Macatawa Bank (MCBC) 10-Q 27 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 27, 2017
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 Common Stock, Shares Outstanding		33,944,789
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 30,631	$ 27,690
Federal funds sold and other short -term investments	83,118	62,129
Cash and cash equivalents	113,749	89,819
Securities available for sale, at fair value	184,605	184,433
Securities held to maturity (fair value 2017 - $69,079 and 2016 - $69,849)	68,473	69,378
Federal Home Loan Bank (FHLB) stock	11,558	11,558
Loans held for sale, at fair value	2,767	2,181
Total loans	1,266,128	1,280,812
Allowance for loan losses	(16,696)	(16,962)
Net loans	1,249,432	1,263,850
Premises and equipment - net	49,832	50,026
Accrued interest receivable	4,204	4,092
Bank-owned life insurance	39,524	39,274
Other real estate owned - net	12,074	12,253
Net deferred tax asset	8,330	8,863
Other assets	4,305	5,286
Total assets	1,748,853	1,741,013
Deposits
Noninterest-bearing	466,415	501,478
Interest-bearing	966,731	947,246
Total deposits	1,433,146	1,448,724
Other borrowed funds	102,785	84,173
Long-term debt	41,238	41,238
Accrued expenses and other liabilities	5,539	4,639
Total liabilities	1,582,708	1,578,774
Commitments and contingent liabilities
Shareholders' equity
Common stock, no par value, 200,000,000 shares authorized; 33,944,788 and 33,940,788 shares issued and outstanding at March 31, 2017 and December 31, 2016	216,845	216,731
Retained deficit	(49,905)	(53,008)
Accumulated other comprehensive income (loss)	(795)	(1,484)
Total shareholders' equity	166,145	162,239
Total liabilities and shareholders' equity	$ 1,748,853	$ 1,741,013

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Securities held to maturity, fair value	$ 69,079	$ 69,849
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)	33,944,788	33,940,788
Common stock, shares outstanding (in shares)	33,944,788	33,940,788

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest income
Loans, including fees	$ 12,455	$ 11,756
Securities
Taxable	639	550
Tax-exempt	538	433
FHLB Stock	124	124
Federal funds sold and other short-term investments	92	145
Total interest income	13,848	13,008
Interest expense
Deposits	481	463
Other borrowings	382	442
Long-term debt	402	365
Total interest expense	1,265	1,270
Net interest income	12,583	11,738
Provision for loan losses	(500)	(100)
Net interest income after provision for loan losses	13,083	11,838
Noninterest income
Service charges and fees	1,060	1,047
Net gains on mortgage loans	428	487
Trust fees	778	708
ATM and debit card fees	1,201	1,186
Gain on sales of securities	3	89
Bank owned life insurance ("BOLI") income	238	444
Other	523	647
Total noninterest income	4,231	4,608
Noninterest expense
Salaries and benefits	5,999	6,187
Occupancy of premises	1,026	982
Furniture and equipment	732	865
Legal and professional	225	159
Marketing and promotion	227	275
Data processing	682	659
FDIC assessment	136	251
Interchange and other card expense	313	286
Bond and D&O Insurance	117	132
Net losses (gains) on repossessed and foreclosed properties	(85)	36
Administration and disposition of problem assets	180	375
Other	1,336	1,344
Total noninterest expenses	10,888	11,551
Income before income tax	6,426	4,895
Income tax expense	1,966	1,400
Net income	$ 4,460	$ 3,495
Basic earnings per common share (in dollars per share)	$ 0.13	$ 0.10
Diluted earnings per common share (in dollars per share)	0.13	0.10
Cash dividends per common share (in dollars per share)	$ 0.04	$ 0.03

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract]
Net income	$ 4,460	$ 3,495
Unrealized gains (losses):
Net change in unrealized gains (losses) on securities available for sale	1,063	1,064
Tax effect	(372)	(372)
Net change in unrealized gains (losses) on securities available for sale, net of tax	691	692
Less: reclassification adjustments:
Reclassification for gains included in net income	3	89
Tax effect	(1)	(31)
Reclassification for gains included in net income, net of tax	2	58
Other comprehensive income (loss), net of tax	689	634
Comprehensive income	$ 5,149	$ 4,129

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2015	$ 216,540	$ (64,910)	$ 347	$ 151,977
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	3,495	0	3,495
Cash dividends	0	(1,012)	0	(1,012)
Net change in unrealized gain (loss) on securities available for sale, net of tax	0	0	634	634
Stock compensation expense	147	0	0	147
Balance at Mar. 31, 2016	216,687	(62,427)	981	155,241
Balance at Dec. 31, 2016	216,731	(53,008)	(1,484)	162,239
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	4,460	0	4,460
Cash dividends	0	(1,357)	0	(1,357)
Net change in unrealized gain (loss) on securities available for sale, net of tax	0	0	689	689
Stock compensation expense	114	0	0	114
Balance at Mar. 31, 2017	$ 216,845	$ (49,905)	$ (795)	$ 166,145

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividend per share (in dollars per share)	$ 0.04	$ 0.03

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net income	$ 4,460	$ 3,495
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	537	659
Stock compensation expense	114	147
Provision for loan losses	(500)	(100)
Origination of loans for sale	(16,960)	(18,883)
Proceeds from sales of loans originated for sale	16,802	19,887
Net gains on mortgage loans	(428)	(487)
Gain on sales of securities	(3)	(89)
Write-down of other real estate	64	129
Net gain on sales of other real estate	(149)	(92)
Deferred income tax expense	162	(68)
Change in accrued interest receivable and other assets	869	(1,124)
Earnings in bank-owned life insurance	(238)	(444)
Change in accrued expenses and other liabilities	664	2,073
Net cash from operating activities	5,394	5,103
Cash flows from investing activities
Loan originations and payments, net	14,862	(18,206)
Change in interest-bearing deposits in other financial institutions	0	20,000
Purchases of securities available for sale	(8,867)	(21,802)
Proceeds from:
Maturities and calls of securities	6,457	12,883
Sales of securities available for sale	3,440	9,418
Principal paydowns on securities	1,109	911
Sales of other real estate	320	1,475
Death benefit from bank-owned life insurance	0	518
Additions to premises and equipment	(462)	(154)
Net cash from investing activities	16,859	5,043
Cash flows from financing activities
Change in deposits	(15,578)	(94,678)
Repayments and maturities of other borrowed funds	(1,388)	(1,329)
Proceeds from other borrowed funds	20,000	0
Cash dividends paid	(1,357)	(1,012)
Net cash from financing activities	1,677	(97,019)
Net change in cash and cash equivalents	23,930	(86,873)
Cash and cash equivalents at beginning of period	89,819	181,476
Cash and cash equivalents at end of period	113,749	94,603
Supplemental cash flow information
Interest paid	1,272	1,270
Income taxes paid	0	0
Supplemental noncash disclosures:
Transfers from loans to other real estate	56	102
Security settlement	$ 236	$ 1,012

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company under accounting principles generally accepted in the United States of America. Basis of Presentation: Operating results for the three month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. Use of Estimates 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 factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. At March 31, 2017, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, 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 a concession has been made, 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 and the loan is reported 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 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. Foreclosed Assets Income Taxes We recognize 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. We recognize interest and penalties related to income tax matters in income tax expense. Derivatives Reclassifications: Adoption of New Accounting Standards Improvements to Employee Share-Based Payment Accounting FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities Newly Issued Not Yet Effective Standards Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers FASB issued ASU 2016-02, Leases 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	3 Months Ended
	Mar. 31, 2017
SECURITIES [Abstract]
SECURITIES	NOTE 2 – SECURITIES The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2017 Available for Sale: U.S. Treasury and federal agency securities $ 86,517 $ 61 $ (900 ) $ 85,678 U.S. Agency MBS and CMOs 11,306 16 (157 ) 11,165 Tax-exempt state and municipal bonds 39,746 411 (348 ) 39,809 Taxable state and municipal bonds 34,757 82 (342 ) 34,497 Corporate bonds and other debt securities 12,002 16 (32 ) 11,986 Other equity securities 1,500 --- (30 ) 1,470 $ 185,828 $ 586 $ (1,809 ) $ 184,605 Held to Maturity Tax-exempt state and municipal bonds $ 68,473 $ 683 $ (77 ) $ 69,079 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 Proceeds from the sale of securities available for sale were $3.4 million and $9.4 million, respectively, in the three month periods ended March 31, 2017 and 2016 resulting in net gain on sale of $3,000 and $89,000, respectively, as reported in the Consolidated Statements of Income. This resulted in a reclassification of $3,000 ($2,000 net of tax) for the three months ended March 31, 2017 and $89,000 ($58,000 net of tax) for the three months ended March 31, 2016 from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statements of Income. Contractual maturities of debt securities at March 31, 2017 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 $ 24,552 $ 24,519 $ 18,210 $ 18,212 Due from one to five years 14,710 15,048 96,325 95,760 Due from five to ten years 8,279 8,471 54,895 54,526 Due after ten years 20,932 21,041 14,898 14,637 $ 68,473 $ 69,079 $ 184,328 $ 183,135 Securities with unrealized losses at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total March 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 60,493 $ (890 ) $ 3,039 $ (10 ) $ 63,532 $ (900 ) U.S. Agency MBS and CMOs 10,114 (157 ) --- --- 10,114 (157 ) Tax-exempt state and municipal bonds 37,802 (412 ) 397 (8 ) 38,199 (420 ) Taxable state and municipal bonds 19,139 (347 ) --- --- 19,139 (347 ) Corporate bonds and other debt securities 5,628 (28 ) 500 (4 ) 6,128 (32 ) Other equity securities 1,470 (30 ) --- --- 1,470 (30 ) Total temporarily impaired $ 134,646 $ (1,864 ) $ 3,936 $ (22 ) $ 138,582 $ (1,886 ) 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 ) 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 the three month periods ended March 31, 2017 and 2016. 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 March 31, 2017 and December 31, 2016.

