Independent Bank (IBCP) 10-K 7 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 03, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	INDEPENDENT BANK CORP /MI/
Entity Central Index Key	39,311
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 300,063,109
Entity Common Stock, Shares Outstanding		21,328,758
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 35,238	$ 54,260
Interest bearing deposits	47,956	31,523
Cash and Cash Equivalents	83,194	85,783
Interest bearing deposits - time	5,591	11,866
Trading securities	410	148
Securities available for sale	610,616	585,484
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	15,543	15,471
Loans held for sale, carried at fair value	35,946	27,866
Payment plan receivables and other assets held for sale	33,360	0
Loans
Commercial	804,017	748,398
Mortgage	538,615	498,036
Installment	265,616	234,017
Payment plan receivables	0	34,599
Total Loans	1,608,248	1,515,050
Allowance for loan losses	(20,234)	(22,570)
Net Loans	1,588,014	1,492,480
Other real estate and repossessed assets	5,004	7,150
Property and equipment, net	40,175	43,103
Bank-owned life insurance	54,033	54,402
Deferred tax assets, net	32,818	39,635
Capitalized mortgage loan servicing rights	13,671	12,436
Vehicle service contract counterparty receivables, net	2,271	7,229
Other intangibles	1,932	2,280
Accrued income and other assets	26,372	23,733
Total Assets	2,548,950	2,409,066
Deposits
Non-interest bearing	717,472	659,793
Savings and interest-bearing checking	1,015,724	988,174
Reciprocal	38,657	50,207
Time	453,866	387,789
Total Deposits	2,225,719	2,085,963
Other borrowings	9,433	11,954
Subordinated debentures	35,569	35,569
Other liabilities held for sale	718	0
Accrued expenses and other liabilities	28,531	24,488
Total Liabilities	2,299,970	2,157,974
Commitments and contingent liabilities
Shareholders' Equity
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding	0	0
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 21,258,092 shares at December 31, 2016 and 22,251,373 shares at December 31, 2015	323,745	339,462
Accumulated deficit	(65,657)	(82,334)
Accumulated other comprehensive loss	(9,108)	(6,036)
Total Shareholders' Equity	248,980	251,092
Total Liabilities and Shareholders' Equity	$ 2,548,950	$ 2,409,066

CONSOLIDATED STATEMENTS OF FIN3

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Shareholders' Equity
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	200,000	200,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	21,258,092	22,251,373
Common stock, shares outstanding (in shares)	21,258,092	22,251,373

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
INTEREST INCOME
Interest and fees on loans		$ 74,157	$ 70,930	$ 71,823
Interest on securities
Taxable		9,921	7,805	6,341
Tax-exempt		1,250	907	991
Other investments		1,195	1,200	1,400
Total Interest Income		86,523	80,842	80,555
INTEREST EXPENSE
Deposits		4,941	4,009	4,967
Other borrowings		1,941	1,847	2,332
Total Interest Expense		6,882	5,856	7,299
Net Interest Income		79,641	74,986	73,256
Provision for loan losses		(1,309)	(2,714)	(3,136)
Net Interest Income After Provision for Loan Losses		80,950	77,700	76,392
NON-INTEREST INCOME
Service charges on deposit accounts		12,406	12,389	13,446
Interchange income		7,938	8,481	8,164
Net gains (losses) on assets
Mortgage loans		10,566	7,448	5,628
Securities		563	20	329
Other than temporary impairment loss on securities
Total impairment loss		0	0	(9)
Loss recognized in other comprehensive income (loss)		0	0	0
Net impairment loss recognized in earnings		0	0	(9)
Mortgage loan servicing, net		2,222	1,751	791
Title insurance fees		1,187	1,156	995
Net gain on branch sale		0	1,193	0
Gain on extinguishment of debt		0	0	500
Other		7,416	7,692	8,931
Total Non-Interest Income		42,298	40,130	38,775
NON-INTEREST EXPENSE
Compensation and employee benefits		49,579	48,186	47,221
Occupancy, net		8,023	8,369	8,912
Data processing		7,952	7,944	7,532
Furniture, fixtures and equipment		3,912	3,892	4,137
Communications		3,142	2,957	2,926
Loan and collection		2,512	3,609	5,392
Litigation settlement expense		2,300	0	0
Advertising		1,856	2,121	2,193
Legal and professional		1,742	2,013	1,969
Interchange expense		1,111	1,125	1,291
FDIC deposit insurance		1,049	1,366	1,567
Credit card and bank service fees		791	797	946
Loss on sale of payment plan business		320	0	0
Net (gains) losses on other real estate and repossessed assets		250	(180)	(500)
Provision for loss reimbursement on sold loans		30	(59)	(466)
Other		5,778	6,310	6,831
Total Non-interest Expense		90,347	88,450	89,951
Income Before Income Tax		32,901	29,380	25,216
Income tax expense		10,135	9,363	7,195
Net Income		$ 22,766	$ 20,017	$ 18,021
Net income per common share
Basic (in dollars per share)	[1]	$ 1.06	$ 0.88	$ 0.79
Diluted (in dollars per share)		1.05	0.86	0.77
Cash dividends declared and paid per common share (in dollars per share)		$ 0.34	$ 0.26	$ 0.18
[1]	Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 22,766	$ 20,017	$ 18,021
Securities available for sale
Unrealized gain (loss) arising during period	(4,465)	(540)	5,095
Change in unrealized gains and losses for which a portion of other than temporary impairment has been recognized in earnings	40	0	398
Reclassification adjustment for other than temporary impairment included in earnings	0	0	9
Reclassification adjustments for gains included in earnings	(301)	(75)	(329)
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale	(4,726)	(615)	5,173
Income tax expense (benefit)	(1,654)	(215)	1,811
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale, net of tax	(3,072)	(400)	3,362
Derivative instruments
Reclassification adjustment for accretion on settled derivatives	0	0	380
Unrealized gains recognized in other comprehensive income (loss) on derivative instruments	0	0	380
Income tax expense	0	0	133
Unrealized gains recognized in other comprehensive income (loss) on derivative instruments, net of tax	0	0	247
Other comprehensive income (loss)	(3,072)	(400)	3,609
Comprehensive income	$ 19,694	$ 19,617	$ 21,630

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Total
Balance at beginning of period at Dec. 31, 2013	$ 351,173	$ (110,347)	$ (9,245)	$ 231,581
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	18,021	0	18,021
Cash dividends declared	0	(4,129)	0	(4,129)
Issuance of common stock	97	0	0	97
Share based compensation	1,192	0	0	1,192
Other comprehensive income (loss)	0	0	3,609	3,609
Balances at end of the period at Dec. 31, 2014	352,462	(96,455)	(5,636)	250,371
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	20,017	0	20,017
Cash dividends declared	0	(5,896)	0	(5,896)
Repurchase of common stock	(13,498)			(13,498)
Issuance of common stock	112	0	0	112
Share based compensation	1,477	0	0	1,477
Share based compensation withholding obligation	(1,091)	0	0	(1,091)
Other comprehensive income (loss)	0	0	(400)	(400)
Balances at end of the period at Dec. 31, 2015	339,462	(82,334)	(6,036)	251,092
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principle	62	1,185	0	1,247
Balance at beginning of period, as adjusted at Dec. 31, 2015	339,524	(81,149)	(6,036)	252,339
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	22,766	0	22,766
Cash dividends declared	0	(7,274)	0	(7,274)
Repurchase of common stock	(16,854)			(16,854)
Issuance of common stock	82	0	0	82
Share based compensation	1,620	0	0	1,620
Share based compensation withholding obligation	(627)	0	0	(627)
Other comprehensive income (loss)	0	0	(3,072)	(3,072)
Balances at end of the period at Dec. 31, 2016	$ 323,745	$ (65,657)	$ (9,108)	$ 248,980

CONSOLIDATED STATEMENTS OF SHA7

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract]
Declared (in dollars per share)	$ 0.34	$ 0.26	$ 0.18
Repurchase of shares of common stock (in shares)	1,153,136	967,199
Issuance of shares of common stock (in shares)	21,402	39,610	30,828
Share based compensation, common stock (in shares)	180,380	299,263	107,359
Share based compensation withholding obligation, common stock (in shares)	41,927	77,624

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract]
Net income	$ 22,766	$ 20,017	$ 18,021
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Proceeds from sales of loans held for sale	324,828	288,852	228,906
Disbursements for loans held for sale	(322,342)	(285,608)	(226,550)
Provision for loan losses	(1,309)	(2,714)	(3,136)
Deferred income tax expense	8,064	8,997	8,918
Deferred loan fees	(1,911)	(1,234)	(753)
Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans and interest bearning deposits - time	5,216	4,553	3,014
Net gains on mortgage loans	(10,566)	(7,448)	(5,628)
Net gains on securities	(563)	(20)	(329)
Securities impairment recognized in earnings	0	0	9
Net (gains) losses on other real estate and repossessed assets	250	(180)	(500)
Vehicle service contract counterparty contingencies	(50)	119	199
Share based compensation	1,620	1,477	1,192
Litigation settlement expense	2,300	0	0
Loss on sale of payment plan business	320	0	0
Net gain on branch sale	0	(1,193)	0
Gain on extinguishment of debt	0	0	(500)
Increase in accrued income and other assets	(5,478)	(1,387)	(2,579)
Increase (decrease) in accrued expenses and other liabilities	838	(196)	(7,213)
Total Adjustments	1,217	4,018	(4,950)
Net Cash From Operating Activities	23,983	24,035	13,071
CASH FLOW USED IN INVESTING ACTIVITIES
Proceeds from the sale of securities available for sale	64,103	12,037	14,633
Proceeds from the maturity of securities available for sale	40,530	36,808	58,220
Principal payments received on securities available for sale	162,499	130,232	84,487
Purchases of securities available for sale	(297,925)	(234,693)	(224,946)
Purchases of interest bearing deposits - time	0	(4,595)	(2,401)
Proceeds from the maturity of interest bearing deposits - time	6,253	6,222	6,719
Redemption of Federal Home Loan Bank and Federal Reserve Bank stock	371	4,906	3,814
Purchase of Federal Reserve Bank stock	(443)	(458)	(314)
Net increase in portfolio loans (loans originated, net of principal payments)	(107,472)	(74,343)	(37,195)
Purchase of portfolio loans	(15,000)	(32,872)	0
Net cash paid for branch sale	0	(7,229)	0
Proceeds from the collection of vehicle service contract counterparty receivables	4,786	1,092	385
Proceeds from the sale of other real estate and repossessed assets	4,251	6,179	18,471
Proceeds from bank-owned life insurance	2,235	0	0
Proceeds from the sale of property and equipment	416	555	309
Capital expenditures	(3,459)	(4,354)	(4,298)
Net Cash Used in Investing Activities	(138,855)	(160,513)	(82,116)
CASH FLOW FROM FINANCING ACTIVITIES
Net increase in total deposits	139,756	170,314	39,496
Net decrease in other borrowings	0	(1)	(1)
Proceeds from Federal Home Loan Bank advances	0	100	100
Payments of Federal Home Loan Bank Advances	(2,521)	(615)	(4,817)
Net decrease in vehicle service contract counterparty payables	(279)	(1,180)	(2,112)
Dividends paid	(7,274)	(5,896)	(4,129)
Proceeds from issuance of common stock	82	112	97
Repurchase of common stock	(16,854)	(13,498)	0
Share based compensation withholding obligation	(627)	(1,091)	0
Redemption of subordinated debt	0	0	(4,654)
Net Cash From Financing Activities	112,283	148,245	23,980
Net Increase (Decrease) in Cash and Cash Equivalents	(2,589)	11,767	(45,065)
Cash and Cash Equivalents at Beginning of Year	85,783	74,016	119,081
Cash and Cash Equivalents at End of Year	83,194	85,783	74,016
Cash paid during the year for
Interest	6,416	5,769	7,365
Income taxes	563	295	216
Transfers to other real estate and repossessed assets	2,355	6,694	6,143
Transfer of payment plan receivables to vehicle service contract counterparty receivables	200	1,203	180
Purchase of securities available for sale and interest bearing deposits - time not yet settled	1,582	0	265
Transfers to payment plan receivables and other assets held for sale	33,360	0	0
Transfers to other liabilities held for sale	$ 718	$ 0	$ 0

ACCOUNTING POLICIES

ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
ACCOUNTING POLICIES [Abstract]
ACCOUNTING POLICIES	NOTE 1 – ACCOUNTING POLICIES The accounting and reporting policies and practices of Independent Bank Corporation and subsidiaries conform to accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Our critical accounting policies include the determination of the AFLL, the valuation of originated mortgage loan servicing rights and the valuation of deferred tax assets. We are required to make material estimates and assumptions that are particularly susceptible to changes in the near term as we prepare the consolidated financial statements and report amounts for each of these items. Actual results may vary from these estimates. Our subsidiary Independent Bank (“Bank”) transacts business in the single industry of commercial banking. Our Bank’s activities cover traditional phases of commercial banking, including checking and savings accounts, commercial lending, direct and indirect consumer financing and mortgage lending. Our principal markets are the rural and suburban communities across Lower Michigan and Ohio that are served by our Bank’s branches and loan production offices. We also purchase payment plans from companies (which we refer to as “counterparties”) that provide vehicle service contracts and similar products to consumers, through our wholly owned subsidiary, Mepco Finance Corporation (“Mepco”). At December 31, 2016, 72.2% of our Bank’s loan portfolio was secured by real estate. PRINCIPLES OF CONSOLIDATION STATEMENTS OF CASH FLOWS INTEREST BEARING DEPOSITS INTEREST BEARING DEPOSITS - TIME LOANS HELD FOR SALE PAYMENT PLAN RECEIVABLES AND OTHER ASSETS HELD FOR SALE OPERATING SEGMENTS CAPITALIZED MORTGAGE LOAN SERVICING RIGHTS The fair values of mortgage loan servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Mortgage loan servicing income is recorded for fees earned for servicing loans previously sold. The fees are generally based on a contractual percentage of the outstanding principal and are recorded as income when earned. Mortgage loan servicing fees, excluding amortization of and changes in the impairment reserve on originated mortgage loan servicing rights, totaled $4.1 million, $4.1 million and $4.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. Late fees and ancillary fees related to loan servicing are not material. As of January 1, 2017, we elected the fair value measurement method for our mortgage loan servicing rights (in lieu of the amortization method). We expect the cumulative effective of this accounting change to decrease January 1, 2017 retained deficit by $0.4 million, net of tax. We will no longer record amortization of or impairment against capitalized mortgage loan servicing rights, rather we will now record capitalized mortgage loan servicing rights at fair value with subsequent changes in fair value recorded as an increase or decrease to mortgage loan servicing, net, in our Consolidated Statements of Operations. TRANSFERS OF FINANCIAL ASSETS SECURITIES We evaluate securities for other than temporary impairment (“OTTI”) at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In performing this evaluation, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis. FEDERAL HOME LOAN BANK (“FHLB”) STOCK FEDERAL RESERVE BANK (“FRB”) STOCK LOAN REVENUE RECOGNITION Certain loan fees and direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Fees received in connection with loan commitments are deferred until the loan is advanced and are then recognized generally over the contractual life of the loan as an adjustment of yield. Fees on commitments that expire unused are recognized at expiration. Fees received for letters of credit are recognized as revenue over the life of the commitment. PAYMENT PLAN RECEIVABLE REVENUE RECOGNITION ALLOWANCE FOR LOAN LOSSES Some loans will not be repaid in full. Therefore, an AFLL is maintained at a level which represents our best estimate of losses incurred. In determining the AFLL and the related provision for loan losses, we consider four principal elements: (i) specific allocations based upon probable losses identified during the review of the loan portfolio, (ii) allocations established for other adversely rated commercial loans, (iii) allocations based principally on historical loan loss experience, and (iv) additional allocations based on subjective factors, including local and general economic business factors and trends, portfolio concentrations and changes in the size and/or the general terms of the loan portfolios. The first AFLL element (specific allocations) reflects our estimate of probable incurred losses based upon our systematic review of specific loans. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower, discounted collateral exposure and discounted cash flow analysis. Impaired commercial, mortgage and installment loans are allocated allowance amounts using this first element. The second AFLL element (other adversely rated commercial loans) reflects the application of our loan rating system. This rating system is similar to those employed by state and federal banking regulators. Commercial loans that are rated below a certain predetermined classification are assigned a loss allocation factor for each loan classification category that is based upon a historical analysis of both the probability of default and the expected loss rate (“loss given default”). The lower the rating assigned to a loan or category, the greater the allocation percentage that is applied. The third AFLL element (historical loss allocations) is determined by assigning allocations to higher rated (“non-watch credit”) commercial loans using a probability of default and loss given default similar to the second AFLL element and to homogenous mortgage and installment loan groups based upon borrower credit score and portfolio segment. For homogenous mortgage and installment loans a probability of default for each homogenous pool is calculated by way of credit score migration. Historical loss data for each homogenous pool coupled with the associated probability of default is utilized to calculate an expected loss allocation rate. The fourth AFLL element (additional allocations based on subjective factors) is based on factors that cannot be associated with a specific credit or loan category and reflects our attempt to reasonably ensure that the overall AFLL appropriately reflects a margin for the imprecision necessarily inherent in the estimates of expected credit losses. We consider a number of subjective factors when determining this fourth element, including local and general economic business factors and trends, portfolio concentrations and changes in the size, mix and the general terms of the overall loan portfolio. Increases in the AFLL are recorded by a provision for loan losses charged to expense. Although we periodically allocate portions of the AFLL to specific loans and loan portfolios, the entire AFLL is available for incurred losses. We generally charge-off commercial, homogenous residential mortgage and installment loans and payment plan receivables when they are deemed uncollectible or reach a predetermined number of days past due based on loan product, industry practice and other factors. Collection efforts may continue and recoveries may occur after a loan is charged against the AFLL. While we use relevant information to recognize losses on loans, additional provisions for related losses may be necessary based on changes in economic conditions, customer circumstances and other credit risk factors. A loan is impaired when full payment under the loan terms is not expected. Generally, those loans included in each commercial loan class that are rated substandard, classified as non-performing or were classified as non-performing in the preceding quarter, are evaluated for impairment. Those loans included in each mortgage loan or installment loan class whose terms have been modified and considered a troubled debt restructuring are also impaired. Loans which have been modified resulting in a concession, and which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDR”) and classified as impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Large groups of smaller balance homogeneous loans, such as those loans included in each installment and mortgage loan class and each payment plan receivable class, are collectively evaluated for impairment and accordingly, they are not separately identified for impairment disclosures. TDR loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception of the loan. If a TDR is considered to be a collateral dependent loan, the loan is reported net, at the fair value of collateral. A loan can be removed from TDR status if it is subsequently restructured and the borrower is no longer experiencing financial difficulties and the newly restructured agreement does not contain any concessions to the borrower. The new agreement must specify market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, and other terms no less favorable to us than those we would offer for similar new debt. PROPERTY AND EQUIPMENT BANK OWNED LIFE INSURANCE OTHER REAL ESTATE AND REPOSSESSED ASSETS OTHER INTANGIBLES VEHICLE SERVICE CONTRACT COUNTERPARTY RECEIVABLES, NET INCOME TAXES A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. We recognize interest and/or penalties related to income tax matters in income tax expense. We file a consolidated federal income tax return. Intercompany tax liabilities are settled as if each subsidiary filed a separate return. COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS At the inception of the derivative we designate the derivative as one of three types based on our intention and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“Fair Value Hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“Cash Flow Hedge”), or (3) an instrument with no hedging designation. For a Fair Value Hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. We did not have any Fair Value Hedges or Cash Flow Hedges at December 31, 2016 or 2015. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. For instruments with no hedging designation, the gain or loss on the derivative is reported in earnings. These free standing instruments currently consist of (i) mortgage banking related derivatives and include rate-lock loan commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and mandatory forward commitments for the future delivery of these mortgage loans, (ii) certain pay-fixed and pay-variable interest rate swap agreements related to commercial loan customers and (iii) certain purchased and written options related to a time deposit product. Fair values of the mortgage derivatives are estimated based on mortgage backed security pricing for comparable assets. We enter into mandatory forward commitments for the future delivery of mortgage loans generally when interest rate locks are entered into in order to hedge the change in interest rates resulting from our commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage loans in the Consolidated Statements of Operations. Fair values of the pay-fixed and pay-variable interest rate swap agreements are based on discounted cash flow analyses and are included in net interest income in the Consolidated Statements of Operations. Fair values of the purchased and written options are based on prices of financial instruments with similar characteristics and are included in net interest income in the Consolidated Statements of Operations. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest expense. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income (mortgage banking related derivatives) or net interest income (interest rate swap agreements and options). Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. We formally document the relationship between derivatives and hedged items, as well as the risk- management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking Fair Value or Cash Flow Hedges to specific assets and liabilities on the Consolidated Statements of Financial Condition or to specific firm commitments or forecasted transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. We discontinue hedge accounting when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded in earnings. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive loss are amortized into earnings over the same periods which the hedged transactions will affect earnings. COMPREHENSIVE INCOME NET INCOME PER COMMON SHARE SHARE BASED COMPENSATION COMMON STOCK RECLASSIFICATION ADOPTION OF NEW ACCOUNTING STANDARDS In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (718) Improvements to Employee Share-Based Payment Accounting”. This ASU amends existing guidance in an effort to simplify certain aspects of accounting for share-based payments. The areas for simplification in this ASU include income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This amended guidance is effective for us on January 1, 2017, with early adoption permitted. We adopted this amended guidance during the second quarter of 2016 using a modified retrospective approach. The impact of this adoption was to adjust our January 1, 2016 Consolidated Statement of Financial Position to reflect cumulative effect adjustments as follows: January 1, 2016 Originally Presented Cumulative Retrospective Adjustments January 1, 2016 Adjusted (Dollars in thousands) Deferred tax assets $ 39,635 $ 1,247 $ 40,882 Total assets $ 2,409,066 $ 1,247 $ 2,410,313 Common stock $ 339,462 $ 62 $ 339,524 Accumulated deficit $ (82,334 ) $ 1,185 $ (81,149 ) Total Shareholders’ Equity $ 251,092 $ 1,247 $ 252,339 Total Liabilities and Shareholders’ Equity $ 2,409,066 $ 1,247 $ 2,410,313 The adjustments above reflect the recording of $1.23 million of unrealized excess benefits on share based compensation and $0.06 million (impact to equity of $0.02 million after consideration of deferred taxes) for the impact of making an accounting policy election to account for forfeitures as they occur. After January 1, 2016, excess tax benefits or deficiencies resulting from share-based payments will be recognized as tax benefit or expense when they occur. Tax benefits of $0.3 million were recorded during the year ended December 31, 2016, as a result of share awards vesting and stock option exercises. In addition, we have elected to apply the amendments related to the presentation of excess tax benefits in the statement of cash flows on a prospective basis. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) ”. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU amends existing guidance related to the accounting for certain financial assets and liabilities. These amendments, among other things, 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 and 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. This amended guidance is effective for us on January 1, 2018. We have reviewed the types of financial instruments impacted by this amended guidance, including certain equity investments and liabilities measured under the fair value election, and have determined that we do not currently own any such instruments. The balance of this amended guidance is expected to impact certain disclosure items but is not expected to have any impact on our consolidated operating results or financial condition. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This ASU amends existing guidance related to the accounting for leases. These amendments, among other things, requires lessees to account for most leases on the balance sheet while recognizing expense on the income statement in a manner similar to existing guidance. For lessors the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. This amended guidance is effective for us on January 1, 2019 and is not expected to have a material impact on our consolidated operating results or financial condition. Based on a review of our operating leases that we currently have in place (see note #18) we do not expect a material change in the recognition, measurement and presentation of lease expense or impact on cash flow. While the primary impact will be the recognition of certain operating leases on our Consolidated Statements of Financial Condition, this impact is not expected to be material. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For securities available for sale, allowances will be recorded rather than reducing the carrying amount as is done under the current other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This amended guidance is effective for us on January 1, 2020. We began evaluating this ASU in 2016 and have formed a committee that includes personnel from various areas of the Bank that meets regularly to discuss the implementation of this ASU. We are in the process of gathering data and reviewing loss methodologies as well as reviewing certain software applications that would assist us in the implementation of this ASU. While we have not yet determined what the impact will be on our consolidated operating results or financial condition by the nature of the implementation of an expected loss model compared to an incurred loss approach, we would expect our AFLL to increase under this ASU.

RESTRICTIONS ON CASH AND DUE FR

RESTRICTIONS ON CASH AND DUE FROM BANKS	12 Months Ended
	Dec. 31, 2016
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract]
RESTRICTIONS ON CASH AND DUE FROM BANKS	NOTE 2 – RESTRICTIONS ON CASH AND DUE FROM BANKS Our Bank is required to maintain reserve balances in the form of vault cash and non-interest earning balances with the FRB. The average reserve balances to be maintained during 2016 and 2015 were $4.0 million and $3.2 million, respectively. We do not maintain compensating balances with correspondent banks. We are also required to maintain reserve balances related primarily to our merchant payment processing operations and for certain investment security transactions. These balances are held at unrelated financial institutions and totaled $2.4 million and $2.5 million at December 31, 2016 and 2015, respectively.

SECURITIES

SECURITIES	12 Months Ended
	Dec. 31, 2016
SECURITIES [Abstract]
SECURITIES	NOTE 3 – SECURITIES Securities available for sale consist of the following at December 31: Amortized Cost Unrealized Fair Value Gains Losses (In thousands) 2016 U.S. agency $ 28,909 $ 159 $ 80 $ 28,988 U.S. agency residential mortgage-backed 156,053 1,173 937 156,289 U.S. agency commercial mortgage-backed 12,799 28 195 12,632 Private label mortgage-backed 35,035 216 524 34,727 Other asset backed 146,829 271 391 146,709 Obligations of states and political subdivisions 175,180 478 4,759 170,899 Corporate 56,356 223 399 56,180 Trust preferred 2,922 — 343 2,579 Foreign government 1,626 — 13 1,613 Total $ 615,709 $ 2,548 $ 7,641 $ 610,616 2015 U.S. agency $ 47,283 $ 309 $ 80 $ 47,512 U.S. agency residential mortgage-backed 195,055 1,584 583 196,056 U.S. agency commercial mortgage-backed 34,017 94 83 34,028 Private label mortgage-backed 5,061 161 319 4,903 Other asset backed 117,431 54 581 116,904 Obligations of states and political subdivisions 145,193 941 1,150 144,984 Corporate 38,895 9 290 38,614 Trust preferred 2,916 — 433 2,483 Total $ 585,851 $ 3,152 $ 3,519 $ 585,484 Total OTTI recognized in accumulated other comprehensive loss for securities available for sale was zero at both December 31, 2016 and 2015, respectively. Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position, at December 31 follows: Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) 2016 U.S. agency $ 4,179 $ 41 $ 8,217 $ 39 $ 12,396 $ 80 U.S. agency residential mortgage-backed 62,524 732 20,857 205 83,381 937 U.S. agency commercial mortgage-backed 6,079 194 143 1 6,222 195 Private label mortgage-backed 20,545 281 1,413 243 21,958 524 Other asset backed 52,958 172 17,763 219 70,721 391 Obligations of states and political subdivisions 113,078 4,014 14,623 745 127,701 4,759 Corporate 25,546 292 2,810 107 28,356 399 Trust preferred — — 2,579 343 2,579 343 Foreign government 1,613 13 — — 1,613 13 Total $ 286,522 $ 5,739 $ 68,405 $ 1,902 $ 354,927 $ 7,641 Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) 2015 U.S. agency $ 12,164 $ 47 $ 6,746 $ 33 $ 18,910 $ 80 U.S. agency residential mortgage-backed 57,538 316 23,340 267 80,878 583 U.S. agency commercial mortgage-backed 16,747 60 2,247 23 18,994 83 Private label mortgage-backed — — 3,393 319 3,393 319 Other asset backed 102,660 434 5,189 147 107,849 581 Obligations of states and political subdivisions 52,493 597 12,240 553 64,733 1,150 Corporate 30,550 290 — — 30,550 290 Trust preferred — — 2,483 433 2,483 433 Total $ 272,152 $ 1,744 $ 55,638 $ 1,775 $ 327,790 $ 3,519 Our portfolio of securities available for sale is reviewed quarterly for impairment in value. In performing this review, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). U.S. agency, U.S. agency residential mortgage-backed securities and U.S. agency commercial mortgage backed securities — at December 31, 2016, we had 25 U.S. agency, 118 U.S. agency residential mortgage-backed and nine U.S. agency commercial mortgage-backed securities whose fair market value is less than amortized cost. The unrealized losses are largely attributed to increases in interest rates since acquisition and widening spreads to Treasury bonds. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Private label residential mortgage backed securities — at December 31, 2016, we had 34 of this type of security whose fair value is less than amortized cost. The unrealized losses are centered in four securities purchased prior to 2016. Two of these four securities have an impairment in excess of 10% and all four of these holdings have been impaired for more than 12 months. The unrealized losses are largely attributable to credit spread widening on these four securities since their acquisition. These four securities are receiving principal and interest payments. Most of these transactions are pass-through structures, receiving pro rata principal and interest payments from a dedicated collateral pool. The nonreceipt of interest cash flows is not expected and thus not presently considered in our discounted cash flow methodology discussed below. These four private label mortgage-backed securities are reviewed for OTTI utilizing a cash flow projection. The cash flow analysis forecasts cash flow from the underlying loans in each transaction and then applies these cash flows to the bonds in the securitization. Our cash flow analysis forecasts complete recovery of our cost basis for all four of these securities whose fair value is less than amortized cost. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no other declines discussed above are deemed to be other than temporary. Other asset backed — at December 31, 2016, we had 111 other asset backed securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Obligations of states and political subdivisions — at December 31, 2016, we had 329 municipal securities whose fair value is less than amortized cost. The unrealized losses are primarily due to increases in interest rates since acquisition. Fifty-one of these securities have an impairment in excess of 10%. The larger relative impairments on obligations of states and political subdivisions is due primarily to the longer maturities of many of the securities in this portfolio and interest rate spread widening relative to treasury securities in late 2016, due in part, to market reaction to the potential for a future reduction in corporate income tax rates, which would reduce the tax benefit of owning tax-exempt securities. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Corporate — at December 31, 2016, we had 30 corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and increases in interest rates since acquisition. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Trust preferred securities — at December 31, 2016, we had three trust preferred securities whose fair value is less than amortized cost. All of our trust preferred securities are single issue securities issued by a trust subsidiary of a bank holding company. The pricing of trust preferred securities has suffered from credit spread widening. One of the three securities is rated by two major rating agencies as investment grade, while one (a Bank of America issuance) is rated below investment grade by two major rating agencies and the other one is non-rated. The non-rated issue is a relatively small bank and was never rated. The issuer of this non-rated trust preferred security, which had a total amortized cost of $1.0 million and total fair value of $0.8 million as of December 31, 2016, continues to have satisfactory credit metrics and make interest payments. The following table breaks out our trust preferred securities in further detail as of December 31: 2016 2015 Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss (In thousands) Trust preferred securities Rated issues $ 1,800 $ (123 ) $ 1,690 $ (226 ) Unrated issues 779 (220 ) 793 (207 ) As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. Foreign government — at December 31, 2016, we had one foreign government security whose fair value is less than amortized cost. The unrealized loss is primarily due to increases in interest rates since acquisition. As management does not intend to liquidate this security and it is more likely than not that we will not be required to sell this security prior to recovery of this unrealized loss, this decline is not deemed to be other than temporary. We recorded zero credit related OTTI charges in the Consolidated Statements of Operations on securities available for sale during 2016 and 2015 and $0.01 million during 2014. At December 31, 2016, three private label residential mortgage-backed securities had credit related OTTI and are summarized as follows: Senior Security Super Senior Security Senior Support Security Total (In thousands) As of December 31, 2016 Fair value $ 1,226 $ 1,096 $ 74 $ 2,396 Amortized cost 1,184 1,029 — 2,213 Non-credit unrealized loss — — — — Unrealized gain 42 67 74 183 Cumulative credit related OTTI 757 457 380 1,594 Credit related OTTI recognized in our Consolidated Statements of Operations For the years ended December 31, 2016 $ — $ — $ — $ — 2015 — — — — 2014 9 — — 9 Each of these securities is receiving principal and interest payments similar to principal reductions in the underlying collateral. All three of these securities have unrealized gains at December 31, 2016. The original amortized cost for each of these securities has been permanently adjusted downward for previously recorded credit related OTTI. The unrealized loss (based on original amortized cost) for these securities is now less than previously recorded credit related OTTI amounts. A roll forward of credit losses recognized in earnings on securities available for sale for the years ending December 31 follow: 2016 2015 2014 (In thousands) Balance at beginning of year $ 1,844 $ 1,844 $ 1,835 Additions to credit losses on securities for which no previous OTTI was recognized — — — Increases to credit losses on securities for which OTTI was previously recognized — — 9 Total $ 1,844 $ 1,844 $ 1,844 The amortized cost and fair value of securities available for sale at December 31, 2016, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 18,728 $ 18,751 Maturing after one year but within five years 102,330 101,846 Maturing after five years but within ten years 79,798 78,140 Maturing after ten years 64,137 61,522 264,993 260,259 U.S. agency residential mortgage-backed 156,053 156,289 U.S. agency commercial mortgage-backed 12,799 12,632 Private label mortgage-backed 35,035 34,727 Other asset backed 146,829 146,709 Total $ 615,709 $ 610,616 The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. A summary of proceeds from the sale of securities available for sale and gains and losses for the years ended December 31 follow: Proceeds Realized Gains (1) Losses (2) (In thousands) 2016 $ 64,103 $ 354 $ 53 2015 12,037 75 — 2014 14,633 329 — (1) Gains in 2014 exclude $0.3 million of realized gain related to a U.S. Treasury short position. (2) Losses in 2014 exclude $0.01 million of credit related OTTI recognized in earnings. During 2016, 2015 and 2014, our trading securities consisted of various preferred stocks. During each of those years, we recognized gains (losses) on trading securities of $0.26 million, $(0.06) million and $(0.30) million, respectively, that are included in net gains on securities in the Consolidated Statements of Operations. All of these amounts relate to gains (losses) recognized on trading securities still held at December 31, 2016 and 2015. Securities available for sale with a book value of $2.4 million and $1.1 million at December 31, 2016 and 2015, respectively, were pledged to secure borrowings, derivatives, public deposits and for other purposes as required by law. There were no investment obligations of state and political subdivisions that were payable from or secured by the same source of revenue or taxing authority that exceeded 10% of consolidated shareholders’ equity at December 31, 2016 or 2015.

