Macatawa Bank (MCBC) 10-K 15 Feb 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Feb. 15, 2018	Jun. 30, 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 Public Float			$ 296,104,000
Entity Common Stock, Shares Outstanding		34,017,977
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 34,945	$ 27,690
Federal funds sold and other short -term investments	126,522	62,129
Cash and cash equivalents	161,467	89,819
Securities available for sale, at fair value	220,720	184,433
Securities held to maturity (fair value 2017 - $86,452 and 2016 - $69,849)	85,827	69,378
Federal Home Loan Bank (FHLB) stock	11,558	11,558
Loans held for sale, at fair value	1,208	2,181
Total loans	1,320,309	1,280,812
Allowance for loan losses	(16,600)	(16,962)
Net loans	1,303,709	1,263,850
Premises and equipment - net	46,629	50,026
Accrued interest receivable	4,680	4,092
Bank-owned life insurance	40,243	39,274
Other real estate owned - net	5,767	12,253
Net deferred tax asset	3,785	8,863
Other assets	4,639	5,286
Total assets	1,890,232	1,741,013
Deposits
Noninterest-bearing	490,583	501,478
Interest-bearing	1,088,427	947,246
Total deposits	1,579,010	1,448,724
Other borrowed funds	92,118	84,173
Long-term debt	41,238	41,238
Accrued expenses and other liabilities	4,880	4,639
Total liabilities	1,717,246	1,578,774
Commitments and contingent liabilities
Shareholders' equity
Common stock, no par value, 200,000,000 shares authorized; 33,972,977 and 33,940,788 shares issued and outstanding at December 31, 2017 and December 31, 2016	217,081	216,731
Retained deficit	(42,804)	(53,008)
Accumulated other comprehensive income (loss)	(1,291)	(1,484)
Total shareholders' equity	172,986	162,239
Total liabilities and shareholders' equity	$ 1,890,232	$ 1,741,013

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Securities held to maturity fair value	$ 86,452	$ 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)	33,972,977	33,940,788
Common stock, shares outstanding (in shares)	33,972,977	33,940,788

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Interest income
Loans, including fees	$ 51,068	$ 47,400	$ 44,857
Securities
Taxable	2,869	2,322	2,065
Tax-exempt	2,244	1,819	1,557
FHLB Stock	491	491	472
Federal funds sold and other short-term investments	1,004	467	435
Total interest income	57,676	52,499	49,386
Interest expense
Deposits	2,612	1,771	2,210
Other borrowings	1,407	1,685	1,765
Long-term debt	1,713	1,503	1,331
Total interest expense	5,732	4,959	5,306
Net interest income	51,944	47,540	44,080
Provision for loan losses	(1,350)	(1,350)	(3,500)
Net interest income after provision for loan losses	53,294	48,890	47,580
Noninterest income
Service charges and fees	4,466	4,425	4,377
Net gains on mortgage loans	1,574	3,024	2,925
Trust fees	3,277	3,096	2,927
ATM and debit card fees	5,207	4,980	4,750
Gain on sales of securities	3	124	129
Bank owned life insurance ("BOLI") income	969	977	663
Other	1,923	2,448	2,022
Total noninterest income	17,419	19,074	17,793
Noninterest expense
Salaries and benefits	24,803	24,867	24,668
Occupancy of premises	3,864	3,789	3,714
Furniture and equipment	3,050	3,256	3,237
Legal and professional	812	863	833
Marketing and promotion	882	1,000	951
Data processing	2,759	2,787	2,483
FDIC assessment	539	778	1,137
Interchange and other card expense	1,306	1,286	1,151
Bond and D&O Insurance	471	527	584
Net (gains) losses on repossessed and foreclosed properties	(428)	318	1,651
Administration and disposition of problem assets	493	977	1,381
Other	5,137	5,334	5,163
Total noninterest expenses	43,688	45,782	46,953
Income before income tax	27,025	22,182	18,420
Income tax expense	10,733	6,231	5,626
Net income	$ 16,292	$ 15,951	$ 12,794
Basic earnings per common share (in dollars per share)	$ 0.48	$ 0.47	$ 0.38
Diluted earnings per common share (in dollars per share)	0.48	0.47	0.38
Cash dividends per common share (in dollars per share)	$ 0.18	$ 0.12	$ 0.11

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 16,292	$ 15,951	$ 12,794
Unrealized gains (losses):
Net change in unrealized gains (losses) on securities available for sale	300	(2,694)	569
Tax effect	(105)	943	(199)
Net change in unrealized gains (losses) on securities available for sale, net of tax	195	(1,751)	370
Less: reclassification adjustments:
Reclassification for gains included in net income	3	124	129
Tax effect	(1)	(44)	(45)
Reclassification for gains included in net income, net of tax	2	80	84
Other comprehensive income (loss), net of tax	193	(1,831)	286
Comprehensive income	$ 16,485	$ 14,120	$ 13,080

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Retained Deficit [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2014	$ 216,460	$ (74,002)	$ 61	$ 142,519
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	12,794	0	12,794
Cash dividends	0	(3,702)	0	(3,702)
Repurchase of shares for taxes withheld on vested restricted stock	(171)	0	0	(171)
Tax effect of vested stock awards	53	0	0	53
Net change in unrealized gain (loss) on securities available for sale, net of tax	0	0	286	286
Tax effect of expired common stock warrants	(280)	0	0	(280)
Stock compensation expense	478	0	0	478
Balance at Dec. 31, 2015	216,540	(64,910)	347	151,977
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	15,951	0	15,951
Cash dividends	0	(4,049)	0	(4,049)
Repurchase of shares for taxes withheld on vested restricted stock	(269)	0	0	(269)
Tax effect of vested stock awards	143	0	0	143
Net change in unrealized gain (loss) on securities available for sale, net of tax	0	0	(1,831)	(1,831)
Tax effect of expired common stock options	(219)	0	0	(219)
Stock compensation expense	536	0	0	536
Balance at Dec. 31, 2016	216,731	(53,008)	(1,484)	162,239
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	16,292	0	16,292
Cash dividends	0	(6,088)	0	(6,088)
Repurchase of shares for taxes withheld on vested restricted stock	(183)	0	0	(183)
Issuance of shares for stock option exercise	68	0	0	68
Net change in unrealized gain (loss) on securities available for sale, net of tax	0	0	193	193
Stock compensation expense	465	0	0	465
Balance at Dec. 31, 2017	$ 217,081	$ (42,804)	$ (1,291)	$ 172,986

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividend (in dollars per share)	$ 0.18	$ 0.12	$ 0.11
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Number of shares repurchased for taxes withheld on vested restricted stock (in shares)	18,529	30,350	29,676
Number of shares issued for stock option exercise (in shares)	8,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net income	$ 16,292	$ 15,951	$ 12,794
Adjustments to reconcile net income to net cash from operating activities:
Depreciation, amortization and accretion	2,285	2,805	2,969
Stock compensation expense	465	536	478
Tax effect of vested stock awards	0	143	53
Tax effect of expired common stock options and warrants	0	(219)	(280)
Provision for loan losses	(1,350)	(1,350)	(3,500)
Origination of loans for sale	(56,985)	(103,385)	(99,998)
Proceeds from sales of loans originated for sale	59,532	107,004	102,494
Net gains on mortgage loans	(1,574)	(3,024)	(2,925)
Gain on sales of securities	(3)	(124)	(129)
Write-down of other real estate	129	964	724
Net (gain) loss on sales of other real estate	(557)	(645)	926
Net loss on sale of premises and equipment	240	0	0
Deferred income tax expense	4,974	942	3,291
Change in accrued interest receivable and other assets	59	(1,585)	(1,323)
Earnings in bank-owned life insurance	(969)	(977)	(663)
Change in accrued expenses and other liabilities	241	(108)	(910)
Net cash from operating activities	22,779	16,928	14,001
Cash flows from investing activities
Loan originations and payments, net	(38,629)	(81,988)	(80,350)
Change in interest-bearing deposits in other financial institutions	0	20,000	0
Purchases of securities available for sale	(62,093)	(89,159)	(59,807)
Purchases of securities held to maturity	(42,547)	(33,702)	(36,547)
Purchase of bank-owned life insurance	0	(10,000)	0
Purchase of FHLB stock	0	0	(320)
Proceeds from:
Maturities and calls of securities	40,726	68,952	47,056
Sales of securities available for sale	5,807	11,729	20,625
Principal paydowns on securities	5,992	4,159	3,670
Sales of other real estate	7,034	5,339	11,540
Sales of premises and equipment	1,742	0	0
Death benefit from bank-owned life insurance	0	518	0
Additions to premises and equipment	(1,191)	(1,188)	(1,170)
Net cash from investing activities	(83,159)	(105,340)	(95,303)
Cash flows from financing activities
Change in deposits	130,286	13,212	129,187
Repayments and maturities of other borrowed funds	(32,055)	(21,996)	(1,938)
Proceeds from other borrowed funds	40,000	10,000	10,000
Proceeds from issuance of common stock	68	0	0
Cash paid related to tax impact of vested stock awards	0	(143)	(53)
Cash dividends paid	(6,088)	(4,049)	(3,702)
Repurchase of shares for taxes withheld on vested restricted stock	(183)	(269)	(171)
Net cash from financing activities	132,028	(3,245)	133,323
Net change in cash and cash equivalents	71,648	(91,657)	52,021
Cash and cash equivalents at beginning of period	89,819	181,476	129,455
Cash and cash equivalents at end of period	161,467	89,819	181,476
Supplemental cash flow information
Interest paid	5,410	4,950	5,322
Income taxes paid	4,725	6,160	4,300
Supplemental noncash disclosures:
Transfers from loans to other real estate	$ 120	$ 339	$ 2,520

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common securities of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are discussed in a separate note. Under generally accepted accounting principles, these trusts are not consolidated into the financial statements of the Company. Use of Estimates Concentration of Credit Risk Cash Flow Reporting Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments. Gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available for sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments — Debt and Equity Instruments In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management has determined that no OTTI charges were necessary during 2017, 2016 and 2015. Federal Home Loan Bank (FHLB) Stock Loans Held for Sale Loans Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the respective term of the loan using the level‑yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost‑recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative environmental factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class as well as the loan risk grade assignment for commercial loans. At December 31, 2017, an 18 month (six quarter) annualized historical loss experience was used for commercial loans and a 12 month (four quarter) historical loss experience period was applied to residential mortgage and consumer loan portfolios. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative environmental factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, competition, increasing interest rates, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Transfers of Financial Assets Foreclosed Assets Premises and Equipment Bank-Owned Life Insurance (BOLI): Goodwill and Acquired Intangible Assets Acquired intangible assets consist of core deposit and customer relationship intangible assets arising from acquisitions. They are initially measured at fair value and then are amortized on an accelerated method over their estimated useful lives, which range from ten to sixteen years. The Company had no acquired intangible assets at December 31, 2017 and 2016. Long-term Assets Loan Commitments and Related Financial Instruments Mortgage Banking Derivatives Changes in the fair values of these interest rate lock and forward commitment derivatives are included in net gains on mortgage loans. The net fair value of mortgage banking derivatives was approximately $5,000 and $51,000 at December 31, 2017 and 2016, respectively. Derivatives Income Taxes The Company recognizes a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Earnings Per Common Share Comprehensive Income Loss Contingencies Restrictions on Cash Stock Splits and Dividends Dividend Restriction Fair Values of Financial Instruments Segment Reporting Reclassifications Adoption of New Accounting Standards 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 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities 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 . This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance eliminates the probable initial recognition threshold and, instead, reflects an entity’s current estimate of all expected credit losses. The new guidance broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually to include forecasted information, as well as past events and current conditions. There is no specified method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Although an entity may still use its current systems and methods for recording the allowance for credit losses, under the new rules, the inputs used to record the allowance for credit losses generally will need to change to appropriately reflect an estimate of all expected credit losses and the use of reasonable and supportable forecasts. Additionally, credit losses on available-for-sale debt securities will now have to be presented as an allowance rather than as a write-down. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within those years. The Company has selected a software vendor for applying this new ASU, will begin implementing the software in the spring of 2018 and is currently evaluating the impact of this new ASU on its consolidated financial statements. 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). FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities Derivatives and Hedging

SECURITIES

SECURITIES	12 Months Ended
	Dec. 31, 2017
SECURITIES [Abstract]
SECURITIES	NOTE 2 – SECURITIES The amortized cost and fair value of securities were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017 Available for Sale: U.S. Treasury and federal agency securities $ 103,309 $ --- $ (1,345 ) $ 101,964 U.S. Agency MBS and CMOs 23,797 7 (419 ) 23,385 Tax-exempt state and municipal bonds 41,684 519 (146 ) 42,057 Taxable state and municipal bonds 44,267 10 (542 ) 43,735 Corporate bonds and other debt securities 8,149 1 (41 ) 8,109 Other equity securities 1,500 --- (30 ) 1,470 $ 222,706 $ 537 $ (2,523 ) $ 220,720 Held to Maturity Tax-exempt state and municipal bonds $ 85,827 $ 806 $ (181 ) $ 86,452 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 $5.8 million, $11.7 million and $20.6 million, respectively, for the years ended December 31, 2017, 2016 and 2015, resulting in net gains on sale of $3,000, $124,000 and $129,000, respectively, as reported in the consolidated statements of income. This resulted in reclassifications of $3,000 ($2,000 net of tax), $124,000 ($80,000 net of tax) and $129,000 ($84,000 net of tax), respectively, from accumulated other comprehensive income to gain on sale of securities in the consolidated statements of income in years ended December 31, 2017, 2016 and 2015. Contractual maturities of debt securities at December 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 $ 13,255 $ 13,257 $ 19,180 $ 19,169 Due from one to five years 23,772 24,069 121,100 119,712 Due from five to ten years 16,408 16,799 57,358 57,209 Due after ten years 32,392 32,327 23,568 23,160 $ 85,827 $ 86,452 $ 221,206 $ 219,250 Securities with unrealized losses at December 31, 2017 and 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): Less than 12 Months 12 Months or More Total December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 50,614 $ (439 ) $ 43,787 $ (876 ) $ 94,401 $ (1,315 ) U.S. Agency MBS and CMOs 16,719 (249 ) 6,228 (170 ) 22,947 (419 ) Tax-exempt state and municipal bonds 20,124 (243 ) 4,208 (82 ) 24,332 (325 ) Taxable state and municipal bonds 30,331 (279 ) 9,781 (265 ) 40,112 (544 ) Corporate bonds and other debt securities 8,021 (42 ) 2,250 (29 ) 10,271 (71 ) Other equity securities --- --- 1,470 (30 ) 1,470 (30 ) Total temporarily impaired $ 125,809 $ (1,252 ) $ 67,724 $ (1,452 ) $ 193,533 $ (2,704 ) 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 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 2017, 2016 and 2015. Securities with a carrying value of approximately $2.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at December 31, 2017 and 2016.