LOANS

LOANS	3 Months Ended
	Mar. 31, 2017
LOANS [Abstract]
LOANS	NOTE 3 – LOANS Portfolio loans were as follows (dollars in thousands): March 31, 2017 December 31, 2016 Commercial and industrial $ 453,311 $ 449,342 Commercial real estate: Residential developed 10,188 11,970 Unsecured to residential developers 4,785 4,734 Vacant and unimproved 44,950 40,286 Commercial development 499 378 Residential improved 73,064 75,348 Commercial improved 277,898 289,478 Manufacturing and industrial 97,424 95,787 Total commercial real estate 508,808 517,981 Consumer Residential mortgage 212,949 217,614 Unsecured 343 396 Home equity 83,666 88,113 Other secured 7,051 7,366 Total consumer 304,009 313,489 Total loans 1,266,128 1,280,812 Allowance for loan losses (16,696 ) (16,962 ) $ 1,249,432 $ 1,263,850 Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended March 31, 2017 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 Charge-offs --- --- (26 ) --- (26 ) Recoveries 23 162 75 --- 260 Provision for loan losses 101 (267 ) (329 ) (5 ) (500 ) Ending Balance $ 6,469 $ 6,598 $ 3,591 $ 38 $ 16,696 Three months ended March 31, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (76 ) --- (76 ) Recoveries 49 121 54 --- 224 Provision for loan losses 70 (129 ) (40 ) (1 ) (100 ) Ending Balance $ 4,945 $ 8,449 $ 3,699 $ 36 $ 17,129 The following table presents 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): March 31, 2017 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 642 $ 304 $ 702 $ --- $ 1,648 Collectively evaluated for impairment 5,827 6,294 2,889 38 15,048 Total ending allowance balance $ 6,469 $ 6,598 $ 3,591 $ 38 $ 16,696 Loans: Individually reviewed for impairment $ 7,445 $ 9,931 $ 11,400 $ --- $ 28,776 Collectively evaluated for impairment 445,866 498,877 292,609 --- 1,237,352 Total ending loans balance $ 453,311 $ 508,808 $ 304,009 $ --- $ 1,266,128 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 The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2017 (dollars in thousands): March 31, 2017 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 3,921 $ 3,921 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development --- --- --- Residential improved 27 27 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 27 27 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 3,948 $ 3,948 $ --- With an allowance recorded: Commercial and industrial $ 3,524 $ 3,524 $ 642 Commercial real estate: Residential developed 185 185 3 Unsecured to residential developers --- --- --- Vacant and unimproved 375 375 10 Commercial development 189 189 6 Residential improved 2,815 2,815 149 Commercial improved 6,116 6,116 132 Manufacturing and industrial 224 224 4 9,904 9,904 304 Consumer: Residential mortgage 7,467 7,467 460 Unsecured --- --- --- Home equity 3,933 3,933 242 Other secured --- --- --- 11,400 11,400 702 Total with an allowance recorded $ 24,828 $ 24,828 $ 1,648 Total $ 28,776 $ 28,776 $ 1,648 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 information regarding average balances of impaired loans and interest recognized on impaired loans for the three month periods ended March 31, 2017 and 2016 (dollars in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Average of impaired loans during the period: Commercial and industrial $ 6,843 $ 8,265 Commercial real estate: Residential developed 185 --- Unsecured to residential developers --- --- Vacant and unimproved 379 446 Commercial development 189 192 Residential improved 4,086 5,543 Commercial improved 6,158 9,537 Manufacturing and industrial 225 239 Consumer 11,495 13,140 Interest income recognized during impairment: Commercial and industrial 278 298 Commercial real estate 126 201 Consumer 109 122 Cash-basis interest income recognized Commercial and industrial 265 288 Commercial real estate 123 200 Consumer 107 123 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 March 31, 2017 and December 31, 2016: March 31, 2017 Nonaccrual Over 90 days Accruing Commercial and industrial $ 127 $ --- Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 79 --- Commercial improved 124 --- Manufacturing and industrial --- --- 252 --- Consumer: Residential mortgage 2 --- Unsecured 13 --- Home equity 7 --- Other secured --- --- 22 --- Total $ 401 $ --- 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 $ --- The following table presents the aging of the recorded investment in past due loans as of March 31, 2017 and December 31, 2016 by class of loans (dollars in thousands): March 31, 2017 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 30 $ 121 $ 151 $ 453,160 $ 453,311 Commercial real estate: Residential developed --- --- --- 10,188 10,188 Unsecured to residential developers --- --- --- 4,785 4,785 Vacant and unimproved --- --- --- 44,950 44,950 Commercial development 189 49 238 261 499 Residential improved 92 79 171 72,893 73,064 Commercial improved 124 --- 124 277,774 277,898 Manufacturing and industrial --- --- --- 97,424 97,424 405 128 533 508,275 508,808 Consumer: Residential mortgage 204 --- 204 212,745 212,949 Unsecured 12 --- 12 331 343 Home equity --- --- 83,666 83,666 Other secured 15 --- 15 7,036 7,051 231 --- 231 303,778 304,009 Total $ 666 $ 249 $ 915 $ 1,265,213 $ 1,266,128 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 Company had allocated $1,648,000 and $1,696,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of March 31, 2017 and December 31, 2016, 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. 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. 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 troubled debt restructurings as of March 31, 2017 and December 31, 2016 (dollars in thousands): March 31, 2017 December 31, 2016 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 24 $ 7,444 25 $ 5,994 Commercial real estate 43 9,931 49 11,933 Consumer 111 11,782 116 12,059 178 $ 29,157 190 $ 29,986 The following table presents information related to accruing troubled debt restructurings as of March 31, 2017 and December 31, 2016. The table presents the amount of accruing troubled debt restructurings 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 each period reported (dollars in thousands): March 31, 2017 December 31, 2016 Accruing TDR - nonaccrual at restructuring $ --- $ --- Accruing TDR - accruing at restructuring 23,215 25,665 Accruing TDR - upgraded to accruing after six consecutive payments 5,800 4,172 $ 29,015 $ 29,837 The following tables present information regarding troubled debt restructurings executed during the three month periods ended March 31, 2017 and 2016 (dollars in thousands): Three Months Ended March 31, Three Months Ended March 31, # of Loans Pre-TDR Balance Writedown Upon TDR # of Loans Pre-TDR Balance Writedown Upon TDR Commercial and industrial --- $ --- $ --- --- $ --- $ --- Commercial real estate --- --- --- --- --- --- Consumer --- --- --- 4 238 --- --- --- $ --- 4 $ 238 $ --- 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 three months ended March 31, 2017 and 2016, 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 As of March 31, 2017 and December 31, 2016, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): March 31, 2017 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 24,690 $ 111,044 $ 297,713 $ 12,063 $ 7,674 $ 127 $ --- $ 453,311 Commercial real estate: Residential developed --- --- 1,703 7,640 845 --- --- --- 10,188 Unsecured to residential developers --- --- --- 4,785 --- --- --- --- 4,785 Vacant and unimproved --- --- 21,257 20,157 3,536 --- --- --- 44,950 Commercial development --- --- 121 139 --- 190 49 --- 499 Residential improved --- --- 6,132 62,688 2,572 1,593 79 --- 73,064 Commercial improved --- 3,656 58,960 206,827 7,233 1,098 124 --- 277,898 Manufacturing & industrial --- 1,587 37,797 55,153 2,308 579 --- --- 97,424 $ --- $ 29,933 $ 237,014 $ 655,102 $ 28,557 $ 11,134 $ 379 $ --- $ 962,119 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 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 period-end (dollars in thousands): March 31, 2017 December 31, 2016 Not classified as impaired $ 2,434 $ 2,608 Classified as impaired 9,079 7,498 Total commercial loans classified substandard or worse $ 11,513 $ 10,106 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 table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): March 31, 2017 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 212,949 $ 343 $ 83,666 $ 7,051 Nonperforming --- --- --- --- Total $ 212,949 $ 343 $ 83,666 $ 7,051 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

OTHER REAL ESTATE OWNED

OTHER REAL ESTATE OWNED	3 Months Ended
	Mar. 31, 2017
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): Three Months Ended March 31, 2017 Year Ended December 31, 2016 Three Months Ended March 31, 2016 Beginning balance $ 22,864 $ 28,377 $ 28,377 Additions, transfers from loans 56 339 102 Proceeds from sales of other real estate owned (320 ) (5,339 ) (1,475 ) Valuation allowance reversal upon sale (250 ) (1,158 ) (251 ) Gain on sales of other real estate owned 149 645 92 22,499 22,864 26,845 Less: valuation allowance (10,425 ) (10,611 ) (10,683 ) Ending balance $ 12,074 $ 12,253 $ 16,162 Activity in the valuation allowance was as follows (dollars in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Beginning balance $ 10,611 $ 10,805 Additions charged to expense 64 129 Reversals upon sale (250 ) (251 ) Ending balance $ 10,425 $ 10,683