LOANS AND PAYMENT PLAN RECEIVAB

LOANS AND PAYMENT PLAN RECEIVABLES	12 Months Ended
	Dec. 31, 2016
LOANS AND PAYMENT PLAN RECEIVABLES [Abstract]
LOANS AND PAYMENT PLAN RECEIVABLES	NOTE 4 – LOANS AND PAYMENT PLAN RECEIVABLES Our loan portfolios at December 31 follow: 2016 2015 (In thousands) Real estate (1) Residential first mortgages $ 453,348 $ 432,215 Residential home equity and other junior mortgages 105,550 106,297 Construction and land development 77,287 62,629 Other (2) 525,748 498,706 Consumer 234,632 193,350 Commercial 206,607 180,424 Agricultural 5,076 6,830 Payment plan receivables (3) — 34,599 Total loans $ 1,608,248 $ 1,515,050 (1) Includes both residential and non-residential commercial loans secured by real estate. (2) Includes loans secured by multi-family residential and non-farm, non-residential property. (3) Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #1. Loans include net deferred loan costs of $4.1 million and $2.2 million at December 31, 2016 and 2015, respectively. Payment plan receivables totaling $36.9 million at December 31, 2015, are presented net of unamortized discount of $2.3 million at December 31, 2015. These payment plan receivables had effective yields of 13% at December 31, 2015. In August 2016 and December 2015, we purchased $15.0 million and $32.6 million, respectively of single-family residential fixed rate jumbo mortgage loans from two separate Michigan-based financial institutions. These mortgage loans were all on properties located in Michigan, had weighted average interest rates (after a 0.25% servicing fee) of 3.65% and 3.94%, respectively and weighted average remaining contractual maturities of 332 months and 344 months, respectively. An analysis of the allowance for loan losses by portfolio segment for the years ended December 31 follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) 2016 Balance at beginning of period $ 5,670 $ 10,391 $ 1,181 $ 56 $ 5,272 $ 22,570 Additions (deductions) Provision for loan losses (1,945 ) (158 ) 401 (4 ) 397 (1,309 ) Recoveries credited to allowance 2,472 1,047 1,100 — — 4,619 Loans charged against the allowance (1,317 ) (2,599 ) (1,671 ) — — (5,587 ) Reclassification to loans held for sale — — — (52 ) (7 ) (59 ) Balance at end of period $ 4,880 $ 8,681 $ 1,011 $ — $ 5,662 $ 20,234 2015 Balance at beginning of period $ 5,445 $ 13,444 $ 1,814 $ 64 $ 5,223 $ 25,990 Additions (deductions) Provision for loan losses (737 ) (1,744 ) (274 ) (8 ) 49 (2,714 ) Recoveries credited to allowance 2,656 1,258 1,108 — — 5,022 Loans charged against the allowance (1,694 ) (2,567 ) (1,467 ) — — (5,728 ) Balance at end of period $ 5,670 $ 10,391 $ 1,181 $ 56 $ 5,272 $ 22,570 2014 Balance at beginning of period $ 6,827 $ 17,195 $ 2,246 $ 97 $ 5,960 $ 32,325 Additions (deductions) Provision for loan losses (1,683 ) (1,029 ) 349 (36 ) (737 ) (3,136 ) Recoveries credited to allowance 4,914 1,397 1,104 5 — 7,420 Loans charged against the allowance (4,613 ) (4,119 ) (1,885 ) (2 ) — (10,619 ) Balance at end of period $ 5,445 $ 13,444 $ 1,814 $ 64 $ 5,223 $ 25,990 Allowance for loan losses and recorded investment in loans by portfolio segment follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) 2016 Allowance for loan losses: Individually evaluated for impairment $ 2,244 $ 6,579 $ 329 $ — $ — $ 9,152 Collectively evaluated for impairment 2,636 2,102 682 — 5,662 11,082 Total ending allowance balance $ 4,880 $ 8,681 $ 1,011 $ — $ 5,662 $ 20,234 Loans Individually evaluated for impairment $ 15,767 $ 59,151 $ 4,913 $ — $ 79,831 Collectively evaluated for impairment 790,228 481,828 261,474 — 1,533,530 Total loans recorded investment 805,995 540,979 266,387 — 1,613,361 Accrued interest included in recorded investment 1,978 2,364 771 — 5,113 Total loans $ 804,017 $ 538,615 $ 265,616 $ — $ 1,608,248 2015 Allowance for loan losses: Individually evaluated for impairment $ 2,708 $ 7,818 $ 457 $ — $ — $ 10,983 Collectively evaluated for impairment 2,962 2,573 724 56 5,272 11,587 Total ending allowance balance $ 5,670 $ 10,391 $ 1,181 $ 56 $ 5,272 $ 22,570 Loans Individually evaluated for impairment $ 16,868 $ 66,375 $ 5,888 $ — $ 89,131 Collectively evaluated for impairment 733,399 433,931 228,827 34,599 1,430,756 Total loans recorded investment 750,267 500,306 234,715 34,599 1,519,887 Accrued interest included in recorded investment 1,869 2,270 698 — 4,837 Total loans $ 748,398 $ 498,036 $ 234,017 $ 34,599 $ 1,515,050 Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. If these loans had continued to accrue interest in accordance with their original terms, approximately $0.5 million, $0.6 million and $0.8 million of interest income would have been recognized in 2016, 2015 and 2014, respectively. Interest income recorded on these loans was approximately zero during the years ended 2016, 2015 and 2014. Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) at December 31 follow: 90+ and Still Accruing Non- Accrual Total Non- Performing Loans (In thousands) 2016 Commercial Income producing - real estate $ — $ 628 $ 628 Land, land development and construction - real estate — 105 105 Commercial and industrial — 4,430 4,430 Mortgage 1-4 family — 5,248 5,248 Resort lending — 1,507 1,507 Home equity - 1st lien — 222 222 Home equity - 2nd lien — 317 317 Purchased loans — — — Installment Home equity - 1st lien — 266 266 Home equity - 2nd lien — 289 289 Loans not secured by real estate — 351 351 Other — 1 1 Total recorded investment $ — $ 13,364 $ 13,364 Accrued interest included in recorded investment $ — $ — $ — 2015 Commercial Income producing - real estate $ — $ 1,027 $ 1,027 Land, land development and construction - real estate 49 401 450 Commercial and industrial 69 2,028 2,097 Mortgage 1-4 family — 4,744 4,744 Resort lending — 1,094 1,094 Home equity - 1st lien — 187 187 Home equity - 2nd lien — 147 147 Purchased loans — 2 2 Installment Home equity - 1st lien — 106 106 Home equity - 2nd lien — 443 443 Loans not secured by real estate — 421 421 Other — 2 2 Payment plan receivables Full refund — 2 2 Partial refund — 2 2 Other — 1 1 Total recorded investment $ 118 $ 10,607 $ 10,725 Accrued interest included in recorded investment $ 2 $ — $ 2 An aging analysis of loans by class at December 31 follows: Loans Past Due Loans not Past Due Total Loans 30-59 days 60-89 days 90+ days Total (In thousands) 2016 Commercial Income producing - real estate $ — $ — $ 383 $ 383 $ 287,255 $ 287,638 Land, land development and construction - real estate 74 — 31 105 51,670 51,775 Commercial and industrial 100 1,385 66 1,551 465,031 466,582 Mortgage 1-4 family 2,361 869 5,248 8,478 306,063 314,541 Resort lending — — 1,507 1,507 101,541 103,048 Home equity - 1st lien 149 — 222 371 28,645 29,016 Home equity - 2nd lien 470 218 317 1,005 54,232 55,237 Purchased loans 13 2 — 15 39,122 39,137 Installment Home equity - 1st lien 311 48 266 625 12,025 12,650 Home equity - 2nd lien 238 41 289 568 13,390 13,958 Loans not secured by real estate 533 95 351 979 236,022 237,001 Other 8 1 1 10 2,768 2,778 Total recorded investment $ 4,257 $ 2,659 $ 8,681 $ 15,597 $ 1,597,764 $ 1,613,361 Accrued interest included in recorded investment $ 45 $ 19 $ — $ 64 $ 5,049 $ 5,113 2015 Commercial Income producing - real estate $ 203 $ 209 $ 647 $ 1,059 $ 305,155 $ 306,214 Land, land development and construction - real estate — — 252 252 44,231 44,483 Commercial and industrial 785 16 151 952 398,618 399,570 Mortgage 1-4 family 1,943 640 4,744 7,327 269,880 277,207 Resort lending 307 — 1,094 1,401 114,619 116,020 Home equity - 1st lien 50 — 187 237 22,327 22,564 Home equity - 2nd lien 439 54 147 640 50,618 51,258 Purchased loans 9 1 2 12 33,245 33,257 Installment Home equity - 1st lien 315 107 106 528 16,707 17,235 Home equity - 2nd lien 231 149 443 823 19,727 20,550 Loans not secured by real estate 567 83 421 1,071 193,680 194,751 Other 15 3 2 20 2,159 2,179 Payment plan receivables Full refund 492 62 2 556 21,294 21,850 Partial refund 415 228 2 645 5,834 6,479 Other 110 3 1 114 6,156 6,270 Total recorded investment $ 5,881 $ 1,555 $ 8,201 $ 15,637 $ 1,504,250 $ 1,519,887 Accrued interest included in recorded investment $ 53 $ 17 $ 2 $ 72 $ 4,765 $ 4,837 Impaired loans are as follows : December 31, 2016 2015 (In thousands) Impaired loans with no allocated allowance TDR $ 1,782 $ 2,518 Non - TDR 1,107 203 Impaired loans with an allocated allowance TDR - allowance based on collateral 3,527 4,810 TDR - allowance based on present value cash flow 72,613 81,002 Non - TDR - allowance based on collateral 491 260 Non - TDR - allowance based on present value cash flow — — Total impaired loans $ 79,520 $ 88,793 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 1,868 $ 2,436 TDR - allowance based on present value cash flow 7,146 8,471 Non - TDR - allowance based on collateral 138 76 Non - TDR - allowance based on present value cash flow — — Total amount of allowance for loan losses allocated $ 9,152 $ 10,983 Impaired loans by class as of December 31 are as follows (1): 2016 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) With no related allowance recorded: Commercial Income producing - real estate $ 517 $ 768 $ — $ 641 $ 851 $ — Land, land development & construction-real estate 31 709 — 818 1,393 — Commercial and industrial 2,341 3,261 — 1,245 1,241 — Mortgage 1-4 family 2 387 — 23 183 — Resort lending — — — — — — Home equity - 1st lien — — — — — — Home equity - 2nd lien — — — — — — Installment Home equity - 1st lien — 66 — — 76 — Home equity - 2nd lien — — — — — — Loans not secured by real estate — — — — — — Other — — — — — — 2,891 5,191 — 2,727 3,744 — 2016 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) With an allowance recorded: Commercial Income producing - real estate 7,737 7,880 554 8,377 9,232 516 Land, land development & construction-real estate 239 244 36 1,690 1,778 296 Commercial and industrial 4,902 5,246 1,654 4,097 4,439 1,896 Mortgage 1-4 family 41,701 43,479 4,100 47,792 49,808 5,132 Resort lending 16,898 16,931 2,453 18,148 18,319 2,662 Home equity - 1st lien 235 242 10 168 172 9 Home equity - 2nd lien 315 398 16 244 325 15 Installment Home equity - 1st lien 1,994 2,117 118 2,364 2,492 143 Home equity - 2nd lien 2,415 2,443 182 2,929 2,951 271 Loans not secured by real estate 504 540 29 587 658 42 Other — — — 8 8 1 76,940 79,520 9,152 86,404 90,182 10,983 Total Commercial Income producing - real estate 8,254 8,648 554 9,018 10,083 516 Land, land development & construction-real estate 270 953 36 2,508 3,171 296 Commercial and industrial 7,243 8,507 1,654 5,342 5,680 1,896 Mortgage 1-4 family 41,703 43,866 4,100 47,815 49,991 5,132 Resort lending 16,898 16,931 2,453 18,148 18,319 2,662 Home equity - 1st lien 235 242 10 168 172 9 Home equity - 2nd lien 315 398 16 244 325 15 Installment Home equity - 1st lien 1,994 2,183 118 2,364 2,568 143 Home equity - 2nd lien 2,415 2,443 182 2,929 2,951 271 Loans not secured by real estate 504 540 29 587 658 42 Other — — — 8 8 1 Total $ 79,831 $ 84,711 $ 9,152 $ 89,131 $ 93,926 $ 10,983 Accrued interest included in recorded investment $ 311 $ 338 (1) There were no impaired payment plan receivables or purchased mortgage loans at December 31, 2016 or 2015. Average recorded investment in and interest income earned on impaired loans by class for the years ended December 31 follows (1): 2016 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial Income producing - real estate $ 609 $ 2 $ 4,520 $ 387 $ 7,660 $ 250 Land, land development & construction-real estate 330 7 952 79 1,145 64 Commercial and industrial 961 54 2,125 257 3,351 152 Mortgage 1-4 family 10 16 19 11 29 — Resort lending — — 12 — 40 1 Home equity - 1st lien — — — — — — Home equity - 2nd lien — — — — — — Installment Home equity - 1st lien — 5 — 5 — 2 Home equity - 2nd lien 3 — — — — — Loans not secured by real estate — — — — — — Other — — — — — — 1,913 84 7,628 739 12,225 469 With an allowance recorded: Commercial Income producing - real estate 8,069 427 12,677 439 12,772 677 Land, land development & construction-real estate 1,129 31 2,219 54 3,939 149 Commercial and industrial 5,723 189 6,663 104 8,500 294 Mortgage 1-4 family 44,923 1,918 50,421 2,140 55,877 2,286 Resort lending 17,544 619 18,448 670 19,458 753 Home equity - 1st lien 226 10 161 8 160 6 Home equity - 2nd lien 248 14 172 13 57 2 Installment Home equity - 1st lien 2,185 147 2,539 176 2,837 174 Home equity - 2nd lien 2,661 162 3,055 193 3,359 188 Loans not secured by real estate 546 35 653 37 719 35 Other 4 — 10 1 14 1 83,258 3,552 97,018 3,835 107,692 4,565 2016 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Total Commercial Income producing - real estate 8,678 429 17,197 826 20,432 927 Land, land development & construction-real estate 1,459 38 3,171 133 5,084 213 Commercial and industrial 6,684 243 8,788 361 11,851 446 Mortgage 1-4 family 44,933 1,934 50,440 2,151 55,906 2,286 Resort lending 17,544 619 18,460 670 19,498 754 Home equity - 1st lien 226 10 161 8 160 6 Home equity - 2nd lien 248 14 172 13 57 2 Installment Home equity - 1st lien 2,185 152 2,539 181 2,837 176 Home equity - 2nd lien 2,664 162 3,055 193 3,359 188 Loans not secured by real estate 546 35 653 37 719 35 Other 4 — 10 1 14 1 Total $ 85,171 $ 3,636 $ 104,646 $ 4,574 $ 119,917 $ 5,034 (1) There were no impaired payment plan receivables or purchased mortgage loans during the years ending December 31, 2016, 2015 and 2014. Our average investment in impaired loans was approximately $85.2 million, $104.6 million and $119.9 million in 2016, 2015 and 2014, respectively. Cash receipts on impaired loans on non-accrual status are generally applied to the principal balance. Interest income recognized on impaired loans was approximately $3.6 million, $4.6 million and $5.0 million in 2016, 2015 and 2014, respectively, of which the majority of these amounts were received in cash and related primarily to performing TDR’s. Troubled debt restructurings at December 31 follow: 2016 Commercial Retail (1) Total (In thousands) Performing TDR's $ 10,560 $ 59,726 $ 70,286 Non-performing TDR's (2) 3,565 4,071 (3) 7,636 Total $ 14,125 $ 63,797 $ 77,922 2015 Commercial Retail (1) Total (In thousands) Performing TDR's $ 13,318 $ 68,194 $ 81,512 Non-performing TDR's (2) 3,041 3,777 (3) 6,818 Total $ 16,359 $ 71,971 $ 88,330 (1) Retail loans include mortgage and installment loan segments. (2) Included in non-performing loans table above. (3) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. We have allocated $9.0 million and $10.9 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2016 and 2015, respectively. We have committed to lend additional amounts totaling up to $0.04 million at both December 31, 2016 and 2015, respectively, to customers with outstanding loans that are classified as troubled debt restructurings. The terms of certain loans were modified as troubled debt restructurings and generally included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan have generally been for periods ranging from 9 months to 36 months but have extended to as much as 480 months in certain circumstances. Modifications involving an extension of the maturity date have generally been for periods ranging from 1 month to 60 months but have extended to as much as 230 months in certain circumstances. Loans that have been classified as troubled debt restructurings during the years ended December 31 follow (1): Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2016 Commercial Income producing - real estate 4 $ 290 $ 290 Land, land development & construction-real estate — — — Commercial and industrial 9 2,044 2,027 Mortgage 1-4 family 9 927 1,004 Resort lending 1 116 117 Home equity - 1st lien 1 107 78 Home equity - 2nd lien 2 77 78 Installment Home equity - 1st lien 6 141 145 Home equity - 2nd lien 6 154 157 Loans not secured by real estate 2 46 46 Other — — — Total 40 $ 3,902 $ 3,942 2015 Commercial Income producing - real estate 2 $ 229 $ 227 Land, land development & construction-real estate — — — Commercial and industrial 17 3,188 2,960 Mortgage 1-4 family 8 1,345 1,128 Resort lending 1 313 307 Home equity - 1st lien 1 20 20 Home equity - 2nd lien 1 27 27 Installment Home equity - 1st lien 6 220 186 Home equity - 2nd lien 8 228 217 Loans not secured by real estate 2 19 25 Other — — — Total 46 $ 5,589 $ 5,097 Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2014 Commercial Income producing - real estate 4 $ 426 $ 389 Land, land development & construction-real estate 2 55 44 Commercial and industrial 13 2,236 1,606 Mortgage 1-4 family 15 1,576 1,570 Resort lending 6 1,583 1,572 Home equity - 1st lien 1 17 14 Home equity - 2nd lien 1 85 84 Installment Home equity - 1st lien 13 631 523 Home equity - 2nd lien 9 400 400 Loans not secured by real estate 6 114 106 Other — — — Total 70 $ 7,123 $ 6,308 (1) There were no payment plan receivables or purchased mortgage loans classified as troubled debt restructurings during the years ending 2016, 2015 and 2014. The troubled debt restructurings described above increased (decreased) the AFLL by $(0.1) million, $0.4 million and $0.2 million during the years ended December 31, 2016, 2015 and 2014, respectively and resulted in charge offs of $0.53 million, $0.16 million and $0.04 million during the years ended December 31, 2016, 2015 and 2014, respectively. Loans that have been classified as troubled debt restructured during the past twelve months and that have subsequently defaulted during the years ended December 31 follows: Number of Contracts Recorded Balance (Dollars in thousands) 2016 Commercial Income producing - real estate — $ — Land, land development & construction-real estate — — Commercial and industrial 1 1,767 Mortgage 1-4 family — — Resort lending — — Home equity - 1st lien — — Home equity - 2nd lien — — Installment Home equity - 1st lien — — Home equity - 2nd lien — — Loans not secured by real estate — — Other — — Total 1 $ 1,767 Number of Contracts Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate — $ — Land, land development & construction-real estate — — Commercial and industrial 2 157 Mortgage 1-4 family 2 73 Resort lending — — Home equity - 1st lien — — Home equity - 2nd lien — — Installment Home equity - 1st lien — — Home equity - 2nd lien — — Loans not secured by real estate 1 4 Other — — Total 5 $ 234 2014 Commercial Income producing - real estate — $ — Land, land development & construction-real estate — — Commercial and industrial 2 319 Mortgage 1-4 family 1 125 Resort lending — — Home equity - 1st lien — — Home equity - 2nd lien — — Installment Home equity - 1st lien — — Home equity - 2nd lien — — Loans not secured by real estate — — Other — — Total 3 $ 444 A loan is generally considered to be in payment default once it is 90 days contractually past due under the modified terms for commercial loans and installment loans and when four consecutive payments are missed for mortgage loans. The troubled debt restructurings that subsequently defaulted described above increased (decreased) the AFLL by $(0.17) million, $(0.03) million and $0.02 million during the years ended December 31, 2016, 2015 and 2014, respectively and resulted in charge offs of $0.51 million, zero and zero during the years ended December 31, 2016, 2015 and 2014, respectively. The terms of certain other loans were modified during the years ending December 31, 2016, 2015 and 2014 that did not meet the definition of a troubled debt restructuring. The modification of these loans could have included modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. In order to determine whether a borrower is experiencing financial difficulty, we perform an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy. Credit Quality Indicators For commercial loans, we use a loan rating system that is similar to those employed by state and federal banking regulators. Loans are graded on a scale of 1 to 12. A description of the general characteristics of the ratings follows: Rating 1 through 6 Rating 7 and 8 Rating 9 Rating 10 and 11 Rating 12 The following table summarizes loan ratings by loan class for our commercial loan segment at December 31: Commercial Non-watch 1-6 Watch 7-8 Substandard Accrual 9 Non- Accrual 10-11 Total (In thousands) 2016 Income producing - real estate $ 282,886 $ 3,787 $ 337 $ 628 $ 287,638 Land, land development and construction - real estate 51,603 67 — 105 51,775 Commercial and industrial 449,365 9,788 2,998 4,431 466,582 Total $ 783,854 $ 13,642 $ 3,335 $ 5,164 $ 805,995 Accrued interest included in total $ 1,915 $ 52 $ 11 $ — $ 1,978 2015 Income producing - real estate $ 296,898 $ 6,866 $ 1,423 $ 1,027 $ 306,214 Land, land development and construction - real estate 40,844 2,995 243 401 44,483 Commercial and industrial 371,357 19,502 6,683 2,028 399,570 Total $ 709,099 $ 29,363 $ 8,349 $ 3,456 $ 750,267 Accrued interest included in total $ 1,729 $ 108 $ 32 $ — $ 1,869 For each of our mortgage and installment segment classes we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated semi-annually. The following tables summarize credit scores by loan class for our mortgage and installment loan segments at December 31: Mortgage (1) 1-4 Family Resort Lending Home Equity 1st Lien Home Equity 2nd Lien Purchased Loans Total (In thousands) 2016 800 and above $ 36,534 $ 10,484 $ 6,048 $ 8,392 $ 8,462 $ 69,920 750-799 102,382 41,999 10,006 20,113 20,984 195,484 700-749 69,337 24,727 5,706 12,360 9,115 121,245 650-699 50,621 13,798 4,106 8,167 437 77,129 600-649 25,270 5,769 1,674 3,067 — 35,780 550-599 13,747 3,030 455 1,699 — 18,931 500-549 9,215 1,438 486 981 — 12,120 Under 500 5,145 92 255 279 — 5,771 Unknown 2,290 1,711 280 179 139 4,599 Total $ 314,541 $ 103,048 $ 29,016 $ 55,237 $ 39,137 $ 540,979 Accrued interest included in total $ 1,466 $ 450 $ 111 $ 226 $ 111 $ 2,364 2015 800 and above $ 28,760 $ 13,943 $ 4,374 $ 7,696 $ 2,310 $ 57,083 750-799 78,802 40,888 7,137 17,405 23,283 167,515 700-749 56,519 31,980 4,341 11,022 6,940 110,802 650-699 51,813 17,433 3,203 7,691 — 80,140 600-649 27,966 4,991 1,467 3,684 — 38,108 550-599 16,714 3,070 1,027 1,918 — 22,729 500-549 10,610 1,051 572 1,295 — 13,528 Under 500 4,708 554 244 265 — 5,771 Unknown 1,315 2,110 199 282 724 4,630 Total $ 277,207 $ 116,020 $ 22,564 $ 51,258 $ 33,257 $ 500,306 Accrued interest included in total $ 1,396 $ 477 $ 87 $ 196 $ 114 $ 2,270 (1) Credit scores have been updated within the last twelve months. Installment (1) Home Equity 1st Lien Home Equity 2nd Lien Loans not Secured by Real Estate Other Total (In thousands) 2016 800 and above $ 1,354 $ 1,626 $ 53,281 $ 86 $ 56,347 750-799 2,478 3,334 107,460 793 114,065 700-749 1,920 2,686 43,456 821 48,883 650-699 2,852 2,541 19,053 624 25,070 600-649 1,691 1,775 4,638 298 8,402 550-599 1,231 1,063 1,942 53 4,289 500-549 981 692 1,095 45 2,813 Under 500 114 220 276 24 634 Unknown 29 21 5,800 34 5,884 Total $ 12,650 $ 13,958 $ 237,001 $ 2,778 $ 266,387 Accrued interest included in total $ 54 $ 59 $ 638 $ 20 $ 771 Installment (1) Home Equity 1st Lien Home Equity 2nd Lien Loans not Secured by Real Estate Other Total (In thousands) 2015 800 and above $ 1,792 $ 1,782 $ 44,254 $ 58 $ 47,886 750-799 4,117 5,931 86,800 531 97,379 700-749 2,507 3,899 34,789 694 41,889 650-699 3,508 4,182 16,456 499 24,645 600-649 2,173 2,153 4,979 200 9,505 550-599 1,800 1,346 1,997 109 5,252 500-549 1,056 855 1,170 61 3,142 Under 500 223 370 385 23 1,001 Unknown 59 32 3,921 4 4,016 Total $ 17,235 $ 20,550 $ 194,751 $ 2,179 $ 234,715 Accrued interest included in total $ 78 $ 83 $ 520 $ 17 $ 698 (1) Credit scores have been updated within the last twelve months. Mepco is a wholly-owned subsidiary of our Bank that operates a vehicle service contract payment plan business throughout the United States. As discussed in note #1 all payment plan receivables have been reclassified to held for sale at December 31, 2016. In addition, see note #11 for more information about Mepco’s business. As of December 31, 2015, approximately 63.2% of Mepco’s outstanding payment plan receivables related to programs in which a third party insurer or risk retention group was obligated to pay Mepco the full refund owing upon cancellation of the related service contract (including with respect to both the portion funded to the service contract seller and the portion funded to the administrator). These receivables are shown as “Full Refund” in the table below. Another approximately 18.7% of Mepco’s outstanding payment plan receivables as of December 31, 2015, related to programs in which a third party insurer or risk retention group is obligated to pay Mepco the refund owing upon cancellation only with respect to the unearned portion previously funded by Mepco to the administrator (but not to the service contract seller). These receivables are shown as “Partial Refund” in the table below. The balance of Mepco’s outstanding payment plan receivables related to programs in which there was no insurer or risk retention group that had any contractual liability to Mepco for any portion of the refund amount. These receivables are shown as “Other” in the table below. For each class of our payment plan receivables we monitored financial information on the counterparties as we evaluated the credit quality of this portfolio. The following table summarizes credit ratings of insurer or risk retention group counterparties by class of payment plan receivable at December 31: Payment Plan Receivables Full Refund Partial Refund Other Total (In thousands) 2015 AM Best rating A+ $ — $ 6 $ — $ 6 A 2,712 5,203 — 7,915 A- 3,418 1,177 6,265 10,860 Not rated 15,720 93 5 15,818 Total $ 21,850 $ 6,479 $ 6,270 $ 34,599 Although Mepco has contractual recourse against various counterparties for refunds owing upon cancellation of vehicle service contracts, see note #11 below regarding certain risks and difficulties associated with collecting these refunds. Mortgage loans serviced for others are not reported as assets on the Consolidated Statements of Financial Condition. The principal balances of these loans at December 31 follow: 2016 2015 (In thousands) Mortgage loans serviced for: Fannie Mae $ 944,703 $ 898,443 Freddie Mac 622,885 707,891 Ginnie Mae 85,290 37,884 Other 6,115 107 Total $ 1,658,993 $ 1,644,325 Custodial deposit accounts maintained in connection with mortgage loans serviced for others totaled $18.9 million and $21.8 million, at December 31, 2016 and 2015, respectively. If we do not remain well capitalized for regulatory purposes (see note #20), meet certain minimum capital levels or certain profitability requirements or if we incur a rapid decline in net worth, we could lose our ability to sell and/or service loans to these investors. This could impact our ability to generate gains on the sale of loans and generate servicing income. A forced liquidation of our servicing portfolio could also impact the value that could be recovered on this asset. Fannie Mae has the most stringent eligibility requirements covering capital levels, profitability and decline in net worth. Fannie Mae requires seller/servicers to be well capitalized for regulatory purposes. For the profitability requirement, we cannot record four or more consecutive quarterly losses and experience a 30% decline in net worth over the same period. Finally, our net worth cannot decline by more than 25% in one quarter or more than 40% over two consecutive quarters. The highest level of capital we are required to maintain is at least $2.5 million plus 0.25% of loans serviced for Freddie Mac. An analysis of capitalized mortgage loan servicing rights for the years ended December 31 follows: 2016 2015 2014 (In thousands) Balance at beginning of year $ 12,436 $ 12,106 $ 13,710 Originated servicing rights capitalized 3,119 2,697 1,823 Amortization (2,850 ) (2,868 ) (2,509 ) Change in valuation allowance 966 501 (918 ) Balance at end of year $ 13,671 $ 12,436 $ 12,106 Valuation allowance $ 2,306 $ 3,272 $ 3,773 Loans sold and serviced that have had servicing rights capitalized $ 1,657,996 $ 1,643,086 $ 1,661,269 The fair value of capitalized mortgage loan servicing rights was $14.2 million and $12.9 million at December 31, 2016 and 2015, respectively. Fair value was determined using an average coupon rate of 4.20%, average servicing fee of 0.256%, average discount rate of 10.07% and an average Public Securities Association (“PSA”) prepayment rate of 175 for December 31, 2016; and an average coupon rate of 4.32%, average servicing fee of 0.254%, average discount rate of 10.04% and an average PSA prepayment rate of 203 for December 31, 2015.

OTHER REAL ESTATE

OTHER REAL ESTATE	12 Months Ended
	Dec. 31, 2016
OTHER REAL ESTATE [Abstract]
OTHER REAL ESTATE	NOTE 5 – OTHER REAL ESTATE A summary of other real estate activity for the years ended December 31 follows (1): 2016 2015 2014 (In thousands) Balance at beginning of year, net of valuation allowance $ 7,070 $ 6,370 $ 18,088 Loans transferred to other real estate 2,355 6,694 6,143 Sales of other real estate (3,596 ) (5,502 ) (17,198 ) Additions to valuation allowance charged to expense (873 ) (492 ) (663 ) Balance at end of year, net of valuation allowance $ 4,956 $ 7,070 $ 6,370 (1) Table excludes other repossessed assets totaling $0.05 and $0.08 million at December 31, 2016 and 2015, respectively. We periodically review our real estate properties and establish valuation allowances on these properties if values have declined since the date of acquisition. An analysis of our valuation allowance for other real estate follows: 2016 2015 2014 (In thousands) Balance at beginning of year $ 1,692 $ 2,511 $ 4,047 Additions charged to expense 873 492 663 Direct write-downs upon sale (1,772 ) (1,311 ) (2,199 ) Balance at end of year $ 793 $ 1,692 $ 2,511 At December 31, 2016 and 2015, the balance of other real estate includes $1.9 million and $2.8 million of foreclosed residential real estate properties. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $1.0 million and $1.1 million at December 31, 2016 and 2015, respectively. Other real estate and repossessed assets totaling $5.0 million and $7.2 million at December 31, 2016 and 2015, respectively, are presented net of the valuation allowance on the Consolidated Statements of Financial Condition.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
PROPERTY AND EQUIPMENT [Abstract]
PROPERTY AND EQUIPMENT	NOTE 6 – PROPERTY AND EQUIPMENT A summary of property and equipment at December 31 follows: 2016 2015 (In thousands) Land $ 15,486 $ 15,152 Buildings 54,656 57,638 Equipment 72,090 79,842 142,232 152,632 Accumulated depreciation and amortization (102,057 ) (109,529 ) Property and equipment, net $ 40,175 $ 43,103 Depreciation expense was $5.8 million, $6.6 million and $6.7 million in 2016, 2015 and 2014, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
INTANGIBLE ASSETS [Abstract]
INTANGIBLE ASSETS	NOTE 7 – INTANGIBLE ASSETS Intangible assets, net of amortization, at December 31 follows: 2016 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 6,118 $ 4,186 $ 6,118 $ 3,838 Intangible amortization expense was $0.3 million, $0.3 million and $0.5 million in 2016, 2015 and 2014, respectively. A summary of estimated core deposit intangible amortization at December 31, 2016, follows: (In thousands) 2017 $ 346 2018 346 2019 346 2020 346 2021 346 2022 and thereafter 202 Total $ 1,932

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2016
DEPOSITS [Abstract]
DEPOSITS	NOTE 8 – DEPOSITS A summary of interest expense on deposits for the years ended December 31 follows: 2016 2015 2014 (In thousands) Savings and interest bearing checking $ 1,115 $ 1,056 $ 1,064 Time deposits under $100,000 1,628 1,586 2,467 Time deposits of $100,000 or more 2,198 1,367 1,436 Total $ 4,941 $ 4,009 $ 4,967 Aggregate time deposits in denominations of $250,000 or more amounted to $174.6 million and $110.4 million at December 31, 2016 and 2015, respectively. A summary of the maturity of time deposits at December 31, 2016, follows: (In thousands) 2017 $ 363,382 2018 74,019 2019 19,838 2020 11,341 2021 15,685 2022 and thereafter 853 Total $ 485,118 Reciprocal deposits totaled $38.7 million and $50.2 million at December 31, 2016 and 2015, respectively. These deposits represent demand, money market and time deposits from our customers that have been placed through Promontory Interfinancial Network’s Insured Cash Sweep® service and Certificate of Deposit Account Registry Service®. These services allow our customers to access multi-million dollar FDIC deposit insurance on deposit balances greater than the standard FDIC insurance maximum. A summary of reciprocal deposits at December 31 follows: 2016 2015 (In thousands) Demand $ 3,055 $ 3,436 Money market 4,350 8,340 Time 31,252 38,431 Total $ 38,657 $ 50,207

OTHER BORROWINGS

OTHER BORROWINGS	12 Months Ended
	Dec. 31, 2016
OTHER BORROWINGS [Abstract]
OTHER BORROWINGS	NOTE 9 – OTHER BORROWINGS A summary of other borrowings at December 31 follows: 2016 2015 (In thousands) Advances from the FHLB $ 9,428 $ 11,949 Other 5 5 Total $ 9,433 $ 11,954 Advances from the FHLB are secured by unencumbered qualifying mortgage and home equity loans with a market value equal to at least 135% to 174%, respectively, of outstanding advances. Advances are also secured by FHLB stock that we own, which totaled $7.8 million at December 31, 2016. Unused borrowing capacity with the FHLB (subject to the FHLB’s credit requirements and policies) was $205.3 million at December 31, 2016. Interest expense on advances amounted to $0.8 million, $0.8 million and $0.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. No FHLB advances were terminated during 2016, 2015 or 2014. As a member of the FHLB, we must own FHLB stock equal to the greater of 1.0% of the unpaid principal balance of residential mortgage loans or 5.0% of our outstanding advances. At December 31, 2016, we were in compliance with the FHLB stock ownership requirements. The maturity dates and weighted average interest rates of FHLB advances at December 31 follow: 2016 2015 Amount Rate Amount Rate (Dollars in thousands) Fixed-rate advances 2016 $ 2,089 6.55 % 2017 $ 1,192 7.04 % 1,258 7.04 2018 5,183 5.99 5,437 5.99 2019 — — 2020 3,053 7.49 3,165 7.49 Total advances $ 9,428 6.61 % $ 11,949 6.59 % A summary of contractually required repayments of FHLB advances at December 31, 2016 follow: (In thousands) 2017 $ 1,587 2018 5,042 2019 143 2020 2,656 Total $ 9,428 We had no borrowings outstanding with the FRB during the years ended or at December 31, 2016, 2015 or 2014. We had unused borrowing capacity with the FRB (subject to the FRB’s credit requirements and policies) of $391.2 million at December 31, 2016. Collateral for FRB borrowings are certain commercial loans. Assets, consisting of FHLB stock and loans, pledged to secure other borrowings and unused borrowing capacity totaled $904.6 million at December 31, 2016.

SUBORDINATED DEBENTURES

SUBORDINATED DEBENTURES	12 Months Ended
	Dec. 31, 2016
SUBORDINATED DEBENTURES [Abstract]
SUBORDINATED DEBENTURES	NOTE 10 – SUBORDINATED DEBENTURES We have formed various special purpose entities (the “trusts”) for the purpose of issuing trust preferred securities in either public or pooled offerings or in private placements. Independent Bank Corporation owns all of the common stock of each trust and has issued subordinated debentures to each trust in exchange for all of the proceeds from the issuance of the common stock and the trust preferred securities. Trust preferred securities totaling $34.5 million at both December 31, 2016 and 2015, respectively, qualified as Tier 1 regulatory capital. These trusts are not consolidated with Independent Bank Corporation and accordingly, we report the common securities of the trusts held by us in accrued income and other assets and the subordinated debentures that we have issued to the trusts in the liability section of our Consolidated Statements of Financial Condition. Summary information regarding subordinated debentures as of December 31 follows: 2016 and 2015 Entity Name Issue Date Subordinated Debentures Trust Preferred Securities Issued Common Stock Issued (In thousands) IBC Capital Finance III May 2007 $ 12,372 $ 12,000 $ 372 IBC Capital Finance IV September 2007 15,465 15,000 465 Midwest Guaranty Trust I November 2002 7,732 7,500 232 $ 35,569 $ 34,500 $ 1,069 Other key terms for the subordinated debentures and trust preferred securities that were outstanding at December 31, 2016 and 2015 follow: Entity Name Maturity Date Interest Rate First Permitted Redemption Date IBC Capital Finance III July 30, 2037 3 month LIBOR plus 1.60% July 30, 2012 IBC Capital Finance IV September 15, 2037 3 month LIBOR plus 2.85% September 15, 2012 Midwest Guaranty Trust I November 7, 2032 3 month LIBOR plus 3.45% November 7, 2007 The subordinated debentures and trust preferred securities are cumulative and have a feature that permits us to defer distributions (payment of interest) from time to time for a period not to exceed 20 consecutive quarters. Interest is payable quarterly on each of the subordinated debentures and trust preferred securities and no distributions were deferred at December 31, 2016 and 2015. We have the right to redeem the subordinated debentures and trust preferred securities (at par) in whole or in part from time to time on or after the first permitted redemption date specified above or upon the occurrence of specific events defined within the trust indenture agreements. During 2014, we redeemed trust preferred securities issued by IBC Capital Finance IV with a par value of $5.0 million. These trust preferred securities were redeemed at a discount of $0.5 million and we recognized a gain on extinguishment of debt in our Consolidated Statements of Operations for this same amount. Issuance costs have been capitalized and are being amortized on a straight- line basis over a period not exceeding 30 years and are included in interest expense in the Consolidated Statements of Operations. Distributions (payment of interest) on the trust preferred securities are also included in interest expense – other borrowings in the Consolidated Statements of Operations.

