American River Bancshares (AMRB) 10-Q8 Aug 172017 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 08, 2017
Document and Entity Information:
Entity Registrant Name	AMERICAN RIVER BANKSHARES
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Entity Central Index Key	1,108,236
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		6,391,520
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEET (Una

CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 22,004	$ 27,589
Interest-bearing deposits in banks	1,248	999
Investment securities:
Available-for-sale, at fair value	257,471	254,020
Held-to-maturity, at amortized cost	429	483
Loans and leases, less allowance for loan and lease losses of $4,881 at June 30, 2017 and $4,822 at December 31, 2016	316,146	324,086
Premises and equipment, net	1,275	1,362
Federal Home Loan Bank stock	3,932	3,779
Goodwill and other intangible assets	16,321	16,321
Other real estate owned	1,348	1,348
Bank owned life insurance	14,962	14,805
Accrued interest receivable and other assets	6,469	6,658
Total Assets	641,605	651,450
Deposits:
Noninterest bearing	196,212	201,113
Interest-bearing	341,668	343,693
Total deposits	537,880	544,806
Short-term borrowings	2,000	3,500
Long-term borrowings	13,500	12,000
Accrued interest payable and other liabilities	6,852	7,294
Total liabilities	560,232	567,600
Shareholders' equity:
Preferred stock, no par value; 20,000,000 shares authorized; none outstanding
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding - 6,357,767 shares at June 30, 2017 and 6,661,726 shares at December 31, 2016	37,739	42,484
Retained earnings	42,646	40,822
Accumulated other comprehensive income, net of taxes	988	544
Total shareholders' equity	81,373	83,850
Total liabilities and shareholders' euity	$ 641,605	$ 651,450

CONSOLIDATED BALANCE SHEET (Un3

CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Held-to-maturity securities	$ 462	$ 521
Allowance for loan and lease losses (in dollars)	$ 4,881	$ 4,822
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares outstanding	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	6,357,767	6,661,726
Common stock, shares outstanding	6,357,767	6,661,726

CONSOLIDATED STATEMENT OF INCOM

CONSOLIDATED STATEMENT 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 and fees on loans:
Taxable	$ 3,458	$ 3,445	$ 6,888	$ 6,807
Exempt from Federal income taxes	133	173	266	345
Interest on deposits in banks	3	2	5	3
Interest and dividends on investment securities:
Taxable	1,363	1,441	2,686	2,993
Exempt from Federal income taxes	159	162	316	346
Dividends	5	6	13	11
Total interest income	5,121	5,229	10,174	10,505
Interest expense:
Interest on deposits	203	182	397	366
Interest on borrowings	49	39	97	89
Total interest expense	252	221	494	455
Net interest income	4,869	5,008	9,680	10,050
Provision for loan and lease losses	0	0	0	0
Net interest income after provision for loan and lease losses	4,869	5,008	9,680	10,050
Noninterest income:
Service charges on deposit accounts	114	127	231	256
Gain (loss) on sale, call, or impairment of securities	86	(1)	142	281
Rental income from other real estate owned	0	0	0	106
Other noninterest income	239	237	485	474
Total noninterest income	439	363	858	1,117
Noninterest expense:
Salaries and employee benefits	2,064	2,101	4,234	4,261
Occupancy	262	292	531	590
Furniture and equipment	147	163	298	328
Federal Deposit Insurance Corporation assessments	52	76	105	156
Expenses related to other real estate owned	12	20	32	360
Other expense	831	763	1,598	1,511
Total noninterest expense	3,368	3,415	6,798	7,206
Income before provision for income taxes	1,940	1,956	3,740	3,961
Provision for income taxes	643	652	1,259	1,285
Net income	$ 1,297	$ 1,304	$ 2,481	$ 2,676
Basic earnings per share	$ 0.2	$ 0.19	$ 0.38	$ 0.39
Diluted earnings per share	0.2	0.19	0.38	0.39
Cash dividends per share	$ 0.05	$ 0	$ 0.1	$ 0

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT 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
Statement of Comprehensive Income [Abstract]
Net income	$ 1,297	$ 1,304	$ 2,481	$ 2,676
Other comprehensive income:
Increase in net unrealized gains on investment securities	412	810	873	3,712
Deferred tax expense	(166)	(324)	(344)	(1,485)
Increase in net unrealized gains on investment securities, net of tax	246	486	529	2,227
Reclassification adjustment for realized gains included in net income	(86)	1	(142)	(281)
Tax effect	35	0	57	112
Realized gains, net of tax	(51)	1	(85)	(169)
Total other comprehensive income	195	487	444	2,058
Comprehensive income	$ 1,492	$ 1,791	$ 2,925	$ 4,734

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Total
Begining Balance, Amount at Dec. 31, 2015	$ 49,554	$ 34,418	$ 2,103	$ 86,075
Begining Balance, Shares at Dec. 31, 2015	7,343,649
Net income		$ 2,676		2,676
Other comprehensive income, net of tax:
Net change in unrealized gains on available-for-sale investment securities			$ 2,058	2,058
Net restricted stock award activity and related compensation expense, Amount	$ 147			147
Net restricted stock award activity and related compensation expense, Shares	28,728
Stock options exercised and compensation expense, Amount	$ 24			24
Stock options exercised and compensation expense, Shares	500
Retirement of common stock, Amount	$ (7,414)			$ (7,414)
Retirement of common stock, Shares	(716,897)
Ending Balance, Amount at Jun. 30, 2016	$ 42,311
Ending Balance, Shares at Jun. 30, 2016	6,655,980	37,094	4,161	83,566
Begining Balance, Amount at Dec. 31, 2016	$ 42,484	$ 40,822	$ 544	$ 83,850
Begining Balance, Shares at Dec. 31, 2016	6,661,726
Net income		2,481		2,481
Other comprehensive income, net of tax:
Net change in unrealized gains on available-for-sale investment securities			444	444
Cash dividends		(657)		(657)
Net restricted stock award activity and related compensation expense, Amount	$ 181			181
Net restricted stock award activity and related compensation expense, Shares	22,032
Stock options exercised and compensation expense, Amount	$ 60			60
Stock options exercised and compensation expense, Shares	7,095
Stock option compensation expense, Amount	$ 20			20
Stock option compensation expense, Shares
Retirement of common stock, Amount	$ (5,006)			(5,006)
Retirement of common stock, Shares	(333,086)
Ending Balance, Amount at Jun. 30, 2017	$ 37,739	$ 42,646	$ 988	$ 81,373
Ending Balance, Shares at Jun. 30, 2017	6,357,767

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 2,481	$ 2,676
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	0	0
Increase in deferred loan origination fees, net	3	26
Depreciation and amortization	173	220
Gain on sale, call, and impairment of investment securities, net	(142)	(281)
Amortization of investment security premiums and discounts, net	1,648	1,422
Increase in cash surrender values of life insurance policies	(157)	(160)
Stock based compensation expense	201	167
Losson sale or write-down of other real estate owned	0	259
(Increase) decrease in accrued interest receivable and other assets	(98)	621
Decreasein accrued interest payable and other liabilities	(442)	(1,563)
Net cash provided by operating activities	3,667	3,387
Cash flows from investing activities:
Proceeds from the sale of available-for-sale investment securities	17,605	8,287
Proceeds from matured available-for-sale investment securities	1,930	600
Proceeds from called available-for-sale investment securities	145	0
Purchases of available-for-sale investment securities	(45,419)	(8,875)
Proceeds from principal repayments for available-for-sale investment securities	21,513	21,612
Proceeds from principal repayments for held-to-maturity investment securities	54	83
Net increase in interest-bearing deposits in banks	(249)	(249)
Net decrease (increase) in loans	7,937	(14,326)
Proceeds from sale of other real estate	0	710
Net increase in FHLB stock	(153)	0
Purchases of equipment	(86)	(118)
Net cash provided by investing activities	3,277	7,724
Cash flows from financing activities:
Net increase (decrease) in demand, interest-bearing and savings deposits	(4,771)	(2,785)
Net decrease in time deposits	(2,155)	(1,972)
Net(decrease) increasein short-term borrowings	(1,500)	1,500
Net increase (decrease)in long-term borrowings	1,500	(1,500)
Proceeds from stock option exercise	60	4
Cash dividends paid	(657)	0
Cash paid to repurchase common stock	(5,006)	(7,414)
Net cash used in financing activities	(12,529)	(12,167)
Decreasein cash and cash equivalents	(5,585)	(1,056)
Cash and cash equivalents at beginning of year	27,589	23,727
Cash and cash equivalents at end of period	$ 22,004	$ 22,671

1. CONSOLIDATED FINANCIAL STATE

1. CONSOLIDATED FINANCIAL STATEMENTS	6 Months Ended
1. CONSOLIDATED FINANCIAL STATEMENTS	Jun. 30, 2017
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS	In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of American River Bankshares (the Company) at June 30, 2017 and December 31, 2016, the results of its operations and statement of comprehensive income for the three-month and six-month periods ended June 30, 2017 and 2016, its cash flows for the six-month periods ended June 30, 2017 and 2016 and its statement of changes in shareholders equity for the six months ended June 30, 2017 and 2016 in conformity with accounting principles generally accepted in the United States of America. Certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The Company believes that the disclosures are adequate to make the information not misleading. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Companys annual report on Form 10-K for the year ended December 31, 2016. The results of operations for the three-month and six-month periods ended June 30, 2017 may not necessarily be indicative of the operating results for the full year. In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan and lease losses, the provision for taxes, the valuation of goodwill and the estimated fair value of investment securities, impaired loans and other real estate owned. Management has determined that since all of the banking products and services offered by the Company are available in each branch office of American River Bank, all branch offices are located within the same economic environment and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate all of the branch offices and report them as a single operating segment. No client accounts for more than ten percent (10%) of revenues for the Company or American River Bank.