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2017
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: For interest rate swap agreements, we measure fair value utilizing pricing provided by a third-party pricing source that that uses market observable inputs, such as forecasted yield curves, and other unobservable inputs and accordingly, interest rate swap agreements are classified as Level 3. Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2017 U.S. Treasury and federal agency securities $ 85,678 $ --- $ 85,678 $ --- U.S. Agency MBS and CMOs 11,165 --- 11,165 --- Tax-exempt state and municipal bonds 39,809 --- 39,809 --- Taxable state and municipal bonds 34,497 --- 34,497 --- Corporate bonds and other debt securities 11,986 --- 11,986 --- Other equity securities 1,470 --- 1,470 --- Loans held for sale 2,767 --- 2,767 --- Interest rate swaps 383 --- --- 383 Interest rate swaps (383 ) --- --- (383 ) 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 ) Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2017 Impaired loans $ 3,282 $ --- $ --- $ 3,282 Other real estate owned 9,400 --- --- 9,400 December 31, 2016 Impaired loans $ 3,436 $ --- $ --- $ 3,436 Other real estate owned 9,542 --- --- 9,542 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis was as follows at period end (dollars in thousands): Asset Fair Value Valuation Technique Unobservable Inputs Range (%) March 31, 2017 Impaired Loans $ 3,282 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 35.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 9,400 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 42.0 Income approach Capitalization rate 9.5 to 11.5 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 to35.0 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 The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at March 31, 2017 and December 31, 2016 (dollars in thousands): Financial assets Level in Fair Value Hierarchy March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and due from banks Level 1 $ 30,631 $ 30,631 $ 27,690 $ 27,690 Cash equivalents Level 2 83,118 83,118 62,129 62,129 Securities held to maturity Level 3 68,473 69,079 69,378 69,849 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,245,996 1,234,716 1,260,414 1,247,842 Bank owned life insurance Level 3 39,524 39,524 39,274 39,274 Accrued interest receivable Level 2 4,204 4,204 4,092 4,092 Financial liabilities Deposits Level 2 (1,433,146 ) (1,433,068 ) (1,448,724 ) (1,448,692 ) Other borrowed funds Level 2 (102,785 ) (102,595 ) (84,173 ) (84,051 ) Long-term debt Level 2 (41,238 ) (36,277 ) (41,238 ) (36,112 ) Accrued interest payable Level 2 (275 ) (275 ) (282 ) (282 ) 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, or 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.

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2017
DEPOSITS [Abstract]
DEPOSITS	NOTE 6 – DEPOSITS Deposits are summarized as follows (in thousands): March 31, 2017 December 31, 2016 Noninterest-bearing demand $ 466,415 $ 501,478 Interest bearing demand 342,812 340,715 Savings and money market accounts 548,761 532,853 Certificates of deposit 75,158 73,678 $ 1,433,146 $ 1,448,724 Time deposits that exceed the FDIC insurance limit of $250,000 were approximately $18.1 million at March 31, 2017 and $17.4 million at December 31, 2016.

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS	3 Months Ended
	Mar. 31, 2017
OTHER BORROWED FUNDS [Abstract]
OTHER BORROWED FUNDS	NOTE 7 - 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 period-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 March 31, 2017 Single maturity fixed rate advances $ 100,000 April 2017 to April 2021 1.41 % Amortizable mortgage advances 2,785 March 2018 to July 2018 3.75 % $ 102,785 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 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 $464,498,000 and $424,951,000 under a blanket lien arrangement at March 31, 2017 and December 31, 2016, respectively. Scheduled repayments of FHLB advances as of March 31, 2017 were as follows (in thousands): 2017 $ 20,667 2018 52,118 2019 10,000 2020 10,000 2021 10,000 Thereafter --- $ 102,785 Federal Reserve Bank borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at March 31, 2017 and December 31, 2016, and the Company had approximately $16.3 million and $18.1 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $20.4 million and $20.7 million at March 31, 2017 and December 31, 2016, respectively.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	3 Months Ended
	Mar. 31, 2017
EARNINGS PER COMMON SHARE [Abstract]
EARNINGS PER COMMON SHARE	NOTE 8 - EARNINGS PER COMMON SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three month periods ended March 31, 2017 and 2016 are as follows (dollars in thousands, except per share data): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Net income available to common shares $ 4,460 $ 3,495 Weighted average shares outstanding, including participating stock awards - 33,941,010 33,925,113 Dilutive potential common shares: Stock options 7,574 --- Stock warrants --- --- Weighted average shares outstanding - 33,948,584 33,925,113 Basic earnings per common share $ 0.13 $ 0.10 Diluted earnings per common share $ 0.13 $ 0.10 Stock options for 101,473 shares of common stock for the three month period ended March 31, 2016, were not considered in computing diluted earnings per share because they were antidilutive. There were no antidilutive shares of common stock at March 31, 2017.

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	3 Months Ended
	Mar. 31, 2017
FEDERAL INCOME TAXES [Abstract]
FEDERAL INCOME TAXES	NOTE 9 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Current $ 1,804 $ 1,468 Deferred 162 (68 ) $ 1,966 $ 1,400 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): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Statutory rate 35 % 35 % Statutory rate applied to income before taxes $ 2,249 $ 1,713 Deduct Tax-exempt interest income (183 ) (148 ) Bank-owned life insurance (83 ) (155 ) Other, net (17 ) (10 ) $ 1,966 $ 1,400 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 March 31, 2017 or December 31, 2016. The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): March 31, 2017 December 31, 2016 Deferred tax assets Allowance for loan losses $ 5,844 $ 5,937 Nonaccrual loan interest 642 718 Valuation allowance on other real estate owned 3,649 3,714 Unrealized loss on securities available for sale 428 799 Other 216 176 Gross deferred tax assets 10,779 11,344 Valuation allowance --- --- Total net deferred tax assets 10,779 11,344 Deferred tax liabilities Depreciation (1,655 ) (1,705 ) Prepaid expenses (399 ) (399 ) Unrealized gain on securities available for sale --- --- Other (395 ) (377 ) Gross deferred tax liabilities (2,449 ) (2,481 ) Net deferred tax asset $ 8,330 $ 8,863 There were no unrecognized tax benefits at March 31, 2017 or December 31, 2016 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 2013.

COMMITMENTS AND OFF BALANCE-SHE

COMMITMENTS AND OFF BALANCE-SHEET RISK	3 Months Ended
	Mar. 31, 2017
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
COMMITMENTS AND OFF BALANCE-SHEET RISK	NOTE 10 – 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 period-end (dollars in thousands): March 31, 2017 December 31, 2016 Commitments to make loans $ 95,653 $ 90,293 Letters of credit 13,598 13,823 Unused lines of credit 446,346 437,435 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $16.8 million and $19.8 million at March 31, 2017 and December 31, 2016, respectively. At March 31, 2017, approximately 37.5% 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 prime or one month LIBOR and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to prime.

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
CONTINGENCIES [Abstract]
CONTINGENCIES	NOTE 11 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of March 31, 2017, there were no material pending legal proceedings to which the Company or any of its subsidiaries are a party or which any of its properties are the subject.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2017
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 12 – 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 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. At March 31, 2017 and December 31, 2016, actual capital levels and minimum required levels were (dollars in thousands): 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 March 31, 2017 CET1 capital (to risk weighted assets) Consolidated $ 166,880 11.3 % $ 66,557 4.5 % $ 85,045 5.8 % N/A N/A Bank 201,129 13.6 66,552 4.5 85,038 5.8 $ 96,130 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 206,880 14.0 88,742 6.0 107,230 7.3 N/A N/A Bank 201,129 13.6 88,736 6.0 107,222 7.3 118,314 8.0 Total capital (to risk weighted assets) Consolidated 223,575 15.1 118,323 8.0 136,811 9.3 N/A N/A Bank 217,825 14.7 118,314 8.0 136,801 9.3 147,893 10.0 Tier 1 capital (to average assets) Consolidated 206,880 12.1 68,329 4.0 N/A N/A N/A N/A Bank 201,129 11.8 68,264 4.0 N/A N/A 85,330 5.0 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 Approximately $40.0 million of trust preferred securities outstanding at March 31, 2017 and December 31, 2016, respectively, qualified as Tier 1 capital. Refer to our 2016 Form 10-K for more information on the trust preferred securities. The Bank was categorized as "well capitalized" at March 31, 2017 and December 31, 2016.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Principles of Consolidation	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 stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company under accounting principles generally accepted in the United States of America.
Basis of Presentation	Basis of Presentation: Operating results for the three month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.
Use of Estimates	Use of Estimates
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 factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. At March 31, 2017, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, 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 a concession has been made, 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 and the loan is reported 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 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.
Foreclosed Assets	Foreclosed Assets
Income Taxes	Income Taxes We recognize 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. We recognize interest and penalties related to income tax matters in income tax expense.
Derivatives	Derivatives
Reclassifications	Reclassifications:
Adoption of New Accounting Standards	Adoption of New Accounting Standards Improvements to Employee Share-Based Payment Accounting FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities
Newly Issued Not Yet Effective Standards	Newly Issued Not Yet Effective Standards Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers FASB issued ASU 2016-02, Leases 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)	3 Months Ended
	Mar. 31, 2017
SECURITIES [Abstract]
Amortized Cost and Fair Value of Securities	The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2017 Available for Sale: U.S. Treasury and federal agency securities $ 86,517 $ 61 $ (900 ) $ 85,678 U.S. Agency MBS and CMOs 11,306 16 (157 ) 11,165 Tax-exempt state and municipal bonds 39,746 411 (348 ) 39,809 Taxable state and municipal bonds 34,757 82 (342 ) 34,497 Corporate bonds and other debt securities 12,002 16 (32 ) 11,986 Other equity securities 1,500 --- (30 ) 1,470 $ 185,828 $ 586 $ (1,809 ) $ 184,605 Held to Maturity Tax-exempt state and municipal bonds $ 68,473 $ 683 $ (77 ) $ 69,079 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
Contractual Maturities of Debt Securities	Contractual maturities of debt securities at March 31, 2017 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 $ 24,552 $ 24,519 $ 18,210 $ 18,212 Due from one to five years 14,710 15,048 96,325 95,760 Due from five to ten years 8,279 8,471 54,895 54,526 Due after ten years 20,932 21,041 14,898 14,637 $ 68,473 $ 69,079 $ 184,328 $ 183,135
Securities in Continuous Unrealized Loss Position	Securities with unrealized losses at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total March 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 60,493 $ (890 ) $ 3,039 $ (10 ) $ 63,532 $ (900 ) U.S. Agency MBS and CMOs 10,114 (157 ) --- --- 10,114 (157 ) Tax-exempt state and municipal bonds 37,802 (412 ) 397 (8 ) 38,199 (420 ) Taxable state and municipal bonds 19,139 (347 ) --- --- 19,139 (347 ) Corporate bonds and other debt securities 5,628 (28 ) 500 (4 ) 6,128 (32 ) Other equity securities 1,470 (30 ) --- --- 1,470 (30 ) Total temporarily impaired $ 134,646 $ (1,864 ) $ 3,936 $ (22 ) $ 138,582 $ (1,886 ) 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 )

