Southern First Bancshares (SFST) 10-Q 31 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 25, 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	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		7,314,181

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Cash and cash equivalents:
Cash and due from banks	$ 7,412	$ 11,574
Federal funds sold	52,097	24,039
Interest-bearing deposits with banks	27,303	10,939
Total cash and cash equivalents	86,812	46,552
Investment securities:
Investment securities available for sale	81,379	64,480
Other investments	4,031	5,742
Total investment securities	85,410	70,222
Mortgage loans held for sale	11,480	7,801
Loans	1,299,829	1,163,644
Less allowance for loan losses	(15,444)	(14,855)
Loans, net	1,284,385	1,148,789
Bank owned life insurance	25,837	25,471
Property and equipment, net	31,686	28,362
Deferred income taxes	7,050	6,825
Other assets	6,566	6,886
Total assets	1,539,226	1,340,908
LIABILITIES
Deposits	1,297,911	1,091,151
Federal Home Loan Bank advances and other borrowings	73,200	115,200
Junior subordinated debentures	13,403	13,403
Other liabilities	11,976	11,282
Total liabilities	1,396,490	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, 7,314,181 and 6,463,789 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	73	65
Nonvested restricted stock	(587)	(600)
Additional paid-in capital	99,174	73,371
Accumulated other comprehensive income (loss)	(180)	(504)
Retained earnings	44,256	37,540
Total shareholders' equity	142,736	109,872
Total liabilities and shareholders' equity	$ 1,539,226	$ 1,340,908

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 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	7,314,181	6,463,789
Common stock, shares outstanding	7,314,181	6,463,789

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest income
Loans	$ 14,280	$ 11,999	$ 27,806	$ 23,794
Investment securities	390	458	766	947
Federal funds sold	261	46	318	91
Total interest income	14,931	12,503	28,890	24,832
Interest expense
Deposits	1,739	946	2,989	1,934
Borrowings	840	1,044	1,942	2,078
Total interest expense	2,579	1,990	4,931	4,012
Net interest income	12,352	10,513	23,959	20,820
Provision for loan losses	500	575	1,000	1,200
Net interest income after provision for loan losses	11,852	9,938	22,959	19,620
Noninterest income
Mortgage banking income	1,603	2,235	2,660	3,682
Service fees on deposit accounts	284	244	561	463
Income from bank owned life insurance	183	180	366	366
Gain on sale of investment securities	2	19	2	325
Loss on disposal of fixed assets	(50)		(50)
Other income	540	468	1,075	868
Total noninterest income	2,562	3,146	4,614	5,704
Noninterest expenses
Compensation and benefits	5,524	4,855	10,798	9,405
Occupancy	1,033	892	1,999	1,762
Real estate owned expenses	(3)	359	10	644
Outside service and data processing costs	823	628	1,568	1,226
Insurance	297	217	587	450
Professional fees	382	284	695	538
Marketing	196	199	407	430
Other	510	419	1,059	914
Total noninterest expenses	8,762	7,853	17,123	15,369
Income before income tax expense	5,652	5,231	10,450	9,955
Income tax expense	2,048	1,925	3,734	3,643
Net income available to common shareholders	$ 3,604	$ 3,306	$ 6,716	$ 6,312
Earnings per common share
Basic	$ 0.52	$ 0.52	$ 1	$ 1
Diluted	$ 0.49	$ 0.49	$ 0.95	$ 0.94
Weighted average common shares outstanding
Basic	6,986,948	6,301,853	6,713,608	6,287,350
Diluted	7,366,208	6,702,820	7,099,381	6,683,126

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statements of Comprehensive Income (Loss) [Abstract]
Net income	$ 3,604	$ 3,306	$ 6,716	$ 6,312
Unrealized gain (loss) on securities available for sale:
Unrealized holding gain (loss) arising during the period, pretax	258	682	496	1,774
Tax (expense) benefit	(89)	(232)	(170)	(603)
Reclassification of realized gain	(2)	(19)	(2)	(325)
Tax expense		7		110
Other comprehensive income (loss)	167	438	324	956
Comprehensive income	$ 3,771	$ 3,744	$ 7,040	$ 7,268

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	6,312						6,312
Proceeds from exercise of stock options	369	$ 1			368
Proceeds from exercise of stock options, shares		49,374
Issuance of restricted stock				(391)	391
Issuance of restricted stock, shares		17,000
Amortization of deferred compensation on restricted stock	144			144
Compensation expense related to stock options, net of tax	382				382
Other comprehensive income	956					956
Balance at Jun. 30, 2016	102,403	$ 64		(607)	71,178	952	30,816
Balance, shares at Jun. 30, 2016		6,355,412
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	6,716						6,716
Net issuance of common stock	24,758	$ 8			24,750
Net issuance of common stock shares		805,000
Proceeds from exercise of stock options	416				416
Proceeds from exercise of stock options, shares		42,267
Issuance of restricted stock				(146)	146
Issuance of restricted stock, shares		3,125
Amortization of deferred compensation on restricted stock	159			159
Compensation expense related to stock options, net of tax	491				491
Other comprehensive income	324					324
Balance at Jun. 30, 2017	$ 142,736	$ 73		$ (587)	$ 99,174	$ (180)	$ 44,256
Balance, shares at Jun. 30, 2017		7,314,181

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities
Net income	$ 6,716	$ 6,312
Adjustments to reconcile net income to cash provided by (used for) operating activities:
Provision for loan losses	1,000	1,200
Depreciation and other amortization	669	633
Accretion and amortization of securities discounts and premium, net	267	268
Gain on sale of investment securities available for sale	(2)	(325)
(Gain) loss on sale of real estate owned	(12)	51
Loss on disposal of fixed assets	50
Write-down of real estate owned	7	389
Compensation expense related to stock options and grants	650	526
Gain on sale of loans held for sale	(2,854)	(3,424)
Loans originated and held for sale	(94,159)	(122,495)
Proceeds from sale of loans held for sale	93,334	116,495
Increase in cash surrender value of bank owned life insurance	(366)	(366)
(Increase) decrease in deferred tax asset	(392)	963
Decrease (increase) in other assets, net	109	(432)
Increase in other liabilities	694	1,863
Net cash provided by operating activities	5,711	1,658
Increase (decrease) in cash realized from:
Origination of loans, net	(136,760)	(61,309)
Purchase of property and equipment	(4,043)	(2,484)
Purchase of investment securities:
Available for sale	(20,675)	(16,852)
Other	(1,811)	(169)
Payments and maturities, calls and repayments of investment securities:
Available for sale	4,002	13,127
Other	3,522
Proceeds from sale of investment securities available for sale		10,602
Proceeds from sale of real estate owned	380	320
Net cash used for investing activities	(155,385)	(56,765)
Increase (decrease) in cash realized from:
Increase in deposits, net	206,760	63,391
Decrease in Federal Home Loan Bank advances and other borrowings, net	(42,000)
Proceeds from issuance of common stock	24,758
Proceeds from the exercise of stock options and warrants	416	369
Net cash provided by financing activities	189,934	63,760
Net increase in cash and cash equivalents	40,260	8,653
Cash and cash equivalents at beginning of the period	46,552	62,866
Cash and cash equivalents at end of the period	86,812	71,519
Cash paid for
Interest	4,891	4,012
Income taxes	3,410	2,680
Schedule of non-cash transactions
Real estate acquired in settlement of loans	164	245
Unrealized gain on securities, net of income taxes	$ 324	$ 1,171