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 11 – COMMITMENTS AND CONTINGENT LIABILITIES In the normal course of business, we enter into financial instruments with off-balance sheet risk to meet the financing needs of customers or to reduce exposure to fluctuations in interest rates. These financial instruments may include commitments to extend credit and standby letters of credit. Financial instruments involve varying degrees of credit and interest-rate risk in excess of amounts reflected in the Consolidated Statements of Financial Condition. Exposure to credit risk in the event of non-performance by the counterparties to the financial instruments for loan commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. We do not, however, anticipate material losses as a result of these financial instruments. A summary of financial instruments with off-balance sheet risk at December 31 follows: 2016 2015 (In thousands) Financial instruments whose risk is represented by contract amounts Commitments to extend credit $ 364,270 $ 243,458 Standby letters of credit 3,140 3,582 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 generally require payment of a fee. Since commitments may expire without being drawn upon, the commitment amounts do not represent future cash requirements. Commitments are issued subject to similar underwriting standards, including collateral requirements, as are generally involved in the extension of credit facilities. Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in such transactions is essentially the same as that involved in extending loan facilities and, accordingly, standby letters of credit are issued subject to similar underwriting standards, including collateral requirements, as are generally involved in the extension of credit facilities. The majority of the standby letters of credit are to corporations, have variable rates that range from 0.60% to 8.25% and mature through 2018. In December 2016, we reached a tentative settlement regarding litigation initiated against us in Wayne County, Michigan Circuit Court. This litigation concerned checking account transaction sequencing during a period from February 2009 to June 2011. Under the terms of the settlement, we have agreed to pay $2.2 million and are also responsible for class notification costs and certain other expenses which are estimated to total approximately $0.1 million. Although, we deny any liability associated with this matter and believe we have meritorious defenses to the allegations in the complaint, given the costs and uncertainty of litigation, it was determined that this settlement was in the best interests of the organization. We are also involved in various other litigation matters in the ordinary course of business. At the present time, we do not believe any of these other matters will have a significant impact on our consolidated financial position or results of operations. The aggregate amount we have accrued for losses we consider probable as a result of these other litigation matters is immaterial. However, because of the inherent uncertainty of outcomes from any litigation matter, we believe it is reasonably possible we may incur losses in addition to the amounts we have accrued. At this time, we estimate the maximum amount of additional losses that are reasonably possible is approximately $0.3 million. However, because of a number of factors, including the fact that certain of these other litigation matters are still in their early stages, this maximum amount may change in the future. The litigation matters described in the preceding paragraph primarily include claims that have been brought against us for damages, but do not include litigation matters where we seek to collect amounts owed to us by third parties (such as litigation initiated to collect delinquent loans). These excluded, collection-related matters may involve claims or counterclaims by the opposing party or parties, but we have excluded such matters from the disclosure contained in the preceding paragraph in all cases where we believe the possibility of us paying damages to any opposing party is remote. Risks associated with the likelihood that we will not collect the full amount owed to us, net of reserves, are disclosed elsewhere in this report. Mepco conducts its payment plan business activities across the United States. Mepco acquires the payment plans from companies (which we refer to as Mepco’s “counterparties”) at a discount from the face amount of the payment plan. Each payment plan (which are classified as payment plan receivables in our Consolidated Statements of Financial Condition) permits a consumer to purchase a vehicle service contract by making installment payments, generally for a term of 12 to 30 months, to the sellers of those contracts (one of the “counterparties”). Mepco thereafter collects the payments from consumers. In acquiring the payment plan, Mepco generally funds a portion of the cost to the seller of the service contract and a portion of the cost to the administrator of the service contract. The administrator, in turn, pays the necessary contractual liability insurance policy (“CLIP”) premium to the insurer or risk retention group. Consumers are allowed to voluntarily cancel the service contract at any time and are generally entitled to receive a refund from the administrator of the unearned portion of the service contract at the time of cancellation. As a result, while Mepco does not owe any refund to the consumer, it also does not have any recourse against the consumer for nonpayment of a payment plan and therefore does not evaluate the creditworthiness of the individual consumer. If a consumer stops making payments on a payment plan or exercises the right to voluntarily cancel the service contract, the service contract seller and administrator are each obligated to refund to Mepco the amount necessary to make Mepco whole as a result of its funding of the service contract. In addition, the insurer or risk retention group that issued the CLIP for the service contract often guarantees all or a portion of the refund to Mepco. Upon the cancellation of a service contract and the completion of the billing process to the counterparties for amounts due to Mepco, there is a decrease in the amount of “payment plan receivables” and an increase in the amount of “vehicle service contract counterparty receivables” until such time as the amount due from the counterparty is collected. These amounts represent funds actually due to Mepco from its counterparties for cancelled service contracts. Mepco is currently in the process of working to recover these receivables, primarily through negotiated settlements with the counterparties. In some cases, Mepco requires collateral or guaranties by the principals of the counterparties to secure these refund obligations; however, this is generally only the case when no insurance company is involved to guarantee the repayment obligation of the seller and administrator counterparties. In most cases, there is no collateral to secure the counterparties’ refund obligations to Mepco, but Mepco has the contractual right to offset unpaid refund obligations against amounts Mepco would otherwise be obligated to fund to the counterparties. In addition, even when collateral is involved, the refund obligations of these counterparties are not fully secured. Mepco incurs losses when it is unable to fully recover funds owed to it by counterparties upon cancellation of the underlying service contracts. The sudden failure of one of Mepco’s major counterparties (an insurance company, administrator, or seller/dealer) could expose us to significant losses. When counterparties do not honor their contractual obligations to Mepco to repay funds, we recognize estimated losses. Mepco pursues collection (including commencing legal action if necessary) of funds due to it under its various contracts with counterparties. Mepco has had to initiate litigation against certain counterparties, including third party insurers, to collect amounts owed to Mepco as a result of those parties’ dispute of their contractual obligations to Mepco. During the first quarter of 2016, we settled our last significant remaining litigation matter with certain of Mepco’s counterparties. This settlement resulted in our receipt of a cash payment of $4.0 million on March 31, 2016. This settlement also resulted in our receipt of an interest-bearing promissory note from one of Mepco’s counterparties for $1.5 million with monthly payments scheduled over a five-year period beginning in May 2016. Due to the lack of any payment history and limited financial information on this counterparty, we established a full reserve on this promissory note as of March 31, 2016. A full reserve on the remaining balance ($1.3 million) on this note was maintained at December 31, 2016. Thus far, this counterparty has made all required monthly payments on the note. As a longer-term payment history is developed on this note, we will continue to evaluate the need for all or any part of a reserve. Vehicle service contract counterparty receivables, net totaled $2.3 million as of December 31, 2016 compared to $7.2 million as of December 31, 2015. For 2016, 2015 and 2014, non-interest expenses include $(0.1) million, $0.1 million and $0.2 million, respectively, of (recoveries) charges related to vehicle service contract counterparty contingencies. These (recoveries) charges are being classified in non-interest expense – other in the Consolidated Statements of Operations because they are associated with a default or potential default of a contractual obligation under our counterparty contracts as opposed to loss on the administration of the payment plan itself. Our estimate of probable incurred losses from vehicle service contract counterparty contingencies requires a significant amount of judgment because a number of factors can influence the amount of loss that we may ultimately incur. These factors include our estimate of future cancellations of vehicle service contracts, our evaluation of collateral that may be available to recover funds due from our counterparties, and our assessment of the amount that may ultimately be collected from counterparties in connection with their contractual obligations. We apply a rigorous process, based upon historical payment plan activity and past experience, to estimate probable incurred losses and quantify the necessary reserves for our vehicle service contract counterparty contingencies, but there can be no assurance that our modeling process will successfully identify all such losses. We believe our assumptions regarding the collection of vehicle service contract counterparty receivables are reasonable, and we based them on our good faith judgments using data currently available. We also believe the current amount of reserves we have established and the vehicle service contract counterparty contingencies expense that we have recorded are appropriate given our estimate of probable incurred losses at the applicable Consolidated Statement of Financial Condition date. However, because of the uncertainty surrounding the numerous and complex assumptions made, actual losses could exceed the charges we have taken to date. An analysis of our vehicle service contract counterparty receivable, net follows: 2016 2015 2014 (In thousands) Balance at beginning of year, net of reserve $ 7,229 $ 7,237 $ 7,716 Transfers in from payment plan receivables 200 1,203 180 Reserves (established) reversed and charge-offs recorded to expense 88 (119 ) (199 ) Recovery of previously charged-off receivable 1,500 — — Reserve established on previously charged-off receivable (1,500 ) — — Transferred from contingency reserves (38 ) — (75 ) Transfer to held for sale (422 ) — — Cash received (4,786 ) (1,092 ) (385 ) Balance at end of year, net of reserve $ 2,271 $ 7,229 $ 7,237 Reserve at end of year $ 1,437 $ 56 $ 1,370 An analysis of our vehicle service contract counterparty reserve follows: 2016 2015 2014 (In thousands) Balance at beginning of year $ 56 $ 1,370 $ 1,375 Additions (recoveries) recorded to expense (88 ) 119 199 Reserve established on previously charged-off receivable 1,500 — — Charge-offs, net (31 ) (1,433 ) (204 ) Balance at end of year $ 1,437 $ 56 $ 1,370 In connection with our pending sale of Mepco (see note #1), we agreed to contractually indemnify the purchaser from certain losses it may incur, including as a result of its failure to collect certain receivables it purchased as part of the business as well as breaches of representations and warranties we made in the sale agreement, subject to various limitations. We have not accrued any liability related to these indemnification requirements in our December 31, 2016 Consolidated Statement of Financial Condition because we believe the likelihood of having to pay any amount as a result of these indemnification obligations is remote. However, if the purchaser is unable to collect the receivables it purchased from Mepco or otherwise encounters difficulties in operating the business, it is possible it could make one or more claims against us pursuant to the sale agreement. In that event, we may incur expenses in defending any such claims and/or amounts paid to such purchaser to resolve such claims. The provision for loss reimbursement on sold loans represents our estimate of incurred losses related to mortgage loans that we have sold to investors (primarily Fannie Mae, Freddie Mac and Ginnie Mae). Since we sell mortgage loans without recourse, loss reimbursements only occur in those instances where we have breached a representation or warranty or other contractual requirement related to the loan sale. The provision for loss reimbursement on sold loans was an expense (credit) of $0.03 million, $(0.06) million and $(0.47) million for the years ended December 31, 2016, 2015 and 2014, respectively. The small expense in 2016 is primarily due to establishing specific reserves for pending loss reimbursement claims. The credit provisions in 2015 and 2014 are due primarily to the settlements of certain loss reimbursement claims at lower amounts than what had been specifically reserved for at the end of the respective previous period. The reserve for loss reimbursements on sold mortgage loans totaled $0.6 million and $0.5 million at December 31, 2016 and 2015, respectively. This reserve is included in accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. This reserve is based on an analysis of mortgage loans that we have sold which are further categorized by delinquency status, loan to value, and year of origination. The calculation includes factors such as probability of default, probability of loss reimbursement (breach of representation or warranty) and estimated loss severity. The reserve levels at December 31, 2016 and 2015 also reflect the resolution of the mortgage loan origination years of 2000 to 2008 with Fannie Mae and Freddie Mac. We believe that the amounts that we have accrued for incurred losses on sold mortgage loans are appropriate given our analyses. However, future losses could exceed our current estimate.

SHAREHOLDERS' EQUITY AND INCOME

SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE	12 Months Ended
	Dec. 31, 2016
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE [Abstract]
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE	NOTE 12 – SHAREHOLDERS’ EQUITY AND INCOME PER COMMON SHARE On January 21, 2016 and 2015, our Board of Directors authorized share repurchase plans to buy back up to 5% of our outstanding common stock through the end of each respective year. On April 26, 2016 our Board of Directors authorized a $5.0 million expansion of the 2016 repurchase plan. During 2016 and 2015 repurchases were made through open market transactions and totaled 1,153,136 and 967,199 shares of common stock, respectively for an aggregate purchase price of $16.9 million and $13.5 million, respectively. On November 15, 2011, we entered into a Tax Benefits Preservation Plan (the “Preservation Plan”) with our stock transfer agent, American Stock Transfer & Trust Company. Our Board of Directors adopted the Preservation Plan in an effort to protect the value to our shareholders of our ability to use deferred tax assets, such as net operating loss carry forwards, to reduce potential future federal income tax obligations. Under federal tax rules, this value could be lost in the event we experienced an “ownership change,” as defined in Section 382 of the federal Internal Revenue Code. The Preservation Plan attempted to protect this value by reducing the likelihood that we would experience such an ownership change by discouraging any person who is not already a 5% shareholder from becoming a 5% shareholder (with certain limited exceptions). On October 25, 2016, the Board of Directors took affirmative action to not renew the Preservation Plan, which expired on November 15, 2016. None of the Rights had been exercised or had become exercisable because no unpermitted 4.99% or more change in the beneficial ownership of the outstanding common stock had occurred. A reconciliation of basic and diluted net income per common share for the years ended December 31 follows: 2016 2015 2014 (In thousands, except per share amounts) Net income $ 22,766 $ 20,017 $ 18,021 Weighted average shares outstanding (1) 21,378 22,716 22,927 Effect of stock options 151 119 124 Stock units for deferred compensation plan for non-employee directors 115 112 114 Performance share units 48 — — Restricted stock units 35 233 306 Weighted average shares outstanding for calculation of diluted earnings per share 21,727 23,180 23,471 Net income per common share Basic (1) $ 1.06 $ 0.88 $ 0.79 Diluted $ 1.05 $ 0.86 $ 0.77 (1) Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. Weighted average stock options outstanding that were not considered in computing diluted net income per common share because they were anti-dilutive totaled zero, 0.03 million and 0.03 million for 2016, 2015 and 2014, respectively.

INCOME TAX

INCOME TAX	12 Months Ended
	Dec. 31, 2016
INCOME TAX [Abstract]
INCOME TAX	NOTE 13 – INCOME TAX The composition of income tax expense for the years ended December 31 follows: 2016 2015 2014 (In thousands) Current expense (benefit) $ 362 $ 200 $ (359 ) Deferred expense 9,756 9,128 7,672 Valuation allowance - change in estimate 17 35 (118 ) Income tax expense $ 10,135 $ 9,363 $ 7,195 Income tax expense includes income taxes in a variety of other states due primarily to Mepco’s operations. The amounts of such state income taxes were an expense (benefit) of $(0.1) million, $(0.1) million and zero in 2016, 2015 and 2014, respectively. The deferred income tax expense of $9.8 million, $9.1 million and $7.7 million during 2016, 2015 and 2014 can be primarily attributed to the utilization of our net operating loss (“NOL”) carryfoward and decrease in our AFLL. A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate of 35% in each year presented to the income before income tax for the years ended December 31 follows: 2016 2015 2014 (In thousands) Statutory rate applied to income before income tax $ 11,515 $ 10,283 $ 8,826 Tax-exempt income (534 ) (434 ) (522 ) Bank owned life insurance (477 ) (449 ) (480 ) Share-based compensation (348 ) — — Unrecognized tax benefit (155 ) (135 ) (595 ) Non-deductible meals, entertainment and memberships 46 43 53 Net change in valuation allowance 17 35 (118 ) Other, net 71 20 31 Income tax expense $ 10,135 $ 9,363 $ 7,195 As described in Note #1, we adopted ASU 2016-09, “Compensation – Stock Compensation (718) Improvements to Employee Share-Based Payment Accounting” during the second quarter of 2016 which now requires us to recognize for book purposes either income tax expense or benefit on deficiencies / excess benefits relating to share-based compensation. Included in income tax expense for the year ended December 31, 2016 are tax benefits of $0.3 million due to the vesting of certain share-based compensation grants and the exercise of stock options during the period. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow: 2016 2015 (In thousands) Deferred tax assets Loss carryforwards $ 17,131 $ 25,516 Allowance for loan losses 7,104 7,901 Alternative minimum tax credit carry forward 4,064 3,427 Property and equipment 3,143 3,369 Unrealized loss on securities available for sale 1,782 128 Purchase premiums, net 1,460 1,755 Share based payments 1,011 786 Litigation settlement 805 — 2016 2015 (In thousands) Vehicle service contract counterparty contingency reserve 500 21 Unrealized loss on trading securities 486 578 Other than temporary impairment charge on securities available for sale 400 382 Deferred compensation 375 404 Valuation allowance on other real estate 277 592 Non accrual loan interest income 246 232 Reserve for unfunded lending commitments 228 228 Loss reimbursement on sold loans reserve 196 186 Other 1 — Gross deferred tax assets 39,209 45,505 Valuation allowance (1,071 ) (1,054 ) Gross deferred tax assets, net of valuation allowance 38,138 44,451 Deferred tax liabilities Capitalized mortgage loan servicing rights 4,785 4,353 Deferred loan fees 490 256 Federal Home Loan Bank stock 45 45 Other — 162 Gross deferred tax liabilities 5,320 4,816 Deferred tax assets, net $ 32,818 $ 39,635 We assess whether a valuation allowance should be established against our deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. The ultimate realization of this asset is primarily based on generating future income. We concluded at both December 31, 2016 and 2015, that the realization of substantially all of our deferred tax assets continues to be more likely than not. The valuation allowance against our deferred tax assets totaled $1.1 million at both December 31, 2016 and 2015. The valuation allowance against our deferred tax assets at December 31, 2016 primarily relates to state income taxes from Mepco. In this instance, we determined that the future realization of these particular deferred tax assets was not more likely than not. This conclusion in 2016 was based on the pending sale of Mepco’s payment plan business and in 2015 was primarily based on the uncertainty of Mepco’s future earnings attributable to particular states (given the various apportionment criteria) and the significant reduction in the size of Mepco’s business. Because of our NOL and tax credit carryforwards, we are still subject to the rules of Section 382 of the Internal Revenue Code of 1986, as amended. An ownership change, as defined by these rules, would negatively affect our ability to utilize our NOL carryforwards and other deferred tax assets in the future. If such an ownership change were to occur, we may suffer higher-than-anticipated tax expense, and consequently lower net income and cash flow, in those future years. At December 31, 2016, we had federal NOL carryforwards of approximately $46.0 million which, if not used against taxable income, will expire as follows: (In thousands) 2031 $ 8,301 2032 37,739 Total $ 46,040 In addition to the amounts in the table above we also had a minor amount of state NOL carryforwards in certain states where Mepco operates. In addition, we had $4.1 million of alternative minimum tax credit carryforwards with indefinite lives at December 31, 2016. Changes in unrecognized tax benefits for the years ended December 31 follow: 2016 2015 2014 (In thousands) Balance at beginning of year $ 976 $ 1,091 $ 1,672 Additions based on tax positions related to the current year 19 20 18 Reductions due to the statute of limitations (155 ) (135 ) (595 ) Reductions due to settlements — — (4 ) Balance at end of year $ 840 $ 976 $ 1,091 If recognized, the entire amount of unrecognized tax benefits, net of $0.3 million of federal tax on state benefits, would affect our effective tax rate. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No amounts were expensed for interest and penalties for the years ended December 31, 2016, 2015 and 2014. No amounts were accrued for interest and penalties at December 31, 2016, 2015 or 2014. At December 31, 2016, U.S. Federal tax years 2013 through the present remain open to examination.

SHARE BASED COMPENSATION AND BE

SHARE BASED COMPENSATION AND BENEFIT PLANS	12 Months Ended
	Dec. 31, 2016
SHARE BASED COMPENSATION AND BENEFIT PLANS [Abstract]
SHARE BASED COMPENSATION AND BENEFIT PLANS	NOTE 14 – SHARE BASED COMPENSATION AND BENEFIT PLANS We maintain share based payment plans that include a non-employee director stock purchase plan and a long-term incentive plan that permits the issuance of share based compensation, including stock options and non-vested share awards. The long-term incentive plan, which is shareholder approved, permits the grant of additional share based awards for up to 0.2 million shares of common stock as of December 31, 2016. The non-employee director stock purchase plan permits the grant of additional share based payments for up to 0.2 million shares of common stock as of December 31, 2016. Share based awards and payments are measured at fair value at the date of grant and are expensed over the requisite service period. Common shares issued upon exercise of stock options come from currently authorized but unissued shares. During 2016, 2015 and 2014 pursuant to our long-term incentive plan, we granted 0.10 million, 0.07 million and 0.07 million shares, respectively of restricted stock and 0.05 million, 0.03 million and 0.03 million performance stock units (“PSUs”), respectively to certain officers. The shares of restricted stock issued during 2016 cliff vest after periods ranging from one to four years, the shares of restricted stock issued during 2015 cliff vest after a period of three years and the shares of restricted stock issued during 2014 vest ratably over three years. The PSUs issued during 2016 cliff vest after periods ranging from three to five years and the PSUs issued during 2015 and 2014 cliff vest after a period of three years. The performance feature of the PSUs is based on a comparison of our total shareholder return over the three year period starting on the grant date to the total shareholder return over that period for a banking index of our peers. Our directors may elect to receive at least a portion of their quarterly cash retainer fees in the form of common stock (either on a current basis or on a deferred basis) pursuant to the non-employee director stock purchase plan referenced above. Shares equal in value to that portion of each director’s fees that he or she has elected to receive in stock are issued each quarter and vest immediately. We issued 0.01 million shares to directors during each of the years ending 2016, 2015 and 2014 and expensed their value during those same periods. Total compensation expense recognized for grants pursuant to our long-term incentive plan was $1.5 million, $1.4 million and $1.0 million in 2016, 2015 and 2014, respectively. The corresponding tax benefit relating to this expense was $0.5 million, $0.5 million and $0.4 million in 2016, 2015 and 2014, respectively. Total expense recognized for non-employee director share based payments was $0.1 million, $0.1 million and $0.2 million in 2016, 2015 and 2014, respectively. The corresponding tax benefit relating to this expense was $0.04 million, $0.03 million and $0.1million in 2016, 2015 and 2014, respectively. At December 31, 2016, the total expected compensation cost related to non-vested restricted stock and PSUs not yet recognized was $2.2 million. The weighted-average period over which this amount will be recognized is 2.4 years. A summary of outstanding stock option grants and related transactions follows: Number of Shares Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregated Intrinsic Value (In thousands) Outstanding at January 1, 2016 235,596 $ 4.94 Granted — Exercised (21,614 ) 3.93 Forfeited (664 ) 6.42 Expired (2,300 ) 3.54 Outstanding at December 31, 2016 211,018 $ 5.05 5.09 $ 3,514 Vested and expected to vest at December 31, 2016 211,018 $ 5.05 5.09 $ 3,514 Exercisable at December 31, 2016 211,018 $ 5.05 5.09 $ 3,514 A summary of outstanding non-vested stock and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2016 261,981 $ 11.29 Granted 147,160 15.39 Vested (107,795 ) 7.92 Forfeited (4,924 ) 13.24 Outstanding at December 31, 2016 296,422 $ 14.52 Certain information regarding options exercised during the periods ending December 31 follows: 2016 2015 2014 (In thousands) Intrinsic value $ 254 $ 444 $ 321 Cash proceeds received $ 85 $ 137 $ 96 Tax benefit realized $ 89 $ 155 $ 112 We maintain 401(k) and employee stock ownership plans covering substantially all of our full-time employees. During 2016 and 2015 we matched 50% of employee contributions to the 401(k) plan up to a maximum of 6% and 4% of participating employees’ eligible wages, respectively. During 2014 we matched 100% of employee contributions up to a maximum of 2% of participating employees’ eligible wages. Contributions to the employee stock ownership plan are determined annually and require approval of our Board of Directors. The maximum contribution is 6% of employees’ eligible wages. Contributions to the employee stock ownership plan were 2% for 2016, 2015 and 2014. Amounts expensed for these retirement plans were $1.4 million, $1.2 million, and $1.0 million in 2016, 2015 and 2014, respectively. Our employees participate in various performance-based compensation plans. Amounts expensed for all incentive plans totaled $6.2 million, $5.7 million and $4.2 million, in 2016, 2015 and 2014, respectively. We also provide certain health care and life insurance programs to substantially all full-time employees. Amounts expensed for these programs totaled $3.5 million, $3.6 million and $3.9 million in 2016, 2015 and 2014 respectively. These insurance programs are also available to retired employees at their own expense.

OTHER NON-INTEREST INCOME

OTHER NON-INTEREST INCOME	12 Months Ended
	Dec. 31, 2016
OTHER NON-INTEREST INCOME [Abstract]
OTHER NON-INTEREST INCOME	NOTE 15 – OTHER NON-INTEREST INCOME Other non-interest income for the years ended December 31 follows: 2016 2015 2014 (In thousands) Investment and insurance commissions $ 1,647 $ 1,827 $ 1,814 ATM fees 1,496 1,551 1,599 Bank owned life insurance 1,124 1,282 1,371 Other real estate rental income 58 128 1,295 Other 3,091 2,904 2,852 Total other non-interest income $ 7,416 $ 7,692 $ 8,931

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2016
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 16 – DERIVATIVE FINANCIAL INSTRUMENTS We are required to record derivatives on our Consolidated Statements of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting. Our derivative financial instruments according to the type of hedge in which they are designated at December 31 follow: 2016 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 26,658 0.1 $ 646 Mandatory commitments to sell mortgage loans 61,954 0.1 630 Pay-fixed interest rate swap agreements 46,121 8.6 249 Pay-variable interest rate swap agreements 46,121 8.6 (249 ) Purchased options 3,119 4.5 238 Written options 3,119 4.5 (238 ) Total $ 187,092 4.4 $ 1,276 2015 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 20,581 0.1 $ 550 Mandatory commitments to sell mortgage loans 46,320 0.1 69 Pay-fixed interest rate swap agreements 27,587 8.0 (497 ) Pay-variable interest rate swap agreements 27,587 8.0 497 Purchased options 2,098 5.7 122 Written options 2,098 5.7 (122 ) Total $ 126,271 3.7 $ 619 We have established management objectives and strategies that include interest-rate risk parameters for maximum fluctuations in net interest income and market value of portfolio equity. We monitor our interest rate risk position via simulation modeling reports. The goal of our asset/liability management efforts is to maintain profitable financial leverage within established risk parameters. To meet our asset/liability management objectives, we may periodically enter into derivative financial instruments to mitigate exposure to fluctuations in cash flows resulting from changes in interest rates (“Cash Flow Hedges”). Cash Flow Hedges included certain pay-fixed interest rate swaps which converted the variable-rate cash flows on debt obligations to fixed-rates. In 2013 we terminated our last Cash Flow Hedge pay-fixed interest rate swap and paid a termination fee of $0.6 million. The remaining unrealized loss on the terminated pay-fixed interest rate swap which was equal to this termination fee was included as a component of accumulated other comprehensive loss and was amortized into earnings through December 31, 2014, the original remaining life of the pay-fixed interest rate swap. Certain derivative financial instruments have not been designated as hedges. The fair value of these derivative financial instruments has been recorded on our Consolidated Statements of Financial Condition and is adjusted on an ongoing basis to reflect their then current fair value. The changes in fair value of derivative financial instruments not designated as hedges are recognized in earnings. In the ordinary course of business, we enter into rate-lock mortgage loan commitments with customers (“Rate-Lock Commitments”). These commitments expose us to interest rate risk. We also enter into mandatory commitments to sell mortgage loans (“Mandatory Commitments”) to reduce the impact of price fluctuations of mortgage loans held for sale and Rate-Lock Commitments. Mandatory Commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of Rate Lock Commitments and Mandatory Commitments are recognized currently as part of net gains on mortgage loans in the Consolidated Statements of Operations. We obtain market prices on Mandatory Commitments and Rate-Lock Commitments. Net gains on mortgage loans, as well as net income, may be more volatile as a result of these derivative instruments, which are not designated as hedges. During 2015, we began offering to our deposit customers an equity linked time deposit product (“Altitude CD”). The Altitude CD is a time deposit that provides the customer a guaranteed return of principal at maturity plus a potential equity return (a written option), while we receive a like stream of funds based on the equity return (a purchased option). The written and purchased options will generally move in opposite directions resulting in little or no net impact on our Consolidated Statements of Operations. All of the written and purchased options in the table above relate to this Altitude CD product. During 2014, we began a program that allows commercial loan customers to lock in a fixed rate for a longer period of time than we would normally offer for interest rate risk reasons. We will enter into a variable rate commercial loan and an interest rate swap agreement with a customer and then enter into an offsetting interest rate swap agreement with an unrelated party. The interest rate swap agreement fair values will generally move in opposite directions resulting in little or no net impact on our Consolidated Statements of Operations. All of the interest rate swap agreements in the table above relate to this program. During the second quarter of 2014, we completed a securities trade in which we shorted a $13 million UST security. This UST short was terminated during the fourth quarter of 2014 and the change in the fair value of the short position from the inception date to the termination date has been recorded in net gains on securities in our Consolidated Statements of Operations. The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Consolidated Statements of Financial Condition for the periods presented: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives December 31, December 31, 2016 2015 2016 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives not designated as hedging instruments Rate-lock mortgage loan commitments Other assets $ 646 Other assets $ 550 Other liabilities $ — Other liabilities $ — Mandatory commitments to sell mortgage loans Other assets 630 Other assets 69 Other liabilities — Other liabilities — Pay-fixed interest rate swap agreements Other assets 493 Other assets — Other liabilities 244 Other liabilities 497 Pay-variable interest rate swap agreements Other assets 244 Other assets 497 Other liabilities 493 Other liabilities — Purchased options Other assets 238 Other assets 122 Other liabilities — Other liabilities — Written options Other assets — Other assets — Other liabilities 238 Other liabilities 122 Total derivatives $ 2,251 $ 1,238 $ 975 $ 619 The effect of derivative financial instruments on the Consolidated Statements of Operations follows: Year Ended December 31, Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion) Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain (Loss) Recognized in Income (1) Gain (Loss) Recognized in Income (1) 2016 2015 2014 2016 2015 2014 2016 2015 2014 (In thousands) Cash Flow Hedges Pay-fixed interest rate swap agreements $ — $ — $ — Interest $ — $ — $ (380 ) Interest $ — $ — $ — Total $ — $ — $ — $ — $ — $ (380 ) $ — $ — $ — No hedge designation Rate-lock mortgage loan commitments Net gains on $ 96 $ 113 $ 71 Mandatory commitments to sell mortgage loans Net gains on 561 253 (312 ) Pay-fixed interest rate swap agreements Interest 746 (315 ) (182 ) Pay-variable interest rate swap agreements Interest (746 ) 315 182 Purchased options Interest 116 122 — Written options Interest (116 ) (122 ) — UST short position Net gains on — — 295 Total $ 657 $ 366 $ 54 (1) For cash flow hedges, this location and amount refers to the ineffective portion.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 17 – RELATED PARTY TRANSACTIONS Certain of our directors and executive officers, including companies in which they are officers or have significant ownership, were loan and deposit customers during 2016 and 2015. A summary of loans to our directors and executive officers whose borrowing relationship (which includes loans to entities in which the individual owns a 10% or more voting interest) exceeds $60,000 for the years ended December 31 follows: 2016 2015 (In thousands) Balance at beginning of year $ 190 $ 216 New loans and advances 594 — Repayments (369 ) (26 ) Balance at end of year $ 415 $ 190 Deposits held by us for directors and executive officers totaled $1.0 million and $1.3 million at December 31, 2016 and 2015, respectively.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2016
LEASES [Abstract]
LEASES	NOTE 18 – LEASES We have non-cancelable operating leases for certain office facilities, some of which include renewal options and escalation clauses. A summary of future minimum lease payments under non-cancelable operating leases at December 31, 2016, follows: (In thousands) 2017 $ 1,444 2018 1,313 2019 994 2020 927 2021 460 2022 and thereafter 499 Total $ 5,637 Rental expense on operating leases totaled $1.2 million, $1.2 million and $1.3 million in 2016, 2015 and 2014, respectively.

CONCENTRATIONS OF CREDIT RISK

CONCENTRATIONS OF CREDIT RISK	12 Months Ended
	Dec. 31, 2016
CONCENTRATIONS OF CREDIT RISK [Abstract]
CONCENTRATIONS OF CREDIT RISK	NOTE 19 – CONCENTRATIONS OF CREDIT RISK Credit risk is the risk to earnings and capital arising from an obligor’s failure to meet the terms of any contract with our organization or otherwise fail to perform as agreed. Credit risk can occur outside of our traditional lending activities and can exist in any activity where success depends on counterparty, issuer or borrower performance. Concentrations of credit risk (whether on- or off-balance sheet) arising from financial instruments can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries or certain geographic regions. Credit risk associated with these concentrations could arise when a significant amount of loans or other financial instruments, related by similar characteristics, are simultaneously impacted by changes in economic or other conditions that cause their probability of repayment or other type of settlement to be adversely affected. Our major concentrations of credit risk arise by collateral type and by industry. The significant concentrations by collateral type at December 31, 2016, include $558.9 million of loans secured by residential real estate and $77.3 million of construction and development loans. Additionally, within our commercial real estate and commercial loan portfolio, we had significant standard industry classification concentrations in the following categories as of December 31, 2016: Lessors of Nonresidential Real Estate ($247.1 million); Lessors of Residential Real Estate ($98.5 million); Health Care and Social Assistance ($70.1 million) and Construction General Contractors and Land Development ($62.5 million). A geographic concentration arises because we primarily conduct our lending activities in the State of Michigan.

REGULATORY MATTERS

REGULATORY MATTERS	12 Months Ended
	Dec. 31, 2016
REGULATORY MATTERS [Abstract]
REGULATORY MATTERS	NOTE 20 – REGULATORY MATTERS Capital guidelines adopted by federal and state regulatory agencies and restrictions imposed by law limit the amount of cash dividends our Bank can pay to us. Under these guidelines, the amount of dividends that may be paid in any calendar year is limited to the Bank’s current year net profits, combined with the retained net profits of the preceding two years. Further, the Bank cannot pay a dividend at any time that it has negative undivided profits. As of December 31, 2016, the Bank had positive undivided profits of $9.9 million. We can request regulatory approval for a return of capital from the Bank to the parent company. During the first quarters of 2016, 2015 and 2014, we requested regulatory approval for returns of capital from the Bank to the parent company for $18.0 million, $18.5 million and $15.0 million. These return of capital requests were approved by our banking regulators on February 24, 2016, February 13, 2015 and March 28, 2014, respectively and the Bank returned these amounts to the parent company on February 25, 2016, February 17, 2015 and April 9, 2014, respectively. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent and in accordance with guidelines of regulatory authorities. We are also subject to various regulatory capital requirements. The prompt corrective action regulations establish quantitative measures to ensure capital adequacy and require minimum amounts and ratios of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can result in certain mandatory, and possibly discretionary, actions by regulators that could have a material effect on our consolidated financial statements. Under capital adequacy guidelines, we must meet specific capital requirements that involve quantitative measures as well as qualitative judgments by the regulators. The most recent regulatory filings as of December 31, 2016 and 2015, categorized our Bank as well capitalized. Management is not aware of any conditions or events that would have changed the most recent Federal Deposit Insurance Corporation (“FDIC”) categorization. On July 2, 2013, the Federal Reserve approved a final rule that establishes an integrated regulatory capital framework (the “New Capital Rules”). The rule implements in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act. In general, under the New Capital Rules, minimum requirements have increased for both the quantity and quality of capital held by banking organizations. Consistent with the international Basel framework, the New Capital Rules include a new minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets that applies to all supervised financial institutions. The capital conservation buffer began to phase in on January 1, 2016 with 0.625% added to the minimum ratio for adequately capitalized institutions for 2016 and 0.625% will be added each subsequent year until fully phased in during 2019. This capital conservation buffer is not reflected in the table that follows. To avoid limits on capital distributions and certain discretionary bonus payments we must meet the minimum ratio for adequately capitalized institutions plus the phased in buffer. The rule also raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking organizations. As to the quality of capital, the New Capital Rules emphasize common equity Tier 1 capital, the most loss-absorbing form of capital, and implement strict eligibility criteria for regulatory capital instruments. The New Capital Rules also change the methodology for calculating risk-weighted assets to enhance risk sensitivity. The New Capital Rules became effective for us on January 1, 2015 Our actual capital amounts and ratios at December 31 follow: Actual Minimum for Adequately Capitalized Institutions Minimum for Well-Capitalized Institutions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) 2016 Total capital to risk-weighted assets Consolidated $ 286,289 15.86 % $ 144,413 8.00 % NA NA Independent Bank 270,855 15.02 144,223 8.00 $ 180,279 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 265,405 14.70 % $ 108,309 6.00 % NA NA Independent Bank 249,971 13.87 108,167 6.00 $ 144,223 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 238,996 13.24 % $ 81,232 4.50 % NA NA Independent Bank 249,971 13.87 81,126 4.50 $ 117,181 6.50 % Tier 1 capital to average assets Consolidated $ 265,405 10.50 % $ 101,112 4.00 % NA NA Independent Bank 249,971 9.90 101,019 4.00 $ 126,274 5.00 % 2015 Total capital to risk-weighted assets Consolidated $ 278,170 16.65 % $ 133,668 8.00 % NA NA Independent Bank 261,894 15.69 133,514 8.00 $ 166,893 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 257,050 15.38 % $ 100,251 6.00 % NA NA Independent Bank 240,867 14.43 100,136 6.00 $ 133,514 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 239,271 14.32 % $ 75,188 4.50 % NA NA Independent Bank 240,867 14.43 75,102 4.50 $ 108,480 6.50 % Tier 1 capital to average assets Consolidated $ 257,050 10.91 % $ 94,217 4.00 % NA NA Independent Bank 240,867 10.23 94,145 4.00 $ 117,682 5.00 % NA - Not applicable The components of our regulatory capital are as follows: Consolidated Independent Bank December 31, December 31, 2016 2015 2016 2015 (In thousands) Total shareholders' equity $ 248,980 $ 251,092 $ 258,814 $ 259,947 Add (deduct) Accumulated other comprehensive loss for regulatory purposes 3,310 238 3,310 238 Intangible assets (1,159 ) (912 ) (1,159 ) (912 ) Disallowed deferred tax assets (12,135 ) (11,147 ) (10,994 ) (18,406 ) Common equity tier 1 capital 238,996 239,271 249,971 240,867 Qualifying trust preferred securities 34,500 34,500 — — Disallowed deferred tax assets (8,091 ) (16,721 ) — — Tier 1 capital 265,405 257,050 249,971 240,867 Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 20,884 21,120 20,884 21,027 Total risk-based capital $ 286,289 $ 278,170 $ 270,855 $ 261,894

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	12 Months Ended
	Dec. 31, 2016
FAIR VALUE DISCLOSURES [Abstract]
FAIR VALUE DISCLOSURES	NOTE 21 – FAIR VALUE DISCLOSURES FASB ASC topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter 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 in the market. Level 2 instruments include securities traded in less active dealer or broker markets. 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. We used the following methods and significant assumptions to estimate fair value: Securities Loans held for sale Impaired loans with specific loss allocations based on collateral value Other real estate Appraisals for both collateral-dependent impaired loans and other real estate are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by us. Once received, an independent third party (for commercial properties over $0.25 million) or a member of our Collateral Evaluation Department (for commercial properties under $0.25 million) or a member of our Special Assets Group (for retail properties) reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. We compare the actual selling price of collateral that has been sold to the most recent appraised value of our properties to determine what additional adjustment, if any, should be made to the appraisal value to arrive at fair value. For commercial and retail properties we typically discount an appraisal to account for various factors that the appraisal excludes in its assumptions. These additional discounts generally do not result in material adjustments to the appraised value. Capitalized mortgage loan servicing rights Derivatives Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows: Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2016: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 410 $ 410 $ — $ — Securities available for sale U.S. agency 28,988 — 28,988 — U.S. agency residential mortgage-backed 156,289 — 156,289 — U.S. agency commercial mortgage-backed 12,632 — 12,632 — Private label mortgage-backed 34,727 — 34,727 — Other asset backed 146,709 — 146,709 — Obligations of states and political subdivisions 170,899 — 170,899 — Corporate 56,180 — 56,180 — Trust preferred 2,579 — 2,579 — Foreign government 1,613 — 1,613 — Loans held for sale 35,946 — 35,946 — Derivatives (1) 2,251 — 2,251 — Liabilities Derivatives (2) 975 — 975 — Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 8,163 — — 8,163 Impaired loans (4) Commercial Income producing - real estate 255 — — 255 Land, land development & construction-real estate 54 — — 54 Commercial and industrial 1,342 — — 1,342 Mortgage 1-4 family 361 — — 361 Other real estate (5) Commercial Income producing - real estate (6) 2,863 — 2,863 — Land, land development & construction-real estate 176 — — 176 Mortgage 1-4 family 98 — — 98 Resort lending 133 — — 133 (1) Included in accrued income and other assets. (2) Included in accrued expenses and other liabilities. (3) Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. (4) Only includes impaired loans with specific loss allocations based on collateral value. (5) Only includes other real estate with subsequent write downs to fair value. (6) Level 2 valuation is based on a signed purchase agreement. Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2015: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 148 $ 148 $ — $ — Securities available for sale U.S. agency 47,512 — 47,512 — U.S. agency residential mortgage-backed 196,056 — 196,056 — U.S. agency commercial mortgage-backed 34,028 — 34,028 — Private label mortgage-backed 4,903 — 4,903 — Other asset backed 116,904 — 116,904 — Obligations of states and political subdivisions 144,984 — 144,984 — Corporate 38,614 — 38,614 — Trust preferred 2,483 — 2,483 — Loans held for sale 27,866 — 27,866 — Derivatives (1) 1,238 — 1,238 — Liabilities Derivatives (2) 619 — 619 — Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 8,481 — — 8,481 Impaired loans (4) Commercial Income producing - real estate 711 — — 711 Land, land development & construction-real estate 40 — — 40 Commercial and industrial 1,257 — — 1,257 Mortgage 1-4 family 421 — — 421 Resort lending 129 — — 129 Other real estate (5) Commercial Land, land development & construction-real estate 639 — — 639 Commercial and industrial 165 — — 165 Mortgage 1-4 family 26 — — 26 Resort lending 107 — — 107 Home equity - 1st lien 14 — — 14 Installment Home equity - 1st lien 36 — — 36 (1) Included in accrued income and other assets. (2) Included in accrued expenses and other liabilities. (3) Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. (4) Only includes impaired loans with specific loss allocations based on collateral value. (5) Only includes other real estate with subsequent write downs to fair value. There were no transfers between Level 1 and Level 2 during the years ended December 31, 2016 and 2015. Changes in fair values of financial assets for which we have elected the fair value option for the years ended December 31 were as follows: Net Gains (Losses) on Assets Total Change in Fair Values Included in Current Period Earnings Securities Loans (In thousands) 2016 Trading securities $ 262 $ — $ 262 Loans held for sale — (277 ) (277 ) 2015 Trading securities $ (55 ) $ — $ (55 ) Loans held for sale — 90 90 2014 Trading securities $ (295 ) $ — $ (295 ) Loans held for sale — 258 258 For those items measured at fair value pursuant to our election of the fair value option, interest income is recorded within the Consolidated Statements of Operations based on the contractual amount of interest income earned on these financial assets and dividend income is recorded based on cash dividends received. The following represent impairment charges recognized during the years ended December 31, 2016, 2015 and 2014 relating to assets measured at fair value on a non-recurring basis: • Capitalized mortgage loan servicing rights, whose individual strata are measured at fair value, had a carrying amount of $8.2 million, which is net of a valuation allowance of $2.3 million, at December 31, 2016, and had a carrying amount of $8.5 million, which is net of a valuation allowance of $3.3 million, at December 31, 2015. A recovery (charge) of $1.0 million, $0.5 million and $(0.9) million was included in our results of operations for the years ending December 31, 2016, 2015 and 2014, respectively. • Loans which are measured for impairment using the fair value of collateral for collateral dependent loans had a carrying amount of $4.0 million, with a valuation allowance of $2.0 million at December 31, 2016, and had a carrying amount of $5.1 million, with a valuation allowance of $2.5 million at December 31, 2015. An additional provision for loan losses relating to impaired loans of $0.2 million, $1.1 million and $2.1 million was included in our results of operations for the years ending December 31, 2016, 2015 and 2014, respectively. • Other real estate, which is measured using the fair value of the property, had a carrying amount of $3.2 million which is net of a valuation allowance of $0.8 million at December 31, 2016, and a carrying amount of $1.0 million, which is net of a valuation allowance of $1.7 million, at December 31, 2015. An additional charge relating to other real estate measured at fair value of $0.6 million, $0.3 million and $0.3 million was included in our results of operations during the years ended December 31, 2016, 2015 and 2014, respectively. We had no assets or liabilities measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) during the years ended December 31, 2016 and 2015. Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Weighted Average (In thousands) 2016 Capitalized mortgage $ 8,163 Present value of net Discount rate 10.07 % servicing revenue Cost to service $ 83 Ancillary income 24 Float rate 1.97 % Impaired loans 1,446 Sales comparison Adjustment for differences approach between comparable sales (1.5 )% Mortgage 361 Sales comparison Adjustment for differences approach between comparable sales (4.7 ) Other real estate 176 Sales comparison Adjustment for differences approach between comparable sales (22.5 ) Mortgage and installment 231 Sales comparison Adjustment for differences approach between comparable sales (5.1 ) 2015 Capitalized mortgage $ 8,481 Present value of net Discount rate 10.04 % servicing revenue Cost to service $ 80 Ancillary income 24 Float rate 1.73 % Impaired loans 1,605 Sales comparison Adjustment for differences approach between comparable sales (2.1 )% Income approach Capitalization rate 9.3 Mortgage 550 Sales comparison Adjustment for differences approach between comparable sales 0.7 Other real estate 804 Sales comparison Adjustment for differences approach between comparable sales (3.9 ) Mortgage and installment 183 Sales comparison Adjustment for differences approach between comparable sales 75.6 (1) In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2016 and 2015, we had an impaired collateral dependent commercial relationship that totaled $0.2 million and $0.4 million, respectively that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory at December 31, 2016 and 2015. Valuation techniques at December 31, 2016 and 2015, included appraisals and discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 0% to 100% of stated values. The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected at December 31. Aggregate Fair Value Difference Contractual Principal (In thousands) Loans held for sale 2016 $ 35,946 $ 437 $ 35,509 2015 27,866 714 27,152 2014 23,662 624 23,038