2. STOCK-BASED COMPENSATION

2. STOCK-BASED COMPENSATION	6 Months Ended
2. STOCK-BASED COMPENSATION	Jun. 30, 2017
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	Equity Plans On March 17, 2010, the Board of Directors adopted the 2010 Equity Incentive Plan (the 2010 Plan). The 2010 Plan was approved by the Companys shareholders on May 20, 2010. In 2000, the Board of Directors adopted and the Companys shareholders approved a stock option plan (the 2000 Plan), under which 64,134 options remain outstanding at June 30, 2017. At June 30, 2017, under the 2010 Plan, there were 76,461 stock options and 79,474 restricted shares outstanding and the total number of authorized shares that remain available for issuance was 1,362,437. The 2010 Plan provides for the following types of stock-based awards: incentive stock options; nonqualified stock options; stock appreciation rights; restricted stock; restricted performance stock; unrestricted Company stock; and performance units. Awards under the 2000 Plan were either incentive stock options or nonqualified stock options. Under the 2010 Plan, the awards may be granted to employees and directors under incentive and nonqualified option agreements, restricted stock agreements, and other awards agreements. The unvested restricted stock under the 2010 Plan have dividend and voting rights. The 2010 Plan and the 2000 Plan (collectively the Plans) require that the option price may not be less than the fair market value of the stock at the date the option is awarded. The option awards under the Plans expire on dates determined by the Board of Directors, but not later than ten years from the date of award. The vesting period is generally five years; however, the vesting period can be modified at the discretion of the Companys Board of Directors. Outstanding option awards under the Plans are exercisable until their expiration, however, no new options will be awarded under the 2000 Plan. New shares are issued upon exercise of an option. The award date fair value of awards is determined by the market price of the Companys common stock on the date of award and is recognized ratably as compensation expense or director expense over the vesting periods. The shares of common stock awarded pursuant to such agreements vest in increments over one to five years from the date of award. The shares awarded to employees and directors under the restricted stock agreements vest on the applicable vesting dates only to the extent the recipient of the shares is then an employee or a director of the Company or one of its subsidiaries, and each recipient will forfeit all of the shares that have not vested on the date his or her employment or service is terminated. Equity Compensation For the three-month periods ended June 30, 2017 and 2016, the compensation cost recognized for equity compensation was $100,000 and $85,000, respectively. The recognized tax benefit for equity compensation expense was $36,000 and $30,000, respectively, for the three-month periods ended June 30, 2017 and 2016. For the six-month periods ended June 30, 2017 and 2016, the compensation cost recognized for equity compensation was $201,000 and $167,000, respectively. The recognized tax benefit for equity compensation expense was $73,000 and $59,000, respectively, for the six-month periods ended June 30, 2017 and 2016. At June 30, 2017, the total unrecognized pre-tax compensation cost related to nonvested stock option awards was $79,000. This amount will be recognized over the next 3.0 years and the weighted average period of recognizing these costs is expected to be 1.7 years. At June 30, 2017, the total unrecognized pre-tax compensation cost related to restricted stock awards was $579,000. This amount will be recognized over the next 4.9 years and the weighted average period of recognizing these costs is expected to be 1.6 years. Equity Plans Activity Stock Options There were no stock options awarded during the three-month and six-month periods ended June 30, 2017 and June 30, 2016. A summary of option activity under the Plans as of June 30, 2017 and changes during the period then ended is presented below: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at January 1, 2017 186,023 $ 12.92 3.7 years $ 741 Awarded Exercised (7,095 ) 8.50 Expired, forfeited or cancelled (38,333 ) 21.70 Outstanding at June 30, 2017 140,595 $ 10.42 4.2 years $ 629 Vested at June 30, 2017 111,648 $ 10.73 3.4 years $ 477 Non-vested at June 30, 2017 28,947 $ 9.24 7.4 years $ 153 Restricted Stock There were 9,949 and 24,982 shares of restricted stock awarded during the three-month and six-month periods ended June 30, 2017, respectively. There were 11,923 and 29,756 shares of restricted stock awarded during the three-month and six-month periods ended June 30, 2016, respectively. 10 Restricted Stock Shares Weighted Average Award Date Fair Value Nonvested at January 1, 2017 71,824 $ 9.69 Awarded 24,982 14.65 Less: Vested 14,387 9.76 Less: Expired, forfeited or cancelled 2,949 10.01 Nonvested at June 30, 2017 79,474 $ 11.22 Other Equity Awards There were no stock appreciation rights; restricted performance stock; unrestricted Company stock; or performance units awarded during the three-month or six-month month periods ended June 30, 2017 or 2016 or outstanding at June 30, 2017 or December 31, 2016. The intrinsic value used for stock options and restricted stock awards was derived from the market price of the Companys common stock of $14.51 as of June 30, 2017.

3. COMMITMENTS AND CONTINGENCIE

3. COMMITMENTS AND CONTINGENCIES	6 Months Ended
3. COMMITMENTS AND CONTINGENCIES	Jun. 30, 2017
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	In the normal course of business there are outstanding various commitments to extend credit which are not reflected in the financial statements, including loan commitments of approximately $10,658,000 and standby letters of credit of approximately $191,000 at June 30, 2017 and loan commitments of approximately $19,728,000 and standby letters of credit of approximately $238,000 at December 31, 2016. Such commitments relate primarily to real estate construction loans, revolving lines of credit and other commercial loans. However, all such commitments will not necessarily culminate in actual extensions of credit by the Company during 2017 as some of these are expected to expire without being fully drawn upon. Standby letters of credit are commitments issued to guarantee the performance or financial obligation of a client to a third party. These guarantees are issued primarily relating to purchases of inventory, insurance programs, performance obligations to government agencies, or as security for real estate rents by commercial clients and are typically short-term in nature. Credit risk is similar to that involved in extending loan commitments to clients and accordingly, evaluation and collateral requirements similar to those for loan commitments are used. The majority of all such commitments are collateralized. The fair value of the liability related to these standby letters of credit, which represents the fees received for issuing the guarantees, was not significant at June 30, 2017 or December 31, 2016.

4. EARNINGS PER SHARE COMPUTATI

4. EARNINGS PER SHARE COMPUTATION	6 Months Ended
4. EARNINGS PER SHARE COMPUTATION	Jun. 30, 2017
EARNINGS PER SHARE COMPUTATION
EARNINGS PER SHARE COMPUTATION	Basic earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period (6,346,650 and 6,454,864 shares for the three-month and six-month periods ended June 30, 2017 and 6,717,456 and 6,906,620 shares for the three-month and six-month periods ended June 30, 2016). Using the treasury stock method, diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock. Diluted earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period plus the dilutive effect of stock based awards. There were 81,372 and 85,801, respectively, dilutive shares for the three-month and six-month periods ended June 30, 2017 and 28,643 and 26,818, respectively, dilutive shares for the three-month and six-month periods ended June 30, 2016. For the three-month periods ended June 30, 2017 and 2016, there were 32,448 and 105,844 stock options, respectively, that were excluded from the calculation as they were considered antidilutive. For the six-month periods ended June 30, 2017 and 2016, there were 32,448 and 138,549 stock options, respectively, that were excluded from the calculation as they were considered antidilutive. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented. Accounting Standards Codification (ASC) 260, Earnings per Share

5. INVESTMENT SECURITIES

5. INVESTMENT SECURITIES	6 Months Ended
5. INVESTMENT SECURITIES	Jun. 30, 2017
INVESTMENTS SECURITIES (Tables)
INVESTMENT SECURITIES	The amortized cost and estimated fair values of Available-for-Sale and Held-to-Maturity investment securities at June 30, 2017 and December 31, 2016 consisted of the following (dollars in thousands): Available-for-Sale June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 227,252 $ 2,078 $ (1,065 ) $ 228,265 Obligations of states and political subdivisions 22,032 664 (171 ) 22,525 Corporate bonds 6,489 113 (13 ) 6,589 Equity securities: Corporate stock 51 41 92 $ 255,824 $ 2,896 $ (1,249 ) $ 257,471 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 229,118 $ 2,150 $ (1,483 ) $ 229,785 Obligations of states and political subdivisions 22,436 559 (383 ) 22,612 Corporate bonds 1,501 18 1,519 Equity securities: Corporate stock 49 55 104 $ 253,104 $ 2,782 $ (1,866 ) $ 254,020 Net unrealized gains on available-for-sale investment securities totaling $1,647,000 were recorded, net of $659,000 in tax liabilities, as accumulated other comprehensive income within shareholders equity at June 30, 2017. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended June 30, 2017 totaled $9,133,000 and $86,000, respectively, and for the six-month period ended June 30, 2017 proceeds and gross realized gains from the sale and call of available-for-sale investment securities totaled $17,605,000 and $142,000, respectively. There were no transfers of available-for-sale investment securities for the three-month and six-month periods ended June 30, 2017. Net unrealized gains on available-for-sale investment securities totaling $916,000 were recorded, net of $372,000 in tax liabilities, as accumulated other comprehensive income within shareholders equity at December 31, 2016. There were no sales or calls of available-for-sale investment securities for the three-month period ended June 30, 2016, however, there was an impairment loss of one security resulting in the write-down of the remaining balance of $1,000, and for the six-month period ended June 30, 2016 proceeds and gross realized gains from the sale, call, and impairment of available-for-sale investment securities totaled $8,287,000 and $281,000, respectively. There were no transfers of available-for-sale investment securities for the three-month and six-month periods ended June 30, 2016. Held-to-Maturity June 30, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 429 $ 33 $ $ 462 December 31, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 483 $ 38 $ $ 521 There were no sales or transfers of held-to-maturity investment securities for the periods ended June 30, 2017 and June 30, 2016. Investment securities with unrealized losses at June 30, 2017 and December 31, 2016 are summarized and classified according to the duration of the loss period as follows (dollars in thousands): June 30, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Entities $ 101,497 $ (1,023 ) 4,817 (42 ) $ 106,314 $ (1,065 ) Obligations of states and political subdivisions 4,646 (130 ) 985 (41 ) 5,631 (171 ) Corporate bonds 1,976 (13 ) 1,976 (13 ) $ 108,119 $ (1,166 ) $ 5,802 $ (83 ) $ 113,921 $ (1,249 ) December 31, 2016 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: US Government Agencies and Sponsored Entities $ 111,870 $ (1,415 ) $ 5,010 $ (68 ) $ 116,880 $ (1,483 ) Obligations of states and political subdivisions 8,319 (383 ) 8,319 (383 ) $ 120,189 $ (1,798 ) $ 5,010 $ (68 ) $ 125,199 $ (1,866 ) There were no held-to-maturity investment securities with unrealized losses as of June 30, 2017 or December 31, 2016. At June 30, 2017, the Company held 222 securities of which 67 were in a loss position for less than twelve months and four were in a loss position for twelve months or more. Of the 67 securities in a loss position for less than twelve months, 62 were U.S. Government Agencies and Sponsored Entities securities, four were obligations of states or political subdivisions, and one was a corporate bond and of the four securities that were in a loss position for greater than twelve months, three were U.S. Government Agencies and Sponsored Entities securities and one was an obligation of states or political subdivisions. At December 31, 2016, the Company held 219 securities of which 70 were in a loss position for less than twelve months and three were in a loss position for twelve months or more. Of the three securities that were in a loss position for greater than twelve months, all were US Government Agencies and Sponsored Entities. The unrealized loss on the Companys investment securities is primarily driven by interest rates. Because the decline in market value is attributable to a change in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be until maturity, management does not consider these investments to be other-than-temporarily impaired. The amortized cost and estimated fair values of investment securities at June 30, 2017 by contractual maturity are shown below (dollars in thousands). Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year $ $ After one year through five years 4,974 5,026 After five years through ten years 18,268 18,839 After ten years 5,279 5,249 28,521 29,114 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Entities 227,252 228,265 $ 429 $ 462 Corporate stock 51 92 $ 255,824 $ 257,471 $ 429 $ 462 Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

