 1,527 Consumer 444 497 541 Cash-basis interest income recognized Commercial and industrial 992 1,066 1,107 Commercial real estate 647 970 1,547 Consumer 443 502 541
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans	The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2016 and 2015: December 31, 2016 Nonaccrual Over 90 days Accruing Commercial and industrial $ 36 $ --- Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 6 --- Commercial improved 128 --- Manufacturing and industrial --- --- 183 --- Consumer: Residential mortgage 58 --- Unsecured 16 --- Home equity 7 --- Other secured --- --- 81 --- Total $ 300 $ --- December 31, 2015 Nonaccrual Over 90 days Accruing Commercial and industrial $ 174 $ --- Commercial real estate: Residential developed 195 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 124 --- Commercial improved 157 --- Manufacturing and industrial --- --- 525 --- Consumer: Residential mortgage 2 --- Unsecured 28 --- Home equity 10 17 Other secured --- --- 40 17 Total $ 739 $ 17
Aging of Recorded Investment in Past Due Loans by Class of Loans	The following table presents the aging of the recorded investment in past due loans as of December 31, 2016 by class of loans (dollars in thousands): December 31, 2016 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 425 $ 28 $ 453 $ 448,889 $ 449,342 Commercial real estate: Residential developed --- --- --- 11,970 11,970 Unsecured to residential developers --- --- --- 4,734 4,734 Vacant and unimproved --- --- --- 40,286 40,286 Commercial development --- 49 49 329 378 Residential improved 74 5 79 75,269 75,348 Commercial improved 478 --- 478 289,000 289,478 Manufacturing and industrial --- --- --- 95,787 95,787 552 54 606 517,375 517,981 Consumer: Residential mortgage 64 56 120 217,494 217,614 Unsecured --- --- --- 396 396 Home equity 187 --- 187 87,926 88,113 Other secured 81 --- 81 7,285 7,366 332 56 388 313,101 313,489 Total $ 1,309 $ 138 $ 1,447 $ 1,279,365 $ 1,280,812 The following table presents the aging of the recorded investment in past due loans as of December 31, 2015 by class of loans (dollars in thousands): December 31, 2015 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 719 $ 100 $ 819 $ 376,479 $ 377,298 Commercial real estate: Residential developed --- --- --- 10,448 10,448 Unsecured to residential developers --- --- --- 7,372 7,372 Vacant and unimproved --- --- --- 42,881 42,881 Commercial development --- 49 49 510 559 Residential improved 73 6 79 67,843 67,922 Commercial improved 375 --- 375 289,276 289,651 Manufacturing and industrial --- --- --- 89,839 89,839 448 55 503 508,169 508,672 Consumer: Residential mortgage --- --- --- 209,972 209,972 Unsecured --- --- --- 637 637 Home equity 32 17 49 92,667 92,716 Other secured --- --- --- 8,637 8,637 32 17 49 311,913 311,962 Total $ 1,199 $ 172 $ 1,371 $ 1,196,561 $ 1,197,932
Troubled Debt Restructurings	The following table presents information regarding TDRs as of December 31, 2016 and 2015 (dollars in thousands): 2016 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 25 $ 5,994 33 $ 7,611 Commercial real estate 49 11,933 56 17,871 Consumer 116 12,059 124 13,570 190 $ 29,986 213 $ 39,052 The following table presents information related to accruing TDRs as of December 31, 2016, 2015 and 2014. The table presents the amount of accruing TDRs that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of December 31, 2016, 2015 and 2014 (dollars in thousands): 2016 2015 2014 Accruing TDR - nonaccrual at restructuring $ --- $ --- $ --- Accruing TDR - accruing at restructuring 25,665 33,691 46,197 Accruing TDR - upgraded to accruing after six consecutive payments 4,172 4,784 --- $ 29,837 $ 38,475 $ 46,197 The following tables present information regarding troubled debt restructurings executed during the years ended December 31, 2016, 2015 and 2014 (dollars in thousands): 2016 2015 2014 # of Pre-TDR Writedown # of Pre-TDR Writedown # of Pre-TDR Writedown Commercial and industrial --- $ --- $ --- 6 $ 745 $ --- 1 $ 61 $ --- Commercial real estate 1 56 --- 3 301 --- 11 4,345 --- Consumer 7 289 --- 34 1,000 --- 39 1,422 --- 8 $ 345 $ --- 43 2,046 $ --- 51 $ 5,828 $ ---
Risk Grade Category of Loans by Class of Loans	At year end, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): December 31, 2016 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 27,619 $ 118,243 $ 282,527 $ 14,610 $ 6,307 $ 36 $ --- $ 449,342 Commercial real estate: Residential developed --- --- 2,328 8,786 856 --- --- --- 11,970 Unsecured to residential developers --- --- --- 4,734 --- --- --- --- 4,734 Vacant and unimproved --- --- 17,672 19,028 3,586 --- --- --- 40,286 Commercial development --- --- --- 140 --- 189 49 --- 378 Residential improved --- --- 7,100 63,957 2,628 1,657 6 --- 75,348 Commercial improved --- 2,433 66,259 210,449 9,084 1,125 128 --- 289,478 Manufacturing & industrial --- 1,665 38,719 51,718 3,076 609 --- --- 95,787 $ --- $ 31,717 $ 250,321 $ 641,339 $ 33,840 $ 9,887 $ 219 $ --- $ 967,323 December 31, 2015 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 196 $ 8,774 $ 114,451 $ 242,253 $ 5,235 $ 6,215 $ 174 $ --- $ 377,298 Commercial real estate: Residential developed --- --- 2,226 5,191 2,836 --- 195 --- 10,448 Unsecured to residential developers --- --- --- 7,372 --- --- --- --- 7,372 Vacant and unimproved --- --- 17,768 20,588 4,525 --- --- --- 42,881 Commercial development --- --- --- 318 --- 192 49 --- 559 Residential improved --- --- 7,191 54,376 4,722 1,509 124 --- 67,922 Commercial improved --- 3,094 60,475 208,127 15,645 2,153 157 --- 289,651 Manufacturing & industrial --- 1,478 34,857 50,023 3,481 --- --- --- 89,839 $ 196 $ 13,346 $ 236,968 $ 588,248 $ 36,444 $ 10,069 $ 699 $ --- $ 885,970
Commercial Loans Classified as Substandard or Worse	Commercial loans classified as substandard or worse were as follows at year-end (dollars in thousands): 2016 2015 Not classified as impaired $ 2,608 $ 1,986 Classified as impaired 7,498 8,782 Total commercial loans classified substandard or worse $ 10,106 $ 10,768
Recorded Investment in Consumer Loans Based on Payment Activity	The following tables present the recorded investment in consumer loans based on payment activity as of December 31, 2016 and 2015 (dollars in thousands): December 31, 2016 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 217,558 $ 396 $ 88,113 $ 7,366 Nonperforming 56 --- --- --- Total $ 217,614 $ 396 $ 88,113 $ 7,366 December 31, 2015 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 209,972 $ 637 $ 92,699 $ 8,637 Nonperforming --- --- 17 --- Total $ 209,972 $ 637 $ 92,716 $ 8,637

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	12 Months Ended
	Dec. 31, 2016
OTHER REAL ESTATE OWNED [Abstract]
Period-End Other Real Estate Owned	Other real estate owned was as follows (dollars in thousands): 2016 2015 2014 Beginning balance $ 28,377 $ 43,071 $ 53,501 Additions, transfers from loans 339 2,520 4,932 Proceeds from sales of other real estate owned (5,339 ) (11,540 ) (12,487 ) Valuation allowance reversal upon sale (1,158 ) (4,748 ) (3,499 ) Gain (loss) on sales of other real estate owned 645 (926 ) 624 22,864 28,377 43,071 Less: valuation allowance (10,611 ) (10,805 ) (14,829 ) Ending balance $ 12,253 $ 17,572 $ 28,242
Activity in Valuation Allowance	Activity in the valuation allowance was as follows (dollars in thousands): 2016 2015 2014 Beginning balance $ 10,805 $ 14,829 $ 16,705 Additions charged to expense 964 724 1,623 Reversals upon sale (1,158 ) (4,748 ) (3,499 ) Ending balance $ 10,611 $ 10,805 $ 14,829