Nature of Business and Basis of

Nature of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 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- and six-month periods ended June 30, 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	6 Months Ended
	Jun. 30, 2017
Investment Securities [Abstract]
Investment Securities	NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows: June 30, 2017 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 9,260 12 72 9,200 SBA securities 4,438 - 21 4,417 State and political subdivisions 20,129 321 72 20,378 Mortgage-backed securities 47,822 9 447 47,384 Total investment securities available for sale $ 81,649 342 612 81,379 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 six months of 2017, there were $415,000 of investment securities either sold or called, resulting in a gain on sale of $2,000. During the first six months of 2016, approximately $19.8 million of investment securities were either sold or called, subsequently resulting in a gain on sale of $325,000. Contractual maturities and yields on the Company’s investment securities at June 30, 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. June 30, 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 $ - - 3,015 1.70 % 6,185 2.38 % - - 9,200 2.16 % SBA securities - - - - - - 4,417 2.43 % 4,417 2.43 % State and political subdivisions - - 2,409 1.55 % 12,196 2.36 % 5,773 2.82 % 20,378 2.39 % Mortgage-backed securities - - 914 1.36 % 9,686 1.82 % 36,784 2.12 % 47,384 2.03 % Total $ - - 6,338 1.59 % 28,067 2.18 % 46,974 2.23 % 81,379 2.16 % 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 June 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. June 30, 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 8 $ 6,480 $ 72 - $ - $ - 8 $ 6,480 $ 72 SBA securities 1 3,002 16 1 1,414 5 2 4,416 21 State and political subdivisions 14 6,492 72 - - - 14 6,491 72 Mortgage-backed securities 34 42,865 396 3 4,415 51 37 47,280 447 Total 57 $ 58,839 $ 556 4 $ 5,829 $ 56 61 $ 64,668 $ 612 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 June 30, 2017, the Company had 57 individual investments with a fair market value of $58.8 million that were in an unrealized loss position for less than 12 months and four individual investments with a fair market value of $5.8 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) June 30, 2017 December 31, 2016 Federal Home Loan Bank stock $ 3,499 5,173 Investment in Trust Preferred securities 403 403 Other investments 129 166 Total other investments $ 4,031 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 June 30, 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 June 30, 2017, $20.5 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	6 Months Ended
	Jun. 30, 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 June 30, 2017, mortgage loans held for sale totaled $11.5 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	6 Months Ended
	Jun. 30, 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 $2.2 million as of June 30, 2017 and $2.0 million as of December 31, 2016. June 30, 2017 December 31, 2016 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 310,696 23.9 % $ 285,938 24.6 % Non-owner occupied RE 292,001 22.5 % 239,574 20.6 % Construction 42,447 3.3 % 33,393 2.9 % Business 212,703 16.3 % 202,552 17.4 % Total commercial loans 857,847 66.0 % 761,457 65.5 % Consumer Real estate 233,401 18.0 % 215,588 18.5 % Home equity 147,091 11.3 % 137,105 11.8 % Construction 39,758 3.0 % 31,922 2.7 % Other 21,732 1.7 % 17,572 1.5 % Total consumer loans 441,982 34.0 % 402,187 34.5 % Total gross loans, net of deferred fees 1,299,829 100.0 % 1,163,644 100.0 % Less—allowance for loan losses (15,444 ) (14,855 ) Total loans, net $ 1,284,385 $ 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. June 30, 2017 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 27,023 163,848 119,825 310,696 Non-owner occupied RE 39,353 151,447 101,201 292,001 Construction 12,303 9,210 20,934 42,447 Business 70,721 101,246 40,736 212,703 Total commercial loans 149,400 425,751 282,696 857,847 Consumer Real estate 26,561 54,848 151,992 233,401 Home equity 9,382 30,130 107,579 147,091 Construction 16,602 2,614 20,542 39,758 Other 7,382 9,942 4,408 21,732 Total consumer loans 59,927 97,534 284,521 441,982 Total gross loans, net of deferred fees $ 209,327 523,285 567,217 1,299,829 Loans maturing after one year with: Fixed interest rates $ 822,399 Floating interest rates 268,103 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 our 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. June 30, 2017 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 305,676 285,376 42,447 202,363 835,862 Special mention 2,645 3,038 - 4,546 10,229 Substandard 2,375 3,587 - 5,794 11,756 Doubtful - - - - - $ 310,696 292,001 42,447 212,703 857,847 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. June 30, 2017 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 310,451 291,236 42,447 211,280 855,414 30-59 days past due - - - 266 266 60-89 days past due - - - - - Greater than 90 Days 245 765 - 1,157 2,167 $ 310,696 292,001 42,447 212,703 857,847 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 June 30, 2017 and December 31, 2016, loans 30 days or more past due represented 0.39% and 0.55% of the Company’s total loan portfolio, respectively. Commercial loans 30 days or more past due were 0.19% and 0.38% of the Company’s total loan portfolio as of June 30, 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. June 30, 2017 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 229,812 143,932 39,758 21,624 435,126 Special mention 744 2,235 - 10 2,989 Substandard 2,845 924 - 98 3,867 Doubtful - - - - - Loss - - - - - $ 233,401 147,091 39,758 21,732 441,982 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. June 30, 2017 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 231,602 146,328 39,758 21,718 439,406 30-59 days past due 548 566 - 14 1,128 60-89 days past due 977 - - - 977 Greater than 90 Days 274 197 - - 471 $ 233,401 147,091 39,758 21,732 441,982 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 June 30, 2017 and December 31, 2016, consumer loans 30 days or more past due were 0.20% 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) June 30, 2017 December 31, 2016 Commercial Owner occupied RE $ 245 276 Non-owner occupied RE 2,205 2,711 Construction - - Business 1,324 686 Consumer Real estate 534 550 Home equity 197 256 Construction - - Other 4 13 Nonaccruing troubled debt restructurings 749 990 Total nonaccrual loans, including nonaccruing TDRs 5,258 5,482 Other real estate owned 428 639 Total nonperforming assets $ 5,686 6,121 Nonperforming assets as a percentage of: Total assets 0.37 % 0.46 % Gross loans 0.44 % 0.53 % Total loans over 90 days past due 2,638 1,984 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings $ 6,009 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. June 30, 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 $ 2,240 2,186 833 401 Non-owner occupied RE 7,042 3,495 1,374 361 Construction - - - - Business 4,308 3,581 3,087 1,305 Total commercial 13,590 9,262 5,294 2,067 Consumer Real estate 1,650 1,629 1,629 1,026 Home equity 203 197 197 135 Construction - - - - Other 180 179 179 28 Total consumer 2,033 2,005 2,005 1,189 Total $ 15,623 11,267 7,299 3,256 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 June 30, 2017 June 30, 2016 Average Recognized Average Recognized recorded interest recorded interest (dollars in thousands) investment income investment income Commercial Owner occupied RE $ 2,195 26 1,994 21 Non-owner occupied RE 3,620 48 5,582 35 Construction - - - - Business 3,623 54 5,272 54 Total commercial 9,438 128 12,848 110 Consumer Real estate 1,635 16 1,153 12 Home equity 197 1 257 1 Construction - - - - Other 180 1 294 5 Total consumer 2,012 18 1,704 18 Total $ 11,450 146 14,552 128 Six months ended Six months ended Year ended June 30, 2017 June 30, 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 $ 2,204 53 1,999 43 2,263 112 Non-owner occupied RE 3,721 76 5,642 86 4,106 200 Construction - - - - - - Business 3,635 98 5,315 134 2,873 135 Total commercial 9,560 227 12,956 263 9,242 447 Consumer Real estate 1,642 33 1,155 21 1,854 81 Home equity 198 2 257 1 257 2 Construction - - - - - - Other 181 2 295 6 203 6 Total consumer 2,021 37 1,707 28 2,314 89 Total $ 11,581 264 14,663 291 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 June 30, 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 $ 3,052 2,967 334 3,823 2,830 1,619 289 373 15,287 Provision for loan losses (88 ) 255 16 139 240 (23 ) 39 (78 ) 500 Loan charge-offs - (253 ) - (120 ) - - - - (373 ) Loan recoveries - 12 - 15 (9 ) 12 - - 30 Net loan charge-offs - (241 ) - (105 ) (9 ) 12 - - (343 ) Balance, end of period $ 2,964 2,981 350 3,857 3,061 1,608 328 295 15,444 Net charge-offs to average loans (annualized) 0.11 % Allowance for loan losses to gross loans 1.19 % Allowance for loan losses to nonperforming loans 293.75 % Three months ended June 30, 2016 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home Construction Other Total Balance, beginning of period $ 2,493 3,236 442 3,639 2,131 1,263 351 343 13,898 Provision for loan losses 304 (250 ) (49 ) 488 170 40 (139 ) 11 575 Loan charge-offs - - (42 ) (311 ) - (7 ) - (24 ) (384 ) Loan recoveries - 25 - 203 - - - - 228 Net loan charge-offs - 25 (42 ) (108 ) - (7 ) - (24 ) (156 ) Balance, end of period $ 2,797 3,011 351 4,019 2,301 1,296 212 330 14,317 Net charge-offs to average loans (annualized) 0.06 % Allowance for loan losses to gross loans 1.34 % Allowance for loan losses to nonperforming loans 250.63 % Six months ended June 30, 2017 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home 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 121 623 55 (182 ) 200 121 76 (14 ) 1,000 Loan charge-offs - (433 ) - (130 ) - - - - (563 ) Loan recoveries - 13 - 46 81 12 - - 152 Net loan charge-offs - (420 ) - (84 ) 81 12 - - (411 ) Balance, end of period $ 2,964 2,981 350 3,857 3,061 1,608 328 295 15,444 Net charge-offs to average loans (annualized) 0.03 % Six months ended June 30, 2016 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home 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 455 (128 ) 55 330 418 101 (101 ) 70 1,200 Loan charge-offs (5 ) (75 ) (42 ) (348 ) (187 ) (7 ) - (115 ) (779 ) Loan recoveries - 27 - 237 - - - 3 267 Net loan charge-offs (5 ) (48 ) (42 ) (111 ) (187 ) (7 ) - (112 ) (512 ) Balance, end of period $ 2,797 3,011 351 4,019 2,301 1,296 212 330 14,317 Net charge-offs to average loans (annualized) 0.10 % The following table disaggregates the allowance for loan losses and recorded investment in loans by impairment methodology. June 30, 2017 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 2,067 1,189 3,256 9,262 2,005 11,267 Collectively evaluated 8,085 4,103 12,188 848,585 439,977 1,288,562 Total $ 10,152 5,292 15,444 857,847 441,982 1,299,829 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	6 Months Ended
	Jun. 30, 2017
Troubled Debt Restructurings [Abstract]
Troubled Debt Restructurings	NOTE 5 – Troubled Debt Restructurings At June 30, 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 four commercial loans previously classified as TDRs to accrual status. During the three months ended June 30, 2017, the Company reduced or deferred payments on one commercial business loan whose modification was considered a TDR. The recorded investment in the loan before modification was $229,000 and the loan’s recorded investment following modification was $238,000. 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 six months ended June 30, 2017 and the three and six months ended 2016, respectively. For the six months ended June 30, 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 - - 2 $ 378 $ 387 Total loans 1 1 - - 2 $ 378 $ 387 For the three and six months ended June 30, 2016 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 $ 2,381 $ 2,381 Consumer Other 2 - - - 2 110 114 Total loans 3 - - - 3 $ 2,491 $ 2,495 As of June 30, 2017 and 2016, there were no loans modified as TDRs for which there was a payment default (60 days past due) within 12 months of the restructuring date.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 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 June 30, 2017 and December 31, 2016. June 30, 2017 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 28,457 Other assets $ 357 MBS forward sales commitments 20,250 Other assets 72 Total derivative financial instruments $ 48,707 $ 429 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	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2017 and December 31, 2016. June 30, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 9,200 - 9,200 SBA securities - 4,417 - 4,417 State and political subdivisions - 20,378 - 20,378 Mortgage-backed securities - 47,384 - 47,384 Mortgage loans held for sale - 11,480 - 11,480 Interest rate lock commitments - 357 - 357 MBS forward sales commitments - 72 - 72 Total assets measured at fair value on a recurring basis $ - 93,288 - 93,288 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 June 30, 2017. 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 June 30, 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 June 30, 2017 and December 31, 2016. As of June 30, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 2,614 5,397 8,011 Other real estate owned - 315 113 428 Total assets measured at fair value on a nonrecurring basis $ - 2,929 5,510 8,439 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 June 30, 2017 and December 31, 2016. For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of June 30, 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/ Discounts to appraisals or cash 0-25% Other real estate owned Appraised Value/ Discounts to appraisals for 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 June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 4,031 4,031 - - 4,031 Loans, net 1,284,385 1,287,454 - 2,614 1,284,840 Financial Liabilities: Deposits 1,297,911 1,201,720 - 1,201,720 - FHLB and other borrowings 73,200 73,606 - 73,606 - Junior subordinated debentures 13,403 12,528 - 12,528 - 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2017 and 2016. Dilutive common shares arise from the potentially dilutive effect of the Company’s stock options that were outstanding at June 30, 2017. The assumed conversion of stock options can create a difference between basic and dilutive net income per common share. At June 30, 2017 and 2016, there were 120,681 and 97,500 options, respectively, that were not considered in computing diluted earnings per common share because they were anti-dilutive. Three months ended Six months ended June 30, June 30, (dollars in thousands, except share data) 2017 2016 2017 2016 Numerator: Net income available to common shareholders $ 3,604 3,306 6,716 6,312 Denominator: Weighted-average common shares outstanding – basic 6,986,948 6,301,853 6,713,608 6,287,350 Common stock equivalents 379,260 400,967 385,773 395,776 Weighted-average common shares outstanding – diluted 7,366,208 6,702,820 7,099,381 6,683,126 Earnings per common share: Basic $ 0.52 0.52 1.00 1.00 Diluted $ 0.49 0.49 0.95 0.94