6. IMPAIRED AND NONPERFORMING L

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	6 Months Ended
	Jun. 30, 2017
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED	At June 30, 2017 and December 31, 2016, the recorded investment in nonperforming loans and leases was approximately $12,000 and $19,000, respectively. Nonperforming loans and leases include all such loans and leases that are either placed on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. The Company considers a loan to be impaired when, based on current information and events, it is probable that it will be unable to collect all amounts due (principal and interest) according to the contractual terms of the original loan agreement. At June 30, 2017, the recorded investment in loans and leases that were considered to be impaired totaled $16,998,000, which includes $12,000 in nonaccrual loans and leases and $16,986,000 in performing loans and leases. Of the total impaired loans of $16,998,000, loans totaling $9,088,000 were deemed to require no specific reserve and loans totaling $7,910,000 were deemed to require a related valuation allowance of $505,000. At December 31, 2016, the recorded investment in loans and leases that were considered to be impaired totaled $17,297,000 with a related valuation allowance of $421,000. At June 30, 2017 and December 31, 2016, the balance in other real estate owned (OREO) was $1,348,000. During the first and second quarters of 2017, the Company did not add any new, impair, or sell any of the OREO properties. The June 30, 2017 OREO balance of $1,348,000 consists of two properties, one of which is commercial real estate in the amount of $386,000 and the other is commercial land in the amount of $962,000. Nonperforming assets at June 30, 2017 and December 31, 2016 are summarized as follows: (dollars in thousands) June 30, 2017 December 31, 2016 Nonaccrual loans and leases that are current to terms (less than 30 days past due) $ 12 $ 19 Nonaccrual loans and leases that are past due Loans and leases past due 90 days and accruing interest Other real estate owned 1,348 1,348 Total nonperforming assets $ 1,360 $ 1,367 Nonperforming loans and leases to total loans and leases 0.00 % 0.01 % Total nonperforming assets to total assets 0.21 % 0.21 % Impaired loans and leases as of and for the periods ended June 30, 2017 and December 31, 2016 are summarized as follows: (dollars in thousands) As of June 30, 2017 As of December 31, 2016 Recorded Unpaid Principal Balance Related Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate-commercial $ 8,757 $ 9,337 $ $ 10,910 $ 11,540 $ Real estate-residential 331 417 334 421 Subtotal $ 9,088 $ 9,754 $ $ 11,244 $ 11,961 $ With an allowance recorded: Commercial $ $ $ $ 157 $ 157 $ 11 Real estate-commercial 4,975 5,064 317 3,244 3,336 246 Real estate-multi-family 478 478 20 482 482 2 Real estate-residential 2,106 2,106 140 1,813 1,813 133 Agriculture 351 351 28 357 357 29 Subtotal $ 7,910 $ 7,999 $ 505 $ 6,053 $ 6,145 $ 421 Total: Commercial $ $ $ $ 157 $ 157 $ 11 Real estate-commercial 13,732 14,401 317 14,154 14,876 246 Real estate-multi-family 478 478 20 482 482 2 Real estate-residential 2,437 2,523 140 2,147 2,234 133 Agriculture 351 351 28 357 357 29 $ 16,998 $ 17,753 $ 505 $ 17,297 $ 18,106 $ 421 The following table presents the average balance related to impaired loans and leases for the periods indicated (dollars in thousands): Average Recorded Investments for the three months ended Average Recorded Investments for the six months ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Commercial $ 16 $ 80 $ $ 100 Real estate-commercial 14,067 16,878 13,732 17,021 Real estate-multi-family 481 491 478 495 Real estate-residential 2,296 2,216 2,437 2,236 Agriculture 357 373 351 378 Consumer 76 77 Total $ 17,217 $ 20,114 $ 16,998 $ 20,307 The following table presents the interest income recognized on impaired loans and leases for the periods indicated (dollars in thousands): Interest Income Recognized for the three months ended Interest Income Recognized for the six months ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Commercial $ $ 2 $ 1 $ 3 Real estate-commercial 179 259 356 444 Real estate-multi-family 8 2 16 10 Real estate-residential 37 31 63 52 Agriculture 4 5 9 10 Consumer Total $ 228 $ 299 $ 445 $ 519

7. TROUBLED DEBT RESTRUCTURINGS

7. TROUBLED DEBT RESTRUCTURINGS	6 Months Ended
7. TROUBLED DEBT RESTRUCTURINGS	Jun. 30, 2017
TROUBLED DEBT RESTRUCTURINGS
TROUBLED DEBT RESTRUCTURINGS	During the three and six-month periods ended June 30, 2017 and 2016, there were no loans that were modified as troubled debt restructurings. There were no payment defaults on troubled debt restructurings within 12 months following the modification for the three-month and six-month periods ended June 30, 2017 and June 30, 2016. At June 30, 2017 and December 31, 2016, there were no unfunded commitments on those loans considered troubled debt restructures. See also Impaired Loans and Leases in Item 2.

8. ALLOWANCE FOR LOAN AND LEASE

8. ALLOWANCE FOR LOAN AND LEASE LOSSES	6 Months Ended
8. ALLOWANCE FOR LOAN AND LEASE LOSSES	Jun. 30, 2017
Schedule of Troubled Debt Restructurings on Financing Receivables (Tables)
ALLOWANCE FOR LOAN AND LEASE LOSSES	The Companys loan and lease portfolio allocated by managements internal risk ratings as of June 30, 2017 and December 31, 2016 are summarized below: June 30, 2017 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 24,647 $ 163,362 $ 66,608 $ 7,479 $ 14,864 Watch 123 24,782 478 2,373 1,463 Special mention 1,267 2,197 3,945 720 Substandard 2,719 456 Doubtful Total $ 28,756 $ 190,341 $ 71,031 $ 9,852 $ 17,503 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 297 $ 1,762 $ 972 $ 279,991 Watch 351 240 29,810 Special mention 133 8,262 Substandard 14 3,189 Doubtful Total $ 297 $ 2,113 $ 1,359 $ 321,252 December 31, 2016 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 31,733 $ 166,769 $ 68,615 $ 6,770 $ 12,773 Watch 157 21,328 4,758 2,410 1,773 Special mention 721 3,032 710 Substandard 2,763 462 Doubtful or loss Total $ 35,374 $ 191,129 $ 73,373 $ 9,180 $ 15,718 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 404 $ 1,945 $ 1,093 $ 290,102 Watch 357 316 31,099 Special mention 219 4,682 Substandard 22 3,247 Doubtful or loss Total $ 404 $ 2,302 $ 1,650 $ 329,130 The allocation of the Companys allowance for loan and lease losses and by portfolio segment and by impairment methodology are summarized below: June 30, 2017 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2017 $ 855 $ 2,050 $ 851 $ 446 $ 253 $ 1 $ 64 $ 24 $ 278 $ 4,822 Provision for loan losses 58 (12 ) (62 ) 11 15 (5 ) (8 ) 3 Loans charged-off Recoveries 3 53 3 59 Ending balance, June 30, 2017 $ 916 $ 2,091 $ 789 $ 457 $ 268 $ 1 $ 59 $ 19 $ 281 $ 4,881 Ending balance: Individually evaluated for impairment $ $ 317 $ 20 $ $ 140 $ $ 28 $ $ $ 505 Ending balance: Collectively evaluated for impairment $ 916 $ 1,774 $ 769 $ 457 $ 128 $ 1 $ 31 $ 19 $ 281 $ 4,376 Loans Ending balance $ 28,756 $ 190,341 $ 71,031 $ 9,852 $ 17,503 $ 297 $ 2,113 $ 1,359 $ $ 321,252 Ending balance: Individually evaluated for impairment $ $ 13,732 $ 478 $ $ 2,437 $ $ 351 $ $ $ 16,998 Ending balance: Collectively evaluated for impairment $ 28,756 $ 176,609 $ 70,553 $ 9,852 $ 15,066 $ 297 $ 1,762 $ 1,359 $ $ 304,254 Allowance for Loan and Lease Losses Beginning balance, March 31, 2017 $ 836 $ 2,107 $ 836 $ 479 $ 232 $ 1 $ 62 $ 21 $ 259 $ 4,833 Provision for loan losses 78 (60 ) (47 ) (22 ) 36 (3 ) (4 ) 22 Loans charged off Recoveries 2 44 2 48 Ending balance, June 30, 2017 $ 916 $ 2,091 $ 789 $ 457 $ 268 $ 1 $ 59 $ 19 $ 281 $ 4,881 December 31, 2016 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Ending balance: Individually evaluated for impairment $ 11 $ 246 $ 2 $ $ 133 $ $ 29 $ $ $ 421 Ending balance: Collectively evaluated for impairment $ 844 $ 1,804 $ 849 $ 446 $ 120 $ 1 $ 35 $ 24 $ 278 $ 4,401 Loans Ending balance $ 35,374 $ 191,129 $ 73,373 $ 9,180 $ 15,718 $ 404 $ 2,302 $ 1,650 $ $ 329,130 Ending balance: Individually evaluated for impairment $ 157 $ 14,154 $ 482 $ $ 2,147 $ $ 357 $ $ $ 17,297 Ending balance: Collectively evaluated for impairment $ 35,217 $ 176,975 $ 72,891 $ 9,180 $ 13,571 $ 404 $ 1,945 $ 1,650 $ $ 311,833 June 30, 2016 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2016 $ 860 $ 2,369 $ 228 $ 813 $ 319 $ 1 $ 77 $ 78 $ 230 $ 4,975 Provision for loan losses (125 ) 266 101 (88 ) (36 ) (4 ) (90 ) (24 ) Loans charged-off Recoveries 73 12 72 157 Ending balance, June 30, 2016 $ 808 $ 2,647 $ 329 $ 725 $ 283 $ 1 $ 73 $ 60 $ 206 $ 5,132 Allowance for Loan and Lease Losses Beginning balance, March 31, 2016 $ 813 $ 2,513 $ 270 $ 625 $ 298 $ 2 $ 77 $ 65 $ 419 $ 5,082 Provision for loan losses (44 ) 123 59 100 (15 ) (1 ) (4 ) (5 ) (213 ) Loans charged off Recoveries 39 11 50 Ending balance, June 30, 2016 $ 808 $ 2,647 $ 329 $ 725 $ 283 $ 1 $ 73 $ 60 $ 206 $ 5,132 The Companys aging analysis of the loan and lease portfolio at June 30, 2017 and December 31, 2016 are summarized below: June 30, 2017 (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Past Due Greater Than 90 Days Total Past Due Current Total Loans Past Due Greater Than 90 Days and Accruing Nonaccrual Commercial: Commercial $ $ $ $ $ 28,756 $ 28,756 $ Real estate: Commercial 190,341 190,341 Multi-family 71,031 71,031 Construction 9,852 9,852 Residential 17,503 17,503 Other: Leases 297 297 Agriculture 2,113 2,113 Consumer 1,359 1,359 12 Total $ $ $ $ $ 321,252 $ 321,252 $ $ 12 December 31, 2016 (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Past Due Greater Than 90 Days Total Past Due Current Total Loans Past Due Greater Than 90 Days and Accruing Nonaccrual Commercial: Commercial $ $ $ $ $ 35,374 $ 35,374 $ $ Real estate: Commercial 191,129 191,129 Multi-family 73,373 73,373 Construction 9,180 9,180 Residential 15,718 15,718 Other: Leases 404 404 Agriculture 2,302 2,302 Consumer 1,650 1,650 19 Total $ $ $ $ $ 329,130 $ 329,130 $ $ 19

