Southern First Bancshares (SFST) 10-Q 26 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 17, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	SOUTHERN FIRST BANCSHARES INC
Entity Central Index Key	1,090,009
Trading Symbol	SFST
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		6,480,164

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Cash and cash equivalents:
Cash and due from banks	$ 14,339	$ 11,574
Federal funds sold	86,466	24,039
Interest-bearing deposits with banks	20,427	10,939
Total cash and cash equivalents	121,232	46,552
Investment securities:
Investment securities available for sale	62,836	64,480
Other investments	5,523	5,742
Total investment securities	68,359	70,222
Mortgage loans held for sale	7,452	7,801
Loans	1,218,680	1,163,644
Less allowance for loan losses	(15,287)	(14,855)
Loans, net	1,203,393	1,148,789
Bank owned life insurance	25,654	25,471
Property and equipment, net	29,990	28,362
Deferred income taxes	5,029	6,825
Other assets	6,829	6,886
Total assets	1,467,938	1,340,908
LIABILITIES
Deposits	1,211,274	1,091,151
Federal Home Loan Bank advances and other borrowings	117,700	115,200
Junior subordinated debentures	13,403	13,403
Other liabilities	11,995	11,282
Total liabilities	1,354,372	1,231,036
SHAREHOLDERS' EQUITY
Preferred stock, par value $.01 per share, 10,000,000 shares authorized, no shares issued and outstanding
Common stock, par value $.01 per share, 10,000,000 shares authorized, 6,480,164 and 6,463,789 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	65	65
Nonvested restricted stock	(669)	(600)
Additional paid-in capital	73,865	73,371
Accumulated other comprehensive income (loss)	(347)	(504)
Retained earnings	40,652	37,540
Total shareholders' equity	113,566	109,872
Total liabilities and shareholders' equity	$ 1,467,938	$ 1,340,908

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Balance Sheets [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	6,480,164	6,463,789
Common stock, shares outstanding	6,480,164	6,463,789

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest income
Loans	$ 13,526	$ 11,795
Investment securities	376	489
Federal funds sold	57	45
Total interest income	13,959	12,329
Interest expense
Deposits	1,249	988
Borrowings	1,103	1,034
Total interest expense	2,352	2,022
Net interest income	11,607	10,307
Provision for loan losses	500	625
Net interest income after provision for loan losses	11,107	9,682
Noninterest income
Mortgage banking income	1,057	1,447
Service fees on deposit accounts	278	220
Income from bank owned life insurance	183	186
Gain on sale of investment securities		307
Other income	533	399
Total noninterest income	2,051	2,559
Noninterest expenses
Compensation and benefits	5,273	4,551
Occupancy	967	870
Real estate owned expenses	13	285
Outside service and data processing costs	745	598
Insurance	289	233
Professional fees	313	254
Marketing	210	231
Other	550	495
Total noninterest expenses	8,360	7,517
Income before income tax expense	4,798	4,724
Income tax expense	1,686	1,718
Net income available to common shareholders	$ 3,112	$ 3,006
Earnings per common share
Basic	$ 0.48	$ 0.48
Diluted	$ 0.46	$ 0.45
Weighted average common shares outstanding
Basic	6,437,231	6,272,847
Diluted	6,829,590	6,663,432

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statements of Comprehensive Income (Loss) [Abstract]
Net income	$ 3,112	$ 3,006
Unrealized gain (loss) on securities available for sale:
Unrealized holding gain (loss) arising during the period, pretax	238	1,092
Tax (expense) benefit	(81)	(371)
Reclassification of realized gain		(307)
Tax expense		104
Other comprehensive income (loss)	157	518
Comprehensive income	$ 3,269	$ 3,524

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common stock	Preferred stock	Nonvested restricted stock	Additional paid-in capital	Accumulated other comprehensive income (loss)	Retained earnings
Balance at Dec. 31, 2015	$ 94,240	$ 63		$ (360)	$ 70,037	$ (4)	$ 24,504
Balance, shares at Dec. 31, 2015		6,289,038
Net income	3,006						3,006
Proceeds from exercise of stock options	285				285
Proceeds from exercise of stock options, shares		37,950
Issuance of restricted stock				(391)	391
Issuance of restricted stock, shares		17,000
Amortization of deferred compensation on restricted stock	70			70
Compensation expense related to stock options, net of tax	176				176
Other comprehensive income	518					518
Balance at Mar. 31, 2016	98,295	$ 63		(681)	70,889	514	27,510
Balance, shares at Mar. 31, 2016		6,343,988
Balance at Dec. 31, 2016	109,872	$ 65		(600)	73,371	(504)	37,540
Balance, shares at Dec. 31, 2016		6,463,789
Net income	3,112						3,112
Proceeds from exercise of stock options	112				112
Proceeds from exercise of stock options, shares		13,250
Issuance of restricted stock				(146)	146
Issuance of restricted stock, shares		3,125
Amortization of deferred compensation on restricted stock	77			77
Compensation expense related to stock options, net of tax	236				236
Other comprehensive income	157					157
Balance at Mar. 31, 2017	$ 113,566	$ 65		$ (669)	$ 73,865	$ (347)	$ 40,652
Balance, shares at Mar. 31, 2017		6,480,164

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities
Net income	$ 3,112	$ 3,006
Adjustments to reconcile net income to cash provided by (used for) operating activities:
Provision for loan losses	500	625
Depreciation and other amortization	309	315
Accretion and amortization of securities discounts and premium, net	132	120
Gain on sale of investment securities available for sale		(307)
Loss on sale of real estate owned		51
Write-down of real estate owned		125
Compensation expense related to stock options and grants	313	246
Gain on sale of loans held for sale	(1,001)	(1,447)
Loans originated and held for sale	(36,570)	(52,034)
Proceeds from sale of loans held for sale	37,920	44,183
Increase in cash surrender value of bank owned life insurance	(183)	(186)
Decrease in deferred tax asset	1,714	369
Decrease in other assets, net	87	62
Increase in other liabilities	713	461
Net cash provided by (used for) operating activities	7,046	(4,411)
Increase (decrease) in cash realized from:
Origination of loans, net	(55,134)	(34,519)
Purchase of property and equipment	(1,937)	(854)
Purchase of investment securities:
Available for sale
Other	(1,386)	(168)
Payments and maturities, calls and repayments of investment securities:
Available for sale	1,751	3,203
Other	1,605
Proceeds from sale of investment securities available for sale		10,603
Proceeds from sale of real estate owned		260
Net cash used for investing activities	(55,101)	(21,475)
Increase (decrease) in cash realized from:
Increase in deposits, net	120,123	17,508
Increase in Federal Home Loan Bank advances and other borrowings, net	2,500
Proceeds from the exercise of stock options and warrants	112	285
Net cash provided by financing activities	122,735	17,793
Net increase (decrease) in cash and cash equivalents	74,680	(8,093)
Cash and cash equivalents at beginning of the period	46,552	62,866
Cash and cash equivalents at end of the period	121,232	54,773
Cash paid for
Interest	2,339	1,767
Income taxes		1,350
Schedule of non-cash transactions
Real estate acquired in settlement of loans		245
Unrealized gain (loss) on securities, net of income taxes	$ (157)	$ (721)

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Nature of Business and Basis of Presentation [Abstract]
Nature of Business and Basis of Presentation	NOTE 1 – Nature of Business and Basis of Presentation Business Activity Southern First Bancshares, Inc. (the "Company") is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the "Bank") and all of the stock of Greenville First Statutory Trust I and II (collectively, the "Trusts"). The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities. The Bank's primary federal regulator is the Federal Deposit Insurance Corporation (the "FDIC"). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the Securities and Exchange Commission on March 3, 2017. The consolidated financial statements include the accounts of the Company and the Bank. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation,” the financial statements related to the Trusts have not been consolidated. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, real estate acquired in the settlement of loans, fair value of financial instruments, evaluating other-than-temporary-impairment of investment securities and valuation of deferred tax assets. Business Segments The Company began reporting its activities as three business segments – Commercial and Retail Banking, Mortgage Banking and Corporate in 2016. In determining proper segment definition, the Company considers the materiality of a potential segment and components of the business about which financial information is available and regularly evaluated, relative to a resource allocation and performance assessment. The Company accounts for intersegment revenues and expenses as if the revenue/expense transactions were generated to third parties, that is, at current market prices. Please refer to “Note 9 – Reportable Segments” for further information on the reporting for the Company’s three business segments. Reclassifications Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders’ equity or net income. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management performed an evaluation to determine whether there have been any subsequent events since the balance sheet date and determined that no subsequent events occurred requiring accrual or disclosure.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2017
Investment Securities [Abstract]
Investment Securities	NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows: March 31, 2017 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 6,266 4 90 6,180 SBA securities 1,436 - 16 1,420 State and political subdivisions 20,584 186 198 20,572 Mortgage-backed securities 35,076 14 426 34,664 Total investment securities available for sale $ 63,362 204 730 62,836 December 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses Value Available for sale US government agencies $ 6,271 1 113 6,159 SBA securities 1,453 - 16 1,437 State and political subdivisions 20,625 141 292 20,474 Mortgage-backed securities 36,895 21 506 36,410 Total investment securities available for sale $ 65,244 163 927 64,480 During the first quarter of 2017, there were no investment securities either sold or called. During the first quarter of 2016, approximately $12.2 million of investment securities were either sold or called, subsequently resulting in a gain on sale of $307,000. Contractual maturities and yields on the Company’s investment securities at March 31, 2017 and December 31, 2016 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2017 Less than one year One to five years Five to ten years Over ten years Total (dollars in thousands) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale US government agencies $ - - 2,014 1.61 % 4,166 2.27 % - - 6,180 2.06 % SBA securities - - - - - - 1,420 1.56 % 1,420 1.56 % State and political subdivisions - - 2,822 1.80 % 12,063 2.36 % 5,687 2.82 % 20,572 2.41 % Mortgage-backed securities - - - - 8,014 1.66 % 26,650 1.82 % 34,664 1.78 % Total $ - - 4,836 1.72 % 24,243 2.11 % 33,757 1.98 % 62,836 2.01 % December 31, 2016 Less than one year One to five years Five to ten years Over ten years Total Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale US government agencies $ - - 997 1.15 % 5,162 2.23 % - - 6,159 2.06 % SBA securities - - - - - - 1,437 1.32 % 1,437 1.32 % State and political subdivisions - - 2,271 1.73 % 12,287 2.35 % 5,916 2.77 % 20,474 2.40 % Mortgage-backed securities - - - - 8,527 1.64 % 27,883 1.68 % 36,410 1.67 % Total $ - - 3,268 1.55 % 25,976 2.10 % 35,236 1.85 % 64,480 1.93 % The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. March 31, 2017 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) # value losses # value losses # value losses Available for sale US government agencies 4 $ 3,967 $ 90 - $ - $ - 4 $ 3,967 $ 90 SBA securities - - - 1 1,421 16 1 1,421 16 State and political subdivisions 24 10,519 198 - - - 24 10,519 198 Mortgage-backed securities 26 28,837 396 2 3,722 30 28 32,559 426 Total 54 $ 43,323 $ 684 3 $ 5,143 $ 46 57 $ 48,466 $ 730 December 31, 2016 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized # value losses # value losses # value losses Available for sale US government agencies 5 $ 5,144 $ 113 - $ - $ - 5 $ 5,144 $ 113 SBA securities 1 1,437 16 - - - 1 1,437 16 State and political subdivisions 32 13,936 292 - - - 32 13,936 292 Mortgage-backed securities 25 27,292 476 2 3,991 30 27 31,283 506 Total 63 $ 47,809 $ 897 2 $ 3,991 $ 30 65 $ 51,800 $ 927 At March 31, 2017, the Company had 54 individual investments with a fair market value of $43.3 million that were in an unrealized loss position for less than 12 months and three individual investments with a fair market value of $5.1 million that were in an unrealized loss position for 12 months or longer. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers the length of time and extent to which the fair value of available-for-sale debt securities have been less than cost to conclude that such securities are not other-than-temporarily impaired. The Company also considers other factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. As the Company has no intent to sell securities with unrealized losses and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of amortized cost, the Company has concluded that these securities are not impaired on an other-than-temporary basis. Other investments are comprised of the following and are recorded at cost which approximates fair value. (dollars in thousands) March 31, 2017 December 31, 2016 Federal Home Loan Bank stock $ 4,965 5,173 Investment in Trust Preferred securities 403 403 Other investments 155 166 Total other investments $ 5,523 5,742 The Company has evaluated the Federal Home Loan Bank (“FHLB”) stock for impairment and determined that the investment in the FHLB stock is not other than temporarily impaired as of March 31, 2017 and ultimate recoverability of the par value of this investment is probable. All of the FHLB stock is used to collateralize advances with the FHLB. At March 31, 2017, $20.7 million of securities were pledged as collateral for repurchase agreements from brokers and no securities were pledged to secure client deposits. At December 31, 2016, $21.0 million of securities were pledged as collateral for repurchase agreements from brokers, and approximately $21.1 million of securities were pledged to secure client deposits.

