First Northern Community Bancorp (FNRN) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	FIRST NORTHERN COMMUNITY BANCORP
Entity Central Index Key	1,114,927
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,710,577
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and cash equivalents	$ 158,909	$ 200,797
Certificates of deposit	16,709	16,649
Investment securities - available-for-sale	257,805	183,351
Loans, net of allowance for loan losses of $10,295 at September 30, 2016 and $9,251 at December 31, 2015	644,246	605,853
Loans held-for-sale	2,192	351
Stock in Federal Home Loan Bank and other equity securities, at cost	4,409	3,934
Premises and equipment, net	7,430	7,011
Interest receivable and other assets	27,443	26,679
Total Assets	1,119,143	1,044,625
Liabilities:
Demand deposits	333,806	313,307
Interest-bearing transaction deposits	272,931	261,634
Savings and MMDA's	328,051	285,365
Time, under $250,000	62,930	67,855
Time, $250,000 and over	18,807	19,953
Total deposits	1,016,525	948,114
Interest payable and other liabilities	10,233	10,662
Total Liabilities	1,026,758	958,776
Stockholders' Equity:
Common stock, no par value; 16,000,000 shares authorized; 10,710,577 shares issued and outstanding at September 30, 2016 and 10,676,557 shares issued and outstanding at December 31, 2015	74,001	73,764
Additional paid-in capital	977	977
Retained earnings	17,379	11,603
Accumulated other comprehensive income (loss), net	28	(495)
Total Stockholders' Equity	92,385	85,849
Total Liabilities and Stockholders' Equity	$ 1,119,143	$ 1,044,625

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Loans, allowance for loan losses	$ 10,295	$ 9,251
Stockholder's Equity:
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	16,000,000	16,000,000
Common stock, shares issued (in shares)	10,710,577	10,676,557
Common stock, shares outstanding (in shares)	10,710,577	10,676,557

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest and dividend income:
Loans	$ 7,771	$ 7,053	$ 22,802	$ 20,038
Due from banks interest bearing accounts	215	145	676	465
Investment securities
Taxable	913	631	2,577	2,066
Non-taxable	66	68	202	198
Other earning assets	97	97	274	395
Total interest and dividend income	9,062	7,994	26,531	23,162
Interest expense:
Deposits	289	271	848	857
Total interest expense	289	271	848	857
Net interest income	8,773	7,723	25,683	22,305
Provision for loan losses	450	300	1,350	650
Net interest income after provision for loan losses	8,323	7,423	24,333	21,655
Non-interest income:
Service charges on deposit accounts	510	502	1,536	1,515
Gains on sales of other real estate owned	0	55	4	216
Gains on sales of loans held-for-sale	234	180	596	605
Investment and brokerage services income	139	154	401	449
Mortgage brokerage income	9	5	31	28
Loan servicing income (expense)	(49)	165	171	476
Fiduciary activities income	108	127	326	384
Debit card income	499	524	1,467	1,528
Gains (losses) on sales/calls of available-for-sale securities	(21)	29	(7)	29
Other income	228	155	672	580
Total non-interest income	1,657	1,896	5,197	5,810
Non-interest expenses:
Salaries and employee benefits	4,039	3,975	12,323	11,930
Occupancy and equipment	758	690	2,247	2,096
Data processing	421	410	1,180	1,257
Stationery and supplies	91	76	275	276
Advertising	90	67	233	239
Directors' fees	77	78	212	215
Other real estate owned expense	0	(24)	1	0
Impairment on other interest earning asset	0	(12)	0	(12)
Other expense	1,123	1,263	3,755	3,653
Total non-interest expenses	6,599	6,523	20,226	19,654
Income before provision for income taxes	3,381	2,796	9,304	7,811
Provision for income taxes	1,362	977	3,519	2,705
Net income	2,019	1,819	5,785	5,106
Preferred stock dividends	0	(32)	0	(96)
Net income available to common shareholders	$ 2,019	$ 1,787	$ 5,785	$ 5,010
Basic earnings per common share (in dollars per share)	$ 0.19	$ 0.17	$ 0.55	$ 0.47
Diluted earnings per common share (in dollars per share)	$ 0.19	$ 0.17	$ 0.54	$ 0.47

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$ 2,019	$ 1,819	$ 5,785	$ 5,106
Other comprehensive (loss) income, net of tax:
Unrealized holding gains (losses) arising during the period, net of tax effect of $(265) and $4 for the three months ended September 30, 2016 and September 30, 2015, respectively, and $347 and $(157) for the nine months ended September 30, 2016 and September 30, 2015, respectively	(401)	5	519	(238)
Less: reclassification adjustment due to (gains)/loss realized on sales of securities, net of tax effect of $8 and $(12) for the three months ended September 30, 2016 and September 30, 2015, respectively, and $3 and $(12) for the nine months ended September 30, 2016 and September 30, 2015, respectively	13	(17)	4	(17)
Directors' and officers' retirement plan equity adjustments, net of tax effect of $0 for the three months ended September 30, 2016 and September 30, 2015, and $0 and $(22) for the nine months ended September 30, 2016 and September 30, 2015, respectively	0	0	0	(33)
Other comprehensive (loss) income	(388)	(12)	523	(288)
Comprehensive income	$ 1,631	$ 1,807	$ 6,308	$ 4,818

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Unrealized holding gains on securities:
Unrealized holding gains (losses) arising during the period, tax	$ (265)	$ 4	$ 347	$ (157)
Reclassification adjustment due to gains realized on sales of securities, tax	8	(12)	3	(12)
Directors' and officer's retirement plan equity adjustments, tax	$ 0	$ 0	$ 0	$ (22)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Total
Balance at Dec. 31, 2014				$ 66
Net income					$ 5,106
Other comprehensive income					(288)
Balance at Sep. 30, 2015				(222)
Balance at Jun. 30, 2015				(210)
Net income					1,819
Other comprehensive income					(12)
Balance at Sep. 30, 2015				(222)
Balance at Dec. 31, 2015	$ 73,764	$ 977	$ 11,603	(495)	85,849
Balance (in shares) at Dec. 31, 2015	10,676,557
Net income			5,785		5,785
Other comprehensive income				523	523
Stock dividend adjustment	$ 4		(4)		0
Stock dividend adjustment (in shares)	505
Cash in lieu of fractional shares			(5)		(5)
Cash in lieu of fractional shares (in shares)	(101)
Stock-based compensation	$ 208				208
Common shares issued related to restricted stock grants, net of restricted stock reversals					0
Common shares issued related to restricted stock grants, net of restricted stock reversals (in shares)	25,893
Stock options exercised	$ 25				25
Stock options exercised (in shares)	7,723
Balance at Sep. 30, 2016	$ 74,001	977	17,379	28	92,385
Balance (in shares) at Sep. 30, 2016	10,710,577
Balance at Jun. 30, 2016				416
Net income					2,019
Other comprehensive income					(388)
Balance at Sep. 30, 2016	$ 74,001	$ 977	$ 17,379	$ 28	$ 92,385
Balance (in shares) at Sep. 30, 2016	10,710,577

CONDENSED CONSOLIDATED STATEME8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities
Net income	$ 5,785	$ 5,106
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	469	496
Accretion and amortization of investment securities premiums and discounts, net	2,197	1,545
Valuation adjustment on mortgage servicing rights	169	0
Decrease in deferred loan origination fees and costs, net	14	295
Provision for loan losses	1,350	650
Stock based compensation	208	173
Losses (gains) on sales/calls of available-for-sale securities	7	(29)
Gains on sales of other real estate owned	(4)	(216)
Gains on sales of loans held-for-sale	(596)	(605)
Proceeds from sales of loans held-for-sale	28,423	34,231
Originations of loans held-for-sale	(29,668)	(34,376)
Changes in assets and liabilities:
(Increase) decrease in interest receivable and other assets	(1,283)	1,229
Net (decrease) increase in interest payable and other liabilities	(429)	468
Net cash provided by operating activities	6,642	8,967
Cash Flows From Investing Activities
Proceeds from call or maturities of available-for-sale securities	31,464	4,540
Proceeds from sales of available-for-sale securities	756	17,798
Principal repayments on available-for-sale securities	25,409	19,628
Purchase of available-for-sale securities	(133,414)	(27,262)
Net (increase) decrease in certificates of deposit	(60)	923
Net increase in loans	(39,974)	(54,876)
Net increase in stock in Federal Home Loan Bank and other equity securities, at cost	(475)	0
Proceeds from sale of other real estate owned	221	1,359
Purchases of premises and equipment, net	(888)	(233)
Net cash used in investing activities	(116,961)	(38,123)
Cash Flows From Financing Activities
Net increase in deposits	68,411	74,296
Cash dividends paid in lieu of fractional shares	(5)	(6)
Stock options exercised	25	84
Cash dividends paid on preferred stock	0	(96)
Net cash provided by financing activities	68,431	74,278
Net (decrease) increase in Cash and Cash Equivalents	(41,888)	45,122
Cash and Cash Equivalents, beginning of period	200,797	216,192
Cash and Cash Equivalents, end of period	158,909	261,314
Cash paid during the period for:
Interest	819	840
Income taxes	3,940	2,525
Supplemental disclosures of non-cash investing and financing activities:
Stock dividend distributed	3,351	3,103
Transfer of loans held-for-investment to other real estate owned	217	407
Decrease in directors' & officers' retirement plan equity adjustment, net of tax	0	(33)
Unrealized holding gains (losses) on available for sale securities, net of taxes	$ 523	$ (255)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2016
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of First Northern Community Bancorp (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Articles 9 and 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of results expected for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. All material intercompany balances and transactions have been eliminated in consolidation. See the Company's Annual Report on Form 10-K for the year ended December 31, 2015 for discussion of significant accounting policies and estimates. Recently Issued Accounting Pronouncements: In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities  Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income.  Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.  Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables).  Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption of certain provisions is permitted. The Company does not expect the adoption of this update to have a significant impact on the Company's consolidated financial statements. In February 2016, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842).  A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and  A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU are effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact of this ASU on the Company's consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Reclassifications Certain reclassifications of prior period amounts have been made to conform to current classifications. The Company identified an error related to prior year classifications of the amortization of deferred loan costs in the Consolidated Statements of Income. The amortization amounts were included as components of "Salaries and Employee Benefits" and "Other Expenses", instead of a component of "Interest and Fees on Loans". Management evaluated the materiality of the error from qualitative and quantitative perspectives and concluded that the error was immaterial to the prior period financial statements taken as a whole. Consequently, the Consolidated Statement of Income contained in this Report has been revised for the three and nine months ended September 30, 2015. This change resulted in a decrease of $427,000 in "Interest and Fees and Loans" offset by decreases of $297,000 in "Salaries and employee benefits" and $130,000 in "Other expenses" for the three months ended September 30, 2015 and a decrease of $1,242,000 in "Interest and Fees and Loans" offset by decreases of $846,000 in "Salaries and employee benefits" and $396,000 in "Other expenses" for the nine months ended September 30, 2015. These changes did not affect net income, the balance sheet, cash flows or stockholders' equity for any period.