9. BORROWING ARRANGEMENTS

9. BORROWING ARRANGEMENTS	6 Months Ended
9. BORROWING ARRANGEMENTS	Jun. 30, 2017
Borrowing Arrangements
BORROWING ARRANGEMENTS	At June 30, 2017, the Company had $17,000,000 of unsecured short-term borrowing arrangements with two of its correspondent banks. There were no advances under the borrowing arrangements as of June 30, 2017 or December 31, 2016. The Company has a line of credit available with the Federal Home Loan Bank of San Francisco (the FHLB) which is secured by pledged mortgage loans and investment securities. Borrowings may include overnight advances as wellas loans with terms of up to thirty years. Advances (both short-term and long-term) totaling $15,500,000 were outstanding from the FHLB atJune 30, 2017, bearing interest rates ranging from 1.01% to 1.52% and maturing between July17, 2017 and July13, 2020. Advances totaling $15,500,000 were outstanding from the FHLB at December 31, 2016, bearing interest rates ranging from 1.01% to 1.52% and maturing between May 22, 2017 and July 13, 2020. Remaining amounts available under the borrowing arrangement with the FHLB at June 30, 2017 and December 31, 2016totaled $113,515,000 and $100,187,000, respectively. In addition, the Company has a secured borrowing agreement with the Federal Reserve Bank of San Francisco. The borrowing can be secured by pledging selected loans and investment securities. Borrowings generally are short-term including overnight advances as well as loans with terms up to ninety days. Amounts available under this borrowing arrangement at June 30, 2017 and December 31, 2016 were $9,746,000 and $11,068,000, respectively. There were no advances outstanding under this borrowing arrangement as of June 30, 2017and December 31, 2016.

10. INCOME TAXES

10. INCOME TAXES	6 Months Ended
10. INCOME TAXES	Jun. 30, 2017
INCOME TAXES
INCOME TAXES	The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense (benefit) represents each entity's proportionate share of the consolidated provision for (benefit from) income taxes. The Company accounts for income taxes using the balance sheet method, under which deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On the consolidated balance sheet, net deferred tax assets are included in accrued interest receivable and other assets. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above, if applicable, is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if applicable, as a component of interest expense in the consolidated statement of income. There have been no unrecognized tax benefits or accrued interest and penalties for the three-month and six-month periods ended June 30, 2017 and 2016.

11. FAIR VALUE MEASUREMENTS

11. FAIR VALUE MEASUREMENTS	6 Months Ended
11. FAIR VALUE MEASUREMENTS	Jun. 30, 2017
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table
FAIR VALUE MEASUREMENTS	The following tables present information about the Companys assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2017 and December 31, 2016. They indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined by Level 2 inputs utilize inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Companys assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Estimated fair values are disclosed for financial instruments for which it is practicable to estimate fair value. These estimates are made at a specific point in time based on relevant market data and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering the Companys entire holdings of a particular financial instrument for sale at one time, nor do they attempt to estimate the value of anticipated future business related to the instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. The carrying amounts and estimated fair values of the Companys financial instruments are as follows (dollars in thousands): Carrying Fair Value Measurements Using: June 30, 2017 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 22,004 $ 22,004 $ $ $ 22,004 Interest-bearing deposits in banks 1,248 1,248 1,248 Available-for-sale securities 257,471 46 257,425 257,471 Held-to-maturity securities 429 462 462 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 316,146 324,882 324,882 Accrued interest receivable 1,885 1,062 823 1,885 Financial liabilities: Deposits: Noninterest-bearing $ 196,212 $ 196,212 $ $ $ 196,212 Savings 65,630 65,630 65,630 Money market 131,998 131,998 131,998 NOW accounts 63,236 63,236 63,236 Time Deposits 80,804 81,157 81,157 Short-term borrowings 2,000 2,000 2,000 Long-term borrowings 13,500 13,433 13,433 Accrued interest payable 42 42 42 Carrying Fair Value Measurements Using: December 31, 2016 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 27,589 $ 27,589 $ $ $ 28,589 Interest-bearing deposits in banks 999 999 999 Available-for-sale securities 254,020 60 253,960 254,020 Held-to-maturity securities 483 521 521 FHLB stock 3,779 N/A N/A N/A N/A Net loans and leases: 324,086 329,110 329,110 Accrued interest receivable 1,824 937 887 1,824 Financial liabilities: Deposits: Noninterest-bearing $ 201,113 $ 201,113 $ $ $ 201,113 Savings 64,740 64,740 64,740 Money market 131,342 131,342 131,342 NOW accounts 64,652 64,652 64,652 Time Deposits 82,959 83,720 83,720 Short-term borrowings 3,500 3,500 3,500 Long-term borrowings 12.000 12,110 12,110 Accrued interest payable 62 62 62 Because no market exists for a significant portion of the Companys financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. The following methods and assumptions were used by the Company to estimate the fair values of its financial instruments at June 30, 2017 and December 31, 2016: Cash and due from banks Interest-bearing deposits in banks Investment securities FHLB stock Loans and leases Deposits Short-term and long-term borrowings Accrued interest receivable and payable Off-balance sheet instruments Assets and liabilities measured at fair value on a recurring and non-recurring basis along with any related gain or loss recognized in the income statement due to fair value changes are presented in the following table: Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) June 30, 2017 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Entities $ 228,265 $ $ 228,265 $ $ Obligations of states and political subdivisions 22,525 22,525 Corporate bonds 6,589 6,589 Corporate stock 92 46 46 Total recurring $ 257,471 $ 46 $ 257,425 $ $ Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 3,499 $ $ $ 3,499 $ Residential 332 332 Other real estate owned Commercial 386 386 Land 962 962 Total nonrecurring $ 5,179 $ $ $ 5,179 $ Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2016 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Entities $ 229,785 $ $ 229,785 $ $ Corporate Debt securities 1,519 1,519 Obligations of states and political subdivisions 22,612 22,612 Corporate stock 104 60 44 Total recurring $ 254,020 $ 60 $ 253,960 $ $ Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 3,535 $ $ $ 3,535 $ Residential 334 334 Other real estate owned Commercial 386 386 (25 ) Land 962 962 173 There were no significant transfers between Levels 1 and 2 during the three-month and six-month periods ended June 30, 2017 or the twelve months ended December 31, 2016. The following methods were used to estimate the fair value of each class of financial instrument above: Available-for-sale securities Impaired loans Other real estate owned

12. RECENTLY ISSUED ACCOUNTING

12. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	6 Months Ended
12. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	Jun. 30, 2017
Recently Issued Accounting Pronouncements
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	In May 2014, the Financial Accounting Standards Board (the FASB) and the International Accounting Standards Board (the IASB) jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards (IFRS). Previous revenue recognition guidance in GAAP consisted of broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) remove inconsistencies and weaknesses in revenue requirements; (2) provide a more robust framework for addressing revenue issues; (3) improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) provide more useful information to users of financial statements through improved disclosure requirements; and (5) simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. Revenue from Contracts with Customers - Deferral of the Effective Date Principal versus Agent Considerations (Reporting Revenue Gross versus Net), Identifying Performance Obligations and Licensing, Narrow-Scope Improvements and Practical Expedients, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU No. 2016-02, Leases. . In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. In March of 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.

2. STOCK-BASED COMPENSATION (Ta

2. STOCK-BASED COMPENSATION (Tables)	6 Months Ended
2. STOCK-BASED COMPENSATION (Tables)	Jun. 30, 2017
STOCK BASED COMPENSATION. (Tables)
Schedule of Share-based Compensation, Stock Options, Activity	Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at January 1, 2017 186,023 $ 12.92 3.7 years $ 741 Awarded Exercised (7,095 ) 8.50 Expired, forfeited or cancelled (38,333 ) 21.70 Outstanding at June 30, 2017 140,595 $ 10.42 4.2 years $ 629 Vested at June 30, 2017 111,648 $ 10.73 3.4 years $ 477 Non-vested at June 30, 2017 28,947 $ 9.24 7.4 years $ 153
Schedule of Nonvested Share Activity	Restricted Stock Shares Weighted Average Award Date Fair Value Nonvested at January 1, 2017 71,824 $ 9.69 Awarded 24,982 14.65 Less: Vested 14,387 9.76 Less: Expired, forfeited or cancelled 2,949 10.01 Nonvested at June 30, 2017 79,474 $ 11.22

5. INVESTMENT SECURITIES (Table

5. INVESTMENT SECURITIES (Tables)	6 Months Ended
5. INVESTMENT SECURITIES (Tables)	Jun. 30, 2017
INVESTMENTS SECURITIES (Tables)
Available-for-sale Securities	June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 227,252 $ 2,078 $ (1,065 ) $ 228,265 Obligations of states and political subdivisions 22,032 664 (171 ) 22,525 Corporate bonds 6,489 113 (13 ) 6,589 Equity securities: Corporate stock 51 41 92 $ 255,824 $ 2,896 $ (1,249 ) $ 257,471 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 229,118 $ 2,150 $ (1,483 ) $ 229,785 Obligations of states and political subdivisions 22,436 559 (383 ) 22,612 Corporate bonds 1,501 18 1,519 Equity securities: Corporate stock 49 55 104 $ 253,104 $ 2,782 $ (1,866 ) $ 254,020
Held-to-maturity Securities	June 30, 2017 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 429 $ 33 $ $ 462 December 31, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Debt securities: U.S. Government Agencies and Sponsored Entities $ 483 $ 38 $ $ 521
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	June 30, 2017 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: U.S. Government Agencies and Sponsored Entities $ 101,497 $ (1,023 ) 4,817 (42 ) $ 106,314 $ (1,065 ) Obligations of states and political subdivisions 4,646 (130 ) 985 (41 ) 5,631 (171 ) Corporate bonds 1,976 (13 ) 1,976 (13 ) $ 108,119 $ (1,166 ) $ 5,802 $ (83 ) $ 113,921 $ (1,249 ) December 31, 2016 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Debt securities: US Government Agencies and Sponsored Entities $ 111,870 $ (1,415 ) $ 5,010 $ (68 ) $ 116,880 $ (1,483 ) Obligations of states and political subdivisions 8,319 (383 ) 8,319 (383 ) $ 120,189 $ (1,798 ) $ 5,010 $ (68 ) $ 125,199 $ (1,866 )
Available-for-sale Securities, Debt Maturities, Basis of Allocation	Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Within one year $ $ After one year through five years 4,974 5,026 After five years through ten years 18,268 18,839 After ten years 5,279 5,249 28,521 29,114 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Entities 227,252 228,265 $ 429 $ 462 Corporate stock 51 92 $ 255,824 $ 257,471 $ 429 $ 462