Reportable Segments

Reportable Segments	6 Months Ended
	Jun. 30, 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 June 30, Three months ended June 30, 2017 2016 Commercial Commercial and Retail Mortgage Elimin- Consol- and Retail Mortgage Elimin- Consol- (dollars in thousands) Banking Banking Corporate ations idated Banking Banking Corporate ation idated Interest income $ 14,851 80 6 (6 ) 14,931 12,410 93 - - 12,503 Interest expense 2,442 - 143 (6 ) 2,579 1,894 - 96 - 1,990 Net interest income (loss) 12,409 80 (137 ) - 12,352 10,516 93 (96 ) - 10,513 Provision for loan losses 500 - - - 500 575 - - - 575 Noninterest income 959 1,603 - - 2,562 911 2,235 - - 3,146 Noninterest expense 7,667 1,035 60 - 8,762 6,698 1,313 (158 ) - 7,853 Net income (loss) before taxes 5,201 648 (197 ) - 5,652 4,154 1,015 62 - 5,231 Income tax (provision) benefit (1,877 ) (240 ) 69 - (2,048 ) (1,525 ) (387 ) (13 ) - (1,925 ) Net income (loss) $ 3,324 408 (128 ) - 3,604 2,629 628 49 - 3,306 Total assets $ 1,527,837 10,958 156,145 (155,714) 1,539,226 1,272,894 15,011 115,810 (113,005 ) 1,290,710 Six months ended June 30, Six months ended June 30, 2017 2016 Commercial Commercial and Retail Mortgage Elimin- Consol- and Retail Mortgage Elimin- Consol- (dollars in thousands) Banking Banking Corporate ations idated Banking Banking Corporate ations idated Interest income $ 28,744 146 8 (8 ) 28,890 24,677 155 1 (1 ) 24,832 Interest expense 4,665 - 274 (8 ) 4,931 3,817 - 196 (1 ) 4,012 Net interest income (loss) 24,079 146 (266 ) - 23,959 20,860 155 (195 ) - 20,820 Provision for loan losses 1,000 - - - 1,000 1,200 - - - 1,200 Noninterest income 1,954 2,660 - - 4,614 2,022 3,682 - - 5,704 Noninterest expense 15,114 1,883 126 - 17,123 13,032 2,214 123 - 15,369 Net income before taxes 9,919 923 (392 ) - 10,450 8,650 1,623 (318 ) - 9,955 Income tax (provision) benefit (3,530 ) (342 ) 138 - (3,734 ) (3,090 ) (611 ) 58 - (3,643 ) Net income (loss) $ 6,389 581 (254 ) - 6,716 5,560 1,012 (260 ) - 6,312 Total assets $ 1,527,837 10,958 156,145 (155,714) 1,539,226 1,272,894 15,011 115,810 (113,005 ) 1,290,710 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)	6 Months Ended
	Jun. 30, 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- and six-month periods ended June 30, 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)	6 Months Ended
	Jun. 30, 2017
Investment Securities [Abstract]
Summary of amortized costs and fair value of investment securities	June 30, 2017 Amortized Gross Unrealized Fair (dollars in thousands) Cost Gains Losses Value Available for sale US government agencies $ 9,260 12 72 9,200 SBA securities 4,438 - 21 4,417 State and political subdivisions 20,129 321 72 20,378 Mortgage-backed securities 47,822 9 447 47,384 Total investment securities available for sale $ 81,649 342 612 81,379 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	June 30, 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 $ - - 3,015 1.70 % 6,185 2.38 % - - 9,200 2.16 % SBA securities - - - - - - 4,417 2.43 % 4,417 2.43 % State and political subdivisions - - 2,409 1.55 % 12,196 2.36 % 5,773 2.82 % 20,378 2.39 % Mortgage-backed securities - - 914 1.36 % 9,686 1.82 % 36,784 2.12 % 47,384 2.03 % Total $ - - 6,338 1.59 % 28,067 2.18 % 46,974 2.23 % 81,379 2.16 % 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	June 30, 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 8 $ 6,480 $ 72 - $ - $ - 8 $ 6,480 $ 72 SBA securities 1 3,002 16 1 1,414 5 2 4,416 21 State and political subdivisions 14 6,492 72 - - - 14 6,491 72 Mortgage-backed securities 34 42,865 396 3 4,415 51 37 47,280 447 Total 57 $ 58,839 $ 556 4 $ 5,829 $ 56 61 $ 64,668 $ 612 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) June 30, 2017 December 31, 2016 Federal Home Loan Bank stock $ 3,499 5,173 Investment in Trust Preferred securities 403 403 Other investments 129 166 Total other investments $ 4,031 5,742