LOANS

LOANS	12 Months Ended
	Dec. 31, 2017
LOANS [Abstract]
LOANS	NOTE 3 – LOANS Portfolio loans were as follows (dollars in thousands): December 31, 2017 December 31, 2016 Commercial and industrial $ 465,208 $ 449,342 Commercial real estate: Residential developed 11,888 11,970 Unsecured to residential developers 2,332 4,734 Vacant and unimproved 39,752 40,286 Commercial development 1,103 378 Residential improved 90,467 75,348 Commercial improved 298,714 289,478 Manufacturing and industrial 97,679 95,787 Total commercial real estate 541,935 517,981 Consumer Residential mortgage 224,452 217,614 Unsecured 226 396 Home equity 82,234 88,113 Other secured 6,254 7,366 Total consumer 313,166 313,489 Total loans 1,320,309 1,280,812 Allowance for loan losses (16,600 ) (16,962 ) $ 1,303,709 $ 1,263,850 The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2017, 2016 and 2015 (dollars in thousands): 2017 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 Charge-offs (108 ) --- (158 ) --- (266 ) Recoveries 123 821 310 --- 1,254 Provision for loan losses 118 (934 ) (529 ) (5 ) (1,350 ) Ending Balance $ 6,478 $ 6,590 $ 3,494 $ 38 $ 16,600 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (205 ) --- (205 ) Recoveries 162 1,090 184 --- 1,436 Provision for loan losses 1,357 (2,844 ) 131 6 (1,350 ) Ending Balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs (172 ) (218 ) (312 ) --- (702 ) Recoveries 406 1,264 651 --- 2,321 Provision for loan losses (1,581 ) (1,279 ) (624 ) (16 ) (3,500 ) Ending Balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): December 31, 2017 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 497 $ 197 $ 514 $ --- $ 1,208 Collectively evaluated for impairment 5,981 6,393 2,980 38 15,392 Total ending allowance balance $ 6,478 $ 6,590 $ 3,494 $ 38 $ 16,600 Loans: Individually reviewed for impairment $ 6,402 $ 7,332 $ 8,345 $ --- $ 22,079 Collectively evaluated for impairment 458,806 534,603 304,821 --- 1,298,230 Total ending loans balance $ 465,208 $ 541,935 $ 313,166 $ --- $ 1,320,309 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 December 31, 2017 (dollars in thousands): December 31, 2017 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 3,438 $ 3,438 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development 190 190 --- Residential improved 15 15 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 205 205 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 3,643 $ 3,643 $ --- With an allowance recorded: Commercial and industrial $ 2,964 $ 2,964 $ 497 Commercial real estate: Residential developed 179 179 4 Unsecured to residential developers --- --- --- Vacant and unimproved 126 126 3 Commercial development --- --- --- Residential improved 1,715 1,715 69 Commercial improved 4,928 4,928 119 Manufacturing and industrial 179 179 2 7,127 7,127 197 Consumer: Residential mortgage 6,638 6,638 409 Unsecured --- --- --- Home equity 1,707 1,707 105 Other secured --- --- --- 8,345 8,345 514 Total with an allowance recorded $ 18,436 $ 18,436 $ 1,208 Total $ 22,079 $ 22,079 $ 1,208 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 years ended December 31, 2017, 2016 and 2015 (dollars in thousands): 2017 2016 2015 Average of impaired loans during the period: Commercial and industrial $ 5,505 $ 6,468 $ 7,296 Commercial real estate: Residential developed 182 78 577 Unsecured to residential developers --- --- --- Vacant and unimproved 287 422 1,231 Commercial development 189 191 195 Residential improved 2,732 5,273 6,425 Commercial improved 5,768 7,332 15,106 Manufacturing and industrial 230 235 1,944 Consumer 9,889 12,602 14,259 Interest income recognized during impairment: Commercial and industrial 935 993 1,110 Commercial real estate 411 643 967 Consumer 390 444 497 Cash-basis interest income recognized Commercial and industrial 931 992 1,066 Commercial real estate 414 647 970 Consumer 392 443 502 Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2017 and 2016 (dollars in thousands): December 31, 2017 Nonaccrual Over 90 days Accruing Commercial and industrial $ 4 $ --- Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 190 --- Residential improved 89 --- Commercial improved 106 --- Manufacturing and industrial --- --- 385 --- Consumer: Residential mortgage 2 --- Unsecured 4 --- Home equity --- --- Other secured --- --- 6 --- Total $ 395 $ --- 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 December 31, 2017 by class of loans (dollars in thousands): December 31, 2017 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 290 $ --- $ 290 $ 464,918 $ 465,208 Commercial real estate: Residential developed --- --- --- 11,888 11,888 Unsecured to residential developers --- --- --- 2,332 2,332 Vacant and unimproved --- --- --- 39,752 39,752 Commercial development --- 190 190 913 1,103 Residential improved --- 89 89 90,378 90,467 Commercial improved 125 --- 125 298,589 298,714 Manufacturing and industrial --- --- --- 97,679 97,679 125 279 404 541,531 541,935 Consumer: Residential mortgage 215 --- 215 224,237 224,452 Unsecured 10 --- 10 216 226 Home equity 76 --- 76 82,158 82,234 Other secured --- --- --- 6,254 6,254 301 --- 301 312,865 313,166 Total $ 716 $ 279 $ 995 $ 1,319,314 $ 1,320,309 The following table presents the aging of the recorded investment in past due loans as of December 31, 2016 by class of loans (dollars in thousands): December 31, 2016 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 425 $ 28 $ 453 $ 448,889 $ 449,342 Commercial real estate: Residential developed --- --- --- 11,970 11,970 Unsecured to residential developers --- --- --- 4,734 4,734 Vacant and unimproved --- --- --- 40,286 40,286 Commercial development --- 49 49 329 378 Residential improved 74 5 79 75,269 75,348 Commercial improved 478 --- 478 289,000 289,478 Manufacturing and industrial --- --- --- 95,787 95,787 552 54 606 517,375 517,981 Consumer: Residential mortgage 64 56 120 217,494 217,614 Unsecured --- --- --- 396 396 Home equity 187 --- 187 87,926 88,113 Other secured 81 --- 81 7,285 7,366 332 56 388 313,101 313,489 Total $ 1,309 $ 138 $ 1,447 $ 1,279,365 $ 1,280,812 The Company had allocated $1,208,000 and $1,696,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of December 31, 2017 and 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. Based upon regulatory guidance issued in 2014, the Company has determined that in situations where there is a subsequent modification or renewal and the loan is brought to market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, the TDR and impaired loan designations may be removed. This guidance was first applied to loans outstanding at September 30, 2014 resulting in a reduction of $5.9 million in loans designated as TDR and impaired. In addition, the TDR designation may also be removed from loans modified under an A-B note structure. If the remaining “A” note is at a market rate at the time of restructuring (taking into account the borrower’s credit risk and prevailing market conditions), the loan can be removed from TDR designation in a subsequent calendar year after six months of performance in accordance with the new terms. The market rate relative to the borrower’s credit risk is determined through analysis of market pricing information gathered from peers and use of a loan pricing model. The general objective of the model is to achieve a consistent return on equity from one credit to the next, taking into consideration differences in credit risk. In the model, credits with higher risk receive a higher potential loss allocation, and therefore require a higher interest rate to achieve the target return on equity. As with other impaired loans, an allowance for loan loss is estimated for each TDR based on the most likely source of repayment for each loan. For impaired commercial real estate loans that are collateral dependent, the allowance is computed based on the fair value of the underlying collateral, less estimated costs to sell. For impaired commercial loans where repayment is expected from cash flows from business operations, the allowance is computed based on a discounted cash flow computation. Certain groups of TDRs, such as residential mortgages, have common characteristics and for them the allowance is computed based on a discounted cash flow computation on the change in weighted rate for the pool. The allowance allocations for commercial TDRs where we have reduced the contractual interest rate are computed by measuring cash flows using the new payment terms discounted at the original contractual rate. The following table presents information regarding TDRs as of December 31, 2017 and 2016 (dollars in thousands): 2017 2016 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 19 $ 6,403 25 $ 5,994 Commercial real estate 33 7,332 49 11,933 Consumer 99 8,345 116 12,059 151 $ 22,080 190 $ 29,986 The following table presents information related to accruing TDRs as of December 31, 2017, 2016 and 2015. The table presents the amount of accruing TDRs that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of December 31, 2017, 2016 and 2015 (dollars in thousands): 2017 2016 2015 Accruing TDR - nonaccrual at restructuring $ --- $ --- $ --- Accruing TDR - accruing at restructuring 16,809 25,665 33,691 Accruing TDR - upgraded to accruing after six consecutive payments 4,955 4,172 4,784 $ 21,764 $ 29,837 $ 38,475 The following tables present information regarding troubled debt restructurings executed during the years ended December 31, 2017, 2016 and 2015 (dollars in thousands): 2017 2016 2015 # of Loans Pre-TDR Balance Writedown Upon TDR # of Loans Pre-TDR Balance Writedown Upon TDR # of Loans Pre-TDR Balance Writedown Upon TDR Commercial and industrial --- $ --- $ --- --- $ --- $ --- 6 $ 745 $ --- Commercial real estate 1 1,018 --- 1 56 --- 3 301 --- Consumer 6 410 --- 7 289 --- 34 1,000 --- 7 $ 1,428 $ --- 8 345 $ --- 43 $ 2,046 $ --- According to the accounting standards, not all loan modifications are TDRs. TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. In some situations a borrower may be experiencing financial distress, but the Company does not provide a concession. These modifications are not considered TDRs. In other cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor’s interest rate. These modifications would also not be considered TDRs. Finally, any renewals at existing terms for borrowers not experiencing financial distress would not be considered TDRs. As with other loans not considered TDR or impaired, allowance allocations are based on the historical based allocation for the applicable loan grade and loan class. Payment defaults on TDRs have been minimal and during the twelve months ended December 31, 2017, 2016 and 2015 the balance of loans that became delinquent by more than 90 days past due or that were transferred to nonaccrual within 12 months of restructuring were not material. Credit Quality Indicators: 1. Excellent 2. Above Average 3. Good Quality 4. Acceptable Risk 5. Marginally Acceptable 6. Substandard 7. Doubtful 8. Loss At year end, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): December 31, 2017 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 15,002 $ 137,774 $ 291,373 $ 15,170 $ 5,885 $ 4 $ --- $ 465,208 Commercial real estate: Residential developed --- --- 48 11,068 772 --- --- --- 11,888 Unsecured to residential developers --- --- --- 2,332 --- --- --- --- 2,332 Vacant and unimproved --- --- 19,244 17,332 3,176 --- --- --- 39,752 Commercial development --- --- 104 809 --- --- 190 --- 1,103 Residential improved --- --- 7,275 80,818 1,533 752 89 --- 90,467 Commercial improved --- 1,398 64,043 228,888 3,353 926 106 --- 298,714 Manufacturing & industrial --- 927 44,714 49,238 2,311 489 --- --- 97,679 $ --- $ 17,327 $ 273,202 $ 681,858 $ 26,315 $ 8,052 $ 389 $ --- $ 1,007,143 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 year-end (dollars in thousands): 2017 2016 Not classified as impaired $ 2,010 $ 2,608 Classified as impaired 6,431 7,498 Total commercial loans classified substandard or worse $ 8,441 $ 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 tables present the recorded investment in consumer loans based on payment activity as of December 31, 2017 and 2016 (dollars in thousands): December 31, 2017 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 224,452 $ 226 $ 82,234 $ 6,254 Nonperforming --- --- --- --- Total $ 224,452 $ 226 $ 82,234 $ 6,254 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	12 Months Ended
	Dec. 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): 2017 2016 2015 Beginning balance $ 22,864 $ 28,377 $ 43,071 Additions, transfers from loans 120 339 2,520 Proceeds from sales of other real estate owned (7,034 ) (5,339 ) (11,540 ) Valuation allowance reversal upon sale (7,367 ) (1,158 ) (4,748 ) Gain (loss) on sales of other real estate owned 557 645 (926 ) 9,140 22,864 28,377 Less: valuation allowance (3,373 ) (10,611 ) (10,805 ) Ending balance $ 5,767 $ 12,253 $ 17,572 Activity in the valuation allowance was as follows (dollars in thousands): 2017 2016 2015 Beginning balance $ 10,611 $ 10,805 $ 14,829 Additions charged to expense 129 964 724 Reversals upon sale (7,367 ) (1,158 ) (4,748 ) Ending balance $ 3,373 $ 10,611 $ 10,805 At December 31, 2017, the balance of other real estate owned includes $59,500 of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property. At December 31, 2017, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process is $0.

FAIR VALUE

FAIR VALUE	12 Months Ended
	Dec. 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: Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 U.S. Treasury and federal agency securities $ 101,964 $ --- $ 101,964 $ --- U.S. Agency MBS and CMOs 23,385 --- 23,385 --- Tax-exempt state and municipal bonds 42,057 --- 42,057 --- Taxable state and municipal bonds 43,735 --- 43,735 --- Corporate bonds and other debt securities 8,109 --- 8,109 --- Other equity securities 1,470 --- 1,470 --- Loans held for sale 1,208 --- 1,208 --- Interest rate swaps 197 --- --- 197 Interest rate swaps (197 ) --- --- (197 ) 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 13,187 --- 13,187 --- 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 Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 Impaired loans $ 2,278 $ --- $ --- $ 2,278 Other real estate owned 3,658 --- --- 3,658 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 were as follows at year end (dollars in thousands). Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2017 Impaired Loans $ 2,278 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 15.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 3,658 Sales comparison approach Adjustment for differences between comparable sales 3.0 to 22.0 Income approach Capitalization rate 9.5 to 11.0 Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2016 Impaired Loans $ 3,436 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 35.0 Income approach Capitalization rate 9.5 to 11.5 Other real estate owned 9,542 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 32.5 Income approach Capitalization rate 9.5 to 11.5 The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at year end (dollars in thousands). Level in Fair Value Hierarchy 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 34,945 $ 34,945 $ 27,690 $ 27,690 Cash equivalents Level 2 126,522 126,522 62,129 62,129 Securities held to maturity Level 3 85,827 86,452 69,378 69,849 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,301,431 1,296,633 1,260,414 1,247,842 Bank owned life insurance Level 3 40,243 40,243 39,274 39,274 Accrued interest receivable Level 2 4,680 4,680 4,092 4,092 Financial liabilities Deposits Level 2 (1,579,010 ) (1,579,016 ) (1,448,724 ) (1,448,692 ) Other borrowed funds Level 2 (92,118 ) (91,313 ) (84,173 ) (84,051 ) Long-term debt Level 2 (41,238 ) (36,546 ) (41,238 ) (36,112 ) Accrued interest payable Level 2 (604 ) (604 ) (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 and deposits, and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk (including consideration of widening credit spreads). Fair value of debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of off-balance sheet credit-related items is not significant.

PREMISES AND EQUIPMENT - NET

PREMISES AND EQUIPMENT - NET	12 Months Ended
	Dec. 31, 2017
PREMISES AND EQUIPMENT - NET [Abstract]
PREMISES AND EQUIPMENT - NET	NOTE 6 – PREMISES AND EQUIPMENT – NET Year-end premises and equipment were as follows (dollars in thousands): 2017 2016 Land $ 16,384 $ 18,227 Building 43,625 43,600 Leasehold improvements 782 779 Furniture and equipment 21,680 20,576 Construction in progress 243 358 82,714 83,540 Less accumulated depreciation (36,085 ) (33,514 ) $ 46,629 $ 50,026 Depreciation expense was $2,606,000, $2,618,000 and $2,608,000 for 2017, 2016 and 2015, respectively. The Bank leases certain office and branch premises and equipment under operating lease agreements. Total rental expense for all operating leases aggregated to $410,000, $398,000 and $417,000 for 2017, 2016 and 2015, respectively. Future minimum rental expense under noncancelable operating leases as of December 31, 2017 is as follows (dollars in thousands): 2018 $ 241 2019 238 2020 132 2021 --- 2022 --- Thereafter --- $ 611

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2017
DEPOSITS [Abstract]
DEPOSITS	NOTE 7 – DEPOSITS Deposits at year-end were as follows (dollars in thousands): 2017 2016 Noninterest-bearing demand $ 490,583 $ 501,478 Interest bearing demand 408,865 340,715 Savings and money market accounts 587,931 532,853 Certificates of deposit 91,631 73,678 $ 1,579,010 $ 1,448,724 The following table depicts the maturity distribution of certificates of deposit at December 31, 2017 (dollars in thousands): 2018 $ 62,875 2019 19,769 2020 6,477 2021 1,604 2022 906 Thereafter --- $ 91,631 Time deposits that exceed the FDIC insurance limit of $250,000 at year end 2017 and 2016 were approximately $25.0 million and $17.4 million, respectively.

OTHER BORROWED FUNDS

OTHER BORROWED FUNDS	12 Months Ended
	Dec. 31, 2017
OTHER BORROWED FUNDS [Abstract]
OTHER BORROWED FUNDS	NOTE 8 - OTHER BORROWED FUNDS Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank. Federal Home Loan Bank Advances At year-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2017 Single maturity fixed rate advances $ 70,000 February 2018 to April 2021 1.59 % Amortizable mortgage advances 2,118 March 2018 to July 2018 3.78 % Putable Advances 20,000 November 2024 1.81 % $ 92,118 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 $493.2 million and $425.0 million under a blanket lien arrangement at December 31, 2017 and 2016, respectively. Scheduled repayments of FHLB advances as of December 31, 2017 were as follows (in thousands): 2018 $ 52,118 2019 10,000 2020 --- 2021 10,000 2022 --- Thereafter 20,000 $ 92,118 Federal Reserve Bank Borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at December 31, 2017 and 2016, and the Company had approximately $11.0 million and $18.1 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $13.2 million and $20.7 million at December 31, 2017 and 2016, respectively.