FAIR VALUES OF FINANCIAL INSTRU

FAIR VALUES OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2016
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUES OF FINANCIAL INSTRUMENTS	NOTE 22 – FAIR VALUES OF FINANCIAL INSTRUMENTS Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values may not be a precise estimate. Changes in assumptions could significantly affect the estimates. Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable-interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances. Fair value methodologies discussed below do not necessarily represent an exit price in the determination of the fair value of these financial instruments. Cash and due from banks and interest bearing deposits Interest bearing deposits - time Securities Federal Home Loan Bank and Federal Reserve Bank Stock Net loans and loans held for sale Accrued interest receivable and payable Derivative financial instruments Deposits Other borrowings Subordinated debentures The estimated recorded book balances and fair values at December 31 follow: Fair Value Using Recorded Book Balance Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) 2016 Assets Cash and due from banks $ 35,238 $ 35,238 $ 35,238 $ — $ — Interest bearing deposits 47,956 47,956 47,956 — — Interest bearing deposits - time 5,591 5,611 — 5,611 — Trading securities 410 410 410 — — Securities available for sale 610,616 610,616 — 610,616 — Federal Home Loan Bank and Federal Reserve Bank Stock 15,543 NA NA NA NA Net loans and loans held for sale (1) 1,655,335 1,629,587 — 67,321 1,562,266 Accrued interest receivable 7,316 7,316 5 2,364 4,947 Derivative financial instruments 2,251 2,251 — 2,251 — Liabilities Deposits with no stated maturity (2) $ 1,740,601 $ 1,740,601 $ 1,740,601 $ — $ — Deposits with stated maturity (2) 485,118 483,469 — 483,469 — Other borrowings 9,433 10,371 — 10,371 — Subordinated debentures 35,569 25,017 — 25,017 — Accrued interest payable 932 932 21 911 — Derivative financial instruments 975 975 — 975 — 2015 Assets Cash and due from banks $ 54,260 $ 54,260 $ 54,260 $ — $ — Interest bearing deposits 31,523 31,523 31,523 — — Interest bearing deposits - time 11,866 11,858 — 11,858 — Trading securities 148 148 148 — — Securities available for sale 585,484 585,484 — 585,484 — Federal Home Loan Bank and Federal Reserve Bank Stock 15,471 NA NA NA NA Net loans and loans held for sale 1,520,346 1,472,613 — 27,866 1,444,747 Accrued interest receivable 6,565 6,565 5 1,969 4,591 Derivative financial instruments 1,238 1,238 — 1,238 — Liabilities Deposits with no stated maturity (2) $ 1,659,743 $ 1,659,743 $ 1,659,743 $ — $ — Deposits with stated maturity (2) 426,220 423,776 — 423,776 — Other borrowings 11,954 13,448 — 13,448 — Subordinated debentures 35,569 23,069 — 23,069 — Accrued interest payable 466 466 21 445 — Derivative financial instruments 619 619 — 619 — (1) Net loans and loans held for sale at December 31, 2016 include $31.4 million of payment plan receivables and commercial loans held for sale. (2) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $7.4 million and $11.8 million at December 31, 2016 and 2015, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $31.3 million and $38.4 million at December 31, 2016 and 2015, respectively. The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal, and therefore are not disclosed. 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 the entire holdings of a particular financial instrument. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments. Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	12 Months Ended
	Dec. 31, 2016
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	NOTE 23 – ACCUMULATED OTHER COMPREHENSIVE LOSS A summary of changes in accumulated other comprehensive loss (“AOCL”), net of tax during the years ended December 31 follows: Unrealized Gains (Losses) on Securities Available for Sale Dispropor- tionate Tax Effects from Securities Available for Sale Unrealized Losses on Settled Derivatives Total 2016 Balances at beginning of period $ (238 ) $ (5,798 ) $ — $ (6,036 ) Other comprehensive loss before reclassifications (2,876 ) — — (2,876 ) Amounts reclassified from AOCL (196 ) — — (196 ) Net current period other comprehensive loss (3,072 ) — — (3,072 ) Balances at end of period $ (3,310 ) $ (5,798 ) $ — $ (9,108 ) 2015 Balances at beginning of period $ 162 $ (5,798 ) $ — $ (5,636 ) Other comprehensive loss before reclassifications (351 ) — — (351 ) Amounts reclassified from AOCL (49 ) — — (49 ) Net current period other comprehensive loss (400 ) — — (400 ) Balances at end of period $ (238 ) $ (5,798 ) $ — $ (6,036 ) 2014 Balances at beginning of period $ (3,200 ) $ (5,798 ) $ (247 ) $ (9,245 ) Other comprehensive income before reclassifications 3,570 — — 3,570 Amounts reclassified from AOCL (208 ) — 247 39 Net current period other comprehensive income 3,362 — 247 3,609 Balances at end of period $ 162 $ (5,798 ) $ — $ (5,636 ) The disproportionate tax effects from securities available for sale arose due to tax effects of other comprehensive income (“OCI”) in the presence of a valuation allowance against our deferred tax assets and a pretax loss from operations. Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current period. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations. A summary of reclassifications out of each component of AOCL for the years ended December 31 follows: AOCL Component Reclassified From AOCL Affected Line Item in Consolidated Statements of Operations (In thousands) 2016 Unrealized gains (losses) on securities available for sale $ 301 Net gains on securities — Net impairment loss recognized in earnings 301 Total reclassifications before tax 105 Income tax expense $ 196 Reclassifications, net of tax 2015 Unrealized gains (losses) on securities available for sale $ 75 Net gains on securities — Net impairment loss recognized in earnings 75 Total reclassifications before tax 26 Income tax expense $ 49 Reclassifications, net of tax 2014 Unrealized gains (losses) on securities available for sale $ 329 Net gains on securities (9 ) Net impairment loss recognized in earnings 320 Total reclassifications before tax 112 Income tax expense $ 208 Reclassifications, net of tax Unrealized losses on settled derivatives $ (380 ) Interest expense (133 ) Income tax benefit $ (247 ) Reclassification, net of tax $ (39 ) Total reclassifications for the period, net of tax

INDEPENDENT BANK CORPORATION (P

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION	12 Months Ended
	Dec. 31, 2016
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract]
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION	NOTE 24 – INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION Presented below are condensed financial statements for our parent company. CONDENSED STATEMENTS OF FINANCIAL CONDITION December 31, 2016 2015 (In thousands) ASSETS Cash and due from banks $ 9,515 $ 10,800 Interest bearing deposits - time 5,000 5,000 Investment in subsidiaries 259,883 261,016 Accrued income and other assets 10,489 10,120 Total Assets $ 284,887 $ 286,936 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debentures $ 35,569 $ 35,569 Accrued expenses and other liabilities 379 378 Shareholders’ equity 248,939 250,989 Total Liabilities and Shareholders’ Equity $ 284,887 $ 286,936 CONDENSED STATEMENTS OF OPERATIONS Year Ended December 31, 2016 2015 2014 (In thousands) OPERATING INCOME Dividends from subsidiary $ 5,000 $ — $ — Interest income 27 72 64 Gain on extinguishment of debt — — 500 Gain on securities — — 295 Other income 153 31 35 Total Operating Income 5,180 103 894 OPERATING EXPENSES Interest expense 1,167 1,021 1,462 Administrative and other expenses 554 560 527 Total Operating Expenses 1,721 1,581 1,989 Income (Loss) Before Income Tax and Equity in Undistributed Net Income of Subsidiaries 3,459 (1,478 ) (1,095 ) Income tax benefit (615 ) (542 ) (383 ) Income (Loss) Before Equity in Undistributed Net Income of Subsidiaries 4,074 (936 ) (712 ) Equity in undistributed net income of subsidiaries 18,692 20,953 18,733 Net Income $ 22,766 $ 20,017 $ 18,021 CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 2015 2014 (In thousands) Net Income $ 22,766 $ 20,017 $ 18,021 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM (USED) IN OPERATING ACTIVITIES Deferred income tax benefit (615 ) (542 ) (383 ) Share based compensation 29 21 46 Gain on extinguishment of debt — — (500 ) Net gains on securities — — (295 ) Decrease in accrued income and other assets 246 5 118 Increase (decrease) in accrued expenses and other liabilities 1 (6 ) 287 Equity in undistributed net income of subsidiaries (18,692 ) (20,953 ) (18,733 ) Total Adjustments (19,031 ) (21,475 ) (19,460 ) Net Cash From (Used) in Operating Activities 3,735 (1,458 ) (1,439 ) CASH FLOW FROM INVESTING ACTIVITIES Purchases of interest bearing deposits - time (7,500 ) (5,000 ) (17,500 ) Maturity of interest bearing deposits - time 7,500 12,500 5,000 Return of capital from subsidiary 18,000 18,500 15,000 Net Cash From Investing Activities 18,000 26,000 2,500 CASH FLOW USED IN FINANCING ACTIVITIES Repurchase of common stock (16,854 ) (13,498 ) — Dividends paid (7,274 ) (5,896 ) (4,129 ) Proceeds from issuance of common stock 1,735 1,569 1,242 Share based compensation withholding obligation (627 ) (1,091 ) — Redemption of subordinated debt — — (4,654 ) Net Cash Used in Financing Activities (23,020 ) (18,916 ) (7,541 ) Net Increase (Decrease) in Cash and Cash Equivalents (1,285 ) 5,626 (6,480 ) Cash and Cash Equivalents at Beginning of Year 10,800 5,174 11,654 Cash and Cash Equivalents at End of Year $ 9,515 $ 10,800 $ 5,174

BRANCH SALE

BRANCH SALE	12 Months Ended
	Dec. 31, 2016
BRANCH SALE [Abstract]
BRANCH SALE	NOTE 25 – BRANCH SALE On April 29, 2015 we entered into a Purchase and Assumption Agreement (“PAA”) with Isabella Bank (based in Mt. Pleasant, Michigan). Pursuant to the PAA, on August 28, 2015, we sold the fixed assets, real property and certain other assets of our bank branch located in Midland, Michigan (the “Midland Branch”) to Isabella Bank. The deposit liabilities of the Midland Branch were assumed by Isabella Bank which totaled $8.7 million on the date of sale. Under the terms of the PAA, Isabella Bank paid a premium of $0.6 million (which was equal to 6.0% of the average deposit liabilities of $9.7 million based on the 20-day average ending two business days prior to the closing date of August 28, 2015) and $0.85 million for the real property and fixed assets (including the ATM). The real property and the fixed assets had a net book value of approximately $0.2 million as of August 28, 2015. We recorded a net gain of $1.2 million in the third quarter of 2015 on the sale of the Midland Branch.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
ACCOUNTING POLICIES [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION
STATEMENTS OF CASH FLOWS	STATEMENTS OF CASH FLOWS
INTEREST BEARING DEPOSITS	INTEREST BEARING DEPOSITS INTEREST BEARING DEPOSITS - TIME
LOANS HELD FOR SALE	LOANS HELD FOR SALE
PAYMENT PLAN RECEIVABLES AND OTHER ASSETS HELD FOR SALE	PAYMENT PLAN RECEIVABLES AND OTHER ASSETS HELD FOR SALE
OPERATING SEGMENTS	OPERATING SEGMENTS
CAPITALIZED MORTGAGE LOAN SERVICING RIGHTS	CAPITALIZED MORTGAGE LOAN SERVICING RIGHTS The fair values of mortgage loan servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Mortgage loan servicing income is recorded for fees earned for servicing loans previously sold. The fees are generally based on a contractual percentage of the outstanding principal and are recorded as income when earned. Mortgage loan servicing fees, excluding amortization of and changes in the impairment reserve on originated mortgage loan servicing rights, totaled $4.1 million, $4.1 million and $4.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. Late fees and ancillary fees related to loan servicing are not material. As of January 1, 2017, we elected the fair value measurement method for our mortgage loan servicing rights (in lieu of the amortization method). We expect the cumulative effective of this accounting change to decrease January 1, 2017 retained deficit by $0.4 million, net of tax. We will no longer record amortization of or impairment against capitalized mortgage loan servicing rights, rather we will now record capitalized mortgage loan servicing rights at fair value with subsequent changes in fair value recorded as an increase or decrease to mortgage loan servicing, net, in our Consolidated Statements of Operations.
TRANSFERS OF FINANCIAL ASSETS	TRANSFERS OF FINANCIAL ASSETS
SECURITIES	SECURITIES We evaluate securities for other than temporary impairment (“OTTI”) at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In performing this evaluation, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis.
FEDERAL HOME LOAN BANK ("FHLB") STOCK	FEDERAL HOME LOAN BANK (“FHLB”) STOCK
FEDERAL RESERVE BANK ("FRB") STOCK	FEDERAL RESERVE BANK (“FRB”) STOCK
LOAN REVENUE RECOGNITION	LOAN REVENUE RECOGNITION Certain loan fees and direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Fees received in connection with loan commitments are deferred until the loan is advanced and are then recognized generally over the contractual life of the loan as an adjustment of yield. Fees on commitments that expire unused are recognized at expiration. Fees received for letters of credit are recognized as revenue over the life of the commitment.
PAYMENT PLAN RECEIVABLE REVENUE RECOGNITION	PAYMENT PLAN RECEIVABLE REVENUE RECOGNITION
ALLOWANCE FOR LOAN LOSSES	ALLOWANCE FOR LOAN LOSSES Some loans will not be repaid in full. Therefore, an AFLL is maintained at a level which represents our best estimate of losses incurred. In determining the AFLL and the related provision for loan losses, we consider four principal elements: (i) specific allocations based upon probable losses identified during the review of the loan portfolio, (ii) allocations established for other adversely rated commercial loans, (iii) allocations based principally on historical loan loss experience, and (iv) additional allocations based on subjective factors, including local and general economic business factors and trends, portfolio concentrations and changes in the size and/or the general terms of the loan portfolios. The first AFLL element (specific allocations) reflects our estimate of probable incurred losses based upon our systematic review of specific loans. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower, discounted collateral exposure and discounted cash flow analysis. Impaired commercial, mortgage and installment loans are allocated allowance amounts using this first element. The second AFLL element (other adversely rated commercial loans) reflects the application of our loan rating system. This rating system is similar to those employed by state and federal banking regulators. Commercial loans that are rated below a certain predetermined classification are assigned a loss allocation factor for each loan classification category that is based upon a historical analysis of both the probability of default and the expected loss rate (“loss given default”). The lower the rating assigned to a loan or category, the greater the allocation percentage that is applied. The third AFLL element (historical loss allocations) is determined by assigning allocations to higher rated (“non-watch credit”) commercial loans using a probability of default and loss given default similar to the second AFLL element and to homogenous mortgage and installment loan groups based upon borrower credit score and portfolio segment. For homogenous mortgage and installment loans a probability of default for each homogenous pool is calculated by way of credit score migration. Historical loss data for each homogenous pool coupled with the associated probability of default is utilized to calculate an expected loss allocation rate. The fourth AFLL element (additional allocations based on subjective factors) is based on factors that cannot be associated with a specific credit or loan category and reflects our attempt to reasonably ensure that the overall AFLL appropriately reflects a margin for the imprecision necessarily inherent in the estimates of expected credit losses. We consider a number of subjective factors when determining this fourth element, including local and general economic business factors and trends, portfolio concentrations and changes in the size, mix and the general terms of the overall loan portfolio. Increases in the AFLL are recorded by a provision for loan losses charged to expense. Although we periodically allocate portions of the AFLL to specific loans and loan portfolios, the entire AFLL is available for incurred losses. We generally charge-off commercial, homogenous residential mortgage and installment loans and payment plan receivables when they are deemed uncollectible or reach a predetermined number of days past due based on loan product, industry practice and other factors. Collection efforts may continue and recoveries may occur after a loan is charged against the AFLL. While we use relevant information to recognize losses on loans, additional provisions for related losses may be necessary based on changes in economic conditions, customer circumstances and other credit risk factors. A loan is impaired when full payment under the loan terms is not expected. Generally, those loans included in each commercial loan class that are rated substandard, classified as non-performing or were classified as non-performing in the preceding quarter, are evaluated for impairment. Those loans included in each mortgage loan or installment loan class whose terms have been modified and considered a troubled debt restructuring are also impaired. Loans which have been modified resulting in a concession, and which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDR”) and classified as impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Large groups of smaller balance homogeneous loans, such as those loans included in each installment and mortgage loan class and each payment plan receivable class, are collectively evaluated for impairment and accordingly, they are not separately identified for impairment disclosures. TDR loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception of the loan. If a TDR is considered to be a collateral dependent loan, the loan is reported net, at the fair value of collateral. A loan can be removed from TDR status if it is subsequently restructured and the borrower is no longer experiencing financial difficulties and the newly restructured agreement does not contain any concessions to the borrower. The new agreement must specify market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, and other terms no less favorable to us than those we would offer for similar new debt.
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT
BANK OWNED LIFE INSURANCE	BANK OWNED LIFE INSURANCE
OTHER REAL ESTATE AND REPOSSESSED ASSETS	OTHER REAL ESTATE AND REPOSSESSED ASSETS
OTHER INTANGIBLE ASSETS	OTHER INTANGIBLES
VEHICLE SERVICE CONTRACT COUNTERPARTY RECEIVABLES, NET	VEHICLE SERVICE CONTRACT COUNTERPARTY RECEIVABLES, NET
INCOME TAXES	INCOME TAXES A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. We recognize interest and/or penalties related to income tax matters in income tax expense. We file a consolidated federal income tax return. Intercompany tax liabilities are settled as if each subsidiary filed a separate return.
COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS	COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS At the inception of the derivative we designate the derivative as one of three types based on our intention and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“Fair Value Hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“Cash Flow Hedge”), or (3) an instrument with no hedging designation. For a Fair Value Hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. We did not have any Fair Value Hedges or Cash Flow Hedges at December 31, 2016 or 2015. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. For instruments with no hedging designation, the gain or loss on the derivative is reported in earnings. These free standing instruments currently consist of (i) mortgage banking related derivatives and include rate-lock loan commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and mandatory forward commitments for the future delivery of these mortgage loans, (ii) certain pay-fixed and pay-variable interest rate swap agreements related to commercial loan customers and (iii) certain purchased and written options related to a time deposit product. Fair values of the mortgage derivatives are estimated based on mortgage backed security pricing for comparable assets. We enter into mandatory forward commitments for the future delivery of mortgage loans generally when interest rate locks are entered into in order to hedge the change in interest rates resulting from our commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage loans in the Consolidated Statements of Operations. Fair values of the pay-fixed and pay-variable interest rate swap agreements are based on discounted cash flow analyses and are included in net interest income in the Consolidated Statements of Operations. Fair values of the purchased and written options are based on prices of financial instruments with similar characteristics and are included in net interest income in the Consolidated Statements of Operations. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest expense. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income (mortgage banking related derivatives) or net interest income (interest rate swap agreements and options). Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. We formally document the relationship between derivatives and hedged items, as well as the risk- management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking Fair Value or Cash Flow Hedges to specific assets and liabilities on the Consolidated Statements of Financial Condition or to specific firm commitments or forecasted transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. We discontinue hedge accounting when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded in earnings. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive loss are amortized into earnings over the same periods which the hedged transactions will affect earnings.
COMPREHENSIVE INCOME	COMPREHENSIVE INCOME
NET INCOME PER COMMON SHARE	NET INCOME PER COMMON SHARE
SHARE BASED COMPENSATION	SHARE BASED COMPENSATION
COMMON STOCK	COMMON STOCK
RECLASSIFICATION	RECLASSIFICATION
ADOPTION OF NEW ACCOUNTING STANDARDS	ADOPTION OF NEW ACCOUNTING STANDARDS In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (718) Improvements to Employee Share-Based Payment Accounting”. This ASU amends existing guidance in an effort to simplify certain aspects of accounting for share-based payments. The areas for simplification in this ASU include income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This amended guidance is effective for us on January 1, 2017, with early adoption permitted. We adopted this amended guidance during the second quarter of 2016 using a modified retrospective approach. The impact of this adoption was to adjust our January 1, 2016 Consolidated Statement of Financial Position to reflect cumulative effect adjustments as follows: January 1, 2016 Originally Presented Cumulative Retrospective Adjustments January 1, 2016 Adjusted (Dollars in thousands) Deferred tax assets $ 39,635 $ 1,247 $ 40,882 Total assets $ 2,409,066 $ 1,247 $ 2,410,313 Common stock $ 339,462 $ 62 $ 339,524 Accumulated deficit $ (82,334 ) $ 1,185 $ (81,149 ) Total Shareholders’ Equity $ 251,092 $ 1,247 $ 252,339 Total Liabilities and Shareholders’ Equity $ 2,409,066 $ 1,247 $ 2,410,313 The adjustments above reflect the recording of $1.23 million of unrealized excess benefits on share based compensation and $0.06 million (impact to equity of $0.02 million after consideration of deferred taxes) for the impact of making an accounting policy election to account for forfeitures as they occur. After January 1, 2016, excess tax benefits or deficiencies resulting from share-based payments will be recognized as tax benefit or expense when they occur. Tax benefits of $0.3 million were recorded during the year ended December 31, 2016, as a result of share awards vesting and stock option exercises. In addition, we have elected to apply the amendments related to the presentation of excess tax benefits in the statement of cash flows on a prospective basis. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) ”. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU amends existing guidance related to the accounting for certain financial assets and liabilities. These amendments, among other things, 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 and 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. This amended guidance is effective for us on January 1, 2018. We have reviewed the types of financial instruments impacted by this amended guidance, including certain equity investments and liabilities measured under the fair value election, and have determined that we do not currently own any such instruments. The balance of this amended guidance is expected to impact certain disclosure items but is not expected to have any impact on our consolidated operating results or financial condition. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This ASU amends existing guidance related to the accounting for leases. These amendments, among other things, requires lessees to account for most leases on the balance sheet while recognizing expense on the income statement in a manner similar to existing guidance. For lessors the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. This amended guidance is effective for us on January 1, 2019 and is not expected to have a material impact on our consolidated operating results or financial condition. Based on a review of our operating leases that we currently have in place (see note #18) we do not expect a material change in the recognition, measurement and presentation of lease expense or impact on cash flow. While the primary impact will be the recognition of certain operating leases on our Consolidated Statements of Financial Condition, this impact is not expected to be material. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For securities available for sale, allowances will be recorded rather than reducing the carrying amount as is done under the current other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This amended guidance is effective for us on January 1, 2020. We began evaluating this ASU in 2016 and have formed a committee that includes personnel from various areas of the Bank that meets regularly to discuss the implementation of this ASU. We are in the process of gathering data and reviewing loss methodologies as well as reviewing certain software applications that would assist us in the implementation of this ASU. While we have not yet determined what the impact will be on our consolidated operating results or financial condition by the nature of the implementation of an expected loss model compared to an incurred loss approach, we would expect our AFLL to increase under this ASU.

ACCOUNTING POLICIES (Tables)

ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
ACCOUNTING POLICIES [Abstract]
Condensed consolidated statement of financial position to reflect cumulative effect of adjustments	The impact of this adoption was to adjust our January 1, 2016 Consolidated Statement of Financial Position to reflect cumulative effect adjustments as follows: January 1, 2016 Originally Presented Cumulative Retrospective Adjustments January 1, 2016 Adjusted (Dollars in thousands) Deferred tax assets $ 39,635 $ 1,247 $ 40,882 Total assets $ 2,409,066 $ 1,247 $ 2,410,313 Common stock $ 339,462 $ 62 $ 339,524 Accumulated deficit $ (82,334 ) $ 1,185 $ (81,149 ) Total Shareholders’ Equity $ 251,092 $ 1,247 $ 252,339 Total Liabilities and Shareholders’ Equity $ 2,409,066 $ 1,247 $ 2,410,313

SECURITIES (Tables)

SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2016
SECURITIES [Abstract]
Securities available for sale	Securities available for sale consist of the following at December 31: Amortized Cost Unrealized Fair Value Gains Losses (In thousands) 2016 U.S. agency $ 28,909 $ 159 $ 80 $ 28,988 U.S. agency residential mortgage-backed 156,053 1,173 937 156,289 U.S. agency commercial mortgage-backed 12,799 28 195 12,632 Private label mortgage-backed 35,035 216 524 34,727 Other asset backed 146,829 271 391 146,709 Obligations of states and political subdivisions 175,180 478 4,759 170,899 Corporate 56,356 223 399 56,180 Trust preferred 2,922 — 343 2,579 Foreign government 1,626 — 13 1,613 Total $ 615,709 $ 2,548 $ 7,641 $ 610,616 2015 U.S. agency $ 47,283 $ 309 $ 80 $ 47,512 U.S. agency residential mortgage-backed 195,055 1,584 583 196,056 U.S. agency commercial mortgage-backed 34,017 94 83 34,028 Private label mortgage-backed 5,061 161 319 4,903 Other asset backed 117,431 54 581 116,904 Obligations of states and political subdivisions 145,193 941 1,150 144,984 Corporate 38,895 9 290 38,614 Trust preferred 2,916 — 433 2,483 Total $ 585,851 $ 3,152 $ 3,519 $ 585,484
Investments in a continuous unrealized loss position	Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position, at December 31 follows: Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) 2016 U.S. agency $ 4,179 $ 41 $ 8,217 $ 39 $ 12,396 $ 80 U.S. agency residential mortgage-backed 62,524 732 20,857 205 83,381 937 U.S. agency commercial mortgage-backed 6,079 194 143 1 6,222 195 Private label mortgage-backed 20,545 281 1,413 243 21,958 524 Other asset backed 52,958 172 17,763 219 70,721 391 Obligations of states and political subdivisions 113,078 4,014 14,623 745 127,701 4,759 Corporate 25,546 292 2,810 107 28,356 399 Trust preferred — — 2,579 343 2,579 343 Foreign government 1,613 13 — — 1,613 13 Total $ 286,522 $ 5,739 $ 68,405 $ 1,902 $ 354,927 $ 7,641 Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) 2015 U.S. agency $ 12,164 $ 47 $ 6,746 $ 33 $ 18,910 $ 80 U.S. agency residential mortgage-backed 57,538 316 23,340 267 80,878 583 U.S. agency commercial mortgage-backed 16,747 60 2,247 23 18,994 83 Private label mortgage-backed — — 3,393 319 3,393 319 Other asset backed 102,660 434 5,189 147 107,849 581 Obligations of states and political subdivisions 52,493 597 12,240 553 64,733 1,150 Corporate 30,550 290 — — 30,550 290 Trust preferred — — 2,483 433 2,483 433 Total $ 272,152 $ 1,744 $ 55,638 $ 1,775 $ 327,790 $ 3,519
Trust preferred securities	The following table breaks out our trust preferred securities in further detail as of December 31: 2016 2015 Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss (In thousands) Trust preferred securities Rated issues $ 1,800 $ (123 ) $ 1,690 $ (226 ) Unrated issues 779 (220 ) 793 (207 )
Private label residential mortgage backed securities below investment grade	At December 31, 2016, three private label residential mortgage-backed securities had credit related OTTI and are summarized as follows: Senior Security Super Senior Security Senior Support Security Total (In thousands) As of December 31, 2016 Fair value $ 1,226 $ 1,096 $ 74 $ 2,396 Amortized cost 1,184 1,029 — 2,213 Non-credit unrealized loss — — — — Unrealized gain 42 67 74 183 Cumulative credit related OTTI 757 457 380 1,594 Credit related OTTI recognized in our Consolidated Statements of Operations For the years ended December 31, 2016 $ — $ — $ — $ — 2015 — — — — 2014 9 — — 9
Credit losses recognized in earnings on securities available for sale	A roll forward of credit losses recognized in earnings on securities available for sale for the years ending December 31 follow: 2016 2015 2014 (In thousands) Balance at beginning of year $ 1,844 $ 1,844 $ 1,835 Additions to credit losses on securities for which no previous OTTI was recognized — — — Increases to credit losses on securities for which OTTI was previously recognized — — 9 Total $ 1,844 $ 1,844 $ 1,844
Amortized cost and fair value of securities available for sale by contractual maturity	The amortized cost and fair value of securities available for sale at December 31, 2016, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 18,728 $ 18,751 Maturing after one year but within five years 102,330 101,846 Maturing after five years but within ten years 79,798 78,140 Maturing after ten years 64,137 61,522 264,993 260,259 U.S. agency residential mortgage-backed 156,053 156,289 U.S. agency commercial mortgage-backed 12,799 12,632 Private label mortgage-backed 35,035 34,727 Other asset backed 146,829 146,709 Total $ 615,709 $ 610,616
Gains and losses realized on sale of securities available for sale	A summary of proceeds from the sale of securities available for sale and gains and losses for the years ended December 31 follow: Proceeds Realized Gains (1) Losses (2) (In thousands) 2016 $ 64,103 $ 354 $ 53 2015 12,037 75 — 2014 14,633 329 — (1) Gains in 2014 exclude $0.3 million of realized gain related to a U.S. Treasury short position. (2) Losses in 2014 exclude $0.01 million of credit related OTTI recognized in earnings.