LOANS

LOANS	9 Months Ended
	Sep. 30, 2016
LOANS [Abstract]
LOANS	2. LOANS The composition of the Company's loan portfolio, by loan class, as of September 30, 2016 and December 31, 2015 was as follows: ($ in thousands) September 30, 2016 December 31, 2015 Commercial $ 127,839 $ 136,095 Commercial Real Estate 322,622 292,316 Agriculture 97,257 84,813 Residential Mortgage 41,680 43,375 Residential Construction 20,596 12,110 Consumer 43,552 45,386 653,546 614,095 Allowance for loan losses (10,295 ) (9,251 ) Net deferred origination fees and costs 995 1,009 Loans, net $ 644,246 $ 605,853 The Company manages asset quality and credit risk by maintaining diversification in its loan portfolio and through review processes that include analysis of credit requests and ongoing examination of outstanding loans and delinquencies, with particular attention to portfolio dynamics and loan mix. The Company strives to identify loans experiencing difficulty early enough to correct the problems, to record charge-offs promptly based on realistic assessments of collectability and current collateral values and to maintain an adequate allowance for loan losses at all times. Asset quality reviews of loans and other non-performing assets are administered using credit risk rating standards and criteria similar to those employed by state and federal banking regulatory agencies. Commercial loans, whether secured or unsecured, generally are made to support the short-term operations and other needs of small businesses. These loans are generally secured by the receivables, equipment, and real property of the business and are susceptible to the related risks described above. Problem commercial loans are generally identified by periodic review of financial information that may include financial statements, tax returns, and payment history of the borrower. Based on this information, the Company may decide to take any of several courses of action including demand for repayment, requiring the borrower to provide a significant principal payment and/or additional collateral or requiring similar support from guarantors. Notwithstanding, when repayment becomes unlikely based on the borrower's income and cash flow, repossession or foreclosure of the underlying collateral may become necessary. Collateral values may be determined by appraisals obtained through Bank-approved, licensed appraisers, qualified independent third parties, purchase invoices, or other appropriate means. Commercial real estate loans generally fall into two categories, owner-occupied and non-owner occupied. Loans secured by owner-occupied real estate are primarily susceptible to changes in the market conditions of the related business. This may be driven by, among other things, industry changes, geographic business changes, changes in the individual financial capacity of the business owner, general economic conditions and changes in business cycles. These same risks apply to commercial loans whether secured by equipment, receivables or other personal property or unsecured. Losses on loans secured by owner-occupied real estate, equipment, or other personal property generally are dictated by the value of underlying collateral at the time of default and liquidation of the collateral. When default is driven by issues related specifically to the business owner, collateral values tend to provide better repayment support and may result in little or no loss. Alternatively, when default is driven by more general economic conditions, underlying collateral generally has devalued more and results in larger losses due to default. Loans secured by non-owner occupied real estate are primarily susceptible to risks associated with swings in occupancy or vacancy and related shifts in lease rates, rental rates or room rates. Most often, these shifts are a result of changes in general economic or market conditions or overbuilding and resulting over-supply of space. Losses are dependent on the value of underlying collateral at the time of default. Values are generally driven by these same factors and influenced by interest rates and required rates of return as well as changes in occupancy costs. Collateral values may be determined by appraisals obtained through Bank-approved, licensed appraisers, qualified independent third parties, sales invoices, or other appropriate means. Agricultural loans, whether secured or unsecured, generally are made to producers and processors of crops and livestock. Repayment is primarily from the sale of an agricultural product or payments for services. Agricultural loans are generally secured by inventory, receivables, equipment, and real property. Agricultural loans are susceptible to changes in market demand for specific commodities. This may be exacerbated by, among other things, industry changes, changes in the individual financial capacity of the business owner, general economic conditions and changes in business cycles, as well as adverse weather conditions, including drought conditions such as those affecting California. Problem agricultural loans are generally identified by periodic review of financial information that may include financial statements, tax returns, crop budgets, payment history and crop inspections. Based on this information, the Company may decide to take any of several courses of action including demand for repayment, requiring the borrower to provide a significant principal payment and/or additional collateral or requiring similar support from guarantors. Notwithstanding, when repayment becomes unlikely based on the borrower's income and cash flow, repossession or foreclosure of the underlying collateral may become necessary. Residential mortgage loans, which are secured by real estate, are primarily susceptible to four risks: non-payment due to diminished or lost income; over-extension of credit; a lack of borrower's cash flow to sustain payments; and shortfalls in collateral value. In general, non-payment is usually due to loss of employment and follows general economic trends in the economy, particularly the upward movement in the unemployment rate, loss of collateral value and demand shifts. Residential construction loans, whether owner-occupied or non-owner occupied residential development loans, are not only susceptible to the related risks described above but the added risks of construction, including cost over-runs, mismanagement of the project, or lack of demand and market changes experienced at time of completion. Losses are primarily related to underlying collateral value and changes therein as described above. Problem construction loans are generally identified by periodic review of financial information that may include financial statements, tax returns and payment history of the borrower. Based on this information, the Company may decide to take any of several courses of action including demand for repayment, requiring the borrower to provide a significant principal payment and/or additional collateral or requiring similar support from guarantors, or repossession or foreclosure of the underlying collateral. Collateral values may be determined by appraisals obtained through Bank-approved, licensed appraisers, qualified independent third parties, purchase invoices or other appropriate means. Consumer loans, whether unsecured or secured, are primarily susceptible to four risks: non-payment due to diminished or lost income; over-extension of credit; a lack of borrower's cash flow to sustain payments; and shortfall in the collateral value. In general, non-payment is usually due to loss of employment and will follow general economic trends in the economy, particularly upward movements in the unemployment rate, loss of collateral value and demand shifts. As of September 30, 2016, approximately 49% in principal amount of the Company's loans were secured by commercial real estate, consisting primarily of loans secured by commercial properties and construction and land development loans. Approximately 6% in principal amount of the Company's loans were residential mortgage loans. Approximately 3% in principal amount of the Company's loans were residential construction loans. Approximately 15% in principal amount of the Company's loans were for agriculture and 20% in principal amount of the Company's loans were for general commercial uses including professional, retail and small businesses. Approximately 7% in principal amount of the Company's loans were consumer loans. Once a loan becomes delinquent and repayment becomes questionable, a Company collection officer will address collateral shortfalls with the borrower and attempt to obtain additional collateral or a principal payment. If this is not forthcoming and payment in full is unlikely, the Company will consider the loan to be collateral dependent and will estimate its probable loss, using a recent valuation as appropriate to the underlying collateral less estimated costs of sale, and charge-off the loan down to the estimated net realizable amount. Depending on the length of time until final collection, the Company may periodically revalue the underlying collateral and take additional charge-offs as warranted. Revaluations may occur as often as every 3-12 months depending on the underlying collateral and volatility of values. Final charge-offs or recoveries are taken when collateral is liquidated and actual loss is known. Unpaid balances on loans after or during collection and liquidation may also be pursued through legal action and attachment of wages or judgment liens on the borrower's other assets. At September 30, 2016 and December 31, 2015, all loans were pledged under a blanket collateral lien to secure actual and potential borrowings from the Federal Home Loan Bank ("FHLB") and the Federal Reserve Bank. Non-accrual and Past Due Loans The Company's non-accrual loans by loan class, as of September 30, 2016 and December 31, 2015 were as follows: ($ in thousands) September 30, 2016 December 31, 2015 Commercial $ 5,042 $ 112 Commercial Real Estate 559 964 Agriculture — — Residential Mortgage 553 1,092 Residential Construction — — Consumer 157 560 $ 6,311 $ 2,728 Non-accrual loans amounted to $6,311,000 at September 30, 2016 and were comprised of two commercial loans totaling $5,042,000, two commercial real estate loans totaling $559,000, two residential mortgage loans totaling $553,000 and two consumer loans totaling $157,000. Non-accrual loans amounted to $2,728,000 at December 31, 2015 and were comprised of four residential mortgage loans totaling $1,092,000, four commercial real estate loans totaling $964,000, four commercial loans totaling $112,000, and four consumer loans totaling $560,000. All non-accrual loans are measured for impairment based upon the present value of future cash flows discounted at the loan's effective interest rate, the loan's observable market price, or the fair value of collateral, if the loan is collateral dependent. If the measurement of the non-accrual loan is less than the recorded investment in the loan, an impairment is recognized through the establishment of a specific reserve sufficient to cover expected losses and/or a charge-off against the allowance for loan losses. If the loan is considered to be collateral dependent it is generally the Company's policy to charge-off the portion of any non-accrual loan that the Company does not expect to collect by writing the loan down to the estimated net realizable value of the underlying collateral. An aging analysis of past due loans, segregated by loan class, as of September 30, 2016 and December 31, 2015, are as follows: ($ in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or more Past Due Total Past Due Current Total Loans September 30, 2016 Commercial $ 100 $ 5,090 $ — $ 5,190 $ 122,649 $ 127,839 Commercial Real Estate — — — — 322,622 322,622 Agriculture — — — — 97,257 97,257 Residential Mortgage 120 — 555 675 41,005 41,680 Residential Construction — — — — 20,596 20,596 Consumer 392 4 — 396 43,156 43,552 Total $ 612 $ 5,094 $ 555 $ 6,261 $ 647,285 $ 653,546 December 31, 2015 Commercial $ 218 $ — $ 57 $ 275 $ 135,820 $ 136,095 Commercial Real Estate 130 — 232 362 291,954 292,316 Agriculture — — — — 84,813 84,813 Residential Mortgage — — — — 43,375 43,375 Residential Construction — — — — 12,110 12,110 Consumer 19 5 429 453 44,933 45,386 Total $ 367 $ 5 $ 718 $ 1,090 $ 613,005 $ 614,095 The Company had no loans that were 90 days or more past due and still accruing at September 30, 2016 and one loan totaling $2,000 that was 90 days or more past due and still accruing at December 31, 2015. Included in the aging loan category labeled "current" are non-accrual loans that were not delinquent with respect to contractual principal and interest payments as of September 30, 2016 and December 31, 2015. These loans are categorized as non-accrual loans and are not accruing interest as of September 30, 2016 and December 31, 2015. Non-accrual loans outstanding at September 30, 2016 and December 31, 2015 are disclosed in the table above. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement, including scheduled interest payments. Loans considered for impairment include non-accrual loans, troubled debt restructurings and loans with a risk rating of 6 (substandard) or worse. Once identified, impaired loans are measured individually for impairment using one of three methods: present value of expected cash flows discounted at the loan's effective interest rate; the loan's observable market price; and the fair value of collateral if the loan is collateral dependent. If the measurement of the impaired loan is less than the recorded investment in the loan, an impairment is recognized through the establishment of a specific reserve sufficient to cover expected losses and/or a charge-off against the allowance for loan losses. In general, any portion of the recorded investment in a collateral dependent loan in excess of the fair value of the collateral that can be identified as uncollectible, and is, therefore, deemed a confirmed loss, is promptly charged-off against the allowance for loan losses. Impaired loans, segregated by loan class, as of September 30, 2016 and December 31, 2015 were as follows: ($ in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance September 30, 2016 Commercial $ 5,782 $ 43 $ 5,604 $ 5,647 $ 906 Commercial Real Estate 898 559 286 845 40 Agriculture — — — — — Residential Mortgage 3,325 553 2,408 2,961 591 Residential Construction 976 — 976 976 105 Consumer 1,035 157 606 763 38 Total $ 12,016 $ 1,312 $ 9,880 $ 11,192 $ 1,680 December 31, 2015 Commercial $ 933 $ 97 $ 821 $ 918 $ 43 Commercial Real Estate 1,292 964 294 1,258 42 Agriculture — — — — — Residential Mortgage 3,968 1,092 2,484 3,576 615 Residential Construction 1,005 — 1,005 1,005 119 Consumer 1,625 631 690 1,321 33 Total $ 8,823 $ 2,784 $ 5,294 $ 8,078 $ 852 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the three months ended September 30, 2016 and September 30, 2015 was as follows: ($ in thousands) Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 3,232 $ 6 $ 1,840 $ 13 Commercial Real Estate 857 4 1,392 30 Agriculture — — — — Residential Mortgage 2,973 24 3,587 38 Residential Construction 982 12 866 8 Consumer 768 9 1,351 10 Total $ 8,812 $ 55 $ 9,036 $ 99 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2016 and September 30, 2015 was as follows: ($ in thousands) Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 2,111 $ 28 $ 2,234 $ 33 Commercial Real Estate 966 12 1,180 38 Agriculture — — — — Residential Mortgage 3,267 71 4,104 96 Residential Construction 991 35 879 27 Consumer 890 62 1,423 29 Total $ 8,225 $ 208 $ 9,820 $ 223 Troubled Debt Restructurings The Company's loan portfolio includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), which are loans on which concessions in terms have been granted because of the borrowers' financial difficulties and, as a result, the Company receives less than the current market-based compensation for the loan. These concessions may include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are placed on non-accrual status at the time of restructure and may only be returned to accruing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months. When a loan is modified, it is measured based upon the present value of future cash flows discounted at the contractual interest rate of the original loan agreement, or the fair value of collateral less selling costs if the loan is collateral dependent. If the value of the modified loan is less than the recorded investment in the loan, impairment is recognized through a specific allowance or a charge-off of the loan. The Company had $4,923,000 and $5,414,000 in TDR loans as of September 30, 2016 and December 31, 2015, respectively. Specific reserves for TDR loans totaled $807,000 and $852,000 as of September 30, 2016 and December 31, 2015, respectively. TDR loans performing in compliance with modified terms totaled $4,881,000 and $5,350,000 as of September 30, 2016 and December 31, 2015, respectively. There were no commitments to advance additional funds on existing TDR loans as of September 30, 2016. There were no loans modified as TDRs during the three months ended September 30, 2016 and September 30, 2015. Loans modified as TDRs during the nine months ended September 30, 2016 and September 30, 2015 were as follows: ($ in thousands) Nine Months Ended September 30, 2016 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Commercial 1 $ 180 $ 180 Total 1 $ 180 $ 180 ($ in thousands) Nine Months Ended September 30, 2015 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Commercial 1 $ 419 $ 419 Consumer 1 109 109 Total 2 $ 528 $ 528 Loan modifications generally involve reductions in the interest rate, payment extensions, forgiveness of principal, and forbearance. There were no loans modified as a TDR within the previous 12 months and for which there was a payment default during the three and nine months ended September 30, 2016 and September 30, 2015. Credit Quality Indicators All loans are rated using the credit risk ratings and criteria adopted by the Company. Risk ratings are adjusted as future circumstances warrant. All credits risk-rated 1, 2, 3 or 4 equate to a Pass as indicated by Federal and State bank regulatory agencies; a 5 equates to a Special Mention; a 6 equates to Substandard; a 7 equates to Doubtful; and an 8 equates to a Loss. For the definitions of each risk rating, see Note 4 to our condensed consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. The following table presents the risk ratings by loan class as of September 30, 2016 and December 31, 2015: ($ in thousands) Pass Special Mention Substandard Doubtful Loss Total September 30, 2016 Commercial $ 114,905 $ 6,013 $ 6,921 $ — $ — $ 127,839 Commercial Real Estate 305,007 15,255 2,360 — — 322,622 Agriculture 96,778 — 479 — — 97,257 Residential Mortgage 39,216 1,777 687 — — 41,680 Residential Construction 20,010 440 146 — — 20,596 Consumer 42,061 547 944 — — 43,552 Total $ 617,977 $ 24,032 $ 11,537 $ — $ — $ 653,546 December 31, 2015 Commercial $ 125,562 $ 6,842 $ 3,691 $ — $ — $ 136,095 Commercial Real Estate 268,707 8,301 15,308 — — 292,316 Agriculture 84,813 — — — — 84,813 Residential Mortgage 40,231 1,847 1,297 — — 43,375 Residential Construction 11,593 452 65 — — 12,110 Consumer 42,990 1,025 1,371 — — 45,386 Total $ 573,896 $ 18,467 $ 21,732 $ — $ — $ 614,095 Allowance for Loan Losses The following tables detail activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2016. Three months ended September 30, 2016 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2016 $ 3,175 $ 3,584 $ 1,150 $ 690 $ 390 $ 555 $ 486 $ 10,030 Provision for loan losses 556 92 56 (25 ) 7 (36 ) (200 ) 450 Charge-offs (187 ) — — — — (17 ) — (204 ) Recoveries 6 — — — 2 11 — 19 Net charge-offs (181 ) — — — 2 (6 ) — (185 ) Balance as of September 30, 2016 $ 3,550 $ 3,676 $ 1,206 $ 665 $ 399 $ 513 $ 286 $ 10,295 Nine months ended September 30, 2016 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2015 $ 3,097 $ 3,343 $ 1,060 $ 739 $ 334 $ 641 $ 37 $ 9,251 Provision for loan losses 836 348 65 (75 ) 61 (134 ) 249 1,350 Charge-offs (417 ) (15 ) — — — (52 ) — (484 ) Recoveries 34 — 81 1 4 58 — 178 Net charge-offs (383 ) (15 ) 81 1 4 6 — (306 ) Balance as of September 30, 2016 $ 3,550 $ 3,676 $ 1,206 $ 665 $ 399 $ 513 $ 286 $ 10,295 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2016. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 906 $ 40 $ — $ 591 $ 105 $ 38 $ — $ 1,680 Loans collectively evaluated for impairment 2,644 3,636 1,206 74 294 475 286 8,615 Ending Balance $ 3,550 $ 3,676 $ 1,206 $ 665 $ 399 $ 513 $ 286 $ 10,295 The following table details activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2015. Three months ended September 30, 2015 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2015 $ 3,259 $ 2,888 $ 852 $ 833 $ 144 $ 647 $ 483 $ 9,106 Provision for loan losses (128 ) 454 75 (98 ) 171 57 (231 ) 300 Charge-offs (14 ) — — — — (67 ) — (81 ) Recoveries 3 13 — 1 1 17 — 35 Net charge-offs (11 ) 13 — 1 1 (50 ) — (46 ) Balance as of September 30, 2015 $ 3,120 $ 3,355 $ 927 $ 736 $ 316 $ 654 $ 252 $ 9,360 Nine months ended September 30, 2015 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2014 $ 3,581 $ 1,825 $ 580 $ 1,181 $ 161 $ 886 $ 369 $ 8,583 Provision for loan losses (537 ) 1,513 347 (529 ) 97 (124 ) (117 ) 650 Charge-offs (14 ) — — (132 ) — (152 ) — (298 ) Recoveries 90 17 — 216 58 44 — 425 Net recoveries 76 17 — 84 58 (108 ) — 127 Balance as of September 30, 2015 $ 3,120 $ 3,355 $ 927 $ 736 $ 316 $ 654 $ 252 $ 9,360 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2015. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 51 $ 42 $ — $ 619 $ 114 $ 26 $ — $ 852 Loans collectively evaluated for impairment 3,069 3,313 927 117 202 628 252 8,508 Ending Balance $ 3,120 $ 3,355 $ 927 $ 736 $ 316 $ 654 $ 252 $ 9,360 The following table details activity in the allowance for loan losses and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended December 31, 2015. Year ended December 31, 2015 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2014 $ 3,581 $ 1,825 $ 580 $ 1,181 $ 161 $ 886 $ 369 $ 8,583 Provision for (reversal of) loan losses (542 ) 1,507 480 (450 ) 113 (126 ) (332 ) 650 Charge-offs (44 ) (7 ) — (211 ) — (175 ) — (437 ) Recoveries 102 18 — 219 60 56 — 455 Net recoveries 58 11 — 8 60 (119 ) — 18 Ending Balance $ 3,097 $ 3,343 $ 1,060 $ 739 $ 334 $ 641 $ 37 $ 9,251 Period-end amount allocated to: Loans individually evaluated for impairment $ 43 $ 42 $ — $ 615 $ 119 $ 33 $ — $ 852 Loans collectively evaluated for impairment 3,054 3,301 1,060 124 215 608 37 8,399 Balance as of December 31, 2015 $ 3,097 $ 3,343 $ 1,060 $ 739 $ 334 $ 641 $ 37 $ 9,251 The Company's investment in loans as of September 30, 2016, September 30, 2015, and December 31, 2015 related to each balance in the allowance for loan losses by loan class and disaggregated on the basis of the Company's impairment methodology was as follows: ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Total September 30, 2016 Loans individually evaluated for impairment $ 5,647 $ 845 $ — $ 2,961 $ 976 $ 763 $ 11,192 Loans collectively evaluated for impairment 122,192 321,777 97,257 38,719 19,620 42,789 642,354 Ending Balance $ 127,839 $ 322,622 $ 97,257 $ 41,680 $ 20,596 $ 43,552 $ 653,546 September 30, 2015 Loans individually evaluated for impairment $ 959 $ 1,578 $ — $ 3,360 $ 860 $ 1,329 $ 8,086 Loans collectively evaluated for impairment 128,655 294,843 74,138 39,306 10,453 44,350 591,745 Ending Balance $ 129,614 $ 296,421 $ 74,138 $ 42,666 $ 11,313 $ 45,679 $ 599,831 December 31, 2015 Loans individually evaluated for impairment $ 918 $ 1,258 $ — $ 3,576 $ 1,005 $ 1,321 $ 8,078 Loans collectively evaluated for impairment 135,177 291,058 84,813 39,799 11,105 44,065 606,017 Ending Balance $ 136,095 $ 292,316 $ 84,813 $ 43,375 $ 12,110 $ 45,386 $ 614,095