Mortgage Loans Held for Sale

Mortgage Loans Held for Sale	3 Months Ended
	Mar. 31, 2017
Mortgage Loans Held for Sale [Abstract]
Mortgage Loans Held for Sale	NOTE 3 – Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are reported as loans held for sale and carried at fair value under the fair value option, which was adopted by the Company on April 1, 2016, with changes in fair value recognized in current period earnings. At the date of funding of the mortgage loan held for sale, the funded amount of the loan, the related derivative asset or liability of the associated interest rate lock commitment, less direct loan costs becomes the initial recorded investment in the loan held for sale. Such amount approximates the fair value of the loan. At March 31, 2017, mortgage loans held for sale totaled $7.5 million compared to $7.8 million at December 31, 2016. Mortgage loans held for sale are considered de-recognized, or sold, when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement that both entitles and obligates the Company to repurchase or redeem the transferred assets before their maturity or the ability to unilaterally cause the holder to return specific assets. Gains and losses from the sale of mortgage loans are recognized based upon the difference between the sales proceeds and carrying value of the related loans upon sale and are recorded in mortgage banking income in the statement of income. Mortgage banking income also includes the unrealized gains and losses associated with the loans held for sale and the realized and unrealized gains and losses from derivatives. Mortgage loans sold by the Company to investors and which were believed to have met investor and agency underwriting guidelines at the time of sale may be subject to repurchase or indemnification in the event of specific default by the borrower or subsequent discovery that underwriting standards were not met. The Company may, upon mutual agreement, agree to repurchase the loans or indemnify the investor against future losses on such loans. In such cases, the Company bears any subsequent credit loss on the loans.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2017
Loans and Allowance for Loan Losses [Abstract]
Loans and Allowance for Loan Losses	NOTE 4 – Loans and Allowance for Loan Losses The following table summarizes the composition of our loan portfolio. Total gross loans are recorded net of deferred loan fees and costs, which totaled $2.1 million as of March 31, 2017 and $2.0 million as of December 31, 2016. March 31, 2017 December 31, 2016 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 288,300 23.7 % $ 285,938 24.6 % Non-owner occupied RE 258,449 21.2 % 239,574 20.6 % Construction 36,889 3.0 % 33,393 2.9 % Business 208,590 17.1 % 202,552 17.4 % Total commercial loans 792,228 65.0 % 761,457 65.5 % Consumer Real estate 230,695 18.9 % 215,588 18.5 % Home equity 143,673 11.8 % 137,105 11.8 % Construction 31,535 2.6 % 31,922 2.7 % Other 20,549 1.7 % 17,572 1.5 % Total consumer loans 426,452 35.0 % 402,187 34.5 % Total gross loans, net of deferred fees 1,218,680 100.0 % 1,163,644 100.0 % Less—allowance for loan losses (15,287 ) (14,855 ) Total loans, net $ 1,203,393 $ 1,148,789 Maturities and Sensitivity of Loans to Changes in Interest Rates The information in the following tables summarizes the loan maturity distribution by type and related interest rate characteristics based on the contractual maturities of individual loans, including loans which may be subject to renewal at their contractual maturity. Renewal of such loans is subject to review and credit approval, as well as modification of terms upon maturity. Actual repayments of loans may differ from the maturities reflected below, because borrowers have the right to prepay obligations with or without prepayment penalties. March 31, 2017 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 22,336 149,371 116,593 288,300 Non-owner occupied RE 33,669 140,116 84,664 258,449 Construction 9,077 11,358 16,454 36,889 Business 62,790 106,729 39,071 208,590 Total commercial loans 127,872 407,574 256,782 792,228 Consumer Real estate 28,754 52,367 149,574 230,695 Home equity 7,391 29,494 106,788 143,673 Construction 15,762 606 15,167 31,535 Other 6,600 9,629 4,320 20,549 Total consumer loans 58,507 92,096 275,849 426,452 Total gross loans, net of deferred fees $ 186,379 499,670 532,631 1,218,680 Loans maturing after one year with: Fixed interest rates $ 778,861 Floating interest rates 253,440 December 31, 2016 After one One year but within After five or less five years years Total Commercial Owner occupied RE $ 26,062 145,419 114,457 285,938 Non-owner occupied RE 34,685 142,261 62,628 239,574 Construction 5,881 9,558 17,954 33,393 Business 66,361 99,255 36,936 202,552 Total commercial loans 132,989 396,493 231,975 761,457 Consumer Real estate 26,342 49,832 139,414 215,588 Home equity 7,142 29,041 100,922 137,105 Construction 14,103 627 17,192 31,922 Other 5,049 9,305 3,218 17,572 Total consumer 52,636 88,805 260,746 402,187 Total gross loan, net of deferred fees $ 185,625 485,298 492,721 1,163,644 Loans maturing after one year with: Fixed interest rates $ 733,892 Floating interest rates 244,127 Portfolio Segment Methodology Commercial Commercial loans are assessed for estimated losses by grading each loan using various risk factors identified through periodic reviews. The Company applies historic grade-specific loss factors to each loan class. In the development of statistically derived loan grade loss factors, the Company observes historical losses over 20 quarters for each loan grade. These loss estimates are adjusted as appropriate based on additional analysis of external loss data or other risks identified from current economic conditions and credit quality trends. The allowance also includes an amount for the estimated impairment on nonaccrual commercial loans and commercial loans modified in a troubled debt restructuring (“TDR”), whether on accrual or nonaccrual status. Consumer For consumer loans, the Company determines the allowance on a collective basis utilizing historical losses over 20 quarters to represent its best estimate of inherent loss. The Company pools loans, generally by loan class with similar risk characteristics. The allowance also includes an amount for the estimated impairment on nonaccrual consumer loans and consumer loans modified in a TDR, whether on accrual or nonaccrual status. Credit Quality Indicators Commercial We manage a consistent process for assessing commercial loan credit quality by monitoring its loan grading trends and past due statistics. All loans are subject to individual risk assessment. Our risk categories include Pass, Special Mention, Substandard, and Doubtful, each of which is defined by banking regulatory agencies. Delinquency statistics are also an important indicator of credit quality in the establishment of our allowance for credit losses. We categorize our loans into risk categories based on relevant information about the ability of the borrower to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. A description of the general characteristics of the risk grades is as follows: ● Pass—These loans range from minimal credit risk to average however still acceptable credit risk. ● Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. ● Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. ● Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. The tables below provide a breakdown of outstanding commercial loans by risk category. March 31, 2017 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 282,726 253,421 36,889 198,953 771,989 Special mention 3,164 976 - 3,735 7,875 Substandard 2,410 4,052 - 5,902 12,364 Doubtful - - - - - $ 288,300 258,449 36,889 208,590 792,228 December 31, 2016 Owner Non-owner occupied RE occupied RE Construction Business Total Pass $ 282,055 234,957 33,393 193,517 743,922 Special mention 1,097 975 - 2,489 4,561 Substandard 2,786 3,642 - 6,546 12,974 Doubtful - - - - - $ 285,938 239,574 33,393 202,552 761,457 The following tables provide past due information for outstanding commercial loans and include loans on nonaccrual status as well as accruing TDRs. March 31, 2017 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 288,035 256,991 36,889 206,466 788,381 30-59 days past due - 416 - 651 1,067 60-89 days past due 249 - - 1,100 1,349 Greater than 90 Days 16 1,042 - 373 1,431 $ 288,300 258,449 36,889 208,590 792,228 December 31, 2016 Owner Non-owner occupied RE occupied RE Construction Business Total Current $ 284,700 238,346 33,393 200,624 757,063 30-59 days past due 981 - - 1,423 2,404 60-89 days past due 257 56 - - 313 Greater than 90 Days - 1,172 - 505 1,677 $ 285,938 239,574 33,393 202,552 761,457 As of March 31, 2017 and December 31, 2016, loans 30 days or more past due represented 0.45% and 0.55% of the Company’s total loan portfolio, respectively. Commercial loans 30 days or more past due were 0.32% and 0.38% of the Company’s total loan portfolio as of March 31, 2017 and December 31, 2016, respectively. Consumer The Company manages a consistent process for assessing consumer loan credit quality by monitoring its loan grading trends and past due statistics. All loans are subject to individual risk assessment. The Company’s categories include Pass, Special Mention, Substandard, and Doubtful, which are defined above. Delinquency statistics are also an important indicator of credit quality in the establishment of the allowance for loan losses. The tables below provide a breakdown of outstanding consumer loans by risk category. March 31, 2017 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 226,785 140,439 31,535 20,428 419,187 Special mention 860 2,184 - 24 3,068 Substandard 3,050 1,050 - 97 4,197 Doubtful - - - - - Loss - - - - - $ 230,695 143,673 31,535 20,549 426,452 December 31, 2016 Real estate Home equity Construction Other Total Pass $ 211,563 134,124 31,922 17,485 395,094 Special mention 1,064 2,109 - 16 3,189 Substandard 2,961 872 - 71 3,904 Doubtful - - - - - Loss - - - - - $ 215,588 137,105 31,922 17,572 402,187 The following tables provide past due information for outstanding consumer loans and include loans on nonaccrual status as well as accruing TDRs. March 31, 2017 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 229,729 143,078 31,535 20,510 424,852 30-59 days past due 413 209 - 39 661 60-89 days past due 553 129 - - 682 Greater than 90 Days - 257 - - 257 $ 230,695 143,673 31,535 20,549 426,452 December 31, 2016 Real estate Home equity Construction Other Total Current $ 214,228 136,638 31,922 17,427 400,215 30-59 days past due 1,041 210 - 126 1,377 60-89 days past due 282 - - 6 288 Greater than 90 Days 37 257 - 13 307 $ 215,588 137,105 31,922 17,572 402,187 As of March 31, 2017 and December 31, 2016, consumer loans 30 days or more past due were 0.13% and 0.17% of total loans, respectively. Nonperforming assets The following table shows the nonperforming assets and the related percentage of nonperforming assets to total assets and gross loans. Generally, a loan is placed on nonaccrual status when it becomes 90 days past due as to principal or interest, or when the Company believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of the contractual principal or interest on the loan is doubtful. A payment of interest on a loan that is classified as nonaccrual is recognized as a reduction in principal when received. Following is a summary of our nonperforming assets, including nonaccruing TDRs. (dollars in thousands) March 31, 2017 December 31, 2016 Commercial Owner occupied RE $ 266 276 Non-owner occupied RE 2,514 2,711 Construction - - Business 1,616 686 Consumer Real estate 541 550 Home equity 257 256 Construction - - Other 5 13 Nonaccruing troubled debt restructurings 979 990 Total nonaccrual loans, including nonaccruing TDRs 6,178 5,482 Other real estate owned 669 639 Total nonperforming assets $ 6,847 6,121 Nonperforming assets as a percentage of: Total assets 0.47 % 0.46 % Gross loans 0.56 % 0.53 % Total loans over 90 days past due 1,688 1,984 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings $ 5,795 5,675 Impaired Loans The table below summarizes key information for impaired loans. The Company’s impaired loans include loans on nonaccrual status and loans modified in a TDR, whether on accrual or nonaccrual status. These impaired loans may have estimated impairment which is included in the allowance for loan losses. The Company’s commercial and consumer impaired loans are evaluated individually to determine the related allowance for loan losses. March 31, 2017 Recorded investment Impaired loans Unpaid with related Related Principal Impaired allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses Commercial Owner occupied RE $ 2,271 2,220 2,220 420 Non-owner occupied RE 7,226 3,823 1,503 410 Construction - - - - Business 4,353 3,665 2,943 1,160 Total commercial 13,850 9,708 6,666 1,990 Consumer Real estate 1,844 1,828 1,642 605 Home equity 262 257 123 61 Construction - - - - Other 181 181 181 93 Total consumer 2,287 2,266 1,946 759 Total $ 16,137 11,974 8,612 2,749 December 31, 2016 Recorded investment Impaired loans Unpaid with related Related Principal Impaired allowance for allowance for Balance loans loan losses loan losses Commercial Owner occupied RE $ 2,284 2,243 2,224 263 Non-owner occupied RE 7,238 4,031 1,638 457 Construction - - - - Business 3,699 2,593 1,610 1,154 Total commercial 13,221 8,867 5,472 1,874 Consumer Real estate 1,853 1,843 1,843 682 Home equity 207 257 - - Construction - - - - Other 261 190 177 88 Total consumer 2,321 2,290 2,020 770 Total $ 15,542 11,157 7,492 2,644 The following table provides the average recorded investment in impaired loans and the amount of interest income recognized on impaired loans after impairment by portfolio segment and class. Three months ended Three months ended Year ended March 31, 2017 March 31, 2016 December 31, 2016 Average Recognized Average Recognized Average Recognized recorded interest recorded interest recorded interest (dollars in thousands) investment income investment income investment income Commercial Owner occupied RE $ 2,232 28 $ 615 7 2,263 112 Non-owner occupied RE 3,927 29 5,731 48 4,106 200 Construction - - 1,778 30 - - Business 3,675 40 2,760 30 2,873 135 Total commercial 9,834 97 10,884 115 9,242 447 Consumer Real estate 1,836 16 1,119 9 1,854 81 Home equity 256 1 195 2 257 2 Construction - - - - - - Other 182 - 257 - 203 6 Total consumer 2,274 17 1,571 11 2,314 89 Total $ 12,108 114 $ 12,455 126 11,556 536 Allowance for Loan Losses The allowance for loan loss is management’s estimate of credit losses inherent in the loan portfolio. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The Company has an established process to determine the adequacy of the allowance for loan losses that assesses the losses inherent in the portfolio. While the Company attributes portions of the allowance to specific portfolio segments, the entire allowance is available to absorb credit losses inherent in the total loan portfolio. The Company’s process involves procedures to appropriately consider the unique risk characteristics of the commercial and consumer loan portfolio segments. For each portfolio segment, impairment is measured individually for each impaired loan. The Company’s allowance levels are influenced by loan volume, loan grade or delinquency status, historic loss experience and other economic conditions. The following table summarizes the activity related to the allowance for loan losses by commercial and consumer portfolio segments: Three months ended March 31, 2017 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,843 2,778 295 4,123 2,780 1,475 252 309 14,855 Provision for loan losses 209 369 39 (321 ) (40 ) 143 37 64 500 Loan charge-offs - (181 ) - (9 ) - - - - (190 ) Loan recoveries - 1 - 30 90 1 - - 122 Net loan charge-offs - (180 ) - 21 90 1 - - (68 ) Balance, end of period $ 3,052 2,967 334 3,823 2,830 1,619 289 373 15,287 Net charge-offs to average loans (annualized) 0.02% Allowance for loan losses to gross loans 1.25% Allowance for loan losses to nonperforming loans 247.43% Three months ended March 31, 2016 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,347 3,187 338 3,800 2,070 1,202 313 372 13,629 Provision for loan losses 151 122 104 (158 ) 248 61 38 59 625 Loan charge-offs (5 ) (75 ) - (36 ) (187 ) - - (91 ) (394 ) Loan recoveries - 2 - 33 - - - 3 38 Net loan charge-offs (5 ) (73 ) - (3 ) (187 ) - - (88 ) (356 ) Balance, end of period $ 2,493 3,236 442 3,639 2,131 1,263 351 343 13,898 Net charge-offs to average loans (annualized) 0.14% Allowance for loan losses to gross loans 1.34% Allowance for loan losses to nonperforming loans 224.56% The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology. March 31, 2017 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 1,990 759 2,749 9,708 2,266 11,974 Collectively evaluated 8,230 4,308 12,538 782,520 424,186 1,206,706 Total $ 10,220 5,067 15,287 792,228 426,452 1,218,680 December 31, 2016 Allowance for loan losses Recorded investment in loans Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 1,874 770 2,644 8,867 2,290 11,157 Collectively evaluated 8,165 4,046 12,211 752,590 399,897 1,152,487 Total $ 10,039 4,816 14,855 761,457 402,187 1,163,644