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
	Dec. 31, 2016
FAIR VALUE [Abstract]
Assets Measured at Fair Value on a Recurring Basis	Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2016 U.S. Treasury and federal agency securities $ 84,350 $ --- $ 84,350 $ --- U.S. Agency MBS and CMOs 11,817 --- 11,817 --- Tax-exempt state and municipal bonds 39,187 --- 39,187 --- Taxable state and municipal bonds 33,883 --- 33,883 --- Corporate bonds and other debt securities 13,726 --- 13,726 --- Other equity securities 1,470 --- 1,470 --- Loans held for sale 2,181 --- 2,181 --- Interest rate swaps 494 --- --- 494 Interest rate swaps (494 ) --- --- (494 ) December 31, 2015 U.S. Treasury and federal agency securities $ 74,392 $ --- $ 74,392 $ --- U.S. Agency MBS and CMOs 13,755 --- 13,755 --- Tax-exempt state and municipal bonds 33,598 --- 33,598 --- Taxable state and municipal bonds 28,763 --- 28,763 --- Corporate bonds and other debt securities 14,813 --- 14,813 --- Other equity securities 1,494 --- 1,494 --- Loans held for sale 2,776 --- 2,776 --- Interest rate swaps 790 --- --- 790 Interest rate swaps (790 ) --- --- (790 )
Assets Measured at Fair Value on a Non-Recurring Basis	Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2016 Impaired loans $ 3,436 $ --- $ --- $ 3,436 Other real estate owned 9,542 --- --- 9,542 December 31, 2015 Impaired loans $ 6,573 $ --- $ --- $ 6,573 Other real estate owned 13,602 --- --- 13,602
Quantitative Information about Level 3 Fair Value Measurements Measured on a Non-Recurring Basis	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at year end (dollars in thousands). Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2016 Impaired Loans $ 3,436 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 35.0 Income approach Capitalization rate 9.5 to 11.5 Other real estate owned 9,542 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 32.5 Income approach Capitalization rate 9.5 to 11.5 Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2015 Impaired Loans $ 6,573 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 19.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 13,602 Sales comparison approach Adjustment for differences between comparable sales 4.5 to 32.5 Income approach Capitalization rate 9.5 to 11.0
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented	The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at year end (dollars in thousands). Level in Fair Value 2016 2015 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 27,690 $ 27,690 $ 29,104 $ 29,104 Cash equivalents Level 2 62,129 62,129 152,372 152,372 Interest-bearing time deposits in other financial institutions Level 2 --- --- 20,000 20,008 Securities held to maturity Level 3 69,378 69,849 51,856 52,837 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,260,414 1,247,842 1,187,423 1,177,527 Bank owned life insurance Level 3 39,274 39,274 28,858 28,858 Accrued interest receivable Level 2 4,092 4,092 3,622 3,622 Financial liabilities Deposits Level 2 (1,448,724 ) (1,448,724 ) (1,435,512 ) (1,435,473 ) Other borrowed funds Level 2 (84,173 ) (84,051 ) (96,169 ) (96,465 ) Long-term debt Level 2 (41,238 ) (36,112 ) (41,238 ) (35,757 ) Accrued interest payable Level 2 (282 ) (282 ) (273 ) (273 ) Off-balance sheet credit-related items Loan commitments --- --- --- ---

PREMISES AND EQUIPMENT - NET (T

PREMISES AND EQUIPMENT - NET (Tables)	12 Months Ended
	Dec. 31, 2016
PREMISES AND EQUIPMENT - NET [Abstract]
Year-End Premises and Equipment	Year-end premises and equipment were as follows (dollars in thousands): 2016 2015 Land $ 18,227 $ 18,227 Building 43,600 43,449 Leasehold improvements 779 779 Furniture and equipment 20,576 19,353 Construction in progress 358 575 83,540 82,383 Less accumulated depreciation (33,514 ) (30,927 ) $ 50,026 $ 51,456
Future Minimum Rental Expense under Noncancelable Operating Leases	Future minimum rental expense under noncancelable operating leases as of December 31, 2016 is as follows (dollars in thousands): 2017 $ 237 2018 234 2019 234 2020 129 2021 --- Thereafter --- $ 834

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2016
DEPOSITS [Abstract]
Deposits at Period-End	Deposits at year-end were as follows (dollars in thousands): 2016 2015 Noninterest-bearing demand $ 501,478 $ 477,032 Interest bearing demand 340,715 358,306 Savings and money market accounts 532,853 512,980 Certificates of deposit 73,678 87,194 $ 1,448,724 $ 1,435,512
Maturity Distribution of Certificates of Deposit	The following table depicts the maturity distribution of certificates of deposit at December 31, 2016 (dollars in thousands): 2017 $ 42,778 2018 17,122 2019 11,254 2020 1,734 2021 790 Thereafter --- $ 73,678

OTHER BORROWED FUNDS (Tables)

OTHER BORROWED FUNDS (Tables)	12 Months Ended
	Dec. 31, 2016
OTHER BORROWED FUNDS [Abstract]
Advances from Federal Home Loan Bank	At year-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2016 Single maturity fixed rate advances $ 80,000 February 2018 to April 2021 1.60 % Amortizable mortgage advances 4,173 March 2018 to July 2018 3.78 % $ 84,173 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2015 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 6,169 March 2018 to July 2018 3.78 % $ 96,169
Scheduled Repayments of FHLB Advances	Scheduled repayments of FHLB advances as of December 31, 2016 were as follows (in thousands): 2017 $ 2,055 2018 52,118 2019 10,000 2020 10,000 2021 10,000 Thereafter --- $ 84,173

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS [Abstract]
Loans to Principal Officers, Directors, and Their Affiliates	Loans to principal officers, directors, and their affiliates were as follows (dollars in thousands). 2016 2015 Beginning balance $ 17,351 $ 10,077 New loans and renewals 13,223 22,550 Repayments and renewals (12,648 ) (15,114 ) Effect of changes in related parties 6,407 (162 ) Ending balance $ 24,333 $ 17,351

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2016
STOCK-BASED COMPENSATION [Abstract]
Summary of Option Activity in the Plans	A summary of option activity in the plans is as follows (dollars in thousands, except per option data): Options Number Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at January 1, 2016 102,299 $ 13.04 --- --- Forfeited (8,000 ) 8.57 --- --- Expired (41,299 ) 19.64 --- --- Outstanding at December 31, 2016 53,000 $ 8.57 1.05 $ 97,520 Exercisable at December 31, 2016 53,000 $ 8.57 1.05 $ 97,520 Information related to stock options during each year follows (dollars in thousands): 2016 2015 2014 Intrinsic value of options exercised $ --- $ --- $ --- Cash received from option exercises --- --- --- Tax benefit realized from option exercises --- --- ---
Changes in Nonvested Stock Awards	A summary of changes in the Company’s nonvested restricted stock awards for the year follows: Nonvested Stock Awards Shares Weighted- Average Grant-Date Fair Value Aggregate Intrinsic Value Outstanding at January 1, 2016 197,846 $ 5.34 $ 1,196,968 Granted 46,025 9.67 479,120 Vested (111,323 ) 5.28 1,158,872 Forfeited --- --- --- Outstanding at December 31, 2016 132,548 $ 6.88 $ 1,379,825

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
EARNINGS PER COMMON SHARE [Abstract]
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Common Share	A reconciliation of the numerators and denominators of basic and diluted earnings per common share are as follows (dollars in thousands, except per share data): 2016 2015 2014 Net income available to common shares $ 15,951 $ 12,794 $ 10,473 Weighted average shares outstanding, including participating stock awards - 33,922,548 33,872,814 33,803,030 Dilutive potential common shares: Stock options --- --- --- Stock warrants --- --- --- Weighted average shares outstanding - 33,922,548 33,872,814 33,803,030 Basic earnings per common share $ 0.47 $ 0.38 $ 0.31 Diluted earnings per common share $ 0.47 $ 0.38 $ 0.31

FEDERAL INCOME TAXES (Tables)

FEDERAL INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
FEDERAL INCOME TAXES [Abstract]
Income Tax Expense	Income tax expense was as follows (dollars in thousands): 2016 2015 2014 Current $ 5,289 $ 2,335 $ 1,724 Deferred 942 3,291 2,849 $ 6,231 $ 5,626 $ 4,573
Difference between Financial Statement Tax Expense (Benefit) and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income	The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): 2016 2015 2014 Statutory rate 35 % 35 % 35 % Statutory rate applied to income before taxes $ 7,764 $ 6,447 $ 5,266 Deduct Tax-exempt interest income (620 ) (529 ) (391 ) Bank-owned life insurance (342 ) (232 ) (237 ) Tax return credits and other adjustments (513 ) --- --- Other, net (58 ) (60 ) (65 ) $ 6,231 $ 5,626 $ 4,573
Deferred Tax Assets and Liabilities	The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): 2016 2015 Deferred tax assets Allowance for loan losses $ 5,937 $ 5,978 Nonaccrual loan interest 718 850 Valuation allowance on other real estate owned 3,714 3,782 Unrealized loss on securities available for sale 799 --- Other 176 647 Gross deferred tax assets 11,344 11,257 Valuation allowance --- --- Total net deferred tax assets 11,344 11,257 Deferred tax liabilities Depreciation (1,705 ) (1,739 ) Prepaid expenses (399 ) (191 ) Unrealized gain on securities available for sale --- (187 ) Other (377 ) (321 ) Gross deferred tax liabilities (2,481 ) (2,438 ) Net deferred tax asset $ 8,863 $ 8,819

COMMITMENTS AND OFF BALANCE-S40

COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
Summary of Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk	A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at year-end (dollars in thousands): 2016 2015 Commitments to make loans $ 90,293 $ 97,991 Letters of credit 13,823 12,976 Unused lines of credit 437,435 426,080

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2016
SHAREHOLDERS' EQUITY [Abstract]
Actual Capital Levels and Minimum Required Levels	Actual capital levels (dollars in thousands) and minimum required levels were as follows at year-end: Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2016 CET1 capital (to risk weighted assets) Consolidated $ 163,663 11.0 % $ 66,743 4.5 % $ 76,013 5.1 % N/A N/A Bank 197,972 13.4 66,737 4.5 76,006 5.1 $ 96,398 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 203,663 13.7 88,991 6.0 98,261 6.6 N/A N/A Bank 197,972 13.4 88,983 6.0 98,252 6.6 118,644 8.0 Total capital (to risk weighted assets) Consolidated 220,625 14.9 118,655 8.0 127,925 8.6 N/A N/A Bank 214,934 14.5 118,644 8.0 127,913 8.6 148,305 10.0 Tier 1 capital (to average assets) Consolidated 203,663 12.0 67,810 4.0 N/A N/A N/A N/A Bank 197,972 11.7 67,742 4.0 N/A N/A 84,677 5.0 December 31, 2015 CET1 capital (to risk weighted assets) Consolidated $ 151,630 10.8 % $ 63,479 4.5 % N/A N/A N/A N/A Bank 186,930 13.2 63,463 4.5 N/A N/A $ 91,668 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 191,630 13.6 84,638 6.0 N/A N/A N/A N/A Bank 186,930 13.2 84,617 6.0 N/A N/A 112,822 8.0 Total capital (to risk weighted assets) Consolidated 208,711 14.8 112,851 8.0 N/A N/A N/A N/A Bank 203,471 14.4 112,822 8.0 N/A N/A 141,028 10.0 Tier 1 capital (to average assets) Consolidated 191,630 11.5 66,400 4.0 N/A N/A N/A N/A Bank 186,930 11.2 66,332 4.0 N/A N/A 82,915 5.0