Loans and Allowance for Loan 19

Loans and Allowance for Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Summary of composition of loan portfolio	June 30, 2017 December 31, 2016 (dollars in thousands) Amount % of Total Amount % of Total Commercial Owner occupied RE $ 310,696 23.9 % $ 285,938 24.6 % Non-owner occupied RE 292,001 22.5 % 239,574 20.6 % Construction 42,447 3.3 % 33,393 2.9 % Business 212,703 16.3 % 202,552 17.4 % Total commercial loans 857,847 66.0 % 761,457 65.5 % Consumer Real estate 233,401 18.0 % 215,588 18.5 % Home equity 147,091 11.3 % 137,105 11.8 % Construction 39,758 3.0 % 31,922 2.7 % Other 21,732 1.7 % 17,572 1.5 % Total consumer loans 441,982 34.0 % 402,187 34.5 % Total gross loans, net of deferred fees 1,299,829 100.0 % 1,163,644 100.0 % Less—allowance for loan losses (15,444 ) (14,855 ) Total loans, net $ 1,284,385 $ 1,148,789
Summary of loan maturity distribution by type and related interest rate	June 30, 2017 After one One year but within After five (dollars in thousands) or less five years years Total Commercial Owner occupied RE $ 27,023 163,848 119,825 310,696 Non-owner occupied RE 39,353 151,447 101,201 292,001 Construction 12,303 9,210 20,934 42,447 Business 70,721 101,246 40,736 212,703 Total commercial loans 149,400 425,751 282,696 857,847 Consumer Real estate 26,561 54,848 151,992 233,401 Home equity 9,382 30,130 107,579 147,091 Construction 16,602 2,614 20,542 39,758 Other 7,382 9,942 4,408 21,732 Total consumer loans 59,927 97,534 284,521 441,982 Total gross loans, net of deferred fees $ 209,327 523,285 567,217 1,299,829 Loans maturing after one year with: Fixed interest rates $ 822,399 Floating interest rates 268,103 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) June 30, 2017 December 31, 2016 Commercial Owner occupied RE $ 245 276 Non-owner occupied RE 2,205 2,711 Construction - - Business 1,324 686 Consumer Real estate 534 550 Home equity 197 256 Construction - - Other 4 13 Nonaccruing troubled debt restructurings 749 990 Total nonaccrual loans, including nonaccruing TDRs 5,258 5,482 Other real estate owned 428 639 Total nonperforming assets $ 5,686 6,121 Nonperforming assets as a percentage of: Total assets 0.37 % 0.46 % Gross loans 0.44 % 0.53 % Total loans over 90 days past due 2,638 1,984 Loans over 90 days past due and still accruing - - Accruing troubled debt restructurings $ 6,009 5,675
Summary of key information for impaired loans	June 30, 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 $ 2,240 2,186 833 401 Non-owner occupied RE 7,042 3,495 1,374 361 Construction - - - - Business 4,308 3,581 3,087 1,305 Total commercial 13,590 9,262 5,294 2,067 Consumer Real estate 1,650 1,629 1,629 1,026 Home equity 203 197 197 135 Construction - - - - Other 180 179 179 28 Total consumer 2,033 2,005 2,005 1,189 Total $ 15,623 11,267 7,299 3,256 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 June 30, 2017 June 30, 2016 Average Recognized Average Recognized recorded interest recorded interest (dollars in thousands) investment income investment income Commercial Owner occupied RE $ 2,195 26 1,994 21 Non-owner occupied RE 3,620 48 5,582 35 Construction - - - - Business 3,623 54 5,272 54 Total commercial 9,438 128 12,848 110 Consumer Real estate 1,635 16 1,153 12 Home equity 197 1 257 1 Construction - - - - Other 180 1 294 5 Total consumer 2,012 18 1,704 18 Total $ 11,450 146 14,552 128 Six months ended Six months ended Year ended June 30, 2017 June 30, 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 $ 2,204 53 1,999 43 2,263 112 Non-owner occupied RE 3,721 76 5,642 86 4,106 200 Construction - - - - - - Business 3,635 98 5,315 134 2,873 135 Total commercial 9,560 227 12,956 263 9,242 447 Consumer Real estate 1,642 33 1,155 21 1,854 81 Home equity 198 2 257 1 257 2 Construction - - - - - - Other 181 2 295 6 203 6 Total consumer 2,021 37 1,707 28 2,314 89 Total $ 11,581 264 14,663 291 11,556 536
Summary of allowance for loan losses by commercial and consumer portfolio segments	Three months ended June 30, 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 $ 3,052 2,967 334 3,823 2,830 1,619 289 373 15,287 Provision for loan losses (88 ) 255 16 139 240 (23 ) 39 (78 ) 500 Loan charge-offs - (253 ) - (120 ) - - - - (373 ) Loan recoveries - 12 - 15 (9 ) 12 - - 30 Net loan charge-offs - (241 ) - (105 ) (9 ) 12 - - (343 ) Balance, end of period $ 2,964 2,981 350 3,857 3,061 1,608 328 295 15,444 Net charge-offs to average loans (annualized) 0.11 % Allowance for loan losses to gross loans 1.19 % Allowance for loan losses to nonperforming loans 293.75 % Three months ended June 30, 2016 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home Construction Other Total Balance, beginning of period $ 2,493 3,236 442 3,639 2,131 1,263 351 343 13,898 Provision for loan losses 304 (250 ) (49 ) 488 170 40 (139 ) 11 575 Loan charge-offs - - (42 ) (311 ) - (7 ) - (24 ) (384 ) Loan recoveries - 25 - 203 - - - - 228 Net loan charge-offs - 25 (42 ) (108 ) - (7 ) - (24 ) (156 ) Balance, end of period $ 2,797 3,011 351 4,019 2,301 1,296 212 330 14,317 Net charge-offs to average loans (annualized) 0.06 % Allowance for loan losses to gross loans 1.34 % Allowance for loan losses to nonperforming loans 250.63 % Six months ended June 30, 2017 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home 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 121 623 55 (182 ) 200 121 76 (14 ) 1,000 Loan charge-offs - (433 ) - (130 ) - - - - (563 ) Loan recoveries - 13 - 46 81 12 - - 152 Net loan charge-offs - (420 ) - (84 ) 81 12 - - (411 ) Balance, end of period $ 2,964 2,981 350 3,857 3,061 1,608 328 295 15,444 Net charge-offs to average loans (annualized) 0.03 % Six months ended June 30, 2016 Commercial Consumer (dollars in thousands) Owner Non-owner Construction Business Real Home 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 455 (128 ) 55 330 418 101 (101 ) 70 1,200 Loan charge-offs (5 ) (75 ) (42 ) (348 ) (187 ) (7 ) - (115 ) (779 ) Loan recoveries - 27 - 237 - - - 3 267 Net loan charge-offs (5 ) (48 ) (42 ) (111 ) (187 ) (7 ) - (112 ) (512 ) Balance, end of period $ 2,797 3,011 351 4,019 2,301 1,296 212 330 14,317 Net charge-offs to average loans (annualized) 0.10 %
Summary of allowance for loan losses and recorded investment in loans by impairment methodology	June 30, 2017 Allowance for loan losses Recorded investment in loans (dollars in thousands) Commercial Consumer Total Commercial Consumer Total Individually evaluated $ 2,067 1,189 3,256 9,262 2,005 11,267 Collectively evaluated 8,085 4,103 12,188 848,585 439,977 1,288,562 Total $ 10,152 5,292 15,444 857,847 441,982 1,299,829 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	June 30, 2017 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Pass $ 305,676 285,376 42,447 202,363 835,862 Special mention 2,645 3,038 - 4,546 10,229 Substandard 2,375 3,587 - 5,794 11,756 Doubtful - - - - - $ 310,696 292,001 42,447 212,703 857,847 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	June 30, 2017 Owner Non-owner (dollars in thousands) occupied RE occupied RE Construction Business Total Current $ 310,451 291,236 42,447 211,280 855,414 30-59 days past due - - - 266 266 60-89 days past due - - - - - Greater than 90 Days 245 765 - 1,157 2,167 $ 310,696 292,001 42,447 212,703 857,847 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	June 30, 2017 (dollars in thousands) Real estate Home equity Construction Other Total Pass $ 229,812 143,932 39,758 21,624 435,126 Special mention 744 2,235 - 10 2,989 Substandard 2,845 924 - 98 3,867 Doubtful - - - - - Loss - - - - - $ 233,401 147,091 39,758 21,732 441,982 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	June 30, 2017 (dollars in thousands) Real estate Home equity Construction Other Total Current $ 231,602 146,328 39,758 21,718 439,406 30-59 days past due 548 566 - 14 1,128 60-89 days past due 977 - - - 977 Greater than 90 Days 274 197 - - 471 $ 233,401 147,091 39,758 21,732 441,982 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)	6 Months Ended
	Jun. 30, 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 six months ended June 30, 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 - - 2 $ 378 $ 387 Total loans 1 1 - - 2 $ 378 $ 387 For the three and six months ended June 30, 2016 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 $ 2,381 $ 2,381 Consumer Other 2 - - - 2 110 114 Total loans 3 - - - 3 $ 2,491 $ 2,495

Derivative Financial Instrume21

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Financial Instruments [Abstract]
Schedule of outstanding financial derivative instruments	June 30, 2017 Fair Value (dollars in thousands) Notional Balance Sheet Location Asset/(Liability) Mortgage loan interest rate lock commitments $ 28,457 Other assets $ 357 MBS forward sales commitments 20,250 Other assets 72 Total derivative financial instruments $ 48,707 $ 429 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)	6 Months Ended
	Jun. 30, 2017
Fair Value Accounting [Abstract]
Schedule of assets and liabilities measured at fair value on recurring basis	June 30, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Securities available for sale US government agencies $ - 9,200 - 9,200 SBA securities - 4,417 - 4,417 State and political subdivisions - 20,378 - 20,378 Mortgage-backed securities - 47,384 - 47,384 Mortgage loans held for sale - 11,480 - 11,480 Interest rate lock commitments - 357 - 357 MBS forward sales commitments - 72 - 72 Total assets measured at fair value on a recurring basis $ - 93,288 - 93,288 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 June 30, 2017 (dollars in thousands) Level 1 Level 2 Level 3 Total Assets Impaired loans $ - 2,614 5,397 8,011 Other real estate owned - 315 113 428 Total assets measured at fair value on a nonrecurring basis $ - 2,929 5,510 8,439 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/ Discounts to appraisals or cash 0-25% Other real estate owned Appraised Value/ Discounts to appraisals for 0-25%
Estimated fair values of the company's financial instruments	June 30, 2017 Carrying Fair (dollars in thousands) Amount Value Level 1 Level 2 Level 3 Financial Assets: Other investments, at cost $ 4,031 4,031 - - 4,031 Loans, net 1,284,385 1,287,454 - 2,614 1,284,840 Financial Liabilities: Deposits 1,297,911 1,201,720 - 1,201,720 - FHLB and other borrowings 73,200 73,606 - 73,606 - Junior subordinated debentures 13,403 12,528 - 12,528 - 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)	6 Months Ended
	Jun. 30, 2017
Earnings Per Common Share [Abstract]
Schedule of earnings per share reconciliation	Three months ended Six months ended June 30, June 30, (dollars in thousands, except share data) 2017 2016 2017 2016 Numerator: Net income available to common shareholders $ 3,604 3,306 6,716 6,312 Denominator: Weighted-average common shares outstanding – basic 6,986,948 6,301,853 6,713,608 6,287,350 Common stock equivalents 379,260 400,967 385,773 395,776 Weighted-average common shares outstanding – diluted 7,366,208 6,702,820 7,099,381 6,683,126 Earnings per common share: Basic $ 0.52 0.52 1.00 1.00 Diluted $ 0.49 0.49 0.95 0.94