Troubled Debt Restructurings

Troubled Debt Restructurings	3 Months Ended
	Mar. 31, 2017
Troubled Debt Restructurings [Abstract]
Troubled Debt Restructurings	NOTE 5 – Troubled Debt Restructurings At March 31, 2017, the Company had 18 loans totaling $6.8 million compared to 17 loans totaling $6.7 million at December 31, 2016, which were considered as TDRs. The Company considers a loan to be a TDR when the debtor experiences financial difficulties and the Company grants a concession to the debtor that it would not normally consider. Concessions can relate to the contractual interest rate, maturity date, or payment structure of the note. As part of the workout plan for individual loan relationships, the Company may restructure loan terms to assist borrowers facing financial challenges in the current economic environment. To date, the Company has restored three commercial loans previously classified as TDRs to accrual status. The following table summarizes the concession at the time of modification and the recorded investment in the Company’s TDRs before and after their modification during the three months ended March 31, 2017. There were no loans modified and considered a TDR during the three months ended March 31, 2016. For the three months ended March 31, 2017 Pre- Post- modification modification Renewals Reduced Converted Maturity Total outstanding outstanding deemed a or deferred to interest date Number recorded recorded (dollars in thousands) concession payments only extensions of loans investment investment Commercial Business 1 - - - 1 $ 149 $ 149 Total loans 1 - - - 1 $ 149 $ 149 As of March 31, 2017, there was one loan with a recorded investment of $187,000 modified as a TDR for which there was a payment default (60 days past due) within 12 months of the restructuring date. There were no such loans as of March 31, 2016.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2017
Derivative Financial Instruments [Abstract]
Derivative Financial Instruments	NOTE 6 – Derivative Financial Instruments The Company utilizes derivative financial instruments primarily to hedge its exposure to changes in interest rates. All derivative financial instruments are recognized as either assets or liabilities and measured at fair value. The Company accounts for all of its derivatives as free-standing derivatives and does not designate any of these instruments for hedge accounting. Therefore, the gain or loss resulting from the change in the fair value of the derivative is recognized in the Company’s statement of income during the period of change. The Company enters into commitments to originate residential mortgage loans held for sale, at specified interest rates and within a specified period of time, with clients who have applied for a loan and meet certain credit and underwriting criteria (interest rate lock commitments). These interest rate lock commitments (“IRLCs”) meet the definition of a derivative financial instrument and are reflected in the balance sheet at fair value with changes in fair value recognized in current period earnings. Unrealized gains and losses on the IRLCs are recorded as derivative assets and derivative liabilities, respectively, and are measured based on the value of the underlying mortgage loan, quoted mortgage-backed securities (“MBS”) prices and an estimate of the probability that the mortgage loan will fund within the terms of the interest rate lock commitment, net of estimated commission expenses. The Company manages the interest rate and price risk associated with its outstanding IRLCs and mortgage loans held for sale by entering into derivative instruments such as forward sales of MBS. Management expects these derivatives will experience changes in fair value opposite to changes in fair value of the IRLCs and mortgage loans held for sale, thereby reducing earnings volatility. The Company takes into account various factors and strategies in determining the portion of the mortgage pipeline (IRLCs and mortgage loans held for sale) it wants to economically hedge. The following table summarizes the Company’s outstanding financial derivative instruments at March 31, 2017 and December 31, 2016. March 31, 2017 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 29,583 Other assets $ 455 MBS forward sales commitments 18,000 Other assets (140 ) Total derivative financial instruments $ 47,583 $ 315 December 31, 2016 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 17,986 Other assets $ 256 MBS forward sales commitments 14,250 Other assets (3 ) Total derivative financial instruments $ 32,236 $ 253

Fair Value Accounting

Fair Value Accounting	3 Months Ended
	Mar. 31, 2017
Fair Value Accounting [Abstract]
Fair Value Accounting	NOTE 7 – Fair Value Accounting FASB ASC 820, “Fair Value Measurement and Disclosures,” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 – Quoted market price in active markets Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include certain debt and equity securities that are traded in an active exchange market. Level 2 – Significant other observable inputs 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 for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include fixed income securities and mortgage-backed securities that are held in the Company’s available-for-sale portfolio and valued by a third-party pricing service, as well as certain impaired loans. Level 3 – Significant unobservable inputs Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. These methodologies may result in a significant portion of the fair value being derived from unobservable data. Following is a description of valuation methodologies used for assets recorded at fair value. Investment Securities Securities available for sale are valued on a recurring basis at quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange or U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities and debentures issued by government sponsored entities, municipal bonds and corporate debt securities. In certain cases where there is limited activity or less transparency around inputs to valuations, securities are classified as Level 3 within the valuation hierarchy. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of Other Investments, such as FHLB stock, approximates fair value based on their redemption provisions. Mortgage Loans Held for Sale Loans held for sale include mortgage loans which are saleable into the secondary mortgage markets and their fair values are estimated using observable quoted market or contracted prices or market price equivalents, which would be used by other market participants. These saleable loans are considered Level 2. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures the impairment in accordance with FASB ASC 310, “Receivables.” The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At March 31, 2017, a significant portion of the impaired loans were evaluated based on the fair value of the collateral. In accordance with FASB ASC 820, “Fair Value Measurement and Disclosures,” impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. The Company’s current loan and appraisal policies require the Bank to obtain updated appraisals on an “as is” basis at renewal, or in the case of an impaired loan, on an annual basis, either through a new external appraisal or an appraisal evaluation. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3. The fair value of impaired loans may also be estimated using the present value of expected future cash flows to be realized on the loan, which is also considered a Level 3 valuation. These fair value estimates are subject to fluctuations in assumptions about the amount and timing of expected cash flows as well as the choice of discount rate used in the present value calculation. Other Real Estate Owned (“OREO”) OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at the lower of cost or fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Gains or losses on sale and generally any subsequent adjustments to the value are recorded as a component of real estate owned activity. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the OREO as nonrecurring Level 3. Derivative Financial Instruments The Company estimates the fair value of IRLCs based on the value of the underlying mortgage loan, quoted MBS prices and an estimate of the probability that the mortgage loan will fund within the terms of the IRLC, net of commission expenses (Level 2). The Company estimates the fair value of forward sales commitments based on quoted MBS prices (Level 2). Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016. March 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 6,180 - 6,180 SBA securities - 1,420 - 1,420 State and political subdivisions - 20,572 - 20,572 Mortgage-backed securities - 34,664 - 34,664 Mortgage loans held for sale - 7,452 - 7,452 Interest rate lock commitments - 455 - 455 Total assets measured at fair value on a recurring basis $ - 70,743 - 70,743 Liabilities MBS forward sales commitments $ - 140 - 140 Total liabilities measured at fair value on a recurring basis $ - 140 - 140 December 31, 2016 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale: US government agencies $ - 6,159 - 6,159 SBA securities - 1,437 - 1,437 State and political subdivisions - 20,474 - 20,474 Mortgage-backed securities - 36,410 - 36,410 Mortgage loans held for sale - 7,801 - 7,801 Interest rate lock commitments - 256 - 256 Total assets measured at fair value on a recurring basis $ - 72,537 - 72,537 Liabilities MBS forward sales commitments $ - 3 - 3 Total liabilities measured at fair value on a recurring basis $ - 3 - 3 The Company has no liabilities carried at fair value or measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company is predominantly an asset based lender with real estate serving as collateral on more than 80% of loans as of March 31, 2017. Loans which are deemed to be impaired are valued net of the allowance for loan losses, and other real estate owned is valued at the lower of cost or net realizable value of the underlying real estate collateral. Such market values are generally obtained using independent appraisals, which the Company considers to be level 2 inputs. The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis as of March 31, 2017 and December 31, 2016. As of March 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 3,855 5,370 9,225 Other real estate owned - 556 113 669 Total assets measured at fair value on a nonrecurring basis $ - 4,411 5,483 9,894 As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 4,075 4,438 8,513 Other real estate owned - 526 113 639 Total assets measured at fair value on a nonrecurring basis $ - 4,601 4,551 9,152 The Company has no liabilities carried at fair value or measured at fair value on a nonrecurring basis as of March 31, 2017 and December 31, 2016. For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of March 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: Valuation Technique Significant Unobservable Inputs Range of Inputs Impaired loans Appraised Value/ Discounted Cash Flows Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal 0-25% Other real estate owned Appraised Value/ Comparable Sales Discounts to appraisals for estimated holding or selling costs 0-25% Fair Value of Financial Instruments Financial instruments require disclosure of fair value information, whether or not recognized in the consolidated balance sheets, when it is practical to estimate the fair value. A financial instrument is defined as cash, evidence of an ownership interest in an entity or a contractual obligation which requires the exchange of cash. Certain items are specifically excluded from the disclosure requirements, including the Company’s common stock, premises and equipment and other assets and liabilities. The following is a description of valuation methodologies used to estimate fair value for certain other financial instruments. Fair value approximates carrying value for the following financial instruments due to the short-term nature of the instrument: cash and due from banks, federal funds sold, federal funds purchased, and securities sold under agreement to repurchase. Deposits – Fair value for demand deposit accounts and interest-bearing accounts with no fixed maturity date is equal to the carrying value. The fair value of certificate of deposit accounts are estimated by discounting cash flows from expected maturities using current interest rates on similar instruments. FHLB Advances and Other Borrowings – Fair value for FHLB advances and other borrowings are estimated by discounting cash flows from expected maturities using current interest rates on similar instruments. Junior subordinated debentures – Fair value for junior subordinated debentures are estimated by discounting cash flows from expected maturities using current interest rates on similar instruments. The Company has used management’s best estimate of fair value based on the above assumptions. Thus, the fair values presented may not be the amounts that could be realized in an immediate sale or settlement of the instrument. In addition, any income taxes or other expenses, which would be incurred in an actual sale or settlement, are not taken into consideration in the fair value presented. The estimated fair values of the Company’s financial instruments at March 31, 2017 and December 31, 2016 are as follows: March 31, 2017 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 5,523 5,523 - - 5,523 Loans, net 1,203,393 1,203,710 - 3,855 1,199,855 Financial Liabilities: Deposits 1,211,274 1,127,398 - 1,127,398 - FHLB and other borrowings 117,700 118,357 - 118,357 - Junior subordinated debentures 13,403 12,289 - 12,289 - December 31, 2016 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 5,742 5,742 - - 5,742 Loans, net 1,148,789 1,149,527 - 4,075 1,145,452 Financial Liabilities: Deposits 1,091,151 1,004,923 - 1,004,923 - FHLB and other borrowings 115,200 115,825 - 115,825 - Junior subordinated debentures 13,403 12,026 - 12,026 -