LOANS (Tables)

LOANS (Tables)	3 Months Ended
	Mar. 31, 2017
LOANS [Abstract]
Portfolio Loans	Portfolio loans were as follows (dollars in thousands): March 31, 2017 December 31, 2016 Commercial and industrial $ 453,311 $ 449,342 Commercial real estate: Residential developed 10,188 11,970 Unsecured to residential developers 4,785 4,734 Vacant and unimproved 44,950 40,286 Commercial development 499 378 Residential improved 73,064 75,348 Commercial improved 277,898 289,478 Manufacturing and industrial 97,424 95,787 Total commercial real estate 508,808 517,981 Consumer Residential mortgage 212,949 217,614 Unsecured 343 396 Home equity 83,666 88,113 Other secured 7,051 7,366 Total consumer 304,009 313,489 Total loans 1,266,128 1,280,812 Allowance for loan losses (16,696 ) (16,962 ) $ 1,249,432 $ 1,263,850
Activity in Allowance for Loan Losses by Portfolio Segment	Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended March 31, 2017 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 Charge-offs --- --- (26 ) --- (26 ) Recoveries 23 162 75 --- 260 Provision for loan losses 101 (267 ) (329 ) (5 ) (500 ) Ending Balance $ 6,469 $ 6,598 $ 3,591 $ 38 $ 16,696 Three months ended March 31, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (76 ) --- (76 ) Recoveries 49 121 54 --- 224 Provision for loan losses 70 (129 ) (40 ) (1 ) (100 ) Ending Balance $ 4,945 $ 8,449 $ 3,699 $ 36 $ 17,129
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method	The following table presents 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): March 31, 2017 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 642 $ 304 $ 702 $ --- $ 1,648 Collectively evaluated for impairment 5,827 6,294 2,889 38 15,048 Total ending allowance balance $ 6,469 $ 6,598 $ 3,591 $ 38 $ 16,696 Loans: Individually reviewed for impairment $ 7,445 $ 9,931 $ 11,400 $ --- $ 28,776 Collectively evaluated for impairment 445,866 498,877 292,609 --- 1,237,352 Total ending loans balance $ 453,311 $ 508,808 $ 304,009 $ --- $ 1,266,128 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
Loans Individually Evaluated for Impairment by Class of Loans	The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2017 (dollars in thousands): March 31, 2017 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 3,921 $ 3,921 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development --- --- --- Residential improved 27 27 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 27 27 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 3,948 $ 3,948 $ --- With an allowance recorded: Commercial and industrial $ 3,524 $ 3,524 $ 642 Commercial real estate: Residential developed 185 185 3 Unsecured to residential developers --- --- --- Vacant and unimproved 375 375 10 Commercial development 189 189 6 Residential improved 2,815 2,815 149 Commercial improved 6,116 6,116 132 Manufacturing and industrial 224 224 4 9,904 9,904 304 Consumer: Residential mortgage 7,467 7,467 460 Unsecured --- --- --- Home equity 3,933 3,933 242 Other secured --- --- --- 11,400 11,400 702 Total with an allowance recorded $ 24,828 $ 24,828 $ 1,648 Total $ 28,776 $ 28,776 $ 1,648 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
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 three month periods ended March 31, 2017 and 2016 (dollars in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Average of impaired loans during the period: Commercial and industrial $ 6,843 $ 8,265 Commercial real estate: Residential developed 185 --- Unsecured to residential developers --- --- Vacant and unimproved 379 446 Commercial development 189 192 Residential improved 4,086 5,543 Commercial improved 6,158 9,537 Manufacturing and industrial 225 239 Consumer 11,495 13,140 Interest income recognized during impairment: Commercial and industrial 278 298 Commercial real estate 126 201 Consumer 109 122 Cash-basis interest income recognized Commercial and industrial 265 288 Commercial real estate 123 200 Consumer 107 123
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 March 31, 2017 and December 31, 2016: March 31, 2017 Nonaccrual Over 90 days Accruing Commercial and industrial $ 127 $ --- Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 79 --- Commercial improved 124 --- Manufacturing and industrial --- --- 252 --- Consumer: Residential mortgage 2 --- Unsecured 13 --- Home equity 7 --- Other secured --- --- 22 --- Total $ 401 $ --- 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 $ ---
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 March 31, 2017 and December 31, 2016 by class of loans (dollars in thousands): March 31, 2017 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 30 $ 121 $ 151 $ 453,160 $ 453,311 Commercial real estate: Residential developed --- --- --- 10,188 10,188 Unsecured to residential developers --- --- --- 4,785 4,785 Vacant and unimproved --- --- --- 44,950 44,950 Commercial development 189 49 238 261 499 Residential improved 92 79 171 72,893 73,064 Commercial improved 124 --- 124 277,774 277,898 Manufacturing and industrial --- --- --- 97,424 97,424 405 128 533 508,275 508,808 Consumer: Residential mortgage 204 --- 204 212,745 212,949 Unsecured 12 --- 12 331 343 Home equity --- --- 83,666 83,666 Other secured 15 --- 15 7,036 7,051 231 --- 231 303,778 304,009 Total $ 666 $ 249 $ 915 $ 1,265,213 $ 1,266,128 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
Troubled Debt Restructurings	The following table presents information regarding troubled debt restructurings as of March 31, 2017 and December 31, 2016 (dollars in thousands): March 31, 2017 December 31, 2016 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 24 $ 7,444 25 $ 5,994 Commercial real estate 43 9,931 49 11,933 Consumer 111 11,782 116 12,059 178 $ 29,157 190 $ 29,986 The following table presents information related to accruing troubled debt restructurings as of March 31, 2017 and December 31, 2016. The table presents the amount of accruing troubled debt restructurings 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 each period reported (dollars in thousands): March 31, 2017 December 31, 2016 Accruing TDR - nonaccrual at restructuring $ --- $ --- Accruing TDR - accruing at restructuring 23,215 25,665 Accruing TDR - upgraded to accruing after six consecutive payments 5,800 4,172 $ 29,015 $ 29,837 The following tables present information regarding troubled debt restructurings executed during the three month periods ended March 31, 2017 and 2016 (dollars in thousands): Three Months Ended March 31, Three Months Ended March 31, # of Loans Pre-TDR Balance Writedown Upon TDR # of Loans Pre-TDR Balance Writedown Upon TDR Commercial and industrial --- $ --- $ --- --- $ --- $ --- Commercial real estate --- --- --- --- --- --- Consumer --- --- --- 4 238 --- --- --- $ --- 4 $ 238 $ ---
Risk Grade Category of Loans by Class of Loans	As of March 31, 2017 and December 31, 2016, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): March 31, 2017 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 24,690 $ 111,044 $ 297,713 $ 12,063 $ 7,674 $ 127 $ --- $ 453,311 Commercial real estate: Residential developed --- --- 1,703 7,640 845 --- --- --- 10,188 Unsecured to residential developers --- --- --- 4,785 --- --- --- --- 4,785 Vacant and unimproved --- --- 21,257 20,157 3,536 --- --- --- 44,950 Commercial development --- --- 121 139 --- 190 49 --- 499 Residential improved --- --- 6,132 62,688 2,572 1,593 79 --- 73,064 Commercial improved --- 3,656 58,960 206,827 7,233 1,098 124 --- 277,898 Manufacturing & industrial --- 1,587 37,797 55,153 2,308 579 --- --- 97,424 $ --- $ 29,933 $ 237,014 $ 655,102 $ 28,557 $ 11,134 $ 379 $ --- $ 962,119 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
Commercial Loans Classified as Substandard or Worse	Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): March 31, 2017 December 31, 2016 Not classified as impaired $ 2,434 $ 2,608 Classified as impaired 9,079 7,498 Total commercial loans classified substandard or worse $ 11,513 $ 10,106
Recorded Investment in Consumer Loans Based on Payment Activity	The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): March 31, 2017 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 212,949 $ 343 $ 83,666 $ 7,051 Nonperforming --- --- --- --- Total $ 212,949 $ 343 $ 83,666 $ 7,051 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

OTHER REAL ESTATE OWNED (Tables

OTHER REAL ESTATE OWNED (Tables)	3 Months Ended
	Mar. 31, 2017
OTHER REAL ESTATE OWNED [Abstract]
Period-End Other Real Estate Owned	Other real estate owned was as follows (dollars in thousands): Three Months Ended March 31, 2017 Year Ended December 31, 2016 Three Months Ended March 31, 2016 Beginning balance $ 22,864 $ 28,377 $ 28,377 Additions, transfers from loans 56 339 102 Proceeds from sales of other real estate owned (320 ) (5,339 ) (1,475 ) Valuation allowance reversal upon sale (250 ) (1,158 ) (251 ) Gain on sales of other real estate owned 149 645 92 22,499 22,864 26,845 Less: valuation allowance (10,425 ) (10,611 ) (10,683 ) Ending balance $ 12,074 $ 12,253 $ 16,162
Activity in Valuation Allowance	Activity in the valuation allowance was as follows (dollars in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Beginning balance $ 10,611 $ 10,805 Additions charged to expense 64 129 Reversals upon sale (250 ) (251 ) Ending balance $ 10,425 $ 10,683