CONDENSED FINANCIAL STATEMENT42

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) (Tables)	12 Months Ended
	Dec. 31, 2016
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) [Abstract]
Condensed Balance Sheets	CONDENSED BALANCE SHEETS 2016 2015 ASSETS Cash and cash equivalents $ 5,542 $ 4,818 Investment in Bank subsidiary 196,548 186,737 Investment in other subsidiaries 1,471 1,478 Other assets 134 362 Total assets $ 203,695 $ 193,395 LIABILITIES AND SHAREHOLDERS' EQUITY Long-term debt 41,238 41,238 Other liabilities 218 180 Total liabilities 41,456 41,418 Total shareholders' equity 162,239 151,977 Total liabilities and shareholders' equity $ 203,695 $ 193,395
Condensed Statements of Income and Comprehensive Income	CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 2016 2015 2014 INCOME Dividends from subsidiaries $ 6,238 $ 5,160 $ 4,139 Other --- --- --- Total income 6,238 5,160 4,139 EXPENSE Interest expense 1,503 1,331 1,311 Other expense 665 592 611 Total expense 2,168 1,923 1,922 Income before income tax and equity in undistributed earnings of subsidiaries 4,070 3,237 2,217 Equity in undistributed earnings of subsidiaries 11,128 8,893 7,592 Income before income tax 15,198 12,130 9,809 Income tax benefit (753 ) (664 ) (664 ) Net income $ 15,951 $ 12,794 $ 10,473 Comprehensive income $ 14,120 $ 13,080 $ 12,489
Condensed Statements of Cash Flows	CONDENSED STATEMENTS OF CASH FLOWS 2016 2015 2014 Cash flows from operating activities Net income $ 15,951 $ 12,794 $ 10,473 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (11,128 ) (8,893 ) (7,592 ) Stock compensation expense 33 18 2 Change in other assets 148 2,237 673 Change in other liabilities 38 (9 ) (29 ) Net cash from operating activities 5,042 6,147 3,527 Cash flows from investing activities Investment in subsidiaries --- --- --- Net cash from investing activities --- --- --- Cash flows from financing activities Proceeds from issuance of common stock --- --- 4 Cash dividends paid (4,049 ) (3,702 ) (2,689 ) Common stock issuance costs --- --- (102 ) Repurchases of shares (269 ) (171 ) (106 ) Net cash from financing activities (4,318 ) (3,873 ) (2,893 ) Net change in cash and cash equivalents 724 2,274 634 Cash and cash equivalents at beginning of year 4,818 2,544 1,910 Cash and cash equivalents at end of year $ 5,542 $ 4,818 $ 2,544

QUARTERLY FINANCIAL DATA (Una43

QUARTERLY FINANCIAL DATA (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
Quarterly Financial Data	(Dollars in thousands except per share data) Earnings Per Common Share Interest Income Net Interest Income Provision for Loan Losses Net Income Basic Diluted 2016 First quarter $ 13,008 $ 11,738 $ (100 ) $ 3,495 $ 0.10 $ 0.10 Second quarter 12,873 11,608 (750 ) 3,745 0.11 0.11 Third quarter 13,122 11,902 (250 ) 4,603 0.14 0.14 Fourth quarter 13,496 12,292 (250 ) 4,108 0.12 0.12 2015 First quarter $ 12,011 $ 10,652 $ (1,000 ) $ 2,840 $ 0.08 $ 0.08 Second quarter 12,238 10,845 (500 ) 3,215 0.09 0.09 Third quarter 12,427 11,121 (250 ) 3,201 0.09 0.09 Fourth quarter 12,709 11,461 (1,750 ) 3,538 0.10 0.10

SUMMARY OF SIGNIFICANT ACCOUN44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2016USD ($)BranchLoanInterestRateSwapSegment	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Number of full service branch offices | Branch	26
Securities [Abstract]
OTTI charges	$ 0	$ 0	$ 0
Federal Home Loan Bank (FHLB) Stock [Abstract]
FHLB stock impaired	0	0	$ 0
Loans Held-for-sale [Abstract]
Net unrealized gain on loans held for sale	$ 28,000	65,000
Loans [Abstract]
Period after which interest income on delinquent loans is discontinued	90 days
Past due period after which loans are charged off	120 days
Goodwill and Acquired Intangible Assets [Abstract]
Goodwill	$ 0	0
Finite-Lived Intangible Assets [Line Items]
Acquired intangible	0	0
Mortgage Banking Derivatives [Abstract]
Net fair value of mortgage banking derivatives	51,000	38,000
Restrictions on Cash [Abstract]
Cash on hand or on deposit with the Federal Reserve Bank	$ 5,610,000	5,181,000
Stock Splits and Dividends [Abstract]
Stock dividends, excess of threshold	20.00%
Stock dividend threshold or less	20.00%
Segment Reporting [Abstract]
Number of operating segments | Segment	1
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of intangible assets	10 years
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of intangible assets	16 years
Residential Mortgage [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	12 months
Building and Related Components [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	5 years
Building and Related Components [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	40 years
Furniture Fixture and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	3 years
Furniture Fixture and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful lives	15 years
Commercial [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	18 months
Threshold balance of loans evaluated for impairment	$ 500,000
Commercial [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment | Loan	6
Commercial Real Estate [Member]
Allowance for Loan Losses [Abstract]
Threshold balance of loans evaluated for impairment	$ 500,000
Commercial Real Estate [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment | Loan	6
Consumer [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans	12 months
Swap [Member] | Interest Rate Swap [Member]
Derivatives [Abstract]
Number of freestanding interest rate swaps | InterestRateSwap	2
Notional amount of agreements	$ 48,100,000	43,900,000
Derivative asset fair value	494,000	790,000
Trading liability fair value	$ 494,000	$ 790,000
Commercial Real Estate [Member]
Concentration Risk [Line Items]
Concentration of credit risk	40.00%
Commercial [Member]
Concentration Risk [Line Items]
Concentration of credit risk	35.00%
Residential Real Estate and Consumer Loans [Member]
Concentration Risk [Line Items]
Concentration of credit risk	25.00%

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Available for Sale [Abstract]
Amortized cost	$ 186,717	$ 166,281
Gross unrealized gains	353	1,040
Gross unrealized losses	(2,637)	(506)
Fair value	184,433	166,815
Proceeds from sale of available-for-sale securities	11,729	20,625	$ 10,936
Gain on sales of securities	124	129	75
Reclassifications of net gains (net of tax)	80	84	$ 49
Held to Maturity [Abstract]
Amortized cost	69,378	51,856
Fair value	69,849	52,837
U.S. Treasury and Federal Agency Securities [Member]
Available for Sale [Abstract]
Amortized cost	85,582	74,618
Gross unrealized gains	49	48
Gross unrealized losses	(1,281)	(274)
Fair value	84,350	74,392
U.S. Agency MBS and CMOs [Member]
Available for Sale [Abstract]
Amortized cost	12,037	13,828
Gross unrealized gains	11	35
Gross unrealized losses	(231)	(108)
Fair value	11,817	13,755
Tax-Exempt State and Municipal Bonds [Member]
Available for Sale [Abstract]
Amortized cost	39,578	32,943
Gross unrealized gains	212	692
Gross unrealized losses	(603)	(37)
Fair value	39,187	33,598
Taxable State and Municipal Bonds [Member]
Available for Sale [Abstract]
Amortized cost	34,255	28,554
Gross unrealized gains	65	246
Gross unrealized losses	(437)	(37)
Fair value	33,883	28,763
Corporate Bonds and Other Debt Securities [Member]
Available for Sale [Abstract]
Amortized cost	13,765	14,838
Gross unrealized gains	16	19
Gross unrealized losses	(55)	(44)
Fair value	13,726	14,813
Other Equity Securities [Member]
Available for Sale [Abstract]
Amortized cost	1,500	1,500
Gross unrealized gains	0	0
Gross unrealized losses	(30)	(6)
Fair value	1,470	1,494
Tax-Exempt State and Municipal Bonds [Member]
Held to Maturity [Abstract]
Amortized cost	69,378	51,856
Gross unrealized gains	573	986
Gross unrealized losses	(102)	(5)
Fair value	$ 69,849	$ 52,837

SECURITIES, Contractual Maturit

SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Held-to-Maturity Securities, Amortized Cost [Abstract]
Due in one year or less	$ 25,203
Due from one to five years	14,801
Due from five to ten years	8,279
Due after ten years	21,095
Amortized cost	69,378	$ 51,856
Held-to-Maturity Securities, Fair Value [Abstract]
Due in one year or less	25,156
Due from one to five years	15,069
Due from five to ten years	8,443
Due after ten years	21,181
Fair value	69,849	$ 52,837
Available-for-Sale Securities, Amortized Cost [Abstract]
Due in one year or less	17,192
Due from one to five years	94,916
Due from five to ten years	57,224
Due after ten years	15,885
Amortized cost	185,217
Available-for-Sale Securities, Fair Value [Abstract]
Due in one year or less	17,228
Due from one to five years	94,067
Due from five to ten years	56,200
Due after ten years	15,468
Fair value	$ 182,963