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Common Share [Abstract]
Earnings Per Common Share	NOTE 8 – Earnings Per Common Share The following schedule reconciles the numerators and denominators of the basic and diluted earnings per share computations for the three month periods ended March 31, 2017 and 2016. Dilutive common shares arise from the potentially dilutive effect of the Company’s stock options that were outstanding at March 31, 2017. The assumed conversion of stock options can create a difference between basic and dilutive net income per common share. At March 31, 2017 and 2016, there were 94,070 and 97,500 options, respectively, that were not considered in computing diluted earnings per common share because they were anti-dilutive. Three months ended March 31, (dollars in thousands, except share data) 2017 2016 Numerator: Net income available to common shareholders $ 3,112 3,006 Denominator: Weighted-average common shares outstanding – basic 6,437,231 6,272,847 Common stock equivalents 392,359 390,585 Weighted-average common shares outstanding – diluted 6,829,590 6,663,432 Earnings per common share: Basic $ 0.48 0.48 Diluted $ 0.46 0.45

Reportable Segments

Reportable Segments	3 Months Ended
	Mar. 31, 2017
Reportable Segments [Abstract]
Reportable Segments	NOTE 9 – Reportable Segments The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning purposes by management. The three segments include Commercial and Retail Banking, Mortgage Banking, and Corporate. The following schedule presents financial information for each reportable segment. Three months ended March 31, 2017 Commercial and Retail Mortgage (dollars in thousands) Banking Banking Corporate Eliminations Consolidated Interest income $ 13,893 66 2 (2 ) 13,959 Interest expense 2,223 - 131 (2 ) 2,352 Net interest income (loss) 11,670 66 (129 ) - 11,607 Provision for loan losses 500 - - - 500 Noninterest income 994 1,057 - - 2,051 Noninterest expense 7,446 848 66 - 8,360 Net income (loss) before taxes 4,718 275 (195 ) - 4,798 Income tax (provision) benefit (1,653 ) (102 ) 69 - (1,686 ) Net income (loss) $ 3,065 173 (126 ) - 3,112 Total assets $ 1,459,695 7,808 136,996 (136,561 ) 1,467,938 Commercial and retail banking. The Company’s primary business is to provide traditional deposit and lending products and services to its commercial and retail banking clients. Mortgage banking. The mortgage banking segment provides mortgage loan origination services for loans that will be sold in the secondary market to investors. Corporate. Corporate is comprised primarily of compensation and benefits for certain members of management and interest on parent company debt.

Nature of Business and Basis 17

Nature of Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Nature of Business and Basis of Presentation [Abstract]
Business Activity	Business Activity Southern First Bancshares, Inc. (the "Company") is a South Carolina corporation that owns all of the capital stock of Southern First Bank (the "Bank") and all of the stock of Greenville First Statutory Trust I and II (collectively, the "Trusts"). The Trusts are special purpose non-consolidated entities organized for the sole purpose of issuing trust preferred securities. The Bank's primary federal regulator is the Federal Deposit Insurance Corporation (the "FDIC"). The Bank is also regulated and examined by the South Carolina Board of Financial Institutions. The Bank is primarily engaged in the business of accepting demand deposits and savings deposits insured by the FDIC, and providing commercial, consumer and mortgage loans to the general public.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the Securities and Exchange Commission on March 3, 2017. The consolidated financial statements include the accounts of the Company and the Bank. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, “Consolidation,” the financial statements related to the Trusts have not been consolidated.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amount of income and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, real estate acquired in the settlement of loans, fair value of financial instruments, evaluating other-than-temporary-impairment of investment securities and valuation of deferred tax assets.
Business Segments	Business Segments The Company began reporting its activities as three business segments – Commercial and Retail Banking, Mortgage Banking and Corporate in 2016. In determining proper segment definition, the Company considers the materiality of a potential segment and components of the business about which financial information is available and regularly evaluated, relative to a resource allocation and performance assessment. The Company accounts for intersegment revenues and expenses as if the revenue/expense transactions were generated to third parties, that is, at current market prices. Please refer to “Note 9 – Reportable Segments” for further information on the reporting for the Company’s three business segments.
Reclassifications	Reclassifications Certain amounts, previously reported, have been reclassified to state all periods on a comparable basis and had no effect on shareholders’ equity or net income.
Subsequent Events	Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management performed an evaluation to determine whether there have been any subsequent events since the balance sheet date and determined that no subsequent events occurred requiring accrual or disclosure.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Investment Securities [Abstract]
Summary of amortized costs and fair value of investment securities	March 31, 2017 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 6,266 4 90 6,180 SBA securities 1,436 - 16 1,420 State and political subdivisions 20,584 186 198 20,572 Mortgage-backed securities 35,076 14 426 34,664 Total investment securities available for sale $ 63,362 204 730 62,836 December 31, 2016 Amortized Gross Unrealized Fair Cost Gains Losses Value Available for sale US government agencies $ 6,271 1 113 6,159 SBA securities 1,453 - 16 1,437 State and political subdivisions 20,625 141 292 20,474 Mortgage-backed securities 36,895 21 506 36,410 Total investment securities available for sale $ 65,244 163 927 64,480
Summary of contractual maturities and yields	March 31, 2017 Less than one year One to five years Five to ten years Over ten years Total (dollars in thousands) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale US government agencies $ - - 2,014 1.61 % 4,166 2.27 % - - 6,180 2.06 % SBA securities - - - - - - 1,420 1.56 % 1,420 1.56 % State and political subdivisions - - 2,822 1.80 % 12,063 2.36 % 5,687 2.82 % 20,572 2.41 % Mortgage-backed securities - - - - 8,014 1.66 % 26,650 1.82 % 34,664 1.78 % Total $ - - 4,836 1.72 % 24,243 2.11 % 33,757 1.98 % 62,836 2.01 % December 31, 2016 Less than one year One to five years Five to ten years Over ten years Total Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Available for sale US government agencies $ - - 997 1.15 % 5,162 2.23 % - - 6,159 2.06 % SBA securities - - - - - - 1,437 1.32 % 1,437 1.32 % State and political subdivisions - - 2,271 1.73 % 12,287 2.35 % 5,916 2.77 % 20,474 2.40 % Mortgage-backed securities - - - - 8,527 1.64 % 27,883 1.68 % 36,410 1.67 % Total $ - - 3,268 1.55 % 25,976 2.10 % 35,236 1.85 % 64,480 1.93 %
Summary of gross unrealized losses on investment securities and fair market value of related securities	March 31, 2017 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) # value losses # value losses # value losses Available for sale US government agencies 4 $ 3,967 $ 90 - $ - $ - 4 $ 3,967 $ 90 SBA securities - - - 1 1,421 16 1 1,421 16 State and political subdivisions 24 10,519 198 - - - 24 10,519 198 Mortgage-backed securities 26 28,837 396 2 3,722 30 28 32,559 426 Total 54 $ 43,323 $ 684 3 $ 5,143 $ 46 57 $ 48,466 $ 730 December 31, 2016 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized # value losses # value losses # value losses Available for sale US government agencies 5 $ 5,144 $ 113 - $ - $ - 5 $ 5,144 $ 113 SBA securities 1 1,437 16 - - - 1 1,437 16 State and political subdivisions 32 13,936 292 - - - 32 13,936 292 Mortgage-backed securities 25 27,292 476 2 3,991 30 27 31,283 506 Total 63 $ 47,809 $ 897 2 $ 3,991 $ 30 65 $ 51,800 $ 927
Summary of other investments	(dollars in thousands) March 31, 2017 December 31, 2016 Federal Home Loan Bank stock $ 4,965 5,173 Investment in Trust Preferred securities 403 403 Other investments 155 166 Total other investments $ 5,523 5,742

