Community Bancorp (CMTV) 10-K 20 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 15, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	Community Bancorp /VT
Entity Central Index Key	718,413
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 65,497,364
Entity Common Stock, Shares Outstanding		5,072,976
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 10,943,344	$ 9,479,353
Federal funds sold and overnight deposits	18,670,942	19,372,537
Total cash and cash equivalents	29,614,286	28,851,890
Securities held-to-maturity (fair value $51,035,000 at December 31, 2016 and $44,143,000 at December 31, 2015)	49,886,631	43,354,419
Securities available-for-sale	33,715,051	26,470,400
Restricted equity securities, at cost	2,755,850	2,441,650
Loans held-for-sale	0	1,199,400
Loans	487,249,226	458,119,429
Allowance for loan losses	(5,278,445)	(5,011,878)
Deferred net loan costs	310,130	316,491
Net loans	482,280,911	453,424,042
Bank premises and equipment, net	10,830,556	11,460,207
Accrued interest receivable	1,818,510	1,633,213
Bank owned life insurance (BOLI)	4,625,406	4,520,486
Core deposit intangible	272,691	545,386
Goodwill	11,574,269	11,574,269
Other real estate owned (OREO)	394,000	262,000
Other assets	9,885,504	10,397,347
Total assets	637,653,665	596,134,709
Deposits:
Demand, non-interest bearing	104,472,268	93,525,762
Interest-bearing transaction accounts	118,053,360	130,735,094
Money market funds	79,042,619	81,930,888
Savings	86,776,856	81,731,290
Time deposits, $250,000 and over	19,274,880	9,431,437
Other time deposits	97,115,049	98,131,091
Total deposits	504,735,032	495,485,562
Borrowed funds	31,550,000	10,000,000
Repurchase agreements	30,423,195	22,073,238
Capital lease obligations	483,161	558,365
Junior subordinated debentures	12,887,000	12,887,000
Accrued interest and other liabilities	3,123,760	3,715,888
Total liabilities	583,202,148	544,720,053
Shareholders' Equity
Preferred stock, 1,000,000 shares authorized, 25 shares issued and outstanding ($100,000 liquidation value)	2,500,000	2,500,000
Common stock - $2.50 par value; 15,000,000 shares authorized, 5,269,053 and 5,204,517 shares issued at December 31, 2016 and 2015, respectively (including 15,022 and 15,430 shares issued February 1, 2017 and 2016, respectively)	13,172,633	13,011,293
Additional paid-in capital	30,825,658	30,089,438
Retained earnings	10,666,782	8,482,096
Accumulated other comprehensive loss	(90,779)	(45,394)
Less: treasury stock, at cost; 210,101 shares at December 31, 2016 and 2015	(2,622,777)	(2,622,777)
Total shareholders' equity	54,451,517	51,414,656
Total liabilities and shareholders' equity	$ 637,653,665	$ 596,134,709
Book value per common share outstanding	$ 10.27	$ 9.79

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets
Securities held-to-maturity, fair value	$ 51,035,000	$ 44,143,000
Shareholder's Equity
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	25	25
Preferred stock, shares outstanding (in shares)	25	25
Preferred stock liquidation value	$ 100,000	$ 100,000
Common stock par value (in dollars per share)	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	5,269,053	5,204,517
Treasury stock (in shares)	210,101	210,101

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Interest income
Interest and fees on loans	$ 22,293,558	$ 21,717,394
Interest on debt securities
Taxable	511,339	441,808
Tax-exempt	1,283,021	1,113,250
Dividends	138,362	116,943
Interest on federal funds sold and overnight deposits	21,834	17,294
Total interest income	24,248,114	23,406,689
Interest expense
Interest on deposits	2,025,713	2,078,239
Interest on federal funds purchased and other borrowed funds	136,987	88,483
Interest on repurchase agreements	76,457	69,496
Interest on junior subordinated debentures	460,142	409,432
Total interest expense	2,699,299	2,645,650
Net interest income	21,548,815	20,761,039
Provision for loan losses	500,000	510,000
Net interest income after provision for loan losses	21,048,815	20,251,039
Non-interest income
Service fees	2,741,692	2,565,079
Income from sold loans	891,538	947,325
Other income from loans	839,269	738,454
Net realized gain on sale of securities available-for-sale	0	17,502
Other income	1,029,400	881,795
Total non-interest income	5,501,899	5,150,155
Non-interest expense
Salaries and wages	7,051,820	6,888,352
Employee benefits	2,838,726	2,576,772
Occupancy expenses, net	2,466,628	2,576,496
Other expenses	6,785,350	6,769,353
Total non-interest expense	19,142,524	18,810,973
Income before income taxes	7,408,190	6,590,221
Income tax expense	1,923,912	1,764,630
Net income	$ 5,484,278	$ 4,825,591
Earnings per common share	$ 1.07	$ 0.96
Weighted average number of common shares used in computing earnings per share	5,024,270	4,961,972
Dividends declared per common share	$ 0.64	$ 0.64

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 5,484,278	$ 4,825,591
Other comprehensive loss, net of tax:
Unrealized holding loss on available-for-sale securities arising during the period	(68,765)	(40,000)
Reclassification adjustment for gain realized in income	0	(17,502)
Unrealized loss during the year	(68,765)	(57,502)
Tax effect	23,380	19,551
Other comprehensive loss, net of tax	(45,385)	(37,951)
Total comprehensive income	$ 5,438,893	$ 4,787,640