LONG TERM DEBT

LONG TERM DEBT	12 Months Ended
	Dec. 31, 2017
LONG TERM DEBT [Abstract]
LONG TERM DEBT	NOTE 9 – LONG TERM DEBT The Company has outstanding $40.0 million aggregate liquidation amount of pooled trust preferred securities ("TRUPs") issued through its wholly-owned subsidiary grantor trusts. Macatawa Statutory Trust I issued $619,000 of common securities to the Company and $20.0 million aggregate liquidation amount of Preferred Securities with a floating interest rate of three-month LIBOR plus 3.05%, maturing on July 15, 2033. Macatawa Statutory Trust II issued $619,000 of common securities and $20.0 million aggregate liquidation amount of Preferred Securities with a floating interest rate of three-month LIBOR plus 2.75%, maturing on March 18, 2034. The Company issued subordinated debentures (“Debentures”) to each trust in exchange for ownership of all of the common securities of each trust and the $41,238,000 in proceeds of the offerings, which Debentures represent the sole asset of each trust. The Preferred Securities represent an interest in the Company’s Debentures, which have terms that are similar to the Preferred Securities. The Company is not considered the primary beneficiary of each trust (variable interest entity), therefore each trust is not consolidated in the Company’s financial statements, rather the Debentures are shown as a liability. The Company has the option to defer interest payments on the Debentures from time to time for up to twenty consecutive quarterly payments, although interest continues to accrue on the outstanding balance. During any deferral period, the Company may not declare or pay any dividends on the Company’s common stock or preferred stock or make any payment on any outstanding debt obligations that rank equally with or junior to the Debentures. The Company also has the option to redeem and prepay both the TRUPs and the Debentures. At December 31, 2017, the Company does not have any intention to redeem or prepay either of the TRUPs or Debentures. At December 31, 2017 and 2016, Debentures totaling $41,238,000 are reported in liabilities as long-term debt, and the common securities of $1,238,000 and unamortized debt issuance costs are included in other assets. The Preferred Securities may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. At December 31, 2017 and 2016, approximately $40.0 million of the Preferred Securities issued qualified as Tier 1 capital for regulatory capital purposes.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2017
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 10 – RELATED PARTY TRANSACTIONS Loans to principal officers, directors, and their affiliates were as follows (dollars in thousands). 2017 2016 Beginning balance $ 24,333 $ 17,351 New loans and renewals 31,560 13,223 Repayments and renewals (27,355 ) (12,648 ) Effect of changes in related parties --- 6,407 Ending balance $ 28,538 $ 24,333 Deposits from principal officers, directors, and their affiliates at December 31, 2017 and 2016 were $125.8 million and $92.9 million, respectively. The majority of the deposit balances for each year are associated with institutional accounts of affiliated organizations of one of the Company’s directors. During 2015, the Bank entered into a back-to-back swap agreement (see Note 1 – Derivatives) with a company affiliated with one of the Company’s directors. Terms were at market rates and the total notional amount of the agreement was $15.9 million and $16.8 million at December 31, 2017 and 2016, respectively.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2017
STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATION	NOTE 11 – STOCK-BASED COMPENSATION The Company has stock-based compensation plans for its employees (the Employees' Plans) and directors (the Directors' Plans). The Employees' Plans permit the grant of stock options or the issuance of restricted stock for up to 1,917,210 shares of common stock. The Directors' Plans permit the grant of stock options or the issuance of restricted stock for up to 473,278 shares of common stock. No additional issuances of stock options or restricted stock are permitted under these plans. On May 5, 2015, the Company's shareholders approved the Macatawa Bank Corporation Stock Incentive Plan of 2015 (the 2015 Plan). The 2015 Plan provides for grant of up to 1,500,000 shares of Macatawa common stock in the form of stock options or restricted stock awards to employees and directors. There were 1,322,092 shares under the "2015 Plan" available for future issuance as of December 31, 2017. The Company issues new shares under the 2015 Plan from its authorized but unissued shares. Stock Options Option awards are granted with an exercise price equal to the market price at the date of grant. Option awards have vesting periods ranging from one to three years and have ten year contractual terms. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The Company expects that all options granted will vest and become exercisable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no options granted during 2017, 2016 and 2015. A summary of option activity in the plans is as follows (dollars in thousands, except per option data): Options Number Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at January 1, 2017 53,000 $ 8.57 --- --- Exercised (8,000 ) 8.57 --- --- Expired --- --- --- --- Outstanding at December 31, 2017 45,000 $ 8.57 0.05 $ 64,350 Exercisable at December 31, 2017 45,000 $ 8.57 0.05 $ 64,350 Information related to stock options during each year follows (dollars in thousands): 2017 2016 2015 Intrinsic value of options exercised $ --- $ --- $ --- Cash received from option exercises 68 --- --- Tax benefit realized from option exercises 8 --- --- There was no compensation cost for stock options in 2017, 2016 and 2015. As of December 31, 2017, there was no unrecognized cost related to nonvested stock options granted under the Company’s stock-based compensation plans. Restricted Stock Awards Restricted stock awards have vesting periods of up to three years. A summary of changes in the Company’s nonvested restricted stock awards for the year follows: Nonvested Stock Awards Shares Weighted- Average Grant-Date Fair Value Aggregate Intrinsic Value Outstanding at January 1, 2017 132,548 $ 6.88 $ 1,325,480 Granted 49,770 9.87 497,700 Vested (70,215 ) 6.26 702,150 Forfeited (7,055 ) 6.60 70,550 Outstanding at December 31, 2017 105,048 $ 8.73 $ 1,050,480 Compensation cost related to restricted stock awards totaled $465,000, $536,000 and $478,000 for 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $844,000 of total remaining unrecognized compensation cost related to nonvested restricted stock awards granted under the Company’s stock-based compensation plans. The cost is expected to be recognized over a weighted-average period of 1.47 years. The total grant date fair value of restricted stock awards vested during 2017 was $440,000. The total grant date fair value of restricted stock awards vested during 2016 was $588,000. The total grant date fair value of restricted stock awards vested during 2015 was $471,000.

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS	12 Months Ended
	Dec. 31, 2017
EMPLOYEE BENEFITS [Abstract]
EMPLOYEE BENEFITS	NOTE 12 – EMPLOYEE BENEFITS The Company sponsors a 401(k) plan which covers substantially all employees. Employees may elect to contribute to the plan up to the maximum percentage of compensation and dollar amount subject to statutory limitations. Beginning January 1, 2013, the Company’s contribution was set using a matching formula of 100% of the first 3% of employee contributions and 50% of employee contributions in excess of 3%, up to 5%. The Company’s contributions were approximately $684,000, $673,000 and $665,000 for 2017, 2016 and 2015, respectively. The Company sponsors an Employee Stock Purchase Plan which covers substantially all employees. Employees are allowed to direct the Company to withhold payroll dollars and purchase Company stock at market price on a payroll by payroll basis. The Company has reserved 210,000 shares of common stock to be issued under the plan. The plan allows for shares to be issued directly from the Company or purchased on the open market.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2017
EARNINGS PER COMMON SHARE [Abstract]
EARNINGS PER COMMON SHARE	NOTE 13 - EARNINGS PER COMMON SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per common share are as follows (dollars in thousands, except per share data): 2017 2016 2015 Net income available to common shares $ 16,292 $ 15,951 $ 12,794 Weighted average shares outstanding, including participating stock awards - 33,946,520 33,922,548 33,872,814 Dilutive potential common shares: Stock options 6,352 --- --- Stock warrants --- --- --- Weighted average shares outstanding - 33,952,872 33,922,548 33,872,814 Basic earnings per common share $ 0.48 $ 0.47 $ 0.38 Diluted earnings per common share $ 0.48 $ 0.47 $ 0.38 Stock options for 53,000 and 102,299 shares of common stock were not considered in computing diluted earnings per share for 2016 and 2015, respectively, because they were antidilutive. There were no antidilutive stock options for 2017.

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES	12 Months Ended
	Dec. 31, 2017
FEDERAL INCOME TAXES [Abstract]
FEDERAL INCOME TAXES	NOTE 14 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): 2017 2016 2015 Current $ 5,759 $ 5,289 $ 2,335 Deferred 2,450 942 3,291 Effect of change in enacted federal income tax rate on deferred items 2,524 --- --- $ 10,733 $ 6,231 $ 5,626 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): 2017 2016 2015 Statutory rate 35 % 35 % 35 % Statutory rate applied to income before taxes $ 9,459 $ 7,764 $ 6,447 Adjust for: Tax-exempt interest income (762 ) (620 ) (529 ) Bank-owned life insurance (339 ) (342 ) (232 ) Tax return credits and other adjustments (5 ) (513 ) --- Effect of change in enacted federal income tax rate on deferred items 2,524 --- --- Other, net (144 ) (58 ) (60 ) $ 10,733 $ 6,231 $ 5,626 The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, we consider positive and negative evidence, including taxable income in carry-back years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies. No valuation allowance was necessary at December 31, 2017, 2016 or 2015. Legislation H.R. 1, formerly known as "Tax Cuts and Jobs Act" (the Tax Reform Act") was enacted on December 22, 2017. The Tax Reform Act reduced the corporate income tax rate to 21% effective January 1, 2018 and changed certain other provisions. Accounting guidance requires the Company to remeasure its deferred tax assets and deferred tax liabilities on the date of enactment using the new enacted tax rate of 21%. The Company has recorded additional expense of $2.5 million to reflect changes that resulted from the enactment of the Tax Reform Act. Concurrent with the enactment of the Tax Reform Act, the SEC staff issued SAB 118, which allows companies to recognize the cumulative impact of the income tax effects triggered by the enactment of the new law over a period of up to 12 months in the reporting period in which the adjustment is identified. The Company will apply SAB 118 and continue to refine the measurement of its net deferred tax balance on December 22, 2017 during the preparation of its 2017 tax return as additional guidance and information becomes available. The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): 2017 2016 Deferred tax assets Allowance for loan losses $ 3,486 $ 5,937 Nonaccrual loan interest 346 718 Valuation allowance on other real estate owned 708 3,714 Unrealized loss on securities available for sale 417 799 Other 229 176 Gross deferred tax assets 5,186 11,344 Valuation allowance --- --- Total net deferred tax assets 5,186 11,344 Deferred tax liabilities Depreciation (977 ) (1,705 ) Prepaid expenses (183 ) (399 ) Unrealized gain on securities available for sale --- --- Other (241 ) (377 ) Gross deferred tax liabilities (1,401 ) (2,481 ) Net deferred tax asset $ 3,785 $ 8,863 There were no unrecognized tax benefits at December 31, 2017 or 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	12 Months Ended
	Dec. 31, 2017
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract]
COMMITMENTS AND OFF BALANCE-SHEET RISK	NOTE 15 – COMMITMENTS AND OFF BALANCE-SHEET RISK Some financial instruments are used to meet customer financing needs and to reduce exposure to interest rate changes. These financial instruments include commitments to extend credit and standby letters of credit. These involve, to varying degrees, credit and interest rate risk in excess of the amount reported in the financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment, and generally have fixed expiration dates. Standby letters of credit are conditional commitments to guarantee a customer’s performance to a third party. Exposure to credit loss if the other party does not perform is represented by the contractual amount for commitments to extend credit and standby letters of credit. Collateral or other security is normally not obtained for these financial instruments prior to their use and many of the commitments are expected to expire without being used. A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at year-end (dollars in thousands): 2017 2016 Commitments to make loans $ 111,681 $ 90,293 Letters of credit 11,317 13,823 Unused lines of credit 457,485 437,435 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $5.8 million and $19.8 million at December 31, 2017 and 2016, respectively. At year-end 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 the prime rate and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to the prime rate.

CONTINGENCIES

CONTINGENCIES	12 Months Ended
	Dec. 31, 2017
CONTINGENCIES [Abstract]
CONTINGENCIES	NOTE 16 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of December 31, 2017, there were no material pending legal proceedings to which we or any of our subsidiaries are a party or which any of our properties are the subject.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2017
SHAREHOLDERS' EQUITY [Abstract]
SHAREHOLDERS' EQUITY	NOTE 17 – SHAREHOLDERS' EQUITY Regulatory Capital The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. The prompt corrective action regulations provide five categories, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is only adequately capitalized, regulatory approval is required to, among other things, accept, renew or roll-over brokered deposits. If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required. In July 2013, the Board of Governors of the Federal Reserve Board and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (commonly known as Basel III). Under the final rules, which began for the Company and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements will increase for both the quantity and quality of capital held by the Company and the Bank. The rules include a new minimum common equity Tier 1 capital to risk-weighted assets ratio (CET1 ratio) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which when fully phased-in, effectively results in a minimum CET1 ratio of 7.0%. Basel III raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in), which effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures. Actual capital levels (dollars in thousands) and minimum required levels were as follows at year-end: Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer To Be Well Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2017 CET1 capital (to risk weighted assets) Consolidated $ 174,258 11.3 % $ 69,326 4.5 % $ 88,583 5.8 % N/A N/A Bank 208,356 13.5 69,257 4.5 88,495 5.8 $ 100,038 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 214,258 13.9 92,435 6.0 111,692 7.3 N/A N/A Bank 208,356 13.5 92,343 6.0 111,581 7.3 123,124 8.0 Total capital (to risk weighted assets) Consolidated 230,858 15.0 123,246 8.0 142,504 9.3 N/A N/A Bank 224,956 14.6 123,124 8.0 142,362 9.3 153,905 10.0 Tier 1 capital (to average assets) Consolidated 214,258 11.9 72,138 4.0 N/A N/A N/A N/A Bank 208,356 11.6 72,076 4.0 N/A N/A 90,095 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 December 31, 2017 and 2016, respectively, qualified as Tier 1 capital. The Bank was categorized as "well capitalized" at December 31, 2017 and 2016.