SECURITIES, Continuous Unrealiz

SECURITIES, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	$ 149,187	$ 66,401
12 months or more, fair value	5,225	10,197
Total, fair value	154,412	76,598
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(2,717)	(386)
12 months or more, unrealized loss	(22)	(125)
Total, unrealized loss	(2,739)	(511)
U.S. Treasury and Federal Agency Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	59,129	35,090
12 months or more, fair value	3,053	7,036
Total, fair value	62,182	42,126
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(1,271)	(187)
12 months or more, unrealized loss	(10)	(82)
Total, unrealized loss	(1,281)	(269)
U.S. Agency MBS and CMOs [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	10,702	8,842
12 months or more, fair value	0	0
Total, fair value	10,702	8,842
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(231)	(108)
12 months or more, unrealized loss	0	0
Total, unrealized loss	(231)	(108)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	49,508	3,487
12 months or more, fair value	1,672	2,022
Total, fair value	51,180	5,509
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(698)	(9)
12 months or more, unrealized loss	(7)	(33)
Total, unrealized loss	(705)	(42)
Taxable State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	22,633	8,158
12 months or more, fair value	0	640
Total, fair value	22,633	8,798
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(437)	(29)
12 months or more, unrealized loss	0	(8)
Total, unrealized loss	(437)	(37)
Corporate Bonds and Other Debt Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	5,745	9,330
12 months or more, fair value	500	499
Total, fair value	6,245	9,829
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(50)	(47)
12 months or more, unrealized loss	(5)	(2)
Total, unrealized loss	(55)	(49)
Other Equity Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months, fair value	1,470	1,494
12 months or more, fair value	0	0
Total, fair value	1,470	1,494
Securities in continuous unrealized loss position, aggregate losses [Abstract]
Less than 12 months, unrealized loss	(30)	(6)
12 months or more, unrealized loss	0	0
Total, unrealized loss	$ (30)	$ (6)

SECURITIES, Other-Than-Temporar

SECURITIES, Other-Than-Temporary-Impairment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
SECURITIES [Abstract]
OTTI charges	$ 0	$ 0	$ 0
Securities pledged as security for public deposits, letters of credit and for other purposes required or permitted by law	$ 2,000,000	$ 2,000,000

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Portfolio loans [Abstract]
Total loans	$ 1,280,812	$ 1,197,932
Allowance for loan losses	(16,962)	(17,081)	$ (18,962)	$ (20,798)
Net loans	1,263,850	1,180,851
Commercial and Industrial [Member]
Portfolio loans [Abstract]
Total loans	449,342	377,298
Allowance for loan losses	(6,345)	(4,826)	(6,173)	(6,174)
Commercial Real Estate [Member]
Portfolio loans [Abstract]
Total loans	517,981	508,672
Allowance for loan losses	(6,703)	(8,457)	(8,690)	(10,868)
Commercial Real Estate [Member] | Residential Developed [Member]
Portfolio loans [Abstract]
Total loans	11,970	10,448
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
Portfolio loans [Abstract]
Total loans	4,734	7,372
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Portfolio loans [Abstract]
Total loans	40,286	42,881
Commercial Real Estate [Member] | Commercial Development [Member]
Portfolio loans [Abstract]
Total loans	378	559
Commercial Real Estate [Member] | Residential Improved [Member]
Portfolio loans [Abstract]
Total loans	75,348	67,922
Commercial Real Estate [Member] | Commercial Improved [Member]
Portfolio loans [Abstract]
Total loans	289,478	289,651
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Portfolio loans [Abstract]
Total loans	95,787	89,839
Consumer [Member]
Portfolio loans [Abstract]
Total loans	313,489	311,962
Allowance for loan losses	(3,871)	(3,761)	$ (4,046)	$ (3,703)
Consumer [Member] | Residential Mortgage [Member]
Portfolio loans [Abstract]
Total loans	217,614	209,972
Consumer [Member] | Unsecured [Member]
Portfolio loans [Abstract]
Total loans	396	637
Consumer [Member] | Home Equity [Member]
Portfolio loans [Abstract]
Total loans	88,113	92,716
Consumer [Member] | Other Secured [Member]
Portfolio loans [Abstract]
Total loans	$ 7,366	$ 8,637

LOANS, Allowance for Loans Loss

LOANS, Allowance for Loans Losses by Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				$ 17,081				$ 18,962	$ 17,081	$ 18,962	$ 20,798
Charge-offs									(205)	(702)	(676)
Recoveries									1,436	2,321	2,190
Provision for loan losses	$ (250)	$ (250)	$ (750)	(100)	$ (1,750)	$ (250)	$ (500)	(1,000)	(1,350)	(3,500)	(3,350)
Ending balance	16,962				17,081				16,962	17,081	18,962
Commercial and Industrial [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				4,826				6,173	4,826	6,173	6,174
Charge-offs									0	(172)	(43)
Recoveries									162	406	522
Provision for loan losses									1,357	(1,581)	(480)
Ending balance	6,345				4,826				6,345	4,826	6,173
Commercial Real Estate [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				8,457				8,690	8,457	8,690	10,868
Charge-offs									0	(218)	(134)
Recoveries									1,090	1,264	1,481
Provision for loan losses									(2,844)	(1,279)	(3,525)
Ending balance	6,703				8,457				6,703	8,457	8,690
Consumer [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				3,761				4,046	3,761	4,046	3,703
Charge-offs									(205)	(312)	(499)
Recoveries									184	651	187
Provision for loan losses									131	(624)	655
Ending balance	3,871				3,761				3,871	3,761	4,046
Unallocated [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				$ 37				$ 53	37	53	53
Charge-offs									0	0	0
Recoveries									0	0	0
Provision for loan losses									6	(16)	0
Ending balance	$ 43				$ 37				$ 43	$ 37	$ 53

LOANS, Allowance for Loan Losse

LOANS, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	$ 1,696	$ 1,938
Collectively evaluated for impairment	15,266	15,143
Total ending allowance balance	16,962	17,081	$ 18,962	$ 20,798
Loans [Abstract]
Individually reviewed for impairment	29,654	38,750
Collectively evaluated for impairment	1,251,158	1,159,182
Total ending loans balance	1,280,812	1,197,932
Commercial and Industrial [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	605	673
Collectively evaluated for impairment	5,740	4,153
Total ending allowance balance	6,345	4,826	6,173	6,174
Loans [Abstract]
Individually reviewed for impairment	5,994	7,718
Collectively evaluated for impairment	443,348	369,580
Total ending loans balance	449,342	377,298
Commercial Real Estate [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	368	436
Collectively evaluated for impairment	6,335	8,021
Total ending allowance balance	6,703	8,457	8,690	10,868
Loans [Abstract]
Individually reviewed for impairment	11,934	17,569
Collectively evaluated for impairment	506,047	491,103
Total ending loans balance	517,981	508,672
Consumer [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	723	829
Collectively evaluated for impairment	3,148	2,932
Total ending allowance balance	3,871	3,761	4,046	3,703
Loans [Abstract]
Individually reviewed for impairment	11,726	13,463
Collectively evaluated for impairment	301,763	298,499
Total ending loans balance	313,489	311,962
Unallocated [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	0	0
Collectively evaluated for impairment	43	37
Total ending allowance balance	43	37	$ 53	$ 53
Loans [Abstract]
Individually reviewed for impairment	0	0
Collectively evaluated for impairment	0	0
Total ending loans balance	$ 0	$ 0

LOANS, Impaired Loans (Details)

LOANS, Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
With no related allowance recorded [Abstract]
Unpaid principal balance	$ 2,675	$ 2,947
Recorded investment	2,675	2,947
With related allowance recorded [Abstract]
Unpaid principal balance	26,979	35,803
Recorded investment	26,979	35,803
Allowance allocated	1,696	1,938
Total [Abstract]
Unpaid principal balance	29,654	38,750
Recorded investment	29,654	38,750
Allowance allocated	1,696	1,938
Commercial and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	2,298	2,736
Recorded investment	2,298	2,736
With related allowance recorded [Abstract]
Unpaid principal balance	3,696	4,982
Recorded investment	3,696	4,982
Allowance allocated	605	673
Total [Abstract]
Allowance allocated	605	673
Impaired loans [Abstract]
Average of impaired loans	6,468	7,296	$ 11,818
Interest income recognized during impairment	993	1,110	1,108
Cash-basis interest income recognized	992	1,066	1,107
Commercial Real Estate [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	377	211
Recorded investment	377	211
With related allowance recorded [Abstract]
Unpaid principal balance	11,557	17,358
Recorded investment	11,557	17,358
Allowance allocated	368	436
Total [Abstract]
Allowance allocated	368	436
Impaired loans [Abstract]
Interest income recognized during impairment	643	967	1,527
Cash-basis interest income recognized	647	970	1,547
Commercial Real Estate [Member] | Residential Developed [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	187	0
Recorded investment	187	0
Allowance allocated	4	0
Total [Abstract]
Allowance allocated	4	0
Impaired loans [Abstract]
Average of impaired loans	78	577	3,628
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
Allowance allocated	0	0
Total [Abstract]
Allowance allocated	0	0
Impaired loans [Abstract]
Average of impaired loans	0	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	206
Recorded investment	0	206
With related allowance recorded [Abstract]
Unpaid principal balance	387	247
Recorded investment	387	247
Allowance allocated	9	7
Total [Abstract]
Allowance allocated	9	7
Impaired loans [Abstract]
Average of impaired loans	422	1,231	1,646
Commercial Real Estate [Member] | Commercial Development [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	189	192
Recorded investment	189	192
Allowance allocated	6	6
Total [Abstract]
Allowance allocated	6	6
Impaired loans [Abstract]
Average of impaired loans	191	195	451
Commercial Real Estate [Member] | Residential Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	27	5
Recorded investment	27	5
With related allowance recorded [Abstract]
Unpaid principal balance	4,687	5,254
Recorded investment	4,687	5,254
Allowance allocated	216	140
Total [Abstract]
Allowance allocated	216	140
Impaired loans [Abstract]
Average of impaired loans	5,273	6,425	9,309
Commercial Real Estate [Member] | Commercial Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	350	0
Recorded investment	350	0
With related allowance recorded [Abstract]
Unpaid principal balance	5,879	11,425
Recorded investment	5,879	11,425
Allowance allocated	128	274
Total [Abstract]
Allowance allocated	128	274
Impaired loans [Abstract]
Average of impaired loans	7,332	15,106	17,853
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	228	240
Recorded investment	228	240
Allowance allocated	5	9
Total [Abstract]
Allowance allocated	5	9
Impaired loans [Abstract]
Average of impaired loans	235	1,944	5,630
Consumer [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	11,726	13,463
Recorded investment	11,726	13,463
Allowance allocated	723	829
Total [Abstract]
Allowance allocated	723	829
Impaired loans [Abstract]
Average of impaired loans	12,602	14,259	14,476
Interest income recognized during impairment	444	497	541
Cash-basis interest income recognized	443	502	$ 541
Consumer [Member] | Residential Mortgage [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	7,523	8,655
Recorded investment	7,523	8,655
Allowance allocated	464	533
Total [Abstract]
Allowance allocated	464	533
Consumer [Member] | Unsecured [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
Allowance allocated	0	0
Total [Abstract]
Allowance allocated	0	0
Consumer [Member] | Home Equity [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	4,203	4,808
Recorded investment	4,203	4,808
Allowance allocated	259	296
Total [Abstract]
Allowance allocated	259	296
Consumer [Member] | Other Secured [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
Allowance allocated	0	0
Total [Abstract]
Allowance allocated	$ 0	$ 0