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2017
FAIR VALUE [Abstract]
Assets Measured at Fair Value on Recurring Basis	Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2017 U.S. Treasury and federal agency securities $ 85,678 $ --- $ 85,678 $ --- U.S. Agency MBS and CMOs 11,165 --- 11,165 --- Tax-exempt state and municipal bonds 39,809 --- 39,809 --- Taxable state and municipal bonds 34,497 --- 34,497 --- Corporate bonds and other debt securities 11,986 --- 11,986 --- Other equity securities 1,470 --- 1,470 --- Loans held for sale 2,767 --- 2,767 --- Interest rate swaps 383 --- --- 383 Interest rate swaps (383 ) --- --- (383 ) 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 )
Assets Measured at Fair Value on Non-Recurring Basis	Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2017 Impaired loans $ 3,282 $ --- $ --- $ 3,282 Other real estate owned 9,400 --- --- 9,400 December 31, 2016 Impaired loans $ 3,436 $ --- $ --- $ 3,436 Other real estate owned 9,542 --- --- 9,542
Quantitative Information about Level 3 Fair Value Measurements Measured on Non-Recurring Basis	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis was as follows at period end (dollars in thousands): Asset Fair Value Valuation Technique Unobservable Inputs Range (%) March 31, 2017 Impaired Loans $ 3,282 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 35.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 9,400 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 42.0 Income approach Capitalization rate 9.5 to 11.5 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 to35.0 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
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 March 31, 2017 and December 31, 2016 (dollars in thousands): Financial assets Level in Fair Value Hierarchy March 31, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and due from banks Level 1 $ 30,631 $ 30,631 $ 27,690 $ 27,690 Cash equivalents Level 2 83,118 83,118 62,129 62,129 Securities held to maturity Level 3 68,473 69,079 69,378 69,849 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,245,996 1,234,716 1,260,414 1,247,842 Bank owned life insurance Level 3 39,524 39,524 39,274 39,274 Accrued interest receivable Level 2 4,204 4,204 4,092 4,092 Financial liabilities Deposits Level 2 (1,433,146 ) (1,433,068 ) (1,448,724 ) (1,448,692 ) Other borrowed funds Level 2 (102,785 ) (102,595 ) (84,173 ) (84,051 ) Long-term debt Level 2 (41,238 ) (36,277 ) (41,238 ) (36,112 ) Accrued interest payable Level 2 (275 ) (275 ) (282 ) (282 ) Off-balance sheet credit-related items Loan commitments --- --- --- ---

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2017
DEPOSITS [Abstract]
Summary of Deposits	Deposits are summarized as follows (in thousands): March 31, 2017 December 31, 2016 Noninterest-bearing demand $ 466,415 $ 501,478 Interest bearing demand 342,812 340,715 Savings and money market accounts 548,761 532,853 Certificates of deposit 75,158 73,678 $ 1,433,146 $ 1,448,724

OTHER BORROWED FUNDS (Tables)

OTHER BORROWED FUNDS (Tables)	3 Months Ended
	Mar. 31, 2017
OTHER BORROWED FUNDS [Abstract]
Advances from Federal Home Loan Bank	At period-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 March 31, 2017 Single maturity fixed rate advances $ 100,000 April 2017 to April 2021 1.41 % Amortizable mortgage advances 2,785 March 2018 to July 2018 3.75 % $ 102,785 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
Scheduled Repayments of FHLB Advances	Scheduled repayments of FHLB advances as of March 31, 2017 were as follows (in thousands): 2017 $ 20,667 2018 52,118 2019 10,000 2020 10,000 2021 10,000 Thereafter --- $ 102,785

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
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 for the three month periods ended March 31, 2017 and 2016 are as follows (dollars in thousands, except per share data): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Net income available to common shares $ 4,460 $ 3,495 Weighted average shares outstanding, including participating stock awards - 33,941,010 33,925,113 Dilutive potential common shares: Stock options 7,574 --- Stock warrants --- --- Weighted average shares outstanding - 33,948,584 33,925,113 Basic earnings per common share $ 0.13 $ 0.10 Diluted earnings per common share $ 0.13 $ 0.10

FEDERAL INCOME TAXES (Tables)

FEDERAL INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2017
FEDERAL INCOME TAXES [Abstract]
Income Tax Expense	Income tax expense was as follows (dollars in thousands): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Current $ 1,804 $ 1,468 Deferred 162 (68 ) $ 1,966 $ 1,400
Difference between Financial Statement Tax Expense 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): Three Months Ended March 31, 2017 Three Months Ended March 31, 2016 Statutory rate 35 % 35 % Statutory rate applied to income before taxes $ 2,249 $ 1,713 Deduct Tax-exempt interest income (183 ) (148 ) Bank-owned life insurance (83 ) (155 ) Other, net (17 ) (10 ) $ 1,966 $ 1,400
Deferred Tax Assets and Liabilities	The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): March 31, 2017 December 31, 2016 Deferred tax assets Allowance for loan losses $ 5,844 $ 5,937 Nonaccrual loan interest 642 718 Valuation allowance on other real estate owned 3,649 3,714 Unrealized loss on securities available for sale 428 799 Other 216 176 Gross deferred tax assets 10,779 11,344 Valuation allowance --- --- Total net deferred tax assets 10,779 11,344 Deferred tax liabilities Depreciation (1,655 ) (1,705 ) Prepaid expenses (399 ) (399 ) Unrealized gain on securities available for sale --- --- Other (395 ) (377 ) Gross deferred tax liabilities (2,449 ) (2,481 ) Net deferred tax asset $ 8,330 $ 8,863

COMMITMENTS AND OFF BALANCE-S30

COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	3 Months Ended
	Mar. 31, 2017
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 period-end (dollars in thousands): March 31, 2017 December 31, 2016 Commitments to make loans $ 95,653 $ 90,293 Letters of credit 13,598 13,823 Unused lines of credit 446,346 437,435

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
SHAREHOLDERS' EQUITY [Abstract]
Actual Capital Levels and Minimum Required Levels	At March 31, 2017 and December 31, 2016, actual capital levels and minimum required levels were (dollars in thousands): 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 March 31, 2017 CET1 capital (to risk weighted assets) Consolidated $ 166,880 11.3 % $ 66,557 4.5 % $ 85,045 5.8 % N/A N/A Bank 201,129 13.6 66,552 4.5 85,038 5.8 $ 96,130 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 206,880 14.0 88,742 6.0 107,230 7.3 N/A N/A Bank 201,129 13.6 88,736 6.0 107,222 7.3 118,314 8.0 Total capital (to risk weighted assets) Consolidated 223,575 15.1 118,323 8.0 136,811 9.3 N/A N/A Bank 217,825 14.7 118,314 8.0 136,801 9.3 147,893 10.0 Tier 1 capital (to average assets) Consolidated 206,880 12.1 68,329 4.0 N/A N/A N/A N/A Bank 201,129 11.8 68,264 4.0 N/A N/A 85,330 5.0 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

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Mar. 31, 2017USD ($)BranchGradeInterestRateSwapshares	Dec. 31, 2016USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Number of full service branch offices | Branch	26
Derivatives [Abstract]
Stock awards vested (in shares) | shares	0
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
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 | Grade	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 | Grade	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 derivative instruments held | InterestRateSwap	2
Notional amount of agreements	$ 43,500,000	$ 48,100,000
Derivative asset fair value	383,000	494,000
Derivative liability fair value	$ 383,000	$ 494,000

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Available for Sale [Abstract]
Amortized cost	$ 185,828		$ 186,717
Gross unrealized gains	586		353
Gross unrealized losses	(1,809)		(2,637)
Fair value	184,605		184,433
Proceeds from sale of available-for-sale securities	3,440	$ 9,418
Gain on sale of securities	3	89
Reclassification adjustment for securities gain recognized in earnings, net of tax	2	$ 58
Held to Maturity [Abstract]
Amortized cost	68,473		69,378
Fair value	69,079		69,849
U.S. Treasury and Federal Agency Securities [Member]
Available for Sale [Abstract]
Amortized cost	86,517		85,582
Gross unrealized gains	61		49
Gross unrealized losses	(900)		(1,281)
Fair value	85,678		84,350
U.S. Agency MBS and CMOs [Member]
Available for Sale [Abstract]
Amortized cost	11,306		12,037
Gross unrealized gains	16		11
Gross unrealized losses	(157)		(231)
Fair value	11,165		11,817
Tax-Exempt State and Municipal Bonds [Member]
Available for Sale [Abstract]
Amortized cost	39,746		39,578
Gross unrealized gains	411		212
Gross unrealized losses	(348)		(603)
Fair value	39,809		39,187
Taxable State and Municipal Bonds [Member]
Available for Sale [Abstract]
Amortized cost	34,757		34,255
Gross unrealized gains	82		65
Gross unrealized losses	(342)		(437)
Fair value	34,497		33,883
Corporate Bonds and Other Debt Securities [Member]
Available for Sale [Abstract]
Amortized cost	12,002		13,765
Gross unrealized gains	16		16
Gross unrealized losses	(32)		(55)
Fair value	11,986		13,726
Other Equity Securities [Member]
Available for Sale [Abstract]
Amortized cost	1,500		1,500
Gross unrealized gains	0		0
Gross unrealized losses	(30)		(30)
Fair value	1,470		1,470
Tax-Exempt State and Municipal Bonds [Member]
Held to Maturity [Abstract]
Amortized cost	68,473		69,378
Gross unrealized gains	683		573
Gross unrealized losses	(77)		(102)
Fair value	$ 69,079		$ 69,849