CONDENSED FINANCIAL STATEMENTS

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)	12 Months Ended
	Dec. 31, 2017
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) [Abstract]
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY)	NOTE 18 – CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) Following are condensed parent company only financial statements (dollars in thousands): CONDENSED BALANCE SHEETS 2017 2016 ASSETS Cash and cash equivalents $ 5,972 $ 5,542 Investment in Bank subsidiary 207,084 196,548 Investment in other subsidiaries 1,459 1,471 Other assets 73 134 Total assets $ 214,588 $ 203,695 LIABILITIES AND SHAREHOLDERS' EQUITY Long-term debt 41,238 41,238 Other liabilities 364 218 Total liabilities 41,602 41,456 Total shareholders' equity 172,986 162,239 Total liabilities and shareholders' equity $ 214,588 $ 203,695 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 2017 2016 2015 INCOME Dividends from subsidiaries $ 7,918 $ 6,238 $ 5,160 Other --- --- --- Total income 7,918 6,238 5,160 EXPENSE Interest expense 1,713 1,503 1,331 Other expense 655 665 592 Total expense 2,368 2,168 1,923 Income before income tax and equity in undistributed earnings of subsidiaries 5,550 4,070 3,237 Equity in undistributed earnings of subsidiaries 9,921 11,128 8,893 Income before income tax 15,471 15,198 12,130 Income tax benefit (821 ) (753 ) (664 ) Net income $ 16,292 $ 15,951 $ 12,794 Comprehensive income $ 16,485 $ 14,120 $ 13,080 CONDENSED STATEMENTS OF CASH FLOWS 2017 2016 2015 Cash flows from operating activities Net income $ 16,292 $ 15,951 $ 12,794 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (9,921 ) (11,128 ) (8,893 ) Stock compensation expense 55 33 18 Change in other assets 61 148 2,237 Change in other liabilities 146 38 (9 ) Net cash from operating activities 6,633 5,042 6,147 Cash flows from investing activities Investment in subsidiaries --- --- --- Net cash from investing activities --- --- --- Cash flows from financing activities Proceeds from issuance of common stock 68 --- --- Cash dividends paid (6,088 ) (4,049 ) (3,702 ) Common stock issuance costs --- --- --- Repurchases of shares (183 ) (269 ) (171 ) Net cash from financing activities (6,203 ) (4,318 ) (3,873 ) Net change in cash and cash equivalents 430 724 2,274 Cash and cash equivalents at beginning of year 5,542 4,818 2,544 Cash and cash equivalents at end of year $ 5,972 $ 5,542 $ 4,818

QUARTERLY FINANCIAL DATA (Unaud

QUARTERLY FINANCIAL DATA (Unaudited)	12 Months Ended
	Dec. 31, 2017
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
QUARTERLY FINANCIAL DATA (Unaudited)	NOTE 19 – QUARTERLY FINANCIAL DATA (Dollars in thousands except per share data) Earnings Per Common Share Interest Income Net Interest Income Provision for Loan Losses Net Income Basic Diluted 2017 First quarter $ 13,848 $ 12,583 $ (500 ) $ 4,460 $ 0.13 $ 0.13 Second quarter 14,042 12,705 (500 ) 4,762 0.14 0.14 Third quarter 14,626 13,138 (350 ) 4,876 0.15 0.15 Fourth quarter 15,160 13,517 --- 2,194 0.06 0.06 2016 First quarter $ 13,008 $ 11,738 $ (100 ) $ 3,495 $ 0.10 $ 0.10 Second quarter 12,873 11,608 (750 ) 3,745 0.11 0.11 Third quarter 13,122 11,902 (250 ) 4,603 0.14 0.14 Fourth quarter 13,496 12,292 (250 ) 4,108 0.12 0.12 Net income for the fourth quarter of 2017 included $2.5 million in federal income tax expense to revalue net deferred tax assets under the newly enacted federal income tax rate. Net income for the first quarter of 2016 was positively impacted by the distribution of $290,000 in net benefits from bank owned life insurance due to the death of a former employee. Net income for the third quarter of 2016 was positively impacted by $513,000 due to the realization of certain tax credits and other adjustments from the Company’s 2015 federal income tax return which was filed during the quarter.

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2017
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Nature of Operations and Principles of Consolidation	Nature of Operations and Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common securities of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are discussed in a separate note. Under generally accepted accounting principles, these trusts are not consolidated into the financial statements of the Company.
Use of Estimates	Use of Estimates
Concentration of Credit Risk	Concentration of Credit Risk
Cash Flow Reporting	Cash Flow Reporting
Securities	Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level yield method without anticipating prepayments. Gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available for sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments — Debt and Equity Instruments In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Management has determined that no OTTI charges were necessary during 2017, 2016 and 2015.
Federal Home Loan Bank (FHLB) Stock	Federal Home Loan Bank (FHLB) Stock
Loans Held for Sale	Loans Held for Sale
Loans	Loans Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the respective term of the loan using the level‑yield method without anticipating prepayments. Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost‑recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Allowance for Loan Losses	Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative environmental factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class as well as the loan risk grade assignment for commercial loans. At December 31, 2017, an 18 month (six quarter) annualized historical loss experience was used for commercial loans and a 12 month (four quarter) historical loss experience period was applied to residential mortgage and consumer loan portfolios. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative environmental factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, competition, increasing interest rates, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral.
Transfers of Financial Assets	Transfers of Financial Assets
Foreclosed Assets	Foreclosed Assets
Premises and Equipment	Premises and Equipment
Bank-Owned Life Insurance (BOLI)	Bank-Owned Life Insurance (BOLI):
Goodwill and Acquired Intangible Assets	Goodwill and Acquired Intangible Assets Acquired intangible assets consist of core deposit and customer relationship intangible assets arising from acquisitions. They are initially measured at fair value and then are amortized on an accelerated method over their estimated useful lives, which range from ten to sixteen years. The Company had no acquired intangible assets at December 31, 2017 and 2016.
Long-term Assets	Long-term Assets
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments
Mortgage Banking Derivatives	Mortgage Banking Derivatives Changes in the fair values of these interest rate lock and forward commitment derivatives are included in net gains on mortgage loans. The net fair value of mortgage banking derivatives was approximately $5,000 and $51,000 at December 31, 2017 and 2016, respectively.
Derivatives	Derivatives
Income Taxes	Income Taxes The Company recognizes a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
Earnings Per Common Share	Earnings Per Common Share
Comprehensive Income	Comprehensive Income
Loss Contingencies	Loss Contingencies
Restrictions on Cash	Restrictions on Cash
Stock Splits and Dividends	Stock Splits and Dividends
Dividend Restriction	Dividend Restriction
Fair Values of Financial Instruments	Fair Values of Financial Instruments
Segment Reporting	Segment Reporting
Reclassifications	Reclassifications
Adoption of New Accounting Standards	Adoption of New Accounting Standards 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 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities 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 . This ASU provides financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance eliminates the probable initial recognition threshold and, instead, reflects an entity’s current estimate of all expected credit losses. The new guidance broadens the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually to include forecasted information, as well as past events and current conditions. There is no specified method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Although an entity may still use its current systems and methods for recording the allowance for credit losses, under the new rules, the inputs used to record the allowance for credit losses generally will need to change to appropriately reflect an estimate of all expected credit losses and the use of reasonable and supportable forecasts. Additionally, credit losses on available-for-sale debt securities will now have to be presented as an allowance rather than as a write-down. This ASU is effective for fiscal years beginning after December 15, 2019, and for interim periods within those years. The Company has selected a software vendor for applying this new ASU, will begin implementing the software in the spring of 2018 and is currently evaluating the impact of this new ASU on its consolidated financial statements. 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). FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities Derivatives and Hedging

SECURITIES (Tables)

SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2017
SECURITIES [Abstract]
Amortized Cost and Fair Value of Securities	The amortized cost and fair value of securities were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2017 Available for Sale: U.S. Treasury and federal agency securities $ 103,309 $ --- $ (1,345 ) $ 101,964 U.S. Agency MBS and CMOs 23,797 7 (419 ) 23,385 Tax-exempt state and municipal bonds 41,684 519 (146 ) 42,057 Taxable state and municipal bonds 44,267 10 (542 ) 43,735 Corporate bonds and other debt securities 8,149 1 (41 ) 8,109 Other equity securities 1,500 --- (30 ) 1,470 $ 222,706 $ 537 $ (2,523 ) $ 220,720 Held to Maturity Tax-exempt state and municipal bonds $ 85,827 $ 806 $ (181 ) $ 86,452 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 December 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 $ 13,255 $ 13,257 $ 19,180 $ 19,169 Due from one to five years 23,772 24,069 121,100 119,712 Due from five to ten years 16,408 16,799 57,358 57,209 Due after ten years 32,392 32,327 23,568 23,160 $ 85,827 $ 86,452 $ 221,206 $ 219,250
Securities in Continuous Unrealized Loss Position	Securities with unrealized losses at December 31, 2017 and 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (dollars in thousands): Less than 12 Months 12 Months or More Total December 31, 2017 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 50,614 $ (439 ) $ 43,787 $ (876 ) $ 94,401 $ (1,315 ) U.S. Agency MBS and CMOs 16,719 (249 ) 6,228 (170 ) 22,947 (419 ) Tax-exempt state and municipal bonds 20,124 (243 ) 4,208 (82 ) 24,332 (325 ) Taxable state and municipal bonds 30,331 (279 ) 9,781 (265 ) 40,112 (544 ) Corporate bonds and other debt securities 8,021 (42 ) 2,250 (29 ) 10,271 (71 ) Other equity securities --- --- 1,470 (30 ) 1,470 (30 ) Total temporarily impaired $ 125,809 $ (1,252 ) $ 67,724 $ (1,452 ) $ 193,533 $ (2,704 ) 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)	12 Months Ended
	Dec. 31, 2017
LOANS [Abstract]
Portfolio Loans	Portfolio loans were as follows (dollars in thousands): December 31, 2017 December 31, 2016 Commercial and industrial $ 465,208 $ 449,342 Commercial real estate: Residential developed 11,888 11,970 Unsecured to residential developers 2,332 4,734 Vacant and unimproved 39,752 40,286 Commercial development 1,103 378 Residential improved 90,467 75,348 Commercial improved 298,714 289,478 Manufacturing and industrial 97,679 95,787 Total commercial real estate 541,935 517,981 Consumer Residential mortgage 224,452 217,614 Unsecured 226 396 Home equity 82,234 88,113 Other secured 6,254 7,366 Total consumer 313,166 313,489 Total loans 1,320,309 1,280,812 Allowance for loan losses (16,600 ) (16,962 ) $ 1,303,709 $ 1,263,850
Activity in Allowance for Loan Losses by Portfolio Segment	The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2017, 2016 and 2015 (dollars in thousands): 2017 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 Charge-offs (108 ) --- (158 ) --- (266 ) Recoveries 123 821 310 --- 1,254 Provision for loan losses 118 (934 ) (529 ) (5 ) (1,350 ) Ending Balance $ 6,478 $ 6,590 $ 3,494 $ 38 $ 16,600 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (205 ) --- (205 ) Recoveries 162 1,090 184 --- 1,436 Provision for loan losses 1,357 (2,844 ) 131 6 (1,350 ) Ending Balance $ 6,345 $ 6,703 $ 3,871 $ 43 $ 16,962 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs (172 ) (218 ) (312 ) --- (702 ) Recoveries 406 1,264 651 --- 2,321 Provision for loan losses (1,581 ) (1,279 ) (624 ) (16 ) (3,500 ) Ending Balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method	The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): December 31, 2017 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 497 $ 197 $ 514 $ --- $ 1,208 Collectively evaluated for impairment 5,981 6,393 2,980 38 15,392 Total ending allowance balance $ 6,478 $ 6,590 $ 3,494 $ 38 $ 16,600 Loans: Individually reviewed for impairment $ 6,402 $ 7,332 $ 8,345 $ --- $ 22,079 Collectively evaluated for impairment 458,806 534,603 304,821 --- 1,298,230 Total ending loans balance $ 465,208 $ 541,935 $ 313,166 $ --- $ 1,320,309 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 December 31, 2017 (dollars in thousands): December 31, 2017 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 3,438 $ 3,438 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved --- --- --- Commercial development 190 190 --- Residential improved 15 15 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 205 205 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- Total with no related allowance recorded $ 3,643 $ 3,643 $ --- With an allowance recorded: Commercial and industrial $ 2,964 $ 2,964 $ 497 Commercial real estate: Residential developed 179 179 4 Unsecured to residential developers --- --- --- Vacant and unimproved 126 126 3 Commercial development --- --- --- Residential improved 1,715 1,715 69 Commercial improved 4,928 4,928 119 Manufacturing and industrial 179 179 2 7,127 7,127 197 Consumer: Residential mortgage 6,638 6,638 409 Unsecured --- --- --- Home equity 1,707 1,707 105 Other secured --- --- --- 8,345 8,345 514 Total with an allowance recorded $ 18,436 $ 18,436 $ 1,208 Total $ 22,079 $ 22,079 $ 1,208 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 years ended December 31, 2017, 2016 and 2015 (dollars in thousands): 2017 2016 2015 Average of impaired loans during the period: Commercial and industrial $ 5,505 $ 6,468 $ 7,296 Commercial real estate: Residential developed 182 78 577 Unsecured to residential developers --- --- --- Vacant and unimproved 287 422 1,231 Commercial development 189 191 195 Residential improved 2,732 5,273 6,425 Commercial improved 5,768 7,332 15,106 Manufacturing and industrial 230 235 1,944 Consumer 9,889 12,602 14,259 Interest income recognized during impairment: Commercial and industrial 935 993 1,110 Commercial real estate 411 643 967 Consumer 390 444 497 Cash-basis interest income recognized Commercial and industrial 931 992 1,066 Commercial real estate 414 647 970 Consumer 392 443 502
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans	The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2017 and 2016 (dollars in thousands): December 31, 2017 Nonaccrual Over 90 days Accruing Commercial and industrial $ 4 $ --- Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 190 --- Residential improved 89 --- Commercial improved 106 --- Manufacturing and industrial --- --- 385 --- Consumer: Residential mortgage 2 --- Unsecured 4 --- Home equity --- --- Other secured --- --- 6 --- Total $ 395 $ --- 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 December 31, 2017 by class of loans (dollars in thousands): December 31, 2017 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 290 $ --- $ 290 $ 464,918 $ 465,208 Commercial real estate: Residential developed --- --- --- 11,888 11,888 Unsecured to residential developers --- --- --- 2,332 2,332 Vacant and unimproved --- --- --- 39,752 39,752 Commercial development --- 190 190 913 1,103 Residential improved --- 89 89 90,378 90,467 Commercial improved 125 --- 125 298,589 298,714 Manufacturing and industrial --- --- --- 97,679 97,679 125 279 404 541,531 541,935 Consumer: Residential mortgage 215 --- 215 224,237 224,452 Unsecured 10 --- 10 216 226 Home equity 76 --- 76 82,158 82,234 Other secured --- --- --- 6,254 6,254 301 --- 301 312,865 313,166 Total $ 716 $ 279 $ 995 $ 1,319,314 $ 1,320,309 The following table presents the aging of the recorded investment in past due loans as of December 31, 2016 by class of loans (dollars in thousands): December 31, 2016 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 425 $ 28 $ 453 $ 448,889 $ 449,342 Commercial real estate: Residential developed --- --- --- 11,970 11,970 Unsecured to residential developers --- --- --- 4,734 4,734 Vacant and unimproved --- --- --- 40,286 40,286 Commercial development --- 49 49 329 378 Residential improved 74 5 79 75,269 75,348 Commercial improved 478 --- 478 289,000 289,478 Manufacturing and industrial --- --- --- 95,787 95,787 552 54 606 517,375 517,981 Consumer: Residential mortgage 64 56 120 217,494 217,614 Unsecured --- --- --- 396 396 Home equity 187 --- 187 87,926 88,113 Other secured 81 --- 81 7,285 7,366 332 56 388 313,101 313,489 Total $ 1,309 $ 138 $ 1,447 $ 1,279,365 $ 1,280,812
Troubled Debt Restructurings	The following table presents information regarding TDRs as of December 31, 2017 and 2016 (dollars in thousands): 2017 2016 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 19 $ 6,403 25 $ 5,994 Commercial real estate 33 7,332 49 11,933 Consumer 99 8,345 116 12,059 151 $ 22,080 190 $ 29,986 The following table presents information related to accruing TDRs as of December 31, 2017, 2016 and 2015. The table presents the amount of accruing TDRs that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of December 31, 2017, 2016 and 2015 (dollars in thousands): 2017 2016 2015 Accruing TDR - nonaccrual at restructuring $ --- $ --- $ --- Accruing TDR - accruing at restructuring 16,809 25,665 33,691 Accruing TDR - upgraded to accruing after six consecutive payments 4,955 4,172 4,784 $ 21,764 $ 29,837 $ 38,475 The following tables present information regarding troubled debt restructurings executed during the years ended December 31, 2017, 2016 and 2015 (dollars in thousands): 2017 2016 2015 # of Loans Pre-TDR Balance Writedown Upon TDR # of Loans Pre-TDR Balance Writedown Upon TDR # of Loans Pre-TDR Balance Writedown Upon TDR Commercial and industrial --- $ --- $ --- --- $ --- $ --- 6 $ 745 $ --- Commercial real estate 1 1,018 --- 1 56 --- 3 301 --- Consumer 6 410 --- 7 289 --- 34 1,000 --- 7 $ 1,428 $ --- 8 345 $ --- 43 $ 2,046 $ ---
Risk Grade Category of Loans by Class of Loans	At year end, the risk grade category of commercial loans by class of loans was as follows (dollars in thousands): December 31, 2017 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 15,002 $ 137,774 $ 291,373 $ 15,170 $ 5,885 $ 4 $ --- $ 465,208 Commercial real estate: Residential developed --- --- 48 11,068 772 --- --- --- 11,888 Unsecured to residential developers --- --- --- 2,332 --- --- --- --- 2,332 Vacant and unimproved --- --- 19,244 17,332 3,176 --- --- --- 39,752 Commercial development --- --- 104 809 --- --- 190 --- 1,103 Residential improved --- --- 7,275 80,818 1,533 752 89 --- 90,467 Commercial improved --- 1,398 64,043 228,888 3,353 926 106 --- 298,714 Manufacturing & industrial --- 927 44,714 49,238 2,311 489 --- --- 97,679 $ --- $ 17,327 $ 273,202 $ 681,858 $ 26,315 $ 8,052 $ 389 $ --- $ 1,007,143 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 year-end (dollars in thousands): 2017 2016 Not classified as impaired $ 2,010 $ 2,608 Classified as impaired 6,431 7,498 Total commercial loans classified substandard or worse $ 8,441 $ 10,106
Recorded Investment in Consumer Loans Based on Payment Activity	The following tables present the recorded investment in consumer loans based on payment activity as of December 31, 2017 and 2016 (dollars in thousands): December 31, 2017 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 224,452 $ 226 $ 82,234 $ 6,254 Nonperforming --- --- --- --- Total $ 224,452 $ 226 $ 82,234 $ 6,254 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)	12 Months Ended
	Dec. 31, 2017
OTHER REAL ESTATE OWNED [Abstract]
Period-End Other Real Estate Owned	Other real estate owned was as follows (dollars in thousands): 2017 2016 2015 Beginning balance $ 22,864 $ 28,377 $ 43,071 Additions, transfers from loans 120 339 2,520 Proceeds from sales of other real estate owned (7,034 ) (5,339 ) (11,540 ) Valuation allowance reversal upon sale (7,367 ) (1,158 ) (4,748 ) Gain (loss) on sales of other real estate owned 557 645 (926 ) 9,140 22,864 28,377 Less: valuation allowance (3,373 ) (10,611 ) (10,805 ) Ending balance $ 5,767 $ 12,253 $ 17,572
Activity in Valuation Allowance	Activity in the valuation allowance was as follows (dollars in thousands): 2017 2016 2015 Beginning balance $ 10,611 $ 10,805 $ 14,829 Additions charged to expense 129 964 724 Reversals upon sale (7,367 ) (1,158 ) (4,748 ) Ending balance $ 3,373 $ 10,611 $ 10,805