LOANS, Past Due Loans (Details)

LOANS, Past Due Loans (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2014USD ($)	Dec. 31, 2016USD ($)Payment	Dec. 31, 2015USD ($)
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		$ 300,000	$ 739,000
Over 90 days accruing		0	17,000
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		1,447,000	1,371,000
Loans not past due		1,279,365,000	1,196,561,000
Total ending loans balance		1,280,812,000	1,197,932,000
Specific reserves allocated to customers with modified term loans in troubled debt restructurings		$ 1,696,000	1,938,000
Number of consecutive payment before nonaccrual restructured loan is upgraded | Payment		6
Reduction in loans designated as TDR and impaired	$ 5,900,000
Number of months of performance before a loan is removed from TDR		6 months
30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		$ 1,309,000	1,199,000
Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		138,000	172,000
Commercial and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		36,000	174,000
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		453,000	819,000
Loans not past due		448,889,000	376,479,000
Total ending loans balance		449,342,000	377,298,000
Commercial and Industrial [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		425,000	719,000
Commercial and Industrial [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		28,000	100,000
Commercial Real Estate [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		183,000	525,000
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		606,000	503,000
Loans not past due		517,375,000	508,169,000
Total ending loans balance		517,981,000	508,672,000
Commercial Real Estate [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		552,000	448,000
Commercial Real Estate [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		54,000	55,000
Commercial Real Estate [Member] | Residential Developed [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		0	195,000
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Loans not past due		11,970,000	10,448,000
Total ending loans balance		11,970,000	10,448,000
Commercial Real Estate [Member] | Residential Developed [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		0	0
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Loans not past due		4,734,000	7,372,000
Total ending loans balance		4,734,000	7,372,000
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		0	0
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Loans not past due		40,286,000	42,881,000
Total ending loans balance		40,286,000	42,881,000
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Commercial Development [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		49,000	49,000
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		49,000	49,000
Loans not past due		329,000	510,000
Total ending loans balance		378,000	559,000
Commercial Real Estate [Member] | Commercial Development [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		49,000	49,000
Commercial Real Estate [Member] | Residential Improved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		6,000	124,000
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		79,000	79,000
Loans not past due		75,269,000	67,843,000
Total ending loans balance		75,348,000	67,922,000
Commercial Real Estate [Member] | Residential Improved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		74,000	73,000
Commercial Real Estate [Member] | Residential Improved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		5,000	6,000
Commercial Real Estate [Member] | Commercial Improved [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		128,000	157,000
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		478,000	375,000
Loans not past due		289,000,000	289,276,000
Total ending loans balance		289,478,000	289,651,000
Commercial Real Estate [Member] | Commercial Improved [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		478,000	375,000
Commercial Real Estate [Member] | Commercial Improved [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		0	0
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Loans not past due		95,787,000	89,839,000
Total ending loans balance		95,787,000	89,839,000
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Consumer [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		81,000	40,000
Over 90 days accruing		0	17,000
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		388,000	49,000
Loans not past due		313,101,000	311,913,000
Total ending loans balance		313,489,000	311,962,000
Consumer [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		332,000	32,000
Consumer [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		56,000	17,000
Consumer [Member] | Residential Mortgage [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		58,000	2,000
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		120,000	0
Loans not past due		217,494,000	209,972,000
Total ending loans balance		217,614,000	209,972,000
Consumer [Member] | Residential Mortgage [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		64,000	0
Consumer [Member] | Residential Mortgage [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		56,000	0
Consumer [Member] | Unsecured [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		16,000	28,000
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Loans not past due		396,000	637,000
Total ending loans balance		396,000	637,000
Consumer [Member] | Unsecured [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Consumer [Member] | Unsecured [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	0
Consumer [Member] | Home Equity [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		7,000	10,000
Over 90 days accruing		0	17,000
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		187,000	49,000
Loans not past due		87,926,000	92,667,000
Total ending loans balance		88,113,000	92,716,000
Consumer [Member] | Home Equity [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		187,000	32,000
Consumer [Member] | Home Equity [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		0	17,000
Consumer [Member] | Other Secured [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual		0	0
Over 90 days accruing		0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		81,000	0
Loans not past due		7,285,000	8,637,000
Total ending loans balance		7,366,000	8,637,000
Consumer [Member] | Other Secured [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		81,000	0
Consumer [Member] | Other Secured [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due		$ 0	$ 0

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)LoanNote	Dec. 31, 2015USD ($)Loan	Dec. 31, 2014USD ($)Loan
Troubled debt restructurings [Abstract]
Number of Loans | Loan	190	213
Outstanding Recorded Balance	$ 29,986	$ 39,052
Accruing troubled debt restructurings [Abstract]
Accruing TDR - nonaccrual at restructuring	0	0	$ 0
Accruing TDR - accruing at restructuring	25,665	33,691	46,197
Accruing TDR - upgraded to accruing after six consecutive payments	4,172	4,784	0
Total	$ 29,837	$ 38,475	$ 46,197
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan	8	43	51
Pre-TDR balance	$ 345	$ 2,046	$ 5,828
Writedown upon TDR	$ 0	$ 0	$ 0
Commercial Loans [Member] | A-B Note Structure [Member]
Financing Receivable, Modifications [Line Items]
Number of notes into which original note is separated in modification | Note	2
Commercial and Industrial [Member]
Troubled debt restructurings [Abstract]
Number of Loans | Loan	25	33
Outstanding Recorded Balance	$ 5,994	$ 7,611
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan	0	6	1
Pre-TDR balance	$ 0	$ 745	$ 61
Writedown upon TDR	$ 0	$ 0	$ 0
Commercial Real Estate [Member]
Troubled debt restructurings [Abstract]
Number of Loans | Loan	49	56
Outstanding Recorded Balance	$ 11,933	$ 17,871
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan	1	3	11
Pre-TDR balance	$ 56	$ 301	$ 4,345
Writedown upon TDR	$ 0	$ 0	$ 0
Consumer [Member]
Troubled debt restructurings [Abstract]
Number of Loans | Loan	116	124
Outstanding Recorded Balance	$ 12,059	$ 13,570
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan	7	34	39
Pre-TDR balance	$ 289	$ 1,000	$ 1,422
Writedown upon TDR	$ 0	$ 0	$ 0

LOANS, Credit Quality Indicator

LOANS, Credit Quality Indicators (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Grade	Dec. 31, 2015USD ($)
Risk grade category of commercial loans by class of loans [Abstract]
Number point grading system used for loan quality | Grade	8
Total loans	$ 1,280,812	$ 1,197,932
Commercial Loans [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 967,323	885,970
Internal risk grade category of loans considered substandard, doubtful or loss | Grade	6
Commercial Loans [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 0	196
Commercial Loans [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	31,717	13,346
Commercial Loans [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	250,321	236,968
Commercial Loans [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	641,339	588,248
Commercial Loans [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	33,840	36,444
Commercial Loans [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	9,887	10,069
Commercial Loans [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	219	699
Commercial Loans [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial and Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	449,342	377,298
Commercial and Industrial [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	196
Commercial and Industrial [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	27,619	8,774
Commercial and Industrial [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	118,243	114,451
Commercial and Industrial [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	282,527	242,253
Commercial and Industrial [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	14,610	5,235
Commercial and Industrial [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	6,307	6,215
Commercial and Industrial [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	36	174
Commercial and Industrial [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	517,981	508,672
Commercial Real Estate [Member] | Residential Developed [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	11,970	10,448
Commercial Real Estate [Member] | Residential Developed [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,328	2,226
Commercial Real Estate [Member] | Residential Developed [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	8,786	5,191
Commercial Real Estate [Member] | Residential Developed [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	856	2,836
Commercial Real Estate [Member] | Residential Developed [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Developed [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	195
Commercial Real Estate [Member] | Residential Developed [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	4,734	7,372
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	4,734	7,372
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	40,286	42,881
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	17,672	17,768
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	19,028	20,588
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	3,586	4,525
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	378	559
Commercial Real Estate [Member] | Commercial Development [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	140	318
Commercial Real Estate [Member] | Commercial Development [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	189	192
Commercial Real Estate [Member] | Commercial Development [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	49	49
Commercial Real Estate [Member] | Commercial Development [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	75,348	67,922
Commercial Real Estate [Member] | Residential Improved [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Residential Improved [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	7,100	7,191
Commercial Real Estate [Member] | Residential Improved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	63,957	54,376
Commercial Real Estate [Member] | Residential Improved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,628	4,722
Commercial Real Estate [Member] | Residential Improved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,657	1,509
Commercial Real Estate [Member] | Residential Improved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	6	124
Commercial Real Estate [Member] | Residential Improved [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Improved [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	289,478	289,651
Commercial Real Estate [Member] | Commercial Improved [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Commercial Improved [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,433	3,094
Commercial Real Estate [Member] | Commercial Improved [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	66,259	60,475
Commercial Real Estate [Member] | Commercial Improved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	210,449	208,127
Commercial Real Estate [Member] | Commercial Improved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	9,084	15,645
Commercial Real Estate [Member] | Commercial Improved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,125	2,153
Commercial Real Estate [Member] | Commercial Improved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	128	157
Commercial Real Estate [Member] | Commercial Improved [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	95,787	89,839
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,665	1,478
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	38,719	34,857
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	51,718	50,023
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	3,076	3,481
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	609	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 0	$ 0