Reportable Segments (Tables)

Reportable Segments (Tables)	6 Months Ended
	Jun. 30, 2017
Reportable Segments [Abstract]
Schedule of financial information for each reportable segment	Three months ended June 30, Three months ended June 30, 2017 2016 Commercial Commercial and Retail Mortgage Elimin- Consol- and Retail Mortgage Elimin- Consol- (dollars in thousands) Banking Banking Corporate ations idated Banking Banking Corporate ation idated Interest income $ 14,851 80 6 (6 ) 14,931 12,410 93 - - 12,503 Interest expense 2,442 - 143 (6 ) 2,579 1,894 - 96 - 1,990 Net interest income (loss) 12,409 80 (137 ) - 12,352 10,516 93 (96 ) - 10,513 Provision for loan losses 500 - - - 500 575 - - - 575 Noninterest income 959 1,603 - - 2,562 911 2,235 - - 3,146 Noninterest expense 7,667 1,035 60 - 8,762 6,698 1,313 (158 ) - 7,853 Net income (loss) before taxes 5,201 648 (197 ) - 5,652 4,154 1,015 62 - 5,231 Income tax (provision) benefit (1,877 ) (240 ) 69 - (2,048 ) (1,525 ) (387 ) (13 ) - (1,925 ) Net income (loss) $ 3,324 408 (128 ) - 3,604 2,629 628 49 - 3,306 Total assets $ 1,527,837 10,958 156,145 (155,714) 1,539,226 1,272,894 15,011 115,810 (113,005 ) 1,290,710 Six months ended June 30, Six months ended June 30, 2017 2016 Commercial Commercial and Retail Mortgage Elimin- Consol- and Retail Mortgage Elimin- Consol- (dollars in thousands) Banking Banking Corporate ations idated Banking Banking Corporate ations idated Interest income $ 28,744 146 8 (8 ) 28,890 24,677 155 1 (1 ) 24,832 Interest expense 4,665 - 274 (8 ) 4,931 3,817 - 196 (1 ) 4,012 Net interest income (loss) 24,079 146 (266 ) - 23,959 20,860 155 (195 ) - 20,820 Provision for loan losses 1,000 - - - 1,000 1,200 - - - 1,200 Noninterest income 1,954 2,660 - - 4,614 2,022 3,682 - - 5,704 Noninterest expense 15,114 1,883 126 - 17,123 13,032 2,214 123 - 15,369 Net income before taxes 9,919 923 (392 ) - 10,450 8,650 1,623 (318 ) - 9,955 Income tax (provision) benefit (3,530 ) (342 ) 138 - (3,734 ) (3,090 ) (611 ) 58 - (3,643 ) Net income (loss) $ 6,389 581 (254 ) - 6,716 5,560 1,012 (260 ) - 6,312 Total assets $ 1,527,837 10,958 156,145 (155,714) 1,539,226 1,272,894 15,011 115,810 (113,005 ) 1,290,710

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Available for sale
Total investment securities available for sale, Amortized Cost	$ 81,649	$ 65,244
Total investment securities available for sale, Gross Unrealized Gains	342	163
Total investment securities available for sale, Gross Unrealized Losses	612	927
Available-for-sale securities, investment securities, Fair Value	81,379	64,480
US government agencies [Member]
Available for sale
Total investment securities available for sale, Amortized Cost	9,260	6,271
Total investment securities available for sale, Gross Unrealized Gains	12	1
Total investment securities available for sale, Gross Unrealized Losses	72	113
Available-for-sale securities, investment securities, Fair Value	9,200	6,159
SBA securities [Member]
Available for sale
Total investment securities available for sale, Amortized Cost	4,438	1,453
Total investment securities available for sale, Gross Unrealized Gains
Total investment securities available for sale, Gross Unrealized Losses	21	16
Available-for-sale securities, investment securities, Fair Value	4,417	1,437
State and political subdivisions [Member]
Available for sale
Total investment securities available for sale, Amortized Cost	20,129	20,625
Total investment securities available for sale, Gross Unrealized Gains	321	141
Total investment securities available for sale, Gross Unrealized Losses	72	292
Available-for-sale securities, investment securities, Fair Value	20,378	20,474
Mortgage-backed securities [Member]
Available for sale
Total investment securities available for sale, Amortized Cost	47,822	36,895
Total investment securities available for sale, Gross Unrealized Gains	9	21
Total investment securities available for sale, Gross Unrealized Losses	447	506
Available-for-sale securities, investment securities, Fair Value	$ 47,384	$ 36,410

Investment Securities (Details

Investment Securities (Details 1) - USD ($) $ in Thousands	Jun. 30, 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	$ 6,338	$ 3,268
Available-for-sale Securities, Contractual Maturities, One to five years, Yield	1.59%	1.55%
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value	$ 28,067	$ 25,976
Available-for-sale Securities, Contractual Maturities, Five to ten years, Yield	2.18%	2.10%
Available-for-sale Securities, Contractual Maturities, Over ten years, Value	$ 46,974	$ 35,236
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield	2.23%	1.85%
Investment securities available for sale, Value	$ 81,379	$ 64,480
Available-for-sale Securities, Contractual Securities, Yield Total	2.16%	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	$ 3,015	$ 997
Available-for-sale Securities, Contractual Maturities, One to five years, Yield	1.70%	1.15%
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value	$ 6,185	$ 5,162
Available-for-sale Securities, Contractual Maturities, Five to ten years, Yield	2.38%	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	$ 9,200	$ 6,159
Available-for-sale Securities, Contractual Securities, Yield Total	2.16%	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	$ 4,417	$ 1,437
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield	2.43%	1.32%
Investment securities available for sale, Value	$ 4,417	$ 1,437
Available-for-sale Securities, Contractual Securities, Yield Total	2.43%	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	$ 2,409	$ 2,271
Available-for-sale Securities, Contractual Maturities, One to five years, Yield	1.55%	1.73%
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value	$ 12,196	$ 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	$ 5,773	$ 5,916
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield	2.82%	2.77%
Investment securities available for sale, Value	$ 20,378	$ 20,474
Available-for-sale Securities, Contractual Securities, Yield Total	2.39%	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	$ 914
Available-for-sale Securities, Contractual Maturities, One to five years, Yield	1.36%
Available-for-sale Securities, Contractual Maturities, Five to ten years, Value	$ 9,686	$ 8,527
Available-for-sale Securities, Contractual Maturities, Five to ten years, Yield	1.82%	1.64%
Available-for-sale Securities, Contractual Maturities, Over ten years, Value	$ 36,784	$ 27,883
Available-for-sale Securities, Contractual Maturities, Over ten years, Yield	2.12%	1.68%
Investment securities available for sale, Value	$ 47,384	$ 36,410
Available-for-sale Securities, Contractual Securities, Yield Total	2.03%	1.67%

Investment Securities (Detail27

Investment Securities (Details 2) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 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	57	63
Available-for-sale Securities, Less than 12 months, Fair Value	$ 58,839	$ 47,809
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 556	$ 897
Number of investments, 12 months or longer | Investment	4	2
Available-for-sale Securities, 12 months or longer, Fair Value	$ 5,829	$ 3,991
Available-for-sale Securities, 12 Months or longer, Unrealized losses	$ 56	$ 30
Number of investments, Total | Investment	61	65
Available-for-sale Securities, Fair Value, Total	$ 64,668	$ 51,800
Available-for-sale Securities, Unrealized losses, Total	$ 612	$ 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	8	5
Available-for-sale Securities, Less than 12 months, Fair Value	$ 6,480	$ 5,144
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 72	$ 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	8	5
Available-for-sale Securities, Fair Value, Total	$ 6,480	$ 5,144
Available-for-sale Securities, Unrealized losses, Total	$ 72	$ 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	1
Available-for-sale Securities, Less than 12 months, Fair Value	$ 3,002	$ 1,437
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 16	$ 16
Number of investments, 12 months or longer | Investment	1
Available-for-sale Securities, 12 months or longer, Fair Value	$ 1,414
Available-for-sale Securities, 12 Months or longer, Unrealized losses	$ 5
Number of investments, Total | Investment	2	1
Available-for-sale Securities, Fair Value, Total	$ 4,416	$ 1,437
Available-for-sale Securities, Unrealized losses, Total	$ 21	$ 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	14	32
Available-for-sale Securities, Less than 12 months, Fair Value	$ 6,492	$ 13,936
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 72	$ 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	14	32
Available-for-sale Securities, Fair Value, Total	$ 6,491	$ 13,936
Available-for-sale Securities, Unrealized losses, Total	$ 72	$ 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	34	25
Available-for-sale Securities, Less than 12 months, Fair Value	$ 42,865	$ 27,292
Available-for-sale Securities, Less than 12 months, Unrealized losses	$ 396	$ 476
Number of investments, 12 months or longer | Investment	3	2
Available-for-sale Securities, 12 months or longer, Fair Value	$ 4,415	$ 3,991
Available-for-sale Securities, 12 Months or longer, Unrealized losses	$ 51	$ 30
Number of investments, Total | Investment	37	27
Available-for-sale Securities, Fair Value, Total	$ 47,280	$ 31,283
Available-for-sale Securities, Unrealized losses, Total	$ 447	$ 506