MORTGAGE OPERATIONS

MORTGAGE OPERATIONS	9 Months Ended
	Sep. 30, 2016
MORTGAGE OPERATIONS [Abstract]
MORTGAGE OPERATIONS	3. MORTGAGE OPERATIONS Transfers and servicing of financial assets and extinguishments of liabilities are accounted for and reported based on consistent application of a financial-components approach that focuses on control. Transfers of financial assets that are sales are distinguished from transfers that are secured borrowings. Retained interests (mortgage servicing rights) in loans sold are measured by allocating the previous carrying amount of the transferred assets between the loans sold and retained interests, if any, based on their relative fair value at the date of transfer. Fair values are estimated using discounted cash flows based on a current market interest rate. The Company recognizes a gain and a related asset for the fair value of the rights to service loans for others when loans are sold. The Company sold substantially its entire portfolio of conforming long-term residential mortgage loans originated during the nine months ended September 30, 2016 for cash proceeds equal to the fair value of the loans. The recorded value of mortgage servicing rights is included in other assets on the condensed consolidated balance sheets, and is amortized in proportion to, and over the period of, estimated net servicing revenues. The Company assesses capitalized mortgage servicing rights for impairment based upon the fair value of those rights at each reporting date. For purposes of measuring impairment, the rights are stratified based upon the product type, term and interest rates. Fair value is determined by discounting estimated net future cash flows from mortgage servicing activities using discount rates that approximate current market rates and estimated prepayment rates, among other assumptions. The amount of impairment recognized, if any, is the amount by which the capitalized mortgage servicing rights for a stratum exceeds their fair value. Impairment, if any, is recognized through a valuation allowance for each individual stratum. Changes in the carrying amount of mortgage servicing rights are reported in earnings under other operating income on the condensed consolidated statements of income. Key assumptions used in measuring the fair value of mortgage servicing rights as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 December 31, 2015 Constant prepayment rate 15.94 % 10.94 % Discount rate 10.03 % 10.03 % Weighted average life (years) 4.60 6.17 At September 30, 2016 and December 31, 2015, the Company's mortgage loans held-for-sale were $2,192,000 and $351,000, respectively. At September 30, 2016, and December 31, 2015, the Company serviced real estate mortgage loans for others totaling $229,237,213 and $237,224,000, respectively. The following table summarizes the Company's mortgage servicing rights assets as of September 30, 2016 and December 31, 2015. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets: (in thousands) December 31, 2015 Additions Reductions September 30, 2016 Mortgage servicing rights $ 1,862 $ 198 $ (302 ) $ 1,758 Valuation allowance — (169 ) — (169 ) Mortgage servicing rights, net of valuation allowance $ 1,862 $ 29 $ (302 ) $ 1,589 At September 30, 2016 and December 31, 2015, the estimated fair market value of the Company's mortgage servicing rights asset was $1,589,000 and $2,041,000, respectively. The Company received contractually specified servicing fees of $147,000 for each of the three months ended September 30, 2016 and September 30, 2015. The Company received contractually specified servicing fees of $444,000 and $450,000 for the nine months ended September 30, 2016 and September 30, 2015, respectively. Contractually specified servicing fees are included in other operating income on the condensed consolidated statements of income, net of the amortization of the mortgage servicing rights asset.

OUTSTANDING SHARES AND EARNINGS

OUTSTANDING SHARES AND EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2016
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
OUTSTANDING SHARES AND EARNINGS PER SHARE	4. OUTSTANDING SHARES AND EARNINGS PER SHARE On January 28, 2016, the Board of Directors of the Company declared a 4% stock dividend payable as of March 31, 2016. All income per share amounts have been adjusted to give retroactive effect to stock dividends. Earnings Per Share (EPS) Basic EPS includes no dilution and is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the respective period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding plus dilutive shares for the quarter. Diluted shares include all common stock equivalents ("in-the-money" stock options, unvested restricted stock, stock units, warrants and rights, convertible bonds and preferred stock), which reflects the potential dilution of securities that could share in the earnings of the Company. The following table presents a reconciliation of basic and diluted EPS for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Basic earnings per share: Net income $ 2,019 $ 1,819 $ 5,785 $ 5,106 Preferred stock dividend $ — $ (32 ) $ — $ (96 ) Net income available to common stockholders $ 2,019 $ 1,787 $ 5,785 $ 5,010 Weighted average common shares outstanding 10,611,772 10,578,103 10,605,534 10,566,374 Basic EPS $ 0.19 $ 0.17 $ 0.55 $ 0.47 Diluted earnings per share: Net income $ 2,019 $ 1,819 $ 5,785 $ 5,106 Preferred stock dividend $ — $ (32 ) $ — $ (96 ) Net income available to common stockholders $ 2,019 $ 1,787 $ 5,785 $ 5,010 Weighted average common shares outstanding 10,611,772 10,578,103 10,605,534 10,566,374 Effect of dilutive shares 69,834 59,317 68,196 58,552 Adjusted weighted average common shares outstanding 10,681,606 10,637,420 10,673,730 10,624,926 Diluted EPS $ 0.19 $ 0.17 $ 0.54 $ 0.47 Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 142,499 shares and 163,789 shares for the three months ended September 30, 2016 and 2015, respectively. Stock options which were not included in the computation of diluted earnings per share because they would have had an anti-dilutive effect amounted to 156,122 shares and 175,054 shares for the nine months ended September 30, 2016 and 2015, respectively.

STOCK PLANS

STOCK PLANS	9 Months Ended
	Sep. 30, 2016
STOCK PLANS [Abstract]
STOCK PLANS	5. STOCK PLANS On January 28, 2016, the Board of Directors of the Company declared a 4% stock dividend payable as of March 31, 2016. All stock options and restricted stock outstanding have been adjusted to give retroactive effect to stock dividends. The following table presents the activity related to stock options for the three months ended September 30, 2016. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 229,952 $ 8.26 Granted — — Expired — — Cancelled / Forfeited — — Exercised (11,132 ) 4.70 Options outstanding at End of Period 218,820 $ 8.44 $ 275,107 6.08 Exercisable (vested) at End of Period 114,830 $ 9.37 $ 207,478 3.70 The following table presents the activity related to stock options for the nine months ended September 30, 2016. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 227,364 $ 10.74 Granted 56,199 $ 7.82 Expired (53,611 ) $ 18.29 Cancelled / Forfeited — — Exercised (11,132 ) 4.70 Options outstanding at End of Period 218,820 $ 8.44 $ 275,107 6.08 Exercisable (vested) at End of Period 114,830 $ 9.37 $ 207,478 3.70 The weighted average grant date fair value per share of options granted during the nine months ended September 30, 2016 was $2.13 per share. As of September 30, 2016, there was $191,000 of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted average period of approximately 2.74 years. There was $63,000 of recognized compensation cost related to stock options granted for the nine months ended September 30, 2016. A summary of the weighted average assumptions used in valuing stock options during the three and nine months ended September 30, 2016 is presented below: Three Months Ended September 30, 2016* Nine Months Ended September 30, 2016 Risk Free Interest Rate — 1.23 % Expected Dividend Yield — 0.00 % Expected Life in Years — 5 Expected Price Volatility — 28.41 % * There were no stock options granted during the three months ended September 30, 2016. The following table presents the activity related to non-vested restricted stock for the three months ended September 30, 2016. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 96,801 $ 6.98 Granted — — Cancelled / Forfeited (1,393 ) $ 7.42 Exercised/Released/Vested — — Non-vested restricted stock outstanding at End of Period 95,408 $ 6.97 $769,943 2.68 The following table presents the activity related to non-vested restricted stock for the nine months ended September 30, 2016. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 86,376 $ 6.31 Granted 28,701 $ 7.82 Cancelled / Forfeited (1,705 ) $ 7.49 Exercised/Released/Vested (17,964 ) $ 5.09 Non-vested restricted stock outstanding at End of Period 95,408 $ 6.97 $769,943 2.68 The weighted average fair value of restricted stock granted during the nine months ended September 30, 2016 was $7.82 per share. As of September 30, 2016, there was $368,000 of total unrecognized compensation cost related to non-vested restricted stock. This cost is expected to be recognized over a weighted average period of approximately 2.68 years. There was $131,000 of recognized compensation cost related to restricted stock awards for the nine months ended September 30, 2016. The Company has an Employee Stock Purchase Plan ("ESPP"). There are 260,000 shares authorized under the ESPP. The total number of shares authorized has been adjusted to give retroactive effect to stock dividends and stock splits, including the 4% stock dividend declared on January 28, 2016, payable March 31, 2016 to shareholders of record as of February 29, 2016. The ESPP will expire on March 16, 2026. The ESPP is implemented by participation periods of not more than 27 months each. The Board of Directors determines the commencement date and duration of each participation period. The Board of Directors approved the current participation period of December 10, 2015 to December 9, 2016. An eligible employee is one who has been continually employed for at least 90 days prior to commencement of a participation period. Under the terms of the ESPP, employees can choose to have up to 10 percent of their compensation withheld to purchase the Company's common stock each participation period. The purchase price of the stock is 85 percent of the lower of the fair value on the last trading day before the date of participation or the fair value on the last trading day during the participation period. As of September 30, 2016, there was $4,000 of unrecognized compensation cost related to ESPP issuances. This cost is expected to be recognized over a weighted average period of approximately 0.25 years. There was $14,000 of recognized compensation cost related to ESPP issuances for the nine months ended September 30, 2016. The weighted average fair value at issuance date during the nine months ended September 30, 2016 was $1.50 per share. A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2016 is presented below. Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Risk Free Interest Rate 0.71 % 0.71 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 9.51 % 9.51 %

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2016
FAIR VALUE MEASUREMENT [Abstract]
FAIR VALUE MEASUREMENT	6. FAIR VALUE MEASUREMENT The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale and trading securities are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a non-recurring basis, such as loans held-for-sale, loans held-for-investment and certain other assets. These non-recurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Company's quarterly valuation process. Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable or can be corroborated by observable market data. Level 3 Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques and include management judgment and estimation which may be significant. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. Investment Securities Available-for-Sale Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions, and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets where valuations include significant unobservable assumptions. Loans Held-for-Sale Loans held-for-sale are carried at the lower of cost or fair value. The fair value of loans held-for-sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies loans subjected to non-recurring fair value adjustments as Level 2. At September 30, 2016 there were no loans held-for-sale that required a write-down. Impaired Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, the Company measures impairment. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Inputs include external appraised values, management assumptions regarding market trends or other relevant factors, selling and commission costs generally ranging from 6% to 7%, and amount and timing of cash flows based upon current discount rates. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2016, certain impaired loans were considered collateral dependent and were evaluated based on the fair value of the underlying collateral securing the loan. Impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When a loan is evaluated based on the fair value of the underlying collateral securing the loan, the Company records the impaired loan as non-recurring Level 3. Other Real Estate Owned Other real estate assets ("OREO") acquired through, or in lieu of, foreclosure are held-for-sale and are initially recorded at the lower of cost or fair value, less selling costs. Any write-downs to fair value at the time of transfer to OREO are charged to the allowance for loan losses. Appraisals or evaluations are then done periodically thereafter charging any additional write-downs or valuation allowances to the appropriate expense accounts. Values are derived from appraisals of underlying collateral and discounted cash flow analysis. OREO is classified within Level 3 of the hierarchy. Loan Servicing Rights Loan servicing rights are subject to impairment testing. The Company utilizes a third party service provider to calculate the fair value of the Company's loan servicing rights. Loan servicing rights are measured at fair value as of the date of sale. The Company uses quoted market prices when available. Subsequent fair value measurements are determined using a discounted cash flow model. In order to determine the fair value of the loan servicing rights, the present value of expected future cash flows is estimated. Assumptions used include market discount rates, anticipated prepayment speeds, delinquency and foreclosure rates, and ancillary fee income. The model used to calculate the fair value of the Company's loan servicing rights is periodically validated by an independent external model validation group. The model assumptions and the loan servicing rights fair value estimates are also compared to observable trades of similar portfolios as well as to loan servicing rights broker valuations and industry surveys, as available. If the valuation model reflects a value less than the carrying value, loan servicing rights are adjusted to fair value through a valuation allowance as determined by the model. As such, the Company classifies loan servicing rights subjected to non-recurring fair value adjustments as Level 3. Assets Recorded at Fair Value on a Recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2016: (in thousands) September 30, 2016 Total Level 1 Level 2 Level 3 U.S. Treasury securities $ 26,344 $ 26,344 $ — $ — Securities of U.S. government agencies and corporations 20,770 — 20,770 — Obligations of states and political subdivisions 31,045 — 31,045 — Collateralized mortgage obligations 28,603 — 28,603 — Mortgage-backed securities 151,043 — 151,043 — Total investments at fair value $ 257,805 $ 26,344 $ 231,461 $ — There were no transfers of assets measured at fair value on a recurring basis between level 1 and level 2 of the fair value hierarchy. The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015: (in thousands) December 31, 2015 Total Level 1 Level 2 Level 3 U.S. Treasury securities $ 20,186 $ 20,186 $ — $ — Securities of U.S. government agencies and corporations 33,997 — 33,997 — Obligations of states and political subdivisions 25,709 — 25,709 — Collateralized mortgage obligations 10,932 — 10,932 — Mortgage-backed securities 92,527 — 92,527 — Total investments at fair value $ 183,351 $ 20,186 $ 163,165 $ — Assets Recorded at Fair Value on a Non-Recurring Basis Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of September 30, 2016: (in thousands) September 30, 2016 Total Level 1 Level 2 Level 3 Impaired loans $ 4,171 $ — $ — $ 4,171 Loan servicing rights 1,589 — — 1,589 Total assets at fair value $ 5,760 $ — $ — $ 5,760 Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2015: (in thousands) December 31, 2015 Total Level 1 Level 2 Level 3 Impaired loans $ 841 $ — $ — $ 841 Total assets at fair value $ 841 $ — $ — $ 841 There were no liabilities measured at fair value on a recurring or non-recurring basis at September 30, 2016 and December 31, 2015. Key methods and assumptions used in measuring the fair value of impaired loans and loan servicing rights as of September 30, 2016 and December 31, 2015 were as follows: Method Assumption Inputs Impaired loans Collateral, market, income, enterprise, liquidation and discounted Cash Flows External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging 6% to 7%. Loan servicing rights Discounted Cash Flows Present value of expected future cash flows was estimated using a discount rate factor of 10.03% as of September 30, 2016 and December 31, 2015. A constant prepayment rate of 15.94% and 10.94% as of September 30, 2016 and December 31, 2015, respectively, was utilized.