Loans and Allowance for Loan 19

Loans and Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Summary of composition of loan portfolio	March 31, 2017 December 31, 2016 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 288,300 23.7 % $ 285,938 24.6 % Non-owner occupied RE 258,449 21.2 % 239,574 20.6 % Construction 36,889 3.0 % 33,393 2.9 % Business 208,590 17.1 % 202,552 17.4 % Total commercial loans 792,228 65.0 % 761,457 65.5 % Consumer Real estate 230,695 18.9 % 215,588 18.5 % Home equity 143,673 11.8 % 137,105 11.8 % Construction 31,535 2.6 % 31,922 2.7 % Other 20,549 1.7 % 17,572 1.5 % Total consumer loans 426,452 35.0 % 402,187 34.5 % Total gross loans, net of deferred fees 1,218,680 100.0 % 1,163,644 100.0 % Less—allowance for loan losses (15,287 ) (14,855 ) Total loans, net $ 1,203,393 $ 1,148,789
Summary of loan maturity distribution by type and related interest rate	March 31, 2017 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 22,336 149,371 116,593 288,300 Non-owner occupied RE 33,669 140,116 84,664 258,449 Construction 9,077 11,358 16,454 36,889 Business 62,790 106,729 39,071 208,590 Total commercial loans 127,872 407,574 256,782 792,228 Consumer Real estate 28,754 52,367 149,574 230,695 Home equity 7,391 29,494 106,788 143,673 Construction 15,762 606 15,167 31,535 Other 6,600 9,629 4,320 20,549 Total consumer loans 58,507 92,096 275,849 426,452 Total gross loans, net of deferred fees $ 186,379 499,670 532,631 1,218,680 Loans maturing after one year with: Fixed interest rates $ 778,861 Floating interest rates 253,440 December 31, 2016 After one One year but within After five or less five years years Total Commercial Owner occupied RE $ 26,062 145,419 114,457 285,938 Non-owner occupied RE 34,685 142,261 62,628 239,574 Construction 5,881 9,558 17,954 33,393 Business 66,361 99,255 36,936 202,552 Total commercial loans 132,989 396,493 231,975 761,457 Consumer Real estate 26,342 49,832 139,414 215,588 Home equity 7,142 29,041 100,922 137,105 Construction 14,103 627 17,192 31,922 Other 5,049 9,305 3,218 17,572 Total consumer 52,636 88,805 260,746 402,187 Total gross loan, net of deferred fees $ 185,625 485,298 492,721 1,163,644 Loans maturing after one year with: Fixed interest rates $ 733,892 Floating interest rates 244,127
Summary of nonperforming assets, including nonaccruing TDRs	(dollars in thousands) March 31, 2017 December 31, 2016 Commercial Owner occupied RE $ 266 276 Non-owner occupied RE 2,514 2,711 Construction - - Business 1,616 686 Consumer Real estate 541 550 Home equity 257 256 Construction - - Other 5 13 Nonaccruing troubled debt restructurings 979 990 Total nonaccrual loans, including nonaccruing TDRs 6,178 5,482 Other real estate owned 669 639 Total nonperforming assets $ 6,847 6,121 Nonperforming assets as a percentage of: Total assets 0.47 % 0.46 % Gross loans 0.56 % 0.53 % Total loans over 90 days past due 1,688 1,984 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings $ 5,795 5,675
Summary of key information for impaired loans	March 31, 2017 Recorded investment Impaired loans Unpaid with related Related Principal Impaired allowance for allowance for (dollars in thousands) Balance loans loan losses loan losses Commercial Owner occupied RE $ 2,271 2,220 2,220 420 Non-owner occupied RE 7,226 3,823 1,503 410 Construction - - - - Business 4,353 3,665 2,943 1,160 Total commercial 13,850 9,708 6,666 1,990 Consumer Real estate 1,844 1,828 1,642 605 Home equity 262 257 123 61 Construction - - - - Other 181 181 181 93 Total consumer 2,287 2,266 1,946 759 Total $ 16,137 11,974 8,612 2,749 December 31, 2016 Recorded investment Impaired loans Unpaid with related Related Principal Impaired allowance for allowance for Balance loans loan losses loan losses Commercial Owner occupied RE $ 2,284 2,243 2,224 263 Non-owner occupied RE 7,238 4,031 1,638 457 Construction - - - - Business 3,699 2,593 1,610 1,154 Total commercial 13,221 8,867 5,472 1,874 Consumer Real estate 1,853 1,843 1,843 682 Home equity 207 257 - - Construction - - - - Other 261 190 177 88 Total consumer 2,321 2,290 2,020 770 Total $ 15,542 11,157 7,492 2,644
Summary of average recorded investment and interest income recognized on impaired loans	Three months ended Three months ended Year ended March 31, 2017 March 31, 2016 December 31, 2016 Average Recognized Average Recognized Average Recognized recorded interest recorded interest recorded interest (dollars in thousands) investment income investment income investment income Commercial Owner occupied RE $ 2,232 28 $ 615 7 2,263 112 Non-owner occupied RE 3,927 29 5,731 48 4,106 200 Construction - - 1,778 30 - - Business 3,675 40 2,760 30 2,873 135 Total commercial 9,834 97 10,884 115 9,242 447 Consumer Real estate 1,836 16 1,119 9 1,854 81 Home equity 256 1 195 2 257 2 Construction - - - - - - Other 182 - 257 - 203 6 Total consumer 2,274 17 1,571 11 2,314 89 Total $ 12,108 114 $ 12,455 126 11,556 536
Summary of allowance for loan losses by commercial and consumer portfolio segments	Three months ended March 31, 2017 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,843 2,778 295 4,123 2,780 1,475 252 309 14,855 Provision for loan losses 209 369 39 (321 ) (40 ) 143 37 64 500 Loan charge-offs - (181 ) - (9 ) - - - - (190 ) Loan recoveries - 1 - 30 90 1 - - 122 Net loan charge-offs - (180 ) - 21 90 1 - - (68 ) Balance, end of period $ 3,052 2,967 334 3,823 2,830 1,619 289 373 15,287 Net charge-offs to average loans (annualized) 0.02% Allowance for loan losses to gross loans 1.25% Allowance for loan losses to nonperforming loans 247.43% Three months ended March 31, 2016 Commercial Consumer Owner Non-owner occupied occupied Real Home (dollars in thousands) RE RE Construction Business Estate equity Construction Other Total Balance, beginning of period $ 2,347 3,187 338 3,800 2,070 1,202 313 372 13,629 Provision for loan losses 151 122 104 (158 ) 248 61 38 59 625 Loan charge-offs (5 ) (75 ) - (36 ) (187 ) - - (91 ) (394 ) Loan recoveries - 2 - 33 - - - 3 38 Net loan charge-offs (5 ) (73 ) - (3 ) (187 ) - - (88 ) (356 ) Balance, end of period $ 2,493 3,236 442 3,639 2,131 1,263 351 343 13,898 Net charge-offs to average loans (annualized) 0.14% Allowance for loan losses to gross loans 1.34% Allowance for loan losses to nonperforming loans 224.56%
Summary of allowance for loan losses and recorded investment in loans by impairment methodology	March 31, 2017 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 1,990 759 2,749 9,708 2,266 11,974 Collectively evaluated 8,230 4,308 12,538 782,520 424,186 1,206,706 Total $ 10,220 5,067 15,287 792,228 426,452 1,218,680 December 31, 2016 Allowance for loan losses Recorded investment in loans Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 1,874 770 2,644 8,867 2,290 11,157 Collectively evaluated 8,165 4,046 12,211 752,590 399,897 1,152,487 Total $ 10,039 4,816 14,855 761,457 402,187 1,163,644
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Summary of breakdown of outstanding loans by risk category	March 31, 2017 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 282,726 253,421 36,889 198,953 771,989 Special mention 3,164 976 - 3,735 7,875 Substandard 2,410 4,052 - 5,902 12,364 Doubtful - - - - - $ 288,300 258,449 36,889 208,590 792,228 December 31, 2016 Owner Non-owner occupied RE occupied RE Construction Business Total Pass $ 282,055 234,957 33,393 193,517 743,922 Special mention 1,097 975 - 2,489 4,561 Substandard 2,786 3,642 - 6,546 12,974 Doubtful - - - - - $ 285,938 239,574 33,393 202,552 761,457
Summary of outstanding loans which include loans on nonaccrual by past due status	March 31, 2017 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 288,035 256,991 36,889 206,466 788,381 30-59 days past due - 416 - 651 1,067 60-89 days past due 249 - - 1,100 1,349 Greater than 90 Days 16 1,042 - 373 1,431 $ 288,300 258,449 36,889 208,590 792,228 December 31, 2016 Owner Non-owner occupied RE occupied RE Construction Business Total Current $ 284,700 238,346 33,393 200,624 757,063 30-59 days past due 981 - - 1,423 2,404 60-89 days past due 257 56 - - 313 Greater than 90 Days - 1,172 - 505 1,677 $ 285,938 239,574 33,393 202,552 761,457
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Summary of breakdown of outstanding loans by risk category	March 31, 2017 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 226,785 140,439 31,535 20,428 419,187 Special mention 860 2,184 - 24 3,068 Substandard 3,050 1,050 - 97 4,197 Doubtful - - - - - Loss - - - - - $ 230,695 143,673 31,535 20,549 426,452 December 31, 2016 Real estate Home equity Construction Other Total Pass $ 211,563 134,124 31,922 17,485 395,094 Special mention 1,064 2,109 - 16 3,189 Substandard 2,961 872 - 71 3,904 Doubtful - - - - - Loss - - - - - $ 215,588 137,105 31,922 17,572 402,187
Summary of outstanding loans which include loans on nonaccrual by past due status	March 31, 2017 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 229,729 143,078 31,535 20,510 424,852 30-59 days past due 413 209 - 39 661 60-89 days past due 553 129 - - 682 Greater than 90 Days - 257 - - 257 $ 230,695 143,673 31,535 20,549 426,452 December 31, 2016 Real estate Home equity Construction Other Total Current $ 214,228 136,638 31,922 17,427 400,215 30-59 days past due 1,041 210 - 126 1,377 60-89 days past due 282 - - 6 288 Greater than 90 Days 37 257 - 13 307 $ 215,588 137,105 31,922 17,572 402,187

Troubled Debt Restructurings (T

Troubled Debt Restructurings (Tables)	3 Months Ended
	Mar. 31, 2017
Troubled Debt Restructurings [Abstract]
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification	For the three months ended March 31, 2017 Pre- Post- modification modification Renewals Reduced Converted Maturity Total outstanding outstanding deemed a or deferred to interest date Number recorded recorded (dollars in thousands) concession payments only extensions of loans investment investment Commercial Business 1 - - - 1 $ 149 $ 149 Total loans 1 - - - 1 $ 149 $ 149

Derivative Financial Instrume21

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Financial Instruments [Abstract]
Schedule of outstanding financial derivative instruments	March 31, 2017 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 29,583 Other assets $ 455 MBS forward sales commitments 18,000 Other assets (140 ) Total derivative financial instruments $ 47,583 $ 315 December 31, 2016 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 17,986 Other assets $ 256 MBS forward sales commitments 14,250 Other assets (3 ) Total derivative financial instruments $ 32,236 $ 253

Fair Value Accounting (Tables)

Fair Value Accounting (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Accounting [Abstract]
Schedule of assets and liabilities measured at fair value on recurring basis	March 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 6,180 - 6,180 SBA securities - 1,420 - 1,420 State and political subdivisions - 20,572 - 20,572 Mortgage-backed securities - 34,664 - 34,664 Mortgage loans held for sale - 7,452 - 7,452 Interest rate lock commitments - 455 - 455 Total assets measured at fair value on a recurring basis $ - 70,743 - 70,743 Liabilities MBS forward sales commitments $ - 140 - 140 Total liabilities measured at fair value on a recurring basis $ - 140 - 140 December 31, 2016 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale: US government agencies $ - 6,159 - 6,159 SBA securities - 1,437 - 1,437 State and political subdivisions - 20,474 - 20,474 Mortgage-backed securities - 36,410 - 36,410 Mortgage loans held for sale - 7,801 - 7,801 Interest rate lock commitments - 256 - 256 Total assets measured at fair value on a recurring basis $ - 72,537 - 72,537 Liabilities MBS forward sales commitments $ - 3 - 3 Total liabilities measured at fair value on a recurring basis $ - 3 - 3
Schedule of assets and liabilities measured on a nonrecurring basis	As of March 31, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 3,855 5,370 9,225 Other real estate owned - 556 113 669 Total assets measured at fair value on a nonrecurring basis $ - 4,411 5,483 9,894 As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 4,075 4,438 8,513 Other real estate owned - 526 113 639 Total assets measured at fair value on a nonrecurring basis $ - 4,601 4,551 9,152
Schedule of unobservable inputs used in the fair value measurements	Valuation Technique Significant Unobservable Inputs Range of Inputs Impaired loans Appraised Value/ Discounted Cash Flows Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal 0-25% Other real estate owned Appraised Value/ Comparable Sales Discounts to appraisals for estimated holding or selling costs 0-25%
Estimated fair values of the company's financial instruments	March 31, 2017 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 5,523 5,523 - - 5,523 Loans, net 1,203,393 1,203,710 - 3,855 1,199,855 Financial Liabilities: Deposits 1,211,274 1,127,398 - 1,127,398 - FHLB and other borrowings 117,700 118,357 - 118,357 - Junior subordinated debentures 13,403 12,289 - 12,289 - December 31, 2016 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 5,742 5,742 - - 5,742 Loans, net 1,148,789 1,149,527 - 4,075 1,145,452 Financial Liabilities: Deposits 1,091,151 1,004,923 - 1,004,923 - FHLB and other borrowings 115,200 115,825 - 115,825 - Junior subordinated debentures 13,403 12,026 - 12,026 -

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Common Share [Abstract]
Schedule of earnings per share reconciliation	Three months ended March 31, (dollars in thousands, except share data) 2017 2016 Numerator: Net income available to common shareholders $ 3,112 3,006 Denominator: Weighted-average common shares outstanding – basic 6,437,231 6,272,847 Common stock equivalents 392,359 390,585 Weighted-average common shares outstanding – diluted 6,829,590 6,663,432 Earnings per common share: Basic $ 0.48 0.48 Diluted $ 0.46 0.45

Reportable Segments (Tables)