FAIR VALUE (Tables)

FAIR VALUE (Tables)	12 Months Ended
	Dec. 31, 2017
FAIR VALUE [Abstract]
Assets Measured at Fair Value on a Recurring Basis	Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 U.S. Treasury and federal agency securities $ 101,964 $ --- $ 101,964 $ --- U.S. Agency MBS and CMOs 23,385 --- 23,385 --- Tax-exempt state and municipal bonds 42,057 --- 42,057 --- Taxable state and municipal bonds 43,735 --- 43,735 --- Corporate bonds and other debt securities 8,109 --- 8,109 --- Other equity securities 1,470 --- 1,470 --- Loans held for sale 1,208 --- 1,208 --- Interest rate swaps 197 --- --- 197 Interest rate swaps (197 ) --- --- (197 ) 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 13,187 --- 13,187 --- 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	Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 Impaired loans $ 2,278 $ --- $ --- $ 2,278 Other real estate owned 3,658 --- --- 3,658 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	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at year end (dollars in thousands). Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2017 Impaired Loans $ 2,278 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 15.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 3,658 Sales comparison approach Adjustment for differences between comparable sales 3.0 to 22.0 Income approach Capitalization rate 9.5 to 11.0 Asset Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2016 Impaired Loans $ 3,436 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 35.0 Income approach Capitalization rate 9.5 to 11.5 Other real estate owned 9,542 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 32.5 Income approach Capitalization rate 9.5 to 11.5
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented	The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at year end (dollars in thousands). Level in Fair Value Hierarchy 2017 2016 Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 34,945 $ 34,945 $ 27,690 $ 27,690 Cash equivalents Level 2 126,522 126,522 62,129 62,129 Securities held to maturity Level 3 85,827 86,452 69,378 69,849 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,301,431 1,296,633 1,260,414 1,247,842 Bank owned life insurance Level 3 40,243 40,243 39,274 39,274 Accrued interest receivable Level 2 4,680 4,680 4,092 4,092 Financial liabilities Deposits Level 2 (1,579,010 ) (1,579,016 ) (1,448,724 ) (1,448,692 ) Other borrowed funds Level 2 (92,118 ) (91,313 ) (84,173 ) (84,051 ) Long-term debt Level 2 (41,238 ) (36,546 ) (41,238 ) (36,112 ) Accrued interest payable Level 2 (604 ) (604 ) (282 ) (282 ) Off-balance sheet credit-related items Loan commitments --- --- --- ---

PREMISES AND EQUIPMENT - NET (T

PREMISES AND EQUIPMENT - NET (Tables)	12 Months Ended
	Dec. 31, 2017
PREMISES AND EQUIPMENT - NET [Abstract]
Premises and Equipment	Year-end premises and equipment were as follows (dollars in thousands): 2017 2016 Land $ 16,384 $ 18,227 Building 43,625 43,600 Leasehold improvements 782 779 Furniture and equipment 21,680 20,576 Construction in progress 243 358 82,714 83,540 Less accumulated depreciation (36,085 ) (33,514 ) $ 46,629 $ 50,026
Future Minimum Rental Expense under Noncancelable Operating Leases	Future minimum rental expense under noncancelable operating leases as of December 31, 2017 is as follows (dollars in thousands): 2018 $ 241 2019 238 2020 132 2021 --- 2022 --- Thereafter --- $ 611

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2017
DEPOSITS [Abstract]
Deposits at Period-End	Deposits at year-end were as follows (dollars in thousands): 2017 2016 Noninterest-bearing demand $ 490,583 $ 501,478 Interest bearing demand 408,865 340,715 Savings and money market accounts 587,931 532,853 Certificates of deposit 91,631 73,678 $ 1,579,010 $ 1,448,724
Maturity Distribution of Certificates of Deposit	The following table depicts the maturity distribution of certificates of deposit at December 31, 2017 (dollars in thousands): 2018 $ 62,875 2019 19,769 2020 6,477 2021 1,604 2022 906 Thereafter --- $ 91,631

OTHER BORROWED FUNDS (Tables)

OTHER BORROWED FUNDS (Tables)	12 Months Ended
	Dec. 31, 2017
OTHER BORROWED FUNDS [Abstract]
Advances from Federal Home Loan Bank	At year-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2017 Single maturity fixed rate advances $ 70,000 February 2018 to April 2021 1.59 % Amortizable mortgage advances 2,118 March 2018 to July 2018 3.78 % Putable Advances 20,000 November 2024 1.81 % $ 92,118 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 December 31, 2017 were as follows (in thousands): 2018 $ 52,118 2019 10,000 2020 --- 2021 10,000 2022 --- Thereafter 20,000 $ 92,118

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2017
RELATED PARTY TRANSACTIONS [Abstract]
Loans to Principal Officers, Directors, and Their Affiliates	Loans to principal officers, directors, and their affiliates were as follows (dollars in thousands). 2017 2016 Beginning balance $ 24,333 $ 17,351 New loans and renewals 31,560 13,223 Repayments and renewals (27,355 ) (12,648 ) Effect of changes in related parties --- 6,407 Ending balance $ 28,538 $ 24,333

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2017
STOCK-BASED COMPENSATION [Abstract]
Summary of Option Activity in the Plans	A summary of option activity in the plans is as follows (dollars in thousands, except per option data): Options Number Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life in Years Aggregate Intrinsic Value Outstanding at January 1, 2017 53,000 $ 8.57 --- --- Exercised (8,000 ) 8.57 --- --- Expired --- --- --- --- Outstanding at December 31, 2017 45,000 $ 8.57 0.05 $ 64,350 Exercisable at December 31, 2017 45,000 $ 8.57 0.05 $ 64,350 Information related to stock options during each year follows (dollars in thousands): 2017 2016 2015 Intrinsic value of options exercised $ --- $ --- $ --- Cash received from option exercises 68 --- --- Tax benefit realized from option exercises 8 --- ---
Changes in Nonvested Stock Awards	A summary of changes in the Company’s nonvested restricted stock awards for the year follows: Nonvested Stock Awards Shares Weighted- Average Grant-Date Fair Value Aggregate Intrinsic Value Outstanding at January 1, 2017 132,548 $ 6.88 $ 1,325,480 Granted 49,770 9.87 497,700 Vested (70,215 ) 6.26 702,150 Forfeited (7,055 ) 6.60 70,550 Outstanding at December 31, 2017 105,048 $ 8.73 $ 1,050,480

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 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 are as follows (dollars in thousands, except per share data): 2017 2016 2015 Net income available to common shares $ 16,292 $ 15,951 $ 12,794 Weighted average shares outstanding, including participating stock awards - 33,946,520 33,922,548 33,872,814 Dilutive potential common shares: Stock options 6,352 --- --- Stock warrants --- --- --- Weighted average shares outstanding - 33,952,872 33,922,548 33,872,814 Basic earnings per common share $ 0.48 $ 0.47 $ 0.38 Diluted earnings per common share $ 0.48 $ 0.47 $ 0.38

FEDERAL INCOME TAXES (Tables)

FEDERAL INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2017
FEDERAL INCOME TAXES [Abstract]
Income Tax Expense	Income tax expense was as follows (dollars in thousands): 2017 2016 2015 Current $ 5,759 $ 5,289 $ 2,335 Deferred 2,450 942 3,291 Effect of change in enacted federal income tax rate on deferred items 2,524 --- --- $ 10,733 $ 6,231 $ 5,626
Difference between Financial Statement Tax Expense (Benefit) and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income	The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): 2017 2016 2015 Statutory rate 35 % 35 % 35 % Statutory rate applied to income before taxes $ 9,459 $ 7,764 $ 6,447 Adjust for: Tax-exempt interest income (762 ) (620 ) (529 ) Bank-owned life insurance (339 ) (342 ) (232 ) Tax return credits and other adjustments (5 ) (513 ) --- Effect of change in enacted federal income tax rate on deferred items 2,524 --- --- Other, net (144 ) (58 ) (60 ) $ 10,733 $ 6,231 $ 5,626
Deferred Tax Assets and Liabilities	The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): 2017 2016 Deferred tax assets Allowance for loan losses $ 3,486 $ 5,937 Nonaccrual loan interest 346 718 Valuation allowance on other real estate owned 708 3,714 Unrealized loss on securities available for sale 417 799 Other 229 176 Gross deferred tax assets 5,186 11,344 Valuation allowance --- --- Total net deferred tax assets 5,186 11,344 Deferred tax liabilities Depreciation (977 ) (1,705 ) Prepaid expenses (183 ) (399 ) Unrealized gain on securities available for sale --- --- Other (241 ) (377 ) Gross deferred tax liabilities (1,401 ) (2,481 ) Net deferred tax asset $ 3,785 $ 8,863

COMMITMENTS AND OFF BALANCE-S40

COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables)	12 Months Ended
	Dec. 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 year-end (dollars in thousands): 2017 2016 Commitments to make loans $ 111,681 $ 90,293 Letters of credit 11,317 13,823 Unused lines of credit 457,485 437,435

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2017
SHAREHOLDERS' EQUITY [Abstract]
Actual Capital Levels and Minimum Required Levels	Actual capital levels (dollars in thousands) and minimum required levels were as follows at year-end: Actual Minimum Capital Adequacy Minimum Capital Adequacy With Capital Buffer To Be Well Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2017 CET1 capital (to risk weighted assets) Consolidated $ 174,258 11.3 % $ 69,326 4.5 % $ 88,583 5.8 % N/A N/A Bank 208,356 13.5 69,257 4.5 88,495 5.8 $ 100,038 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 214,258 13.9 92,435 6.0 111,692 7.3 N/A N/A Bank 208,356 13.5 92,343 6.0 111,581 7.3 123,124 8.0 Total capital (to risk weighted assets) Consolidated 230,858 15.0 123,246 8.0 142,504 9.3 N/A N/A Bank 224,956 14.6 123,124 8.0 142,362 9.3 153,905 10.0 Tier 1 capital (to average assets) Consolidated 214,258 11.9 72,138 4.0 N/A N/A N/A N/A Bank 208,356 11.6 72,076 4.0 N/A N/A 90,095 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

CONDENSED FINANCIAL STATEMENT42

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) (Tables)	12 Months Ended
	Dec. 31, 2017
CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY) [Abstract]
Condensed Balance Sheets	CONDENSED BALANCE SHEETS 2017 2016 ASSETS Cash and cash equivalents $ 5,972 $ 5,542 Investment in Bank subsidiary 207,084 196,548 Investment in other subsidiaries 1,459 1,471 Other assets 73 134 Total assets $ 214,588 $ 203,695 LIABILITIES AND SHAREHOLDERS' EQUITY Long-term debt 41,238 41,238 Other liabilities 364 218 Total liabilities 41,602 41,456 Total shareholders' equity 172,986 162,239 Total liabilities and shareholders' equity $ 214,588 $ 203,695
Condensed Statements of Income and Comprehensive Income	CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME 2017 2016 2015 INCOME Dividends from subsidiaries $ 7,918 $ 6,238 $ 5,160 Other --- --- --- Total income 7,918 6,238 5,160 EXPENSE Interest expense 1,713 1,503 1,331 Other expense 655 665 592 Total expense 2,368 2,168 1,923 Income before income tax and equity in undistributed earnings of subsidiaries 5,550 4,070 3,237 Equity in undistributed earnings of subsidiaries 9,921 11,128 8,893 Income before income tax 15,471 15,198 12,130 Income tax benefit (821 ) (753 ) (664 ) Net income $ 16,292 $ 15,951 $ 12,794 Comprehensive income $ 16,485 $ 14,120 $ 13,080
Condensed Statements of Cash Flows	CONDENSED STATEMENTS OF CASH FLOWS 2017 2016 2015 Cash flows from operating activities Net income $ 16,292 $ 15,951 $ 12,794 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed earnings of subsidiaries (9,921 ) (11,128 ) (8,893 ) Stock compensation expense 55 33 18 Change in other assets 61 148 2,237 Change in other liabilities 146 38 (9 ) Net cash from operating activities 6,633 5,042 6,147 Cash flows from investing activities Investment in subsidiaries --- --- --- Net cash from investing activities --- --- --- Cash flows from financing activities Proceeds from issuance of common stock 68 --- --- Cash dividends paid (6,088 ) (4,049 ) (3,702 ) Common stock issuance costs --- --- --- Repurchases of shares (183 ) (269 ) (171 ) Net cash from financing activities (6,203 ) (4,318 ) (3,873 ) Net change in cash and cash equivalents 430 724 2,274 Cash and cash equivalents at beginning of year 5,542 4,818 2,544 Cash and cash equivalents at end of year $ 5,972 $ 5,542 $ 4,818

QUARTERLY FINANCIAL DATA (Una43

QUARTERLY FINANCIAL DATA (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2017
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
Quarterly Financial Data	(Dollars in thousands except per share data) Earnings Per Common Share Interest Income Net Interest Income Provision for Loan Losses Net Income Basic Diluted 2017 First quarter $ 13,848 $ 12,583 $ (500 ) $ 4,460 $ 0.13 $ 0.13 Second quarter 14,042 12,705 (500 ) 4,762 0.14 0.14 Third quarter 14,626 13,138 (350 ) 4,876 0.15 0.15 Fourth quarter 15,160 13,517 --- 2,194 0.06 0.06 2016 First quarter $ 13,008 $ 11,738 $ (100 ) $ 3,495 $ 0.10 $ 0.10 Second quarter 12,873 11,608 (750 ) 3,745 0.11 0.11 Third quarter 13,122 11,902 (250 ) 4,603 0.14 0.14 Fourth quarter 13,496 12,292 (250 ) 4,108 0.12 0.12