LOANS, Commercial Loans Classif

LOANS, Commercial Loans Classified as Substandard or Worse (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Classified as impaired	$ 29,654	$ 38,750
Total ending loans balance	1,280,812	1,197,932
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total ending loans balance	967,323	885,970
Commercial Loans [Member] | Substandard or Worse [Member]
Financing Receivable, Recorded Investment [Line Items]
Not classified as impaired	2,608	1,986
Classified as impaired	7,498	8,782
Total ending loans balance	$ 10,106	$ 10,768

LOANS, Recorded Investment in C

LOANS, Recorded Investment in Consumer Loans Based on Payment Activity (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1,280,812	$ 1,197,932
Consumer Loan [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	217,614	209,972
Consumer Loan [Member] | Residential Mortgage [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	217,558	209,972
Consumer Loan [Member] | Residential Mortgage [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	56	0
Consumer Loan [Member] | Consumer Unsecured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	396	637
Consumer Loan [Member] | Consumer Unsecured [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	396	637
Consumer Loan [Member] | Consumer Unsecured [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Consumer Loan [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	88,113	92,716
Consumer Loan [Member] | Home Equity [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	88,113	92,699
Consumer Loan [Member] | Home Equity [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	17
Consumer Loan [Member] | Consumer Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,366	8,637
Consumer Loan [Member] | Consumer Other [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,366	8,637
Consumer Loan [Member] | Consumer Other [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 0	$ 0

OTHER REAL ESTATE OWNED (Detail

OTHER REAL ESTATE OWNED (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other real estate owned [Roll Forward]
Beginning balance	$ 28,377,000	$ 43,071,000	$ 53,501,000
Additions, transfers from loans	339,000	2,520,000	4,932,000
Proceeds from sales of other real estate owned	(5,339,000)	(11,540,000)	(12,487,000)
Valuation allowance reversal upon sale	(1,158,000)	(4,748,000)	(3,499,000)
Gain (loss) on sales of other real estate owned	645,000	(926,000)	624,000
Ending balance	22,864,000	28,377,000	43,071,000
Less: valuation allowance	(10,611,000)	(10,805,000)	(14,829,000)
Ending balance	12,253,000	17,572,000	28,242,000
Activity in valuation allowance [Roll Forward]
Foreclosed residential real estate properties included in other real estate owned	136,000
Consumer mortgage loans in process of foreclosure	238,000
Valuation Allowance, Real Estate Owned [Member]
Activity in valuation allowance [Roll Forward]
Beginning balance	10,805,000	14,829,000	16,705,000
Additions charged to expense	964,000	724,000	1,623,000
Reversals upon sale	(1,158,000)	(4,748,000)	(3,499,000)
Ending balance	$ 10,611,000	$ 10,805,000	$ 14,829,000

FAIR VALUE, Assets Measured at

FAIR VALUE, Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	$ 184,433	$ 166,815
U.S. Treasury and Federal Agency Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	84,350	74,392
U.S. Agency MBS and CMOs [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,817	13,755
Tax-Exempt State and Municipal Bonds [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	39,187	33,598
Taxable State and Municipal Bonds [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	33,883	28,763
Corporate Bonds and Other Debt Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	13,726	14,813
Other Equity Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,470	1,494
Recurring Basis [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	2,181	2,776
Interest rate swaps	494	790
Interest rate swaps	(494)	(790)
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	0	0
Interest rate swaps	0	0
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	2,181	2,776
Interest rate swaps	0	0
Interest rate swaps	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	494	790
Interest rate swaps	(494)	(790)
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	84,350	74,392
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	84,350	74,392
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,817	13,755
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,817	13,755
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	39,187	33,598
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	39,187	33,598
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	33,883	28,763
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	33,883	28,763
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	13,726	14,813
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	13,726	14,813
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Other Equity Securities [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,470	1,494
Recurring Basis [Member] | Other Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Other Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,470	1,494
Recurring Basis [Member] | Other Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset and liabilities measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Nonrecurring Basis [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	3,436	6,573
Other real estate owned	9,542	13,602
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	0	0
Other real estate owned	0	0
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	0	0
Other real estate owned	0	0
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on non-recurring basis [Abstract]
Impaired loans	3,436	6,573
Other real estate owned	$ 9,542	$ 13,602

FAIR VALUE, Quantitative Inform

FAIR VALUE, Quantitative Information about Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Impaired Loans [Member] | Sales Comparison Approach [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset fair value	$ 3,436	$ 6,573
Impaired Loans [Member] | Sales Comparison Approach [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	1.00%	1.00%
Impaired Loans [Member] | Sales Comparison Approach [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	35.00%	19.00%
Impaired Loans [Member] | Income Approach [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Capitalization rate	9.50%	9.50%
Impaired Loans [Member] | Income Approach [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Capitalization rate	11.50%	11.00%
Other Real Estate Owned [Member] | Sales Comparison Approach [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset fair value	$ 9,542	$ 13,602
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	2.00%	4.50%
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Adjustment for differences between comparable sales	32.50%	32.50%
Other Real Estate Owned [Member] | Income Approach [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Capitalization rate	9.50%	9.50%
Other Real Estate Owned [Member] | Income Approach [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Capitalization rate	11.50%	11.00%

FAIR VALUE, Carrying Amounts an

FAIR VALUE, Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financial assets [Abstract]
Cash and due from banks	$ 27,690	$ 29,104
Securities held to maturity	69,849	52,837
Bank-owned life insurance	39,274	28,858
Carrying Amount [Member]
Financial assets [Abstract]
FHLB stock	11,558	11,558
Loan Commitments [Member] | Carrying Amount [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit-related items	0	0
Loan Commitments [Member] | Fair Value [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit-related items	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash and due from banks	27,690	29,104
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	27,690	29,104
Significant Other Observable Inputs (Level 2) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash equivalents	62,129	152,372
Interest-bearing time deposits in other financial institutions	0	20,000
Loans, net	1,260,414	1,187,423
Accrued interest receivable	4,092	3,622
Financial liabilities [Abstract]
Deposits	(1,448,724)	(1,435,512)
Other borrowed funds	(84,173)	(96,169)
Long-term debt	(41,238)	(41,238)
Accrued interest payable	(282)	(273)
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash equivalents	62,129	152,372
Interest-bearing time deposits in other financial institutions	0	20,008
Loans, net	1,247,842	1,177,527
Accrued interest receivable	4,092	3,622
Financial liabilities [Abstract]
Deposits	(1,448,724)	(1,435,473)
Other borrowed funds	(84,051)	(96,465)
Long-term debt	(36,112)	(35,757)
Accrued interest payable	(282)	(273)
Significant Unobservable Inputs (Level 3) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Securities held to maturity	69,378	51,856
Bank-owned life insurance	39,274	28,858
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member]
Financial assets [Abstract]
Securities held to maturity	69,849	52,837
Bank-owned life insurance	$ 39,274	$ 28,858

PREMISES AND EQUIPMENT - NET (D

PREMISES AND EQUIPMENT - NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Year-end premises and equipment [Abstract]
Premises and equipment, gross	$ 83,540,000	$ 82,383,000
Less accumulated depreciation	(33,514,000)	(30,927,000)
Premises and equipment, net	50,026,000	51,456,000
Depreciation expense	2,618,000	2,608,000	$ 2,513,000
Total rental expense for all operating leases	398,000	417,000	$ 436,000
Future minimum rental expense under noncancelable operating leases [Abstract]
2,017	237,000
2,018	234,000
2,019	234,000
2,020	129,000
2,021	0
Thereafter	0
Total future payments	834,000
Land [Member]
Year-end premises and equipment [Abstract]
Premises and equipment, gross	18,227,000	18,227,000
Building [Member]
Year-end premises and equipment [Abstract]
Premises and equipment, gross	43,600,000	43,449,000
Leasehold Improvements [Member]
Year-end premises and equipment [Abstract]
Premises and equipment, gross	779,000	779,000
Furniture and Equipment [Member]
Year-end premises and equipment [Abstract]
Premises and equipment, gross	20,576,000	19,353,000
Construction in Progress [Member]
Year-end premises and equipment [Abstract]
Premises and equipment, gross	$ 358,000	$ 575,000

DEPOSITS (Details)

DEPOSITS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Summary of deposit [Abstract]
Noninterest-bearing demand	$ 501,478,000	$ 477,032,000
Interest bearing demand	340,715,000	358,306,000
Savings and money market accounts	532,853,000	512,980,000
Certificates of deposit	73,678,000	87,194,000
Total deposits	1,448,724,000	1,435,512,000
Maturities distribution of time deposits [Abstract]
2,017	42,778,000
2,018	17,122,000
2,019	11,254,000
2,020	1,734,000
2,021	790,000
Thereafter	0
Total certificate of deposit	73,678,000
Time deposits that exceed FDIC insurance limit	17,400,000	17,100,000
FDIC insurance limit on deposit accounts	$ 250,000	$ 250,000