PREFERRED STOCK

PREFERRED STOCK	9 Months Ended
	Sep. 30, 2016
PREFERRED STOCK [Abstract]
PREFERRED STOCK	7. PREFERRED STOCK On September 15, 2011, the Company issued to the U.S. Treasury under the United States Department of Treasury Small Business Lending Fund (SBLF) 22,847 shares of the Company's Non-Cumulative Perpetual Preferred Stock, Series A (SBLF Shares), having a liquidation preference per share equal to $1,000, for an aggregate purchase price of $22,847,000. On September 15, 2011, the Company redeemed from the U.S. Treasury, using the partial proceeds from the issuance of the SBLF Shares, all 17,390 outstanding shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, liquidation amount $1,000 per share, for a redemption price of $17,390,000, plus accrued but unpaid dividends at the date of redemption. On February 8, 2013, the Company redeemed $10,000,000 of the $22,847,000 in SBLF shares it issued to the U.S. Treasury. On October 26, 2015, the Company redeemed the remaining $12,847,000 in SBLF shares it issued to the U.S. Treasury.

FAIR VALUES OF FINANCIAL INSTRU

FAIR VALUES OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2016
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUES OF FINANCIAL INSTRUMENTS	8. FAIR VALUES OF FINANCIAL INSTRUMENTS The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Cash and Cash Equivalents The carrying amounts reported in the condensed consolidated balance sheets for cash and short-term instruments are a reasonable estimate of fair value. The carrying amount is a reasonable estimate of fair value because of the relatively short term between the origination of the instrument and its expected realization. Therefore, the Company believes the measurement of fair value of cash and cash equivalents is derived from Level 1 inputs. Certificates of Deposit The Company measures the fair value of Certificates of deposit using Level 2 inputs. The fair values of Certificates of deposit were derived by discounting their future expected cash flows back to their present values based upon a constant maturity curve. The constant maturity curve is based on similar instruments, taking into account factors such as instrument type, coupon type, currency, issuer, sector, country of issuer, credit rating, and prevailing market conditions. The Company believes these inputs fall under Level 2 of the fair value hierarchy. Other Equity Securities The carrying amounts reported in the condensed consolidated balance sheets approximate fair value as the shares can only be redeemed by the issuing institution. The Company believes the measurement of the fair value of other equity securities is derived from Level 3 inputs. Loans Receivable For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans (e.g., commercial real estate and rental property mortgage loans, commercial and industrial loans, and agricultural loans) are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The allowance for loan losses is considered to be a reasonable estimate of loan discount due to credit risks. Given the estimation of expected credit losses involves management estimates for assumptions that are not directly observable in a market, the Company believes the fair value of loans receivable is derived from Level 3 inputs. Loans Held-for-Sale For loans held for sale, the fair value is based on what secondary markets are currently offering for portfolios with similar characteristics, and therefore the Company believes the fair value of loans held for sale is derived from Level 2 inputs. Mortgage Servicing Rights The Company measures fair value of mortgage servicing rights using both observable and unobservable inputs. Interest Receivable and Payable The carrying amount of interest receivable and payable approximates its fair value. The Company believes the measurement of the fair value of interest receivable and payable is derived from Level 2 inputs. Deposit Liabilities The Company measures fair value of deposits using both observable and unobservable inputs. The fair value of deposits were derived by discounting their expected future cash flows back to their present values based on the FHLB yield curve, and their expected decay rates for non-maturing deposits. The Company is able to obtain FHLB yield curve rates as of the measurement date, and believes these inputs fall under Level 2 of the fair value hierarchy. Decay rates were developed through internal analysis, and are supported by recent years of the Bank's transaction history. The inputs used by the Company to derive the decay rate assumptions are unobservable inputs, and therefore fall under Level 3 of the fair value hierarchy. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, 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 estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include deferred tax liabilities and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in many of the estimates. The estimated fair values of the Company's financial instruments for the periods ended September 30, 2016 and December 31, 2015 are approximately as follows: September 30, 2016 December 31, 2015 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 158,909 $ 158,909 $ 200,797 $ 200,797 Certificates of deposit 2 16,709 16,752 16,649 16,635 Stock in Federal Home Loan Bank and other equity securities 3 4,409 4,409 3,934 3,934 Loans receivable: Net loans 3 644,246 641,752 605,853 604,240 Loans held-for-sale 2 2,192 2,254 351 363 Interest receivable 2 3,704 3,704 3,127 3,127 Mortgage servicing rights 3 1,589 1,589 1,862 2,041 Financial liabilities: Deposits 3 1,016,525 972,727 948,114 902,872 Interest payable 2 102 102 73 73

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2016
INVESTMENT SECURITIES [Abstract]
INVESTMENT SECURITIES	9. INVESTMENT SECURITIES The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at September 30, 2016 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 26,239 $ 105 $ — $ 26,344 Securities of U.S. government agencies and corporations 20,707 64 (1 ) 20,770 Obligations of states and political subdivisions 30,474 591 (20 ) 31,045 Collateralized mortgage obligations 28,530 85 (12 ) 28,603 Mortgage-backed securities 150,732 747 (436 ) 151,043 Total debt securities $ 256,682 $ 1,592 $ (469 ) $ 257,805 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2015 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 20,240 $ 5 $ (59 ) $ 20,186 Securities of U.S. government agencies and corporations 34,079 6 (88 ) 33,997 Obligations of states and political subdivisions 25,323 436 (50 ) 25,709 Collateralized mortgage obligations 10,994 7 (69 ) 10,932 Mortgage-backed securities 92,465 546 (484 ) 92,527 Total debt securities $ 183,101 $ 1,000 $ (750 ) $ 183,351 The Company had $10,760,000 and $31,464,000 in proceeds from sales/calls of available-for-sale securities for the three and nine months ended September 30, 2016, respectively. The Company had $17,798,000 in proceeds from sales of available-for-sale securities for each of the three and nine months ended September 30, 2015. Gross realized gains from sales/calls of available-for-sale securities were $1,000 and $15,000 for the three and nine months ended September 30, 2016, respectively. Gross realized gains from sales of available-for-sale securities were $68,000 for each of the three and nine months ended September 30, 2015. Gross realized losses from sales/calls of available-for-sale securities were $22,000 for each of the three and nine months ended September 30, 2016. Gross realized losses from sales of available-for-sale securities were $39,000 for each of the three and nine months ended September 30, 2015. There was a $12,000 recovery from other equity securities for each of the three months and nine months ended September 30, 2015. The amortized cost and estimated market value of debt and other securities at September 30, 2016, by contractual and expected maturity, are shown in the following table: (in thousands) Amortized cost Estimated fair value Due in one year or less $ 22,269 $ 22,307 Due after one year through five years 216,619 217,307 Due after five years through ten years 16,779 17,096 Due after ten years 1,015 1,095 $ 256,682 $ 257,805 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities due after one year through five years included mortgage-backed securities and collateralized mortgage obligations with expected maturities totaling $170,133,000 at September 30, 2016. The maturities on these securities were based on the average lives of the securities. An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 2016, follows: Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Securities of U.S. government agencies and corporations $ 2,000 $ (1 ) $ — $ — $ 2,000 $ (1 ) Obligations of states and political subdivisions 6,174 (20 ) — — 6,174 (20 ) Collateralized Mortgage obligations 6,706 (12 ) — — 6,706 (12 ) Mortgage-backed securities 59,754 (394 ) 5,331 (42 ) 65,085 (436 ) Total $ 74,634 $ (427 ) $ 5,331 $ (42 ) $ 79,965 $ (469 ) No decline in value was considered "other-than-temporary" during the first nine months of 2016. Fifty-two securities, all considered investment grade, which had a fair value of $74,634,000 and a total unrealized loss of $427,000, have been in an unrealized loss position for less than twelve months as of September 30, 2016. Eight securities, all considered investment grade, which had a fair value of $5,331,000 and a total unrealized loss of $42,000, have been in an unrealized loss position for more than twelve months as of September 30, 2016. The declines in fair value were attributable to changes in interest rates. We have evaluated the credit ratings of our investment securities and their issuer and/or insurers, and based on this evaluation have determined that no investment security in our investment portfolio was other-than-temporarily impaired as of September 30, 2016. As the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities prior to their anticipated recovery, these investments are not considered other-than-temporarily impaired. An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2015, follows: Less than 12 months 12 months or more Total Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses U.S. Treasury Securities $ 15,014 $ (59 ) $ — $ — $ 15,014 $ (59 ) Securities of U.S. government agencies and corporations 7,005 (32 ) 4,047 (56 ) 11,052 (88 ) Obligations of states and political subdivisions 7,107 (50 ) — — 7,107 (50 ) Collateralized Mortgage obligations 9,982 (69 ) — — 9,982 (69 ) Mortgage-backed securities 44,933 (372 ) 5,838 (112 ) 50,771 (484 ) Total $ 84,041 $ (582 ) $ 9,885 $ (168 ) $ 93,926 $ (750 ) Investment securities carried at $36,390,000 and $30,832,000 at September 30, 2016 and December 31, 2015, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	9 Months Ended
	Sep. 30, 2016
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	10. ACCUMULATED OTHER COMPREHENSIVE INCOME The following table details activity in accumulated other comprehensive income for the three months ended September 30, 2016. ($ in thousands) Unrealized Gains on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of June 30, 2016 $ 1,061 $ (662 ) $ 17 $ 416 Current period other comprehensive loss (388 ) — — (388 ) Balance as of September 30, 2016 $ 673 $ (662 ) $ 17 $ 28 The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2016. ($ in thousands) Unrealized Gains on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of December 31, 2015 $ 150 $ (662 ) $ 17 $ (495 ) Current period other comprehensive income 523 — — 523 Balance as of September 30, 2016 $ 673 $ (662 ) $ 17 $ 28 The following table details activity in accumulated other comprehensive loss for the three months ended September 30, 2015. ($ in thousands) Unrealized Gains on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of June 30, 2015 $ 460 $ (678 ) $ 8 $ (210 ) Current period other comprehensive loss (12 ) — — (12 ) Balance as of September 30, 2015 $ 448 $ (678 ) $ 8 $ (222 ) The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2015. ($ in thousands) Unrealized Gains on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of December 31, 2014 $ 703 $ (678 ) $ 41 $ 66 Current period other comprehensive loss (255 ) — (33 ) (288 ) Balance as of September 30, 2015 $ 448 $ (678 ) $ 8 $ (222 )

FINANCIAL INSTRUMENTS WITH OFF-

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	9 Months Ended
	Sep. 30, 2016
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract]
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK	11. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit in the form of loans or through standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Bank's exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments, whose contract amounts represent credit risk at the indicated periods, were as follows: (in thousands) September 30, 2016 December 31, 2015 Undisbursed loan commitments $ 212,053 $ 201,839 Standby letters of credit 2,865 2,807 Commitments to sell loans 6,392 655 $ 221,310 $ 205,301 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank issues both financial and performance standby letters of credit. The financial standby letters of credit are primarily to guarantee payment to third parties. At September 30, 2016 and December 31, 2015, there were no financial standby letters of credit outstanding. The performance standby letters of credit are typically issued to municipalities as specific performance bonds. Performance standby letters of credit totaled $2,865,000 and $2,807,000 at September 30, 2016 and December 31, 2015, respectively. The Bank has experienced no draws on these letters of credit, resulting in no related liability included on their balance sheet, however, should a triggering event occur, the Bank either has collateral in excess of the letter of credit or imbedded agreements of recourse from the customer. The Bank has set aside a reserve for unfunded commitments in the amount of $793,000 at September 30, 2016 and December 31, 2015, which is recorded in "interest payable and other liabilities" on the Condensed Consolidated Balance Sheets Commitments to extend credit and standby letters of credit bear similar credit risk characteristics as outstanding loans. As of September 30, 2016 and December 31, 2015, the Company had no off-balance sheet derivatives requiring additional disclosure. Mortgage loans sold to investors may be sold with servicing rights retained, for which the Company makes only standard legal representations and warranties as to meeting certain underwriting and collateral documentation standards. In the past two years, the number of loans the Company has had to repurchase due to deficiencies in underwriting or loan documentation is not significant. Management believes that any liabilities that may result from such recourse provisions are not significant.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2016
BASIS OF PRESENTATION [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements of First Northern Community Bancorp (the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Articles 9 and 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for any interim period are not necessarily indicative of results expected for the full year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. All material intercompany balances and transactions have been eliminated in consolidation. See the Company's Annual Report on Form 10-K for the year ended December 31, 2015 for discussion of significant accounting policies and estimates.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements: In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities  Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income.  Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.  Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables).  Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption of certain provisions is permitted. The Company does not expect the adoption of this update to have a significant impact on the Company's consolidated financial statements. In February 2016, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842).  A lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and  A right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU are effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact of this ASU on the Company's consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.
Reclassifications	Reclassifications Certain reclassifications of prior period amounts have been made to conform to current classifications. The Company identified an error related to prior year classifications of the amortization of deferred loan costs in the Consolidated Statements of Income. The amortization amounts were included as components of "Salaries and Employee Benefits" and "Other Expenses", instead of a component of "Interest and Fees on Loans". Management evaluated the materiality of the error from qualitative and quantitative perspectives and concluded that the error was immaterial to the prior period financial statements taken as a whole. Consequently, the Consolidated Statement of Income contained in this Report has been revised for the three and nine months ended September 30, 2015. This change resulted in a decrease of $427,000 in "Interest and Fees and Loans" offset by decreases of $297,000 in "Salaries and employee benefits" and $130,000 in "Other expenses" for the three months ended September 30, 2015 and a decrease of $1,242,000 in "Interest and Fees and Loans" offset by decreases of $846,000 in "Salaries and employee benefits" and $396,000 in "Other expenses" for the nine months ended September 30, 2015. These changes did not affect net income, the balance sheet, cash flows or stockholders' equity for any period.