Investment Securities (Detail28

Investment Securities (Details 3) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Other investments
Federal Home Loan Bank stock	$ 3,499	$ 5,173
Investment in Trust Preferred securities	403	403
Other investments	129	166
Total other investments	$ 4,031	$ 5,742

Investment Securities (Detail29

Investment Securities (Details Textual) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)Investment	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)Investment	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)Investment
Investment Securities (Textual)
Sale of investment securities			$ 415	$ 19,800
Gain on sale of investment securities	$ 2	$ 19	2	$ 325
Fair market value, less than 12 months	58,800		58,800
Fair market value, 12 months or longer	5,800		5,800
Securities pledged as collateral for repurchase agreements from brokers					$ 21,000
Securities pledged to secure client deposit	$ 20,500		$ 20,500		$ 21,100
Number of investments, less than 12 months | Investment	57		57		63
Number of investments, 12 months or longer | Investment	4		4		2

Mortgage Loans Held for Sale (D

Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Mortgage Loans Held for Sale (Textual)
Mortgage loans held for sale, fair value	$ 11.5	$ 7.8

Loans and Allowance for Loan 31

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 1,299,829	$ 1,163,644
Less allowance for loan losses	(15,444)	(14,855)
Total loans, net	$ 1,284,385	$ 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	$ 857,847	$ 761,457
Total gross loans, net of deferred fees, (Percentage)	66.00%	65.50%
Commercial [Member] | Owner occupied RE [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 310,696	$ 285,938
Total gross loans, net of deferred fees, (Percentage)	23.90%	24.60%
Commercial [Member] | Non-owner occupied RE [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 292,001	$ 239,574
Total gross loans, net of deferred fees, (Percentage)	22.50%	20.60%
Commercial [Member] | Construction [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 42,447	$ 33,393
Total gross loans, net of deferred fees, (Percentage)	3.30%	2.90%
Commercial [Member] | Business [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 212,703	$ 202,552
Total gross loans, net of deferred fees, (Percentage)	16.30%	17.40%
Consumer [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 441,982	$ 402,187
Total gross loans, net of deferred fees, (Percentage)	34.00%	34.50%
Consumer [Member] | Real estate [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 233,401	$ 215,588
Total gross loans, net of deferred fees, (Percentage)	18.00%	18.50%
Consumer [Member] | Home equity [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 147,091	$ 137,105
Total gross loans, net of deferred fees, (Percentage)	11.30%	11.80%
Consumer [Member] | Construction [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 39,758	$ 31,922
Total gross loans, net of deferred fees, (Percentage)	3.00%	2.70%
Consumer [Member] | Other [Member]
Composition of loan portfolio
Total gross loans, net of deferred fees	$ 21,732	$ 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	Jun. 30, 2017	Dec. 31, 2016
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	$ 209,327	$ 185,625
Total gross loans, net of deferred fees, After one but within five years	523,285	485,298
Total gross loans, net of deferred fees, After five years	567,217	492,721
Total gross loans, net of deferred fees	1,299,829	1,163,644
Loans maturing after one year with: fixed interest rates	822,399	733,892
Loans maturing after one year with: floating interest rates	268,103	244,127
Commercial [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	149,400	132,989
Total gross loans, net of deferred fees, After one but within five years	425,751	396,493
Total gross loans, net of deferred fees, After five years	282,696	231,975
Total gross loans, net of deferred fees	857,847	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	27,023	26,062
Total gross loans, net of deferred fees, After one but within five years	163,848	145,419
Total gross loans, net of deferred fees, After five years	119,825	114,457
Total gross loans, net of deferred fees	310,696	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	39,353	34,685
Total gross loans, net of deferred fees, After one but within five years	151,447	142,261
Total gross loans, net of deferred fees, After five years	101,201	62,628
Total gross loans, net of deferred fees	292,001	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	12,303	5,881
Total gross loans, net of deferred fees, After one but within five years	9,210	9,558
Total gross loans, net of deferred fees, After five years	20,934	17,954
Total gross loans, net of deferred fees	42,447	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	70,721	66,361
Total gross loans, net of deferred fees, After one but within five years	101,246	99,255
Total gross loans, net of deferred fees, After five years	40,736	36,936
Total gross loans, net of deferred fees	212,703	202,552
Consumer [Member]
Loan maturity distribution by type and related interest rate
Total gross loans, net of deferred fees, One year or less	59,927	52,636
Total gross loans, net of deferred fees, After one but within five years	97,534	88,805
Total gross loans, net of deferred fees, After five years	284,521	260,746
Total gross loans, net of deferred fees	441,982	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	26,561	26,342
Total gross loans, net of deferred fees, After one but within five years	54,848	49,832
Total gross loans, net of deferred fees, After five years	151,992	139,414
Total gross loans, net of deferred fees	233,401	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	9,382	7,142
Total gross loans, net of deferred fees, After one but within five years	30,130	29,041
Total gross loans, net of deferred fees, After five years	107,579	100,922
Total gross loans, net of deferred fees	147,091	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	16,602	14,103
Total gross loans, net of deferred fees, After one but within five years	2,614	627
Total gross loans, net of deferred fees, After five years	20,542	17,192
Total gross loans, net of deferred fees	39,758	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	7,382	5,049
Total gross loans, net of deferred fees, After one but within five years	9,942	9,305
Total gross loans, net of deferred fees, After five years	4,408	3,218
Total gross loans, net of deferred fees	$ 21,732	$ 17,572

Loans and Allowance for Loan 33

Loans and Allowance for Loan Losses (Details 2) - Commercial Loans [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	$ 857,847	$ 761,457
Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	310,696	285,938
Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	292,001	239,574
Construction [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	42,447	33,393
Business [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	212,703	202,552
Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	835,862	743,922
Pass [Member] | Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	305,676	282,055
Pass [Member] | Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	285,376	234,957
Pass [Member] | Construction [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	42,447	33,393
Pass [Member] | Business [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	202,363	193,517
Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	10,229	4,561
Special mention [Member] | Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	2,645	1,097
Special mention [Member] | Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	3,038	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	4,546	2,489
Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	11,756	12,974
Substandard [Member] | Owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	2,375	2,786
Substandard [Member] | Non-owner occupied RE [Member]
Outstanding commercial and consumer loans by risk category
Outstanding commercial loans	3,587	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	5,794	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	Jun. 30, 2017	Dec. 31, 2016
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	$ 855,414	$ 757,063
30-59 days past due	266	2,404
60-89 days past due		313
Greater than 90 Days	2,167	1,677
Total commercial loans	857,847	761,457
Owner occupied RE [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	310,451	284,700
30-59 days past due		981
60-89 days past due		257
Greater than 90 Days	245
Total commercial loans	310,696	285,938
Non-owner occupied RE [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	291,236	238,346
30-59 days past due
60-89 days past due		56
Greater than 90 Days	765	1,172
Total commercial loans	292,001	239,574
Construction [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	42,447	33,393
30-59 days past due
60-89 days past due
Greater than 90 Days
Total commercial loans	42,447	33,393
Business [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	211,280	200,624
30-59 days past due	266	1,423
60-89 days past due
Greater than 90 Days	1,157	505
Total commercial loans	$ 212,703	$ 202,552

Loans and Allowance for Loan 35

Loans and Allowance for Loan Losses (Details 4) - Consumer Loans [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	$ 441,982	$ 402,187
Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	435,126	395,094
Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	2,989	3,189
Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	3,867	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	233,401	215,588
Real estate [Member] | Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	229,812	211,563
Real estate [Member] | Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	744	1,064
Real estate [Member] | Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	2,845	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	147,091	137,105
Home equity [Member] | Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	143,932	134,124
Home equity [Member] | Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	2,235	2,109
Home equity [Member] | Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	924	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	39,758	31,922
Construction [Member] | Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	39,758	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	21,732	17,572
Other [Member] | Pass [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	21,624	17,485
Other [Member] | Special mention [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	10	16
Other [Member] | Substandard [Member]
Outstanding commercial and consumer loans by risk category
Outstanding consumer loans	98	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	Jun. 30, 2017	Dec. 31, 2016
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	$ 439,406	$ 400,215
30-59 days past due	1,128	1,377
60-89 days past due	977	288
Greater than 90 Days	471	307
Total consumer loans	441,982	402,187
Real estate [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	231,602	214,228
30-59 days past due	548	1,041
60-89 days past due	977	282
Greater than 90 Days	274	37
Total consumer loans	233,401	215,588
Home equity [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	146,328	136,638
30-59 days past due	566	210
60-89 days past due
Greater than 90 Days	197	257
Total consumer loans	147,091	137,105
Construction [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	39,758	31,922
30-59 days past due
60-89 days past due
Greater than 90 Days
Total consumer loans	39,758	31,922
Other [Member]
Outstanding commercial and consumer loans and include loans on nonaccrual status as well as accruing TDRs
Current	21,718	17,427
30-59 days past due	14	126
60-89 days past due		6
Greater than 90 Days		13
Total consumer loans	$ 21,732	$ 17,572