6. IMPAIRED AND NONPERFORMING22

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Tables)	6 Months Ended
	Jun. 30, 2017
Impaired And Nonperforming Loans And Leases And Other Real Estate Owned Tables
Schedule of Nonperforming loans and leases and other assets and OREO	(dollars in thousands) June 30, 2017 December 31, 2016 Nonaccrual loans and leases that are current to terms (less than 30 days past due) $ 12 $ 19 Nonaccrual loans and leases that are past due Loans and leases past due 90 days and accruing interest Other real estate owned 1,348 1,348 Total nonperforming assets $ 1,360 $ 1,367 Nonperforming loans and leases to total loans and leases 0.00 % 0.01 % Total nonperforming assets to total assets 0.21 % 0.21 %
Schedule of Impaired Financing Receivables	(dollars in thousands) As of June 30, 2017 As of December 31, 2016 Recorded Unpaid Principal Balance Related Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate-commercial $ 8,757 $ 9,337 $ $ 10,910 $ 11,540 $ Real estate-residential 331 417 334 421 Subtotal $ 9,088 $ 9,754 $ $ 11,244 $ 11,961 $ With an allowance recorded: Commercial $ $ $ $ 157 $ 157 $ 11 Real estate-commercial 4,975 5,064 317 3,244 3,336 246 Real estate-multi-family 478 478 20 482 482 2 Real estate-residential 2,106 2,106 140 1,813 1,813 133 Agriculture 351 351 28 357 357 29 Subtotal $ 7,910 $ 7,999 $ 505 $ 6,053 $ 6,145 $ 421 Total: Commercial $ $ $ $ 157 $ 157 $ 11 Real estate-commercial 13,732 14,401 317 14,154 14,876 246 Real estate-multi-family 478 478 20 482 482 2 Real estate-residential 2,437 2,523 140 2,147 2,234 133 Agriculture 351 351 28 357 357 29 $ 16,998 $ 17,753 $ 505 $ 17,297 $ 18,106 $ 421
Schedule of Average Balance Recorded to Imapired Loans and Leases	Average Recorded Investments for the three months ended Average Recorded Investments for the six months ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Commercial $ 16 $ 80 $ $ 100 Real estate-commercial 14,067 16,878 13,732 17,021 Real estate-multi-family 481 491 478 495 Real estate-residential 2,296 2,216 2,437 2,236 Agriculture 357 373 351 378 Consumer 76 77 Total $ 17,217 $ 20,114 $ 16,998 $ 20,307
Schedule of interest income recognized on impaired loans and leases	Interest Income Recognized for the three months ended Interest Income Recognized for the six months ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Commercial $ $ 2 $ 1 $ 3 Real estate-commercial 179 259 356 444 Real estate-multi-family 8 2 16 10 Real estate-residential 37 31 63 52 Agriculture 4 5 9 10 Consumer Total $ 228 $ 299 $ 445 $ 519

8. ALLOWANCE FOR LOAN AND LEA23

8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	6 Months Ended
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	Jun. 30, 2017
Loans And Leases And Allowance For Loan And Lease Losses Tables
Schedule Of Recorded Investment Evaluated Based On Internal Risk Ratings	June 30, 2017 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 24,647 $ 163,362 $ 66,608 $ 7,479 $ 14,864 Watch 123 24,782 478 2,373 1,463 Special mention 1,267 2,197 3,945 720 Substandard 2,719 456 Doubtful Total $ 28,756 $ 190,341 $ 71,031 $ 9,852 $ 17,503 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 297 $ 1,762 $ 972 $ 279,991 Watch 351 240 29,810 Special mention 133 8,262 Substandard 14 3,189 Doubtful Total $ 297 $ 2,113 $ 1,359 $ 321,252 December 31, 2016 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 31,733 $ 166,769 $ 68,615 $ 6,770 $ 12,773 Watch 157 21,328 4,758 2,410 1,773 Special mention 721 3,032 710 Substandard 2,763 462 Doubtful or loss Total $ 35,374 $ 191,129 $ 73,373 $ 9,180 $ 15,718 Credit Risk Profile by Internally Assigned Grade Other Credit Exposure Leases Agriculture Consumer Total Grade: Pass $ 404 $ 1,945 $ 1,093 $ 290,102 Watch 357 316 31,099 Special mention 219 4,682 Substandard 22 3,247 Doubtful or loss Total $ 404 $ 2,302 $ 1,650 $ 329,130
Summary Of Analysis Of Allowance For Loan Losses	June 30, 2017 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2017 $ 855 $ 2,050 $ 851 $ 446 $ 253 $ 1 $ 64 $ 24 $ 278 $ 4,822 Provision for loan losses 58 (12 ) (62 ) 11 15 (5 ) (8 ) 3 Loans charged-off Recoveries 3 53 3 59 Ending balance, June 30, 2017 $ 916 $ 2,091 $ 789 $ 457 $ 268 $ 1 $ 59 $ 19 $ 281 $ 4,881 Ending balance: Individually evaluated for impairment $ $ 317 $ 20 $ $ 140 $ $ 28 $ $ $ 505 Ending balance: Collectively evaluated for impairment $ 916 $ 1,774 $ 769 $ 457 $ 128 $ 1 $ 31 $ 19 $ 281 $ 4,376 Loans Ending balance $ 28,756 $ 190,341 $ 71,031 $ 9,852 $ 17,503 $ 297 $ 2,113 $ 1,359 $ $ 321,252 Ending balance: Individually evaluated for impairment $ $ 13,732 $ 478 $ $ 2,437 $ $ 351 $ $ $ 16,998 Ending balance: Collectively evaluated for impairment $ 28,756 $ 176,609 $ 70,553 $ 9,852 $ 15,066 $ 297 $ 1,762 $ 1,359 $ $ 304,254 Allowance for Loan and Lease Losses Beginning balance, March 31, 2017 $ 836 $ 2,107 $ 836 $ 479 $ 232 $ 1 $ 62 $ 21 $ 259 $ 4,833 Provision for loan losses 78 (60 ) (47 ) (22 ) 36 (3 ) (4 ) 22 Loans charged off Recoveries 2 44 2 48 Ending balance, June 30, 2017 $ 916 $ 2,091 $ 789 $ 457 $ 268 $ 1 $ 59 $ 19 $ 281 $ 4,881 December 31, 2016 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Ending balance: Individually evaluated for impairment $ 11 $ 246 $ 2 $ $ 133 $ $ 29 $ $ $ 421 Ending balance: Collectively evaluated for impairment $ 844 $ 1,804 $ 849 $ 446 $ 120 $ 1 $ 35 $ 24 $ 278 $ 4,401 Loans Ending balance $ 35,374 $ 191,129 $ 73,373 $ 9,180 $ 15,718 $ 404 $ 2,302 $ 1,650 $ $ 329,130 Ending balance: Individually evaluated for impairment $ 157 $ 14,154 $ 482 $ $ 2,147 $ $ 357 $ $ $ 17,297 Ending balance: Collectively evaluated for impairment $ 35,217 $ 176,975 $ 72,891 $ 9,180 $ 13,571 $ 404 $ 1,945 $ 1,650 $ $ 311,833 June 30, 2016 (dollars in thousands) Real Estate Other Commercial Commercial Multi-Family Construction Residential Leases Agriculture Consumer Unallocated Total Allowance for Loan and Lease Losses Beginning balance, January 1, 2016 $ 860 $ 2,369 $ 228 $ 813 $ 319 $ 1 $ 77 $ 78 $ 230 $ 4,975 Provision for loan losses (125 ) 266 101 (88 ) (36 ) (4 ) (90 ) (24 ) Loans charged-off Recoveries 73 12 72 157 Ending balance, June 30, 2016 $ 808 $ 2,647 $ 329 $ 725 $ 283 $ 1 $ 73 $ 60 $ 206 $ 5,132 Allowance for Loan and Lease Losses Beginning balance, March 31, 2016 $ 813 $ 2,513 $ 270 $ 625 $ 298 $ 2 $ 77 $ 65 $ 419 $ 5,082 Provision for loan losses (44 ) 123 59 100 (15 ) (1 ) (4 ) (5 ) (213 ) Loans charged off Recoveries 39 11 50 Ending balance, June 30, 2016 $ 808 $ 2,647 $ 329 $ 725 $ 283 $ 1 $ 73 $ 60 $ 206 $ 5,132
Summary Of Activity in Allowance For Loan Losses By Loan Class	June 30, 2017 (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Past Due Greater Than 90 Days Total Past Due Current Total Loans Past Due Greater Than 90 Days and Accruing Nonaccrual Commercial: Commercial $ $ $ $ $ 28,756 $ 28,756 $ Real estate: Commercial 190,341 190,341 Multi-family 71,031 71,031 Construction 9,852 9,852 Residential 17,503 17,503 Other: Leases 297 297 Agriculture 2,113 2,113 Consumer 1,359 1,359 12 Total $ $ $ $ $ 321,252 $ 321,252 $ $ 12 December 31, 2016 (dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Past Due Greater Than 90 Days Total Past Due Current Total Loans Past Due Greater Than 90 Days and Accruing Nonaccrual Commercial: Commercial $ $ $ $ $ 35,374 $ 35,374 $ $ Real estate: Commercial 191,129 191,129 Multi-family 73,373 73,373 Construction 9,180 9,180 Residential 15,718 15,718 Other: Leases 404 404 Agriculture 2,302 2,302 Consumer 1,650 1,650 19 Total $ $ $ $ $ 329,130 $ 329,130 $ $ 19