Reportable Segments (Tables)	3 Months Ended
	Mar. 31, 2017
Reportable Segments [Abstract]
Schedule of financial information for each reportable segment	Three months ended March 31, 2017 Commercial and Retail Mortgage (dollars in thousands) Banking Banking Corporate Eliminations Consolidated Interest income $ 13,893 66 2 (2 ) 13,959 Interest expense 2,223 - 131 (2 ) 2,352 Net interest income (loss) 11,670 66 (129 ) - 11,607 Provision for loan losses 500 - - - 500 Noninterest income 994 1,057 - - 2,051 Noninterest expense 7,446 848 66 - 8,360 Net income (loss) before taxes 4,718 275 (195 ) - 4,798 Income tax (provision) benefit (1,653 ) (102 ) 69 - (1,686 ) Net income (loss) $ 3,065 173 (126 ) - 3,112 Total assets $ 1,459,695 7,808 136,996 (136,561 ) 1,467,938

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Available for sale
Total investment securities available for sale, Amortized Cost	$ 63,362	$ 65,244
Total investment securities available for sale, Gross Unrealized Gains	204	163
Total investment securities available for sale, Gross Unrealized Losses	730	927
Available-for-sale securities, investment securities, Fair Value	62,836	64,480
US government agencies [Member]
Available for sale
Total investment securities available for sale, Amortized Cost	6,266	6,271
Total investment securities available for sale, Gross Unrealized Gains	4	1
Total investment securities available for sale, Gross Unrealized Losses	90	113
Available-for-sale securities, investment securities, Fair Value	6,180	6,159
SBA securities [Member]
Available for sale
Total investment securities available for sale, Amortized Cost	1,436	1,453
Total investment securities available for sale, Gross Unrealized Gains
Total investment securities available for sale, Gross Unrealized Losses	16	16
Available-for-sale securities, investment securities, Fair Value	1,420	1,437
State and political subdivisions [Member]
Available for sale
Total investment securities available for sale, Amortized Cost	20,584	20,625
Total investment securities available for sale, Gross Unrealized Gains	186	141
Total investment securities available for sale, Gross Unrealized Losses	198	292
Available-for-sale securities, investment securities, Fair Value	20,572	20,474
Mortgage-backed securities [Member]
Available for sale
Total investment securities available for sale, Amortized Cost	35,076	36,895
Total investment securities available for sale, Gross Unrealized Gains	14	21
Total investment securities available for sale, Gross Unrealized Losses	426	506
Available-for-sale securities, investment securities, Fair Value	$ 34,664	$ 36,410

Investment Securities (Details

Investment Securities (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Loan maturity distribution by type and related interest rate
Available-for-sale Securities, Contractual Maturities, Less than one year, Value
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield
Available-for-sale Securities, Contractual Maturities, One to five years, Value	$ 4,836	$ 3,268
Available-for-sale Securities, Contractual Maturities, One to five years, Yield	1.72%	1.55%
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value	$ 24,243	$ 25,976
Available-for-sale Securities, Contractual Maturities, Five to ten years, Yield	2.11%	2.10%
Available-for-sale Securities, Contractual Maturities, Over ten years, Value	$ 33,757	$ 35,236
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield	1.98%	1.85%
Investment securities available for sale, Value	$ 62,836	$ 64,480
Available-for-sale Securities, Contractual Securities, Yield Total	2.01%	1.93%
US government agencies [Member]
Loan maturity distribution by type and related interest rate
Available-for-sale Securities, Contractual Maturities, Less than one year, Value
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield
Available-for-sale Securities, Contractual Maturities, One to five years, Value	$ 2,014	$ 997
Available-for-sale Securities, Contractual Maturities, One to five years, Yield	1.61%	1.15%
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value	$ 4,166	$ 5,162
Available-for-sale Securities, Contractual Maturities, Five to ten years, Yield	2.27%	2.23%
Available-for-sale Securities, Contractual Maturities, Over ten years, Value
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield
Investment securities available for sale, Value	$ 6,180	$ 6,159
Available-for-sale Securities, Contractual Securities, Yield Total	2.06%	2.06%
SBA securities [Member]
Loan maturity distribution by type and related interest rate
Available-for-sale Securities, Contractual Maturities, Less than one year, Value
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield
Available-for-sale Securities, Contractual Maturities, One to five years, Value
Available-for-sale Securities, Contractual Maturities, One to five years, Yield
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value
Available-for-sale Securities, Contractual Maturities, Five to ten years, Yield
Available-for-sale Securities, Contractual Maturities, Over ten years, Value	$ 1,420	$ 1,437
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield	1.56%	1.32%
Investment securities available for sale, Value	$ 1,420	$ 1,437
Available-for-sale Securities, Contractual Securities, Yield Total	1.56%	1.32%
State and political subdivisions [Member]
Loan maturity distribution by type and related interest rate
Available-for-sale Securities, Contractual Maturities, Less than one year, Value
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield
Available-for-sale Securities, Contractual Maturities, One to five years, Value	$ 2,822	$ 2,271
Available-for-sale Securities, Contractual Maturities, One to five years, Yield	1.80%	1.73%
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value	$ 12,063	$ 12,287
Available-for-sale Securities, Contractual Maturities, Five to ten years, Yield	2.36%	2.35%
Available-for-sale Securities, Contractual Maturities, Over ten years, Value	$ 5,687	$ 5,916
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield	2.82%	2.77%
Investment securities available for sale, Value	$ 20,572	$ 20,474
Available-for-sale Securities, Contractual Securities, Yield Total	2.41%	2.40%
Mortgage-backed securities [Member]
Loan maturity distribution by type and related interest rate
Available-for-sale Securities, Contractual Maturities, Less than one year, Value
Available-for-sale Securities, Contractual Maturities, Less than one year, Yield
Available-for-sale Securities, Contractual Maturities, One to five years, Value
Available-for-sale Securities, Contractual Maturities, One to five years, Yield
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value	$ 8,014	$ 8,527
Available-for-sale Securities, Contractual Maturities, Five to ten years, Yield	1.66%	1.64%
Available-for-sale Securities, Contractual Maturities, Over ten years, Value	$ 26,650	$ 27,883
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield	1.82%	1.68%
Investment securities available for sale, Value	$ 34,664	$ 36,410
Available-for-sale Securities, Contractual Securities, Yield Total	1.78%	1.67%

Investment Securities (Detail27

Investment Securities (Details 2) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017USD ($)Investment	Dec. 31, 2016USD ($)Investment
Summary of gross unrealized losses on investment securities and fair market value of related securities
Number of investments, Less than 12 months | Investment	54	63
Available-for-sale Securities, Less than 12 months, Fair Value	$ 43,323	$ 47,809
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 684	$ 897
Number of investments, 12 months or longer | Investment	3	2
Available-for-sale Securities, 12 months or longer, Fair Value	$ 5,143	$ 3,991
Available-for-sale Securities, 12 Months or longer, Unrealized losses	$ 46	$ 30
Number of investments, Total | Investment	57	65
Available-for-sale Securities, Fair Value, Total	$ 48,466	$ 51,800
Available-for-sale Securities, Unrealized losses, Total	$ 730	$ 927
US government agencies [Member]
Summary of gross unrealized losses on investment securities and fair market value of related securities
Number of investments, Less than 12 months | Investment	4	5
Available-for-sale Securities, Less than 12 months, Fair Value	$ 3,967	$ 5,144
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 90	$ 113
Number of investments, 12 months or longer | Investment
Available-for-sale Securities, 12 months or longer, Fair Value
Available-for-sale Securities, 12 Months or longer, Unrealized losses
Number of investments, Total | Investment	4	5
Available-for-sale Securities, Fair Value, Total	$ 3,967	$ 5,144
Available-for-sale Securities, Unrealized losses, Total	$ 90	$ 113
SBA securities [Member]
Summary of gross unrealized losses on investment securities and fair market value of related securities
Number of investments, Less than 12 months | Investment		1
Available-for-sale Securities, Less than 12 months, Fair Value		$ 1,437
Available-for-sale Securities, Less than 12 months, Unrealized losses		$ 16
Number of investments, 12 months or longer | Investment	1
Available-for-sale Securities, 12 months or longer, Fair Value	$ 1,421
Available-for-sale Securities, 12 Months or longer, Unrealized losses	$ 16
Number of investments, Total | Investment	1	1
Available-for-sale Securities, Fair Value, Total	$ 1,421	$ 1,437
Available-for-sale Securities, Unrealized losses, Total	$ 16	$ 16
State and political subdivisions [Member]
Summary of gross unrealized losses on investment securities and fair market value of related securities
Number of investments, Less than 12 months | Investment	24	32
Available-for-sale Securities, Less than 12 months, Fair Value	$ 10,519	$ 13,936
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 198	$ 292
Number of investments, 12 months or longer | Investment
Available-for-sale Securities, 12 months or longer, Fair Value
Available-for-sale Securities, 12 Months or longer, Unrealized losses
Number of investments, Total | Investment	24	32
Available-for-sale Securities, Fair Value, Total	$ 10,519	$ 13,936
Available-for-sale Securities, Unrealized losses, Total	$ 198	$ 292
Mortgage-backed securities [Member]
Summary of gross unrealized losses on investment securities and fair market value of related securities
Number of investments, Less than 12 months | Investment	26	25
Available-for-sale Securities, Less than 12 months, Fair Value	$ 28,837	$ 27,292
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 396	$ 476
Number of investments, 12 months or longer | Investment	2	2
Available-for-sale Securities, 12 months or longer, Fair Value	$ 3,722	$ 3,991
Available-for-sale Securities, 12 Months or longer, Unrealized losses	$ 30	$ 30
Number of investments, Total | Investment	28	27
Available-for-sale Securities, Fair Value, Total	$ 32,559	$ 31,283
Available-for-sale Securities, Unrealized losses, Total	$ 426	$ 506

Investment Securities (Detail28

Investment Securities (Details 3) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Other investments
Federal Home Loan Bank stock	$ 4,965	$ 5,173
Investment in Trust Preferred securities	403	403
Other investments	155	166
Total other investments	$ 5,523	$ 5,742

Investment Securities (Detail29

Investment Securities (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Investment	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)Investment
Investment Securities (Textual)
Sale of investment securities		$ 12,200
Gain on sale of investment securities		$ 307
Fair market value, less than 12 months	43,300
Fair market value, 12 months or longer	5,100
Securities pledged as collateral for repurchase agreements from brokers			$ 21,000
Securities pledged to secure client deposit	$ 20,700		$ 21,100
Number of investments, less than 12 months | Investment	54		63
Number of investments, 12 months or longer | Investment	3		2

Mortgage Loans Held for Sale (D

Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Mortgage Loans Held for Sale (Textual)
Mortgage loans held for sale, fair value	$ 7.5	$ 7.8

Loans and Allowance for Loan 31

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 1,218,680	$ 1,163,644
Less allowance for loan losses	(15,287)	(14,855)
Total loans, net	$ 1,203,393	$ 1,148,789
Total gross loans, net of deferred fees, (Percentage)	100.00%	100.00%
Commercial [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 792,228	$ 761,457
Total gross loans, net of deferred fees, (Percentage)	65.00%	65.50%
Commercial [Member] | Owner occupied RE [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 288,300	$ 285,938
Total gross loans, net of deferred fees, (Percentage)	23.70%	24.60%
Commercial [Member] | Non-owner occupied RE [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 258,449	$ 239,574
Total gross loans, net of deferred fees, (Percentage)	21.20%	20.60%
Commercial [Member] | Construction [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 36,889	$ 33,393
Total gross loans, net of deferred fees, (Percentage)	3.00%	2.90%
Commercial [Member] | Business [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 208,590	$ 202,552
Total gross loans, net of deferred fees, (Percentage)	17.10%	17.40%
Consumer [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 426,452	$ 402,187
Total gross loans, net of deferred fees, (Percentage)	35.00%	34.50%
Consumer [Member] | Real estate [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 230,695	$ 215,588
Total gross loans, net of deferred fees, (Percentage)	18.90%	18.50%
Consumer [Member] | Home equity [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 143,673	$ 137,105
Total gross loans, net of deferred fees, (Percentage)	11.80%	11.80%
Consumer [Member] | Construction [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 31,535	$ 31,922
Total gross loans, net of deferred fees, (Percentage)	2.60%	2.70%
Consumer [Member] | Other [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 20,549	$ 17,572
Total gross loans, net of deferred fees, (Percentage)	1.70%	1.50%