SUMMARY OF SIGNIFICANT ACCOUN44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017USD ($)BranchLoanInterestRateSwapSegment	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Number of full service branch offices | Branch		26
Securities [Abstract]
OTTI charges		$ 0	$ 0	$ 0
Federal Home Loan Bank (FHLB) Stock [Abstract]
FHLB stock impaired		0
Loans Held-for-sale [Abstract]
Net unrealized gain on loans held for sale		$ 21,000	28,000
Loans [Abstract]
Period after which interest income on delinquent loans is discontinued		90 days
Past due period after which loans are charged off		120 days
Goodwill and Acquired Intangible Assets [Abstract]
Goodwill		$ 0	0
Finite-Lived Intangible Assets [Line Items]
Acquired intangible		0	0
Long-Term Assets [Abstract]
Impairment of long term assets		0	0
Mortgage Banking Derivatives [Abstract]
Net fair value of mortgage banking derivatives		$ 5,000	$ 51,000
Income Tax Disclosure [Line Items]
Corporate federal income tax rate		35.00%	35.00%	35.00%
Reduction in earnings resulting from re-measurement of deferred tax assets and liabilities		$ (2,500,000)
Restrictions on Cash [Abstract]
Cash on hand or on deposit with the Federal Reserve Bank		$ 6,084,000	$ 5,610,000
Stock Splits and Dividends [Abstract]
Stock dividends, excess of threshold		20.00%
Stock dividend threshold or less		20.00%
Segment Reporting [Abstract]
Number of operating segments | Segment		1
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Trust and investment management fees		$ 3,277,000	3,096,000	$ 2,927,000
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of intangible assets		10 years
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life of intangible assets		16 years
Residential Mortgage [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans		12 months
Plan [Member]
Income Tax Disclosure [Line Items]
Corporate federal income tax rate	21.00%
Building and Related Components [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful lives		5 years
Building and Related Components [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful lives		40 years
Furniture Fixture and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful lives		3 years
Furniture Fixture and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful lives		15 years
Commercial [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans		18 months
Threshold balance of loans evaluated for impairment		$ 500,000
Commercial [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment | Loan		6
Commercial Real Estate [Member]
Allowance for Loan Losses [Abstract]
Threshold balance of loans evaluated for impairment		$ 500,000
Commercial Real Estate [Member] | Minimum [Member]
Allowance for Loan Losses [Abstract]
Internal risk grading of loans evaluated for impairment | Loan		6
Consumer [Member]
Allowance for Loan Losses [Abstract]
Period of historical loss experience applied to loans for estimating allowance for general component of non-classified loans		12 months
Swap [Member] | Interest Rate Swap [Member]
Derivatives [Abstract]
Number of freestanding interest rate swaps | InterestRateSwap		2
Notional amount of agreements		$ 42,300,000	48,100,000
Derivative asset fair value		197,000	494,000
Trading liability fair value		$ 197,000	$ 494,000
Commercial Real Estate [Member]
Concentration Risk [Line Items]
Concentration of credit risk		41.00%
Commercial [Member]
Concentration Risk [Line Items]
Concentration of credit risk		35.00%
Residential Real Estate and Consumer Loans [Member]
Concentration Risk [Line Items]
Concentration of credit risk		24.00%
Accounting Standards Update 2014-09 [Member] | Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Trust and investment management fees		$ 60,000

SECURITIES (Details)

SECURITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Available for Sale [Abstract]
Amortized cost	$ 222,706	$ 186,717
Gross unrealized gains	537	353
Gross unrealized losses	(2,523)	(2,637)
Fair value	220,720	184,433
Proceeds from sale of available-for-sale securities	5,807	11,729	$ 20,625
Gain on sales of securities	3	124	129
Reclassifications of net gains (net of tax)	2	80	$ 84
Held to Maturity [Abstract]
Amortized cost	85,827	69,378
Fair value	86,452	69,849
U.S. Treasury and Federal Agency Securities [Member]
Available for Sale [Abstract]
Amortized cost	103,309	85,582
Gross unrealized gains	0	49
Gross unrealized losses	(1,345)	(1,281)
Fair value	101,964	84,350
U.S. Agency MBS and CMOs [Member]
Available for Sale [Abstract]
Amortized cost	23,797	12,037
Gross unrealized gains	7	11
Gross unrealized losses	(419)	(231)
Fair value	23,385	11,817
Tax-Exempt State and Municipal Bonds [Member]
Available for Sale [Abstract]
Amortized cost	41,684	39,578
Gross unrealized gains	519	212
Gross unrealized losses	(146)	(603)
Fair value	42,057	39,187
Taxable State and Municipal Bonds [Member]
Available for Sale [Abstract]
Amortized cost	44,267	34,255
Gross unrealized gains	10	65
Gross unrealized losses	(542)	(437)
Fair value	43,735	33,883
Corporate Bonds and Other Debt Securities [Member]
Available for Sale [Abstract]
Amortized cost	8,149	13,765
Gross unrealized gains	1	16
Gross unrealized losses	(41)	(55)
Fair value	8,109	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	85,827	69,378
Gross unrealized gains	806	573
Gross unrealized losses	(181)	(102)
Fair value	$ 86,452	$ 69,849

SECURITIES, Contractual Maturit

SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Held-to-Maturity Securities, Amortized Cost [Abstract]
Due in one year or less	$ 13,255
Due from one to five years	23,772
Due from five to ten years	16,408
Due after ten years	32,392
Amortized cost	85,827	$ 69,378
Held-to-Maturity Securities, Fair Value [Abstract]
Due in one year or less	13,257
Due from one to five years	24,069
Due from five to ten years	16,799
Due after ten years	32,327
Fair value	86,452	$ 69,849
Available-for-Sale Securities, Amortized Cost [Abstract]
Due in one year or less	19,180
Due from one to five years	121,100
Due from five to ten years	57,358
Due after ten years	23,568
Amortized cost	221,206
Available-for-Sale Securities, Fair Value [Abstract]
Due in one year or less	19,169
Due from one to five years	119,712
Due from five to ten years	57,209
Due after ten years	23,160
Fair value	$ 219,250

SECURITIES, Continuous Unrealiz

SECURITIES, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	$ 125,809	$ 149,187
12 months or more	67,724	5,225
Total	193,533	154,412
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(1,252)	(2,717)
12 months or more	(1,452)	(22)
Total	(2,704)	(2,739)
U.S. Treasury and Federal Agency Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	50,614	59,129
12 months or more	43,787	3,053
Total	94,401	62,182
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(439)	(1,271)
12 months or more	(876)	(10)
Total	(1,315)	(1,281)
U.S. Agency MBS and CMOs [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	16,719	10,702
12 months or more	6,228	0
Total	22,947	10,702
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(249)	(231)
12 months or more	(170)	0
Total	(419)	(231)
Tax-Exempt State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	20,124	49,508
12 months or more	4,208	1,672
Total	24,332	51,180
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(243)	(698)
12 months or more	(82)	(7)
Total	(325)	(705)
Taxable State and Municipal Bonds [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	30,331	22,633
12 months or more	9,781	0
Total	40,112	22,633
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(279)	(437)
12 months or more	(265)	0
Total	(544)	(437)
Corporate Bonds and Other Debt Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	8,021	5,745
12 months or more	2,250	500
Total	10,271	6,245
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	(42)	(50)
12 months or more	(29)	(5)
Total	(71)	(55)
Other Equity Securities [Member]
Securities in continuous unrealized losses position, fair value [Abstract]
Less than 12 months	0	1,470
12 months or more	1,470	0
Total	1,470	1,470
Securities in continuous unrealized loss position, unrealized losses [Abstract]
Less than 12 months	0	(30)
12 months or more	(30)	0
Total	$ (30)	$ (30)

SECURITIES, Other-Than-Temporar

SECURITIES, Other-Than-Temporary-Impairment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SECURITIES [Abstract]
OTTI charges	$ 0	$ 0	$ 0
Securities pledged as security for public deposits, letters of credit and for other purposes required or permitted by law	$ 2,000,000	$ 2,000,000

LOANS (Details)

LOANS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Portfolio loans [Abstract]
Total loans	$ 1,320,309	$ 1,280,812
Allowance for loan losses	(16,600)	(16,962)	$ (17,081)	$ (18,962)
Net loans	1,303,709	1,263,850
Commercial and Industrial [Member]
Portfolio loans [Abstract]
Total loans	465,208	449,342
Allowance for loan losses	(6,478)	(6,345)	(4,826)	(6,173)
Commercial Real Estate [Member]
Portfolio loans [Abstract]
Total loans	541,935	517,981
Allowance for loan losses	(6,590)	(6,703)	(8,457)	(8,690)
Commercial Real Estate [Member] | Residential Developed [Member]
Portfolio loans [Abstract]
Total loans	11,888	11,970
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
Portfolio loans [Abstract]
Total loans	2,332	4,734
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
Portfolio loans [Abstract]
Total loans	39,752	40,286
Commercial Real Estate [Member] | Commercial Development [Member]
Portfolio loans [Abstract]
Total loans	1,103	378
Commercial Real Estate [Member] | Residential Improved [Member]
Portfolio loans [Abstract]
Total loans	90,467	75,348
Commercial Real Estate [Member] | Commercial Improved [Member]
Portfolio loans [Abstract]
Total loans	298,714	289,478
Commercial Real Estate [Member] | Manufacturing and Industrial [Member]
Portfolio loans [Abstract]
Total loans	97,679	95,787
Consumer [Member]
Portfolio loans [Abstract]
Total loans	313,166	313,489
Allowance for loan losses	(3,494)	(3,871)	$ (3,761)	$ (4,046)
Consumer [Member] | Residential Mortgage [Member]
Portfolio loans [Abstract]
Total loans	224,452	217,614
Consumer [Member] | Unsecured [Member]
Portfolio loans [Abstract]
Total loans	226	396
Consumer [Member] | Home Equity [Member]
Portfolio loans [Abstract]
Total loans	82,234	88,113
Consumer [Member] | Other Secured [Member]
Portfolio loans [Abstract]
Total loans	$ 6,254	$ 7,366

LOANS, Allowance for Loans Loss

LOANS, Allowance for Loans Losses by Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				$ 16,962				$ 17,081	$ 16,962	$ 17,081	$ 18,962
Charge-offs									(266)	(205)	(702)
Recoveries									1,254	1,436	2,321
Provision for loan losses	$ 0	$ (350)	$ (500)	(500)	$ (250)	$ (250)	$ (750)	(100)	(1,350)	(1,350)	(3,500)
Ending balance	16,600				16,962				16,600	16,962	17,081
Commercial and Industrial [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				6,345				4,826	6,345	4,826	6,173
Charge-offs									(108)	0	(172)
Recoveries									123	162	406
Provision for loan losses									118	1,357	(1,581)
Ending balance	6,478				6,345				6,478	6,345	4,826
Commercial Real Estate [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				6,703				8,457	6,703	8,457	8,690
Charge-offs									0	0	(218)
Recoveries									821	1,090	1,264
Provision for loan losses									(934)	(2,844)	(1,279)
Ending balance	6,590				6,703				6,590	6,703	8,457
Consumer [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				3,871				3,761	3,871	3,761	4,046
Charge-offs									(158)	(205)	(312)
Recoveries									310	184	651
Provision for loan losses									(529)	131	(624)
Ending balance	3,494				3,871				3,494	3,871	3,761
Unallocated [Member]
Allowance for loan losses by portfolio [Roll Forward]
Beginning balance				$ 43				$ 37	43	37	53
Charge-offs									0	0	0
Recoveries									0	0	0
Provision for loan losses									(5)	6	(16)
Ending balance	$ 38				$ 43				$ 38	$ 43	$ 37

LOANS, Allowance for Loan Losse

LOANS, Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	$ 1,208	$ 1,696
Collectively evaluated for impairment	15,392	15,266
Total ending allowance balance	16,600	16,962	$ 17,081	$ 18,962
Loans [Abstract]
Individually reviewed for impairment	22,079	29,654
Collectively evaluated for impairment	1,298,230	1,251,158
Total ending loans balance	1,320,309	1,280,812
Commercial and Industrial [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	497	605
Collectively evaluated for impairment	5,981	5,740
Total ending allowance balance	6,478	6,345	4,826	6,173
Loans [Abstract]
Individually reviewed for impairment	6,402	5,994
Collectively evaluated for impairment	458,806	443,348
Total ending loans balance	465,208	449,342
Commercial Real Estate [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	197	368
Collectively evaluated for impairment	6,393	6,335
Total ending allowance balance	6,590	6,703	8,457	8,690
Loans [Abstract]
Individually reviewed for impairment	7,332	11,934
Collectively evaluated for impairment	534,603	506,047
Total ending loans balance	541,935	517,981
Consumer [Member]
Ending allowance attributable to loans [Abstract]
Individually reviewed for impairment	514	723
Collectively evaluated for impairment	2,980	3,148
Total ending allowance balance	3,494	3,871	3,761	4,046
Loans [Abstract]
Individually reviewed for impairment	8,345	11,726
Collectively evaluated for impairment	304,821	301,763
Total ending loans balance	313,166	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	$ 37	$ 53
Loans [Abstract]
Individually reviewed for impairment	0	0
Collectively evaluated for impairment	0	0
Total ending loans balance	$ 0	$ 0

LOANS, Impaired Loans (Details)