11. FAIR VALUE MEASUREMENTS (Ta

11. FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
11. FAIR VALUE MEASUREMENTS (Tables)	Jun. 30, 2017
Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table
Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings	Carrying Fair Value Measurements Using: June 30, 2017 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 22,004 $ 22,004 $ $ $ 22,004 Interest-bearing deposits in banks 1,248 1,248 1,248 Available-for-sale securities 257,471 46 257,425 257,471 Held-to-maturity securities 429 462 462 FHLB stock 3,932 N/A N/A N/A N/A Net loans and leases: 316,146 324,882 324,882 Accrued interest receivable 1,885 1,062 823 1,885 Financial liabilities: Deposits: Noninterest-bearing $ 196,212 $ 196,212 $ $ $ 196,212 Savings 65,630 65,630 65,630 Money market 131,998 131,998 131,998 NOW accounts 63,236 63,236 63,236 Time Deposits 80,804 81,157 81,157 Short-term borrowings 2,000 2,000 2,000 Long-term borrowings 13,500 13,433 13,433 Accrued interest payable 42 42 42 Carrying Fair Value Measurements Using: December 31, 2016 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 27,589 $ 27,589 $ $ $ 28,589 Interest-bearing deposits in banks 999 999 999 Available-for-sale securities 254,020 60 253,960 254,020 Held-to-maturity securities 483 521 521 FHLB stock 3,779 N/A N/A N/A N/A Net loans and leases: 324,086 329,110 329,110 Accrued interest receivable 1,824 937 887 1,824 Financial liabilities: Deposits: Noninterest-bearing $ 201,113 $ 201,113 $ $ $ 201,113 Savings 64,740 64,740 64,740 Money market 131,342 131,342 131,342 NOW accounts 64,652 64,652 64,652 Time Deposits 82,959 83,720 83,720 Short-term borrowings 3,500 3,500 3,500 Long-term borrowings 12.000 12,110 12,110 Accrued interest payable 62 62 62
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques	Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) June 30, 2017 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Entities $ 228,265 $ $ 228,265 $ $ Obligations of states and political subdivisions 22,525 22,525 Corporate bonds 6,589 6,589 Corporate stock 92 46 46 Total recurring $ 257,471 $ 46 $ 257,425 $ $ Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 3,499 $ $ $ 3,499 $ Residential 332 332 Other real estate owned Commercial 386 386 Land 962 962 Total nonrecurring $ 5,179 $ $ $ 5,179 $ Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2016 Assets and liabilities measured on a recurring basis: Available-for-sale securities: US Government Agencies and Sponsored Entities $ 229,785 $ $ 229,785 $ $ Corporate Debt securities 1,519 1,519 Obligations of states and political subdivisions 22,612 22,612 Corporate stock 104 60 44 Total recurring $ 254,020 $ 60 $ 253,960 $ $ Assets and liabilities measured on a nonrecurring basis: Impaired loans: Real estate: Commercial $ 3,535 $ $ $ 3,535 $ Residential 334 334 Other real estate owned Commercial 386 386 (25 ) Land 962 962 173

2. STOCK-BASED COMPENSATION - O

2. STOCK-BASED COMPENSATION - Option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Common Stock
Exercised	7,095	500
Options Shares
Outstanding	186,023
Granted	0
Exercised	(7,095)
Expired, forfeited or cancelled	(38,333)
Outstanding	140,595
Number of options vested	111,648
Nonvested, Shares	28,947
Weighted average exercise price, outstanding beginning	$ 12.92
Granted	0
Exercised	8.50
Expired, forfeited or cancelled	21.70
Weighted average exercise price, outstanding ending	10.42
Weighted average exercise price of vested stock options (in dollars per share)	10.73
Weighted average exercise price of nonvested stock options (in dollars per share)	$ 9.24
Weighted years to maturity outstanding beginning	3 years 8 months 12 days
Weighted years to maturity outstanding Ending	4 years 2 months 12 days
Weighted average remaining contractual term in years, vested	3 years 4 months 24 days
Weighted average remaining contractual term in years, non-vested	7 years 4 months 24 days
Aggregate Intrinsic Value, options outstanding, beginning	$ 741
Aggregate Intrinsic Value, options outstanding, ending	629
Aggregate Intrinsic Value, options vested	477
Aggregate Intrinsic Value, options non-vested	$ 153

2. STOCK-BASED COMPENSATION - R

2. STOCK-BASED COMPENSATION - Restricted Stock (Details 1) - Restricted stock	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Restricted Stock Nonvested beginning balance \| shares	71,824
Granted \| shares	24,982
Less: Vested \| shares	14,387
Less: Expired, forfeited or cancelled \| shares	2,949
Restricted Stock Nonvested ending balance \| shares	79,474
Weighted Average Grant Date Fair Value Nonvested beginning balance \| $ / shares	$ 9.69
Granted \| $ / shares	14.65
Less: Vested \| $ / shares	9.76
Less: Expired, forfeited or cancelled \| $ / shares	10.01
Weighted Average Grant Date Fair Value Nonvested ending balance \| $ / shares	$ 11.22

2. STOCK-BASED COMPENSATION - E

2. STOCK-BASED COMPENSATION - Equity Plans and Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Share based compensation	$ 201	$ 167
Tax benefit of equity compensation expense	37	$ 29
Compensation cost related to nonvested stock option awards not yet recorded	89
Compensation cost related to restricted stock awards not yet recorded	532
Intrinsic value of nonvested restricted stock	$ 1,243
Intrinsic value used for stock options and restricted stock	$ 14.51
Restricted stock
Period for recognition	4 years 10 months 24 days
Weighted average costs is expected period	1 year 7 months 6 days
Options Shares
Stock options outstanding under Equity Incentive Plan	140,595		186,023
Period for recognition	3 years
Weighted average costs is expected period	1 year 8 months 12 days
2010 Plan
Authorized shares that remain available for issuance under the 2010 Plan	1,362,437

3. COMMITMENTS AND CONTINGENC28

3. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Standby letters of credit
Commitments	$ 191	$ 238
Loan commitments
Commitments	$ 10,658	$ 19,728

4. EARNINGS PER SHARE COMPUTA29

4. EARNINGS PER SHARE COMPUTATION (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share Computation Details Narrative
Weighted average common shares outstanding			6,717,456	6,906,620
Dilutive effect of stock based awards	81,372	28,643	85,801	26,818
Antidilutive stock option excluded from earnings per share			32,448	105,844

5. INVESTMENT SECURITIES - Amor

5. INVESTMENT SECURITIES - Amortized Cost, Unrealized Gains, Unrealized Losses And Estimated Fair Values (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Available for sale securities, Amortized Cost	$ 255,824	$ 253,104
Available for sale securities, Unrealized Gains	2,896	2,782
Available for sale securities, Unrealized Losses	(1,249)	(1,866)
Available for sale securities, Estimated Fair Value	257,471	254,020
Held-to-Maturity Debt securities Amortized Cost	429
Held-to-Maturity Debt securities Estimated Fair Value	462	521
US Government Agencies and Sponsored Agencies
Available for sale securities, Amortized Cost	227,252	229,118
Available for sale securities, Unrealized Gains	2,078	2,150
Available for sale securities, Unrealized Losses	(1,065)	(1,483)
Available for sale securities, Estimated Fair Value	228,265	229,785
Held-to-Maturity Debt securities Amortized Cost	429	483
Held-to-Maturity Debt securities Gross Unrealized Gains	35	38
Held-to-Maturity Debt securities Gross Unrealized Losses	0	0
Held-to-Maturity Debt securities Estimated Fair Value	462	521
Obligations of states and political subdivisions
Available for sale securities, Amortized Cost	6,489	22,436
Available for sale securities, Unrealized Gains	113	559
Available for sale securities, Unrealized Losses	(13)	(383)
Available for sale securities, Estimated Fair Value	6,589	22,612
Corporate Bonds
Available for sale securities, Amortized Cost	22,032	1,501
Available for sale securities, Unrealized Gains	664	18
Available for sale securities, Unrealized Losses	(171)	0
Available for sale securities, Estimated Fair Value	22,525	1,519
Equity Securities - Corporate Stock
Available for sale securities, Amortized Cost	51	49
Available for sale securities, Unrealized Gains	41	55
Available for sale securities, Unrealized Losses	0	0
Available for sale securities, Estimated Fair Value	92	$ 104
Held-to-Maturity Debt securities Amortized Cost	0
Held-to-Maturity Debt securities Estimated Fair Value	$ 0

5. INVESTMENT SECURITIES - Inve

5. INVESTMENT SECURITIES - Investment securities with unrealized losses (Details 1) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Less than 12 months, Estimated Fair Value	$ 108,119	$ 120,189
Less than 12 months, Unrealized Loss	(1,166)	(1,798)
12 months or more, Estimated Fair Value	5,802	5,010
12 months or more, Unrealized Loss	(83)	(68)
Total Estimated Fair Value	112,679	125,199
Total Unrealized Loss	(1,249)	(1,866)
US Government Agencies and Sponsored Agencies
Less than 12 months, Estimated Fair Value	101,497	111,870
Less than 12 months, Unrealized Loss	(1,023)	(1,415)
12 months or more, Estimated Fair Value	4,817	5,010
12 months or more, Unrealized Loss	(42)	(68)
Total Estimated Fair Value	106,249	116,880
Total Unrealized Loss	(1,065)	(1,483)
Obligations of states and political subdivisions
Less than 12 months, Estimated Fair Value	6,430	8,319
Less than 12 months, Unrealized Loss	(13)	(383)
12 months or more, Estimated Fair Value	985	0
12 months or more, Unrealized Loss	(41)	0
Total Estimated Fair Value	6,430	8,319
Total Unrealized Loss	$ (171)	$ (383)

5. INVESTMENT SECURITIES - Am32

5. INVESTMENT SECURITIES - Amortized cost and estimated fair values (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Within one year, Amortized Cost	$ 0
After one through five years, Amortized Cost	4,974
After five through ten years, Amortized Cost	18,268
After ten years, Amortized Cost	5,279
Total Amortized Cost	28,521
Within one year, Estimated Fair Value	0
After one through five years, Estimated Fair Value	5,026
After five through ten years, Estimated Fair Value	18,839
After ten years, Estimated Fair Value	5,249
Total Estimated Fair Value	29,114
Equity securities, Amortized Cost	255,824
Equity securities, Estimated Fair Value	257,471
Held-to-Maturity Amortized Cost	429
Held-to-Maturity Estimated Fair Value	462	$ 521
Equity Securities - Corporate Stock
Equity securities, Amortized Cost	51
Equity securities, Estimated Fair Value	92
Held-to-Maturity Amortized Cost	0
Held-to-Maturity Estimated Fair Value	0
US Government Agencies and Sponsored Agencies
Equity securities, Amortized Cost	227,252
Equity securities, Estimated Fair Value	228,265
Held-to-Maturity Amortized Cost	429	483
Held-to-Maturity Estimated Fair Value	$ 462	$ 521

6. IMPAIRED AND NONPERFORMING33

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Nonaccrual loans (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Total nonperforming assets	$ 1,360	$ 1,367
Nonperforming loans and leases to total loans and leases	0.01%	0.01%
Total nonperforming assets to total assets	0.21%	0.21%
Loans and leases past due 90 days and accruing interest
Total nonperforming assets	$ 0	$ 0
Nonaccrual loans and leases that are current to terms (less than 30 days past due)
Total nonperforming assets	12	19
Other real estate owned
Total nonperforming assets	1,348	1,348
Nonaccrual loans and leases that are past due
Total nonperforming assets	$ 0	$ 0