LOANS AND PAYMENT PLAN RECEIV37

LOANS AND PAYMENT PLAN RECEIVABLES (Tables)	12 Months Ended
	Dec. 31, 2016
LOANS AND PAYMENT PLAN RECEIVABLES [Abstract]
Loan portfolios	Our loan portfolios at December 31 follow: 2016 2015 (In thousands) Real estate (1) Residential first mortgages $ 453,348 $ 432,215 Residential home equity and other junior mortgages 105,550 106,297 Construction and land development 77,287 62,629 Other (2) 525,748 498,706 Consumer 234,632 193,350 Commercial 206,607 180,424 Agricultural 5,076 6,830 Payment plan receivables (3) — 34,599 Total loans $ 1,608,248 $ 1,515,050 (1) Includes both residential and non-residential commercial loans secured by real estate. (2) Includes loans secured by multi-family residential and non-farm, non-residential property. (3) Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #1.
Analysis of allowance for loan losses by portfolio segment	An analysis of the allowance for loan losses by portfolio segment for the years ended December 31 follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) 2016 Balance at beginning of period $ 5,670 $ 10,391 $ 1,181 $ 56 $ 5,272 $ 22,570 Additions (deductions) Provision for loan losses (1,945 ) (158 ) 401 (4 ) 397 (1,309 ) Recoveries credited to allowance 2,472 1,047 1,100 — — 4,619 Loans charged against the allowance (1,317 ) (2,599 ) (1,671 ) — — (5,587 ) Reclassification to loans held for sale — — — (52 ) (7 ) (59 ) Balance at end of period $ 4,880 $ 8,681 $ 1,011 $ — $ 5,662 $ 20,234 2015 Balance at beginning of period $ 5,445 $ 13,444 $ 1,814 $ 64 $ 5,223 $ 25,990 Additions (deductions) Provision for loan losses (737 ) (1,744 ) (274 ) (8 ) 49 (2,714 ) Recoveries credited to allowance 2,656 1,258 1,108 — — 5,022 Loans charged against the allowance (1,694 ) (2,567 ) (1,467 ) — — (5,728 ) Balance at end of period $ 5,670 $ 10,391 $ 1,181 $ 56 $ 5,272 $ 22,570 2014 Balance at beginning of period $ 6,827 $ 17,195 $ 2,246 $ 97 $ 5,960 $ 32,325 Additions (deductions) Provision for loan losses (1,683 ) (1,029 ) 349 (36 ) (737 ) (3,136 ) Recoveries credited to allowance 4,914 1,397 1,104 5 — 7,420 Loans charged against the allowance (4,613 ) (4,119 ) (1,885 ) (2 ) — (10,619 ) Balance at end of period $ 5,445 $ 13,444 $ 1,814 $ 64 $ 5,223 $ 25,990
Allowance for loan losses and recorded investment in loans by portfolio segment	Allowance for loan losses and recorded investment in loans by portfolio segment follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) 2016 Allowance for loan losses: Individually evaluated for impairment $ 2,244 $ 6,579 $ 329 $ — $ — $ 9,152 Collectively evaluated for impairment 2,636 2,102 682 — 5,662 11,082 Total ending allowance balance $ 4,880 $ 8,681 $ 1,011 $ — $ 5,662 $ 20,234 Loans Individually evaluated for impairment $ 15,767 $ 59,151 $ 4,913 $ — $ 79,831 Collectively evaluated for impairment 790,228 481,828 261,474 — 1,533,530 Total loans recorded investment 805,995 540,979 266,387 — 1,613,361 Accrued interest included in recorded investment 1,978 2,364 771 — 5,113 Total loans $ 804,017 $ 538,615 $ 265,616 $ — $ 1,608,248 2015 Allowance for loan losses: Individually evaluated for impairment $ 2,708 $ 7,818 $ 457 $ — $ — $ 10,983 Collectively evaluated for impairment 2,962 2,573 724 56 5,272 11,587 Total ending allowance balance $ 5,670 $ 10,391 $ 1,181 $ 56 $ 5,272 $ 22,570 Loans Individually evaluated for impairment $ 16,868 $ 66,375 $ 5,888 $ — $ 89,131 Collectively evaluated for impairment 733,399 433,931 228,827 34,599 1,430,756 Total loans recorded investment 750,267 500,306 234,715 34,599 1,519,887 Accrued interest included in recorded investment 1,869 2,270 698 — 4,837 Total loans $ 748,398 $ 498,036 $ 234,017 $ 34,599 $ 1,515,050
Loans on non-accrual status and past due more than 90 days	Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) at December 31 follow: 90+ and Still Accruing Non- Accrual Total Non- Performing Loans (In thousands) 2016 Commercial Income producing - real estate $ — $ 628 $ 628 Land, land development and construction - real estate — 105 105 Commercial and industrial — 4,430 4,430 Mortgage 1-4 family — 5,248 5,248 Resort lending — 1,507 1,507 Home equity - 1st lien — 222 222 Home equity - 2nd lien — 317 317 Purchased loans — — — Installment Home equity - 1st lien — 266 266 Home equity - 2nd lien — 289 289 Loans not secured by real estate — 351 351 Other — 1 1 Total recorded investment $ — $ 13,364 $ 13,364 Accrued interest included in recorded investment $ — $ — $ — 2015 Commercial Income producing - real estate $ — $ 1,027 $ 1,027 Land, land development and construction - real estate 49 401 450 Commercial and industrial 69 2,028 2,097 Mortgage 1-4 family — 4,744 4,744 Resort lending — 1,094 1,094 Home equity - 1st lien — 187 187 Home equity - 2nd lien — 147 147 Purchased loans — 2 2 Installment Home equity - 1st lien — 106 106 Home equity - 2nd lien — 443 443 Loans not secured by real estate — 421 421 Other — 2 2 Payment plan receivables Full refund — 2 2 Partial refund — 2 2 Other — 1 1 Total recorded investment $ 118 $ 10,607 $ 10,725 Accrued interest included in recorded investment $ 2 $ — $ 2
Aging analysis of loans by class	An aging analysis of loans by class at December 31 follows: Loans Past Due Loans not Past Due Total Loans 30-59 days 60-89 days 90+ days Total (In thousands) 2016 Commercial Income producing - real estate $ — $ — $ 383 $ 383 $ 287,255 $ 287,638 Land, land development and construction - real estate 74 — 31 105 51,670 51,775 Commercial and industrial 100 1,385 66 1,551 465,031 466,582 Mortgage 1-4 family 2,361 869 5,248 8,478 306,063 314,541 Resort lending — — 1,507 1,507 101,541 103,048 Home equity - 1st lien 149 — 222 371 28,645 29,016 Home equity - 2nd lien 470 218 317 1,005 54,232 55,237 Purchased loans 13 2 — 15 39,122 39,137 Installment Home equity - 1st lien 311 48 266 625 12,025 12,650 Home equity - 2nd lien 238 41 289 568 13,390 13,958 Loans not secured by real estate 533 95 351 979 236,022 237,001 Other 8 1 1 10 2,768 2,778 Total recorded investment $ 4,257 $ 2,659 $ 8,681 $ 15,597 $ 1,597,764 $ 1,613,361 Accrued interest included in recorded investment $ 45 $ 19 $ — $ 64 $ 5,049 $ 5,113 2015 Commercial Income producing - real estate $ 203 $ 209 $ 647 $ 1,059 $ 305,155 $ 306,214 Land, land development and construction - real estate — — 252 252 44,231 44,483 Commercial and industrial 785 16 151 952 398,618 399,570 Mortgage 1-4 family 1,943 640 4,744 7,327 269,880 277,207 Resort lending 307 — 1,094 1,401 114,619 116,020 Home equity - 1st lien 50 — 187 237 22,327 22,564 Home equity - 2nd lien 439 54 147 640 50,618 51,258 Purchased loans 9 1 2 12 33,245 33,257 Installment Home equity - 1st lien 315 107 106 528 16,707 17,235 Home equity - 2nd lien 231 149 443 823 19,727 20,550 Loans not secured by real estate 567 83 421 1,071 193,680 194,751 Other 15 3 2 20 2,159 2,179 Payment plan receivables Full refund 492 62 2 556 21,294 21,850 Partial refund 415 228 2 645 5,834 6,479 Other 110 3 1 114 6,156 6,270 Total recorded investment $ 5,881 $ 1,555 $ 8,201 $ 15,637 $ 1,504,250 $ 1,519,887 Accrued interest included in recorded investment $ 53 $ 17 $ 2 $ 72 $ 4,765 $ 4,837
Impaired loans	Impaired loans are as follows : December 31, 2016 2015 (In thousands) Impaired loans with no allocated allowance TDR $ 1,782 $ 2,518 Non - TDR 1,107 203 Impaired loans with an allocated allowance TDR - allowance based on collateral 3,527 4,810 TDR - allowance based on present value cash flow 72,613 81,002 Non - TDR - allowance based on collateral 491 260 Non - TDR - allowance based on present value cash flow — — Total impaired loans $ 79,520 $ 88,793 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 1,868 $ 2,436 TDR - allowance based on present value cash flow 7,146 8,471 Non - TDR - allowance based on collateral 138 76 Non - TDR - allowance based on present value cash flow — — Total amount of allowance for loan losses allocated $ 9,152 $ 10,983 Impaired loans by class as of December 31 are as follows (1): 2016 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) With no related allowance recorded: Commercial Income producing - real estate $ 517 $ 768 $ — $ 641 $ 851 $ — Land, land development & construction-real estate 31 709 — 818 1,393 — Commercial and industrial 2,341 3,261 — 1,245 1,241 — Mortgage 1-4 family 2 387 — 23 183 — Resort lending — — — — — — Home equity - 1st lien — — — — — — Home equity - 2nd lien — — — — — — Installment Home equity - 1st lien — 66 — — 76 — Home equity - 2nd lien — — — — — — Loans not secured by real estate — — — — — — Other — — — — — — 2,891 5,191 — 2,727 3,744 — 2016 2015 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (In thousands) With an allowance recorded: Commercial Income producing - real estate 7,737 7,880 554 8,377 9,232 516 Land, land development & construction-real estate 239 244 36 1,690 1,778 296 Commercial and industrial 4,902 5,246 1,654 4,097 4,439 1,896 Mortgage 1-4 family 41,701 43,479 4,100 47,792 49,808 5,132 Resort lending 16,898 16,931 2,453 18,148 18,319 2,662 Home equity - 1st lien 235 242 10 168 172 9 Home equity - 2nd lien 315 398 16 244 325 15 Installment Home equity - 1st lien 1,994 2,117 118 2,364 2,492 143 Home equity - 2nd lien 2,415 2,443 182 2,929 2,951 271 Loans not secured by real estate 504 540 29 587 658 42 Other — — — 8 8 1 76,940 79,520 9,152 86,404 90,182 10,983 Total Commercial Income producing - real estate 8,254 8,648 554 9,018 10,083 516 Land, land development & construction-real estate 270 953 36 2,508 3,171 296 Commercial and industrial 7,243 8,507 1,654 5,342 5,680 1,896 Mortgage 1-4 family 41,703 43,866 4,100 47,815 49,991 5,132 Resort lending 16,898 16,931 2,453 18,148 18,319 2,662 Home equity - 1st lien 235 242 10 168 172 9 Home equity - 2nd lien 315 398 16 244 325 15 Installment Home equity - 1st lien 1,994 2,183 118 2,364 2,568 143 Home equity - 2nd lien 2,415 2,443 182 2,929 2,951 271 Loans not secured by real estate 504 540 29 587 658 42 Other — — — 8 8 1 Total $ 79,831 $ 84,711 $ 9,152 $ 89,131 $ 93,926 $ 10,983 Accrued interest included in recorded investment $ 311 $ 338 (1) There were no impaired payment plan receivables or purchased mortgage loans at December 31, 2016 or 2015.
Average recorded investment in and interest income earned on impaired loans by class	Average recorded investment in and interest income earned on impaired loans by class for the years ended December 31 follows (1): 2016 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial Income producing - real estate $ 609 $ 2 $ 4,520 $ 387 $ 7,660 $ 250 Land, land development & construction-real estate 330 7 952 79 1,145 64 Commercial and industrial 961 54 2,125 257 3,351 152 Mortgage 1-4 family 10 16 19 11 29 — Resort lending — — 12 — 40 1 Home equity - 1st lien — — — — — — Home equity - 2nd lien — — — — — — Installment Home equity - 1st lien — 5 — 5 — 2 Home equity - 2nd lien 3 — — — — — Loans not secured by real estate — — — — — — Other — — — — — — 1,913 84 7,628 739 12,225 469 With an allowance recorded: Commercial Income producing - real estate 8,069 427 12,677 439 12,772 677 Land, land development & construction-real estate 1,129 31 2,219 54 3,939 149 Commercial and industrial 5,723 189 6,663 104 8,500 294 Mortgage 1-4 family 44,923 1,918 50,421 2,140 55,877 2,286 Resort lending 17,544 619 18,448 670 19,458 753 Home equity - 1st lien 226 10 161 8 160 6 Home equity - 2nd lien 248 14 172 13 57 2 Installment Home equity - 1st lien 2,185 147 2,539 176 2,837 174 Home equity - 2nd lien 2,661 162 3,055 193 3,359 188 Loans not secured by real estate 546 35 653 37 719 35 Other 4 — 10 1 14 1 83,258 3,552 97,018 3,835 107,692 4,565 2016 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) Total Commercial Income producing - real estate 8,678 429 17,197 826 20,432 927 Land, land development & construction-real estate 1,459 38 3,171 133 5,084 213 Commercial and industrial 6,684 243 8,788 361 11,851 446 Mortgage 1-4 family 44,933 1,934 50,440 2,151 55,906 2,286 Resort lending 17,544 619 18,460 670 19,498 754 Home equity - 1st lien 226 10 161 8 160 6 Home equity - 2nd lien 248 14 172 13 57 2 Installment Home equity - 1st lien 2,185 152 2,539 181 2,837 176 Home equity - 2nd lien 2,664 162 3,055 193 3,359 188 Loans not secured by real estate 546 35 653 37 719 35 Other 4 — 10 1 14 1 Total $ 85,171 $ 3,636 $ 104,646 $ 4,574 $ 119,917 $ 5,034 (1) There were no impaired payment plan receivables or purchased mortgage loans during the years ending December 31, 2016, 2015 and 2014.
Troubled debt restructurings	Troubled debt restructurings at December 31 follow: 2016 Commercial Retail (1) Total (In thousands) Performing TDR's $ 10,560 $ 59,726 $ 70,286 Non-performing TDR's (2) 3,565 4,071 (3) 7,636 Total $ 14,125 $ 63,797 $ 77,922 2015 Commercial Retail (1) Total (In thousands) Performing TDR's $ 13,318 $ 68,194 $ 81,512 Non-performing TDR's (2) 3,041 3,777 (3) 6,818 Total $ 16,359 $ 71,971 $ 88,330 (1) Retail loans include mortgage and installment loan segments. (2) Included in non-performing loans table above. (3) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
Troubled debt restructuring during the period	Loans that have been classified as troubled debt restructurings during the years ended December 31 follow (1): Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2016 Commercial Income producing - real estate 4 $ 290 $ 290 Land, land development & construction-real estate — — — Commercial and industrial 9 2,044 2,027 Mortgage 1-4 family 9 927 1,004 Resort lending 1 116 117 Home equity - 1st lien 1 107 78 Home equity - 2nd lien 2 77 78 Installment Home equity - 1st lien 6 141 145 Home equity - 2nd lien 6 154 157 Loans not secured by real estate 2 46 46 Other — — — Total 40 $ 3,902 $ 3,942 2015 Commercial Income producing - real estate 2 $ 229 $ 227 Land, land development & construction-real estate — — — Commercial and industrial 17 3,188 2,960 Mortgage 1-4 family 8 1,345 1,128 Resort lending 1 313 307 Home equity - 1st lien 1 20 20 Home equity - 2nd lien 1 27 27 Installment Home equity - 1st lien 6 220 186 Home equity - 2nd lien 8 228 217 Loans not secured by real estate 2 19 25 Other — — — Total 46 $ 5,589 $ 5,097 Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2014 Commercial Income producing - real estate 4 $ 426 $ 389 Land, land development & construction-real estate 2 55 44 Commercial and industrial 13 2,236 1,606 Mortgage 1-4 family 15 1,576 1,570 Resort lending 6 1,583 1,572 Home equity - 1st lien 1 17 14 Home equity - 2nd lien 1 85 84 Installment Home equity - 1st lien 13 631 523 Home equity - 2nd lien 9 400 400 Loans not secured by real estate 6 114 106 Other — — — Total 70 $ 7,123 $ 6,308 (1) There were no payment plan receivables or purchased mortgage loans classified as troubled debt restructurings during the years ending 2016, 2015 and 2014.
Troubled debt restructuring during the past twelve months that subsequently defaulted	Loans that have been classified as troubled debt restructured during the past twelve months and that have subsequently defaulted during the years ended December 31 follows: Number of Contracts Recorded Balance (Dollars in thousands) 2016 Commercial Income producing - real estate — $ — Land, land development & construction-real estate — — Commercial and industrial 1 1,767 Mortgage 1-4 family — — Resort lending — — Home equity - 1st lien — — Home equity - 2nd lien — — Installment Home equity - 1st lien — — Home equity - 2nd lien — — Loans not secured by real estate — — Other — — Total 1 $ 1,767 Number of Contracts Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate — $ — Land, land development & construction-real estate — — Commercial and industrial 2 157 Mortgage 1-4 family 2 73 Resort lending — — Home equity - 1st lien — — Home equity - 2nd lien — — Installment Home equity - 1st lien — — Home equity - 2nd lien — — Loans not secured by real estate 1 4 Other — — Total 5 $ 234 2014 Commercial Income producing - real estate — $ — Land, land development & construction-real estate — — Commercial and industrial 2 319 Mortgage 1-4 family 1 125 Resort lending — — Home equity - 1st lien — — Home equity - 2nd lien — — Installment Home equity - 1st lien — — Home equity - 2nd lien — — Loans not secured by real estate — — Other — — Total 3 $ 444
Summary of loan ratings by loan class	The following table summarizes loan ratings by loan class for our commercial loan segment at December 31: Commercial Non-watch 1-6 Watch 7-8 Substandard Accrual 9 Non- Accrual 10-11 Total (In thousands) 2016 Income producing - real estate $ 282,886 $ 3,787 $ 337 $ 628 $ 287,638 Land, land development and construction - real estate 51,603 67 — 105 51,775 Commercial and industrial 449,365 9,788 2,998 4,431 466,582 Total $ 783,854 $ 13,642 $ 3,335 $ 5,164 $ 805,995 Accrued interest included in total $ 1,915 $ 52 $ 11 $ — $ 1,978 2015 Income producing - real estate $ 296,898 $ 6,866 $ 1,423 $ 1,027 $ 306,214 Land, land development and construction - real estate 40,844 2,995 243 401 44,483 Commercial and industrial 371,357 19,502 6,683 2,028 399,570 Total $ 709,099 $ 29,363 $ 8,349 $ 3,456 $ 750,267 Accrued interest included in total $ 1,729 $ 108 $ 32 $ — $ 1,869 The following tables summarize credit scores by loan class for our mortgage and installment loan segments at December 31: Mortgage (1) 1-4 Family Resort Lending Home Equity 1st Lien Home Equity 2nd Lien Purchased Loans Total (In thousands) 2016 800 and above $ 36,534 $ 10,484 $ 6,048 $ 8,392 $ 8,462 $ 69,920 750-799 102,382 41,999 10,006 20,113 20,984 195,484 700-749 69,337 24,727 5,706 12,360 9,115 121,245 650-699 50,621 13,798 4,106 8,167 437 77,129 600-649 25,270 5,769 1,674 3,067 — 35,780 550-599 13,747 3,030 455 1,699 — 18,931 500-549 9,215 1,438 486 981 — 12,120 Under 500 5,145 92 255 279 — 5,771 Unknown 2,290 1,711 280 179 139 4,599 Total $ 314,541 $ 103,048 $ 29,016 $ 55,237 $ 39,137 $ 540,979 Accrued interest included in total $ 1,466 $ 450 $ 111 $ 226 $ 111 $ 2,364 2015 800 and above $ 28,760 $ 13,943 $ 4,374 $ 7,696 $ 2,310 $ 57,083 750-799 78,802 40,888 7,137 17,405 23,283 167,515 700-749 56,519 31,980 4,341 11,022 6,940 110,802 650-699 51,813 17,433 3,203 7,691 — 80,140 600-649 27,966 4,991 1,467 3,684 — 38,108 550-599 16,714 3,070 1,027 1,918 — 22,729 500-549 10,610 1,051 572 1,295 — 13,528 Under 500 4,708 554 244 265 — 5,771 Unknown 1,315 2,110 199 282 724 4,630 Total $ 277,207 $ 116,020 $ 22,564 $ 51,258 $ 33,257 $ 500,306 Accrued interest included in total $ 1,396 $ 477 $ 87 $ 196 $ 114 $ 2,270 (1) Credit scores have been updated within the last twelve months. Installment (1) Home Equity 1st Lien Home Equity 2nd Lien Loans not Secured by Real Estate Other Total (In thousands) 2016 800 and above $ 1,354 $ 1,626 $ 53,281 $ 86 $ 56,347 750-799 2,478 3,334 107,460 793 114,065 700-749 1,920 2,686 43,456 821 48,883 650-699 2,852 2,541 19,053 624 25,070 600-649 1,691 1,775 4,638 298 8,402 550-599 1,231 1,063 1,942 53 4,289 500-549 981 692 1,095 45 2,813 Under 500 114 220 276 24 634 Unknown 29 21 5,800 34 5,884 Total $ 12,650 $ 13,958 $ 237,001 $ 2,778 $ 266,387 Accrued interest included in total $ 54 $ 59 $ 638 $ 20 $ 771 Installment (1) Home Equity 1st Lien Home Equity 2nd Lien Loans not Secured by Real Estate Other Total (In thousands) 2015 800 and above $ 1,792 $ 1,782 $ 44,254 $ 58 $ 47,886 750-799 4,117 5,931 86,800 531 97,379 700-749 2,507 3,899 34,789 694 41,889 650-699 3,508 4,182 16,456 499 24,645 600-649 2,173 2,153 4,979 200 9,505 550-599 1,800 1,346 1,997 109 5,252 500-549 1,056 855 1,170 61 3,142 Under 500 223 370 385 23 1,001 Unknown 59 32 3,921 4 4,016 Total $ 17,235 $ 20,550 $ 194,751 $ 2,179 $ 234,715 Accrued interest included in total $ 78 $ 83 $ 520 $ 17 $ 698 (1) Credit scores have been updated within the last twelve months. The following table summarizes credit ratings of insurer or risk retention group counterparties by class of payment plan receivable at December 31: Payment Plan Receivables Full Refund Partial Refund Other Total (In thousands) 2015 AM Best rating A+ $ — $ 6 $ — $ 6 A 2,712 5,203 — 7,915 A- 3,418 1,177 6,265 10,860 Not rated 15,720 93 5 15,818 Total $ 21,850 $ 6,479 $ 6,270 $ 34,599
Other mortgage loans service's principal balances	Mortgage loans serviced for others are not reported as assets on the Consolidated Statements of Financial Condition. The principal balances of these loans at December 31 follow: 2016 2015 (In thousands) Mortgage loans serviced for: Fannie Mae $ 944,703 $ 898,443 Freddie Mac 622,885 707,891 Ginnie Mae 85,290 37,884 Other 6,115 107 Total $ 1,658,993 $ 1,644,325
Schedule of capitalized mortgage loan servicing rights	An analysis of capitalized mortgage loan servicing rights for the years ended December 31 follows: 2016 2015 2014 (In thousands) Balance at beginning of year $ 12,436 $ 12,106 $ 13,710 Originated servicing rights capitalized 3,119 2,697 1,823 Amortization (2,850 ) (2,868 ) (2,509 ) Change in valuation allowance 966 501 (918 ) Balance at end of year $ 13,671 $ 12,436 $ 12,106 Valuation allowance $ 2,306 $ 3,272 $ 3,773 Loans sold and serviced that have had servicing rights capitalized $ 1,657,996 $ 1,643,086 $ 1,661,269

OTHER REAL ESTATE (Tables)

OTHER REAL ESTATE (Tables)	12 Months Ended
	Dec. 31, 2016
OTHER REAL ESTATE [Abstract]
Summary of other real estate activity	A summary of other real estate activity for the years ended December 31 follows (1): 2016 2015 2014 (In thousands) Balance at beginning of year, net of valuation allowance $ 7,070 $ 6,370 $ 18,088 Loans transferred to other real estate 2,355 6,694 6,143 Sales of other real estate (3,596 ) (5,502 ) (17,198 ) Additions to valuation allowance charged to expense (873 ) (492 ) (663 ) Balance at end of year, net of valuation allowance $ 4,956 $ 7,070 $ 6,370 (1) Table excludes other repossessed assets totaling $0.05 and $0.08 million at December 31, 2016 and 2015, respectively.
Valuation allowance for other real estate owned	We periodically review our real estate properties and establish valuation allowances on these properties if values have declined since the date of acquisition. An analysis of our valuation allowance for other real estate follows: 2016 2015 2014 (In thousands) Balance at beginning of year $ 1,692 $ 2,511 $ 4,047 Additions charged to expense 873 492 663 Direct write-downs upon sale (1,772 ) (1,311 ) (2,199 ) Balance at end of year $ 793 $ 1,692 $ 2,511

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
PROPERTY AND EQUIPMENT [Abstract]
Summary of property and equipment	A summary of property and equipment at December 31 follows: 2016 2015 (In thousands) Land $ 15,486 $ 15,152 Buildings 54,656 57,638 Equipment 72,090 79,842 142,232 152,632 Accumulated depreciation and amortization (102,057 ) (109,529 ) Property and equipment, net $ 40,175 $ 43,103

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
INTANGIBLE ASSETS [Abstract]
Other intangible assets, net of amortization	Intangible assets, net of amortization, at December 31 follows: 2016 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 6,118 $ 4,186 $ 6,118 $ 3,838
Estimated amortization of other intangible assets	A summary of estimated core deposit intangible amortization at December 31, 2016, follows: (In thousands) 2017 $ 346 2018 346 2019 346 2020 346 2021 346 2022 and thereafter 202 Total $ 1,932

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2016
DEPOSITS [Abstract]
Summary of interest expense on deposits	A summary of interest expense on deposits for the years ended December 31 follows: 2016 2015 2014 (In thousands) Savings and interest bearing checking $ 1,115 $ 1,056 $ 1,064 Time deposits under $100,000 1,628 1,586 2,467 Time deposits of $100,000 or more 2,198 1,367 1,436 Total $ 4,941 $ 4,009 $ 4,967
Summary of maturity of time deposits	A summary of the maturity of time deposits at December 31, 2016, follows: (In thousands) 2017 $ 363,382 2018 74,019 2019 19,838 2020 11,341 2021 15,685 2022 and thereafter 853 Total $ 485,118
Summary of reciprocal deposits	A summary of reciprocal deposits at December 31 follows: 2016 2015 (In thousands) Demand $ 3,055 $ 3,436 Money market 4,350 8,340 Time 31,252 38,431 Total $ 38,657 $ 50,207

OTHER BORROWINGS (Tables)

OTHER BORROWINGS (Tables)	12 Months Ended
	Dec. 31, 2016
OTHER BORROWINGS [Abstract]
Summary of other borrowings	A summary of other borrowings at December 31 follows: 2016 2015 (In thousands) Advances from the FHLB $ 9,428 $ 11,949 Other 5 5 Total $ 9,433 $ 11,954
Schedule of maturity dates and weighted average interest rates FHLB	The maturity dates and weighted average interest rates of FHLB advances at December 31 follow: 2016 2015 Amount Rate Amount Rate (Dollars in thousands) Fixed-rate advances 2016 $ 2,089 6.55 % 2017 $ 1,192 7.04 % 1,258 7.04 2018 5,183 5.99 5,437 5.99 2019 — — 2020 3,053 7.49 3,165 7.49 Total advances $ 9,428 6.61 % $ 11,949 6.59 %
Schedule of repayments of federal home loan bank advances	A summary of contractually required repayments of FHLB advances at December 31, 2016 follow: (In thousands) 2017 $ 1,587 2018 5,042 2019 143 2020 2,656 Total $ 9,428

SUBORDINATED DEBENTURES (Tables

SUBORDINATED DEBENTURES (Tables)	12 Months Ended
	Dec. 31, 2016
SUBORDINATED DEBENTURES [Abstract]
Schedule of information regarding subordinated debentures	Summary information regarding subordinated debentures as of December 31 follows: 2016 and 2015 Entity Name Issue Date Subordinated Debentures Trust Preferred Securities Issued Common Stock Issued (In thousands) IBC Capital Finance III May 2007 $ 12,372 $ 12,000 $ 372 IBC Capital Finance IV September 2007 15,465 15,000 465 Midwest Guaranty Trust I November 2002 7,732 7,500 232 $ 35,569 $ 34,500 $ 1,069
Schedule of subordinated debentures and trust preferred securities	Other key terms for the subordinated debentures and trust preferred securities that were outstanding at December 31, 2016 and 2015 follow: Entity Name Maturity Date Interest Rate First Permitted Redemption Date IBC Capital Finance III July 30, 2037 3 month LIBOR plus 1.60% July 30, 2012 IBC Capital Finance IV September 15, 2037 3 month LIBOR plus 2.85% September 15, 2012 Midwest Guaranty Trust I November 7, 2032 3 month LIBOR plus 3.45% November 7, 2007

COMMITMENTS AND CONTINGENT LI44

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]
Financial instruments with off-balance sheet risk	A summary of financial instruments with off-balance sheet risk at December 31 follows: 2016 2015 (In thousands) Financial instruments whose risk is represented by contract amounts Commitments to extend credit $ 364,270 $ 243,458 Standby letters of credit 3,140 3,582
Analysis of vehicle service contract counterparty receivable	An analysis of our vehicle service contract counterparty receivable, net follows: 2016 2015 2014 (In thousands) Balance at beginning of year, net of reserve $ 7,229 $ 7,237 $ 7,716 Transfers in from payment plan receivables 200 1,203 180 Reserves (established) reversed and charge-offs recorded to expense 88 (119 ) (199 ) Recovery of previously charged-off receivable 1,500 — — Reserve established on previously charged-off receivable (1,500 ) — — Transferred from contingency reserves (38 ) — (75 ) Transfer to held for sale (422 ) — — Cash received (4,786 ) (1,092 ) (385 ) Balance at end of year, net of reserve $ 2,271 $ 7,229 $ 7,237 Reserve at end of year $ 1,437 $ 56 $ 1,370
Analysis of vehicle service contract counterparty reserve	An analysis of our vehicle service contract counterparty reserve follows: 2016 2015 2014 (In thousands) Balance at beginning of year $ 56 $ 1,370 $ 1,375 Additions (recoveries) recorded to expense (88 ) 119 199 Reserve established on previously charged-off receivable 1,500 — — Charge-offs, net (31 ) (1,433 ) (204 ) Balance at end of year $ 1,437 $ 56 $ 1,370

SHAREHOLDERS' EQUITY AND INCO45

SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE [Abstract]
Reconciliation of basic and diluted loss per share	A reconciliation of basic and diluted net income per common share for the years ended December 31 follows: 2016 2015 2014 (In thousands, except per share amounts) Net income $ 22,766 $ 20,017 $ 18,021 Weighted average shares outstanding (1) 21,378 22,716 22,927 Effect of stock options 151 119 124 Stock units for deferred compensation plan for non-employee directors 115 112 114 Performance share units 48 — — Restricted stock units 35 233 306 Weighted average shares outstanding for calculation of diluted earnings per share 21,727 23,180 23,471 Net income per common share Basic (1) $ 1.06 $ 0.88 $ 0.79 Diluted $ 1.05 $ 0.86 $ 0.77 (1) Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

INCOME TAX (Tables)

INCOME TAX (Tables)	12 Months Ended
	Dec. 31, 2016
INCOME TAX [Abstract]
Composition of income tax expense (benefit)	The composition of income tax expense for the years ended December 31 follows: 2016 2015 2014 (In thousands) Current expense (benefit) $ 362 $ 200 $ (359 ) Deferred expense 9,756 9,128 7,672 Valuation allowance - change in estimate 17 35 (118 ) Income tax expense $ 10,135 $ 9,363 $ 7,195
Reconciliation of income tax benefit computed by applying the statutory federal income tax rate	A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate of 35% in each year presented to the income before income tax for the years ended December 31 follows: 2016 2015 2014 (In thousands) Statutory rate applied to income before income tax $ 11,515 $ 10,283 $ 8,826 Tax-exempt income (534 ) (434 ) (522 ) Bank owned life insurance (477 ) (449 ) (480 ) Share-based compensation (348 ) — — Unrecognized tax benefit (155 ) (135 ) (595 ) Non-deductible meals, entertainment and memberships 46 43 53 Net change in valuation allowance 17 35 (118 ) Other, net 71 20 31 Income tax expense $ 10,135 $ 9,363 $ 7,195
Summary of deferred tax assets and deferred tax liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow: 2016 2015 (In thousands) Deferred tax assets Loss carryforwards $ 17,131 $ 25,516 Allowance for loan losses 7,104 7,901 Alternative minimum tax credit carry forward 4,064 3,427 Property and equipment 3,143 3,369 Unrealized loss on securities available for sale 1,782 128 Purchase premiums, net 1,460 1,755 Share based payments 1,011 786 Litigation settlement 805 — 2016 2015 (In thousands) Vehicle service contract counterparty contingency reserve 500 21 Unrealized loss on trading securities 486 578 Other than temporary impairment charge on securities available for sale 400 382 Deferred compensation 375 404 Valuation allowance on other real estate 277 592 Non accrual loan interest income 246 232 Reserve for unfunded lending commitments 228 228 Loss reimbursement on sold loans reserve 196 186 Other 1 — Gross deferred tax assets 39,209 45,505 Valuation allowance (1,071 ) (1,054 ) Gross deferred tax assets, net of valuation allowance 38,138 44,451 Deferred tax liabilities Capitalized mortgage loan servicing rights 4,785 4,353 Deferred loan fees 490 256 Federal Home Loan Bank stock 45 45 Other — 162 Gross deferred tax liabilities 5,320 4,816 Deferred tax assets, net $ 32,818 $ 39,635
Schedule of federal net operating loss forwards	At December 31, 2016, we had federal NOL carryforwards of approximately $46.0 million which, if not used against taxable income, will expire as follows: (In thousands) 2031 $ 8,301 2032 37,739 Total $ 46,040
Schedule of changes in unrecognized tax benefits	Changes in unrecognized tax benefits for the years ended December 31 follow: 2016 2015 2014 (In thousands) Balance at beginning of year $ 976 $ 1,091 $ 1,672 Additions based on tax positions related to the current year 19 20 18 Reductions due to the statute of limitations (155 ) (135 ) (595 ) Reductions due to settlements — — (4 ) Balance at end of year $ 840 $ 976 $ 1,091

SHARE BASED COMPENSATION AND 47

SHARE BASED COMPENSATION AND BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2016
SHARE BASED COMPENSATION AND BENEFIT PLANS [Abstract]
Summary of outstanding stock option grants and transactions	A summary of outstanding stock option grants and related transactions follows: Number of Shares Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregated Intrinsic Value (In thousands) Outstanding at January 1, 2016 235,596 $ 4.94 Granted — Exercised (21,614 ) 3.93 Forfeited (664 ) 6.42 Expired (2,300 ) 3.54 Outstanding at December 31, 2016 211,018 $ 5.05 5.09 $ 3,514 Vested and expected to vest at December 31, 2016 211,018 $ 5.05 5.09 $ 3,514 Exercisable at December 31, 2016 211,018 $ 5.05 5.09 $ 3,514
Summary of non-vested restricted stock and stock units and transactions	A summary of outstanding non-vested stock and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2016 261,981 $ 11.29 Granted 147,160 15.39 Vested (107,795 ) 7.92 Forfeited (4,924 ) 13.24 Outstanding at December 31, 2016 296,422 $ 14.52
Information regarding options exercised	Certain information regarding options exercised during the periods ending December 31 follows: 2016 2015 2014 (In thousands) Intrinsic value $ 254 $ 444 $ 321 Cash proceeds received $ 85 $ 137 $ 96 Tax benefit realized $ 89 $ 155 $ 112

OTHER NON-INTEREST INCOME (Tabl

OTHER NON-INTEREST INCOME (Tables)	12 Months Ended
	Dec. 31, 2016
OTHER NON-INTEREST INCOME [Abstract]
Schedule of other non-interest income	Other non-interest income for the years ended December 31 follows: 2016 2015 2014 (In thousands) Investment and insurance commissions $ 1,647 $ 1,827 $ 1,814 ATM fees 1,496 1,551 1,599 Bank owned life insurance 1,124 1,282 1,371 Other real estate rental income 58 128 1,295 Other 3,091 2,904 2,852 Total other non-interest income $ 7,416 $ 7,692 $ 8,931

DERIVATIVE FINANCIAL INSTRUME49

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]
Derivative financial instruments according to type of hedge designation	Our derivative financial instruments according to the type of hedge in which they are designated at December 31 follow: 2016 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 26,658 0.1 $ 646 Mandatory commitments to sell mortgage loans 61,954 0.1 630 Pay-fixed interest rate swap agreements 46,121 8.6 249 Pay-variable interest rate swap agreements 46,121 8.6 (249 ) Purchased options 3,119 4.5 238 Written options 3,119 4.5 (238 ) Total $ 187,092 4.4 $ 1,276 2015 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 20,581 0.1 $ 550 Mandatory commitments to sell mortgage loans 46,320 0.1 69 Pay-fixed interest rate swap agreements 27,587 8.0 (497 ) Pay-variable interest rate swap agreements 27,587 8.0 497 Purchased options 2,098 5.7 122 Written options 2,098 5.7 (122 ) Total $ 126,271 3.7 $ 619
Fair value of derivative instruments	The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Consolidated Statements of Financial Condition for the periods presented: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives December 31, December 31, 2016 2015 2016 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives not designated as hedging instruments Rate-lock mortgage loan commitments Other assets $ 646 Other assets $ 550 Other liabilities $ — Other liabilities $ — Mandatory commitments to sell mortgage loans Other assets 630 Other assets 69 Other liabilities — Other liabilities — Pay-fixed interest rate swap agreements Other assets 493 Other assets — Other liabilities 244 Other liabilities 497 Pay-variable interest rate swap agreements Other assets 244 Other assets 497 Other liabilities 493 Other liabilities — Purchased options Other assets 238 Other assets 122 Other liabilities — Other liabilities — Written options Other assets — Other assets — Other liabilities 238 Other liabilities 122 Total derivatives $ 2,251 $ 1,238 $ 975 $ 619
Effect of derivative financial instruments on consolidated statement of operation	The effect of derivative financial instruments on the Consolidated Statements of Operations follows: Year Ended December 31, Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion) Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain (Loss) Recognized in Income (1) Gain (Loss) Recognized in Income (1) 2016 2015 2014 2016 2015 2014 2016 2015 2014 (In thousands) Cash Flow Hedges Pay-fixed interest rate swap agreements $ — $ — $ — Interest $ — $ — $ (380 ) Interest $ — $ — $ — Total $ — $ — $ — $ — $ — $ (380 ) $ — $ — $ — No hedge designation Rate-lock mortgage loan commitments Net gains on $ 96 $ 113 $ 71 Mandatory commitments to sell mortgage loans Net gains on 561 253 (312 ) Pay-fixed interest rate swap agreements Interest 746 (315 ) (182 ) Pay-variable interest rate swap agreements Interest (746 ) 315 182 Purchased options Interest 116 122 — Written options Interest (116 ) (122 ) — UST short position Net gains on — — 295 Total $ 657 $ 366 $ 54 (1) For cash flow hedges, this location and amount refers to the ineffective portion.

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS [Abstract]
Summary of loans to directors and executive officers	A summary of loans to our directors and executive officers whose borrowing relationship (which includes loans to entities in which the individual owns a 10% or more voting interest) exceeds $60,000 for the years ended December 31 follows: 2016 2015 (In thousands) Balance at beginning of year $ 190 $ 216 New loans and advances 594 — Repayments (369 ) (26 ) Balance at end of year $ 415 $ 190

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2016
LEASES [Abstract]
Summary of future minimum lease payments under non-cancelable operating leases	A summary of future minimum lease payments under non-cancelable operating leases at December 31, 2016, follows: (In thousands) 2017 $ 1,444 2018 1,313 2019 994 2020 927 2021 460 2022 and thereafter 499 Total $ 5,637

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	12 Months Ended
	Dec. 31, 2016
REGULATORY MATTERS [Abstract]
Actual capital amounts and ratios	Our actual capital amounts and ratios at December 31 follow: Actual Minimum for Adequately Capitalized Institutions Minimum for Well-Capitalized Institutions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) 2016 Total capital to risk-weighted assets Consolidated $ 286,289 15.86 % $ 144,413 8.00 % NA NA Independent Bank 270,855 15.02 144,223 8.00 $ 180,279 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 265,405 14.70 % $ 108,309 6.00 % NA NA Independent Bank 249,971 13.87 108,167 6.00 $ 144,223 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 238,996 13.24 % $ 81,232 4.50 % NA NA Independent Bank 249,971 13.87 81,126 4.50 $ 117,181 6.50 % Tier 1 capital to average assets Consolidated $ 265,405 10.50 % $ 101,112 4.00 % NA NA Independent Bank 249,971 9.90 101,019 4.00 $ 126,274 5.00 % 2015 Total capital to risk-weighted assets Consolidated $ 278,170 16.65 % $ 133,668 8.00 % NA NA Independent Bank 261,894 15.69 133,514 8.00 $ 166,893 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 257,050 15.38 % $ 100,251 6.00 % NA NA Independent Bank 240,867 14.43 100,136 6.00 $ 133,514 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 239,271 14.32 % $ 75,188 4.50 % NA NA Independent Bank 240,867 14.43 75,102 4.50 $ 108,480 6.50 % Tier 1 capital to average assets Consolidated $ 257,050 10.91 % $ 94,217 4.00 % NA NA Independent Bank 240,867 10.23 94,145 4.00 $ 117,682 5.00 % NA - Not applicable
Components of regulatory capital	The components of our regulatory capital are as follows: Consolidated Independent Bank December 31, December 31, 2016 2015 2016 2015 (In thousands) Total shareholders' equity $ 248,980 $ 251,092 $ 258,814 $ 259,947 Add (deduct) Accumulated other comprehensive loss for regulatory purposes 3,310 238 3,310 238 Intangible assets (1,159 ) (912 ) (1,159 ) (912 ) Disallowed deferred tax assets (12,135 ) (11,147 ) (10,994 ) (18,406 ) Common equity tier 1 capital 238,996 239,271 249,971 240,867 Qualifying trust preferred securities 34,500 34,500 — — Disallowed deferred tax assets (8,091 ) (16,721 ) — — Tier 1 capital 265,405 257,050 249,971 240,867 Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 20,884 21,120 20,884 21,027 Total risk-based capital $ 286,289 $ 278,170 $ 270,855 $ 261,894

FAIR VALUE DISCLOSURES (Tables)

FAIR VALUE DISCLOSURES (Tables)	12 Months Ended
	Dec. 31, 2016
FAIR VALUE DISCLOSURES [Abstract]
Assets and liabilities measured at fair value	Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows: Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2016: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 410 $ 410 $ — $ — Securities available for sale U.S. agency 28,988 — 28,988 — U.S. agency residential mortgage-backed 156,289 — 156,289 — U.S. agency commercial mortgage-backed 12,632 — 12,632 — Private label mortgage-backed 34,727 — 34,727 — Other asset backed 146,709 — 146,709 — Obligations of states and political subdivisions 170,899 — 170,899 — Corporate 56,180 — 56,180 — Trust preferred 2,579 — 2,579 — Foreign government 1,613 — 1,613 — Loans held for sale 35,946 — 35,946 — Derivatives (1) 2,251 — 2,251 — Liabilities Derivatives (2) 975 — 975 — Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 8,163 — — 8,163 Impaired loans (4) Commercial Income producing - real estate 255 — — 255 Land, land development & construction-real estate 54 — — 54 Commercial and industrial 1,342 — — 1,342 Mortgage 1-4 family 361 — — 361 Other real estate (5) Commercial Income producing - real estate (6) 2,863 — 2,863 — Land, land development & construction-real estate 176 — — 176 Mortgage 1-4 family 98 — — 98 Resort lending 133 — — 133 (1) Included in accrued income and other assets. (2) Included in accrued expenses and other liabilities. (3) Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. (4) Only includes impaired loans with specific loss allocations based on collateral value. (5) Only includes other real estate with subsequent write downs to fair value. (6) Level 2 valuation is based on a signed purchase agreement. Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2015: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 148 $ 148 $ — $ — Securities available for sale U.S. agency 47,512 — 47,512 — U.S. agency residential mortgage-backed 196,056 — 196,056 — U.S. agency commercial mortgage-backed 34,028 — 34,028 — Private label mortgage-backed 4,903 — 4,903 — Other asset backed 116,904 — 116,904 — Obligations of states and political subdivisions 144,984 — 144,984 — Corporate 38,614 — 38,614 — Trust preferred 2,483 — 2,483 — Loans held for sale 27,866 — 27,866 — Derivatives (1) 1,238 — 1,238 — Liabilities Derivatives (2) 619 — 619 — Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 8,481 — — 8,481 Impaired loans (4) Commercial Income producing - real estate 711 — — 711 Land, land development & construction-real estate 40 — — 40 Commercial and industrial 1,257 — — 1,257 Mortgage 1-4 family 421 — — 421 Resort lending 129 — — 129 Other real estate (5) Commercial Land, land development & construction-real estate 639 — — 639 Commercial and industrial 165 — — 165 Mortgage 1-4 family 26 — — 26 Resort lending 107 — — 107 Home equity - 1st lien 14 — — 14 Installment Home equity - 1st lien 36 — — 36 (1) Included in accrued income and other assets. (2) Included in accrued expenses and other liabilities. (3) Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. (4) Only includes impaired loans with specific loss allocations based on collateral value. (5) Only includes other real estate with subsequent write downs to fair value.
Changes in fair value for financial assets	Changes in fair values of financial assets for which we have elected the fair value option for the years ended December 31 were as follows: Net Gains (Losses) on Assets Total Change in Fair Values Included in Current Period Earnings Securities Loans (In thousands) 2016 Trading securities $ 262 $ — $ 262 Loans held for sale — (277 ) (277 ) 2015 Trading securities $ (55 ) $ — $ (55 ) Loans held for sale — 90 90 2014 Trading securities $ (295 ) $ — $ (295 ) Loans held for sale — 258 258
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis	Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Weighted Average (In thousands) 2016 Capitalized mortgage $ 8,163 Present value of net Discount rate 10.07 % servicing revenue Cost to service $ 83 Ancillary income 24 Float rate 1.97 % Impaired loans 1,446 Sales comparison Adjustment for differences approach between comparable sales (1.5 )% Mortgage 361 Sales comparison Adjustment for differences approach between comparable sales (4.7 ) Other real estate 176 Sales comparison Adjustment for differences approach between comparable sales (22.5 ) Mortgage and installment 231 Sales comparison Adjustment for differences approach between comparable sales (5.1 ) 2015 Capitalized mortgage $ 8,481 Present value of net Discount rate 10.04 % servicing revenue Cost to service $ 80 Ancillary income 24 Float rate 1.73 % Impaired loans 1,605 Sales comparison Adjustment for differences approach between comparable sales (2.1 )% Income approach Capitalization rate 9.3 Mortgage 550 Sales comparison Adjustment for differences approach between comparable sales 0.7 Other real estate 804 Sales comparison Adjustment for differences approach between comparable sales (3.9 ) Mortgage and installment 183 Sales comparison Adjustment for differences approach between comparable sales 75.6 (1) In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2016 and 2015, we had an impaired collateral dependent commercial relationship that totaled $0.2 million and $0.4 million, respectively that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory at December 31, 2016 and 2015. Valuation techniques at December 31, 2016 and 2015, included appraisals and discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 0% to 100% of stated values.
Aggregate fair value and aggregate remaining contractual principal balance for loans held for sale	The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected at December 31. Aggregate Fair Value Difference Contractual Principal (In thousands) Loans held for sale 2016 $ 35,946 $ 437 $ 35,509 2015 27,866 714 27,152 2014 23,662 624 23,038

FAIR VALUES OF FINANCIAL INST54

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract]
Estimated fair values and recorded book balances	The estimated recorded book balances and fair values at December 31 follow: Fair Value Using Recorded Book Balance Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) 2016 Assets Cash and due from banks $ 35,238 $ 35,238 $ 35,238 $ — $ — Interest bearing deposits 47,956 47,956 47,956 — — Interest bearing deposits - time 5,591 5,611 — 5,611 — Trading securities 410 410 410 — — Securities available for sale 610,616 610,616 — 610,616 — Federal Home Loan Bank and Federal Reserve Bank Stock 15,543 NA NA NA NA Net loans and loans held for sale (1) 1,655,335 1,629,587 — 67,321 1,562,266 Accrued interest receivable 7,316 7,316 5 2,364 4,947 Derivative financial instruments 2,251 2,251 — 2,251 — Liabilities Deposits with no stated maturity (2) $ 1,740,601 $ 1,740,601 $ 1,740,601 $ — $ — Deposits with stated maturity (2) 485,118 483,469 — 483,469 — Other borrowings 9,433 10,371 — 10,371 — Subordinated debentures 35,569 25,017 — 25,017 — Accrued interest payable 932 932 21 911 — Derivative financial instruments 975 975 — 975 — 2015 Assets Cash and due from banks $ 54,260 $ 54,260 $ 54,260 $ — $ — Interest bearing deposits 31,523 31,523 31,523 — — Interest bearing deposits - time 11,866 11,858 — 11,858 — Trading securities 148 148 148 — — Securities available for sale 585,484 585,484 — 585,484 — Federal Home Loan Bank and Federal Reserve Bank Stock 15,471 NA NA NA NA Net loans and loans held for sale 1,520,346 1,472,613 — 27,866 1,444,747 Accrued interest receivable 6,565 6,565 5 1,969 4,591 Derivative financial instruments 1,238 1,238 — 1,238 — Liabilities Deposits with no stated maturity (2) $ 1,659,743 $ 1,659,743 $ 1,659,743 $ — $ — Deposits with stated maturity (2) 426,220 423,776 — 423,776 — Other borrowings 11,954 13,448 — 13,448 — Subordinated debentures 35,569 23,069 — 23,069 — Accrued interest payable 466 466 21 445 — Derivative financial instruments 619 619 — 619 — (1) Net loans and loans held for sale at December 31, 2016 include $31.4 million of payment plan receivables and commercial loans held for sale. (2) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $7.4 million and $11.8 million at December 31, 2016 and 2015, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $31.3 million and $38.4 million at December 31, 2016 and 2015, respectively.