LOANS, Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
With no related allowance recorded [Abstract]
Unpaid principal balance	$ 3,643	$ 2,675
Recorded investment	3,643	2,675
With related allowance recorded [Abstract]
Unpaid principal balance	18,436	26,979
Recorded investment	18,436	26,979
Allowance allocated	1,208	1,696
Total [Abstract]
Unpaid principal balance	22,079	29,654
Recorded investment	22,079	29,654
Allowance allocated	1,208	1,696
Commercial and Industrial [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	3,438	2,298
Recorded investment	3,438	2,298
With related allowance recorded [Abstract]
Unpaid principal balance	2,964	3,696
Recorded investment	2,964	3,696
Allowance allocated	497	605
Total [Abstract]
Allowance allocated	497	605
Impaired loans [Abstract]
Average of impaired loans	5,505	6,468	$ 7,296
Interest income recognized during impairment	935	993	1,110
Cash-basis interest income recognized	931	992	1,066
Commercial Real Estate [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	205	377
Recorded investment	205	377
With related allowance recorded [Abstract]
Unpaid principal balance	7,127	11,557
Recorded investment	7,127	11,557
Allowance allocated	197	368
Total [Abstract]
Allowance allocated	197	368
Impaired loans [Abstract]
Interest income recognized during impairment	411	643	967
Cash-basis interest income recognized	414	647	970
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	179	187
Recorded investment	179	187
Allowance allocated	4	4
Total [Abstract]
Allowance allocated	4	4
Impaired loans [Abstract]
Average of impaired loans	182	78	577
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
Allowance allocated	0	0
Total [Abstract]
Allowance allocated	0	0
Impaired loans [Abstract]
Average of impaired loans	0	0	0
Commercial Real Estate [Member] | Vacant and Unimproved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	0	0
Recorded investment	0	0
With related allowance recorded [Abstract]
Unpaid principal balance	126	387
Recorded investment	126	387
Allowance allocated	3	9
Total [Abstract]
Allowance allocated	3	9
Impaired loans [Abstract]
Average of impaired loans	287	422	1,231
Commercial Real Estate [Member] | Commercial Development [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	190	0
Recorded investment	190	0
With related allowance recorded [Abstract]
Unpaid principal balance	0	189
Recorded investment	0	189
Allowance allocated	0	6
Total [Abstract]
Allowance allocated	0	6
Impaired loans [Abstract]
Average of impaired loans	189	191	195
Commercial Real Estate [Member] | Residential Improved [Member]
With no related allowance recorded [Abstract]
Unpaid principal balance	15	27
Recorded investment	15	27
With related allowance recorded [Abstract]
Unpaid principal balance	1,715	4,687
Recorded investment	1,715	4,687
Allowance allocated	69	216
Total [Abstract]
Allowance allocated	69	216
Impaired loans [Abstract]
Average of impaired loans	2,732	5,273	6,425
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	4,928	5,879
Recorded investment	4,928	5,879
Allowance allocated	119	128
Total [Abstract]
Allowance allocated	119	128
Impaired loans [Abstract]
Average of impaired loans	5,768	7,332	15,106
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	179	228
Recorded investment	179	228
Allowance allocated	2	5
Total [Abstract]
Allowance allocated	2	5
Impaired loans [Abstract]
Average of impaired loans	230	235	1,944
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	8,345	11,726
Recorded investment	8,345	11,726
Allowance allocated	514	723
Total [Abstract]
Allowance allocated	514	723
Impaired loans [Abstract]
Average of impaired loans	9,889	12,602	14,259
Interest income recognized during impairment	390	444	497
Cash-basis interest income recognized	392	443	$ 502
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	6,638	7,523
Recorded investment	6,638	7,523
Allowance allocated	409	464
Total [Abstract]
Allowance allocated	409	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	1,707	4,203
Recorded investment	1,707	4,203
Allowance allocated	105	259
Total [Abstract]
Allowance allocated	105	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) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract]
Nonaccrual	$ 395	$ 300
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	995	1,447
Loans not past due	1,319,314	1,279,365
Total ending loans balance	1,320,309	1,280,812
30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	716	1,309
Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	279	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	4	36
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	290	453
Loans not past due	464,918	448,889
Total ending loans balance	465,208	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	290	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	0	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	385	183
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	404	606
Loans not past due	541,531	517,375
Total ending loans balance	541,935	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	125	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	279	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	11,888	11,970
Total ending loans balance	11,888	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	2,332	4,734
Total ending loans balance	2,332	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	39,752	40,286
Total ending loans balance	39,752	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	190	49
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	190	49
Loans not past due	913	329
Total ending loans balance	1,103	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	0	0
Commercial Real Estate [Member] | Commercial Development [Member] | Greater Than 90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	190	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	89	6
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	89	79
Loans not past due	90,378	75,269
Total ending loans balance	90,467	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	0	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	89	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	106	128
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	125	478
Loans not past due	298,589	289,000
Total ending loans balance	298,714	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	125	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	97,679	95,787
Total ending loans balance	97,679	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	6	81
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	301	388
Loans not past due	312,865	313,101
Total ending loans balance	313,166	313,489
Consumer [Member] | 30-90 Days [Member]
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	301	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	215	120
Loans not past due	224,237	217,494
Total ending loans balance	224,452	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	215	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	4	16
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	10	0
Loans not past due	216	396
Total ending loans balance	226	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	10	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	0	7
Over 90 days accruing	0	0
Aging of recorded investment in past due loans by class of loans [Abstract]
Total past due	76	187
Loans not past due	82,158	87,926
Total ending loans balance	82,234	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	76	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	0	81
Loans not past due	6,254	7,285
Total ending loans balance	6,254	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	0	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 Restructurings (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2014USD ($)	Dec. 31, 2017USD ($)LoanPaymentNote	Dec. 31, 2016USD ($)Loan	Dec. 31, 2015USD ($)Loan
LOANS [Abstract]
Specific reserves allocated to customers with modified term loans in troubled debt restructurings		$ 1,208	$ 1,696
Number of consecutive payments before nonaccrual restructured loan is upgraded | Payment		6
Reduction in loans designated as TDR and impaired	$ 5,900
Number of months of performance before a loan is removed from TDR		6 months
Troubled debt restructurings [Abstract]
Number of loans | Loan		151	190
Outstanding recorded balance		$ 22,080	$ 29,986
Accruing troubled debt restructurings [Abstract]
Accruing TDR - nonaccrual at restructuring		0	0	$ 0
Accruing TDR - accruing at restructuring		16,809	25,665	33,691
Accruing TDR - upgraded to accruing after six consecutive payments		4,955	4,172	4,784
Total		$ 21,764	$ 29,837	$ 38,475
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan		7	8	43
Pre-TDR balance		$ 1,428	$ 345	$ 2,046
Writedown upon TDR		$ 0	$ 0	$ 0
Commercial Loans [Member] | A-B Note Structure [Member]
Financing Receivable, Modifications [Line Items]
Number of notes into which original note is separated in modification | Note		2
Commercial and Industrial [Member]
Troubled debt restructurings [Abstract]
Number of loans | Loan		19	25
Outstanding recorded balance		$ 6,403	$ 5,994
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan		0	0	6
Pre-TDR balance		$ 0	$ 0	$ 745
Writedown upon TDR		$ 0	$ 0	$ 0
Commercial Real Estate [Member]
Troubled debt restructurings [Abstract]
Number of loans | Loan		33	49
Outstanding recorded balance		$ 7,332	$ 11,933
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan		1	1	3
Pre-TDR balance		$ 1,018	$ 56	$ 301
Writedown upon TDR		$ 0	$ 0	$ 0
Consumer [Member]
Troubled debt restructurings [Abstract]
Number of loans | Loan		99	116
Outstanding recorded balance		$ 8,345	$ 12,059
Troubled debt restructurings executed during current period [Abstract]
Number of loans | Loan		6	7	34
Pre-TDR balance		$ 410	$ 289	$ 1,000
Writedown upon TDR		$ 0	$ 0	$ 0

LOANS, Credit Quality Indicator

LOANS, Credit Quality Indicators (Details) $ in Thousands	12 Months Ended
	Dec. 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	$ 1,320,309	$ 1,280,812
Commercial Loans [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 1,007,143	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	17,327	31,717
Commercial Loans [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	273,202	250,321
Commercial Loans [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	681,858	641,339
Commercial Loans [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	26,315	33,840
Commercial Loans [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	8,052	9,887
Commercial Loans [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	389	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	465,208	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	15,002	27,619
Commercial and Industrial [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	137,774	118,243
Commercial and Industrial [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	291,373	282,527
Commercial and Industrial [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	15,170	14,610
Commercial and Industrial [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	5,885	6,307
Commercial and Industrial [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	4	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	541,935	517,981
Commercial Real Estate [Member] | Residential Developed [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	11,888	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	48	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	11,068	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	772	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	2,332	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	2,332	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	39,752	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	19,244	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	17,332	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	3,176	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	1,103	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	104	0
Commercial Real Estate [Member] | Commercial Development [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	809	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	0	189
Commercial Real Estate [Member] | Commercial Development [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	190	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	90,467	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	7,275	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	80,818	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	1,533	2,628
Commercial Real Estate [Member] | Residential Improved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	752	1,657
Commercial Real Estate [Member] | Residential Improved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	89	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	298,714	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	1,398	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	64,043	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	228,888	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	3,353	9,084
Commercial Real Estate [Member] | Commercial Improved [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	926	1,125
Commercial Real Estate [Member] | Commercial Improved [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	106	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 and Industrial [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	97,679	95,787
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Excellent [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Above Average [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	927	1,665
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Good Quality [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	44,714	38,719
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Acceptable Risk [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	49,238	51,718
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Marginally Acceptable [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	2,311	3,076
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Substandard [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	489	609
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Doubtful [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	0	0
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Loss [Member]
Risk grade category of commercial loans by class of loans [Abstract]
Total loans	$ 0	$ 0

LOANS, Commercial Loans Classif

LOANS, Commercial Loans Classified as Substandard or Worse (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Classified as impaired	$ 22,079	$ 29,654
Total ending loans balance	1,320,309	1,280,812
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total ending loans balance	1,007,143	967,323
Commercial Loans [Member] | Substandard or Worse [Member]
Financing Receivable, Recorded Investment [Line Items]
Not classified as impaired	2,010	2,608
Classified as impaired	6,431	7,498
Total ending loans balance	$ 8,441	$ 10,106

LOANS, Recorded Investment in C

LOANS, Recorded Investment in Consumer Loans Based on Payment Activity (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1,320,309	$ 1,280,812
Consumer Loan [Member] | Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	224,452	217,614
Consumer Loan [Member] | Residential Mortgage [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	224,452	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	226	396
Consumer Loan [Member] | Consumer Unsecured [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	226	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	82,234	88,113
Consumer Loan [Member] | Home Equity [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	82,234	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	6,254	7,366
Consumer Loan [Member] | Consumer Other [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	6,254	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 ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other real estate owned [Roll Forward]
Beginning balance	$ 22,864,000	$ 28,377,000	$ 43,071,000
Additions, transfers from loans	120,000	339,000	2,520,000
Proceeds from sales of other real estate owned	(7,034,000)	(5,339,000)	(11,540,000)
Valuation allowance reversal upon sale	(7,367,000)	(1,158,000)	(4,748,000)
Gain (loss) on sales of other real estate owned	557,000	645,000	(926,000)
Ending balance, gross	9,140,000	22,864,000	28,377,000
Less: valuation allowance	(3,373,000)	(10,611,000)	(10,805,000)
Ending balance	5,767,000	12,253,000	17,572,000
Activity in valuation allowance [Roll Forward]
Foreclosed residential real estate properties included in other real estate owned	59,500
Consumer mortgage loans in process of foreclosure	0
Valuation Allowance, Real Estate Owned [Member]
Activity in valuation allowance [Roll Forward]
Beginning balance	10,611,000	10,805,000	14,829,000
Additions charged to expense	129,000	964,000	724,000
Reversals upon sale	(7,367,000)	(1,158,000)	(4,748,000)
Ending balance	$ 3,373,000	$ 10,611,000	$ 10,805,000

FAIR VALUE, Assets Measured at

FAIR VALUE, Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	$ 220,720	$ 184,433
U.S. Treasury and Federal Agency Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	101,964	84,350
U.S. Agency MBS and CMOs [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	23,385	11,817
Tax-Exempt State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	42,057	39,187
Taxable State and Municipal Bonds [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	43,735	33,883
Corporate Bonds and Other Debt Securities [Member]
Asset measured at fair value on recurring basis [Abstract]
Available-for-sale securities	8,109	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	1,208	2,181
Interest rate swaps	197	494
Interest rate swaps	(197)	(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	1,208	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	197	494
Interest rate swaps	(197)	(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	101,964	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	101,964	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	23,385	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	23,385	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	42,057	13,187
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	42,057	13,187
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	43,735	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	43,735	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	8,109	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	8,109	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	2,278	3,436
Other real estate owned	3,658	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	2,278	3,436
Other real estate owned	$ 3,658	$ 9,542

FAIR VALUE, Quantitative Inform

FAIR VALUE, Quantitative Information about Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Impaired Loans [Member] | Sales Comparison Approach [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset fair value	$ 2,278	$ 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	2.00%	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	15.00%	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	$ 3,658	$ 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	3.00%	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	22.00%	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	11.00%	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	Dec. 31, 2017	Dec. 31, 2016
Financial assets [Abstract]
Cash and due from banks	$ 34,945	$ 27,690
Securities held to maturity	86,452	69,849
Bank-owned life insurance	40,243	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	34,945	27,690
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash and due from banks	34,945	27,690
Significant Other Observable Inputs (Level 2) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Cash equivalents	126,522	62,129
Loans, net	1,301,431	1,260,414
Accrued interest receivable	4,680	4,092
Financial liabilities [Abstract]
Deposits	(1,579,010)	(1,448,724)
Other borrowed funds	(92,118)	(84,173)
Long-term debt	(41,238)	(41,238)
Accrued interest payable	(604)	(282)
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member]
Financial assets [Abstract]
Cash equivalents	126,522	62,129
Loans, net	1,296,633	1,247,842
Accrued interest receivable	4,680	4,092
Financial liabilities [Abstract]
Deposits	(1,579,016)	(1,448,692)
Other borrowed funds	(91,313)	(84,051)
Long-term debt	(36,546)	(36,112)
Accrued interest payable	(604)	(282)
Significant Unobservable Inputs (Level 3) [Member] | Carrying Amount [Member]
Financial assets [Abstract]
Securities held to maturity	85,827	69,378
Bank-owned life insurance	40,243	39,274
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member]
Financial assets [Abstract]
Securities held to maturity	86,452	69,849
Bank-owned life insurance	$ 40,243	$ 39,274

PREMISES AND EQUIPMENT - NET (D

PREMISES AND EQUIPMENT - NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Premises and equipment [Abstract]
Premises and equipment, gross	$ 82,714,000	$ 83,540,000
Less accumulated depreciation	(36,085,000)	(33,514,000)
Premises and equipment, net	46,629,000	50,026,000
Depreciation expense	2,606,000	2,618,000	$ 2,608,000
Total rental expense for all operating leases	410,000	398,000	$ 417,000
Future minimum rental expense under noncancelable operating leases [Abstract]
2,018	241,000
2,019	238,000
2,020	132,000
2,021	0
2,022	0
Thereafter	0
Total future payments	611,000
Land [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	16,384,000	18,227,000
Building [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	43,625,000	43,600,000
Leasehold Improvements [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	782,000	779,000
Furniture and Equipment [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	21,680,000	20,576,000
Construction in Progress [Member]
Premises and equipment [Abstract]
Premises and equipment, gross	$ 243,000	$ 358,000

DEPOSITS (Details)

DEPOSITS (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Summary of deposit [Abstract]
Noninterest-bearing demand	$ 490,583	$ 501,478
Interest bearing demand	408,865	340,715
Savings and money market accounts	587,931	532,853
Certificates of deposit	91,631	73,678
Total deposits	1,579,010	1,448,724
Maturities distribution of time deposits [Abstract]
2,018	62,875
2,019	19,769
2,020	6,477
2,021	1,604
2,022	906
Thereafter	0
Total certificate of deposit	91,631
FDIC insurance limit on deposit accounts	250	250
Time deposits that exceed FDIC insurance limit	$ 25,000	$ 17,400

OTHER BORROWED FUNDS, Federal H

OTHER BORROWED FUNDS, Federal Home Loan Bank Advances (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 92,118,000	$ 84,173,000
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances	493,200,000	425,000,000
Federal Home Loan Bank Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	92,118,000	84,173,000
Federal Home Loan Bank Advances [Member] | Single Maturity Fixed Rate Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 70,000,000	$ 80,000,000
Range of maturities, earliest	2,018	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	1.59%	1.60%
Federal Home Loan Bank Advances [Member] | Amortizable Mortgage Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 2,118,000	$ 4,173,000
Range of maturities, earliest	2,018	2,018
Range of maturities, last	2,018	2,018
Federal Home Loan Bank Advances [Member] | Amortizable Mortgage Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	3.78%	3.78%
Federal Home Loan Bank Advances [Member] | Putable Advances [Member]
Advances from Federal Home Loan Bank [Abstract]
Advance amount	$ 20,000,000
Range of maturities	2,024
Federal Home Loan Bank Advances [Member] | Putable Advances [Member] | Weighted Average [Member]
Advances from Federal Home Loan Bank [Abstract]
Interest rate	1.81%

OTHER BORROWED FUNDS, Scheduled

OTHER BORROWED FUNDS, Scheduled Repayments of FHLB Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Scheduled repayments of FHLB advances [Abstract]
2,018	$ 52,118
2,019	10,000
2,020	0
2,021	10,000
2,022	0
Thereafter	20,000
Total	$ 92,118	$ 84,173

OTHER BORROWED FUNDS, Federal R

OTHER BORROWED FUNDS, Federal Reserve Bank Borrowings (Details) - Federal Reserve Bank Borrowings [Member] - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Borrowings outstanding	$ 0	$ 0
Unused borrowing capacity	11	18.1
Commercial and mortgage loans pledged to the Federal Reserve Bank	$ 13.2	$ 20.7

LONG TERM DEBT (Details)