SECURITIES, Contractual Maturit

SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Held-to-Maturity Securities, Amortized Cost [Abstract]
Due in one year or less	$ 24,552
Due from one to five years	14,710
Due from five to ten years	8,279
Due after ten years	20,932
Amortized cost	68,473	$ 69,378
Held-to-Maturity Securities, Fair Value [Abstract]
Due in one year or less	24,519
Due from one to five years	15,048
Due from five to ten years	8,471
Due after ten years	21,041
Fair value	69,079	$ 69,849
Available-for-Sale Securities, Amortized Cost [Abstract]
Due in one year or less	18,210
Due from one to five years	96,325
Due from five to ten years	54,895
Due after ten years	14,898
Amortized cost	184,328
Available-for-Sale Securities, Fair Value [Abstract]
Due in one year or less	18,212
Due from one to five years	95,760
Due from five to ten years	54,526
Due after ten years	14,637
Fair value	$ 183,135

SECURITIES, Continuous Unrealiz

SECURITIES, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	$ 134,646	$ 149,187
12 months or more	3,936	5,225
Total	138,582	154,412
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(1,864)	(2,717)
12 months or more	(22)	(22)
Total	(1,886)	(2,739)
U.S. Treasury and Federal Agency Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	60,493	59,129
12 months or more	3,039	3,053
Total	63,532	62,182
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(890)	(1,271)
12 months or more	(10)	(10)
Total	(900)	(1,281)
U.S. Agency MBS and CMOs [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	10,114	10,702
12 months or more	0	0
Total	10,114	10,702
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(157)	(231)
12 months or more	0	0
Total	(157)	(231)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	37,802	49,508
12 months or more	397	1,672
Total	38,199	51,180
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(412)	(698)
12 months or more	(8)	(7)
Total	(420)	(705)
Taxable State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	19,139	22,633
12 months or more	0	0
Total	19,139	22,633
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(347)	(437)
12 months or more	0	0
Total	(347)	(437)
Corporate Bonds and Other Debt Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	5,628	5,745
12 months or more	500	500
Total	6,128	6,245
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(28)	(50)
12 months or more	(4)	(5)
Total	(32)	(55)
Other Equity Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	1,470	1,470
12 months or more	0	0
Total	1,470	1,470
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(30)	(30)
12 months or more	0	0
Total	$ (30)	$ (30)

SECURITIES, Other-Than-Temporar

SECURITIES, Other-Than-Temporary-Impairment (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
SECURITIES [Abstract]
Securities pledged as security for public deposits, letters of credit and for other purposes required or permitted by law	$ 2	$ 2

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Portfolio loans [Abstract]
Total loans	$ 1,266,128	$ 1,280,812
Allowance for loan losses	(16,696)	(16,962)	$ (17,129)	$ (17,081)
Net loans	1,249,432	1,263,850
Commercial and Industrial [Member]
Portfolio loans [Abstract]
Total loans	453,311	449,342
Allowance for loan losses	(6,469)	(6,345)	(4,945)	(4,826)
Commercial Real Estate [Member]
Portfolio loans [Abstract]
Total loans	508,808	517,981
Allowance for loan losses	(6,598)	(6,703)	(8,449)	(8,457)
Commercial Real Estate [Member] | Residential Developed [Member]
Portfolio loans [Abstract]
Total loans	10,188	11,970
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
Portfolio loans [Abstract]
Total loans	4,785	4,734
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Portfolio loans [Abstract]
Total loans	44,950	40,286
Commercial Real Estate [Member] | Commercial Development [Member]
Portfolio loans [Abstract]
Total loans	499	378
Commercial Real Estate [Member] | Residential Improved [Member]
Portfolio loans [Abstract]
Total loans	73,064	75,348
Commercial Real Estate [Member] | Commercial Improved [Member]
Portfolio loans [Abstract]
Total loans	277,898	289,478
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Portfolio loans [Abstract]
Total loans	97,424	95,787
Consumer [Member]
Portfolio loans [Abstract]
Total loans	304,009	313,489
Allowance for loan losses	(3,591)	(3,871)	$ (3,699)	$ (3,761)
Consumer [Member] | Residential Mortgage [Member]
Portfolio loans [Abstract]
Total loans	212,949	217,614
Consumer [Member] | Unsecured [Member]
Portfolio loans [Abstract]
Total loans	343	396
Consumer [Member] | Home Equity [Member]
Portfolio loans [Abstract]
Total loans	83,666	88,113
Consumer [Member] | Other Secured [Member]
Portfolio loans [Abstract]
Total loans	$ 7,051	$ 7,366

LOANS, Allowance for Loans Loss

LOANS, Allowance for Loans Losses by Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	$ 16,962	$ 17,081
Charge-offs	(26)	(76)
Recoveries	260	224
Provision for loan losses	(500)	(100)
Ending balance	16,696	17,129
Commercial and Industrial [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	6,345	4,826
Charge-offs	0	0
Recoveries	23	49
Provision for loan losses	101	70
Ending balance	6,469	4,945
Commercial Real Estate [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	6,703	8,457
Charge-offs	0	0
Recoveries	162	121
Provision for loan losses	(267)	(129)
Ending balance	6,598	8,449
Consumer [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	3,871	3,761
Charge-offs	(26)	(76)
Recoveries	75	54
Provision for loan losses	(329)	(40)
Ending balance	3,591	3,699
Unallocated [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance	43	37
Charge-offs	0	0
Recoveries	0	0
Provision for loan losses	(5)	(1)
Ending balance	$ 38	$ 36