ACCUMULATED OTHER COMPREHENSI55

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	12 Months Ended
	Dec. 31, 2016
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract]
Schedule of accumulated other comprehensive loss (AOCL), net of tax	A summary of changes in accumulated other comprehensive loss (“AOCL”), net of tax during the years ended December 31 follows: Unrealized Gains (Losses) on Securities Available for Sale Dispropor- tionate Tax Effects from Securities Available for Sale Unrealized Losses on Settled Derivatives Total 2016 Balances at beginning of period $ (238 ) $ (5,798 ) $ — $ (6,036 ) Other comprehensive loss before reclassifications (2,876 ) — — (2,876 ) Amounts reclassified from AOCL (196 ) — — (196 ) Net current period other comprehensive loss (3,072 ) — — (3,072 ) Balances at end of period $ (3,310 ) $ (5,798 ) $ — $ (9,108 ) 2015 Balances at beginning of period $ 162 $ (5,798 ) $ — $ (5,636 ) Other comprehensive loss before reclassifications (351 ) — — (351 ) Amounts reclassified from AOCL (49 ) — — (49 ) Net current period other comprehensive loss (400 ) — — (400 ) Balances at end of period $ (238 ) $ (5,798 ) $ — $ (6,036 ) 2014 Balances at beginning of period $ (3,200 ) $ (5,798 ) $ (247 ) $ (9,245 ) Other comprehensive income before reclassifications 3,570 — — 3,570 Amounts reclassified from AOCL (208 ) — 247 39 Net current period other comprehensive income 3,362 — 247 3,609 Balances at end of period $ 162 $ (5,798 ) $ — $ (5,636 )
Summary of reclassifications out of each component of AOCL	A summary of reclassifications out of each component of AOCL for the years ended December 31 follows: AOCL Component Reclassified From AOCL Affected Line Item in Consolidated Statements of Operations (In thousands) 2016 Unrealized gains (losses) on securities available for sale $ 301 Net gains on securities — Net impairment loss recognized in earnings 301 Total reclassifications before tax 105 Income tax expense $ 196 Reclassifications, net of tax 2015 Unrealized gains (losses) on securities available for sale $ 75 Net gains on securities — Net impairment loss recognized in earnings 75 Total reclassifications before tax 26 Income tax expense $ 49 Reclassifications, net of tax 2014 Unrealized gains (losses) on securities available for sale $ 329 Net gains on securities (9 ) Net impairment loss recognized in earnings 320 Total reclassifications before tax 112 Income tax expense $ 208 Reclassifications, net of tax Unrealized losses on settled derivatives $ (380 ) Interest expense (133 ) Income tax benefit $ (247 ) Reclassification, net of tax $ (39 ) Total reclassifications for the period, net of tax

INDEPENDENT BANK CORPORATION 56

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract]
CONDENSED STATEMENTS OF FINANCIAL CONDITION	CONDENSED STATEMENTS OF FINANCIAL CONDITION December 31, 2016 2015 (In thousands) ASSETS Cash and due from banks $ 9,515 $ 10,800 Interest bearing deposits - time 5,000 5,000 Investment in subsidiaries 259,883 261,016 Accrued income and other assets 10,489 10,120 Total Assets $ 284,887 $ 286,936 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debentures $ 35,569 $ 35,569 Accrued expenses and other liabilities 379 378 Shareholders’ equity 248,939 250,989 Total Liabilities and Shareholders’ Equity $ 284,887 $ 286,936
CONDENSED STATEMENTS OF OPERATIONS	CONDENSED STATEMENTS OF OPERATIONS Year Ended December 31, 2016 2015 2014 (In thousands) OPERATING INCOME Dividends from subsidiary $ 5,000 $ — $ — Interest income 27 72 64 Gain on extinguishment of debt — — 500 Gain on securities — — 295 Other income 153 31 35 Total Operating Income 5,180 103 894 OPERATING EXPENSES Interest expense 1,167 1,021 1,462 Administrative and other expenses 554 560 527 Total Operating Expenses 1,721 1,581 1,989 Income (Loss) Before Income Tax and Equity in Undistributed Net Income of Subsidiaries 3,459 (1,478 ) (1,095 ) Income tax benefit (615 ) (542 ) (383 ) Income (Loss) Before Equity in Undistributed Net Income of Subsidiaries 4,074 (936 ) (712 ) Equity in undistributed net income of subsidiaries 18,692 20,953 18,733 Net Income $ 22,766 $ 20,017 $ 18,021
CONDENSED STATEMENTS OF CASH FLOWS	CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 2015 2014 (In thousands) Net Income $ 22,766 $ 20,017 $ 18,021 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM (USED) IN OPERATING ACTIVITIES Deferred income tax benefit (615 ) (542 ) (383 ) Share based compensation 29 21 46 Gain on extinguishment of debt — — (500 ) Net gains on securities — — (295 ) Decrease in accrued income and other assets 246 5 118 Increase (decrease) in accrued expenses and other liabilities 1 (6 ) 287 Equity in undistributed net income of subsidiaries (18,692 ) (20,953 ) (18,733 ) Total Adjustments (19,031 ) (21,475 ) (19,460 ) Net Cash From (Used) in Operating Activities 3,735 (1,458 ) (1,439 ) CASH FLOW FROM INVESTING ACTIVITIES Purchases of interest bearing deposits - time (7,500 ) (5,000 ) (17,500 ) Maturity of interest bearing deposits - time 7,500 12,500 5,000 Return of capital from subsidiary 18,000 18,500 15,000 Net Cash From Investing Activities 18,000 26,000 2,500 CASH FLOW USED IN FINANCING ACTIVITIES Repurchase of common stock (16,854 ) (13,498 ) — Dividends paid (7,274 ) (5,896 ) (4,129 ) Proceeds from issuance of common stock 1,735 1,569 1,242 Share based compensation withholding obligation (627 ) (1,091 ) — Redemption of subordinated debt — — (4,654 ) Net Cash Used in Financing Activities (23,020 ) (18,916 ) (7,541 ) Net Increase (Decrease) in Cash and Cash Equivalents (1,285 ) 5,626 (6,480 ) Cash and Cash Equivalents at Beginning of Year 10,800 5,174 11,654 Cash and Cash Equivalents at End of Year $ 9,515 $ 10,800 $ 5,174

ACCOUNTING POLICIES (Details)

ACCOUNTING POLICIES (Details) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2016USD ($)EmployeeSegmentPaymentsshares	Dec. 31, 2015USD ($)Segment	Dec. 31, 2014USD ($)Segment	Dec. 31, 2013USD ($)
ACCOUNTING POLICIES [Abstract]
Percentage of loan portfolio secured by real estate	72.20%
Payment Plan Receivables And Other Assets Held For Sale [Line Items]
Payment plan receivables	$ 0	$ 34,599
Commercial loans	$ 804,017	$ 748,398
Operating Segments [Abstract]
Number of reportable segments | Segment	1	2	2
Mortgage Loan Servicing Rights [Abstract]
Mortgage loan servicing fees	$ 4,100	$ 4,100	$ 4,200
Mortgage loans servicing rights, change in retained deficit, net of tax	$ 400
Loan Revenue Recognition [Abstract]
Number of past due days for commercial loan, installment loans and payment plan receivables	90 days
Number of consecutive payments for mortgage loans misses | Payments	4
Bank Owned Life Insurance [Abstract]
Number of lives of group flexible premium non-participating variable life insurance contract | Employee	267
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]
Deferred tax assets	$ 32,818	39,635
Total assets	2,548,950	2,409,066
Common stock	323,745	339,462
Accumulated deficit	(65,657)	(82,334)
Total shareholders' equity	248,980	251,092	$ 250,371	$ 231,581
Total Liabilities and Shareholders' Equity	$ 2,548,950	2,409,066
Minimum [Member]
Other Intangible Assets [Line Items]
Estimated useful lives	10 years
Maximum [Member]
Other Intangible Assets [Line Items]
Estimated useful lives	15 years
Building [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	39 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Dividend Reinvestment Plan [Member]
Stock Reserved [Line Items]
Common stock reserved for issuance (in shares) | shares	0.1
Long-Term Incentive Plans [Member]
Stock Reserved [Line Items]
Common stock reserved for issuance (in shares) | shares	0.4
Mepco [Member]
Payment Plan Receivables And Other Assets Held For Sale [Line Items]
Payment plan receivables	$ 30,600
Commercial loans	800
Payment plan receivables, certain other assets	2,000
Payment plan receivables, liabilities assumed	700
ASU 2016-09 [Member]
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]
Deferred tax assets		40,882
Total assets		2,410,313
Common stock		339,524
Accumulated deficit		(81,149)
Total shareholders' equity		252,339
Total Liabilities and Shareholders' Equity		2,410,313
Unrealized excess benefits on share based compensation	1,230
Forfeiture provision	60
Impact to equity after consideration of deferred taxes	20
Income tax expense (benefit)	$ (300)
ASU 2016-09 [Member] | Originally Presented [Member]
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]
Deferred tax assets		39,635
Total assets		2,409,066
Common stock		339,462
Accumulated deficit		(82,334)
Total shareholders' equity		251,092
Total Liabilities and Shareholders' Equity		2,409,066
ASU 2016-09 [Member] | Cumulative Retrospective Adjustments [Member]
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract]
Deferred tax assets		1,247
Total assets		1,247
Common stock		62
Accumulated deficit		1,185
Total shareholders' equity		1,247
Total Liabilities and Shareholders' Equity		$ 1,247

RESTRICTIONS ON CASH AND DUE 58

RESTRICTIONS ON CASH AND DUE FROM BANKS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract]
Average reserve balances maintained	$ 4	$ 3.2
Reserve balances related to investment security transactions and merchant payment processing operations	$ 2.4	$ 2.5

SECURITIES (Details)

SECURITIES (Details) $ in Thousands		12 Months Ended
		Dec. 31, 2016USD ($)SecurityGrade	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		$ 615,709	$ 585,851
Unrealized gains		2,548	3,152
Unrealized losses		7,641	3,519
Fair value		610,616	585,484
OTTI recognized in accumulated other comprehensive loss		0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		286,522	272,152
Less Than Twelve Months, Unrealized Losses		5,739	1,744
Twelve Months or More, Fair Value		68,405	55,638
Twelve Months or More, Unrealized Losses		1,902	1,775
Total, Fair value		354,927	327,790
Total, Unrealized Losses		7,641	3,519
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
OTTI changes recorded in earnings		0	0	$ 9
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance at beginning of period		1,844	1,844	1,835
Additions to credit losses on securities for which no previous OTTI was recognized		0	0	0
Increases to credit losses on securities for which OTTI was previously recognized		0	0	9
Balance at end of period		1,844	1,844	1,844
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]
Maturing within one year		18,728
Maturing after one year but within five years		102,330
Maturing after five years but within ten years		79,798
Maturing after ten years		64,137
Available-for-sale securities, debt maturities, amortized cost basis		264,993
U.S. agency residential mortgage-backed		156,053
U.S. agency commercial mortgage-backed		12,799
Private label residential mortgage-backed		35,035
Other asset backed		146,829
Total		615,709
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Maturing within one year		18,751
Maturing after one year but within five years		101,846
Maturing after five years but within ten years		78,140
Maturing after ten years		61,522
Total available-for-sale securities fair value		260,259
U.S. agency residential mortgage backed		156,289
U.S. agency commercial mortgage-backed		12,632
Private label residential mortgage-backed		34,727
Other asset backed		146,709
Total		610,616
Gain and losses realized on sale of securities available for sale [Abstract]
Proceeds		64,103	12,037	14,633
Realized gains	[1]	354	75	329
Losses	[2]	53	0	0
Realized gain related to U.S. Treasury short position				300
Credit Related OTTI Recognized in Earnings				10
Trading Securities, Realized Gain (Loss)		260	(60)	(300)
Securities Disclosures [Abstract]
Pledged securities with book value		$ 2,400	1,100
Shareholder equity threshold not exceeded by revenue or taxing authority amount		10.00%
U.S. Agency [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		$ 28,909	47,283
Unrealized gains		159	309
Unrealized losses		80	80
Fair value		28,988	47,512
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		4,179	12,164
Less Than Twelve Months, Unrealized Losses		41	47
Twelve Months or More, Fair Value		8,217	6,746
Twelve Months or More, Unrealized Losses		39	33
Total, Fair value		12,396	18,910
Total, Unrealized Losses		$ 80	80
Number of securities with market fair value less than amortized cost | Security		25
U.S. Agency Residential Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		$ 156,053	195,055
Unrealized gains		1,173	1,584
Unrealized losses		937	583
Fair value		156,289	196,056
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		62,524	57,538
Less Than Twelve Months, Unrealized Losses		732	316
Twelve Months or More, Fair Value		20,857	23,340
Twelve Months or More, Unrealized Losses		205	267
Total, Fair value		83,381	80,878
Total, Unrealized Losses		$ 937	583
Number of securities with market fair value less than amortized cost | Security		118
U.S. Agency Commercial Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		$ 12,799	34,017
Unrealized gains		28	94
Unrealized losses		195	83
Fair value		12,632	34,028
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		6,079	16,747
Less Than Twelve Months, Unrealized Losses		194	60
Twelve Months or More, Fair Value		143	2,247
Twelve Months or More, Unrealized Losses		1	23
Total, Fair value		6,222	18,994
Total, Unrealized Losses		$ 195	83
Number of securities with market fair value less than amortized cost | Security		9
Private Label Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		$ 35,035	5,061
Unrealized gains		216	161
Unrealized losses		524	319
Fair value		34,727	4,903
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		20,545	0
Less Than Twelve Months, Unrealized Losses		281	0
Twelve Months or More, Fair Value		1,413	3,393
Twelve Months or More, Unrealized Losses		243	319
Total, Fair value		21,958	3,393
Total, Unrealized Losses		$ 524	319
Number of securities with market fair value less than amortized cost | Security		34
Number of securities purchased prior to 2016 | Security		4
Number of bonds with impairment in excess of ten percent | Security		2
Percentage of excess impairment on securities		10.00%
Number of securities with impairment for more than 12 months | Security		4
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Fair value		$ 2,396
Amortized cost		2,213
Non-credit unrealized loss		0
Unrealized gain		183
Cumulative credit related OTTI		1,594
OTTI changes recorded in earnings		$ 0	0	9
Number of private label mortgage backed securities complete recovery of cost basis | Security		4
Number of private label mortgage backed securities currently with OTTI unrealized gains | Security		3
Senior Security [Member]
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Fair value		$ 1,226
Amortized cost		1,184
Non-credit unrealized loss		0
Unrealized gain		42
Cumulative credit related OTTI		757
OTTI changes recorded in earnings		0	0	9
Super Senior Security [Member]
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Fair value		1,096
Amortized cost		1,029
Non-credit unrealized loss		0
Unrealized gain		67
Cumulative credit related OTTI		457
OTTI changes recorded in earnings		0	0	0
Senior Support Security [Member]
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
Fair value		74
Amortized cost		0
Non-credit unrealized loss		0
Unrealized gain		74
Cumulative credit related OTTI		380
OTTI changes recorded in earnings		0	0	0
Other Asset Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		146,829	117,431
Unrealized gains		271	54
Unrealized losses		391	581
Fair value		146,709	116,904
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		52,958	102,660
Less Than Twelve Months, Unrealized Losses		172	434
Twelve Months or More, Fair Value		17,763	5,189
Twelve Months or More, Unrealized Losses		219	147
Total, Fair value		70,721	107,849
Total, Unrealized Losses		$ 391	581
Number of securities with market fair value less than amortized cost | Security		111
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		$ 175,180	145,193
Unrealized gains		478	941
Unrealized losses		4,759	1,150
Fair value		170,899	144,984
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		113,078	52,493
Less Than Twelve Months, Unrealized Losses		4,014	597
Twelve Months or More, Fair Value		14,623	12,240
Twelve Months or More, Unrealized Losses		745	553
Total, Fair value		127,701	64,733
Total, Unrealized Losses		$ 4,759	1,150
Number of securities with market fair value less than amortized cost | Security		329
Number of bonds with impairment in excess of ten percent | Security		51
Percentage of excess impairment on securities		10.00%
Corporate [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		$ 56,356	38,895
Unrealized gains		223	9
Unrealized losses		399	290
Fair value		56,180	38,614
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		25,546	30,550
Less Than Twelve Months, Unrealized Losses		292	290
Twelve Months or More, Fair Value		2,810	0
Twelve Months or More, Unrealized Losses		107	0
Total, Fair value		28,356	30,550
Total, Unrealized Losses		$ 399	290
Number of securities with market fair value less than amortized cost | Security		30
Trust Preferred [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		$ 2,922	2,916
Unrealized gains		0	0
Unrealized losses		343	433
Fair value		2,579	2,483
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		0	0
Less Than Twelve Months, Unrealized Losses		0	0
Twelve Months or More, Fair Value		2,579	2,483
Twelve Months or More, Unrealized Losses		343	433
Total, Fair value		2,579	2,483
Total, Unrealized Losses		$ 343	433
Number of securities with market fair value less than amortized cost | Security		3
Number of issues rated as investment grade | Grade		1
Number of securities rated below investment grade | Security		1
Number of major credit rating agencies rating securities with fair value less than amortized cost | Grade		2
Number of securities not rated | Security		1
Non-rated securities, amortized cost		$ 1,000
Fair value of non-rated trust preferred securities		800
Rated Issues [Member]
Trust preferred securities [Abstract]
Fair Value		1,800	1,690
Net Unrealized Loss		(123)	(226)
Unrated Issues [Member]
Trust preferred securities [Abstract]
Fair Value		779	793
Net Unrealized Loss		(220)	(207)
Foreign Government [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost		1,626
Unrealized gains		0
Unrealized losses		13
Fair value		1,613
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value		1,613
Less Than Twelve Months, Unrealized Losses		13
Twelve Months or More, Fair Value		0
Twelve Months or More, Unrealized Losses		0
Total, Fair value		1,613
Total, Unrealized Losses		$ 13
Number of securities with market fair value less than amortized cost | Security		1
Private Label Mortgage Backed Securities Below Investment Grade [Abstract]
OTTI changes recorded in earnings		$ 0	$ 0	$ 10
[1]	Gains in 2014 exclude $0.3 million of realized gain related to a U.S. Treasury short position.
[2]	Losses in 2014 exclude $0.01 million of credit related OTTI recognized in earnings.

LOANS AND PAYMENT PLAN RECEIV60

LOANS AND PAYMENT PLAN RECEIVABLES (Details) - USD ($) $ in Thousands		1 Months Ended	12 Months Ended
		Aug. 31, 2016	Dec. 31, 2015	Dec. 31, 2016
Loans [Abstract]
Total Loans			$ 1,515,050	$ 1,608,248
Net of deferred loan fees			2,200	4,100
Payment plan receivables			36,900
Unamortized discount			$ 2,300
Effective yields of payment plan receivables			13.00%
Single-family Residential Loans [Member]
Loans [Abstract]
Mortgage loans purchased		$ 15,000	$ 32,600
Mortgage loans, servicing fee percentage		0.25%	0.25%
Weighted average interest rate		3.65%	3.94%
Weighted average remaining contractual maturity		332 months	344 months
Real Estate [Member] | Residential First Mortgages [Member]
Loans [Abstract]
Total Loans	[1]		$ 432,215	453,348
Real Estate [Member] | Residential Home Equity and Other Junior Mortgages [Member]
Loans [Abstract]
Total Loans	[1]		106,297	105,550
Real Estate [Member] | Construction and Land Development [Member]
Loans [Abstract]
Total Loans	[1]		62,629	77,287
Real Estate [Member] | Other [Member]
Loans [Abstract]
Total Loans	[1],[2]		498,706	525,748
Commercial [Member]
Loans [Abstract]
Total Loans			180,424	206,607
Consumer [Member]
Loans [Abstract]
Total Loans			193,350	234,632
Payment Plan Receivables [Member]
Loans [Abstract]
Total Loans	[3]		34,599	0
Agricultural [Member]
Loans [Abstract]
Total Loans			$ 6,830	$ 5,076
[1]	Includes both residential and non-residential commercial loans secured by real estate.
[2]	Includes loans secured by multi-family residential and non-farm, non-residential property.
[3]	Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #1.

LOANS AND PAYMENT PLAN RECEIV61

LOANS AND PAYMENT PLAN RECEIVABLES , Allowance for Loan Losses (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Analysis of allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period		$ 22,570	$ 25,990	$ 32,325
Additions (deductions) [Abstract]
Provision for loan losses		(1,309)	(2,714)	(3,136)
Recoveries credited to allowance		4,619	5,022	7,420
Loans charged against the allowance		(5,587)	(5,728)	(10,619)
Reclassification to loans held for sale		(59)
Balance at end of period		20,234	22,570	25,990
Allowance for loan losses [Abstract]
Individually evaluated for impairment		9,152	10,983
Collectively evaluated for impairment		11,082	11,587
Total ending allowance balance		20,234	22,570
Loans [Abstract]
Individually evaluated for impairment		79,831	89,131
Collectively evaluated for impairment		1,533,530	1,430,756
Total loans recorded investment		1,613,361	1,519,887
Accrued interest included in recorded investment		5,113	4,837
Total Loans		1,608,248	1,515,050
Commercial [Member]
Analysis of allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period		5,670	5,445	6,827
Additions (deductions) [Abstract]
Provision for loan losses		(1,945)	(737)	(1,683)
Recoveries credited to allowance		2,472	2,656	4,914
Loans charged against the allowance		(1,317)	(1,694)	(4,613)
Reclassification to loans held for sale		0
Balance at end of period		4,880	5,670	5,445
Allowance for loan losses [Abstract]
Individually evaluated for impairment		2,244	2,708
Collectively evaluated for impairment		2,636	2,962
Total ending allowance balance		4,880	5,670
Loans [Abstract]
Individually evaluated for impairment		15,767	16,868
Collectively evaluated for impairment		790,228	733,399
Total loans recorded investment		805,995	750,267
Accrued interest included in recorded investment		1,978	1,869
Total Loans		804,017	748,398
Mortgage [Member]
Analysis of allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period		10,391	13,444	17,195
Additions (deductions) [Abstract]
Provision for loan losses		(158)	(1,744)	(1,029)
Recoveries credited to allowance		1,047	1,258	1,397
Loans charged against the allowance		(2,599)	(2,567)	(4,119)
Reclassification to loans held for sale		0
Balance at end of period		8,681	10,391	13,444
Allowance for loan losses [Abstract]
Individually evaluated for impairment		6,579	7,818
Collectively evaluated for impairment		2,102	2,573
Total ending allowance balance		8,681	10,391
Loans [Abstract]
Individually evaluated for impairment		59,151	66,375
Collectively evaluated for impairment		481,828	433,931
Total loans recorded investment		540,979	500,306
Accrued interest included in recorded investment	[1]	2,364	2,270
Total Loans		538,615	498,036
Installment [Member]
Analysis of allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period		1,181	1,814	2,246
Additions (deductions) [Abstract]
Provision for loan losses		401	(274)	349
Recoveries credited to allowance		1,100	1,108	1,104
Loans charged against the allowance		(1,671)	(1,467)	(1,885)
Reclassification to loans held for sale		0
Balance at end of period		1,011	1,181	1,814
Allowance for loan losses [Abstract]
Individually evaluated for impairment		329	457
Collectively evaluated for impairment		682	724
Total ending allowance balance		1,011	1,181
Loans [Abstract]
Individually evaluated for impairment		4,913	5,888
Collectively evaluated for impairment		261,474	228,827
Total loans recorded investment		266,387	234,715
Accrued interest included in recorded investment	[1]	771	698
Total Loans		265,616	234,017
Payment Plan Receivables [Member]
Analysis of allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period		56	64	97
Additions (deductions) [Abstract]
Provision for loan losses		(4)	(8)	(36)
Recoveries credited to allowance		0	0	5
Loans charged against the allowance		0	0	(2)
Reclassification to loans held for sale		(52)
Balance at end of period		0	56	64
Allowance for loan losses [Abstract]
Individually evaluated for impairment		0	0
Collectively evaluated for impairment		0	56
Total ending allowance balance		0	56
Loans [Abstract]
Individually evaluated for impairment		0	0
Collectively evaluated for impairment		0	34,599
Total loans recorded investment		0	34,599
Accrued interest included in recorded investment		0	0
Total Loans	[2]	0	34,599
Subjective Allocation [Member]
Analysis of allowance for loan losses by portfolio segment [Roll Forward]
Balance at beginning of period		5,272	5,223	5,960
Additions (deductions) [Abstract]
Provision for loan losses		397	49	(737)
Recoveries credited to allowance		0	0	0
Loans charged against the allowance		0	0	0
Reclassification to loans held for sale		(7)
Balance at end of period		5,662	5,272	$ 5,223
Allowance for loan losses [Abstract]
Individually evaluated for impairment		0	0
Collectively evaluated for impairment		5,662	5,272
Total ending allowance balance		$ 5,662	$ 5,272
[1]	Credit scores have been updated within the last twelve months.
[2]	Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #1.

LOANS AND PAYMENT PLAN RECEIV62

LOANS AND PAYMENT PLAN RECEIVABLES, Receivables Past Due (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Non performing loans [Abstract]
90+ and Still Accruing		$ 0	$ 118
Non-Accrual		13,364	10,607
Total Non-performing Loans		13,364	10,725
Accrued interest included in recorded investment		0	2
Accrued Interest		500	600	$ 800
Interest Income		0	0	$ 0
Aging analysis of loans by class [Abstract]
Total		15,597	15,637
Loans not Past Due		1,597,764	1,504,250
Total loans recorded investment		1,613,361	1,519,887
Accrued interest included in recorded investment		5,113	4,837
Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		4,257	5,881
Accrued interest included in recorded investment		45	53
Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		2,659	1,555
Accrued interest included in recorded investment		19	17
Loans Past Due, 90+ days [Member]
Non performing loans [Abstract]
Accrued interest included in recorded investment		0	2
Aging analysis of loans by class [Abstract]
Total		8,681	8,201
Accrued interest included in recorded investment		0	2
Loans Past Due Total [Member]
Aging analysis of loans by class [Abstract]
Accrued interest included in recorded investment		64	72
Loans Not Past Due [Member]
Aging analysis of loans by class [Abstract]
Accrued interest included in recorded investment		5,049	4,765
Commercial [Member]
Aging analysis of loans by class [Abstract]
Total loans recorded investment		805,995	750,267
Accrued interest included in recorded investment		1,978	1,869
Commercial [Member] | Income Producing - Real Estate [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		628	1,027
Total Non-performing Loans		628	1,027
Aging analysis of loans by class [Abstract]
Total		383	1,059
Loans not Past Due		287,255	305,155
Total loans recorded investment		287,638	306,214
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		0	203
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		0	209
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		383	647
Commercial [Member] | Land, Land Development and Construction Real Estate [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	49
Non-Accrual		105	401
Total Non-performing Loans		105	450
Aging analysis of loans by class [Abstract]
Total		105	252
Loans not Past Due		51,670	44,231
Total loans recorded investment		51,775	44,483
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		74	0
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		0	0
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		31	252
Commercial [Member] | Commercial and Industrial [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	69
Non-Accrual		4,430	2,028
Total Non-performing Loans		4,430	2,097
Aging analysis of loans by class [Abstract]
Total		1,551	952
Loans not Past Due		465,031	398,618
Total loans recorded investment		466,582	399,570
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		100	785
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		1,385	16
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		66	151
Mortgage [Member]
Aging analysis of loans by class [Abstract]
Total loans recorded investment		540,979	500,306
Accrued interest included in recorded investment	[1]	2,364	2,270
Mortgage [Member] | 1-4 Family [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		5,248	4,744
Total Non-performing Loans		5,248	4,744
Aging analysis of loans by class [Abstract]
Total		8,478	7,327
Loans not Past Due		306,063	269,880
Total loans recorded investment		314,541	277,207
Accrued interest included in recorded investment	[1]	1,466	1,396
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		2,361	1,943
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		869	640
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		5,248	4,744
Mortgage [Member] | Resort Lending [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		1,507	1,094
Total Non-performing Loans		1,507	1,094
Aging analysis of loans by class [Abstract]
Total		1,507	1,401
Loans not Past Due		101,541	114,619
Total loans recorded investment		103,048	116,020
Accrued interest included in recorded investment	[1]	450	477
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		0	307
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		0	0
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		1,507	1,094
Mortgage [Member] | Home Equity - 1st Lien [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		222	187
Total Non-performing Loans		222	187
Aging analysis of loans by class [Abstract]
Total		371	237
Loans not Past Due		28,645	22,327
Total loans recorded investment		29,016	22,564
Accrued interest included in recorded investment	[1]	111	87
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		149	50
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		0	0
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		222	187
Mortgage [Member] | Home Equity - 2nd Lien [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		317	147
Total Non-performing Loans		317	147
Aging analysis of loans by class [Abstract]
Total		1,005	640
Loans not Past Due		54,232	50,618
Total loans recorded investment		55,237	51,258
Accrued interest included in recorded investment	[1]	226	196
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		470	439
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		218	54
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		317	147
Mortgage [Member] | Purchased Loans [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		0	2
Total Non-performing Loans		0	2
Aging analysis of loans by class [Abstract]
Total		15	12
Loans not Past Due		39,122	33,245
Total loans recorded investment		39,137	33,257
Accrued interest included in recorded investment	[1]	111	114
Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		13	9
Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		2	1
Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		0	2
Installment [Member]
Aging analysis of loans by class [Abstract]
Total loans recorded investment		266,387	234,715
Accrued interest included in recorded investment	[1]	771	698
Installment [Member] | Home Equity - 1st Lien [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		266	106
Total Non-performing Loans		266	106
Aging analysis of loans by class [Abstract]
Total		625	528
Loans not Past Due		12,025	16,707
Total loans recorded investment		12,650	17,235
Accrued interest included in recorded investment	[1]	54	78
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		311	315
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		48	107
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		266	106
Installment [Member] | Home Equity - 2nd Lien [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		289	443
Total Non-performing Loans		289	443
Aging analysis of loans by class [Abstract]
Total		568	823
Loans not Past Due		13,390	19,727
Total loans recorded investment		13,958	20,550
Accrued interest included in recorded investment	[1]	59	83
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		238	231
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		41	149
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		289	443
Installment [Member] | Loans Not Secured By Real Estate [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		351	421
Total Non-performing Loans		351	421
Aging analysis of loans by class [Abstract]
Total		979	1,071
Loans not Past Due		236,022	193,680
Total loans recorded investment		237,001	194,751
Accrued interest included in recorded investment	[1]	638	520
Installment [Member] | Loans Not Secured By Real Estate [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		533	567
Installment [Member] | Loans Not Secured By Real Estate [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		95	83
Installment [Member] | Loans Not Secured By Real Estate [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		351	421
Installment [Member] | Other [Member]
Non performing loans [Abstract]
90+ and Still Accruing		0	0
Non-Accrual		1	2
Total Non-performing Loans		1	2
Aging analysis of loans by class [Abstract]
Total		10	20
Loans not Past Due		2,768	2,159
Total loans recorded investment		2,778	2,179
Accrued interest included in recorded investment	[1]	20	17
Installment [Member] | Other [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total		8	15
Installment [Member] | Other [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total		1	3
Installment [Member] | Other [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total		1	2
Payment Plan Receivables [Member]
Aging analysis of loans by class [Abstract]
Total loans recorded investment		0	34,599
Accrued interest included in recorded investment		$ 0	0
Payment Plan Receivables [Member] | Full Refund [Member]
Non performing loans [Abstract]
90+ and Still Accruing			0
Non-Accrual			2
Total Non-performing Loans			2
Aging analysis of loans by class [Abstract]
Total			556
Loans not Past Due			21,294
Total loans recorded investment			21,850
Payment Plan Receivables [Member] | Full Refund [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total			492
Payment Plan Receivables [Member] | Full Refund [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total			62
Payment Plan Receivables [Member] | Full Refund [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total			2
Payment Plan Receivables [Member] | Partial Refund [Member]
Non performing loans [Abstract]
90+ and Still Accruing			0
Non-Accrual			2
Total Non-performing Loans			2
Aging analysis of loans by class [Abstract]
Total			645
Loans not Past Due			5,834
Total loans recorded investment			6,479
Payment Plan Receivables [Member] | Partial Refund [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total			415
Payment Plan Receivables [Member] | Partial Refund [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total			228
Payment Plan Receivables [Member] | Partial Refund [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total			2
Payment Plan Receivables [Member] | Other [Member]
Non performing loans [Abstract]
90+ and Still Accruing			0
Non-Accrual			1
Total Non-performing Loans			1
Aging analysis of loans by class [Abstract]
Total			114
Loans not Past Due			6,156
Total loans recorded investment			6,270
Payment Plan Receivables [Member] | Other [Member] | Loans Past Due, 30-59 days [Member]
Aging analysis of loans by class [Abstract]
Total			110
Payment Plan Receivables [Member] | Other [Member] | Loans Past Due, 60-89 days [Member]
Aging analysis of loans by class [Abstract]
Total			3
Payment Plan Receivables [Member] | Other [Member] | Loans Past Due, 90+ days [Member]
Aging analysis of loans by class [Abstract]
Total			$ 1
[1]	Credit scores have been updated within the last twelve months.