Loans and Allowance for Loan 32

Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	$ 186,379	$ 185,625
Total gross loans, net of deferred fees, After one but within five years	499,670	485,298
Total gross loans, net of deferred fees, After five years	532,631	492,721
Total gross loans, net of deferred fees	1,218,680	1,163,644
Loans maturing after one year with: fixed interest rates	778,861	733,892
Loans maturing after one year with: floating interest rates	253,440	244,127
Commercial [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	127,872	132,989
Total gross loans, net of deferred fees, After one but within five years	407,574	396,493
Total gross loans, net of deferred fees, After five years	256,782	231,975
Total gross loans, net of deferred fees	792,228	761,457
Commercial [Member] | Owner occupied RE [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	22,336	26,062
Total gross loans, net of deferred fees, After one but within five years	149,371	145,419
Total gross loans, net of deferred fees, After five years	116,593	114,457
Total gross loans, net of deferred fees	288,300	285,938
Commercial [Member] | Non-owner occupied RE [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	33,669	34,685
Total gross loans, net of deferred fees, After one but within five years	140,116	142,261
Total gross loans, net of deferred fees, After five years	84,664	62,628
Total gross loans, net of deferred fees	258,449	239,574
Commercial [Member] | Construction [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	9,077	5,881
Total gross loans, net of deferred fees, After one but within five years	11,358	9,558
Total gross loans, net of deferred fees, After five years	16,454	17,954
Total gross loans, net of deferred fees	36,889	33,393
Commercial [Member] | Business [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	62,790	66,361
Total gross loans, net of deferred fees, After one but within five years	106,729	99,255
Total gross loans, net of deferred fees, After five years	39,071	36,936
Total gross loans, net of deferred fees	208,590	202,552
Consumer [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	58,507	52,636
Total gross loans, net of deferred fees, After one but within five years	92,096	88,805
Total gross loans, net of deferred fees, After five years	275,849	260,746
Total gross loans, net of deferred fees	426,452	402,187
Consumer [Member] | Real estate [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	28,754	26,342
Total gross loans, net of deferred fees, After one but within five years	52,367	49,832
Total gross loans, net of deferred fees, After five years	149,574	139,414
Total gross loans, net of deferred fees	230,695	215,588
Consumer [Member] | Home equity [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	7,391	7,142
Total gross loans, net of deferred fees, After one but within five years	29,494	29,041
Total gross loans, net of deferred fees, After five years	106,788	100,922
Total gross loans, net of deferred fees	143,673	137,105
Consumer [Member] | Construction [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	15,762	14,103
Total gross loans, net of deferred fees, After one but within five years	606	627
Total gross loans, net of deferred fees, After five years	15,167	17,192
Total gross loans, net of deferred fees	31,535	31,922
Consumer [Member] | Other [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	6,600	5,049
Total gross loans, net of deferred fees, After one but within five years	9,629	9,305
Total gross loans, net of deferred fees, After five years	4,320	3,218
Total gross loans, net of deferred fees	$ 20,549	$ 17,572

Loans and Allowance for Loan 33

Loans and Allowance for Loan Losses (Details 2) - Commercial Loans [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	$ 792,228	$ 761,457
Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	288,300	285,938
Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	258,449	239,574
Construction [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	36,889	33,393
Business [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	208,590	202,552
Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	771,989	743,922
Pass [Member] | Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	282,726	282,055
Pass [Member] | Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	253,421	234,957
Pass [Member] | Construction [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	36,889	33,393
Pass [Member] | Business [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	198,953	193,517
Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	7,875	4,561
Special mention [Member] | Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	3,164	1,097
Special mention [Member] | Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	976	975
Special mention [Member] | Construction [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans
Special mention [Member] | Business [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	3,735	2,489
Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	12,364	12,974
Substandard [Member] | Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	2,410	2,786
Substandard [Member] | Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	4,052	3,642
Substandard [Member] | Construction [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans
Substandard [Member] | Business [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	5,902	6,546
Doubtful [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans
Doubtful [Member] | Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans
Doubtful [Member] | Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans
Doubtful [Member] | Construction [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans
Doubtful [Member] | Business [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans

Loans and Allowance for Loan 34

Loans and Allowance for Loan Losses (Details 3) - Commercial [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	$ 788,381	$ 757,063
30-59 days past due	1,067	2,404
60-89 days past due	1,349	313
Greater than 90 Days	1,431	1,677
Total commercial loans	792,228	761,457
Owner occupied RE [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	288,035	284,700
30-59 days past due		981
60-89 days past due	249	257
Greater than 90 Days	16
Total commercial loans	288,300	285,938
Non-owner occupied RE [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	256,991	238,346
30-59 days past due	416
60-89 days past due		56
Greater than 90 Days	1,042	1,172
Total commercial loans	258,449	239,574
Construction [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	36,889	33,393
30-59 days past due
60-89 days past due
Greater than 90 Days
Total commercial loans	36,889	33,393
Business [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	206,466	200,624
30-59 days past due	651	1,423
60-89 days past due	1,100
Greater than 90 Days	373	505
Total commercial loans	$ 208,590	$ 202,552

Loans and Allowance for Loan 35

Loans and Allowance for Loan Losses (Details 4) - Consumer Loans [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	$ 426,452	$ 402,187
Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	419,187	395,094
Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	3,068	3,189
Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	4,197	3,904
Doubtful [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Loss [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Real estate [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	230,695	215,588
Real estate [Member] | Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	226,785	211,563
Real estate [Member] | Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	860	1,064
Real estate [Member] | Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	3,050	2,961
Real estate [Member] | Doubtful [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Real estate [Member] | Loss [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Home equity [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	143,673	137,105
Home equity [Member] | Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	140,439	134,124
Home equity [Member] | Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	2,184	2,109
Home equity [Member] | Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	1,050	872
Home equity [Member] | Doubtful [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Home equity [Member] | Loss [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Construction [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	31,535	31,922
Construction [Member] | Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	31,535	31,922
Construction [Member] | Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Construction [Member] | Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Construction [Member] | Doubtful [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Construction [Member] | Loss [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Other [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	20,549	17,572
Other [Member] | Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	20,428	17,485
Other [Member] | Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	24	16
Other [Member] | Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	97	71
Other [Member] | Doubtful [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans
Other [Member] | Loss [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans

Loans and Allowance for Loan 36

Loans and Allowance for Loan Losses (Details 5) - Consumer [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	$ 424,852	$ 400,215
30-59 days past due	661	1,377
60-89 days past due	682	288
Greater than 90 Days	257	307
Total consumer loans	426,452	402,187
Real estate [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	229,729	214,228
30-59 days past due	413	1,041
60-89 days past due	553	282
Greater than 90 Days		37
Total consumer loans	230,695	215,588
Home equity [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	143,078	136,638
30-59 days past due	209	210
60-89 days past due	129
Greater than 90 Days	257	257
Total consumer loans	143,673	137,105
Construction [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	31,535	31,922
30-59 days past due
60-89 days past due
Greater than 90 Days
Total consumer loans	31,535	31,922
Other [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	20,510	17,427
30-59 days past due	39	126
60-89 days past due		6
Greater than 90 Days		13
Total consumer loans	$ 20,549	$ 17,572

Loans and Allowance for Loan 37

Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Summary of nonperforming assets, including nonaccruing TDRs
Nonaccruing troubled debt restructurings	$ 979	$ 990
Total nonaccrual loans, including nonaccruing TDRs	6,178	5,482
Other real estate owned	669	639
Total nonperforming assets	$ 6,847	$ 6,121
Nonperforming assets as a percentage of:
Total assets	0.47%	0.46%
Gross loans	0.56%	0.53%
Total loans over 90 days past due	$ 1,688	$ 1,984
Loans over 90 days past due and still accruing
Accruing troubled debt restructurings	5,795	5,675
Commercial [Member] | Owner occupied RE [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	266	276
Commercial [Member] | Non-owner occupied RE [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	2,514	2,711
Commercial [Member] | Construction [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs
Commercial [Member] | Business [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	1,616	686
Consumer [Member] | Real estate [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	541	550
Consumer [Member] | Home equity [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	257	256
Consumer [Member] | Construction [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs
Consumer [Member] | Other [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	$ 5	$ 13

Loans and Allowance for Loan 38

Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Summary of key information for impaired loans
Unpaid Principal Balance	$ 16,137	$ 15,542
Impaired loans	11,974	11,157
Impaired loans with related allowance for loan losses	8,612	7,492
Related allowance for loan losses	2,749	2,644
Commercial [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	13,850	13,221
Impaired loans	9,708	8,867
Impaired loans with related allowance for loan losses	6,666	5,472
Related allowance for loan losses	1,990	1,874
Commercial [Member] | Owner occupied RE [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	2,271	2,284
Impaired loans	2,220	2,243
Impaired loans with related allowance for loan losses	2,220	2,224
Related allowance for loan losses	420	263
Commercial [Member] | Non-owner occupied RE [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	7,226	7,238
Impaired loans	3,823	4,031
Impaired loans with related allowance for loan losses	1,503	1,638
Related allowance for loan losses	410	457
Commercial [Member] | Construction [Member]
Summary of key information for impaired loans
Unpaid Principal Balance
Impaired loans
Impaired loans with related allowance for loan losses
Related allowance for loan losses
Commercial [Member] | Business [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	4,353	3,699
Impaired loans	3,665	2,593
Impaired loans with related allowance for loan losses	2,943	1,610
Related allowance for loan losses	1,160	1,154
Consumer [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	2,287	2,321
Impaired loans	2,266	2,290
Impaired loans with related allowance for loan losses	1,946	2,020
Related allowance for loan losses	759	770
Consumer [Member] | Real estate [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	1,844	1,853
Impaired loans	1,828	1,843
Impaired loans with related allowance for loan losses	1,642	1,843
Related allowance for loan losses	605	682
Consumer [Member] | Home equity [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	262	207
Impaired loans	257	257
Impaired loans with related allowance for loan losses	123
Related allowance for loan losses	61
Consumer [Member] | Construction [Member]
Summary of key information for impaired loans
Unpaid Principal Balance
Impaired loans
Impaired loans with related allowance for loan losses
Related allowance for loan losses
Consumer [Member] | Other [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	181	261
Impaired loans	181	190
Impaired loans with related allowance for loan losses	181	177
Related allowance for loan losses	$ 93	$ 88

Loans and Allowance for Loan 39

Loans and Allowance for Loan Losses (Details 8) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	$ 12,108	$ 12,455	$ 11,556
Recognized interest income	114	126	536
Commercial [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	9,834	10,884	9,242
Recognized interest income	97	115	447
Commercial [Member] | Owner occupied RE [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	2,232	615	2,263
Recognized interest income	28	7	112
Commercial [Member] | Non-owner occupied RE [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	3,927	5,731	4,106
Recognized interest income	29	48	200
Commercial [Member] | Construction [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment		1,778
Recognized interest income		30
Commercial [Member] | Business [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	3,675	2,760	2,873
Recognized interest income	40	30	135
Consumer [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	2,274	1,571	2,314
Recognized interest income	17	11	89
Consumer [Member] | Real estate [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	1,836	1,119	1,854
Recognized interest income	16	9	81
Consumer [Member] | Home equity [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	256	195	257
Recognized interest income	1	2	2
Consumer [Member] | Construction [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment
Recognized interest income
Consumer [Member] | Other [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	182	257	203
Recognized interest income			$ 6

Loans and Allowance for Loan 40

Loans and Allowance for Loan Losses (Details 9) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Summary of activity related to our allowance for loan losses
Balance, beginning of period	$ 14,855	$ 13,629
Provision for loan losses	500	625
Loan charge-offs	(190)	(394)
Loan recoveries	122	38
Net loan charge-offs	(68)	(356)
Balance, end of period	$ 15,287	$ 13,898
Net charge-offs to average loans (annualized)	0.02%	0.14%
Allowance for loan losses to gross loans	1.25%	1.34%
Allowance for loan losses to nonperforming loans	247.43%	224.56%
Commercial [Member] | Owner occupied RE [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	$ 2,843	$ 2,347
Provision for loan losses	209	151
Loan charge-offs		(5)
Loan recoveries
Net loan charge-offs		(5)
Balance, end of period	3,052	2,493
Commercial [Member] | Non-owner occupied RE [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	2,778	3,187
Provision for loan losses	369	122
Loan charge-offs	(181)	(75)
Loan recoveries	1	2
Net loan charge-offs	(180)	(73)
Balance, end of period	2,967	3,236
Commercial [Member] | Construction [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	295	338
Provision for loan losses	39	104
Loan charge-offs
Loan recoveries
Net loan charge-offs
Balance, end of period	334	442
Commercial [Member] | Business [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	4,123	3,800
Provision for loan losses	(321)	(158)
Loan charge-offs	(9)	(36)
Loan recoveries	30	33
Net loan charge-offs	21	(3)
Balance, end of period	3,823	3,639
Consumer [Member] | Real Estate [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	2,780	2,070
Provision for loan losses	(40)	248
Loan charge-offs		(187)
Loan recoveries	90
Net loan charge-offs	90	(187)
Balance, end of period	2,830	2,131
Consumer [Member] | Home equity [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	1,475	1,202
Provision for loan losses	143	61
Loan charge-offs
Loan recoveries	1
Net loan charge-offs	1
Balance, end of period	1,619	1,263
Consumer [Member] | Construction [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	252	313
Provision for loan losses	37	38
Loan charge-offs
Loan recoveries
Net loan charge-offs
Balance, end of period	289	351
Consumer [Member] | Other [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	309	372
Provision for loan losses	64	59
Loan charge-offs		(91)
Loan recoveries		3
Net loan charge-offs		(88)
Balance, end of period	$ 373	$ 343