LOANS, Allowance for Loans Lo39

LOANS, Allowance for Loans Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	$ 1,648	$ 1,696
Collectively evaluated for impairment	15,048	15,266
Total ending allowance balance	16,696	16,962	$ 17,129	$ 17,081
Loans [Abstract]
Individually reviewed for impairment	28,776	29,654
Collectively evaluated for impairment	1,237,352	1,251,158
Total ending loans balance	1,266,128	1,280,812
Commercial and Industrial [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	642	605
Collectively evaluated for impairment	5,827	5,740
Total ending allowance balance	6,469	6,345	4,945	4,826
Loans [Abstract]
Individually reviewed for impairment	7,445	5,994
Collectively evaluated for impairment	445,866	443,348
Total ending loans balance	453,311	449,342
Commercial Real Estate [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	304	368
Collectively evaluated for impairment	6,294	6,335
Total ending allowance balance	6,598	6,703	8,449	8,457
Loans [Abstract]
Individually reviewed for impairment	9,931	11,934
Collectively evaluated for impairment	498,877	506,047
Total ending loans balance	508,808	517,981
Consumer [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	702	723
Collectively evaluated for impairment	2,889	3,148
Total ending allowance balance	3,591	3,871	3,699	3,761
Loans [Abstract]
Individually reviewed for impairment	11,400	11,726
Collectively evaluated for impairment	292,609	301,763
Total ending loans balance	304,009	313,489
Unallocated [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	0	0
Collectively evaluated for impairment	38	43
Total ending allowance balance	38	43	$ 36	$ 37
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	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
With no related allowance recorded [Abstract]
Unpaid principal balance	$ 3,948		$ 2,675
Recorded investment	3,948		2,675
With related allowance recorded [Abstract]
Unpaid principal balance	24,828		26,979
Recorded investment	24,828		26,979
Allowance allocated	1,648		1,696
Total [Abstract]
Unpaid principal balance	28,776		29,654
Recorded investment	28,776		29,654
Allowance allocated	1,648		1,696
Commercial and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	3,921		2,298
Recorded investment	3,921		2,298
With related allowance recorded [Abstract]
Unpaid principal balance	3,524		3,696
Recorded investment	3,524		3,696
Allowance allocated	642		605
Total [Abstract]
Allowance allocated	642		605
Impaired loans [Abstract]
Average of impaired loans	6,843	$ 8,265
Interest income recognized during impairment	278	298
Cash-basis interest income recognized	265	288
Commercial Real Estate [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	27		377
Recorded investment	27		377
With related allowance recorded [Abstract]
Unpaid principal balance	9,904		11,557
Recorded investment	9,904		11,557
Allowance allocated	304		368
Total [Abstract]
Allowance allocated	304		368
Impaired loans [Abstract]
Interest income recognized during impairment	126	201
Cash-basis interest income recognized	123	200
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	185		187
Recorded investment	185		187
Allowance allocated	3		4
Total [Abstract]
Allowance allocated	3		4
Impaired loans [Abstract]
Average of impaired loans	185	0
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
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		0
Recorded investment	0		0
With related allowance recorded [Abstract]
Unpaid principal balance	375		387
Recorded investment	375		387
Allowance allocated	10		9
Total [Abstract]
Allowance allocated	10		9
Impaired loans [Abstract]
Average of impaired loans	379	446
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		189
Recorded investment	189		189
Allowance allocated	6		6
Total [Abstract]
Allowance allocated	6		6
Impaired loans [Abstract]
Average of impaired loans	189	192
Commercial Real Estate [Member] | Residential Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	27		27
Recorded investment	27		27
With related allowance recorded [Abstract]
Unpaid principal balance	2,815		4,687
Recorded investment	2,815		4,687
Allowance allocated	149		216
Total [Abstract]
Allowance allocated	149		216
Impaired loans [Abstract]
Average of impaired loans	4,086	5,543
Commercial Real Estate [Member] | Commercial Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0		350
Recorded investment	0		350
With related allowance recorded [Abstract]
Unpaid principal balance	6,116		5,879
Recorded investment	6,116		5,879
Allowance allocated	132		128
Total [Abstract]
Allowance allocated	132		128
Impaired loans [Abstract]
Average of impaired loans	6,158	9,537
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	224		228
Recorded investment	224		228
Allowance allocated	4		5
Total [Abstract]
Allowance allocated	4		5
Impaired loans [Abstract]
Average of impaired loans	225	239
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	11,400		11,726
Recorded investment	11,400		11,726
Allowance allocated	702		723
Total [Abstract]
Allowance allocated	702		723
Impaired loans [Abstract]
Average of impaired loans	11,495	13,140
Interest income recognized during impairment	109	122
Cash-basis interest income recognized	107	$ 123
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	7,467		7,523
Recorded investment	7,467		7,523
Allowance allocated	460		464
Total [Abstract]
Allowance allocated	460		464
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	3,933		4,203
Recorded investment	3,933		4,203
Allowance allocated	242		259
Total [Abstract]
Allowance allocated	242		259
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) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Payment	Dec. 31, 2016USD ($)
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	$ 401	$ 300
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	915	1,447
Loans Not Past Due	1,265,213	1,279,365
Total ending loans balance	1,266,128	1,280,812
Specific reserves allocated to customers with modified term loans in troubled debt restructurings	$ 1,648	1,696
Number of consecutive payment before nonaccrual restructured loan is upgraded | Payment	6
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	$ 666	1,309
Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	249	138
Commercial and Industrial [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	127	36
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	151	453
Loans Not Past Due	453,160	448,889
Total ending loans balance	453,311	449,342
Commercial and Industrial [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	30	425
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	121	28
Commercial Real Estate [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	252	183
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	533	606
Loans Not Past Due	508,275	517,375
Total ending loans balance	508,808	517,981
Commercial Real Estate [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	405	552
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	128	54
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	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	10,188	11,970
Total ending loans balance	10,188	11,970
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	4,785	4,734
Total ending loans balance	4,785	4,734
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	44,950	40,286
Total ending loans balance	44,950	40,286
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	49
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	238	49
Loans Not Past Due	261	329
Total ending loans balance	499	378
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	189	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	49
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	79	6
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	171	79
Loans Not Past Due	72,893	75,269
Total ending loans balance	73,064	75,348
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	92	74
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	79	5
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	124	128
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	124	478
Loans Not Past Due	277,774	289,000
Total ending loans balance	277,898	289,478
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	124	478
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	97,424	95,787
Total ending loans balance	97,424	95,787
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	22	81
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	231	388
Loans Not Past Due	303,778	313,101
Total ending loans balance	304,009	313,489
Consumer [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	231	332
Consumer [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	56
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	2	58
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	204	120
Loans Not Past Due	212,745	217,494
Total ending loans balance	212,949	217,614
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	204	64
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	0	56
Consumer [Member] | Unsecured [Member]
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	13	16
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	12	0
Loans Not Past Due	331	396
Total ending loans balance	343	396
Consumer [Member] | Unsecured [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	12	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	7
Over 90 days Accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total Past Due	0	187
Loans Not Past Due	83,666	87,926
Total ending loans balance	83,666	88,113
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	0	187
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	0
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	15	81
Loans Not Past Due	7,036	7,285
Total ending loans balance	7,051	7,366
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	15	81
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 Restructuring (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)NoteLoan	Mar. 31, 2016USD ($)Loan	Dec. 31, 2016USD ($)Loan
Troubled debt restructurings [Abstract]
Number of Loans | Loan	178		190
Outstanding Recorded Balance	$ 29,157		$ 29,986
Accruing troubled debt restructurings [Abstract]
Accruing TDR - nonaccrual at restructuring	0		0
Accruing TDR - accruing at restructuring	23,215		25,665
Accruing TDR - upgraded to accruing after six consecutive payments	5,800		4,172
Total	$ 29,015		$ 29,837
Troubled debt restructurings executed during current period [Abstract]
Number of Loans | Loan	0	4
Pre-TDR balance	$ 0	$ 238
Writedown upon TDR	$ 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	24		25
Outstanding Recorded Balance	$ 7,444		$ 5,994
Troubled debt restructurings executed during current period [Abstract]
Number of Loans | Loan	0	0
Pre-TDR balance	$ 0	$ 0
Writedown upon TDR	$ 0	$ 0
Commercial Real Estate [Member]
Troubled debt restructurings [Abstract]
Number of Loans | Loan	43		49
Outstanding Recorded Balance	$ 9,931		$ 11,933
Troubled debt restructurings executed during current period [Abstract]
Number of Loans | Loan	0	0
Pre-TDR balance	$ 0	$ 0
Writedown upon TDR	$ 0	$ 0
Consumer [Member]
Troubled debt restructurings [Abstract]
Number of Loans | Loan	111		116
Outstanding Recorded Balance	$ 11,782		$ 12,059
Troubled debt restructurings executed during current period [Abstract]
Number of Loans | Loan	0	4
Pre-TDR balance	$ 0	$ 238
Writedown upon TDR	$ 0	$ 0

LOANS, Credit Quality Indicator

LOANS, Credit Quality Indicators (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Grade	Dec. 31, 2016USD ($)
Risk grade category of commercial loans by class of loans [Abstract]
Number point grading system used for loan quality | Grade	8
Total loans	$ 1,266,128	$ 1,280,812
Commercial Loans [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 962,119	967,323
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	0
Commercial Loans [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	29,933	31,717
Commercial Loans [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	237,014	250,321
Commercial Loans [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	655,102	641,339
Commercial Loans [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	28,557	33,840
Commercial Loans [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	11,134	9,887
Commercial Loans [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	379	219
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	453,311	449,342
Commercial and Industrial [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial and Industrial [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	24,690	27,619
Commercial and Industrial [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	111,044	118,243
Commercial and Industrial [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	297,713	282,527
Commercial and Industrial [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	12,063	14,610
Commercial and Industrial [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	7,674	6,307
Commercial and Industrial [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	127	36
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	508,808	517,981
Commercial Real Estate [Member] | Residential Developed [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	10,188	11,970
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	1,703	2,328
Commercial Real Estate [Member] | Residential Developed [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	7,640	8,786
Commercial Real Estate [Member] | Residential Developed [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	845	856
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	0
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	4,785	4,734
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	4,785	4,734
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	44,950	40,286
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	21,257	17,672
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	20,157	19,028
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	3,536	3,586
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	499	378
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	121	0
Commercial Real Estate [Member] | Commercial Development [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	139	140
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	190	189
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	73,064	75,348
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	6,132	7,100
Commercial Real Estate [Member] | Residential Improved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	62,688	63,957
Commercial Real Estate [Member] | Residential Improved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,572	2,628
Commercial Real Estate [Member] | Residential Improved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,593	1,657
Commercial Real Estate [Member] | Residential Improved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	79	6
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	277,898	289,478
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	3,656	2,433
Commercial Real Estate [Member] | Commercial Improved [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	58,960	66,259
Commercial Real Estate [Member] | Commercial Improved [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	206,827	210,449
Commercial Real Estate [Member] | Commercial Improved [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	7,233	9,084
Commercial Real Estate [Member] | Commercial Improved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,098	1,125
Commercial Real Estate [Member] | Commercial Improved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	124	128
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 & Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	97,424	95,787
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	1,587	1,665
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	37,797	38,719
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	55,153	51,718
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,308	3,076
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	579	609
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing & 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	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Classified as impaired	$ 28,776	$ 29,654
Total ending loans balance	1,266,128	1,280,812
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total ending loans balance	962,119	967,323
Commercial Loans [Member] | Substandard or Worse [Member]
Financing Receivable, Recorded Investment [Line Items]
Not classified as impaired	2,434	2,608
Classified as impaired	9,079	7,498
Total ending loans balance	$ 11,513	$ 10,106

LOANS, Recorded Investment in C

LOANS, Recorded Investment in Consumer Loans Based on Payment Activity (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1,266,128	$ 1,280,812
Consumer Loan [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	212,949	217,614
Consumer Loan [Member] | Residential Mortgage [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	212,949	217,558
Consumer Loan [Member] | Residential Mortgage [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	56
Consumer Loan [Member] | Consumer Unsecured [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	343	396
Consumer Loan [Member] | Consumer Unsecured [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	343	396
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	83,666	88,113
Consumer Loan [Member] | Home Equity [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	83,666	88,113
Consumer Loan [Member] | Home Equity [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	0	0
Consumer Loan [Member] | Consumer Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,051	7,366
Consumer Loan [Member] | Consumer Other [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,051	7,366
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 ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Other real estate owned [Roll Forward]
Beginning balance	$ 22,864	$ 28,377	$ 28,377
Additions, transfers from loans	56	102	339
Proceeds from sales of other real estate owned	(320)	(1,475)	(5,339)
Valuation allowance reversal upon sale	(250)	(251)	(1,158)
Gain on sales of other real estate owned	149	92	645
Ending balance, gross	22,499	26,845	22,864
Less: valuation allowance	(10,425)	(10,683)	(10,611)
Ending balance	12,074	16,162	12,253
Valuation Allowance, Real Estate Owned [Member]
Activity in valuation allowance [Roll Forward]
Beginning balance	10,611	10,805	10,805
Additions charged to expense	64	129
Reversals upon sale	(250)	(251)
Ending balance	$ 10,425	$ 10,683	$ 10,611