LOANS AND PAYMENT PLAN RECEIV63

LOANS AND PAYMENT PLAN RECEIVABLES, Impaired Financing Receivables (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Impaired loan with no allocated allowance [Abstract]
TDR		$ 1,782	$ 2,518
Non - TDR		1,107	203
Impaired loans with an allocated allowance [Abstract]
TDR - allowance based on collateral		3,527	4,810
TDR's allowance based on present value cash flow		72,613	81,002
Non - TDR - allowance based on collateral		491	260
Non - TDR - allowance based on present value cash flow		0	0
Total impaired loans		79,520	88,793
Amount of allowance for loan losses allocated [Abstract]
TDR - allowance based on collateral		1,868	2,436
TDR - allowance based on present value cash flow		7,146	8,471
Non - TDR - allowance based on collateral		138	76
Non - TDR - allowance based on present value cash flow		0	0
Total amount of allowance for loan losses allocated		9,152	10,983
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	2,891	2,727
Unpaid Principal Balance, with no related allowance recorded	[1]	5,191	3,744
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	76,940	86,404
Unpaid Principal Balance, with an allowance recorded	[1]	79,520	90,182
Recorded Investment	[1]	79,831	89,131
Unpaid Principal Balance	[1]	84,711	93,926
Related Allowance	[1]	9,152	10,983
Accrued interest included in recorded investment	[1]	311	338
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	1,913	7,628	$ 12,225
Interest Income Recognized, with No Related Allowance	[2]	84	739	469
Average Recorded Investment, with Related Allowance	[2]	83,258	97,018	107,692
Interest Income Recognized, with Related Allowance	[2]	3,552	3,835	4,565
Average Recorded Investment	[2]	85,171	104,646	119,917
Interest Income Recognized	[2]	3,636	4,574	5,034
Commercial [Member] | Income Producing - Real Estate [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	517	641
Unpaid Principal Balance, with no related allowance recorded	[1]	768	851
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	7,737	8,377
Unpaid Principal Balance, with an allowance recorded	[1]	7,880	9,232
Recorded Investment	[1]	8,254	9,018
Unpaid Principal Balance	[1]	8,648	10,083
Related Allowance	[1]	554	516
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	609	4,520	7,660
Interest Income Recognized, with No Related Allowance	[2]	2	387	250
Average Recorded Investment, with Related Allowance	[2]	8,069	12,677	12,772
Interest Income Recognized, with Related Allowance	[2]	427	439	677
Average Recorded Investment	[2]	8,678	17,197	20,432
Interest Income Recognized	[2]	429	826	927
Commercial [Member] | Land, Land Development and Construction Real Estate [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	31	818
Unpaid Principal Balance, with no related allowance recorded	[1]	709	1,393
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	239	1,690
Unpaid Principal Balance, with an allowance recorded	[1]	244	1,778
Recorded Investment	[1]	270	2,508
Unpaid Principal Balance	[1]	953	3,171
Related Allowance	[1]	36	296
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	330	952	1,145
Interest Income Recognized, with No Related Allowance	[2]	7	79	64
Average Recorded Investment, with Related Allowance	[2]	1,129	2,219	3,939
Interest Income Recognized, with Related Allowance	[2]	31	54	149
Average Recorded Investment	[2]	1,459	3,171	5,084
Interest Income Recognized	[2]	38	133	213
Commercial [Member] | Commercial and Industrial [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	2,341	1,245
Unpaid Principal Balance, with no related allowance recorded	[1]	3,261	1,241
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	4,902	4,097
Unpaid Principal Balance, with an allowance recorded	[1]	5,246	4,439
Recorded Investment	[1]	7,243	5,342
Unpaid Principal Balance	[1]	8,507	5,680
Related Allowance	[1]	1,654	1,896
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	961	2,125	3,351
Interest Income Recognized, with No Related Allowance	[2]	54	257	152
Average Recorded Investment, with Related Allowance	[2]	5,723	6,663	8,500
Interest Income Recognized, with Related Allowance	[2]	189	104	294
Average Recorded Investment	[2]	6,684	8,788	11,851
Interest Income Recognized	[2]	243	361	446
Mortgage [Member] | 1-4 Family [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	2	23
Unpaid Principal Balance, with no related allowance recorded	[1]	387	183
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	41,701	47,792
Unpaid Principal Balance, with an allowance recorded	[1]	43,479	49,808
Recorded Investment	[1]	41,703	47,815
Unpaid Principal Balance	[1]	43,866	49,991
Related Allowance	[1]	4,100	5,132
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	10	19	29
Interest Income Recognized, with No Related Allowance	[2]	16	11	0
Average Recorded Investment, with Related Allowance	[2]	44,923	50,421	55,877
Interest Income Recognized, with Related Allowance	[2]	1,918	2,140	2,286
Average Recorded Investment	[2]	44,933	50,440	55,906
Interest Income Recognized	[2]	1,934	2,151	2,286
Mortgage [Member] | Resort Lending [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	0	0
Unpaid Principal Balance, with no related allowance recorded	[1]	0	0
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	16,898	18,148
Unpaid Principal Balance, with an allowance recorded	[1]	16,931	18,319
Recorded Investment	[1]	16,898	18,148
Unpaid Principal Balance	[1]	16,931	18,319
Related Allowance	[1]	2,453	2,662
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	0	12	40
Interest Income Recognized, with No Related Allowance	[2]	0	0	1
Average Recorded Investment, with Related Allowance	[2]	17,544	18,448	19,458
Interest Income Recognized, with Related Allowance	[2]	619	670	753
Average Recorded Investment	[2]	17,544	18,460	19,498
Interest Income Recognized	[2]	619	670	754
Mortgage [Member] | Home Equity - 1st Lien [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	0	0
Unpaid Principal Balance, with no related allowance recorded	[1]	0	0
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	235	168
Unpaid Principal Balance, with an allowance recorded	[1]	242	172
Recorded Investment	[1]	235	168
Unpaid Principal Balance	[1]	242	172
Related Allowance	[1]	10	9
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	0	0	0
Interest Income Recognized, with No Related Allowance	[2]	0	0	0
Average Recorded Investment, with Related Allowance	[2]	226	161	160
Interest Income Recognized, with Related Allowance	[2]	10	8	6
Average Recorded Investment	[2]	226	161	160
Interest Income Recognized	[2]	10	8	6
Mortgage [Member] | Home Equity - 2nd Lien [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	0	0
Unpaid Principal Balance, with no related allowance recorded	[1]	0	0
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	315	244
Unpaid Principal Balance, with an allowance recorded	[1]	398	325
Recorded Investment	[1]	315	244
Unpaid Principal Balance	[1]	398	325
Related Allowance	[1]	16	15
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	0	0	0
Interest Income Recognized, with No Related Allowance	[2]	0	0	0
Average Recorded Investment, with Related Allowance	[2]	248	172	57
Interest Income Recognized, with Related Allowance	[2]	14	13	2
Average Recorded Investment	[2]	248	172	57
Interest Income Recognized	[2]	14	13	2
Installment [Member] | Home Equity - 1st Lien [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	0	0
Unpaid Principal Balance, with no related allowance recorded	[1]	66	76
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	1,994	2,364
Unpaid Principal Balance, with an allowance recorded	[1]	2,117	2,492
Recorded Investment	[1]	1,994	2,364
Unpaid Principal Balance	[1]	2,183	2,568
Related Allowance	[1]	118	143
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	0	0	0
Interest Income Recognized, with No Related Allowance	[2]	5	5	2
Average Recorded Investment, with Related Allowance	[2]	2,185	2,539	2,837
Interest Income Recognized, with Related Allowance	[2]	147	176	174
Average Recorded Investment	[2]	2,185	2,539	2,837
Interest Income Recognized	[2]	152	181	176
Installment [Member] | Home Equity - 2nd Lien [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	0	0
Unpaid Principal Balance, with no related allowance recorded	[1]	0	0
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	2,415	2,929
Unpaid Principal Balance, with an allowance recorded	[1]	2,443	2,951
Recorded Investment	[1]	2,415	2,929
Unpaid Principal Balance	[1]	2,443	2,951
Related Allowance	[1]	182	271
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	3	0	0
Interest Income Recognized, with No Related Allowance	[2]	0	0	0
Average Recorded Investment, with Related Allowance	[2]	2,661	3,055	3,359
Interest Income Recognized, with Related Allowance	[2]	162	193	188
Average Recorded Investment	[2]	2,664	3,055	3,359
Interest Income Recognized	[2]	162	193	188
Installment [Member] | Loans Not Secured By Real Estate [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	0	0
Unpaid Principal Balance, with no related allowance recorded	[1]	0	0
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	504	587
Unpaid Principal Balance, with an allowance recorded	[1]	540	658
Recorded Investment	[1]	504	587
Unpaid Principal Balance	[1]	540	658
Related Allowance	[1]	29	42
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	0	0	0
Interest Income Recognized, with No Related Allowance	[2]	0	0	0
Average Recorded Investment, with Related Allowance	[2]	546	653	719
Interest Income Recognized, with Related Allowance	[2]	35	37	35
Average Recorded Investment	[2]	546	653	719
Interest Income Recognized	[2]	35	37	35
Installment [Member] | Other [Member]
Impaired Loans by class [Abstract]
Recorded Investment, with no related allowance recorded	[1]	0	0
Unpaid Principal Balance, with no related allowance recorded	[1]	0	0
With no related allowance recorded	[1]	0	0
Recorded Investment, with an allowance recorded	[1]	0	8
Unpaid Principal Balance, with an allowance recorded	[1]	0	8
Recorded Investment	[1]	0	8
Unpaid Principal Balance	[1]	0	8
Related Allowance	[1]	0	1
Average recorded investment in and interest income earned on impaired loans by class [Abstract]
Average Recorded Investment, with No Related Allowance	[2]	0	0	0
Interest Income Recognized, with No Related Allowance	[2]	0	0	0
Average Recorded Investment, with Related Allowance	[2]	4	10	14
Interest Income Recognized, with Related Allowance	[2]	0	1	1
Average Recorded Investment	[2]	4	10	14
Interest Income Recognized	[2]	$ 0	$ 1	$ 1
[1]	There were no impaired payment plan receivables or purchased mortgage loans at December 31, 2016 or 2015.
[2]	There were no impaired payment plan receivables or purchased mortgage loans during the years ending December 31, 2016, 2015 and 2014.

LOANS AND PAYMENT PLAN RECEIV64

LOANS AND PAYMENT PLAN RECEIVABLES, Troubled Debt Restructurings (Details) $ in Thousands		12 Months Ended
		Dec. 31, 2016USD ($)Contract	Dec. 31, 2015USD ($)Contract	Dec. 31, 2014USD ($)Contract
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring		$ 77,922	$ 88,330
Troubled debt restructuring, specific reserve		9,000	10,900
Additional amounts committed to lend as troubled debt restructurings		$ 40	$ 40
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		40	46	70
Pre-modification recorded balance		$ 3,902	$ 5,589	$ 7,123
Post-modification recorded balance		3,942	5,097	6,308
Increase (decrease) in allowance for loan losses		(100)	400	200
Charge offs due to troubled debt restructurings		$ 530	$ 160	$ 40
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		1	5	3
Recorded Balance		$ 1,767	$ 234	$ 444
Past due period for modified loans		90 days
Increase (decrease) in allowance for loan loss due to TDRs that subsequently defaulted		$ (170)	(30)	20
Charge-offs on TDRs that subsequently defaulted		$ 510	0	$ 0
Minimum [Member]
Financing Receivable, Modifications [Line Items]
Modification of stated interest rate of loans, range of period		9 months
Modifications involving extension of maturity date, period range		1 month
Maximum [Member]
Financing Receivable, Modifications [Line Items]
Modification of stated interest rate of loans, range of period		36 months
Modification of stated interest rate of loans, range of period in certain circumstances		480 months
Modifications involving extension of maturity date, period range		60 months
Modifications involving extension of maturity date, period range in certain circumstances		230 months
Performing TDR's [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring		$ 70,286	81,512
Non-performing TDR's [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring	[1]	7,636	6,818
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring		14,125	16,359
Commercial [Member] | Performing TDR's [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring		10,560	13,318
Commercial [Member] | Non-performing TDR's [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring	[1]	$ 3,565	$ 3,041
Commercial [Member] | Income Producing - Real Estate [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		4	2	4
Pre-modification recorded balance		$ 290	$ 229	$ 426
Post-modification recorded balance		$ 290	$ 227	$ 389
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	0	0
Recorded Balance		$ 0	$ 0	$ 0
Commercial [Member] | Land, Land Development and Construction Real Estate [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		0	0	2
Pre-modification recorded balance		$ 0	$ 0	$ 55
Post-modification recorded balance		$ 0	$ 0	$ 44
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	0	0
Recorded Balance		$ 0	$ 0	$ 0
Commercial [Member] | Commercial and Industrial [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		9	17	13
Pre-modification recorded balance		$ 2,044	$ 3,188	$ 2,236
Post-modification recorded balance		$ 2,027	$ 2,960	$ 1,606
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		1	2	2
Recorded Balance		$ 1,767	$ 157	$ 319
Mortgage [Member] | 1-4 Family [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		9	8	15
Pre-modification recorded balance		$ 927	$ 1,345	$ 1,576
Post-modification recorded balance		$ 1,004	$ 1,128	$ 1,570
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	2	1
Recorded Balance		$ 0	$ 73	$ 125
Mortgage [Member] | Resort Lending [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		1	1	6
Pre-modification recorded balance		$ 116	$ 313	$ 1,583
Post-modification recorded balance		$ 117	$ 307	$ 1,572
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	0	0
Recorded Balance		$ 0	$ 0	$ 0
Mortgage [Member] | Home Equity - 1st Lien [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		1	1	1
Pre-modification recorded balance		$ 107	$ 20	$ 17
Post-modification recorded balance		$ 78	$ 20	$ 14
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	0	0
Recorded Balance		$ 0	$ 0	$ 0
Mortgage [Member] | Home Equity - 2nd Lien [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		2	1	1
Pre-modification recorded balance		$ 77	$ 27	$ 85
Post-modification recorded balance		$ 78	$ 27	$ 84
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	0	0
Recorded Balance		$ 0	$ 0	$ 0
Installment [Member] | Home Equity - 1st Lien [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		6	6	13
Pre-modification recorded balance		$ 141	$ 220	$ 631
Post-modification recorded balance		$ 145	$ 186	$ 523
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	0	0
Recorded Balance		$ 0	$ 0	$ 0
Installment [Member] | Home Equity - 2nd Lien [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		6	8	9
Pre-modification recorded balance		$ 154	$ 228	$ 400
Post-modification recorded balance		$ 157	$ 217	$ 400
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	0	0
Recorded Balance		$ 0	$ 0	$ 0
Installment [Member] | Loans Not Secured By Real Estate [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		2	2	6
Pre-modification recorded balance		$ 46	$ 19	$ 114
Post-modification recorded balance		$ 46	$ 25	$ 106
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	1	0
Recorded Balance		$ 0	$ 4	$ 0
Installment [Member] | Other [Member]
Loans classified as troubled debt restructurings [Abstract]
Number of contracts | Contract		0	0	0
Pre-modification recorded balance		$ 0	$ 0	$ 0
Post-modification recorded balance		$ 0	$ 0	$ 0
TDR that subsequently defaulted [Abstract]
Number of contracts | Contract		0	0	0
Recorded Balance		$ 0	$ 0	$ 0
Retail [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring	[2]	63,797	71,971
Retail [Member] | Performing TDR's [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring	[2]	59,726	68,194
Retail [Member] | Non-performing TDR's [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring	[1],[2],[3]	$ 4,071	$ 3,777
[1]	Included in non-performing loans table above.
[2]	Retail loans include mortgage and installment loan segments.
[3]	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

LOANS AND PAYMENT PLAN RECEIV65

LOANS AND PAYMENT PLAN RECEIVABLES, Loan Ratings by Loan Class (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
Loan ratings/credit scores by loan class [Abstract]
Commercial		$ 804,017	$ 748,398
Accrued interest included in total		5,113	$ 4,837
Credit ratings of insurer or risk retention group counterparties [Abstract]
Subsidiary's outstanding payment plan insured by third party			63.20%
Subsidiary's payment outstanding payment plan 2, insured by third party			18.70%
Payment Plan Receivables, Full Refund			$ 21,850
Payment Plan Receivables, Partial Refund			6,479
Payment plan receivables, Other			6,270
Total			34,599
AM Best Rating A+ [Member]
Credit ratings of insurer or risk retention group counterparties [Abstract]
Payment Plan Receivables, Full Refund			0
Payment Plan Receivables, Partial Refund			6
Payment plan receivables, Other			0
Total			6
AM Best Rating, A Ratings [Member]
Credit ratings of insurer or risk retention group counterparties [Abstract]
Payment Plan Receivables, Full Refund			2,712
Payment Plan Receivables, Partial Refund			5,203
Payment plan receivables, Other			0
Total			7,915
AM Best Rating, A- Rating [Member]
Credit ratings of insurer or risk retention group counterparties [Abstract]
Payment Plan Receivables, Full Refund			3,418
Payment Plan Receivables, Partial Refund			1,177
Payment plan receivables, Other			6,265
Total			10,860
Not Rated [Member]
Credit ratings of insurer or risk retention group counterparties [Abstract]
Payment Plan Receivables, Full Refund			15,720
Payment Plan Receivables, Partial Refund			93
Payment plan receivables, Other			5
Total			15,818
Commercial [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		805,995	750,267
Accrued interest included in total		1,978	1,869
Commercial [Member] | Non-Watch 1-6 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		783,854	709,099
Accrued interest included in total		1,915	1,729
Commercial [Member] | Watch 7-8 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		13,642	29,363
Accrued interest included in total		52	108
Commercial [Member] | Substandard Accrual 9 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		3,335	8,349
Accrued interest included in total		11	32
Commercial [Member] | Non Accrual 10-11 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		5,164	3,456
Accrued interest included in total		0	0
Commercial [Member] | Income Producing - Real Estate [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		287,638	306,214
Commercial [Member] | Income Producing - Real Estate [Member] | Non-Watch 1-6 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		282,886	296,898
Commercial [Member] | Income Producing - Real Estate [Member] | Watch 7-8 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		3,787	6,866
Commercial [Member] | Income Producing - Real Estate [Member] | Substandard Accrual 9 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		337	1,423
Commercial [Member] | Income Producing - Real Estate [Member] | Non Accrual 10-11 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		628	1,027
Commercial [Member] | Land, Land Development and Construction Real Estate [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		51,775	44,483
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | Non-Watch 1-6 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		51,603	40,844
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | Watch 7-8 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		67	2,995
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | Substandard Accrual 9 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		0	243
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | Non Accrual 10-11 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		105	401
Commercial [Member] | Commercial and Industrial [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		466,582	399,570
Commercial [Member] | Commercial and Industrial [Member] | Non-Watch 1-6 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		449,365	371,357
Commercial [Member] | Commercial and Industrial [Member] | Watch 7-8 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		9,788	19,502
Commercial [Member] | Commercial and Industrial [Member] | Substandard Accrual 9 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		2,998	6,683
Commercial [Member] | Commercial and Industrial [Member] | Non Accrual 10-11 [Member]
Loan ratings/credit scores by loan class [Abstract]
Commercial		4,431	2,028
Mortgage [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	69,920	57,083
750-799	[1]	195,484	167,515
700-749	[1]	121,245	110,802
650-699	[1]	77,129	80,140
600-649	[1]	35,780	38,108
550-599	[1]	18,931	22,729
500-549	[1]	12,120	13,528
Under 500	[1]	5,771	5,771
Unknown	[1]	4,599	4,630
Total	[1]	540,979	500,306
Accrued interest included in total	[1]	2,364	2,270
Mortgage [Member] | 1-4 Family [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	36,534	28,760
750-799	[1]	102,382	78,802
700-749	[1]	69,337	56,519
650-699	[1]	50,621	51,813
600-649	[1]	25,270	27,966
550-599	[1]	13,747	16,714
500-549	[1]	9,215	10,610
Under 500	[1]	5,145	4,708
Unknown	[1]	2,290	1,315
Total	[1]	314,541	277,207
Accrued interest included in total	[1]	1,466	1,396
Mortgage [Member] | Resort Lending [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	10,484	13,943
750-799	[1]	41,999	40,888
700-749	[1]	24,727	31,980
650-699	[1]	13,798	17,433
600-649	[1]	5,769	4,991
550-599	[1]	3,030	3,070
500-549	[1]	1,438	1,051
Under 500	[1]	92	554
Unknown	[1]	1,711	2,110
Total	[1]	103,048	116,020
Accrued interest included in total	[1]	450	477
Mortgage [Member] | Home Equity - 1st Lien [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	6,048	4,374
750-799	[1]	10,006	7,137
700-749	[1]	5,706	4,341
650-699	[1]	4,106	3,203
600-649	[1]	1,674	1,467
550-599	[1]	455	1,027
500-549	[1]	486	572
Under 500	[1]	255	244
Unknown	[1]	280	199
Total	[1]	29,016	22,564
Accrued interest included in total	[1]	111	87
Mortgage [Member] | Home Equity - 2nd Lien [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	8,392	7,696
750-799	[1]	20,113	17,405
700-749	[1]	12,360	11,022
650-699	[1]	8,167	7,691
600-649	[1]	3,067	3,684
550-599	[1]	1,699	1,918
500-549	[1]	981	1,295
Under 500	[1]	279	265
Unknown	[1]	179	282
Total	[1]	55,237	51,258
Accrued interest included in total	[1]	226	196
Mortgage [Member] | Purchased Loans [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	8,462	2,310
750-799	[1]	20,984	23,283
700-749	[1]	9,115	6,940
650-699	[1]	437	0
600-649	[1]	0	0
550-599	[1]	0	0
500-549	[1]	0	0
Under 500	[1]	0	0
Unknown	[1]	139	724
Total	[1]	39,137	33,257
Accrued interest included in total	[1]	111	114
Installment [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	56,347	47,886
750-799	[1]	114,065	97,379
700-749	[1]	48,883	41,889
650-699	[1]	25,070	24,645
600-649	[1]	8,402	9,505
550-599	[1]	4,289	5,252
500-549	[1]	2,813	3,142
Under 500	[1]	634	1,001
Unknown	[1]	5,884	4,016
Total	[1]	266,387	234,715
Accrued interest included in total	[1]	771	698
Installment [Member] | Home Equity - 1st Lien [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	1,354	1,792
750-799	[1]	2,478	4,117
700-749	[1]	1,920	2,507
650-699	[1]	2,852	3,508
600-649	[1]	1,691	2,173
550-599	[1]	1,231	1,800
500-549	[1]	981	1,056
Under 500	[1]	114	223
Unknown	[1]	29	59
Total	[1]	12,650	17,235
Accrued interest included in total	[1]	54	78
Installment [Member] | Home Equity - 2nd Lien [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	1,626	1,782
750-799	[1]	3,334	5,931
700-749	[1]	2,686	3,899
650-699	[1]	2,541	4,182
600-649	[1]	1,775	2,153
550-599	[1]	1,063	1,346
500-549	[1]	692	855
Under 500	[1]	220	370
Unknown	[1]	21	32
Total	[1]	13,958	20,550
Accrued interest included in total	[1]	59	83
Installment [Member] | Loans Not Secured By Real Estate [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	53,281	44,254
750-799	[1]	107,460	86,800
700-749	[1]	43,456	34,789
650-699	[1]	19,053	16,456
600-649	[1]	4,638	4,979
550-599	[1]	1,942	1,997
500-549	[1]	1,095	1,170
Under 500	[1]	276	385
Unknown	[1]	5,800	3,921
Total	[1]	237,001	194,751
Accrued interest included in total	[1]	638	520
Installment [Member] | Other [Member]
Loan ratings/credit scores by loan class [Abstract]
800 and above	[1]	86	58
750-799	[1]	793	531
700-749	[1]	821	694
650-699	[1]	624	499
600-649	[1]	298	200
550-599	[1]	53	109
500-549	[1]	45	61
Under 500	[1]	24	23
Unknown	[1]	34	4
Total	[1]	2,778	2,179
Accrued interest included in total	[1]	$ 20	$ 17
[1]	Credit scores have been updated within the last twelve months.

LOANS AND PAYMENT PLAN RECEIV66

LOANS AND PAYMENT PLAN RECEIVABLES, Loans Serviced for Others (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)QuarterPSARate	Dec. 31, 2015USD ($)PSARate	Dec. 31, 2014USD ($)
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	$ 1,658,993	$ 1,644,325
Custodial Escrow Balances	$ 18,900	21,800
Maximum number of consecutive quarterly losses recorded for profitability requirement | Quarter	4
Percentage of decline in net worth during the period	30.00%
Maximum percentage of decline in net worth for one consecutive quarter	25.00%
Maximum percentage of decline in net worth for two consecutive quarters	40.00%
Highest level of capital, Amount	$ 2,500
Highest level of capital	0.25%
Analysis of capitalized mortgage loan servicing rights [Abstract]
Balance at beginning of year	$ 12,436	12,106	$ 13,710
Originated servicing rights capitalized	3,119	2,697	1,823
Amortization	(2,850)	(2,868)	(2,509)
Change in valuation allowance	966	501	(918)
Balance at end of year	13,671	12,436	12,106
Valuation allowance	2,306	3,272	3,773
Loans sold and serviced that have had servicing rights capitalized	1,657,996	1,643,086	$ 1,661,269
Fair value of capitalized mortgage loan servicing rights	$ 14,200	$ 12,900
Average coupon rate	4.20%	4.32%
Average servicing fee	0.256%	0.254%
Average discount rate	10.07%	10.04%
Average PSA Rate | PSARate	175	203
Fannie Mae [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	$ 944,703	$ 898,443
Freddie Mac [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	622,885	707,891
Ginnie Mae [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	85,290	37,884
Other [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	$ 6,115	$ 107

OTHER REAL ESTATE (Details)

OTHER REAL ESTATE (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Other Real Estate [Roll Forward]
Balance at beginning of year, net of valuation allowance	[1]	$ 7,070	$ 6,370	$ 18,088
Loans transferred to other real estate	[1]	2,355	6,694	6,143
Sales of other real estate	[1]	(3,596)	(5,502)	(17,198)
Additions to valuation allowance charged to expense	[1]	(873)	(492)	(663)
Balance at end of year, net of valuation allowance	[1]	4,956	7,070	6,370
Real Estate Owned Valuation Allowance [Roll Forward]
Balance at beginning of year		1,692	2,511	4,047
Additions charged to expense		873	492	663
Direct write-downs upon sale		(1,772)	(1,311)	(2,199)
Balance at end of year		793	1,692	$ 2,511
Other repossessed assets		50	800
Foreclosed residential real estate		1,900	2,800
Mortgage loans in process of foreclosure		1,000	1,100
Other real estate and repossessed assets		$ 5,004	$ 7,150
[1]	Table excludes other repossessed assets totaling $0.05 and $0.08 million at December 31, 2016 and 2015, respectively.

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 142,232	$ 152,632
Accumulated depreciation and amortization	(102,057)	(109,529)
Property and equipment, Net	40,175	43,103
Depreciation expense	5,800	6,600	$ 6,700
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	15,486	15,152
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	54,656	57,638
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, Gross	$ 72,090	$ 79,842

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Amortized intangible assets - core deposits [Abstract]
Gross Carrying Amount	$ 6,118	$ 6,118
Accumulated Amortization	4,186	3,838
Intangible amortization expense	300	$ 300	$ 500
Summary of estimated core deposit intangible amortization [Abstract]
2,017	346
2,018	346
2,019	346
2,020	346
2,021	346
2022 and thereafter	202
Total	$ 1,932

DEPOSITS (Details)

DEPOSITS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of interest expense on deposits [Abstract]
Savings and interest bearing checking	$ 1,115,000	$ 1,056,000	$ 1,064,000
Time deposits under $100,000	1,628,000	1,586,000	2,467,000
Time deposits of $100,000 or more	2,198,000	1,367,000	1,436,000
Total	4,941,000	4,009,000	$ 4,967,000
Aggregate amount of time deposits of $250,000 or more	174,600,000	110,400,000
Time Deposits denominations amount	250,000	250,000
Summary of the maturity of time deposits [Abstract]
2,017	363,382,000
2,018	74,019,000
2,019	19,838,000
2,020	11,341,000
2,021	15,685,000
2022 and thereafter	853,000
Total	485,118,000
Summary of reciprocal deposits [Abstract]
Demand	3,055,000	3,436,000
Money market	4,350,000	8,340,000
Time	31,252,000	38,431,000
Total	$ 38,657,000	$ 50,207,000

OTHER BORROWINGS (Details)

OTHER BORROWINGS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of other borrowings [Abstract]
Advances from the FHLB	$ 9,428	$ 11,949
Other	5	5
Total	9,433	11,954
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal home loan bank stock	7,800
Unused borrowing capacity with FHLB	205,300
Interest expense on FHLB advances	800	800	$ 900
FHLB advances terminated	$ 0	0	$ 0
FHLB stock as percentages of outstanding advances	5.00%
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
Total FHLB advances, Amount	$ 9,428	11,949
Summary of repayments of FHLB Advances [Abstract]
Available for sale and loans, pledged to secure other borrowings	$ 904,600
Minimum [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal home loan bank, advances, interest rate	135.00%
FHLB stock as percentages of unpaid principal balance	1.00%
Maximum [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Federal home loan bank, advances, interest rate	174.00%
Fixed-Rate Advances [Member]
Summary of other borrowings [Abstract]
Advances from the FHLB	$ 9,428	11,949
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
2016, Amount		2,089
2017, Amount	1,192	1,258
2018, Amount	5,183	5,437
2019, Amount	0	0
2020, Amount	3,053	3,165
Total FHLB advances, Amount	$ 9,428	$ 11,949
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract]
2016, Rate		6.55%
2017, Rate	7.04%	7.04%
2018, Rate	5.99%	5.99%
2020, Rate	7.49%	7.49%
Total FHLB advances, Rate	6.61%	6.59%
Federal Reserve Bank Advances [Member]
Short-term Debt [Line Items]
Unused borrowing capacity with the FRB	$ 391,200
Borrowings outstanding	0
Advances from Federal Home Loan Bank ("FHLB") [Member]
Summary of repayments of FHLB Advances [Abstract]
2,017	1,587
2,018	5,042
2,019	143
2,020	2,656
Total	$ 9,428

SUBORDINATED DEBENTURES (Detail

SUBORDINATED DEBENTURES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Quarter	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
SUBORDINATED DEBENTURES [Abstract]
Trust preferred securities	$ 34,500	$ 34,500
Summary of information regarding subordinated debentures [Abstract]
Subordinated Debentures	$ 35,569	$ 35,569
Summary of subordinated debentures and trust preferred securities [Abstract]
Distribution deferral period, maximum quarters | Quarter	20
Maximum period within which issuance costs have been capitalized and amortized on straight line basis	30 years
IBC Capital Finance III [Member]
Summary of information regarding subordinated debentures [Abstract]
Issue Date	May 30, 2007	May 30, 2007
Summary of subordinated debentures and trust preferred securities [Abstract]
Maturity Date	Jul. 30, 2037	Jul. 30, 2037
Interest Rate	3 month LIBOR plus 1.60%	3 month LIBOR plus 1.60%
First Permitted Redemption Date	Jul. 30, 2012	Jul. 30, 2012
Interest Rate Spread	1.60%	1.60%
IBC Capital Finance IV [Member]
Summary of information regarding subordinated debentures [Abstract]
Issue Date	Sep. 30, 2007	Sep. 30, 2007
Summary of subordinated debentures and trust preferred securities [Abstract]
Maturity Date	Sep. 15, 2037	Sep. 15, 2037
Interest Rate	3 month LIBOR plus 2.85%	3 month LIBOR plus 2.85%
First Permitted Redemption Date	Sep. 15, 2012	Sep. 15, 2012
Interest Rate Spread	2.85%	2.85%
Redemptions of trust preferred securities at par value			$ 5,000
Trust preferred securities redeemed at discount			$ 500
Midwest Guaranty Trust I [Member]
Summary of information regarding subordinated debentures [Abstract]
Issue Date	Nov. 30, 2002	Nov. 30, 2002
Summary of subordinated debentures and trust preferred securities [Abstract]
Maturity Date	Nov. 7, 2032	Nov. 7, 2032
Interest Rate	3 month LIBOR plus 3.45%	3 month LIBOR plus 3.45%
First Permitted Redemption Date	Nov. 7, 2007	Nov. 7, 2007
Interest Rate Spread	3.45%	3.45%
Subordinated Debentures Subject to Mandatory Redemption [Member]
Summary of information regarding subordinated debentures [Abstract]
Subordinated Debentures	$ 35,569	$ 35,569
Subordinated Debentures Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member]
Summary of information regarding subordinated debentures [Abstract]
Subordinated Debentures	12,372	12,372
Subordinated Debentures Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member]
Summary of information regarding subordinated debentures [Abstract]
Subordinated Debentures	15,465	15,465
Subordinated Debentures Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member]
Summary of information regarding subordinated debentures [Abstract]
Subordinated Debentures	7,732	7,732
Trust Preferred Securities Subject to Mandatory Redemption [Member]
Summary of information regarding subordinated debentures [Abstract]
Trust Preferred Securities Issued	34,500	34,500
Trust Preferred Securities Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member]
Summary of information regarding subordinated debentures [Abstract]
Trust Preferred Securities Issued	12,000	12,000
Trust Preferred Securities Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member]
Summary of information regarding subordinated debentures [Abstract]
Trust Preferred Securities Issued	15,000	15,000
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member]
Summary of information regarding subordinated debentures [Abstract]
Trust Preferred Securities Issued	7,500	7,500
Common Stock Subject to Mandatory Redemption [Member]
Summary of information regarding subordinated debentures [Abstract]
Common Stock Issued	1,069	1,069
Common Stock Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member]
Summary of information regarding subordinated debentures [Abstract]
Common Stock Issued	372	372
Common Stock Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member]
Summary of information regarding subordinated debentures [Abstract]
Common Stock Issued	465	465
Common Stock Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member]
Summary of information regarding subordinated debentures [Abstract]
Common Stock Issued	$ 232	$ 232

COMMITMENTS AND CONTINGENT LI73

COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Litigation settlement expense		$ 2,300	$ 0	$ 0
Loss Contingencies [Line Items]
Cash payment for litigation settlement relating to collection of vehicle service contracts counterparty receivables	$ 4,000
Vehicle service contract counterparty contingencies		(50)	119	199
Loss reimbursement on sold loans		30	(59)	(466)
Reserve for loss reimbursements on sold mortgage loans		600	500
Vehicle service contract counterparty receivable [Roll Forward]
Balance at beginning of year, net of reserve		7,229	7,237	7,716
Transfers in from payment plan receivables		200	1,203	180
Reserves (established) reversed and charge-offs recorded to expense		88	(119)	(199)
Recovery of previously charged-off receivable		1,500	0	0
Reserve established on previously charged-off receivable		(1,500)	0	0
Transferred from contingency reserves		(38)	0	(75)
Transfer to held for sale		(422)	0	0
Cash received		(4,786)	(1,092)	(385)
Balance at end of year, net of reserve		2,271	7,229	7,237
Reserve at end of year		1,437	56	1,370
Pending Litigation [Member]
Loss Contingencies [Line Items]
Estimate of reasonably possible loss		$ 300
Promissory Note [Member]
Loss Contingencies [Line Items]
Term of note		5 years
Full reserve on the remaining balance		$ 1,300
Vehicle Service Contract Counterparty Reserve [Member]
Vehicle service contract counterparty reserve [Roll Forward]
Balance at beginning of year		56	1,370	1,375
Additions (recoveries) recorded to expense		(88)	119	199
Reserve established on previously charged-off receivable		1,500	0	0
Charge-offs, net		(31)	(1,433)	(204)
Balance at end of year		1,437	56	1,370
Accounts Receivables Due to Mepco [Member]
Loss Contingencies [Line Items]
Vehicle service contract counterparty contingencies		$ (100)	100	$ 200
Accounts Receivables Due to Mepco [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Installment payments period for service contract		12 months
Accounts Receivables Due to Mepco [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Installment payments period for service contract		30 months
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments risk represented by contract amounts		$ 364,270	243,458
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Financial instruments risk represented by contract amounts		3,140	$ 3,582
Litigation settlement expense		2,200
Notification costs and other estimated expenses		$ 100
Standby Letters of Credit [Member] | Minimum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Variable interest rate		0.60%
Standby Letters of Credit [Member] | Maximum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Variable interest rate		8.25%

SHAREHOLDERS' EQUITY AND INCO74

SHAREHOLDERS' EQUITY AND INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Apr. 26, 2016	Jan. 21, 2016	Jan. 21, 2015	Nov. 15, 2011
Class of Stock [Line Items]
Stock repurchased (in shares)		1,153,136	967,199
Stock repurchased		$ 16,854	$ 13,498
Shareholders with certain limited exceptions								5.00%
Beneficial ownership level								4.99%
Earnings Per Share Reconciliation [Abstract]
Net income		$ 22,766	$ 20,017	$ 18,021
Weighted average shares outstanding (in shares)	[1]	21,378,000	22,716,000	22,927,000
Effect of stock options (in shares)		151,000	119,000	124,000
Stock units for deferred compensation plan for non-employee directors (in shares)		115,000	112,000	114,000
Performance share units (in shares)		48,000	0	0
Restricted stock units (in shares)		35,000	233,000	306,000
Weighted average shares outstanding for calculation of diluted earnings per share (in shares)		21,727,000	23,180,000	23,471,000
Net income per common share [Abstract]
Basic (in dollars per share)	[1]	$ 1.06	$ 0.88	$ 0.79
Diluted (in dollars per share)		$ 1.05	$ 0.86	$ 0.77
Common Stock [Member]
Class of Stock [Line Items]
Stock repurchase program percentage of shares authorized to be repurchased						5.00%	5.00%
Stock repurchase program, additional authorized amount					$ 5,000
Stock repurchased (in shares)		1,153,136	967,199
Stock repurchased		$ 16,900	$ 13,500
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from computation of diluted loss per share (in shares)		0	30,000	30,000
[1]	Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

INCOME TAX (Details)

INCOME TAX (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income tax expense (benefit) [Abstract]
Current expense (benefit)	$ 362	$ 200	$ (359)
Deferred expense	9,756	9,128	7,672
Valuation allowance - change in estimate	17	35	(118)
Income tax expense	$ 10,135	9,363	7,195
Statutory federal income tax rate	35.00%
Reconciliation of income tax benefit [Abstract]
Statutory rate applied to income before income tax	$ 11,515	10,283	8,826
Tax-exempt income	(534)	(434)	(522)
Bank owned life insurance	(477)	(449)	(480)
Share-based compensation	(348)	0	0
Unrecognized tax benefit	(155)	(135)	(595)
Non-deductible meals, entertainment and memberships	46	43	53
Net change in valuation allowance	17	35	(118)
Other, net	71	20	31
Income tax expense	10,135	9,363	7,195
Deferred tax assets [Abstract]
Loss carryforwards	17,131	25,516
Allowance for loan losses	7,104	7,901
Alternative minimum tax credit carry forward	4,064	3,427
Property and equipment	3,143	3,369
Unrealized loss on securities available for sale	1,782	128
Purchase premiums, net	1,460	1,755
Share based payments	1,011	786
Litigation settlement	805	0
Vehicle service contract counterparty contingency reserve	500	21
Unrealized loss on trading securities	486	578
Other than temporary impairment charge on securities available for sale	400	382
Deferred compensation	375	404
Valuation allowance on other real estate	277	592
Non accrual loan interest income	246	232
Reserve for unfunded lending commitments	228	228
Loss reimbursement on sold loans reserve	196	186
Other	1	0
Gross deferred tax assets	39,209	45,505
Valuation allowance	(1,071)	(1,054)
Gross deferred tax assets net of valuation allowance	38,138	44,451
Deferred tax liabilities [Abstract]
Capitalized mortgage loan servicing rights	4,785	4,353
Deferred loan fees	490	256
Federal Home Loan Bank stock	45	45
Other	0	162
Gross deferred tax liabilities	5,320	4,816
Deferred tax assets, net	32,818	39,635
Operating loss carryforwards [Abstract]
2,031	8,301
2,032	37,739
Total	46,040
Changes in unrecognized tax benefits [Roll Forward]
Balance at beginning of year	976	1,091	1,672
Additions based on tax positions related to the current year	19	20	18
Reductions due to the statute of limitations	(155)	(135)	(595)
Reductions due to settlements	0	0	(4)
Balance at end of year	840	976	1,091
State income tax expense (benefit)	(100)	(100)	0
Unrecognized tax benefits of effective tax rate	300
Penalties and interest expense	0	0	0
Penalties and interest accrued	0	$ 0	$ 0
Minimum tax credit carryforwards with indefinite lives	$ 4,100
Open tax year	2,013