LONG TERM DEBT (Details)	12 Months Ended
	Dec. 31, 2017USD ($)Payment	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	$ 40,000,000
Proceeds from debenture issued	$ 41,238,000
Number of interest deferrals on consecutive quarterly payments | Payment	20
Long-term debt	$ 41,238,000	$ 41,238,000
Other assets	4,639,000	5,286,000
Preferred Securities issued qualified as Tier 1 capital for regulatory capital purposes	123,246,000	118,655,000
Common Securities [Member]
Debt Instrument [Line Items]
Other assets	$ 1,238,000	1,238,000
Macatawa Statutory Trust I [Member]
Debt Instrument [Line Items]
Description of variable rate basis	three-month LIBOR
Maturity date	Jul. 15, 2033
Macatawa Statutory Trust I [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on three-month LIBOR	3.05%
Term of variable rate	3 months
Macatawa Statutory Trust I [Member] | Common Securities [Member]
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	$ 619,000
Macatawa Statutory Trust II [Member]
Debt Instrument [Line Items]
Description of variable rate basis	three-month LIBOR
Maturity date	Mar. 18, 2034
Macatawa Statutory Trust II [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread on three-month LIBOR	2.75%
Term of variable rate	3 months
Macatawa Statutory Trust II [Member] | Common Securities [Member]
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	$ 619,000
Preferred Securities [Member]
Debt Instrument [Line Items]
Preferred Securities issued qualified as Tier 1 capital for regulatory capital purposes	40,000,000	$ 40,000,000
Preferred Securities [Member] | Macatawa Statutory Trust I [Member]
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	20,000,000
Preferred Securities [Member] | Macatawa Statutory Trust II [Member]
Debt Instrument [Line Items]
Aggregate liquidation amount of pooled trust preferred securities	$ 20,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Loans to principal officers, directors, and their affiliates [Roll Forward]
Beginning balance	$ 24,333	$ 17,351
New loans and renewals	31,560	13,223
Repayments and renewals	(27,355)	(12,648)
Effect of changes in related parties	0	6,407
Ending balance	28,538	24,333
Principal Officers, Directors, and Affiliates [Member]
Loans to principal officers, directors, and their affiliates [Roll Forward]
Deposits from principal officers, directors, and their affiliates	125,800	92,900
Director [Member] | Back-to-Back Swap Agreement [Member]
Loans to principal officers, directors, and their affiliates [Roll Forward]
Notional amount of agreement	$ 15,900	$ 16,800

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term	10 years
Option granted (in shares)	0	0	0
Summary of option activity, number outstanding [Roll Forward]
Outstanding, beginning of period (in shares)	53,000
Exercised (in shares)	(8,000)
Expired (in shares)	0
Outstanding, end of period (in shares)	45,000	53,000
Exercisable, end of period (in shares)	45,000
Weighted average exercise price [Roll Forward]
Outstanding beginning of period (in dollars per share)	$ 8.57
Exercised (in dollars per share)	8.57
Expired (in dollars per share)	0
Outstanding end of period (in dollars per share)	8.57	$ 8.57
Exercisable, end of period (in dollars per share)	$ 8.57
Options, additional disclosures [Abstract]
Outstanding, weighted average remaining contractual term	18 days
Exercisable, weighted average remaining contractual term	18 days
Outstanding, aggregate intrinsic value	$ 64,350,000
Exercisable, aggregate intrinsic value	64,350,000
Information related to stock options during each year [Abstract]
Intrinsic value of options exercised	0	$ 0	$ 0
Cash received from option exercises	68,000	0	0
Tax benefit realized from option exercises	8,000	0	0
Share-based compensation cost	0	0	0
Unrecognized cost related to nonvested stock options granted	$ 0
Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years
Information related to stock options during each year [Abstract]
Share-based compensation cost	$ 465,000	$ 536,000	478,000
Changes in nonvested restricted stock awards, shares [Roll Forward]
Outstanding, beginning of period (in shares)	132,548
Granted (in shares)	49,770
Vested (in shares)	(70,215)
Forfeited (in shares)	(7,055)
Outstanding, end of period (in shares)	105,048	132,548
Weighted-average grant-date fair value [Roll Forward]
Outstanding, beginning of period (in dollars per share)	$ 6.88
Granted (in dollars per share)	9.87
Vested (in dollars per share)	6.26
Forfeited (in dollars per share)	6.60
Outstanding, end of period (in dollars per share)	$ 8.73	$ 6.88
Aggregate intrinsic value [Roll Forward]
Outstanding, beginning of period	$ 1,325,480
Granted	497,700
Vested	702,150
Forfeited	70,550
Outstanding, end of period	1,050,480	$ 1,325,480
Total remaining unrecognized compensation cost related to nonvested shares	$ 844,000
Weighted-average period for recognition for unrecognized compensation cost	1 year 5 months 19 days
Total grant date fair value of shares vested	$ 440,000	$ 588,000	$ 471,000
Employees' Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares permitted under the plan (in shares)	1,917,210
Directors' Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares permitted under the plan (in shares)	473,278
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares permitted under the plan (in shares)	1,500,000
Shares available for issuance (in shares)	1,322,092

EMPLOYEE BENEFITS (Details)

EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
EMPLOYEE BENEFITS [Abstract]
Employer matching contribution up to first 3%	100.00%
Employee contribution threshold for matching percentage	3.00%
Employer matching contribution in excess of first 3%	50.00%
Maximum employer matching contribution	5.00%
Employer contributions	$ 684	$ 673	$ 665
Number of shares of common stock reserved to be issued under Employee Stock Purchase Plan (in shares)	210,000

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract]
Net income available to common shares									$ 16,292	$ 15,951	$ 12,794
Weighted average shares outstanding, including participating stock awards - Basic (in shares)									33,946,520	33,922,548	33,872,814
Dilutive potential common shares [Abstract]
Stock options (in shares)									6,352	0	0
Stock warrants (in shares)									0	0	0
Weighted average shares outstanding - Diluted (in shares)									33,952,872	33,922,548	33,872,814
Basic earnings per common share (in dollars per share)	$ 0.06	$ 0.15	$ 0.14	$ 0.13	$ 0.12	$ 0.14	$ 0.11	$ 0.10	$ 0.48	$ 0.47	$ 0.38
Diluted earnings per common share (in dollars per share)	$ 0.06	$ 0.15	$ 0.14	$ 0.13	$ 0.12	$ 0.14	$ 0.11	$ 0.10	$ 0.48	$ 0.47	$ 0.38
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	53,000	102,299

FEDERAL INCOME TAXES (Details)

FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income tax expense [Abstract]
Current			$ 5,759	$ 5,289	$ 2,335
Deferred			2,450	942	3,291
Effect of change in enacted federal income tax rate on deferred items			2,524	0	0
Income tax expense			$ 10,733	$ 6,231	$ 5,626
Difference between financial statement tax expense (benefit) and amount computed by applying statutory federal tax rate to pretax income [Abstract]
Statutory rate			35.00%	35.00%	35.00%
Statutory rate applied to income before taxes			$ 9,459	$ 7,764	$ 6,447
Adjust for [Abstract]
Tax-exempt interest income			(762)	(620)	(529)
Bank-owned life insurance			(339)	(342)	(232)
Tax return credits and other adjustments	$ (513)		(5)	(513)	0
Effect of change in enacted federal income tax rate on deferred items			2,524	0	0
Other, net			(144)	(58)	(60)
Income tax expense			10,733	6,231	5,626
Valuation allowance on deferred tax assets			0	0	0
Additional expense recorded to reflect changes resulting from enactment of Tax Reform Act			2,500
Deferred tax assets [Abstract]
Allowance for loan losses			3,486	5,937
Nonaccrual loan interest			346	718
Valuation allowance on other real estate owned			708	3,714
Unrealized loss on securities available for sale			417	799
Other			229	176
Gross deferred tax assets			5,186	11,344
Valuation allowance			0	0	$ 0
Total net deferred tax assets			5,186	11,344
Deferred tax liabilities [Abstract]
Depreciation			(977)	(1,705)
Prepaid expenses			(183)	(399)
Unrealized gain on securities available for sale			0	0
Other			(241)	(377)
Gross deferred tax liabilities			(1,401)	(2,481)
Net deferred tax asset			3,785	8,863
Unrecognized tax benefits			$ 0	$ 0
Period when unrecognized tax benefits is not expected to significantly increase or decrease			12 months
Plan [Member]
Difference between financial statement tax expense (benefit) and amount computed by applying statutory federal tax rate to pretax income [Abstract]
Statutory rate		21.00%

COMMITMENTS AND OFF BALANCE-S73

COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 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	$ 5,800	$ 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	$ 111,681	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	11,317	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	$ 457,485	$ 437,435

SHAREHOLDERS' EQUITY, Regulator

SHAREHOLDERS' EQUITY, Regulatory Capital (Details) $ in Thousands	12 Months Ended
	Dec. 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	$ 174,258	$ 163,663
CET1 capital (to risk weighted assets), actual ratio	11.30%	11.00%
Tier 1 capital (to risk weighted assets), actual amount	$ 214,258	$ 203,663
Tier 1 capital (to risk weighted assets), actual ratio	13.90%	13.70%
Total capital (to risk weighted assets), actual amount	$ 230,858	$ 220,625
Total capital (to risk weighted assets), actual ratio	15.00%	14.90%
Tier 1 capital (to average assets), actual amount	$ 214,258	$ 203,663
Tier 1 capital (to average assets), actual ratio	11.90%	12.00%
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 69,326	$ 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	$ 92,435	$ 88,991
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio	6.00%	6.00%
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount	$ 123,246	$ 118,655
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio	8.00%	8.00%
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 72,138	$ 67,810
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio	4.00%	4.00%
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 88,583	$ 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	$ 111,692	$ 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	$ 142,504	$ 127,925
Total capital (to risk weighted assets), minimum capital adequacy with capital buffer, ratio	9.30%	8.60%
Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
CET1 capital (to risk weighted assets), actual amount	$ 208,356	$ 197,972
CET1 capital (to risk weighted assets), actual ratio	13.50%	13.40%
Tier 1 capital (to risk weighted assets), actual amount	$ 208,356	$ 197,972
Tier 1 capital (to risk weighted assets), actual ratio	13.50%	13.40%
Total capital (to risk weighted assets), actual amount	$ 224,956	$ 214,934
Total capital (to risk weighted assets), actual ratio	14.60%	14.50%
Tier 1 capital (to average assets), actual amount	$ 208,356	$ 197,972
Tier 1 capital (to average assets), actual ratio	11.60%	11.70%
CET1 capital (to risk weighted assets), minimum capital adequacy, amount	$ 69,257	$ 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	$ 92,343	$ 88,983
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio	6.00%	6.00%
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount	$ 123,124	$ 118,644
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio	8.00%	8.00%
Tier 1 capital (to average assets), minimum capital adequacy, amount	$ 72,076	$ 67,742
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio	4.00%	4.00%
CET1 capital (to risk weighted assets), minimum capital adequacy with capital buffer, amount	$ 88,495	$ 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	$ 111,581	$ 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	$ 142,362	$ 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	$ 100,038	$ 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	$ 123,124	$ 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	$ 153,905	$ 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	$ 90,095	$ 84,677
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio	5.00%	5.00%
Trust preferred securities that qualified as Tier one risk based capital	$ 40,000	$ 40,000

CONDENSED FINANCIAL STATEMENT75

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 161,467	$ 89,819	$ 181,476	$ 129,455
Other assets	4,639	5,286
Total assets	1,890,232	1,741,013
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt	41,238	41,238
Total liabilities	1,717,246	1,578,774
Total shareholders' equity	172,986	162,239	151,977	142,519
Total liabilities and shareholders' equity	1,890,232	1,741,013
Parent Company [Member]
ASSETS
Cash and cash equivalents	5,972	5,542	$ 4,818	$ 2,544
Investments in Bank subsidiary	207,084	196,548
Investment in other subsidiaries	1,459	1,471
Other assets	73	134
Total assets	214,588	203,695
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt	41,238	41,238
Other liabilities	364	218
Total liabilities	41,602	41,456
Total shareholders' equity	172,986	162,239
Total liabilities and shareholders' equity	$ 214,588	$ 203,695

CONDENSED FINANCIAL STATEMENT76

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
EXPENSE
Interest expense									$ 5,732	$ 4,959	$ 5,306
Income before income tax									27,025	22,182	18,420
Income tax benefit									10,733	6,231	5,626
Net income	$ 2,194	$ 4,876	$ 4,762	$ 4,460	$ 4,108	$ 4,603	$ 3,745	$ 3,495	16,292	15,951	12,794
Comprehensive income									16,485	14,120	13,080
Parent Company [Member]
INCOME
Dividends from subsidiaries									7,918	6,238	5,160
Other									0	0	0
Total income									7,918	6,238	5,160
EXPENSE
Interest expense									1,713	1,503	1,331
Other expense									655	665	592
Total expense									2,368	2,168	1,923
Income before income tax and equity in undistributed earnings of subsidiaries									5,550	4,070	3,237
Equity in undistributed earnings of subsidiaries									9,921	11,128	8,893
Income before income tax									15,471	15,198	12,130
Income tax benefit									(821)	(753)	(664)
Net income									16,292	15,951	12,794
Comprehensive income									$ 16,485	$ 14,120	$ 13,080

CONDENSED FINANCIAL STATEMENT77

CONDENSED FINANCIAL STATEMENTS (PARENT COMPANY ONLY), Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net income	$ 2,194	$ 4,876	$ 4,762	$ 4,460	$ 4,108	$ 4,603	$ 3,745	$ 3,495	$ 16,292	$ 15,951	$ 12,794
Adjustments to reconcile net income to net cash from operating activities:
Stock compensation expense									465	536	478
Net cash from operating activities									22,779	16,928	14,001
Cash flows from investing activities
Net cash from investing activities									(83,159)	(105,340)	(95,303)
Cash flows from financing activities
Proceeds from issuance of common stock									68	0	0
Cash dividends paid									(6,088)	(4,049)	(3,702)
Repurchases of shares									(183)	(269)	(171)
Net cash from financing activities									132,028	(3,245)	133,323
Net change in cash and cash equivalents									71,648	(91,657)	52,021
Cash and cash equivalents at beginning of period				89,819				181,476	89,819	181,476	129,455
Cash and cash equivalents at end of period	161,467				89,819				161,467	89,819	181,476
Common Stock [Member]
Cash flows from operating activities
Net income									0	0	0
Parent Company [Member]
Cash flows from operating activities
Net income									16,292	15,951	12,794
Adjustments to reconcile net income to net cash from operating activities:
Equity in undistributed earnings of subsidiaries									(9,921)	(11,128)	(8,893)
Stock compensation expense									55	33	18
Change in other assets									61	148	2,237
Change in other liabilities									146	38	(9)
Net cash from operating activities									6,633	5,042	6,147
Cash flows from investing activities
Investment in subsidiaries									0	0	0
Net cash from investing activities									0	0	0
Cash flows from financing activities
Proceeds from issuance of common stock									68	0	0
Cash dividends paid									(6,088)	(4,049)	(3,702)
Common stock issuance costs									0	0	0
Repurchases of shares									(183)	(269)	(171)
Net cash from financing activities									(6,203)	(4,318)	(3,873)
Net change in cash and cash equivalents									430	724	2,274
Cash and cash equivalents at beginning of period				$ 5,542				$ 4,818	5,542	4,818	2,544
Cash and cash equivalents at end of period	$ 5,972				$ 5,542				$ 5,972	$ 5,542	$ 4,818

QUARTERLY FINANCIAL DATA (Una78

QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
QUARTERLY FINANCIAL DATA (Unaudited) [Abstract]
Interest income	$ 15,160	$ 14,626	$ 14,042	$ 13,848	$ 13,496	$ 13,122	$ 12,873	$ 13,008	$ 57,676	$ 52,499	$ 49,386
Net interest income	13,517	13,138	12,705	12,583	12,292	11,902	11,608	11,738	51,944	47,540	44,080
Provision for loan losses	0	(350)	(500)	(500)	(250)	(250)	(750)	(100)	(1,350)	(1,350)	(3,500)
Net income	$ 2,194	$ 4,876	$ 4,762	$ 4,460	$ 4,108	$ 4,603	$ 3,745	$ 3,495	$ 16,292	$ 15,951	$ 12,794
Earnings per common share, basic (in dollars per share)	$ 0.06	$ 0.15	$ 0.14	$ 0.13	$ 0.12	$ 0.14	$ 0.11	$ 0.10	$ 0.48	$ 0.47	$ 0.38
Earnings per common share, diluted (in dollars per share)	$ 0.06	$ 0.15	$ 0.14	$ 0.13	$ 0.12	$ 0.14	$ 0.11	$ 0.10	$ 0.48	$ 0.47	$ 0.38
Federal income tax expense to revalue net deferred tax assets under newly enacted federal income tax rate	$ 2,500
Expense associated with distribution of net benefits from bank owned life insurance								$ 290
Realization of tax credits and other adjustments						$ 513			$ 5	$ 513	$ 0