LOANS (Tables)

LOANS (Tables)	9 Months Ended
	Sep. 30, 2016
LOANS [Abstract]
Composition of Loan Portfolio, by Loan Class	The composition of the Company's loan portfolio, by loan class, as of September 30, 2016 and December 31, 2015 was as follows: ($ in thousands) September 30, 2016 December 31, 2015 Commercial $ 127,839 $ 136,095 Commercial Real Estate 322,622 292,316 Agriculture 97,257 84,813 Residential Mortgage 41,680 43,375 Residential Construction 20,596 12,110 Consumer 43,552 45,386 653,546 614,095 Allowance for loan losses (10,295 ) (9,251 ) Net deferred origination fees and costs 995 1,009 Loans, net $ 644,246 $ 605,853
Non-accrual Loans by Loan Class	The Company's non-accrual loans by loan class, as of September 30, 2016 and December 31, 2015 were as follows: ($ in thousands) September 30, 2016 December 31, 2015 Commercial $ 5,042 $ 112 Commercial Real Estate 559 964 Agriculture — — Residential Mortgage 553 1,092 Residential Construction — — Consumer 157 560 $ 6,311 $ 2,728
Aging Analysis of Past Due Loans, Segregated by Loan Class	An aging analysis of past due loans, segregated by loan class, as of September 30, 2016 and December 31, 2015, are as follows: ($ in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or more Past Due Total Past Due Current Total Loans September 30, 2016 Commercial $ 100 $ 5,090 $ — $ 5,190 $ 122,649 $ 127,839 Commercial Real Estate — — — — 322,622 322,622 Agriculture — — — — 97,257 97,257 Residential Mortgage 120 — 555 675 41,005 41,680 Residential Construction — — — — 20,596 20,596 Consumer 392 4 — 396 43,156 43,552 Total $ 612 $ 5,094 $ 555 $ 6,261 $ 647,285 $ 653,546 December 31, 2015 Commercial $ 218 $ — $ 57 $ 275 $ 135,820 $ 136,095 Commercial Real Estate 130 — 232 362 291,954 292,316 Agriculture — — — — 84,813 84,813 Residential Mortgage — — — — 43,375 43,375 Residential Construction — — — — 12,110 12,110 Consumer 19 5 429 453 44,933 45,386 Total $ 367 $ 5 $ 718 $ 1,090 $ 613,005 $ 614,095
Impaired Loans, Segregated by Loan Class	Impaired loans, segregated by loan class, as of September 30, 2016 and December 31, 2015 were as follows: ($ in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance September 30, 2016 Commercial $ 5,782 $ 43 $ 5,604 $ 5,647 $ 906 Commercial Real Estate 898 559 286 845 40 Agriculture — — — — — Residential Mortgage 3,325 553 2,408 2,961 591 Residential Construction 976 — 976 976 105 Consumer 1,035 157 606 763 38 Total $ 12,016 $ 1,312 $ 9,880 $ 11,192 $ 1,680 December 31, 2015 Commercial $ 933 $ 97 $ 821 $ 918 $ 43 Commercial Real Estate 1,292 964 294 1,258 42 Agriculture — — — — — Residential Mortgage 3,968 1,092 2,484 3,576 615 Residential Construction 1,005 — 1,005 1,005 119 Consumer 1,625 631 690 1,321 33 Total $ 8,823 $ 2,784 $ 5,294 $ 8,078 $ 852
Average Recorded Investment and Interest Income in Impaired Loans Recognized Using Accrual Basis Method of Accounting	The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the three months ended September 30, 2016 and September 30, 2015 was as follows: ($ in thousands) Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 3,232 $ 6 $ 1,840 $ 13 Commercial Real Estate 857 4 1,392 30 Agriculture — — — — Residential Mortgage 2,973 24 3,587 38 Residential Construction 982 12 866 8 Consumer 768 9 1,351 10 Total $ 8,812 $ 55 $ 9,036 $ 99 The average recorded investment in impaired loans and the amount of interest income recognized on impaired loans during the nine months ended September 30, 2016 and September 30, 2015 was as follows: ($ in thousands) Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial $ 2,111 $ 28 $ 2,234 $ 33 Commercial Real Estate 966 12 1,180 38 Agriculture — — — — Residential Mortgage 3,267 71 4,104 96 Residential Construction 991 35 879 27 Consumer 890 62 1,423 29 Total $ 8,225 $ 208 $ 9,820 $ 223
Loans Modified as TDR's	Loans modified as TDRs during the nine months ended September 30, 2016 and September 30, 2015 were as follows: ($ in thousands) Nine Months Ended September 30, 2016 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Commercial 1 $ 180 $ 180 Total 1 $ 180 $ 180 ($ in thousands) Nine Months Ended September 30, 2015 Number of Contracts Pre-modification outstanding recorded investment Post- modification outstanding recorded investment Commercial 1 $ 419 $ 419 Consumer 1 109 109 Total 2 $ 528 $ 528
Risk Ratings by Loan Class	The following table presents the risk ratings by loan class as of September 30, 2016 and December 31, 2015: ($ in thousands) Pass Special Mention Substandard Doubtful Loss Total September 30, 2016 Commercial $ 114,905 $ 6,013 $ 6,921 $ — $ — $ 127,839 Commercial Real Estate 305,007 15,255 2,360 — — 322,622 Agriculture 96,778 — 479 — — 97,257 Residential Mortgage 39,216 1,777 687 — — 41,680 Residential Construction 20,010 440 146 — — 20,596 Consumer 42,061 547 944 — — 43,552 Total $ 617,977 $ 24,032 $ 11,537 $ — $ — $ 653,546 December 31, 2015 Commercial $ 125,562 $ 6,842 $ 3,691 $ — $ — $ 136,095 Commercial Real Estate 268,707 8,301 15,308 — — 292,316 Agriculture 84,813 — — — — 84,813 Residential Mortgage 40,231 1,847 1,297 — — 43,375 Residential Construction 11,593 452 65 — — 12,110 Consumer 42,990 1,025 1,371 — — 45,386 Total $ 573,896 $ 18,467 $ 21,732 $ — $ — $ 614,095
Allowance for Loan Losses	The following tables detail activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2016. Three months ended September 30, 2016 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2016 $ 3,175 $ 3,584 $ 1,150 $ 690 $ 390 $ 555 $ 486 $ 10,030 Provision for loan losses 556 92 56 (25 ) 7 (36 ) (200 ) 450 Charge-offs (187 ) — — — — (17 ) — (204 ) Recoveries 6 — — — 2 11 — 19 Net charge-offs (181 ) — — — 2 (6 ) — (185 ) Balance as of September 30, 2016 $ 3,550 $ 3,676 $ 1,206 $ 665 $ 399 $ 513 $ 286 $ 10,295 Nine months ended September 30, 2016 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2015 $ 3,097 $ 3,343 $ 1,060 $ 739 $ 334 $ 641 $ 37 $ 9,251 Provision for loan losses 836 348 65 (75 ) 61 (134 ) 249 1,350 Charge-offs (417 ) (15 ) — — — (52 ) — (484 ) Recoveries 34 — 81 1 4 58 — 178 Net charge-offs (383 ) (15 ) 81 1 4 6 — (306 ) Balance as of September 30, 2016 $ 3,550 $ 3,676 $ 1,206 $ 665 $ 399 $ 513 $ 286 $ 10,295 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2016. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 906 $ 40 $ — $ 591 $ 105 $ 38 $ — $ 1,680 Loans collectively evaluated for impairment 2,644 3,636 1,206 74 294 475 286 8,615 Ending Balance $ 3,550 $ 3,676 $ 1,206 $ 665 $ 399 $ 513 $ 286 $ 10,295 The following table details activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2015. Three months ended September 30, 2015 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of June 30, 2015 $ 3,259 $ 2,888 $ 852 $ 833 $ 144 $ 647 $ 483 $ 9,106 Provision for loan losses (128 ) 454 75 (98 ) 171 57 (231 ) 300 Charge-offs (14 ) — — — — (67 ) — (81 ) Recoveries 3 13 — 1 1 17 — 35 Net charge-offs (11 ) 13 — 1 1 (50 ) — (46 ) Balance as of September 30, 2015 $ 3,120 $ 3,355 $ 927 $ 736 $ 316 $ 654 $ 252 $ 9,360 Nine months ended September 30, 2015 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2014 $ 3,581 $ 1,825 $ 580 $ 1,181 $ 161 $ 886 $ 369 $ 8,583 Provision for loan losses (537 ) 1,513 347 (529 ) 97 (124 ) (117 ) 650 Charge-offs (14 ) — — (132 ) — (152 ) — (298 ) Recoveries 90 17 — 216 58 44 — 425 Net recoveries 76 17 — 84 58 (108 ) — 127 Balance as of September 30, 2015 $ 3,120 $ 3,355 $ 927 $ 736 $ 316 $ 654 $ 252 $ 9,360 The following table details the allowance for loan losses allocated to loans individually and collectively evaluated for impairment by loan class as of September 30, 2015. ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Period-end amount allocated to: Loans individually evaluated for impairment $ 51 $ 42 $ — $ 619 $ 114 $ 26 $ — $ 852 Loans collectively evaluated for impairment 3,069 3,313 927 117 202 628 252 8,508 Ending Balance $ 3,120 $ 3,355 $ 927 $ 736 $ 316 $ 654 $ 252 $ 9,360 The following table details activity in the allowance for loan losses and the amount allocated to loans individually and collectively evaluated for impairment as of and for the year ended December 31, 2015. Year ended December 31, 2015 ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Unallocated Total Balance as of December 31, 2014 $ 3,581 $ 1,825 $ 580 $ 1,181 $ 161 $ 886 $ 369 $ 8,583 Provision for (reversal of) loan losses (542 ) 1,507 480 (450 ) 113 (126 ) (332 ) 650 Charge-offs (44 ) (7 ) — (211 ) — (175 ) — (437 ) Recoveries 102 18 — 219 60 56 — 455 Net recoveries 58 11 — 8 60 (119 ) — 18 Ending Balance $ 3,097 $ 3,343 $ 1,060 $ 739 $ 334 $ 641 $ 37 $ 9,251 Period-end amount allocated to: Loans individually evaluated for impairment $ 43 $ 42 $ — $ 615 $ 119 $ 33 $ — $ 852 Loans collectively evaluated for impairment 3,054 3,301 1,060 124 215 608 37 8,399 Balance as of December 31, 2015 $ 3,097 $ 3,343 $ 1,060 $ 739 $ 334 $ 641 $ 37 $ 9,251 The Company's investment in loans as of September 30, 2016, September 30, 2015, and December 31, 2015 related to each balance in the allowance for loan losses by loan class and disaggregated on the basis of the Company's impairment methodology was as follows: ($ in thousands) Commercial Commercial Real Estate Agriculture Residential Mortgage Residential Construction Consumer Total September 30, 2016 Loans individually evaluated for impairment $ 5,647 $ 845 $ — $ 2,961 $ 976 $ 763 $ 11,192 Loans collectively evaluated for impairment 122,192 321,777 97,257 38,719 19,620 42,789 642,354 Ending Balance $ 127,839 $ 322,622 $ 97,257 $ 41,680 $ 20,596 $ 43,552 $ 653,546 September 30, 2015 Loans individually evaluated for impairment $ 959 $ 1,578 $ — $ 3,360 $ 860 $ 1,329 $ 8,086 Loans collectively evaluated for impairment 128,655 294,843 74,138 39,306 10,453 44,350 591,745 Ending Balance $ 129,614 $ 296,421 $ 74,138 $ 42,666 $ 11,313 $ 45,679 $ 599,831 December 31, 2015 Loans individually evaluated for impairment $ 918 $ 1,258 $ — $ 3,576 $ 1,005 $ 1,321 $ 8,078 Loans collectively evaluated for impairment 135,177 291,058 84,813 39,799 11,105 44,065 606,017 Ending Balance $ 136,095 $ 292,316 $ 84,813 $ 43,375 $ 12,110 $ 45,386 $ 614,095

MORTGAGE OPERATIONS (Tables)

MORTGAGE OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2016
MORTGAGE OPERATIONS [Abstract]
Schedule of Key Assumptions Used in Measuring the Fair Value of Mortgage Servicing Rights	Key assumptions used in measuring the fair value of mortgage servicing rights as of September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 December 31, 2015 Constant prepayment rate 15.94 % 10.94 % Discount rate 10.03 % 10.03 % Weighted average life (years) 4.60 6.17
Schedule of Mortgage Servicing Rights Assets	The following table summarizes the Company's mortgage servicing rights assets as of September 30, 2016 and December 31, 2015. Mortgage servicing rights are included in Interest Receivable and Other Assets on the condensed consolidated balance sheets: (in thousands) December 31, 2015 Additions Reductions September 30, 2016 Mortgage servicing rights $ 1,862 $ 198 $ (302 ) $ 1,758 Valuation allowance — (169 ) — (169 ) Mortgage servicing rights, net of valuation allowance $ 1,862 $ 29 $ (302 ) $ 1,589

OUTSTANDING SHARES AND EARNIN23

OUTSTANDING SHARES AND EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2016
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
Reconciliation of Basic and Diluted EPS	The following table presents a reconciliation of basic and diluted EPS for the three and nine months ended September 30, 2016 and 2015 (dollars in thousands except per share amounts): Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Basic earnings per share: Net income $ 2,019 $ 1,819 $ 5,785 $ 5,106 Preferred stock dividend $ — $ (32 ) $ — $ (96 ) Net income available to common stockholders $ 2,019 $ 1,787 $ 5,785 $ 5,010 Weighted average common shares outstanding 10,611,772 10,578,103 10,605,534 10,566,374 Basic EPS $ 0.19 $ 0.17 $ 0.55 $ 0.47 Diluted earnings per share: Net income $ 2,019 $ 1,819 $ 5,785 $ 5,106 Preferred stock dividend $ — $ (32 ) $ — $ (96 ) Net income available to common stockholders $ 2,019 $ 1,787 $ 5,785 $ 5,010 Weighted average common shares outstanding 10,611,772 10,578,103 10,605,534 10,566,374 Effect of dilutive shares 69,834 59,317 68,196 58,552 Adjusted weighted average common shares outstanding 10,681,606 10,637,420 10,673,730 10,624,926 Diluted EPS $ 0.19 $ 0.17 $ 0.54 $ 0.47

STOCK PLANS (Tables)

STOCK PLANS (Tables)	9 Months Ended
	Sep. 30, 2016
STOCK PLANS [Abstract]
Stock Option Activity	The following table presents the activity related to stock options for the three months ended September 30, 2016. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 229,952 $ 8.26 Granted — — Expired — — Cancelled / Forfeited — — Exercised (11,132 ) 4.70 Options outstanding at End of Period 218,820 $ 8.44 $ 275,107 6.08 Exercisable (vested) at End of Period 114,830 $ 9.37 $ 207,478 3.70 The following table presents the activity related to stock options for the nine months ended September 30, 2016. Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Options outstanding at Beginning of Period 227,364 $ 10.74 Granted 56,199 $ 7.82 Expired (53,611 ) $ 18.29 Cancelled / Forfeited — — Exercised (11,132 ) 4.70 Options outstanding at End of Period 218,820 $ 8.44 $ 275,107 6.08 Exercisable (vested) at End of Period 114,830 $ 9.37 $ 207,478 3.70
Weighted Average Assumptions Used in Valuing Stock Options Granted	A summary of the weighted average assumptions used in valuing stock options during the three and nine months ended September 30, 2016 is presented below: Three Months Ended September 30, 2016* Nine Months Ended September 30, 2016 Risk Free Interest Rate — 1.23 % Expected Dividend Yield — 0.00 % Expected Life in Years — 5 Expected Price Volatility — 28.41 % * There were no stock options granted during the three months ended September 30, 2016.
Activity Related to Restricted Stock	The following table presents the activity related to non-vested restricted stock for the three months ended September 30, 2016. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 96,801 $ 6.98 Granted — — Cancelled / Forfeited (1,393 ) $ 7.42 Exercised/Released/Vested — — Non-vested restricted stock outstanding at End of Period 95,408 $ 6.97 $769,943 2.68 The following table presents the activity related to non-vested restricted stock for the nine months ended September 30, 2016. Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Weighted Average Remaining Contractual Term (in years) Non-vested Restricted stock outstanding at Beginning of Period 86,376 $ 6.31 Granted 28,701 $ 7.82 Cancelled / Forfeited (1,705 ) $ 7.49 Exercised/Released/Vested (17,964 ) $ 5.09 Non-vested restricted stock outstanding at End of Period 95,408 $ 6.97 $769,943 2.68
Summary of Weighted Average Assumptions Used in Valuing ESPP	A summary of the weighted average assumptions used in valuing ESPP issuances during the three and nine months ended September 30, 2016 is presented below. Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 Risk Free Interest Rate 0.71 % 0.71 % Expected Dividend Yield 0.00 % 0.00 % Expected Life in Years 1.00 1.00 Expected Price Volatility 9.51 % 9.51 %