6. IMPAIRED AND NONPERFORMING34

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Nonperforming assets (Details 1) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
With no related allowance recorded: Recorded Investment	$ 9,088	$ 11,244
With no related allowance recorded: Unpaid Principal Balance	9,754	11,961
With no related allowance recorded: Related Allowance	0	0
With an allowance recorded: Recorded Investment	7,910	6,053
With an allowance recorded: Unpaid Principal Balance	7,999	6,145
With an allowance recorded: Related Allowance	505	421
Recorded Investment	16,998	17,297
Unpaid Principal Balance	17,753	18,106
Related Allowance	505	421
Real estate-commercial
With no related allowance recorded: Recorded Investment	8,757	334
With no related allowance recorded: Unpaid Principal Balance	9,337	421
With no related allowance recorded: Related Allowance	0	0
With an allowance recorded: Recorded Investment	4,975	3,244
With an allowance recorded: Unpaid Principal Balance	5,064	3,336
With an allowance recorded: Related Allowance	317	246
Recorded Investment	13,732	14,154
Unpaid Principal Balance	14,401	14,876
Related Allowance	317	246
Real estate-multi-family
With an allowance recorded: Recorded Investment	478	482
With an allowance recorded: Unpaid Principal Balance	478	482
With an allowance recorded: Related Allowance	20	2
Recorded Investment	478	482
Unpaid Principal Balance	478	482
Related Allowance	20	2
Real Estate Residential
With no related allowance recorded: Recorded Investment	331
With no related allowance recorded: Unpaid Principal Balance	417
With no related allowance recorded: Related Allowance	0
With an allowance recorded: Recorded Investment	2,106	1,813
With an allowance recorded: Unpaid Principal Balance	2,106	1,813
With an allowance recorded: Related Allowance	140	133
Recorded Investment	2,437	2,147
Unpaid Principal Balance	2,523	2,234
Related Allowance	140	133
Commercial
With no related allowance recorded: Recorded Investment		10,910
With no related allowance recorded: Unpaid Principal Balance		11,540
With no related allowance recorded: Related Allowance		0
With an allowance recorded: Recorded Investment	0	157
With an allowance recorded: Unpaid Principal Balance	0	157
With an allowance recorded: Related Allowance	0	11
Recorded Investment	0	157
Unpaid Principal Balance	0	157
Related Allowance	0	11
Agriculture
With an allowance recorded: Recorded Investment	351	357
With an allowance recorded: Unpaid Principal Balance	351	357
With an allowance recorded: Related Allowance	28	29
Recorded Investment	351	357
Unpaid Principal Balance	351	357
Related Allowance	$ 28	$ 29

6. IMPAIRED AND NONPERFORMING35

6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED - Impaired loans and leases (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Impaired Loans and Leases	$ 17,217	$ 20,114	$ 16,998	$ 20,307
Interest income recognized on impaired loans and leases	228	299	445	519
Commercial
Impaired Loans and Leases	16	80	0	100
Interest income recognized on impaired loans and leases		2	1	3
Real estate-commercial
Impaired Loans and Leases	14,067	16,878	13,732	17,021
Interest income recognized on impaired loans and leases	179	259	356	444
Real estate-multi-family
Impaired Loans and Leases	481	491	478	495
Interest income recognized on impaired loans and leases	8	2	16	10
Real Estate Residential
Impaired Loans and Leases	2,296	2,216	2,437	2,236
Interest income recognized on impaired loans and leases	37	31	63	52
Agriculture
Impaired Loans and Leases	357	373	351	378
Interest income recognized on impaired loans and leases	4	5	9	10
Consumer
Impaired Loans and Leases	0	76	0	77
Interest income recognized on impaired loans and leases	$ 0	$ 0	$ 0	$ 0

8. LOANS AND LEASES AND ALLOWAN

8. LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES - Internal risk ratings (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Total	$ 321,252	$ 329,130
Pass
Total	279,991	290,102
Watch
Total	29,810	31,099
Special mention
Total	8,262	4,682
Substandard
Total	3,189	3,247
Doubtful or loss
Total	0	0
Commercial Loan [Member] \| Pass
Total	24,647	31,733
Commercial Loan [Member] \| Watch
Total	123	157
Commercial Loan [Member] \| Special mention
Total	1,267	721
Commercial Loan [Member] \| Substandard
Total	2,719	2,763
Commercial Loan [Member] \| Doubtful or loss
Total	0	0
Commercial
Total	28,756	35,374
Real estate-commercial
Total	190,341	191,129
Real estate-commercial \| Pass
Total	163,362	166,769
Real estate-commercial \| Watch
Total	24,782	21,328
Real estate-commercial \| Special mention
Total	2,197	3,032
Real estate-commercial \| Substandard
Total	0	0
Real estate-commercial \| Doubtful or loss
Total	0	0
Real estate-multi-family
Total	71,031	73,373
Real estate-multi-family \| Pass
Total	66,608	68,615
Real estate-multi-family \| Watch
Total	478	4,758
Real estate-multi-family \| Special mention
Total	3,945	0
Real estate-multi-family \| Substandard
Total	0	0
Real estate-multi-family \| Doubtful or loss
Total	0	0
Real Estate Construction \| Pass
Total	7,479	6,770
Real Estate Construction \| Watch
Total	2,373	2,410
Real Estate Construction \| Special mention
Total	0	0
Real Estate Construction \| Substandard
Total	0	0
Real Estate Construction \| Doubtful or loss
Total	0	0
Real estate-construction
Total	9,852	9,180
Residential Real Estate [Member] \| Pass
Total	14,864	12,773
Residential Real Estate [Member] \| Watch
Total	1,463	1,773
Residential Real Estate [Member] \| Special mention
Total	720	710
Residential Real Estate [Member] \| Substandard
Total	456	462
Residential Real Estate [Member] \| Doubtful or loss
Total	0	0
Real Estate Residential
Total	17,503	15,718
Leases
Total	297	404
Leases \| Pass
Total	297	404
Leases \| Watch
Total	0	0
Leases \| Special mention
Total	0	0
Leases \| Substandard
Total	0	0
Leases \| Doubtful or loss
Total	0	0
Agriculture
Total	2,113	2,302
Agriculture \| Pass
Total	1,762	1,945
Agriculture \| Watch
Total	351	357
Agriculture \| Special mention
Total	0	0
Agriculture \| Substandard
Total	0	0
Agriculture \| Doubtful or loss
Total	0	0
Consumer Loan [Member] \| Pass
Total	972	1,093
Consumer Loan [Member] \| Watch
Total	240	316
Consumer Loan [Member] \| Special mention
Total	133	219
Consumer Loan [Member] \| Substandard
Total	14	22
Consumer Loan [Member] \| Doubtful or loss
Total	0	0
Consumer
Total	1,359	1,650
Unallocated
Total	$ 0	$ 0

8. LOANS AND LEASES AND ALLOW37

8. LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES - Allowance Roll-forward (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Allowance for Loan and Lease Losses Beginning balance	$ 4,833	$ 5,082	$ 4,822	$ 4,975
Provision for loan losses	0	0	0	0
Loans charged off	0	0	0	0
Recoveries	48	50	59	157
Allowance for Loan and Lease Losses Ending balance	4,881	5,132	4,881	5,132
Allowance related to: Loans individually evaluated for impairment	55		55		$ 421
Allowance related to: Loans collectively evaluated for impairment	4,376		4,376		4,401
Loans	321,252		321,252		329,130
Loans individually evaluated for impairment	16,998		16,998		17,297
Loans collectively evaluated for impairment	304,254		304,254		311,833
Commercial
Allowance for Loan and Lease Losses Beginning balance	836	813	855	860
Provision for loan losses	78	(44)	58	(125)
Loans charged off	0	0	0	0
Recoveries	2	39	3	73
Allowance for Loan and Lease Losses Ending balance	916	808	916	808
Allowance related to: Loans individually evaluated for impairment	0		0		11
Allowance related to: Loans collectively evaluated for impairment	916		916		844
Loans	28,756		28,756		35,374
Loans individually evaluated for impairment					157
Loans collectively evaluated for impairment	28,756		28,756		35,217
Real estate-commercial
Allowance for Loan and Lease Losses Beginning balance	2,107	2,513	2,050	2,369
Provision for loan losses	(60)	123	(12)	266
Loans charged off	0	0	0	0
Recoveries	44	11	53	12
Allowance for Loan and Lease Losses Ending balance	2,091	2,647	2,091	2,647
Allowance related to: Loans individually evaluated for impairment	317		317		246
Allowance related to: Loans collectively evaluated for impairment	1,774		1,774		1,804
Loans	190,341		190,341		191,129
Loans individually evaluated for impairment	13,732		13,732		14,154
Loans collectively evaluated for impairment	176,609		176,609		176,975
Real estate-multi-family
Allowance for Loan and Lease Losses Beginning balance	836	270	851	228
Provision for loan losses	(47)	59	(62)	101
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	789	329	789	329
Allowance related to: Loans individually evaluated for impairment	20		20		2
Allowance related to: Loans collectively evaluated for impairment	769		769		849
Loans	71,031		71,031		73,373
Loans individually evaluated for impairment	478		478		482
Loans collectively evaluated for impairment	70,553		70,553		72,891
Real estate-construction
Allowance for Loan and Lease Losses Beginning balance	479	625	446	813
Provision for loan losses	(22)	100	11	(88)
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	457	725	457	725
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	457		457		446
Loans	9,852		9,852		9,180
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	9,852		9,852		9,180
Real Estate Residential
Allowance for Loan and Lease Losses Beginning balance	232	298	253	319
Provision for loan losses	36	15	15	(36)
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	268	283	268	283
Allowance related to: Loans individually evaluated for impairment	140		140		133
Allowance related to: Loans collectively evaluated for impairment	128		128		120
Loans	17,503		17,503		15,718
Loans individually evaluated for impairment	2,437		2,437		2,147
Loans collectively evaluated for impairment	15,066		15,066		13,571
Leases
Allowance for Loan and Lease Losses Beginning balance	1	2	1	1
Provision for loan losses	0	(1)	0	0
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	1	1	1	1
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	1		1		1
Loans	297		297		404
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	297		297		404
Agriculture
Allowance for Loan and Lease Losses Beginning balance	62	77	64	77
Provision for loan losses	(3)	(4)	(5)	(4)
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	59	73	59	73
Allowance related to: Loans individually evaluated for impairment	28		28		29
Allowance related to: Loans collectively evaluated for impairment	31		31		35
Loans	2,113		2,113		2,302
Loans individually evaluated for impairment	351		351		357
Loans collectively evaluated for impairment	1,762		1,762		1,945
Consumer
Allowance for Loan and Lease Losses Beginning balance	21	65	24	78
Provision for loan losses	(4)	(5)	(8)	(90)
Loans charged off	0	0	0	0
Recoveries	2	0	3	72
Allowance for Loan and Lease Losses Ending balance	19	60	19	60
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	19		19		24
Loans	1,359		1,359		1,650
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	1,359		1,359		1,650
Unallocated
Allowance for Loan and Lease Losses Beginning balance	259	419	278	230
Provision for loan losses	22	(213)	3	(24)
Loans charged off	0	0	0	0
Recoveries	0	0	0	0
Allowance for Loan and Lease Losses Ending balance	281	$ 206	281	$ 206
Allowance related to: Loans individually evaluated for impairment	0		0		0
Allowance related to: Loans collectively evaluated for impairment	281		281		278
Loans	0		0		0
Loans individually evaluated for impairment	0		0		0
Loans collectively evaluated for impairment	$ 0		$ 0		$ 0