Loans and Allowance for Loan 37

Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Summary of nonperforming assets, including nonaccruing TDRs
Nonaccruing troubled debt restructurings	$ 749	$ 990
Total nonaccrual loans, including nonaccruing TDRs	5,258	5,482
Other real estate owned	428	639
Total nonperforming assets	$ 5,686	$ 6,121
Nonperforming assets as a percentage of:
Total assets	0.37%	0.46%
Gross loans	0.44%	0.53%
Total loans over 90 days past due	$ 2,638	$ 1,984
Loans over 90 days past due and still accruing
Accruing troubled debt restructurings	6,009	5,675
Commercial [Member] | Owner occupied RE [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	245	276
Commercial [Member] | Non-owner occupied RE [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	2,205	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	1,324	686
Consumer [Member] | Real estate [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	534	550
Consumer [Member] | Home equity [Member]
Summary of nonperforming assets, including nonaccruing TDRs
Total nonaccrual loans, including nonaccruing TDRs	197	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	$ 4	$ 13

Loans and Allowance for Loan 38

Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Summary of key information for impaired loans
Unpaid Principal Balance	$ 15,623	$ 15,542
Impaired loans	11,267	11,157
Impaired loans with related allowance for loan losses	7,299	7,492
Related allowance for loan losses	3,256	2,644
Commercial [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	13,590	13,221
Impaired loans	9,262	8,867
Impaired loans with related allowance for loan losses	5,294	5,472
Related allowance for loan losses	2,067	1,874
Commercial [Member] | Owner occupied RE [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	2,240	2,284
Impaired loans	2,186	2,243
Impaired loans with related allowance for loan losses	833	2,224
Related allowance for loan losses	401	263
Commercial [Member] | Non-owner occupied RE [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	7,042	7,238
Impaired loans	3,495	4,031
Impaired loans with related allowance for loan losses	1,374	1,638
Related allowance for loan losses	361	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	4,308	3,699
Impaired loans	3,581	2,593
Impaired loans with related allowance for loan losses	3,087	1,610
Related allowance for loan losses	1,305	1,154
Consumer [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	2,033	2,321
Impaired loans	2,005	2,290
Impaired loans with related allowance for loan losses	2,005	2,020
Related allowance for loan losses	1,189	770
Consumer [Member] | Real estate [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	1,650	1,853
Impaired loans	1,629	1,843
Impaired loans with related allowance for loan losses	1,629	1,843
Related allowance for loan losses	1,026	682
Consumer [Member] | Home equity [Member]
Summary of key information for impaired loans
Unpaid Principal Balance	203	207
Impaired loans	197	257
Impaired loans with related allowance for loan losses	197
Related allowance for loan losses	135
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	180	261
Impaired loans	179	190
Impaired loans with related allowance for loan losses	179	177
Related allowance for loan losses	$ 28	$ 88

Loans and Allowance for Loan 39

Loans and Allowance for Loan Losses (Details 8) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	$ 11,450	$ 14,552	$ 11,581	$ 14,663	$ 11,556
Recognized interest income	146	128	264	291	536
Commercial [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	9,438	12,848	9,560	12,956	9,242
Recognized interest income	128	110	227	263	447
Commercial [Member] | Owner occupied RE [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	2,195	1,994	2,204	1,999	2,263
Recognized interest income	26	21	53	43	112
Commercial [Member] | Non-owner occupied RE [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	3,620	5,582	3,721	5,642	4,106
Recognized interest income	48	35	76	86	200
Commercial [Member] | Construction [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment
Recognized interest income
Commercial [Member] | Business [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	3,623	5,272	3,635	5,315	2,873
Recognized interest income	54	54	98	134	135
Consumer [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	2,012	1,704	2,021	1,707	2,314
Recognized interest income	18	18	37	28	89
Consumer [Member] | Real estate [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	1,635	1,153	1,642	1,155	1,854
Recognized interest income	16	12	33	21	81
Consumer [Member] | Home equity [Member]
Average recorded investment and interest income recognized on impaired loans
Average recorded investment	197	257	198	257	257
Recognized interest income	1	1	2	1	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	180	294	181	295	203
Recognized interest income	$ 1	$ 5	$ 2	$ 6	$ 6

Loans and Allowance for Loan 40

Loans and Allowance for Loan Losses (Details 9) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of activity related to our allowance for loan losses
Balance, beginning of period	$ 15,287	$ 13,898	$ 14,855	$ 13,629
Provision for loan losses	500	575	1,000	1,200
Loan charge-offs	(373)	(384)	(563)	(779)
Loan recoveries	30	228	152	267
Net loan charge-offs	(343)	(156)	(411)	(512)
Balance, end of period	$ 15,444	$ 14,317	$ 15,444	$ 14,317
Net charge-offs to average loans (annualized)	0.11%	0.06%	0.03%	0.10%
Allowance for loan losses to gross loans	1.19%	1.34%
Allowance for loan losses to nonperforming loans	293.75%	250.63%
Commercial [Member] | Owner occupied RE [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	$ 3,052	$ 2,493	$ 2,843	$ 2,347
Provision for loan losses	(88)	304	121	455
Loan charge-offs				(5)
Loan recoveries
Net loan charge-offs				(5)
Balance, end of period	2,964	2,797	2,964	2,797
Commercial [Member] | Non-owner occupied RE [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	2,967	3,236	2,778	3,187
Provision for loan losses	255	(250)	623	(128)
Loan charge-offs	(253)		(433)	(75)
Loan recoveries	12	25	13	27
Net loan charge-offs	(241)	25	(420)	(48)
Balance, end of period	2,981	3,011	2,981	3,011
Commercial [Member] | Construction [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	334	442	295	338
Provision for loan losses	16	(49)	55	55
Loan charge-offs		(42)		(42)
Loan recoveries
Net loan charge-offs		(42)		(42)
Balance, end of period	350	351	350	351
Commercial [Member] | Business [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	3,823	3,639	4,123	3,800
Provision for loan losses	139	488	(182)	330
Loan charge-offs	(120)	(311)	(130)	(348)
Loan recoveries	15	203	46	237
Net loan charge-offs	(105)	(108)	(84)	(111)
Balance, end of period	3,857	4,019	3,857	4,019
Consumer [Member] | Real Estate [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	2,830	2,131	2,780	2,070
Provision for loan losses	240	170	200	418
Loan charge-offs				(187)
Loan recoveries	(9)		81
Net loan charge-offs	(9)		81	(187)
Balance, end of period	3,061	2,301	3,061	2,301
Consumer [Member] | Home equity [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	1,619	1,263	1,475	1,202
Provision for loan losses	(23)	40	121	101
Loan charge-offs		(7)		(7)
Loan recoveries	12		12
Net loan charge-offs	12	(7)	12	(7)
Balance, end of period	1,608	1,296	1,608	1,296
Consumer [Member] | Construction [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	289	351	252	313
Provision for loan losses	39	(139)	76	(101)
Loan charge-offs
Loan recoveries
Net loan charge-offs
Balance, end of period	328	212	328	212
Consumer [Member] | Other [Member]
Summary of activity related to our allowance for loan losses
Balance, beginning of period	373	343	309	372
Provision for loan losses	(78)	11	(14)	70
Loan charge-offs		(24)		(115)
Loan recoveries				3
Net loan charge-offs		(24)		(112)
Balance, end of period	$ 295	$ 330	$ 295	$ 330

Loans and Allowance for Loan 41

Loans and Allowance for Loan Losses (Details 10) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Allowance for loan losses and recorded investment in loans by impairment methodology
Allowance for loan losses, Individually evaluated	$ 3,256	$ 2,644
Allowance for loan losses, Collectively evaluated	12,188	12,211
Allowance for loan losses, Total	15,444	14,855
Recorded investment in loans, Individually evaluated	11,267	11,157
Recorded investment in loans, Collectively evaluated	1,288,562	1,152,487
Total gross loans, net of deferred fees	1,299,829	1,163,644
Commercial [Member]
Allowance for loan losses and recorded investment in loans by impairment methodology
Allowance for loan losses, Individually evaluated	2,067	1,874
Allowance for loan losses, Collectively evaluated	8,085	8,165
Allowance for loan losses, Total	10,152	10,039
Recorded investment in loans, Individually evaluated	9,262	8,867
Recorded investment in loans, Collectively evaluated	848,585	752,590
Total gross loans, net of deferred fees	857,847	761,457
Consumer [Member]
Allowance for loan losses and recorded investment in loans by impairment methodology
Allowance for loan losses, Individually evaluated	1,189	770
Allowance for loan losses, Collectively evaluated	4,103	4,046
Allowance for loan losses, Total	5,292	4,816
Recorded investment in loans, Individually evaluated	2,005	2,290
Recorded investment in loans, Collectively evaluated	439,977	399,897
Total gross loans, net of deferred fees	$ 441,982	$ 402,187