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2016
FAIR VALUE MEASUREMENT [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2016: (in thousands) September 30, 2016 Total Level 1 Level 2 Level 3 U.S. Treasury securities $ 26,344 $ 26,344 $ — $ — Securities of U.S. government agencies and corporations 20,770 — 20,770 — Obligations of states and political subdivisions 31,045 — 31,045 — Collateralized mortgage obligations 28,603 — 28,603 — Mortgage-backed securities 151,043 — 151,043 — Total investments at fair value $ 257,805 $ 26,344 $ 231,461 $ — There were no transfers of assets measured at fair value on a recurring basis between level 1 and level 2 of the fair value hierarchy. The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015: (in thousands) December 31, 2015 Total Level 1 Level 2 Level 3 U.S. Treasury securities $ 20,186 $ 20,186 $ — $ — Securities of U.S. government agencies and corporations 33,997 — 33,997 — Obligations of states and political subdivisions 25,709 — 25,709 — Collateralized mortgage obligations 10,932 — 10,932 — Mortgage-backed securities 92,527 — 92,527 — Total investments at fair value $ 183,351 $ 20,186 $ 163,165 $ —
Assets Measured at Fair Value on a Non-recurring Basis	Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of September 30, 2016: (in thousands) September 30, 2016 Total Level 1 Level 2 Level 3 Impaired loans $ 4,171 $ — $ — $ 4,171 Loan servicing rights 1,589 — — 1,589 Total assets at fair value $ 5,760 $ — $ — $ 5,760 Assets measured at fair value on a non-recurring basis are included in the table below by level within the fair value hierarchy as of December 31, 2015: (in thousands) December 31, 2015 Total Level 1 Level 2 Level 3 Impaired loans $ 841 $ — $ — $ 841 Total assets at fair value $ 841 $ — $ — $ 841
Methods and Assumptions Used in Measuring Fair Value of Assets and Liabilities	Key methods and assumptions used in measuring the fair value of impaired loans and loan servicing rights as of September 30, 2016 and December 31, 2015 were as follows: Method Assumption Inputs Impaired loans Collateral, market, income, enterprise, liquidation and discounted Cash Flows External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging 6% to 7%. Loan servicing rights Discounted Cash Flows Present value of expected future cash flows was estimated using a discount rate factor of 10.03% as of September 30, 2016 and December 31, 2015. A constant prepayment rate of 15.94% and 10.94% as of September 30, 2016 and December 31, 2015, respectively, was utilized.

FAIR VALUES OF FINANCIAL INST26

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2016
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract]
Estimated Fair Value of Financial Instruments	The estimated fair values of the Company's financial instruments for the periods ended September 30, 2016 and December 31, 2015 are approximately as follows: September 30, 2016 December 31, 2015 Level Carrying amount Fair value Carrying amount Fair value Financial assets: Cash and cash equivalents 1 $ 158,909 $ 158,909 $ 200,797 $ 200,797 Certificates of deposit 2 16,709 16,752 16,649 16,635 Stock in Federal Home Loan Bank and other equity securities 3 4,409 4,409 3,934 3,934 Loans receivable: Net loans 3 644,246 641,752 605,853 604,240 Loans held-for-sale 2 2,192 2,254 351 363 Interest receivable 2 3,704 3,704 3,127 3,127 Mortgage servicing rights 3 1,589 1,589 1,862 2,041 Financial liabilities: Deposits 3 1,016,525 972,727 948,114 902,872 Interest payable 2 102 102 73 73

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2016
INVESTMENT SECURITIES [Abstract]
Amortized Cost, Unrealized Gains and Losses and Estimated Fair Values of Investments in Debt and Other Securities	The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at September 30, 2016 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 26,239 $ 105 $ — $ 26,344 Securities of U.S. government agencies and corporations 20,707 64 (1 ) 20,770 Obligations of states and political subdivisions 30,474 591 (20 ) 31,045 Collateralized mortgage obligations 28,530 85 (12 ) 28,603 Mortgage-backed securities 150,732 747 (436 ) 151,043 Total debt securities $ 256,682 $ 1,592 $ (469 ) $ 257,805 The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2015 are summarized as follows: (in thousands) Amortized cost Unrealized gains Unrealized losses Estimated fair value Investment securities available-for-sale: U.S. Treasury Securities $ 20,240 $ 5 $ (59 ) $ 20,186 Securities of U.S. government agencies and corporations 34,079 6 (88 ) 33,997 Obligations of states and political subdivisions 25,323 436 (50 ) 25,709 Collateralized mortgage obligations 10,994 7 (69 ) 10,932 Mortgage-backed securities 92,465 546 (484 ) 92,527 Total debt securities $ 183,101 $ 1,000 $ (750 ) $ 183,351
Amortized Cost and Estimated Fair Value of Debt and Other Securities by Contractual Maturity	The amortized cost and estimated market value of debt and other securities at September 30, 2016, by contractual and expected maturity, are shown in the following table: (in thousands) Amortized cost Estimated fair value Due in one year or less $ 22,269 $ 22,307 Due after one year through five years 216,619 217,307 Due after five years through ten years 16,779 17,096 Due after ten years 1,015 1,095 $ 256,682 $ 257,805
Analysis of Gross Unrealized Losses of the Available-for-sale Investment Securities Portfolio	An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of September 30, 2016, follows: Less than 12 months 12 months or more Total (in thousands) Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses Securities of U.S. government agencies and corporations $ 2,000 $ (1 ) $ — $ — $ 2,000 $ (1 ) Obligations of states and political subdivisions 6,174 (20 ) — — 6,174 (20 ) Collateralized Mortgage obligations 6,706 (12 ) — — 6,706 (12 ) Mortgage-backed securities 59,754 (394 ) 5,331 (42 ) 65,085 (436 ) Total $ 74,634 $ (427 ) $ 5,331 $ (42 ) $ 79,965 $ (469 ) An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2015, follows: Less than 12 months 12 months or more Total Fair Value Unrealized losses Fair Value Unrealized losses Fair Value Unrealized losses U.S. Treasury Securities $ 15,014 $ (59 ) $ — $ — $ 15,014 $ (59 ) Securities of U.S. government agencies and corporations 7,005 (32 ) 4,047 (56 ) 11,052 (88 ) Obligations of states and political subdivisions 7,107 (50 ) — — 7,107 (50 ) Collateralized Mortgage obligations 9,982 (69 ) — — 9,982 (69 ) Mortgage-backed securities 44,933 (372 ) 5,838 (112 ) 50,771 (484 ) Total $ 84,041 $ (582 ) $ 9,885 $ (168 ) $ 93,926 $ (750 )

ACCUMULATED OTHER COMPREHENSI28

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	9 Months Ended
	Sep. 30, 2016
ACCUMULATED OTHER COMPREHENSIVE INCOME [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table details activity in accumulated other comprehensive income for the three months ended September 30, 2016. ($ in thousands) Unrealized Gains on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of June 30, 2016 $ 1,061 $ (662 ) $ 17 $ 416 Current period other comprehensive loss (388 ) — — (388 ) Balance as of September 30, 2016 $ 673 $ (662 ) $ 17 $ 28 The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2016. ($ in thousands) Unrealized Gains on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of December 31, 2015 $ 150 $ (662 ) $ 17 $ (495 ) Current period other comprehensive income 523 — — 523 Balance as of September 30, 2016 $ 673 $ (662 ) $ 17 $ 28 The following table details activity in accumulated other comprehensive loss for the three months ended September 30, 2015. ($ in thousands) Unrealized Gains on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of June 30, 2015 $ 460 $ (678 ) $ 8 $ (210 ) Current period other comprehensive loss (12 ) — — (12 ) Balance as of September 30, 2015 $ 448 $ (678 ) $ 8 $ (222 ) The following table details activity in accumulated other comprehensive income (loss) for the nine months ended September 30, 2015. ($ in thousands) Unrealized Gains on Securities Officers' retirement plan Directors' retirement plan Accumulated Other Comprehensive Income/(loss) Balance as of December 31, 2014 $ 703 $ (678 ) $ 41 $ 66 Current period other comprehensive loss (255 ) — (33 ) (288 ) Balance as of September 30, 2015 $ 448 $ (678 ) $ 8 $ (222 )

FINANCIAL INSTRUMENTS WITH OF29

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables)	9 Months Ended
	Sep. 30, 2016
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract]
Financial Instruments Whose Contract Amount Represent Credit Risk	Financial instruments, whose contract amounts represent credit risk at the indicated periods, were as follows: (in thousands) September 30, 2016 December 31, 2015 Undisbursed loan commitments $ 212,053 $ 201,839 Standby letters of credit 2,865 2,807 Commitments to sell loans 6,392 655 $ 221,310 $ 205,301

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Interest and fees on loans	$ 7,771,000	$ 7,053,000	$ 22,802,000	$ 20,038,000
Salaries and employee benefits	4,039,000	3,975,000	12,323,000	11,930,000
Other expenses	$ 1,123,000	1,263,000	$ 3,755,000	3,653,000
Error Related to Prior Year Classifications of Amortization of Deferred Loan Costs [Member] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Interest and fees on loans		(427,000)		(1,242,000)
Salaries and employee benefits		(297,000)		(846,000)
Other expenses		$ (130,000)		$ (396,000)

LOANS (Details)

LOANS (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)Category	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 653,546		$ 614,095	$ 599,831
Allowance for loan losses	(10,295)	$ (10,030)	(9,251)	(9,360)	$ (9,106)	$ (8,583)
Net deferred origination fees and costs	995		1,009
Loans, net	$ 644,246		605,853
Minimum [Member]
Loans and Leases Receivable Disclosure [Line Items]
Delinquent loans revaluation period	3 months
Maximum [Member]
Loans and Leases Receivable Disclosure [Line Items]
Delinquent loans revaluation period	12 months
Commercial [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 127,839		136,095	129,614
Allowance for loan losses	$ (3,550)	(3,175)	(3,097)	(3,120)	(3,259)	(3,581)
Loan portfolio by segment	20.00%
Commercial Real Estate [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 322,622		292,316	296,421
Allowance for loan losses	$ (3,676)	(3,584)	(3,343)	(3,355)	(2,888)	(1,825)
Categories of loans | Category	2
Loan portfolio by segment	49.00%
Agriculture [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 97,257		84,813	74,138
Allowance for loan losses	$ (1,206)	(1,150)	(1,060)	(927)	(852)	(580)
Loan portfolio by segment	15.00%
Residential Mortgage [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 41,680		43,375	42,666
Allowance for loan losses	$ (665)	(690)	(739)	(736)	(833)	(1,181)
Loan portfolio by segment	6.00%
Residential Construction [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 20,596		12,110	11,313
Allowance for loan losses	$ (399)	(390)	(334)	(316)	(144)	(161)
Loan portfolio by segment	3.00%
Consumer [Member]
Loans and Leases Receivable Disclosure [Line Items]
Loans	$ 43,552		45,386	45,679
Allowance for loan losses	$ (513)	$ (555)	$ (641)	$ (654)	$ (647)	$ (886)
Loan portfolio by segment	7.00%

LOANS, Non-accrual and Past Due

LOANS, Non-accrual and Past Due Loans (Details)	Sep. 30, 2016USD ($)Loan	Dec. 31, 2015USD ($)Loan	Sep. 30, 2015USD ($)
Non-accrual and Past Due Loans [Abstract]
Non-accrual loans	$ 6,311,000	$ 2,728,000
Total past due	6,261,000	1,090,000
Current	647,285,000	613,005,000
Total	$ 653,546,000	$ 614,095,000	$ 599,831,000
Number of loans 90 days past due and still accruing | Loan	0	1
Loans 90 days past due and still accruing	$ 0	$ 2,000
30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	612,000	367,000
60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	5,094,000	5,000
90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	555,000	718,000
Commercial [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual loans	$ 5,042,000	$ 112,000
Number of nonaccrual loans | Loan	2	4
Total past due	$ 5,190,000	$ 275,000
Current	122,649,000	135,820,000
Total	127,839,000	136,095,000	129,614,000
Commercial [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	100,000	218,000
Commercial [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	5,090,000	0
Commercial [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	57,000
Commercial Real Estate [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual loans	$ 559,000	$ 964,000
Number of nonaccrual loans | Loan	2	4
Total past due	$ 0	$ 362,000
Current	322,622,000	291,954,000
Total	322,622,000	292,316,000	296,421,000
Commercial Real Estate [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	130,000
Commercial Real Estate [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	0
Commercial Real Estate [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	232,000
Agriculture [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual loans	0	0
Total past due	0	0
Current	97,257,000	84,813,000
Total	97,257,000	84,813,000	74,138,000
Agriculture [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	0
Agriculture [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	0
Agriculture [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	0
Residential Mortgage [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual loans	$ 553,000	$ 1,092,000
Number of nonaccrual loans | Loan	2	4
Total past due	$ 675,000	$ 0
Current	41,005,000	43,375,000
Total	41,680,000	43,375,000	42,666,000
Residential Mortgage [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	120,000	0
Residential Mortgage [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	0
Residential Mortgage [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	555,000	0
Residential Construction [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual loans	0	0
Total past due	0	0
Current	20,596,000	12,110,000
Total	20,596,000	12,110,000	11,313,000
Residential Construction [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	0
Residential Construction [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	0
Residential Construction [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	0	0
Consumer [Member]
Non-accrual and Past Due Loans [Abstract]
Non-accrual loans	$ 157,000	$ 560,000
Number of nonaccrual loans | Loan	2	4
Total past due	$ 396,000	$ 453,000
Current	43,156,000	44,933,000
Total	43,552,000	45,386,000	$ 45,679,000
Consumer [Member] | 30-59 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	392,000	19,000
Consumer [Member] | 60-89 Days Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	4,000	5,000
Consumer [Member] | 90 Days or More Past Due [Member]
Non-accrual and Past Due Loans [Abstract]
Total past due	$ 0	$ 429,000

LOANS, Impaired Loans (Details)