FAIR VALUE, Assets Measured at

FAIR VALUE, Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	$ 184,605	$ 184,433
U.S. Treasury and Federal Agency Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	85,678	84,350
U.S. Agency MBS and CMOs [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,165	11,817
Tax-Exempt State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	39,809	39,187
Taxable State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	34,497	33,883
Corporate Bonds and Other Debt Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,986	13,726
Other Equity Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,470	1,470
Recurring Basis [Member]
Asset measured at fair value on recurring basis [Abstract]
Loans held for sale	2,767	2,181
Interest rate swaps	383	494
Interest rate swaps	(383)	(494)
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Loans held for sale	2,767	2,181
Interest rate swaps	0	0
Interest rate swaps	0	0
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Loans held for sale	0	0
Interest rate swaps	383	494
Interest rate swaps	(383)	(494)
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	85,678	84,350
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	85,678	84,350
Recurring Basis [Member] | U.S. Treasury and Federal Agency Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,165	11,817
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,165	11,817
Recurring Basis [Member] | U.S. Agency MBS and CMOs [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	39,809	39,187
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	39,809	39,187
Recurring Basis [Member] | Tax-Exempt State and Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	34,497	33,883
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	34,497	33,883
Recurring Basis [Member] | Taxable State and Municipal Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,986	13,726
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	11,986	13,726
Recurring Basis [Member] | Corporate Bonds and Other Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	0	0
Recurring Basis [Member] | Other Equity Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,470	1,470
Recurring Basis [Member] | Other Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Asset 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 measured at fair value on recurring basis [Abstract]
Available-for-sale securities	1,470	1,470
Recurring Basis [Member] | Other Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Asset 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	3,282	3,436
Other real estate owned	9,400	9,542
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	3,282	3,436
Other real estate owned	$ 9,400	$ 9,542

FAIR VALUE, Quantitative Inform

FAIR VALUE, Quantitative Information about Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Impaired Loans [Member] | Sales Comparison Approach [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset fair value	$ 3,282	$ 3,436
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%	35.00%
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	11.00%	11.50%
Other Real Estate Owned [Member] | Sales Comparison Approach [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset fair value	$ 9,400	$ 9,542
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%	2.00%
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	42.00%	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%	11.50%

FAIR VALUE, Carrying Amounts an

FAIR VALUE, Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial assets [Abstract]
Cash and due from banks	$ 30,631	$ 27,690
Securities held to maturity	69,079	69,849
Bank owned life insurance	39,524	39,274
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	30,631	27,690
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	30,631	27,690
Significant Other Observable Inputs (Level 2) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash equivalents	83,118	62,129
Loans, net	1,245,996	1,260,414
Accrued interest receivable	4,204	4,092
Financial liabilities [Abstract]
Deposits	(1,433,146)	(1,448,724)
Other borrowed funds	(102,785)	(84,173)
Long-term debt	(41,238)	(41,238)
Accrued interest payable	(275)	(282)
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash equivalents	83,118	62,129
Loans, net	1,234,716	1,247,842
Accrued interest receivable	4,204	4,092
Financial liabilities [Abstract]
Deposits	(1,433,068)	(1,448,692)
Other borrowed funds	(102,595)	(84,051)
Long-term debt	(36,277)	(36,112)
Accrued interest payable	(275)	(282)
Significant Unobservable Inputs (Level 3) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Securities held to maturity	68,473	69,378
Bank owned life insurance	39,524	39,274
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member]
Financial assets [Abstract]
Securities held to maturity	69,079	69,849
Bank owned life insurance	$ 39,524	$ 39,274

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Summary of deposit [Abstract]
Noninterest-bearing demand	$ 466,415	$ 501,478
Interest bearing demand	342,812	340,715
Savings and money market accounts	548,761	532,853
Certificates of deposit	75,158	73,678
Total deposits	1,433,146	1,448,724
FDIC insurance limit on deposit accounts	250	250
Time deposits that exceed FDIC insurance limit	$ 18,100	$ 17,400

OTHER BORROWED FUNDS, Federal H

OTHER BORROWED FUNDS, Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 102,785	$ 84,173
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances	464,498	424,951
Federal Home Loan Bank Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	102,785	84,173
Federal Home Loan Bank Advances [Member] | Single Maturity Fixed Rate Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 100,000	$ 80,000
Range of maturities, earliest	2,017	2,018
Range of maturities, last	2,021	2,021
Federal Home Loan Bank Advances [Member] | Single Maturity Fixed Rate Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	1.41%	1.60%
Federal Home Loan Bank Advances [Member] | Amortizable Mortgage Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 2,785	$ 4,173
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	3.75%	3.78%

OTHER BORROWED FUNDS, Scheduled

OTHER BORROWED FUNDS, Scheduled Repayments of FHLB Advances (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Scheduled repayments of FHLB advances [Abstract]
2,017	$ 20,667
2,018	52,118
2,019	10,000
2,020	10,000
2,021	10,000
Thereafter	0
Total	$ 102,785	$ 84,173

OTHER BORROWED FUNDS, Federal R

OTHER BORROWED FUNDS, Federal Reserve Bank Borrowings (Details) - Federal Reserve Bank Borrowings [Member] - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Borrowings outstanding	$ 0	$ 0
Unused borrowing capacity	16.3	18.1
Commercial and mortgage loans pledged to the Federal Reserve Bank	$ 20.4	$ 20.7

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract]
Net income available to common shares	$ 4,460	$ 3,495
Weighted average shares outstanding, including participating stock awards - Basic (in shares)	33,941,010	33,925,113
Dilutive potential common shares [Abstract]
Stock options (in shares)	7,574	0
Stock warrants (in shares)	0	0
Weighted average shares outstanding - Diluted (in shares)	33,948,584	33,925,113
Basic earnings per common share (in dollars per share)	$ 0.13	$ 0.10
Diluted earnings per common share (in dollars per share)	$ 0.13	$ 0.10
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)	0	101,473

FEDERAL INCOME TAXES (Details)

FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income tax expense [Abstract]
Current	$ 1,804	$ 1,468
Deferred	162	(68)
Income tax expense	$ 1,966	$ 1,400
Difference between financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income [Abstract]
Statutory rate	35.00%	35.00%
Statutory rate applied to income before taxes	$ 2,249	$ 1,713
Deduct [Abstract]
Tax-exempt interest income	(183)	(148)
Bank-owned life insurance	(83)	(155)
Other, net	(17)	(10)
Income tax expense	1,966	$ 1,400
Deferred tax assets [Abstract]
Allowance for loan losses	5,844		$ 5,937
Nonaccrual loan interest	642		718
Valuation allowance on other real estate owned	3,649		3,714
Unrealized loss on securities available for sale	428		799
Other	216		176
Gross deferred tax assets	10,779		11,344
Valuation allowance	0		0
Total net deferred tax assets	10,779		11,344
Deferred tax liabilities [Abstract]
Depreciation	(1,655)		(1,705)
Prepaid expenses	(399)		(399)
Unrealized gain on securities available for sale	0		0
Other	(395)		(377)
Gross deferred tax liabilities	(2,449)		(2,481)
Net deferred tax asset	8,330		8,863
Unrecognized tax benefits	$ 0		$ 0
Period when unrecognized tax benefits is not expected to significantly increase or decrease	12 months

COMMITMENTS AND OFF BALANCE-S56

COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
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	$ 16,800	$ 19,800
Commitments to make loans at fixed rates	37.50%
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	$ 95,653	90,293
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	13,598	13,823
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	$ 446,346	$ 437,435

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Category	Dec. 31, 2016USD ($)
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	$ 166,880	$ 163,663
CET1 capital (to risk weighted assets), actual ratio	11.30%	11.00%
Tier 1 capital (to risk weighted assets), actual amount	$ 206,880	$ 203,663
Tier 1 capital (to risk weighted assets), actual ratio	14.00%	13.70%
Total capital (to risk weighted assets), actual amount	$ 223,575	$ 220,625
Total capital (to risk weighted assets), actual ratio	15.10%	14.90%
Tier 1 capital (to average assets), actual amount	$ 206,880	$ 203,663
Tier 1 capital (to average assets), actual ratio	12.10%	12.00%
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 66,557	$ 66,743
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	$ 88,742	$ 88,991
Tier 1 capital (to risk weighted assets), minimum capital adequacy, ratio	6.00%	6.00%
Total capital (to risk weighted assets), minimum capital adequacy, amount	$ 118,323	$ 118,655
Total capital (to risk weighted assets), minimum capital adequacy, ratio	8.00%	8.00%
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 68,329	$ 67,810
Tier 1 capital (to average assets), minimum capital adequacy, ratio	4.00%	4.00%
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 85,045	$ 76,013
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	5.80%	5.10%
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 107,230	$ 98,261
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	7.30%	6.60%
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 136,811	$ 127,925
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	9.30%	8.60%
Trust preferred securities that qualified as Tier one risk based capital	$ 40,000	$ 40,000
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital (to risk weighted assets), actual amount	$ 201,129	$ 197,972
CET1 capital (to risk weighted assets), actual ratio	13.60%	13.40%
Tier 1 capital (to risk weighted assets), actual amount	$ 201,129	$ 197,972
Tier 1 capital (to risk weighted assets), actual ratio	13.60%	13.40%
Total capital (to risk weighted assets), actual amount	$ 217,825	$ 214,934
Total capital (to risk weighted assets), actual ratio	14.70%	14.50%
Tier 1 capital (to average assets), actual amount	$ 201,129	$ 197,972
Tier 1 capital (to average assets), actual ratio	11.80%	11.70%
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 66,552	$ 66,737
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	$ 88,736	$ 88,983
Tier 1 capital (to risk weighted assets), minimum capital adequacy, ratio	6.00%	6.00%
Total capital (to risk weighted assets), minimum capital adequacy, amount	$ 118,314	$ 118,644
Total capital (to risk weighted assets), minimum capital adequacy, ratio	8.00%	8.00%
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 68,264	$ 67,742
Tier 1 capital (to average assets), minimum capital adequacy, ratio	4.00%	4.00%
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 85,038	$ 76,006
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	5.80%	5.10%
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 107,222	$ 98,252
Tier 1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	7.30%	6.60%
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 136,801	$ 127,913
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	9.30%	8.60%
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount	$ 96,130	$ 96,398
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	$ 118,314	$ 118,644
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	$ 147,893	$ 148,305
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	$ 85,330	$ 84,677
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio	5.00%	5.00%