Loans and Allowance for Loan 42

Loans and Allowance for Loan Losses (Details Textual) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Loans and Allowance for Loan Losses (Textual)
Net of deferred loan fees and costs	$ 2.2	$ 2
Part of loans of 30 days or more past due as a percentage of total loan portfolio	0.39%	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	0.19%	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	0.20%	0.17%

Troubled Debt Restructurings (D

Troubled Debt Restructurings (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)Investment	Jun. 30, 2016USD ($)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	3
Reduced or deferred payments	1
Converted to interest only
Maturity date extensions
Total number of loans	2	3
Pre-modification outstanding recorded investment | $	$ 378	$ 2,491
Post-modification outstanding recorded investment | $	$ 387	$ 2,495
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	1
Reduced or deferred payments	1
Converted to interest only
Maturity date extensions
Total number of loans	2	1
Pre-modification outstanding recorded investment | $	$ 378	$ 2,381
Post-modification outstanding recorded investment | $	$ 387	$ 2,381
Commercial [Member] | Other [Member]
Summary of concession at the time of modification and the recorded investment in TDRs before and after their modification
Renewals deemed a concession		2
Reduced or deferred payments
Converted to interest only
Maturity date extensions
Total number of loans		2
Pre-modification outstanding recorded investment | $		$ 110
Post-modification outstanding recorded investment | $		$ 114

Troubled Debt Restructurings 44

Troubled Debt Restructurings (Details Textual) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017USD ($)Investment	Jun. 30, 2017USD ($)Investment	Dec. 31, 2016USD ($)Investment
Troubled Debt Restructurings (Textual)
Total number of loans classified under troubled debt restructurings (TDRs) | Investment	18	18	17
Total sum of loans classified as troubled debt restructurings (TDRs)	$ 6,800	$ 6,800	$ 6,700
Number of months previous loan payment defaulted		12 months
Before loan modified investment amount	229,000
Modified investment amount	$ 238,000	$ 238,000

Derivative Financial Instrume45

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Mortgage loan interest rate lock commitments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative financial instruments, Notional amount	$ 28,457	$ 17,986
Derivative Asset/(Liability), Fair Value	357	256
MBS forward sales commitments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative financial instruments, Notional amount	20,250	14,250
Derivative Asset/(Liability), Fair Value	72	(3)
Total derivative financial instruments [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative financial instruments, Notional amount	48,707	32,236
Derivative Asset/(Liability), Fair Value	$ 429	$ 253

Fair Value Accounting (Details)

Fair Value Accounting (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Securities available for sale
US government agencies	$ 9,200	$ 6,159
SBA securities	4,417	1,437
State and political subdivisions	20,378	20,474
Mortgage-backed securities	47,384	36,410
Mortgage loans held for sale	11,480	7,801
Interest rate lock commitments	357	256
MBS forward sales commitments	72
Total assets measured at fair value on a recurring basis	93,288	72,537
Liabilities
MBS forward sales commitments		3
Total liabilities measured at fair value on a recurring basis		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	9,200	6,159
SBA securities	4,417	1,437
State and political subdivisions	20,378	20,474
Mortgage-backed securities	47,384	36,410
Mortgage loans held for sale	11,480	7,801
Interest rate lock commitments	357	256
MBS forward sales commitments	72
Total assets measured at fair value on a recurring basis	93,288	72,537
Liabilities
MBS forward sales commitments		3
Total liabilities measured at fair value on a recurring basis		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	Jun. 30, 2017	Dec. 31, 2016
Assets
Impaired loans	$ 8,011	$ 8,513
Other real estate owned	428	639
Total assets measured at fair value on a nonrecurring basis	8,439	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	2,614	4,075
Other real estate owned	315	526
Total assets measured at fair value on a nonrecurring basis	2,929	4,601
Level 3 [Member]
Assets
Impaired loans	5,397	4,438
Other real estate owned	113	113
Total assets measured at fair value on a nonrecurring basis	$ 5,510	$ 4,551

Fair Value Accounting (Detail48

Fair Value Accounting (Details 2)	6 Months Ended
	Jun. 30, 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	Jun. 30, 2017	Dec. 31, 2016
Financial Assets:
Other investments, at cost, Carrying Amount	$ 4,031	$ 5,742
Loans, net, Carrying Amount	1,284,385	1,148,789
Other investments, at cost, Fair Value	4,031	5,742
Loans, net, Fair Value	1,287,454	1,149,527
Financial Liabilities:
Deposits, Carrying Amount	1,297,911	1,091,151
FHLB and other borrowings, Carrying Amount	73,200	115,200
Junior subordinated debentures, Carrying Amount	13,403	13,403
Deposits, Fair Value	1,201,720	1,004,923
FHLB and other borrowings, Fair Value	73,606	115,825
Junior subordinated debentures, Fair Value	12,528	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	2,614	4,075
Financial Liabilities:
Deposits, Fair Value	1,201,720	1,004,923
FHLB and other borrowings, Fair Value	73,606	115,825
Junior subordinated debentures, Fair Value	12,528	12,026
Level 3 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Financial Assets:
Other investments, at cost, Fair Value	4,031	5,742
Loans, net, Fair Value	1,284,840	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)	6 Months Ended
	Jun. 30, 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		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net income available to common shareholders	$ 3,604	$ 3,306	$ 6,716	$ 6,312
Denominator:
Weighted-average common shares outstanding - basic	6,986,948	6,301,853	6,713,608	6,287,350
Common stock equivalents	379,260	400,967	385,773	395,776
Weighted-average common shares outstanding - diluted	7,366,208	6,702,820	7,099,381	6,683,126
Earnings per common share:
Basic	$ 0.52	$ 0.52	$ 1	$ 1
Diluted	$ 0.49	$ 0.49	$ 0.95	$ 0.94

Earnings Per Common Share (De52

Earnings Per Common Share (Details Textual) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Common Share (Textual)
Anti-dilutive securities excluded from computation of earnings per share, amount	120,681	97,500

Reportable Segments (Details)

Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Interest income	$ 14,931	$ 12,503	$ 28,890	$ 24,832
Interest expense	2,579	1,990	4,931	4,012
Net interest income (loss)	12,352	10,513	23,959	20,820
Provision for loan losses	500	575	1,000	1,200
Noninterest income	2,562	3,146	4,614	5,704
Noninterest expense	8,762	7,853	17,123	15,369
Net income (loss) before taxes	5,652	5,231	10,450	9,955
Income tax (provision) benefit	(2,048)	(1,925)	(3,734)	(3,643)
Net income (loss)	3,604	3,306	6,716	6,312
Total assets	1,539,226	1,290,710	1,539,226	1,290,710	$ 1,340,908
Commercial and Retail Banking [Member]
Segment Reporting Information [Line Items]
Interest income	14,851	12,410	28,744	24,677
Interest expense	2,442	1,894	4,665	3,817
Net interest income (loss)	12,409	10,516	24,079	20,860
Provision for loan losses	500	575	1,000	1,200
Noninterest income	959	911	1,954	2,022
Noninterest expense	7,667	6,698	15,114	13,032
Net income (loss) before taxes	5,201	4,154	9,919	8,650
Income tax (provision) benefit	(1,877)	(1,525)	(3,530)	(3,090)
Net income (loss)	3,324	2,629	6,389	5,560
Total assets	1,527,837	1,272,894	1,527,837	1,272,894
Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Interest income	80	93	146	155
Interest expense
Net interest income (loss)	80	93	146	155
Provision for loan losses
Noninterest income	1,603	2,235	2,660	3,682
Noninterest expense	1,035	1,313	1,883	2,214
Net income (loss) before taxes	648	1,015	923	1,623
Income tax (provision) benefit	(240)	(387)	(342)	(611)
Net income (loss)	408	628	581	1,012
Total assets	10,958	15,011	10,958	15,011
Corporate [Member]
Segment Reporting Information [Line Items]
Interest income	6		8	1
Interest expense	143	96	274	196
Net interest income (loss)	(137)	(96)	(266)	(195)
Provision for loan losses
Noninterest income
Noninterest expense	60	(158)	126	123
Net income (loss) before taxes	(197)	62	(392)	(318)
Income tax (provision) benefit	69	(13)	138	58
Net income (loss)	(128)	49	(254)	(260)
Total assets	156,145	115,810	156,145	115,810
Eliminations [Member]
Segment Reporting Information [Line Items]
Interest income	(6)		(8)	(1)
Interest expense	(6)		(8)	(1)
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	$ (155,714)	$ (113,005)	$ (155,714)	$ (113,005)

Reportable Segments (Details Te

Reportable Segments (Details Textual)	6 Months Ended
	Jun. 30, 2017Segments
Reportable Segments (Textual)
Number of segments	3