8. LOANS AND LEASES AND ALLOW38

8. LOANS AND LEASES AND ALLOWANCE FOR LOAN AND LEASE LOSSES - Aging analysis (Details 2) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Total Past Due	$ 0	$ 0
Current	321,252	329,130
Total Loans	321,252	329,130
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	12	19
30 -59 Days Past Due
Total Past Due	0	0
60 -89 Days Past Due
Total Past Due	0	0
Past Due Greater Than 90 Days
Total Past Due	0	0
Commercial
Total Past Due	0	0
Current	28,756	35,374
Total Loans	28,756	35,374
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Commercial \| 30 -59 Days Past Due
Total Past Due	0	0
Commercial \| 60 -89 Days Past Due
Total Past Due	0	0
Commercial \| Past Due Greater Than 90 Days
Total Past Due	0	0
Real estate-commercial
Total Past Due	0	0
Current	190,341	191,129
Total Loans	190,341	191,129
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Real estate-commercial \| 30 -59 Days Past Due
Total Past Due	0	0
Real estate-commercial \| 60 -89 Days Past Due
Total Past Due	0	0
Real estate-commercial \| Past Due Greater Than 90 Days
Total Past Due	0	0
Real estate-multi-family
Total Past Due	0	0
Current	71,031	73,373
Total Loans	71,031	73,373
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Real estate-multi-family \| 30 -59 Days Past Due
Total Past Due	0	0
Real estate-multi-family \| 60 -89 Days Past Due
Total Past Due	0	0
Real estate-multi-family \| Past Due Greater Than 90 Days
Total Past Due	0	0
Real estate-construction
Total Past Due	0	0
Current	9,852	9,180
Total Loans	9,852	9,180
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Real estate-construction \| 30 -59 Days Past Due
Total Past Due	0	0
Real estate-construction \| 60 -89 Days Past Due
Total Past Due	0	0
Real estate-construction \| Past Due Greater Than 90 Days
Total Past Due	0	0
Real Estate Residential
Total Past Due	0	0
Current	17,503	15,718
Total Loans	17,503	15,718
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Real Estate Residential \| 30 -59 Days Past Due
Total Past Due	0	0
Real Estate Residential \| 60 -89 Days Past Due
Total Past Due	0	0
Real Estate Residential \| Past Due Greater Than 90 Days
Total Past Due	0	0
Leases
Total Past Due	0	0
Current	297	404
Total Loans	297	404
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Leases \| 30 -59 Days Past Due
Total Past Due	0	0
Leases \| 60 -89 Days Past Due
Total Past Due	0	0
Leases \| Past Due Greater Than 90 Days
Total Past Due	0	0
Agriculture
Total Past Due	0	0
Current	2,113	2,302
Total Loans	2,113	2,302
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	0	0
Agriculture \| 30 -59 Days Past Due
Total Past Due	0	0
Agriculture \| 60 -89 Days Past Due
Total Past Due	0	0
Agriculture \| Past Due Greater Than 90 Days
Total Past Due	0	0
Consumer
Total Past Due	0	0
Current	1,359	1,650
Total Loans	1,359	1,650
Past Due Greater Than 90 Days and Accruing	0	0
Nonaccrual	12	19
Consumer \| 30 -59 Days Past Due
Total Past Due	0	0
Consumer \| 60 -89 Days Past Due
Total Past Due	0	0
Consumer \| Past Due Greater Than 90 Days
Total Past Due	0	0
Unallocated
Total Loans	$ 0	$ 0

9. BORROWING ARRANGEMENTS (Deta

9. BORROWING ARRANGEMENTS (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Borrowing Arrangements
Unsecured short-term borrowing arrangements with two of its correspondent banks	$ 17,000
FHLB advances	$ 0	$ 0
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Minimum	1.01%	1.01%
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate, Maximum	1.52%	1.52%
Remaining amounts available under the borrowing arrangement with the FHLB	$ 113,515	$ 100,187
Secured borrowing agreement with the Federal Reserve Bank of San Francisco	$ 9,746	$ 11,068

11. FAIR VALUE MEASUREMENTS - C

11. FAIR VALUE MEASUREMENTS - Carrying amounts and estimated fair values (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Financial assets:
Cash and due from banks	$ 22,004,000	$ 27,589,000
Interest-bearing deposits in banks	1,248,000	999,000
Available-for-sale securities	257,471,000	254,020,000
Held-to-maturity securities	462,000	521,000
FHLB stock	3,932,000	3,779,000
Net loans and leases:	324,882,000	329,110,000
Accrued interest receivable	1,885,000	1,824,000
Deposits:
Noninterest-bearing	196,212,000	201,113,000
Savings	65,630,000	64,740,000
Money market	131,998,000	131,342,000
NOW accounts	63,236,000	64,652,000
Time Deposits	81,157,000	83,720,000
Short-term borrowings	2,000,000	3,500,000
Long-term borrowings	13,433,000	12,110,000
Accrued interest payable	42,000	62,000
Carrying Amount
Financial assets:
Cash and due from banks	22,004,000	27,589,000
Interest-bearing deposits in banks	1,248,000	999,000
Available-for-sale securities	257,471,000	254,020,000
Held-to-maturity securities	429,000	483,000
FHLB stock	3,932,000	3,779,000
Net loans and leases:	316,146,000	324,086,000
Accrued interest receivable	1,885,000	1,824,000
Deposits:
Noninterest-bearing	196,212,000	201,113,000
Savings	65,630,000	64,740,000
Money market	131,998,000	131,342,000
NOW accounts	63,236,000	64,652,000
Time Deposits	80,804,000	82,959,000
Short-term borrowings	2,000,000	3,500,000
Long-term borrowings	13,500,000	12,000
Accrued interest payable	42,000	62,000
Level 2
Financial assets:
Cash and due from banks	22,004,000	0
Interest-bearing deposits in banks	0	999,000
Available-for-sale securities	46,000	253,960,000
Held-to-maturity securities	0	521,000
FHLB stock	0	0
Net loans and leases:	0	0
Accrued interest receivable	0	937,000
Deposits:
Noninterest-bearing	196,212,000	0
Savings	65,630,000	0
Money market	131,998,000	0
NOW accounts	63,236,000	0
Time Deposits	0	83,720,000
Short-term borrowings	2,000,000	0
Long-term borrowings	0	12,110,000
Accrued interest payable	0	62,000
Level 1
Financial assets:
Cash and due from banks	0	27,589,000
Interest-bearing deposits in banks	1,248,000	0
Available-for-sale securities	257,425,000	60,000
Held-to-maturity securities	462,000	0
FHLB stock	0	0
Net loans and leases:	0	0
Accrued interest receivable	1,062,000	0
Deposits:
Noninterest-bearing	0	201,113,000
Savings	0	64,740,000
Money market	0	131,342,000
NOW accounts	0	64,652,000
Time Deposits	81,157,000	0
Short-term borrowings	0	3,500,000
Long-term borrowings	13,433,000	0
Accrued interest payable	42,000	0
Level 3
Financial assets:
Cash and due from banks	0	0
Interest-bearing deposits in banks	0	0
Available-for-sale securities	0	0
Held-to-maturity securities	0	0
FHLB stock	0	0
Net loans and leases:	324,882,000	329,110,000
Accrued interest receivable	823,000	887,000
Deposits:
Noninterest-bearing	0	0
Savings	0	0
Money market	0	0
NOW accounts	0	0
Time Deposits	0	0
Short-term borrowings	0	0
Long-term borrowings	0	0
Accrued interest payable	$ 0	$ 0

11. FAIR VALUE MEASUREMENTS - A

11. FAIR VALUE MEASUREMENTS - Assets and liabilities measured at fair value on recurring and non-recurring basis (Details 1) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Recurring
Impaired loans:
Total gain (losses)	$ 0	$ 0
Non Recurring
Impaired loans:
Total gain (losses)	0	148
Commercial Loan [Member]
Impaired loans:
Total gain (losses)	0	(25)
Commercial Loan [Member] \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	386	386
Commercial Loan [Member] \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Commercial Loan [Member] \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Commercial Loan [Member] \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	386	386
Real estate-commercial
Impaired loans:
Total gain (losses)	0	0
Real estate-commercial \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	3,499	3,535
Real estate-commercial \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Real estate-commercial \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Real estate-commercial \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	3,499	3,535
US Government Agencies Debt Securities [Member]
Impaired loans:
Total gain (losses)	0	0
US Government Agencies Debt Securities [Member] \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
US Government Agencies Debt Securities [Member] \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
US Government Agencies Debt Securities [Member] \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	228,265	229,785
US Government Agencies Debt Securities [Member] \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	228,265	229,785
Obligations of states and political subdivisions
Impaired loans:
Total gain (losses)	0	0
Obligations of states and political subdivisions \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Obligations of states and political subdivisions \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Obligations of states and political subdivisions \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	22,525	22,612
Obligations of states and political subdivisions \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	22,525	22,612
Corporate bonds
Impaired loans:
Total gain (losses)	0
Corporate bonds \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring	0
Corporate bonds \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring	0
Corporate bonds \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	6,589
Corporate bonds \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	6,589
Corporate stock
Impaired loans:
Total gain (losses)	0	0
Corporate stock \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Corporate stock \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring	46	60
Corporate stock \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	46	44
Corporate stock \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	92	104
Land
Impaired loans:
Total gain (losses)	0	173
Land \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	962	961
Land \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Land \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Land \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	962	961
Residential Real Estate [Member]
Impaired loans:
Total gain (losses)	0	0
Residential Real Estate [Member] \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	332	334
Residential Real Estate [Member] \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Residential Real Estate [Member] \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Residential Real Estate [Member] \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	332	334
Corporate Bonds \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring		0
Impaired loans:
Total gain (losses)		0
Corporate Bonds \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring		0
Corporate Bonds \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring		1,519
Corporate Bonds \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring		1,519
Non Recurring \| Level 3
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	5,179	5,216
Non Recurring \| Level 1
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Non Recurring \| Level 2
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	0	0
Non Recurring \| Fair Value
Impaired loans:
Assets, Fair Value Disclosure, Nonrecurring	5,179	5,216
Recurring \| Level 3
Available-for-sale securities:
Asset fair value disclosure recurring	0	0
Recurring \| Level 1
Available-for-sale securities:
Asset fair value disclosure recurring	46	60
Recurring \| Level 2
Available-for-sale securities:
Asset fair value disclosure recurring	257,425	253,960
Recurring \| Fair Value
Available-for-sale securities:
Asset fair value disclosure recurring	$ 257,471	$ 254,020