OTHER BORROWED FUNDS, Federal H

OTHER BORROWED FUNDS, Federal Home Loan Bank Advances (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 84,173,000	$ 96,169,000
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances	424,951,000	440,660,000
Federal Home Loan Bank Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	84,173,000	96,169,000
Federal Home Loan Bank Advances [Member] | Single Maturity Fixed Rate Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 80,000,000	$ 90,000,000
Range of maturities, earliest	2,018	2,016
Range of maturities, last	2,021	2,020
Federal Home Loan Bank Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	1.60%	1.69%
Federal Home Loan Bank Advances [Member] | Amortizable Mortgage Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 4,173,000	$ 6,169,000
Range of maturities, earliest	2,018	2,018
Range of maturities, last	2,018	2,018
Federal Home Loan Bank Advances [Member] | Amortizable Mortgage Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	3.78%	3.78%

OTHER BORROWED FUNDS, Scheduled

OTHER BORROWED FUNDS, Scheduled Repayments of FHLB Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Scheduled repayments of FHLB advances [Abstract]
2,017	$ 2,055
2,018	52,118
2,019	10,000
2,020	10,000
2,021	10,000
Thereafter	0
Total	$ 84,173	$ 96,169

OTHER BORROWED FUNDS, Federal R

OTHER BORROWED FUNDS, Federal Reserve Bank Borrowings (Details) - Federal Reserve Bank Borrowings [Member] - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Borrowings outstanding	$ 0	$ 0
Unused borrowing capacity	18.1	18.5
Commercial and mortgage loans pledged to the Federal Reserve Bank	$ 20.7	$ 21.6

LONG TERM DEBT (Details)

LONG TERM DEBT (Details)	12 Months Ended
	Dec. 31, 2016USD ($)Payment	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	$ 40,000,000
Proceeds from debenture issued	$ 41,238,000
Number of interest deferrals on consecutive quarterly payments | Payment	20
Long-term debt	$ 41,238,000	$ 41,238,000
Other assets	5,286,000	3,984,000
Preferred Securities issued qualified as Tier 1 capital for regulatory capital purposes	118,655,000	112,851,000
Common Securities [Member]
Debt Instrument [Line Items]
Other assets	$ 1,238,000	1,238,000
Macatawa Statutory Trust I [Member]
Debt Instrument [Line Items]
Basis spread on three-month LIBOR	3.05%
Description of variable rate basis	LIBOR
Maturity date	Jul. 15, 2033
Macatawa Statutory Trust I [Member] | Common Securities [Member]
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	$ 619,000
Macatawa Statutory Trust II [Member]
Debt Instrument [Line Items]
Basis spread on three-month LIBOR	2.75%
Description of variable rate basis	LIBOR
Maturity date	Mar. 18, 2034
Macatawa Statutory Trust II [Member] | Common Securities [Member]
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	$ 619,000
Preferred Securities [Member]
Debt Instrument [Line Items]
Preferred Securities issued qualified as Tier 1 capital for regulatory capital purposes	40,000,000	$ 40,000,000
Preferred Securities [Member] | Macatawa Statutory Trust I [Member]
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	20,000,000
Preferred Securities [Member] | Macatawa Statutory Trust II [Member]
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	$ 20,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loans to principal officers, directors, and their affiliates [Roll Forward]
Beginning balance	$ 17,351	$ 10,077
New loans and renewals	13,223	22,550
Repayments and renewals	(12,648)	(15,114)
Effect of changes in related parties	6,407	(162)
Ending balance	24,333	17,351
Principal Officers, Directors, and Affiliates [Member]
Loans to principal officers, directors, and their affiliates [Roll Forward]
Deposits from principal officers, directors, and their affiliates	92,900	72,900
Director [Member] | Back-to-Back Swap Agreement [Member]
Loans to principal officers, directors, and their affiliates [Roll Forward]
Notional amount of agreement	$ 16,800	$ 17,700

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term	10 years
Option granted (in shares)	0	0	0
Summary of option activity, number outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	102,299
Forfeited (in shares)	(8,000)
Expired (in shares)	(41,299)
Outstanding, end of period (in shares)	53,000	102,299
Exercisable, end of period (in shares)	53,000
Weighted average exercise price [Roll Forward]
Outstanding beginning of period (in dollars per share)	$ 13.04
Forfeited (in dollars per share)	8.57
Expired (in dollars per share)	19.64
Outstanding end of period (in dollars per share)	8.57	$ 13.04
Exercisable, end of period (in dollars per share)	$ 8.57
Options, additional disclosures [Abstract]
Outstanding, weighted average remaining contractual term	1 year 18 days
Exercisable, weighted average remaining contractual term	1 year 18 days
Outstanding, aggregate intrinsic value	$ 97,520,000
Exercisable, aggregate intrinsic value	97,520,000
Information related to stock options during each year [Abstract]
Intrinsic value of options exercised	0	$ 0	$ 0
Cash received from option exercises	0	0	0
Tax benefit realized from option exercises	0	0	0
Share-based compensation cost	0	0	0
Unrecognized cost related to nonvested stock options granted	$ 0
Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Information related to stock options during each year [Abstract]
Share-based compensation cost	$ 536,000	$ 478,000	338,000
Changes in nonvested restricted stock awards, shares [Roll Forward]
Outstanding, beginning of period (in shares)	197,846
Granted (in shares)	46,025
Vested (in shares)	(111,323)
Forfeited (in shares)	0
Outstanding, end of period (in shares)	132,548	197,846
Weighted-average grant-date fair value [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 5.34
Granted (in dollars per share)	9.67
Vested (in dollars per share)	5.28
Forfeited (in dollars per share)	0
Outstanding, end of period (in dollars per share)	$ 6.88	$ 5.34
Aggregate intrinsic value [Roll Forward]
Outstanding, beginning of period	$ 1,196,968
Granted	479,120
Vested	1,158,872
Forfeited	0
Outstanding, end of period	1,379,825	$ 1,196,968
Total remaining unrecognized compensation cost related to nonvested shares	$ 864,000
Weighted-average period for recognition for unrecognized compensation cost	1 year 5 months 16 days
Total grant date fair value of shares vested	$ 588,000	$ 471,000	$ 299,000
Employees' Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares permitted under the plan (in shares)	1,917,210
Directors' Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares permitted under the plan (in shares)	473,278
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares permitted under the plan (in shares)	1,500,000
Shares available for issuance (in shares)	1,365,975

EMPLOYEE BENEFITS (Details)

EMPLOYEE BENEFITS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
EMPLOYEE BENEFITS [Abstract]
Employer matching contribution, first	100.00%
Employee contribution, first	3.00%
Employer matching contribution, second	50.00%
Employee contribution, second	3.00%
Maximum employer matching contribution	5.00%
Employer contributions	$ 673,000	$ 665,000	$ 630,000
Number of shares of common stock reserved to be issued under Employee Stock Purchase Plan (in shares)	210,000

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract]
Net income available to common shares									$ 15,951	$ 12,794	$ 10,473
Weighted average shares outstanding, including participating stock awards - Basic (in shares)									33,922,548	33,872,814	33,803,030
Dilutive potential common shares [Abstract]
Stock options (in shares)									0	0	0
Stock warrants (in shares)									0	0	0
Weighted average shares outstanding - Diluted (in shares)									33,922,548	33,872,814	33,803,030
Basic earnings per common share (in dollars per share)	$ 0.12	$ 0.14	$ 0.11	$ 0.10	$ 0.10	$ 0.09	$ 0.09	$ 0.08	$ 0.47	$ 0.38	$ 0.31
Diluted earnings per common share (in dollars per share)	$ 0.12	$ 0.14	$ 0.11	$ 0.10	$ 0.10	$ 0.09	$ 0.09	$ 0.08	$ 0.47	$ 0.38	$ 0.31
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)									53,000	102,299	260,261

FEDERAL INCOME TAXES (Details)

FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income tax expense (benefit) [Abstract]
Current		$ 5,289	$ 2,335	$ 1,724
Deferred		942	3,291	2,849
Income tax expense		$ 6,231	$ 5,626	$ 4,573
Difference between financial statement tax expense (benefit) and amount computed by applying statutory federal tax rate to pretax income [Abstract]
Statutory rate		35.00%	35.00%	35.00%
Statutory rate applied to income before taxes		$ 7,764	$ 6,447	$ 5,266
Deduct [Abstract]
Tax-exempt interest income		(620)	(529)	(391)
Bank-owned life insurance		(342)	(232)	(237)
Tax return credits and other adjustments	$ (513)	(513)	0	0
Other, net		(58)	(60)	(65)
Income tax expense		6,231	5,626	4,573
Valuation allowance on deferred tax assets		0	0	0
Deferred tax assets [Abstract]
Allowance for loan losses		5,937	5,978
Nonaccrual loan interest		718	850
Valuation allowance on other real estate owned		3,714	3,782
Unrealized loss on securities available for sale		799	0
Other		176	647
Gross deferred tax assets		11,344	11,257
Valuation allowance		0	0	$ 0
Total net deferred tax assets		11,344	11,257
Deferred tax liabilities [Abstract]
Depreciation		(1,705)	(1,739)
Prepaid expenses		(399)	(191)
Unrealized gain on securities available for sale		0	(187)
Other		(377)	(321)
Gross deferred tax liabilities		(2,481)	(2,438)
Net deferred tax asset		8,863	8,819
Unrecognized tax benefits		$ 0	$ 0
Period when unrecognized tax benefits is not expected to significantly increase or decrease		12 months