LOANS, Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Impaired loans [Abstract]
Unpaid contractual principal balance	$ 12,016		$ 12,016		$ 8,823
Recorded investment with no allowance	1,312		1,312		2,784
Recorded investment with allowance	9,880		9,880		5,294
Total recorded investment	11,192		11,192		8,078
Related allowance	1,680		1,680		852
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	8,812	$ 9,036	8,225	$ 9,820
Interest income recognized	55	99	208	223
Commercial [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	5,782		5,782		933
Recorded investment with no allowance	43		43		97
Recorded investment with allowance	5,604		5,604		821
Total recorded investment	5,647		5,647		918
Related allowance	906		906		43
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	3,232	1,840	2,111	2,234
Interest income recognized	6	13	28	33
Commercial Real Estate [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	898		898		1,292
Recorded investment with no allowance	559		559		964
Recorded investment with allowance	286		286		294
Total recorded investment	845		845		1,258
Related allowance	40		40		42
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	857	1,392	966	1,180
Interest income recognized	4	30	12	38
Agriculture [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	0		0		0
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	0		0		0
Total recorded investment	0		0		0
Related allowance	0		0		0
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	0	0	0	0
Interest income recognized	0	0	0	0
Residential Mortgage [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	3,325		3,325		3,968
Recorded investment with no allowance	553		553		1,092
Recorded investment with allowance	2,408		2,408		2,484
Total recorded investment	2,961		2,961		3,576
Related allowance	591		591		615
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	2,973	3,587	3,267	4,104
Interest income recognized	24	38	71	96
Residential Construction [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	976		976		1,005
Recorded investment with no allowance	0		0		0
Recorded investment with allowance	976		976		1,005
Total recorded investment	976		976		1,005
Related allowance	105		105		119
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	982	866	991	879
Interest income recognized	12	8	35	27
Consumer [Member]
Impaired loans [Abstract]
Unpaid contractual principal balance	1,035		1,035		1,625
Recorded investment with no allowance	157		157		631
Recorded investment with allowance	606		606		690
Total recorded investment	763		763		1,321
Related allowance	38		38		$ 33
Interest income on impaired loans recognized using an accrual method of accounting [Abstract]
Average recorded investment	768	1,351	890	1,423
Interest income recognized	$ 9	$ 10	$ 62	$ 29

LOANS, Troubled Debt Restructur

LOANS, Troubled Debt Restructurings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)Loan	Sep. 30, 2015USD ($)Loan	Sep. 30, 2016USD ($)LoanContract	Sep. 30, 2015USD ($)LoanContract	Dec. 31, 2015USD ($)
Financing Receivable, Modifications [Line Items]
Period of continuous payment for reclassification of nonaccrual loans to accruing status			6 months
TDR loans	$ 4,923,000		$ 4,923,000		$ 5,414,000
Specific reserves for TDR loans	807,000		807,000		852,000
TDR loans performing in compliance with modified terms	4,881,000		4,881,000		$ 5,350,000
Commitments to advance existing TDR loans	$ 0		$ 0
Troubled Debt Restructurings [Abstract]
Number of contracts | Contract			1	2
Pre-modification outstanding recorded investment			$ 180,000	$ 528,000
Post-modification outstanding recorded investment			$ 180,000	$ 528,000
Number of loans restructured and subsequent default | Loan	0	0	0	0
Loan restructured and subsequent default	$ 0	$ 0	$ 0	$ 0
Commercial [Member]
Troubled Debt Restructurings [Abstract]
Number of contracts | Contract			1	1
Pre-modification outstanding recorded investment			$ 180,000	$ 419,000
Post-modification outstanding recorded investment			$ 180,000	$ 419,000
Consumer [Member]
Troubled Debt Restructurings [Abstract]
Number of contracts | Contract				1
Pre-modification outstanding recorded investment				$ 109,000
Post-modification outstanding recorded investment				$ 109,000

LOANS, Financing Receivables by

LOANS, Financing Receivables by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 653,546	$ 614,095	$ 599,831
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	617,977	573,896
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	24,032	18,467
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	11,537	21,732
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	127,839	136,095	129,614
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	114,905	125,562
Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	6,013	6,842
Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	6,921	3,691
Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Commercial [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	322,622	292,316	296,421
Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	305,007	268,707
Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	15,255	8,301
Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	2,360	15,308
Commercial Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Commercial Real Estate [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	97,257	84,813	74,138
Agriculture [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	96,778	84,813
Agriculture [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Agriculture [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	479	0
Agriculture [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Agriculture [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Residential Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	41,680	43,375	42,666
Residential Mortgage [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	39,216	40,231
Residential Mortgage [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	1,777	1,847
Residential Mortgage [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	687	1,297
Residential Mortgage [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Residential Mortgage [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Residential Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	20,596	12,110	11,313
Residential Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	20,010	11,593
Residential Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	440	452
Residential Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	146	65
Residential Construction [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Residential Construction [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	43,552	45,386	$ 45,679
Consumer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	42,061	42,990
Consumer [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	547	1,025
Consumer [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	944	1,371
Consumer [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	0	0
Consumer [Member] | Loss [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	$ 0	$ 0

LOANS, Allowance for Loan Losse

LOANS, Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Allowance for credit losses [Roll Forward]
Beginning balance	$ 10,030	$ 9,106	$ 9,251	$ 8,583	$ 8,583
Provision for (reversal of) loan losses	450	300	1,350	650	650
Charge-offs	(204)	(81)	(484)	(298)	(437)
Recoveries	19	35	178	425	455
Net charge-offs (recoveries)	(185)	(46)	(306)	127	18
Ending balance	10,295	9,360	10,295	9,360	9,251
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	1,680	852	1,680	852	852
Loans collectively evaluated for impairment	8,615	8,508	8,615	8,508	8,399
Ending balance	10,295	9,360	10,295	9,360	9,251
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	11,192	8,086	11,192	8,086	8,078
Loans collectively evaluated for impairment	642,354	591,745	642,354	591,745	606,017
Ending balance	653,546	599,831	653,546	599,831	614,095
Commercial [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	3,175	3,259	3,097	3,581	3,581
Provision for (reversal of) loan losses	556	(128)	836	(537)	(542)
Charge-offs	(187)	(14)	(417)	(14)	(44)
Recoveries	6	3	34	90	102
Net charge-offs (recoveries)	(181)	(11)	(383)	76	58
Ending balance	3,550	3,120	3,550	3,120	3,097
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	906	51	906	51	43
Loans collectively evaluated for impairment	2,644	3,069	2,644	3,069	3,054
Ending balance	3,550	3,120	3,550	3,120	3,097
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	5,647	959	5,647	959	918
Loans collectively evaluated for impairment	122,192	128,655	122,192	128,655	135,177
Ending balance	127,839	129,614	127,839	129,614	136,095
Commercial Real Estate [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	3,584	2,888	3,343	1,825	1,825
Provision for (reversal of) loan losses	92	454	348	1,513	1,507
Charge-offs	0	0	(15)	0	(7)
Recoveries	0	13	0	17	18
Net charge-offs (recoveries)	0	13	(15)	17	11
Ending balance	3,676	3,355	3,676	3,355	3,343
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	40	42	40	42	42
Loans collectively evaluated for impairment	3,636	3,313	3,636	3,313	3,301
Ending balance	3,676	3,355	3,676	3,355	3,343
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	845	1,578	845	1,578	1,258
Loans collectively evaluated for impairment	321,777	294,843	321,777	294,843	291,058
Ending balance	322,622	296,421	322,622	296,421	292,316
Agriculture [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	1,150	852	1,060	580	580
Provision for (reversal of) loan losses	56	75	65	347	480
Charge-offs	0	0	0	0	0
Recoveries	0	0	81	0	0
Net charge-offs (recoveries)	0	0	81	0	0
Ending balance	1,206	927	1,206	927	1,060
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	1,206	927	1,206	927	1,060
Ending balance	1,206	927	1,206	927	1,060
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	97,257	74,138	97,257	74,138	84,813
Ending balance	97,257	74,138	97,257	74,138	84,813
Residential Mortgage [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	690	833	739	1,181	1,181
Provision for (reversal of) loan losses	(25)	(98)	(75)	(529)	(450)
Charge-offs	0	0	0	(132)	(211)
Recoveries	0	1	1	216	219
Net charge-offs (recoveries)	0	1	1	84	8
Ending balance	665	736	665	736	739
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	591	619	591	619	615
Loans collectively evaluated for impairment	74	117	74	117	124
Ending balance	665	736	665	736	739
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	2,961	3,360	2,961	3,360	3,576
Loans collectively evaluated for impairment	38,719	39,306	38,719	39,306	39,799
Ending balance	41,680	42,666	41,680	42,666	43,375
Residential Construction [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	390	144	334	161	161
Provision for (reversal of) loan losses	7	171	61	97	113
Charge-offs	0	0	0	0	0
Recoveries	2	1	4	58	60
Net charge-offs (recoveries)	2	1	4	58	60
Ending balance	399	316	399	316	334
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	105	114	105	114	119
Loans collectively evaluated for impairment	294	202	294	202	215
Ending balance	399	316	399	316	334
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	976	860	976	860	1,005
Loans collectively evaluated for impairment	19,620	10,453	19,620	10,453	11,105
Ending balance	20,596	11,313	20,596	11,313	12,110
Consumer [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	555	647	641	886	886
Provision for (reversal of) loan losses	(36)	57	(134)	(124)	(126)
Charge-offs	(17)	(67)	(52)	(152)	(175)
Recoveries	11	17	58	44	56
Net charge-offs (recoveries)	(6)	(50)	6	(108)	(119)
Ending balance	513	654	513	654	641
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	38	26	38	26	33
Loans collectively evaluated for impairment	475	628	475	628	608
Ending balance	513	654	513	654	641
Loans individually and collectively evaluated for impairment [Abstract]
Loans individually evaluated for impairment	763	1,329	763	1,329	1,321
Loans collectively evaluated for impairment	42,789	44,350	42,789	44,350	44,065
Ending balance	43,552	45,679	43,552	45,679	45,386
Unallocated [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	486	483	37	369	369
Provision for (reversal of) loan losses	(200)	(231)	249	(117)	(332)
Charge-offs	0	0	0	0	0
Recoveries	0	0	0	0	0
Net charge-offs (recoveries)	0	0	0	0	0
Ending balance	286	252	286	252	37
Period-end amount allocated to [Abstract]
Loans individually evaluated for impairment	0	0	0	0	0
Loans collectively evaluated for impairment	286	252	286	252	37
Ending balance	$ 286	$ 252	$ 286	$ 252	$ 37

MORTGAGE OPERATIONS (Details)

MORTGAGE OPERATIONS (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Key assumptions used in measuring the fair value of mortgage servicing rights [Abstract]
Constant prepayment rate			15.94%		10.94%
Discount rate			10.03%		10.03%
Weighted average life			4 years 7 months 6 days		6 years 2 months 1 day
Mortgages held-for-sale	$ 2,192,000		$ 2,192,000		$ 351,000
Real estate mortgage loans serviced	229,237,213		229,237,213		237,224,000
Mortgage servicing rights assets [Roll Forward]
Beginning balance			1,862,000
Additions			198,000
Reductions			(302,000)
Ending balance	1,758,000		1,758,000		1,862,000
Valuation allowance [Roll Forward]
Beginning balance			0
Additions			(169,000)
Reductions			0
Ending balance	(169,000)		(169,000)		0
Mortgage servicing rights, net of valuation allowance [Roll Forward]
Beginning balance			1,862,000
Additions			29,000
Reductions			(302,000)
Ending balance	1,589,000		1,589,000
Fair value of mortgage servicing rights asset	1,589,000		1,589,000		$ 2,041,000
Contractually specified servicing fee	$ 147,000	$ 147,000	$ 444,000	$ 450,000

OUTSTANDING SHARES AND EARNIN38

OUTSTANDING SHARES AND EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 28, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
OUTSTANDING SHARES AND EARNINGS PER SHARE [Abstract]
Stock dividend percentage	4.00%
Dividends date declared				Jan. 28, 2016
Dividend date to be paid				Mar. 31, 2016
Basic earnings per share [Abstract]
Net income		$ 2,019	$ 1,819	$ 5,785	$ 5,106
Preferred stock dividend		0	(32)	0	(96)
Net income available to common shareholders		$ 2,019	$ 1,787	$ 5,785	$ 5,010
Weighted average common shares outstanding (in shares)		10,611,772	10,578,103	10,605,534	10,566,374
Basic EPS (in dollars per share)		$ 0.19	$ 0.17	$ 0.55	$ 0.47
Diluted earnings per share [Abstract]
Net income		$ 2,019	$ 1,819	$ 5,785	$ 5,106
Preferred stock dividend		0	(32)	0	(96)
Net income available to common shareholders		$ 2,019	$ 1,787	$ 5,785	$ 5,010
Weighted average common shares outstanding (in shares)		10,611,772	10,578,103	10,605,534	10,566,374
Effect of dilutive shares (in shares)		69,834	59,317	68,196	58,552
Adjusted weighted average common shares outstanding (in shares)		10,681,606	10,637,420	10,673,730	10,624,926
Diluted EPS (in dollars per share)		$ 0.19	$ 0.17	$ 0.54	$ 0.47
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from EPS computation (in shares)		142,499	163,789	156,122	175,054

STOCK PLANS (Details)

STOCK PLANS (Details)	Jan. 28, 2016	Sep. 30, 2016
STOCK PLANS [Abstract]
Stock dividend percentage	4.00%
Dividends date declared		Jan. 28, 2016
Dividend date to be paid		Mar. 31, 2016
Dividends payable, date of record		Feb. 29, 2016

STOCK PLANS, Stock Options (Det

STOCK PLANS, Stock Options (Details) - Stock Options [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares		Sep. 30, 2016USD ($)$ / sharesshares
Stock options, number of shares [Roll Forward]
Outstanding at beginning of period (in shares) | shares	229,952		227,364
Granted (in shares) | shares	0		56,199
Expired (in shares) | shares	0		(53,611)
Cancelled / Forfeited (in shares) | shares	0		0
Exercised (in shares) | shares	(11,132)		(11,132)
Outstanding at end of period (in shares) | shares	218,820		218,820
Exercisable (vested) at end of period (in shares) | shares	114,830		114,830
Stock options, weighted average exercise price [Roll Forward]
Outstanding at beginning of period (in dollars per share)	$ 8.26		$ 10.74
Granted (in dollars per share)	0		7.82
Expired (in dollars per share)	0		18.29
Cancelled / Forfeited (in dollars per share)	0		0
Exercised (in dollars per share)	4.70		4.70
Outstanding at end of period (in dollars per share)	8.44		8.44
Exercisable (vested) at end of period (in dollars per share)	$ 9.37		$ 9.37
Stock options, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value | $	$ 275,107		$ 275,107
Exercisable (vested), aggregate intrinsic value | $	$ 207,478		$ 207,478
Outstanding, weighted average remaining contractual term	6 years 29 days		6 years 29 days
Exercisable (vested), weighted average remaining contractual term	3 years 8 months 12 days		3 years 8 months 12 days
Weighted average fair value of options granted (in dollars per share)			$ 2.13
Unrecognized compensation related to non-vested stock options | $	$ 191,000		$ 191,000
Unrecognized compensation cost, period for recognition			2 years 8 months 26 days
Recognized compensation cost | $			$ 63,000
Weighted average assumptions used in valuation [Abstract]
Risk-free interest rate	0.00%	[1]	1.23%
Expected dividend yield	0.00%	[1]	0.00%
Expected life	0 years	[1]	5 years
Expected price volatility	0.00%	[1]	28.41%
[1]	There were no stock options granted during the three months ended September 30, 2016.