Loans and Allowance for Loan 41

Loans and Allowance for Loan Losses (Details 10) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Allowance for loan losses and recorded investment in loans by impairment methodology
Allowance for loan losses, Individually evaluated	$ 2,749	$ 2,644
Allowance for loan losses, Collectively evaluated	12,538	12,211
Allowance for loan losses, Total	15,287	14,855
Recorded investment in loans, Individually evaluated	11,974	11,157
Recorded investment in loans, Collectively evaluated	1,206,706	1,152,487
Total gross loans, net of deferred fees	1,218,680	1,163,644
Commercial [Member]
Allowance for loan losses and recorded investment in loans by impairment methodology
Allowance for loan losses, Individually evaluated	1,990	1,874
Allowance for loan losses, Collectively evaluated	8,230	8,165
Allowance for loan losses, Total	10,220	10,039
Recorded investment in loans, Individually evaluated	9,708	8,867
Recorded investment in loans, Collectively evaluated	782,520	752,590
Total gross loans, net of deferred fees	792,228	761,457
Consumer [Member]
Allowance for loan losses and recorded investment in loans by impairment methodology
Allowance for loan losses, Individually evaluated	759	770
Allowance for loan losses, Collectively evaluated	4,308	4,046
Allowance for loan losses, Total	5,067	4,816
Recorded investment in loans, Individually evaluated	2,266	2,290
Recorded investment in loans, Collectively evaluated	424,186	399,897
Total gross loans, net of deferred fees	$ 426,452	$ 402,187

Loans and Allowance for Loan 42

Loans and Allowance for Loan Losses (Details Textual) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Loans and Allowance for Loan Losses (Textual)
Net of deferred loan fees and costs	$ 2.1	$ 2
Part of loans of 30 days or More past due as a percentage of total loan portfolio	0.45%	0.55%
Commercial [Member]
Loans and Allowance for Loan Losses (Textual)
Part of loans of 30 days or More past due as a percentage of total loan portfolio	0.32%	0.38%
Consumer [Member]
Loans and Allowance for Loan Losses (Textual)
Part of loans of 30 days or More past due as a percentage of total loan portfolio	0.13%	0.17%

Troubled Debt Restructurings (D

Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Investment
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification
Renewals deemed a concession	1
Reduced or deferred payments
Converted to interest only
Maturity date extensions
Total number of loans	1
Pre-modification outstanding recorded investment | $	$ 149
Post-modification outstanding recorded investment | $	$ 149
Commercial [Member] | Business [Member]
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification
Renewals deemed a concession	1
Reduced or deferred payments
Converted to interest only
Maturity date extensions
Total number of loans	1
Pre-modification outstanding recorded investment | $	$ 149
Post-modification outstanding recorded investment | $	$ 149

Troubled Debt Restructurings 44

Troubled Debt Restructurings (Details Textual)	3 Months Ended
	Mar. 31, 2017USD ($)Investment	Dec. 31, 2016USD ($)Investment
Troubled Debt Restructurings (Textual)
Total number of loans classified under troubled debt restructurings (TDRs) | Investment	18	17
Total sum of loans classified as troubled debt restructurings (TDRs) | $	$ 6,800,000	$ 6,700,000
Number of months previous loan payment defaulted	12 months
Modified investment amount | $	$ 187,000
Number of loans | Investment	1

Derivative Financial Instrume45

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Mortgage loan interest rate lock commitments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative financial instruments, Notional amount	$ 29,583	$ 17,986
Derivative Asset/(Liability), Fair Value	455	256
MBS forward sales commitments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative financial instruments, Notional amount	18,000	14,250
Derivative Asset/(Liability), Fair Value	(140)	(3)
Total derivative financial instruments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative financial instruments, Notional amount	47,583	32,236
Derivative Asset/(Liability), Fair Value	$ 315	$ 253

Fair Value Accounting (Details)

Fair Value Accounting (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities available for sale
US government agencies	$ 6,180	$ 6,159
SBA securities	1,420	1,437
State and political subdivisions	20,572	20,474
Mortgage-backed securities	34,664	36,410
Mortgage loans held for sale	7,452	7,801
Interest rate lock commitments	455	256
Total assets measured at fair value on a recurring basis	70,743	72,537
Liabilities
MBS forward sales commitments	140	3
Total liabilities measured at fair value on a recurring basis	140	3
Level 1 [Member]
Securities available for sale
US government agencies
SBA securities
State and political subdivisions
Mortgage-backed securities
Mortgage loans held for sale
Interest rate lock commitments
Total assets measured at fair value on a recurring basis
Liabilities
MBS forward sales commitments
Total liabilities measured at fair value on a recurring basis
Level 2 [Member]
Securities available for sale
US government agencies	6,180	6,159
SBA securities	1,420	1,437
State and political subdivisions	20,572	20,474
Mortgage-backed securities	34,664	36,410
Mortgage loans held for sale	7,452	7,801
Interest rate lock commitments	455	256
Total assets measured at fair value on a recurring basis	70,743	72,537
Liabilities
MBS forward sales commitments	140	3
Total liabilities measured at fair value on a recurring basis	140	3
Level 3 [Member]
Securities available for sale
US government agencies
SBA securities
State and political subdivisions
Mortgage-backed securities
Mortgage loans held for sale
Interest rate lock commitments
Total assets measured at fair value on a recurring basis
Liabilities
MBS forward sales commitments
Total liabilities measured at fair value on a recurring basis

Fair Value Accounting (Details

Fair Value Accounting (Details 1) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Impaired loans	$ 9,225	$ 8,513
Other real estate owned	669	639
Total assets measured at fair value on a nonrecurring basis	9,894	9,152
Level 1 [Member]
Assets
Impaired loans
Other real estate owned
Total assets measured at fair value on a nonrecurring basis
Level 2 [Member]
Assets
Impaired loans	3,855	4,075
Other real estate owned	556	526
Total assets measured at fair value on a nonrecurring basis	4,411	4,601
Level 3 [Member]
Assets
Impaired loans	5,370	4,438
Other real estate owned	113	113
Total assets measured at fair value on a nonrecurring basis	$ 5,483	$ 4,551

Fair Value Accounting (Detail48

Fair Value Accounting (Details 2)	3 Months Ended
	Mar. 31, 2017
Impaired loans [Member]
Schedule of unobservable inputs used in the fair value measurements
Valuation Technique	Appraised Value/ Discounted Cash Flows
Significant Unobservable Inputs	Discounts to appraisals or cash flows for estimated holding and/or selling costs or age of appraisal
Impaired loans [Member] | Minimum [Member]
Schedule of unobservable inputs used in the fair value measurements
Range of Inputs	0.00%
Impaired loans [Member] | Maximum [Member]
Schedule of unobservable inputs used in the fair value measurements
Range of Inputs	25.00%
Other real estate owned [Member]
Schedule of unobservable inputs used in the fair value measurements
Valuation Technique	Appraised Value/ Comparable Sales
Significant Unobservable Inputs	Discounts to appraisals for estimated holding or selling costs
Other real estate owned [Member] | Minimum [Member]
Schedule of unobservable inputs used in the fair value measurements
Range of Inputs	0.00%
Other real estate owned [Member] | Maximum [Member]
Schedule of unobservable inputs used in the fair value measurements
Range of Inputs	25.00%

Fair Value Accounting (Detail49

Fair Value Accounting (Details 3) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Financial Assets:
Other investments, at cost, Carrying Amount	$ 5,523	$ 5,742
Loans, net, Carrying Amount	1,203,393	1,148,789
Other investments, at cost, Fair Value	5,523	5,742
Loans, net, Fair Value	1,203,710	1,149,527
Financial Liabilities:
Deposits, Carrying Amount	1,211,274	1,091,151
FHLB and other borrowings, Carrying Amount	117,700	115,200
Junior subordinated debentures, Carrying Amount	13,403	13,403
Deposits, Fair Value	1,127,398	1,004,923
FHLB and other borrowings, Fair Value	118,357	115,825
Junior subordinated debentures, Fair Value	12,289	12,026
Level 1 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Financial Assets:
Other investments, at cost, Fair Value
Loans, net, Fair Value
Financial Liabilities:
Deposits, Fair Value
FHLB and other borrowings, Fair Value
Junior subordinated debentures, Fair Value
Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Financial Assets:
Other investments, at cost, Fair Value
Loans, net, Fair Value	3,855	4,075
Financial Liabilities:
Deposits, Fair Value	1,127,398	1,004,923
FHLB and other borrowings, Fair Value	118,357	115,825
Junior subordinated debentures, Fair Value	12,289	12,026
Level 3 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Financial Assets:
Other investments, at cost, Fair Value	5,523	5,742
Loans, net, Fair Value	1,199,855	1,145,452
Financial Liabilities:
Deposits, Fair Value
FHLB and other borrowings, Fair Value
Junior subordinated debentures, Fair Value

Fair Value Accounting (Detail50

Fair Value Accounting (Details Textual)	3 Months Ended
	Mar. 31, 2017
Fair Value Accounting (Textual)
Percentage of loans collateralize by real estate, description	More than 80% .

Earnings Per Common Share (Deta

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net income available to common shareholders	$ 3,112	$ 3,006
Denominator:
Weighted-average common shares outstanding - basic	6,437,231	6,272,847
Common stock equivalents	392,359	390,585
Weighted-average common shares outstanding - diluted	6,829,590	6,663,432
Earnings per common share:
Basic	$ 0.48	$ 0.48
Diluted	$ 0.46	$ 0.45

Earnings Per Common Share (De52

Earnings Per Common Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Common Share (Textual)
Anti-dilutive securities excluded from computation of earnings per share, amount	94,070	97,500

Reportable Segments (Details)

Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Interest income	$ 13,959	$ 12,329
Interest expense	2,352	2,022
Net interest income (loss)	11,607	10,307
Provision for loan losses	500	625
Noninterest income	2,051	2,559
Noninterest expense	8,360	7,517
Net income (loss) before taxes	4,798	4,724
Income tax (provision) benefit	(1,686)	(1,718)
Net income (loss)	3,112	$ 3,006
Total assets	1,467,938		$ 1,340,908
Commercial and Retail Banking [Member]
Segment Reporting Information [Line Items]
Interest income	13,893
Interest expense	2,223
Net interest income (loss)	11,670
Provision for loan losses	500
Noninterest income	994
Noninterest expense	7,446
Net income (loss) before taxes	4,718
Income tax (provision) benefit	(1,653)
Net income (loss)	3,065
Total assets	1,459,695
Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Interest income	66
Interest expense
Net interest income (loss)	66
Provision for loan losses
Noninterest income	1,057
Noninterest expense	848
Net income (loss) before taxes	275
Income tax (provision) benefit	(102)
Net income (loss)	173
Total assets	7,808
Corporate [Member]
Segment Reporting Information [Line Items]
Interest income	2
Interest expense	131
Net interest income (loss)	(129)
Provision for loan losses
Noninterest income
Noninterest expense	66
Net income (loss) before taxes	(195)
Income tax (provision) benefit	69
Net income (loss)	(126)
Total assets	136,996
Eliminations [Member]
Segment Reporting Information [Line Items]
Interest income	(2)
Interest expense	(2)
Net interest income (loss)
Provision for loan losses
Noninterest income
Noninterest expense
Net income (loss) before taxes
Income tax (provision) benefit
Net income (loss)
Total assets	$ (136,561)

Reportable Segments (Details Te

Reportable Segments (Details Textual)	3 Months Ended
	Mar. 31, 2017Segments
Reportable Segments (Textual)
Number of segments	3