COMMITMENTS AND OFF BALANCE-S73

COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Notional amount of commitments to fund mortgage loans to be sold into the secondary market	$ 19,800	$ 19,800
Commitments to make loans at fixed rates	47.00%
Expiration period of commitment to make variable rate loan	30 days
Commitments to Make Loans [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 90,293	97,991
Letters of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	13,823	12,976
Unused Lines of Credit [Member]
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract]
Contractual amounts of financial instruments with off-balance-sheet risk	$ 437,435	$ 426,080

CONTINGENCIES (Details)

CONTINGENCIES (Details) - Employment Agreement Litigation, Benj. A. Smith III [Member] - USD ($)	Jan. 27, 2014	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2015
Loss Contingencies [Line Items]
Monthly entitlement claimed by plaintiff	$ 20,833
Period of monthly damage claims sought for employment agreement	6 years
Settlement liability, net of insurance proceeds				$ 516,000
Litigation settlement expense			$ 516,000
Payments for legal settlements		$ 516,000

SHAREHOLDERS' EQUITY, Regulator

SHAREHOLDERS' EQUITY, Regulatory Capital (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Category	Dec. 31, 2015USD ($)
SHAREHOLDERS' EQUITY [Abstract]
Number of classification of prompt corrective action regulations | Category	5
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital (to risk weighted assets), actual amount	$ 163,663	$ 151,630
CET1 capital (to risk weighted assets), actual ratio	11.00%	10.80%
Tier 1 capital (to risk weighted assets), actual amount	$ 203,663	$ 191,630
Tier 1 capital (to risk weighted assets), actual ratio	13.70%	13.60%
Total capital (to risk weighted assets), actual amount	$ 220,625	$ 208,711
Total capital (to risk weighted assets), actual ratio	14.90%	14.80%
Tier 1 capital (to average assets), actual amount	$ 203,663	$ 191,630
Tier 1 capital (to average assets), actual ratio	12.00%	11.50%
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 66,743	$ 63,479
CET1 capital (to risk weighted assets), minimum capital adequacy, ratio	4.50%	4.50%
Tier 1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 88,991	$ 84,638
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio	6.00%	6.00%
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount	$ 118,655	$ 112,851
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio	8.00%	8.00%
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 67,810	$ 66,400
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio	4.00%	4.00%
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 76,013
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	5.10%
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 98,261
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	6.60%
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 127,925
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	8.60%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital (to risk weighted assets), actual amount	$ 197,972	$ 186,930
CET1 capital (to risk weighted assets), actual ratio	13.40%	13.20%
Tier 1 capital (to risk weighted assets), actual amount	$ 197,972	$ 186,930
Tier 1 capital (to risk weighted assets), actual ratio	13.40%	13.20%
Total capital (to risk weighted assets), actual amount	$ 214,934	$ 203,471
Total capital (to risk weighted assets), actual ratio	14.50%	14.40%
Tier 1 capital (to average assets), actual amount	$ 197,972	$ 186,930
Tier 1 capital (to average assets), actual ratio	11.70%	11.20%
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 66,737	$ 63,463
CET1 capital (to risk weighted assets), minimum capital adequacy, ratio	4.50%	4.50%
Tier 1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 88,983	$ 84,617
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio	6.00%	6.00%
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount	$ 118,644	$ 112,822
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio	8.00%	8.00%
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 67,742	$ 66,332
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio	4.00%	4.00%
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 76,006
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	5.10%
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 98,252
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	6.60%
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 127,913
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	8.60%
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 96,398	$ 91,668
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	6.50%	6.50%
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 118,644	$ 112,822
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	8.00%	8.00%
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 148,305	$ 141,028
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio	10.00%	10.00%
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, amount	$ 84,677	$ 82,915
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio	5.00%	5.00%
Trust preferred securities that qualified as Tier one risk based capital	$ 40,000	$ 40,000

SHAREHOLDERS' EQUITY, Issuance

SHAREHOLDERS' EQUITY, Issuance of Capital (Details) - Warrants [Member] - $ / shares	12 Months Ended	60 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2009
Class of Warrant or Right [Line Items]
Number of securities called by warrants (in shares)			1,478,811
Exercise price of warrants (in dollars per share)			$ 9
Warrant expiration date	Dec. 31, 2015
Warrants exercise period	5 years
Number of warrants executed (in shares)		1
Number of common shares that can be purchased through warrant (in shares)		392

CONDENSED FINANCIAL STATEMENT77

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 89,819	$ 181,476	$ 129,455	$ 156,892
Other assets	5,286	3,984
Total assets	1,741,013	1,729,643
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt	41,238	41,238
Total liabilities	1,578,774	1,577,666
Total shareholders' equity	162,239	151,977	142,519	132,522
Total liabilities and shareholders' equity	1,741,013	1,729,643
Parent Company [Member]
ASSETS
Cash and cash equivalents	5,542	4,818	$ 2,544	$ 1,910
Investments in Bank subsidiary	196,548	186,737
Investment in other subsidiaries	1,471	1,478
Other assets	134	362
Total assets	203,695	193,395
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt	41,238	41,238
Other liabilities	218	180
Total liabilities	41,456	41,418
Total shareholders' equity	162,239	151,977
Total liabilities and shareholders' equity	$ 203,695	$ 193,395

CONDENSED FINANCIAL STATEMENT78

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
EXPENSE
Interest expense									$ 4,959	$ 5,306	$ 5,596
Income before income tax									22,182	18,420	15,046
Income tax benefit									6,231	5,626	4,573
Net income	$ 4,108	$ 4,603	$ 3,745	$ 3,495	$ 3,538	$ 3,201	$ 3,215	$ 2,840	15,951	12,794	10,473
Comprehensive income									14,120	13,080	12,489
Parent Company [Member]
INCOME
Dividends from subsidiaries									6,238	5,160	4,139
Other									0	0	0
Total income									6,238	5,160	4,139
EXPENSE
Interest expense									1,503	1,331	1,311
Other expense									665	592	611
Total expense									2,168	1,923	1,922
Income before income tax and equity in undistributed earnings of subsidiaries									4,070	3,237	2,217
Equity in undistributed earnings of subsidiaries									11,128	8,893	7,592
Income before income tax									15,198	12,130	9,809
Income tax benefit									(753)	(664)	(664)
Net income									15,951	12,794	10,473
Comprehensive income									$ 14,120	$ 13,080	$ 12,489

CONDENSED FINANCIAL STATEMENT79

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net income	$ 4,108	$ 4,603	$ 3,745	$ 3,495	$ 3,538	$ 3,201	$ 3,215	$ 2,840	$ 15,951	$ 12,794	$ 10,473
Adjustments to reconcile net income to net cash from operating activities:
Stock compensation expense									536	478	338
Net cash from operating activities									16,928	14,001	16,618
Cash flows from investing activities
Net cash from investing activities									(105,340)	(95,303)	(95,806)
Cash flows from financing activities
Proceeds from issuance of common stock									0	0	4
Cash dividends paid									(4,049)	(3,702)	(2,689)
Common stock issuance costs									0	0	(102)
Repurchases of shares									(269)	(171)	(106)
Net cash from financing activities									(3,245)	133,323	51,751
Net change in cash and cash equivalents									(91,657)	52,021	(27,437)
Cash and cash equivalents at beginning of period				181,476				129,455	181,476	129,455	156,892
Cash and cash equivalents at end of period	89,819				181,476				89,819	181,476	129,455
Common Stock [Member]
Cash flows from operating activities
Net income									0	0	0
Cash flows from financing activities
Common stock issuance costs											(102)
Parent Company [Member]
Cash flows from operating activities
Net income									15,951	12,794	10,473
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed earnings of subsidiaries									(11,128)	(8,893)	(7,592)
Stock compensation expense									33	18	2
Change in other assets									148	2,237	673
Change in other liabilities									38	(9)	(29)
Net cash from operating activities									5,042	6,147	3,527
Cash flows from investing activities
Investment in subsidiaries									0	0	0
Net cash from investing activities									0	0	0
Cash flows from financing activities
Proceeds from issuance of common stock									0	0	4
Cash dividends paid									(4,049)	(3,702)	(2,689)
Common stock issuance costs									0	0	(102)
Repurchases of shares									(269)	(171)	(106)
Net cash from financing activities									(4,318)	(3,873)	(2,893)
Net change in cash and cash equivalents									724	2,274	634
Cash and cash equivalents at beginning of period				$ 4,818				$ 2,544	4,818	2,544	1,910
Cash and cash equivalents at end of period	$ 5,542				$ 4,818				$ 5,542	$ 4,818	$ 2,544

QUARTERLY FINANCIAL DATA (Una80

QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
Interest income	$ 13,496	$ 13,122	$ 12,873	$ 13,008	$ 12,709	$ 12,427	$ 12,238	$ 12,011	$ 52,499	$ 49,386	$ 46,988
Net interest income	12,292	11,902	11,608	11,738	11,461	11,121	10,845	10,652	47,540	44,080	41,392
Provision for loan losses	(250)	(250)	(750)	(100)	(1,750)	(250)	(500)	(1,000)	(1,350)	(3,500)	(3,350)
Net income	$ 4,108	$ 4,603	$ 3,745	$ 3,495	$ 3,538	$ 3,201	$ 3,215	$ 2,840	$ 15,951	$ 12,794	$ 10,473
Earnings per common share, basic (in dollars per share)	$ 0.12	$ 0.14	$ 0.11	$ 0.10	$ 0.10	$ 0.09	$ 0.09	$ 0.08	$ 0.47	$ 0.38	$ 0.31
Earnings per common share, diluted (in dollars per share)	$ 0.12	$ 0.14	$ 0.11	$ 0.10	$ 0.10	$ 0.09	$ 0.09	$ 0.08	$ 0.47	$ 0.38	$ 0.31
Expense associated with distribution of net benefits from bank owned life insurance				$ 290
Realization of tax credits and other adjustments		$ 513							$ 513	$ 0	$ 0