STOCK PLANS, Restricted Stock (

STOCK PLANS, Restricted Stock (Details) - Restricted Stock [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares
Non-vested restricted stock awards, number of shares [Roll Forward]
Outstanding at beginning of period (in shares) | shares	96,801	86,376
Granted (in shares) | shares	0	28,701
Cancelled/Forfeited (in shares) | shares	(1,393)	(1,705)
Exercised/Released/Vested (in shares) | shares	0	(17,964)
Outstanding at end of period (in shares) | shares	95,408	95,408
Non-vested restricted stock awards, weighted average grant-date fair value [Roll Forward]
Outstanding at beginning of period (in dollars per share) | $ / shares	$ 6.98	$ 6.31
Granted (in dollars per share) | $ / shares	0	7.82
Cancelled/Forfeited (in dollars per share) | $ / shares	7.42	7.49
Exercised/Released/Vested (in dollars per share) | $ / shares	0	5.09
Outstanding at end of period (in dollars per share) | $ / shares	$ 6.97	$ 6.97
Non-vested restricted stock awards, additional disclosures [Abstract]
Outstanding, aggregate intrinsic value | $	$ 769,943	$ 769,943
Outstanding, weighted average remaining contractual term	2 years 8 months 5 days	2 years 8 months 5 days
Unrecognized compensation related to restricted stock | $	$ 368,000	$ 368,000
Unrecognized compensation cost, period for recognition		2 years 8 months 5 days
Recognized compensation cost | $		$ 131,000

STOCK PLANS, Employee Stock Pur

STOCK PLANS, Employee Stock Purchase Plan ("ESPP") (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	May 19, 2015
Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan (ESPP) Disclosures [Line Items]
Unrecognized compensation cost	$ 4,000	$ 4,000
Weighted average period to recognize the unrecognized compensation		3 months
Recognized compensation cost		$ 14,000
Weighted average fair value at issuance date (in dollars per share)		$ 1.50
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate	0.71%	0.71%
Expected dividend yield	0.00%	0.00%
Expected life	1 year	1 year
Expected price volatility	9.51%	9.51%
2016 Amended Employee Stock Purchase Plan [Member]
Employee Stock Purchase Plan (ESPP) Disclosures [Line Items]
Shares authorized under plan (in shares)			260,000
Eligibility employment period required for plan participation		90 days
Purchase price of stock in percentage for participation		85.00%
2016 Amended Employee Stock Purchase Plan [Member] | Maximum [Member]
Employee Stock Purchase Plan (ESPP) Disclosures [Line Items]
Plan participation period		27 months
Percentage of employee compensation that can be withheld to purchase common stock		10.00%

FAIR VALUE MEASUREMENT (Details

FAIR VALUE MEASUREMENT (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 257,805,000	$ 183,351,000
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Loan servicing rights	1,589,000	2,041,000
Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	257,805,000	183,351,000
Recurring [Member] | Level 1 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	26,344,000	20,186,000
Recurring [Member] | Level 2 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	231,461,000	163,165,000
Recurring [Member] | Level 3 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Non-recurring [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Impaired loans	4,171,000	841,000
Loan servicing rights	1,589,000
Total assets at fair value	5,760,000	841,000
Non-recurring [Member] | Level 1 [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Impaired loans	0	0
Loan servicing rights	0
Total assets at fair value	0	0
Non-recurring [Member] | Level 2 [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Impaired loans	0	0
Loan servicing rights	0
Total assets at fair value	0	0
Non-recurring [Member] | Level 3 [Member]
Assets Recorded at Fair Value on a Non-Recurring Basis [Abstract]
Impaired loans	4,171,000	841,000
Loan servicing rights	1,589,000
Total assets at fair value	$ 5,760,000	841,000
Impaired Loans [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling and commission costs	6.00%
Impaired Loans [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Selling and commission costs	7.00%
U.S. Treasury Securities [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 26,344,000	20,186,000
U.S. Treasury Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	26,344,000	20,186,000
U.S. Treasury Securities [Member] | Recurring [Member] | Level 1 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	26,344,000	20,186,000
U.S. Treasury Securities [Member] | Recurring [Member] | Level 2 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
U.S. Treasury Securities [Member] | Recurring [Member] | Level 3 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Securities of U.S. Government Agencies and Corporations [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	20,770,000	33,997,000
Securities of U.S. Government Agencies and Corporations [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	20,770,000	33,997,000
Securities of U.S. Government Agencies and Corporations [Member] | Recurring [Member] | Level 1 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Securities of U.S. Government Agencies and Corporations [Member] | Recurring [Member] | Level 2 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	20,770,000	33,997,000
Securities of U.S. Government Agencies and Corporations [Member] | Recurring [Member] | Level 3 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Obligations of States and Political Subdivisions [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	31,045,000	25,709,000
Obligations of States and Political Subdivisions [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	31,045,000	25,709,000
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Level 1 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Level 2 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	31,045,000	25,709,000
Obligations of States and Political Subdivisions [Member] | Recurring [Member] | Level 3 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Collateralized Mortgage Obligations [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	28,603,000	10,932,000
Collateralized Mortgage Obligations [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	28,603,000	10,932,000
Collateralized Mortgage Obligations [Member] | Recurring [Member] | Level 1 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Collateralized Mortgage Obligations [Member] | Recurring [Member] | Level 2 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	28,603,000	10,932,000
Collateralized Mortgage Obligations [Member] | Recurring [Member] | Level 3 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Mortgage-backed Securities [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	151,043,000	92,527,000
Mortgage-backed Securities [Member] | Recurring [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	151,043,000	92,527,000
Mortgage-backed Securities [Member] | Recurring [Member] | Level 1 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	0	0
Mortgage-backed Securities [Member] | Recurring [Member] | Level 2 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	151,043,000	92,527,000
Mortgage-backed Securities [Member] | Recurring [Member] | Level 3 [Member]
Assets Recorded at Fair Value on a Recurring Basis [Abstract]
Total investments at fair value	$ 0	$ 0

FAIR VALUE MEASUREMENT, Key Met

FAIR VALUE MEASUREMENT, Key Methods and Assumptions Used (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Impaired Loans [Member] | Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assumption inputs	External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging 6% to 7%.	External appraised values, management assumptions regarding market trends or other relevant factors; selling costs ranging 6% to 7%.
Impaired Loans [Member] | Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Selling costs	6.00%	6.00%
Impaired Loans [Member] | Collateral, Market, Income, Enterprise, Liquidation and Discounted Cash Flows [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Selling costs	7.00%	7.00%
Loan Servicing Rights [Member] | Discounted Cash Flows [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Assumption inputs	Present value of expected future cash flows was estimated using a discount rate factor of 10.03% as of September 30, 2016 and December 31, 2015. A constant prepayment rate of 15.94% and 10.94% as of September 30, 2016 and December 31, 2015, respectively, was utilized.	Present value of expected future cash flows was estimated using a discount rate factor of 10.03% as of September 30, 2016 and December 31, 2015. A constant prepayment rate of 15.94% and 10.94% as of September 30, 2016 and December 31, 2015, respectively, was utilized.
Discount rate	10.03%	10.03%
Constant prepayment rate	15.94%	10.94%

PREFERRED STOCK (Details)

PREFERRED STOCK (Details) - USD ($)	Oct. 26, 2015	Feb. 08, 2013	Sep. 15, 2011
Non Cumulative Perpetual Preferred Stock, Series A [Member]
Preferred Stock [Abstract]
Preferred stock, shares issued (in shares)			22,847
Preferred stock, liquidation preference per share (in dollars per share)			$ 1,000
Preferred stock, aggregate purchase price			$ 22,847,000
Redemption of preferred stock	$ 12,847,000	$ 10,000,000
Fixed Rate Cumulative Perpetual Preferred Stock, Series A [Member]
Preferred Stock [Abstract]
Redemption of preferred stock (in shares)			17,390
Preferred shares liquidation amount (in dollars per share)			$ 1,000
Redemption of preferred stock			$ 17,390,000

FAIR VALUES OF FINANCIAL INST46

FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Loans receivable [Abstract]
Mortgage servicing rights	$ 1,589,000	$ 2,041,000
Carrying amount [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	158,909,000	200,797,000
Carrying amount [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	16,709,000	16,649,000
Loans receivable [Abstract]
Loans held-for-sale	2,192,000	351,000
Interest receivable	3,704,000	3,127,000
Financial liabilities [Abstract]
Interest payable	102,000	73,000
Carrying amount [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	4,409,000	3,934,000
Loans receivable [Abstract]
Net loans	644,246,000	605,853,000
Mortgage servicing rights	1,589,000	1,862,000
Financial liabilities [Abstract]
Deposits	1,016,525,000	948,114,000
Fair value [Member] | Level 1 [Member]
Financial assets [Abstract]
Cash and cash equivalents	158,909,000	200,797,000
Fair value [Member] | Level 2 [Member]
Financial assets [Abstract]
Certificates of deposit	16,752,000	16,635,000
Loans receivable [Abstract]
Loans held-for-sale	2,254,000	363,000
Interest receivable	3,704,000	3,127,000
Financial liabilities [Abstract]
Interest payable	102,000	73,000
Fair value [Member] | Level 3 [Member]
Financial assets [Abstract]
Stock in Federal Home Loan Bank and other equity securities	4,409,000	3,934,000
Loans receivable [Abstract]
Net loans	641,752,000	604,240,000
Mortgage servicing rights	1,589,000	2,041,000
Financial liabilities [Abstract]
Deposits	$ 972,727,000	$ 902,872,000

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Investment securities available-for-sale [Abstract]
Amortized cost	$ 256,682,000		$ 256,682,000		$ 183,101,000
Unrealized gains	1,592,000		1,592,000		1,000,000
Unrealized losses	(469,000)		(469,000)		(750,000)
Estimated fair value	257,805,000		257,805,000		183,351,000
Proceeds from sales/calls of available-for-sale securities	10,760,000		31,464,000	$ 4,540,000
Proceeds from sales of available-for-sale securities		$ 17,798,000	756,000	17,798,000
Gross realized gains from sales or calls of available-for-sale securities	1,000	68,000	15,000	68,000
Gross realized losses from sales or calls of available-for-sale securities	(22,000)	(39,000)	(22,000)	(39,000)
Gross realized recovery from other equity securities	0	$ 12,000	0	$ 12,000
U.S. Treasury Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	26,239,000		26,239,000		20,240,000
Unrealized gains	105,000		105,000		5,000
Unrealized losses	0		0		(59,000)
Estimated fair value	26,344,000		26,344,000		20,186,000
Securities of U.S. Government Agencies and Corporations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	20,707,000		20,707,000		34,079,000
Unrealized gains	64,000		64,000		6,000
Unrealized losses	(1,000)		(1,000)		(88,000)
Estimated fair value	20,770,000		20,770,000		33,997,000
Obligations of States and Political Subdivisions [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	30,474,000		30,474,000		25,323,000
Unrealized gains	591,000		591,000		436,000
Unrealized losses	(20,000)		(20,000)		(50,000)
Estimated fair value	31,045,000		31,045,000		25,709,000
Collateralized Mortgage Obligations [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	28,530,000		28,530,000		10,994,000
Unrealized gains	85,000		85,000		7,000
Unrealized losses	(12,000)		(12,000)		(69,000)
Estimated fair value	28,603,000		28,603,000		10,932,000
Mortgage-backed Securities [Member]
Investment securities available-for-sale [Abstract]
Amortized cost	150,732,000		150,732,000		92,465,000
Unrealized gains	747,000		747,000		546,000
Unrealized losses	(436,000)		(436,000)		(484,000)
Estimated fair value	$ 151,043,000		$ 151,043,000		$ 92,527,000

INVESTMENT SECURITIES, Contract

INVESTMENT SECURITIES, Contractual and Expected Maturity (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Amortized cost, by contractual maturity [Abstract]
Due in one year or less	$ 22,269,000
Due after one year through five years	216,619,000
Due after five years through ten years	16,779,000
Due after ten years	1,015,000
Amortized cost	256,682,000	$ 183,101,000
Estimated fair value, by contractual maturity [Abstract]
Due in one year or less	22,307,000
Due after one year through five years	217,307,000
Due after five years through ten years	17,096,000
Due after ten years	1,095,000
Estimated fair value	257,805,000	$ 183,351,000
Mortgage backed securities and collateralized mortgage obligations with expected maturities due after one year through five years	$ 170,133,000

INVESTMENT SECURITIES, Analysis

INVESTMENT SECURITIES, Analysis of Gross Unrealized Losses (Details)	Sep. 30, 2016USD ($)Security	Dec. 31, 2015USD ($)
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	$ 74,634,000	$ 84,041,000
Less than 12 months, unrealized losses	(427,000)	(582,000)
12 months or more, fair value	5,331,000	9,885,000
12 Months or more, unrealized losses	(42,000)	(168,000)
Total fair value	79,965,000	93,926,000
Total unrealized losses	$ (469,000)	(750,000)
Investment securities in unrealized loss position less than 12 months | Security	52
Investment securities in unrealized loss position more than 12 months | Security	8
Investment securities pledged as collateral	$ 36,390,000	30,832,000
U.S. Treasury Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value		15,014,000
Less than 12 months, unrealized losses		(59,000)
12 months or more, fair value		0
12 Months or more, unrealized losses		0
Total fair value		15,014,000
Total unrealized losses		(59,000)
Securities of U.S. Government Agencies and Corporations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	2,000,000	7,005,000
Less than 12 months, unrealized losses	(1,000)	(32,000)
12 months or more, fair value	0	4,047,000
12 Months or more, unrealized losses	0	(56,000)
Total fair value	2,000,000	11,052,000
Total unrealized losses	(1,000)	(88,000)
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	6,174,000	7,107,000
Less than 12 months, unrealized losses	(20,000)	(50,000)
12 months or more, fair value	0	0
12 Months or more, unrealized losses	0	0
Total fair value	6,174,000	7,107,000
Total unrealized losses	(20,000)	(50,000)
Collateralized Mortgage Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	6,706,000	9,982,000
Less than 12 months, unrealized losses	(12,000)	(69,000)
12 months or more, fair value	0	0
12 Months or more, unrealized losses	0	0
Total fair value	6,706,000	9,982,000
Total unrealized losses	(12,000)	(69,000)
Mortgage-backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	59,754,000	44,933,000
Less than 12 months, unrealized losses	(394,000)	(372,000)
12 months or more, fair value	5,331,000	5,838,000
12 Months or more, unrealized losses	(42,000)	(112,000)
Total fair value	65,085,000	50,771,000
Total unrealized losses	$ (436,000)	$ (484,000)

ACCUMULATED OTHER COMPREHENSI50

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance			$ 85,849
Current period other comprehensive income (loss)	$ (388)	$ (12)	523	$ (288)
Balance	92,385		92,385
Accumulated Other Comprehensive Income/(Loss) [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	416	(210)	(495)	66
Current period other comprehensive income (loss)			523
Balance	28	(222)	28	(222)
Unrealized Gains on Securities [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	1,061	460	150	703
Current period other comprehensive income (loss)	(388)	(12)	523	(255)
Balance	673	448	673	448
Officers' Retirement Plan [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	(662)	(678)	(662)	(678)
Current period other comprehensive income (loss)	0	0	0	0
Balance	(662)	(678)	(662)	(678)
Directors' Retirement Plan [Member]
Activity in accumulated other comprehensive income (loss) [Roll Forward]
Balance	17	8	17	41
Current period other comprehensive income (loss)	0	0	0	(33)
Balance	$ 17	$ 8	$ 17	$ 8

FINANCIAL INSTRUMENTS WITH OF51

FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risks	$ 221,310,000	$ 205,301,000
Undisbursed Loan Commitments [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risks	212,053,000	201,839,000
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risks	2,865,000	2,807,000
Financial Standby Letter of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risks	0	0
Draw on letters of credit	0	0
Performance Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risks	2,865,000	2,807,000
Draw on letters of credit	0	0
Commitments to Sell Loans [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risks	6,392,000	655,000
Reserve for Off-balance Sheet Activity [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Reserve for unfunded commitments	793,000	793,000
Derivative [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet credit risks	$ 0	$ 0