SHARE BASED COMPENSATION AND 76

SHARE BASED COMPENSATION AND BENEFIT PLANS (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares approved for grant (in shares)	200,000
Total compensation cost not yet recognized	$ 2,200
Total compensation cost not yet recognized, period for recognition	2 years 4 months 24 days
Number of Shares [Roll Forward]
Outstanding, beginning balance (in shares)	261,981
Granted (in shares)	147,160
Vested (in shares)	(107,795)
Forfeited (in shares)	(4,924)
Outstanding, ending balance (in shares)	296,422	261,981
Weighted-Average Grant Date Fair Value [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 11.29
Granted (in dollars per share)	15.39
Vested (in dollars per share)	7.92
Forfeited (in dollars per share)	13.24
Outstanding, ending balance (in dollars per share)	$ 14.52	$ 11.29
Information regarding options exercised [Abstract]
Intrinsic value	$ 254	$ 444	$ 321
Cash proceeds received	85	137	96
Tax benefit realized	$ 89	$ 155	$ 112
Maximum matching contribution, percent	6.00%
Employee matching contribution, percentage	50.00%	50.00%	100.00%
Maximum contribution of employees' eligible wages	6.00%	4.00%	2.00%
Employee stock ownership plan (ESOP), contributions	2.00%	2.00%	2.00%
401(k) and employee stock ownership plans amount expensed	$ 1,400	$ 1,200	$ 1,000
Performance-based compensation expense	6,200	5,700	4,200
Health care and life insurance expense	3,500	3,600	3,900
Long-term incentive plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation expense (recovery) recognized	1,500	1,400	1,000
Tax benefit relating to compensation expense recognized	$ 500	$ 500	$ 400
Stock Options [Member]
Number of Shares [Roll Forward]
Outstanding, beginning balance (in shares)	235,596
Granted (in shares)	0
Exercised (in shares)	(21,614)
Forfeited (in shares)	(664)
Expired (in shares)	(2,300)
Outstanding, ending balance (in shares)	211,018	235,596
Vested and expected to vest, period end (in shares)	211,018
Exercisable, period end (in shares)	211,018
Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 4.94
Exercised (in dollars per share)	3.93
Forfeited (in dollars per share)	6.42
Expired (in dollars per share)	3.54
Outstanding, ending balance (in dollars per share)	5.05	$ 4.94
Vested and expected to vest, period end (in dollars per share)	5.05
Exercisable, period end (in dollars per share)	$ 5.05
Weighted-Average Remaining Contractual Term (Years) [Abstract]
Outstanding, Weighted-Average Remaining Contractual Term	5 years 1 month 2 days
Vested and Expected to Vest, Weighted-Average Remaining Contractual Term	5 years 1 month 2 days
Exercisable, Weighted-Average Remaining Contractual Term	5 years 1 month 2 days
Aggregate Intrinsic Value [Abstract]
Outstanding, Aggregate Intrinsic Value	$ 3,514
Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	3,514
Exercisable, Aggregate Intrinsic Value	$ 3,514
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issues as retainer fees (in shares)	10,000	10,000	10,000
Executive Officers [Member] | Restricted Stock [Member] | Long-term incentive plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units issued to executive officers (in shares)	100,000	70,000	70,000
Vesting period		3 years	3 years
Executive Officers [Member] | Restricted Stock [Member] | Long-term incentive plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Executive Officers [Member] | Restricted Stock [Member] | Long-term incentive plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Executive Officers [Member] | Performance stock units [Member] | Long-term incentive plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units issued to executive officers (in shares)	50,000	30,000	30,000
Vesting period		3 years	3 years
Executive Officers [Member] | Performance stock units [Member] | Long-term incentive plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Executive Officers [Member] | Performance stock units [Member] | Long-term incentive plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Senior Officers [Member] | Stock Options [Member] | Long-term incentive plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares approved for grant (in shares)	200,000
Total compensation expense (recovery) recognized	$ 100	$ 100	$ 200
Tax benefit relating to compensation expense recognized	$ 40	$ 30	$ 100

OTHER NON-INTEREST INCOME (Deta

OTHER NON-INTEREST INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
OTHER NON-INTEREST INCOME [Abstract]
Investment and insurance commissions	$ 1,647	$ 1,827	$ 1,814
ATM fees	1,496	1,551	1,599
Bank owned life insurance	1,124	1,282	1,371
Other real estate rental income	58	128	1,295
Other	3,091	2,904	2,852
Total other non-interest income	$ 7,416	$ 7,692	$ 8,931

DERIVATIVE FINANCIAL INSTRUME78

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2013
Derivative financial instrument according to type of hedge[ Abstract]
Termination fee				$ 600
Completed securities trade	$ 13,000
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives		$ 2,251	$ 1,238
Liability Derivatives		975	619
No Hedge Designation [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount		$ 187,092	$ 126,271
Average Maturity		4 years 4 months 24 days	3 years 8 months 12 days
Fair Value		$ 1,276	$ 619
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount		$ 26,658	$ 20,581
Average Maturity		1 month 6 days	1 month 6 days
Fair Value		$ 646	$ 550
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount		$ 61,954	$ 46,320
Average Maturity		1 month 6 days	1 month 6 days
Fair Value		$ 630	$ 69
No Hedge Designation [Member] | Purchased Options [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount		$ 3,119	$ 2,098
Average Maturity		4 years 6 months	5 years 8 months 12 days
Fair Value		$ 238	$ 122
No Hedge Designation [Member] | Written Options [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount		$ 3,119	$ 2,098
Average Maturity		4 years 6 months	5 years 8 months 12 days
Fair Value		$ (238)	$ (122)
Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount		$ 46,121	$ 27,587
Average Maturity		8 years 7 months 6 days	8 years
Fair Value		$ 249	$ (497)
Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member]
Derivative financial instrument according to type of hedge[ Abstract]
Notional Amount		$ 46,121	$ 27,587
Average Maturity		8 years 7 months 6 days	8 years
Fair Value		$ (249)	$ 497
Other Assets [Member] | No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives		646	550
Other Assets [Member] | No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives		630	69
Other Assets [Member] | No Hedge Designation [Member] | Purchased Options [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives		238	122
Other Assets [Member] | No Hedge Designation [Member] | Written Options [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives		0	0
Other Assets [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives		493	0
Other Assets [Member] | Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives		244	497
Other Liabilities [Member] | No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives		0	0
Other Liabilities [Member] | No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives		0	0
Other Liabilities [Member] | No Hedge Designation [Member] | Purchased Options [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives		0	0
Other Liabilities [Member] | No Hedge Designation [Member] | Written Options [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives		238	122
Other Liabilities [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives		244	497
Other Liabilities [Member] | Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives		$ 493	$ 0

DERIVATIVE FINANCIAL INSTRUME79

DERIVATIVE FINANCIAL INSTRUMENTS, Effect on Statement of Operations (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flow Hedge [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion)		$ 0	$ 0	$ 0
Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)		0	0	(380)
Gain (Loss) Recognized in Income	[1]	0	0	0
Cash Flow Hedge [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion)		0	0	0
Cash Flow Hedge [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)		0	0	(380)
Gain (Loss) Recognized in Income	[1]	0	0	0
No Hedge Designation [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	[1]	657	366	54
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Mortgage Loan Gains [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	[1]	96	113	71
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Mortgage Loan Gains [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	[1]	561	253	(312)
No Hedge Designation [Member] | U.S. Treasury short position [Member] | Gain on securities [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	[1]	0	0	295
No Hedge Designation [Member] | Purchased Options [Member] | Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	[1]	116	122	0
No Hedge Designation [Member] | Written Options [Member] | Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	[1]	(116)	(122)	0
No Hedge Designation [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Income [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	[1]	746	(315)	(182)
No Hedge Designation [Member] | Variable Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Income [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	[1]	$ (746)	$ 315	$ 182
[1]	For cash flow hedges, this location and amount refers to the ineffective portion.

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Borrowing relationship exceeds level	$ 60,000
Summary of loans and leases receivable [Roll Forward]
Balance at beginning of year	190,000	$ 216,000
New loans and advances	594,000	0
Repayments	(369,000)	(26,000)
Balance at end of year	415,000	190,000
Directors and executive officers deposit	$ 1,000,000	$ 1,300,000
Minimum [Member]
Related Party Transaction [Line Items]
Related party entity ownership percentage	10.00%

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Summary of future minimum lease payments under non-cancelable operating leases [Abstract]
2,017	$ 1,444
2,018	1,313
2,019	994
2,020	927
2,021	460
2022 and thereafter	499
Total	5,637
Rental expense on operating leases	$ 1,200	$ 1,200	$ 1,300

CONCENTRATIONS OF CREDIT RISK (

CONCENTRATIONS OF CREDIT RISK (Details) $ in Millions	Dec. 31, 2016USD ($)
Residential Real Estate [Member]
Concentration Risk [Line Items]
Concentration of risk loans receivable	$ 558.9
Construction and Development Loans [Member]
Concentration Risk [Line Items]
Concentration of risk loans receivable	77.3
Lessors of Nonresidential Real Estate [Member]
Concentration Risk [Line Items]
Concentration of risk loans receivable	247.1
Lessors of Residential Real Estate [Member]
Concentration Risk [Line Items]
Concentration of risk loans receivable	98.5
Health Care and Social Assistance [Member]
Concentration Risk [Line Items]
Concentration of risk loans receivable	70.1
Construction General Contractors and Land Development [Member]
Concentration Risk [Line Items]
Concentration of risk loans receivable	$ 62.5

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
REGULATORY MATTERS [Abstract]
Undivided profits				$ 9,900
Request for approval to transfer capital from bank to parent entity	$ 18,000	$ 18,500	$ 15,000
Components of regulatory capital [Abstract]
Total shareholders' equity				248,980	$ 251,092	$ 250,371	$ 231,581
Add (deduct) [Abstract]
Accumulated other comprehensive loss for regulatory purposes				(9,108)	(6,036)
Intangible assets				(1,932)	(2,280)
Consolidated [Member]
Total capital to risk-weighted assets [Abstract]
Total risk-based capital				286,289	278,170
Minimum for Adequately Capitalized Institutions, Amount				$ 144,413	$ 133,668
Actual, Ratio				15.86%	16.65%
Minimum for Adequately Capitalized Institutions, Ratio				8.00%	8.00%
Tier 1 capital to risk-weighted assets [Abstract]
Actual, Amount				$ 265,405	$ 257,050
Minimum for Adequately Capitalized Institutions, Amount				$ 108,309	$ 100,251
Actual, Ratio				14.70%	15.38%
Minimum for Adequately Capitalized Institutions, Ratio				6.00%	6.00%
Common equity tier 1 capital to risk-weighted assets [Abstract]
Actual, Amount				$ 238,996	$ 239,271
Minimum for Adequately Capitalized Institutions, Amount				$ 81,232	$ 75,188
Actual, Ratio				13.24%	14.32%
Minimum for Adequately Capitalized Institutions, Ratio				4.50%	4.50%
Tier 1 capital to average assets [Abstract]
Tier 1 capital				$ 265,405	$ 257,050
Minimum for Adequately Capitalized Institutions, Amount				$ 101,112	$ 94,217
Actual, Ratio				10.50%	10.91%
Minimum for Adequately Capitalized Institutions, Ratio				4.00%	4.00%
Components of regulatory capital [Abstract]
Total shareholders' equity				$ 248,980	$ 251,092
Add (deduct) [Abstract]
Accumulated other comprehensive loss for regulatory purposes				3,310	238
Intangible assets				(1,159)	(912)
Disallowed deferred tax assets				(12,135)	(11,147)
Common equity tier 1 capital				238,996	239,271
Qualifying trust preferred securities				34,500	34,500
Disallowed deferred tax assets				(8,091)	(16,721)
Tier 1 capital				265,405	257,050
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets				20,884	21,120
Total risk-based capital				286,289	278,170
Independent Bank [Member]
Total capital to risk-weighted assets [Abstract]
Total risk-based capital				270,855	261,894
Minimum for Adequately Capitalized Institutions, Amount				144,223	133,514
Minimum for Well Capitalized Institutions, Amount				$ 180,279	$ 166,893
Actual, Ratio				15.02%	15.69%
Minimum for Adequately Capitalized Institutions, Ratio				8.00%	8.00%
Minimum for Well-Capitalized Institutions, Ratio				10.00%	10.00%
Tier 1 capital to risk-weighted assets [Abstract]
Actual, Amount				$ 249,971	$ 240,867
Minimum for Adequately Capitalized Institutions, Amount				108,167	100,136
Minimum for Well-Capitalized Institutions, Amount				$ 144,223	$ 133,514
Actual, Ratio				13.87%	14.43%
Minimum for Adequately Capitalized Institutions, Ratio				6.00%	6.00%
Minimum for Well Capitalized Institutions, Ratio				8.00%	8.00%
Common equity tier 1 capital to risk-weighted assets [Abstract]
Actual, Amount				$ 249,971	$ 240,867
Minimum for Adequately Capitalized Institutions, Amount				81,126	75,102
Minimum for Well-Capitalized Institutions, Amount				$ 117,181	$ 108,480
Actual, Ratio				13.87%	14.43%
Minimum for Adequately Capitalized Institutions, Ratio				4.50%	4.50%
Minimum for Well Capitalized Institutions, Ratio				6.50%	6.50%
Tier 1 capital to average assets [Abstract]
Tier 1 capital				$ 249,971	$ 240,867
Minimum for Adequately Capitalized Institutions, Amount				101,019	94,145
Minimum for Well-Capitalized Institutions, Amount				$ 126,274	$ 117,682
Actual, Ratio				9.90%	10.23%
Minimum for Adequately Capitalized Institutions, Ratio				4.00%	4.00%
Minimum for Well-Capitalized Institutions, Ratio				5.00%	5.00%
Components of regulatory capital [Abstract]
Total shareholders' equity				$ 258,814	$ 259,947
Add (deduct) [Abstract]
Accumulated other comprehensive loss for regulatory purposes				3,310	238
Intangible assets				(1,159)	(912)
Disallowed deferred tax assets				(10,994)	(18,406)
Common equity tier 1 capital				249,971	240,867
Qualifying trust preferred securities				0	0
Disallowed deferred tax assets				0	0
Tier 1 capital				249,971	240,867
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets				20,884	21,027
Total risk-based capital				$ 270,855	$ 261,894

FAIR VALUE DISCLOSURES, Signifi

FAIR VALUE DISCLOSURES, Significant Assumptions (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
FAIR VALUE DISCLOSURES [Abstract]
Value of collateral-dependent impaired loans that will be reviewed by independent third party, minimum		$ 250
Value of collateral-dependent impaired loans that will be reviewed by special assets group, maximum		250
Assets [Abstract]
Trading securities		410	$ 148
Securities available for sale		610,616	585,484
Loans held for sale		35,946	27,866	$ 23,662
U.S. Agency [Member]
Assets [Abstract]
Securities available for sale		28,988	47,512
U.S. Agency Residential Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		156,289	196,056
U.S. Agency Commercial Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		12,632	34,028
Private Label Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		34,727	4,903
Other Asset Backed [Member]
Assets [Abstract]
Securities available for sale		146,709	116,904
Obligations of States and Political Subdivisions [Member]
Assets [Abstract]
Securities available for sale		170,899	144,984
Corporate [Member]
Assets [Abstract]
Securities available for sale		56,180	38,614
Trust Preferred [Member]
Assets [Abstract]
Securities available for sale		2,579	2,483
Foreign Government [Member]
Assets [Abstract]
Securities available for sale		1,613
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Trading securities		410	148
Securities available for sale		0	0
Derivatives		0	0
Liabilities [Abstract]
Derivatives		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
Trading securities		410	148
Loans held for sale		0	0
Derivatives	[1]	0	0
Liabilities [Abstract]
Derivatives	[2]	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member]
Assets [Abstract]
Securities available for sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member]
Assets [Abstract]
Securities available for sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Assets [Abstract]
Securities available for sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member]
Assets [Abstract]
Securities available for sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member]
Assets [Abstract]
Securities available for sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Government [Member]
Assets [Abstract]
Securities available for sale		0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member]
ASSETS [Abstract]
Capitalized mortgage loan servicing rights	[3]	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Commercial [Abstract]
Income producing - real estate	[4]	0	0
Land, land development & construction - real estate	[4]	0	0
Commercial and industrial	[4]	0	0
Mortgage [Abstract]
1-4 family	[4]	0	0
Resort lending	[4]		0
Commercial [Abstract]
Income producing - real estate	[4]	0	0
Land, land development & construction - real estate	[4]	0	0
Commercial and industrial	[4]	0	0
Mortgage [Abstract]
1-4 family	[4]	0	0
Resort lending	[4]		0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member]
Commercial [Abstract]
Income producing - real estate	[5],[6]	0
Land, land development & construction - real estate	[6]	0	0
Commercial and industrial	[6]		0
Mortgage [Abstract]
1-4 family	[6]	0	0
Resort lending	[6]	0	0
Commercial [Abstract]
Income producing - real estate	[5],[6]	0
Land, land development & construction - real estate	[6]	0	0
Commercial and industrial	[6]		0
Mortgage [Abstract]
1-4 family	[6]	0	0
Resort lending	[6]	0	0
Home Equity Mortgage 1st Lien Fair Value Disclosure	[6]		0
Installment [Abstract]
Home equity - 1st lien	[6]		0
Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Trading securities		0	0
Securities available for sale		610,616	585,484
Derivatives		2,251	1,238
Liabilities [Abstract]
Derivatives		975	619
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
Trading securities		0	0
Loans held for sale		35,946	27,866
Derivatives	[1]	2,251	1,238
Liabilities [Abstract]
Derivatives	[2]	975	619
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member]
Assets [Abstract]
Securities available for sale		28,988	47,512
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		156,289	196,056
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		12,632	34,028
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		34,727	4,903
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member]
Assets [Abstract]
Securities available for sale		146,709	116,904
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Assets [Abstract]
Securities available for sale		170,899	144,984
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member]
Assets [Abstract]
Securities available for sale		56,180	38,614
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member]
Assets [Abstract]
Securities available for sale		2,579	2,483
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Government [Member]
Assets [Abstract]
Securities available for sale		1,613
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member]
ASSETS [Abstract]
Capitalized mortgage loan servicing rights	[3]	0	0
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Commercial [Abstract]
Income producing - real estate	[4]	0	0
Land, land development & construction - real estate	[4]	0	0
Commercial and industrial	[4]	0	0
Mortgage [Abstract]
1-4 family	[4]	0	0
Resort lending	[4]		0
Commercial [Abstract]
Income producing - real estate	[4]	0	0
Land, land development & construction - real estate	[4]	0	0
Commercial and industrial	[4]	0	0
Mortgage [Abstract]
1-4 family	[4]	0	0
Resort lending	[4]		0
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member]
Commercial [Abstract]
Income producing - real estate	[5],[6]	2,863
Land, land development & construction - real estate	[6]	0	0
Commercial and industrial	[6]		0
Mortgage [Abstract]
1-4 family	[6]	0	0
Resort lending	[6]	0	0
Commercial [Abstract]
Income producing - real estate	[5],[6]	2,863
Land, land development & construction - real estate	[6]	0	0
Commercial and industrial	[6]		0
Mortgage [Abstract]
1-4 family	[6]	0	0
Resort lending	[6]	0	0
Home Equity Mortgage 1st Lien Fair Value Disclosure	[6]		0
Installment [Abstract]
Home equity - 1st lien	[6]		0
Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Trading securities		0	0
Securities available for sale		0	0
Derivatives		0	0
Liabilities [Abstract]
Derivatives		0	0
ASSETS [Abstract]
Capitalized mortgage loan servicing rights		8,163	8,481
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
Trading securities		0	0
Loans held for sale		0	0
Derivatives	[1]	0	0
Liabilities [Abstract]
Derivatives	[2]	0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member]
Assets [Abstract]
Securities available for sale		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member]
Assets [Abstract]
Securities available for sale		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Assets [Abstract]
Securities available for sale		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member]
Assets [Abstract]
Securities available for sale		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member]
Assets [Abstract]
Securities available for sale		0	0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Government [Member]
Assets [Abstract]
Securities available for sale		0
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member]
ASSETS [Abstract]
Capitalized mortgage loan servicing rights	[3]	8,163	8,481
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Commercial [Abstract]
Income producing - real estate	[4]	255	711
Land, land development & construction - real estate	[4]	54	40
Commercial and industrial	[4]	1,342	1,257
Mortgage [Abstract]
1-4 family	[4]	361	421
Resort lending	[4]		129
Commercial [Abstract]
Income producing - real estate	[4]	255	711
Land, land development & construction - real estate	[4]	54	40
Commercial and industrial	[4]	1,342	1,257
Mortgage [Abstract]
1-4 family	[4]	361	421
Resort lending	[4]		129
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member]
Commercial [Abstract]
Income producing - real estate	[5],[6]	0
Land, land development & construction - real estate	[6]	176	639
Commercial and industrial	[6]		165
Mortgage [Abstract]
1-4 family	[6]	98	26
Resort lending	[6]	133	107
Commercial [Abstract]
Income producing - real estate	[5],[6]	0
Land, land development & construction - real estate	[6]	176	639
Commercial and industrial	[6]		165
Mortgage [Abstract]
1-4 family	[6]	98	26
Resort lending	[6]	133	107
Home Equity Mortgage 1st Lien Fair Value Disclosure	[6]		14
Installment [Abstract]
Home equity - 1st lien	[6]		36
Fair Value Measurements [Member]
Assets [Abstract]
Trading securities		410	148
Securities available for sale		610,616	585,484
Derivatives		2,251	1,238
Liabilities [Abstract]
Derivatives		975	619
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
Trading securities		410	148
Loans held for sale		35,946	27,866
Derivatives	[1]	2,251	1,238
Liabilities [Abstract]
Derivatives	[2]	975	619
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member]
Assets [Abstract]
Securities available for sale		28,988	47,512
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		156,289	196,056
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		12,632	34,028
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member]
Assets [Abstract]
Securities available for sale		34,727	4,903
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member]
Assets [Abstract]
Securities available for sale		146,709	116,904
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Assets [Abstract]
Securities available for sale		170,899	144,984
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member]
Assets [Abstract]
Securities available for sale		56,180	38,614
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member]
Assets [Abstract]
Securities available for sale		2,579	2,483
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Government [Member]
Assets [Abstract]
Securities available for sale		1,613
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member]
ASSETS [Abstract]
Capitalized mortgage loan servicing rights	[3]	8,163	8,481
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Commercial [Abstract]
Income producing - real estate	[4]	255	711
Land, land development & construction - real estate	[4]	54	40
Commercial and industrial	[4]	1,342	1,257
Mortgage [Abstract]
1-4 family	[4]	361	421
Resort lending	[4]		129
Commercial [Abstract]
Income producing - real estate	[4]	255	711
Land, land development & construction - real estate	[4]	54	40
Commercial and industrial	[4]	1,342	1,257
Mortgage [Abstract]
1-4 family	[4]	361	421
Resort lending	[4]		129
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member]
Commercial [Abstract]
Income producing - real estate	[5],[6]	2,863
Land, land development & construction - real estate	[6]	176	639
Commercial and industrial	[6]		165
Mortgage [Abstract]
1-4 family	[6]	98	26
Resort lending	[6]	133	107
Commercial [Abstract]
Income producing - real estate	[5],[6]	2,863
Land, land development & construction - real estate	[6]	176	639
Commercial and industrial	[6]		165
Mortgage [Abstract]
1-4 family	[6]	98	26
Resort lending	[6]	$ 133	107
Home Equity Mortgage 1st Lien Fair Value Disclosure	[6]		14
Installment [Abstract]
Home equity - 1st lien	[6]		$ 36
[1]	Included in accrued income and other assets
[2]	Included in accrued expenses and other liabilities
[3]	Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance.
[4]	Only includes impaired loans with specific loss allocations based on collateral value.
[5]	Level 2 valuation is based on a signed purchase agreement.
[6]	Only includes other real estate with subsequent write downs to fair value.

FAIR VALUE DISCLOSURES, Changes

FAIR VALUE DISCLOSURES, Changes in Fair Value for Financial Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Impairment charges recognized [Abstract]
Capitalized mortgage loan servicing rights, carrying amount	$ 8,200	$ 8,500
Capitalized mortgage loan servicing rights, valuation allowance	2,306	3,272	$ 3,773
Capitalized mortgage loan servicing rights recoveries	1,000	500	(900)
Collateral dependent loans, carrying amount	4,000	5,100
Collateral dependent loans, valuation allowance	2,000	2,500
Additional provision for loan losses on impaired loans	200	1,100	2,100
Other real estate, carrying amount	3,200	1,000
Other real estate, valuation allowance	793	1,692	2,511	$ 4,047
Other real estate, additional charge	600	300	300
Impaired Loans Commercial [Member]
Impairment charges recognized [Abstract]
Total impaired collateral value	$ 200	400
Impaired Loans Commercial [Member] | Minimum [Member]
Impairment charges recognized [Abstract]
Discount rate	0.00%
Impaired Loans Commercial [Member] | Maximum [Member]
Impairment charges recognized [Abstract]
Discount rate	100.00%
Trading Securities [Member]
Changes in fair value for financial assets [Abstract]
Net Gains (Losses) on Assets	$ 262	(55)	(295)
Total Change in Fair Values Included in Current Period Earnings	262	(55)	(295)
Loans Held For Sale [Member]
Changes in fair value for financial assets [Abstract]
Net Gains (Losses) on Assets	(277)	90	258
Total Change in Fair Values Included in Current Period Earnings	$ (277)	$ 90	$ 258

FAIR VALUE DISCLOSURES, Quantit

FAIR VALUE DISCLOSURES, Quantitative Information About Level 3 (Details) - USD ($)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Significant Unobservable Inputs (Level 3) [Member]
Asset (Liability) Fair Value [Abstract]
Capitalized mortgage loan servicing rights		$ 8,163,000	$ 8,481,000
Impaired loan [Abstract]
Commercial	[1]	1,446,000	1,605,000
Mortgage		361,000	550,000
Other real-estate [Abstract]
Commercial		176,000	804,000
Mortgage and Installment		$ 231,000	$ 183,000
Income Approach [Member] | Impaired Loans Commercial [Member]
Unobservable Inputs Weighted Average [Abstract]
Capitalization rate			9.30%
Present Value of Net Servicing Revenue [Member]
Unobservable Inputs Weighted Average [Abstract]
Discount rate		10.07%	10.04%
Cost to service		$ 83	$ 80
Ancillary income		$ 24	$ 24
Float rate		1.97%	1.73%
Sales Comparison Approach [Member] | Impaired Loans Commercial [Member]
Unobservable Inputs Weighted Average [Abstract]
Adjustment for differences between comparable sales	[1]	(1.50%)	(2.10%)
Sales Comparison Approach [Member] | Impaired Loans Mortgage [Member]
Unobservable Inputs Weighted Average [Abstract]
Adjustment for differences between comparable sales		(4.70%)	0.70%
Sales Comparison Approach [Member] | Other Real Estate Commercial [Member]
Unobservable Inputs Weighted Average [Abstract]
Adjustment for differences between comparable sales		(22.50%)	(3.90%)
Capitalization rate		(5.10%)
Sales Comparison Approach [Member] | Other Real Estate Mortgage and Installment [Member]
Unobservable Inputs Weighted Average [Abstract]
Adjustment for differences between comparable sales			75.60%
[1]	In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2016 and 2015, we had an impaired collateral dependent commercial relationship that totaled $0.2 million and $0.4 million, respectively that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory at December 31, 2016 and 2015. Valuation techniques at December 31, 2016 and 2015, included appraisals and discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 0% to 100% of stated values.

FAIR VALUE DISCLOSURES, Differe

FAIR VALUE DISCLOSURES, Difference Between Aggregate Fair value and Aggregate Remaining Contractual Principal (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Fair value option - Loans held for sale [Abstract]
Loans held for sale	$ 35,946	$ 27,866	$ 23,662
Difference	437	714	624
Contractual Principal	$ 35,509	$ 27,152	$ 23,038

FAIR VALUES OF FINANCIAL INST88

FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands		Dec. 31, 2016		Dec. 31, 2015
Assets [Abstract]
Interest bearing deposits - time		$ 5,591		$ 11,866
Trading securities		410		148
Securities available for sale		610,616		585,484
Federal Home Loan Bank and Federal Reserve Bank Stock		15,543		15,471
Liabilities [Abstract]
Deposits with stated maturity		485,118
Other borrowings		9,433		11,954
Subordinated debentures		35,569		35,569
Payment plan receivables and commercial loans held for sale		31,400
Reciprocal deposits included in deposits with no stated maturity		7,400		11,800
Reciprocal deposits included in deposits with stated maturity		31,300		38,400
Recorded Book Balance [Member]
Assets [Abstract]
Cash and due from banks		35,238		54,260
Interest bearing deposits		47,956		31,523
Interest bearing deposits - time		5,591		11,866
Trading securities		410		148
Securities available for sale		610,616		585,484
Federal Home Loan Bank and Federal Reserve Bank Stock		15,543		15,471
Net loans and loans held for sale		1,655,335	[1]	1,520,346
Accrued interest receivable		7,316		6,565
Derivative financial instruments		2,251		1,238
Liabilities [Abstract]
Deposits with no stated maturity	[2]	1,740,601		1,659,743
Deposits with stated maturity	[2]	485,118		426,220
Other borrowings		9,433		11,954
Subordinated debentures		35,569		35,569
Accrued interest payable		932		466
Derivative financial instruments		975		619
Fair Value [Member]
Assets [Abstract]
Cash and due from banks		35,238		54,260
Interest bearing deposits		47,956		31,523
Interest bearing deposits - time		5,611		11,858
Trading securities		410		148
Securities available for sale		610,616		585,484
Net loans and loans held for sale		1,629,587	[1]	1,472,613
Accrued interest receivable		7,316		6,565
Derivative financial instruments		2,251		1,238
Liabilities [Abstract]
Deposits with no stated maturity	[2]	1,740,601		1,659,743
Deposits with stated maturity	[2]	483,469		423,776
Other borrowings		10,371		13,448
Subordinated debentures		25,017		23,069
Accrued interest payable		932		466
Derivative financial instruments		975		619
Quoted Prices in Active Markets for Identical Assets, (Level 1) [Member]
Assets [Abstract]
Cash and due from banks		35,238		54,260
Interest bearing deposits		47,956		31,523
Interest bearing deposits - time		0		0
Trading securities		410		148
Securities available for sale		0		0
Net loans and loans held for sale		0	[1]	0
Accrued interest receivable		5		5
Derivative financial instruments		0		0
Liabilities [Abstract]
Deposits with no stated maturity	[2]	1,740,601		1,659,743
Deposits with stated maturity	[2]	0		0
Other borrowings		0		0
Subordinated debentures		0		0
Accrued interest payable		21		21
Derivative financial instruments		0		0
Significant Other Observable Inputs, (Level 2) [Member]
Assets [Abstract]
Cash and due from banks		0		0
Interest bearing deposits		0		0
Interest bearing deposits - time		5,611		11,858
Trading securities		0		0
Securities available for sale		610,616		585,484
Net loans and loans held for sale		67,321	[1]	27,866
Accrued interest receivable		2,364		1,969
Derivative financial instruments		2,251		1,238
Liabilities [Abstract]
Deposits with no stated maturity	[2]	0		0
Deposits with stated maturity	[2]	483,469		423,776
Other borrowings		10,371		13,448
Subordinated debentures		25,017		23,069
Accrued interest payable		911		445
Derivative financial instruments		975		619
Significant Unobservable Inputs, (Level 3) [Member]
Assets [Abstract]
Cash and due from banks		0		0
Interest bearing deposits		0		0
Interest bearing deposits - time		0		0
Trading securities		0		0
Securities available for sale		0		0
Net loans and loans held for sale		1,562,266	[1]	1,444,747
Accrued interest receivable		4,947		4,591
Derivative financial instruments		0		0
Liabilities [Abstract]
Deposits with no stated maturity	[2]	0		0
Deposits with stated maturity	[2]	0		0
Other borrowings		0		0
Subordinated debentures		0		0
Accrued interest payable		0		0
Derivative financial instruments		$ 0		$ 0
[1]	Net loans and loans held for sale at December 31, 2016 include $31.4 million of payment plan receivables and commercial loans held for sale.
[2]	Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $7.4 million and $11.8 million at December 31, 2016 and 2015, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $31.3 million and $38.4 million at December 31, 2016 and 2015, respectively.

ACCUMULATED OTHER COMPREHENSI89

ACCUMULATED OTHER COMPREHENSIVE LOSS, Summary of Changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	$ 251,092	$ 250,371	$ 231,581
Other comprehensive income (loss) before reclassifications	(2,876)	(351)	3,570
Amounts reclassified from AOCL	(196)	(49)	39
Net current period other comprehensive income (loss)	(3,072)	(400)	3,609
Balances at end of the period	248,980	251,092	250,371
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(6,036)	(5,636)	(9,245)
Net current period other comprehensive income (loss)	(3,072)	(400)	3,609
Balances at end of the period	(9,108)	(6,036)	(5,636)
Unrealized Gains (Losses) on Securities Available For Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(238)	162	(3,200)
Other comprehensive income (loss) before reclassifications	(2,876)	(351)	3,570
Amounts reclassified from AOCL	(196)	(49)	(208)
Net current period other comprehensive income (loss)	(3,072)	(400)	3,362
Balances at end of the period	(3,310)	(238)	162
Disproportionate Tax Effects from Securities Available for Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	(5,798)	(5,798)	(5,798)
Other comprehensive income (loss) before reclassifications	0	0	0
Amounts reclassified from AOCL	0	0	0
Net current period other comprehensive income (loss)	0	0	0
Balances at end of the period	(5,798)	(5,798)	(5,798)
Unrealized Losses on Settled Derivatives [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at beginning of period	0	0	(247)
Other comprehensive income (loss) before reclassifications	0	0	0
Amounts reclassified from AOCL	0	0	247
Net current period other comprehensive income (loss)	0	0	247
Balances at end of the period	$ 0	$ 0	$ 0

ACCUMULATED OTHER COMPREHENSI90

ACCUMULATED OTHER COMPREHENSIVE LOSS, Reclassification Out of Each Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net impairment loss recognized in earnings	$ 0	$ 0	$ 9
Total reclassifications before tax	32,901	29,380	25,216
Interest expense	(6,882)	(5,856)	(7,299)
Income tax expense (benefit)	10,135	9,363	7,195
Total reclassifications for the period, net of tax	22,766	20,017	18,021
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax			(39)
Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax	0	0	0
Unrealized Gains (Losses) on Securities Available For Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gains on securities	301	75	329
Net impairment loss recognized in earnings	0	0	(9)
Total reclassifications before tax	301	75	320
Income tax expense (benefit)	105	26	112
Total reclassifications for the period, net of tax	$ 196	$ 49	208
Unrealized Losses on Settled Derivatives [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest expense			(380)
Income tax expense (benefit)			(133)
Total reclassifications for the period, net of tax			$ (247)

INDEPENDENT BANK CORPORATION 91

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ASSETS [Abstract]
Cash and due from banks	$ 35,238	$ 54,260
Interest bearing deposits - time	5,591	11,866
Accrued income and other assets	26,372	23,733
Total Assets	2,548,950	2,409,066
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Subordinated debentures	35,569	35,569
Accrued expenses and other liabilities	28,531	24,488
Shareholders' equity	248,980	251,092	$ 250,371	$ 231,581
Total Liabilities and Shareholders' Equity	2,548,950	2,409,066
OPERATING INCOME [Abstract]
Interest income	86,523	80,842	80,555
Gains on extinguishment of debt	0	0	500
OPERATING EXPENSES [Abstract]
Interest expense	6,882	5,856	7,299
Income (Loss) Before Income Tax and Equity in Undistributed Net Income of Subsidiaries	32,901	29,380	25,216
Income tax benefit	10,135	9,363	7,195
Net Income	22,766	20,017	18,021
CONDENSED STATEMENTS OF CASH FLOWS [Abstract]
Net income	22,766	20,017	18,021
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM (USED) IN OPERATING ACTIVITIES
Deferred income tax benefit	8,064	8,997	8,918
Share based compensation	1,620	1,477	1,192
Gain on extinguishment of debt	0	0	(500)
Decrease in accrued income and other assets	(5,478)	(1,387)	(2,579)
Increase (decrease) in accrued expenses and other liabilities	838	(196)	(7,213)
Total Adjustments	1,217	4,018	(4,950)
Net Cash From Operating Activities	23,983	24,035	13,071
CASH FLOW FROM INVESTING ACTIVITIES [Abstract]
Purchases of interest bearing deposits - time	0	(4,595)	(2,401)
Maturity of interest bearing deposits - time	6,253	6,222	6,719
Net Cash Used in Investing Activities	(138,855)	(160,513)	(82,116)
CASH FLOW USED IN FINANCING ACTIVITIES [Abstract]
Repurchase of common stock	(16,854)	(13,498)	0
Dividends paid	(7,274)	(5,896)	(4,129)
Proceeds from issuance of common stock	82	112	97
Share based compensation withholding obligation	(627)	(1,091)	0
Redemption of subordinated debt	0	0	(4,654)
Net Cash From Financing Activities	112,283	148,245	23,980
Net Increase (Decrease) in Cash and Cash Equivalents	(2,589)	11,767	(45,065)
Cash and Cash Equivalents at Beginning of Year	85,783	74,016	119,081
Cash and Cash Equivalents at End of Year	83,194	85,783	74,016
Parent Company [Member]
ASSETS [Abstract]
Cash and due from banks	9,515	10,800
Interest bearing deposits - time	5,000	5,000
Investment in subsidiaries	259,883	261,016
Accrued income and other assets	10,489	10,120
Total Assets	284,887	286,936
LIABILITIES AND SHAREHOLDERS' EQUITY [Abstract]
Subordinated debentures	35,569	35,569
Accrued expenses and other liabilities	379	378
Shareholders' equity	248,939	250,989
Total Liabilities and Shareholders' Equity	284,887	286,936
OPERATING INCOME [Abstract]
Dividends from subsidiary	5,000	0	0
Interest income	27	72	64
Gains on extinguishment of debt	0	0	500
Gain on securities	0	0	295
Other income	153	31	35
Total Operating Income	5,180	103	894
OPERATING EXPENSES [Abstract]
Interest expense	1,167	1,021	1,462
Administrative and other expenses	554	560	527
Total Operating Expenses	1,721	1,581	1,989
Income (Loss) Before Income Tax and Equity in Undistributed Net Income of Subsidiaries	3,459	(1,478)	(1,095)
Income tax benefit	(615)	(542)	(383)
Income (Loss) Before Equity in Undistributed Net Income of Subsidiaries	4,074	(936)	(712)
Equity in undistributed net income of subsidiaries	18,692	20,953	18,733
Net Income	22,766	20,017	18,021
CONDENSED STATEMENTS OF CASH FLOWS [Abstract]
Net income	22,766	20,017	18,021
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM (USED) IN OPERATING ACTIVITIES
Deferred income tax benefit	(615)	(542)	(383)
Share based compensation	29	21	46
Gain on extinguishment of debt	0	0	(500)
Net gains on securities	0	0	(295)
Decrease in accrued income and other assets	246	5	118
Increase (decrease) in accrued expenses and other liabilities	1	(6)	287
Equity in undistributed net income of subsidiaries	(18,692)	(20,953)	(18,733)
Total Adjustments	(19,031)	(21,475)	(19,460)
Net Cash From Operating Activities	3,735	(1,458)	(1,439)
CASH FLOW FROM INVESTING ACTIVITIES [Abstract]
Purchases of interest bearing deposits - time	(7,500)	(5,000)	(17,500)
Maturity of interest bearing deposits - time	7,500	12,500	5,000
Return of capital from subsidiary	18,000	18,500	15,000
Net Cash Used in Investing Activities	18,000	26,000	2,500
CASH FLOW USED IN FINANCING ACTIVITIES [Abstract]
Repurchase of common stock	(16,854)	(13,498)	0
Dividends paid	(7,274)	(5,896)	(4,129)
Proceeds from issuance of common stock	1,735	1,569	1,242
Share based compensation withholding obligation	(627)	(1,091)	0
Redemption of subordinated debt	0	0	(4,654)
Net Cash From Financing Activities	(23,020)	(18,916)	(7,541)
Net Increase (Decrease) in Cash and Cash Equivalents	(1,285)	5,626	(6,480)
Cash and Cash Equivalents at Beginning of Year	10,800	5,174	11,654
Cash and Cash Equivalents at End of Year	$ 9,515	$ 10,800	$ 5,174

BRANCH SALE (Details)

BRANCH SALE (Details) - USD ($) $ in Thousands	Aug. 28, 2015	Sep. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Branch Location [Line Items]
Net gain on branch sale			$ 0	$ 1,193	$ 0
Midland Branch [Member]
Branch Location [Line Items]
Total deposit liabilities	$ 8,700
Premium payment amount	$ 600
Percentage of average deposit liabilities	6.00%
Average deposit liabilities	$ 9,700
Average days for deposit liabilities	20 days
Number of business days prior to closing date	2 days
Proceeds from Real property and fixed assets	$ 850
Net book value of real property and fixed assets	$ 200
Net gain on branch sale		$ 1,200