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Common Stock	Preferred Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock	Total
Beginning Balance, Shares at Dec. 31, 2014	5,142,475	25
Beginning Balance, Amount at Dec. 31, 2014	$ 12,856,188	$ 2,500,000	$ 29,359,300	$ 6,909,934	$ (7,443)	$ (2,622,777)	$ 48,995,202
Comprehensive income
Net income	0	0	0	4,825,591	0	0	4,825,591
Other comprehensive loss	0	0	0	0	(37,951)	0	(37,951)
Total comprehensive income							4,787,640
Cash dividends declared - common stock	0	0	0	(3,172,179)	0	0	(3,172,179)
Cash dividends declared - preferred stock	$ 0	$ 0	0	(81,250)	0	0	(81,250)
Issuance of common stock, shares	62,042	0
Issuance of common stock, amount	$ 155,105	$ 0	730,138	0	0	0	885,243
Ending Balance, Shares at Dec. 31, 2015	5,204,517	25
Ending Balance, Amount at Dec. 31, 2015	$ 13,011,293	$ 2,500,000	30,089,438	8,482,096	(45,394)	(2,622,777)	51,414,656
Comprehensive income
Net income	0	0	0	5,484,278	0	0	5,484,278
Other comprehensive loss	0	0	0	0	(45,385)	0	(45,385)
Total comprehensive income							5,438,893
Cash dividends declared - common stock	0	0	0	(3,212,092)	0	0	(3,212,092)
Cash dividends declared - preferred stock	$ 0	$ 0	0	(87,500)	0	0	(87,500)
Issuance of common stock, shares	64,536	0
Issuance of common stock, amount	$ 161,340	$ 0	736,220	0	0	0	897,560
Ending Balance, Shares at Dec. 31, 2016	5,269,053	25
Ending Balance, Amount at Dec. 31, 2016	$ 13,172,633	$ 2,500,000	$ 30,825,658	$ 10,666,782	$ (90,779)	$ (2,622,777)	$ 54,451,517

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities:
Net income	$ 5,484,278	$ 4,825,591
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, bank premises and equipment	1,041,985	969,661
Provision for loan losses	500,000	510,000
Deferred income tax	(172,562)	(172,374)
Gain on sale of securities available-for-sale	0	(17,502)
Gain on sale of loans	(429,480)	(424,240)
Loss on sale of bank premises and equipment	39,644	130,603
Loss on sale of OREO	4,965	20,058
Income from Trust LLC	(429,008)	(361,044)
Amortization of bond premium, net	117,821	148,526
Write down of OREO	41,000	75,820
Proceeds from sales of loans held for sale	21,691,034	24,397,411
Originations of loans held for sale	(20,062,154)	(25,146,321)
(Decrease) increase in taxes payable	(187,908)	54,669
(Increase) decrease in interest receivable	(185,297)	65,235
Decrease in mortgage servicing rights	82,384	18,886
Decrease (increase) in other assets	332,930	(309,552)
Increase in cash surrender value of BOLI	(104,920)	(106,912)
Amortization of core deposit intangible	272,695	272,695
Amortization of limited partnerships	909,386	565,335
Decrease (increase) in unamortized loan costs	6,361	(13,097)
Increase (decrease) in interest payable	19,930	(11,038)
Increase in accrued expenses	142,323	23,407
Increase in other liabilities	193,055	76,798
Net cash provided by operating activities	9,308,462	5,592,615
Investments - held-to-maturity
Maturities and pay downs	44,317,216	40,831,786
Purchases	(50,849,428)	(42,375,260)
Investments - available-for-sale - Maturities, calls, pay downs and sales	6,166,383	15,522,796
Purchases	(13,597,620)	(9,234,828)
Proceeds from redemption of restricted equity securities	1,866,400	890,800
Purchases of restricted equity securities	(2,180,600)	0
(Decrease) increase in limited partnership contributions payable	(948,000)	975,000
Investments in limited partnerships	0	(975,500)
Increase in loans, net	(29,833,467)	(10,903,013)
Capital expenditures net of proceeds from sales of bank premises and equipment	(451,978)	(1,071,523)
Proceeds from sales of OREO	217,143	966,615
Recoveries of loans charged off	75,129	98,370
Net cash used in investing activities	(45,218,822)	(5,274,757)
Cash Flows from Financing Activities:
Net (decrease) increase in demand and interest-bearing transaction accounts	(1,735,228)	10,113,515
Net increase (decrease) in money market and savings accounts	2,157,297	(2,187,668)
Net increase (decrease) in time deposits	8,827,401	(5,459,748)
Net increase (decrease) in repurchase agreements	8,349,957	(6,469,723)
Net increase in short-term borrowings	20,000,000	10,000,000
Proceeds from long-term borrowings	1,550,000	0
Decrease in capital lease obligations	(75,204)	(81,179)
Dividends paid on preferred stock	(87,500)	(81,250)
Dividends paid on common stock	(2,313,967)	(2,262,089)
Net cash provided by financing activities	36,672,756	3,571,858
Net increase in cash and cash equivalents	762,396	3,889,716
Cash and cash equivalents:
Beginning	28,851,890	24,962,174
Ending	29,614,286	28,851,890
Supplemental Schedule of Cash Paid (Received) During the Period:
Interest	2,679,369	2,656,688
Income taxes, net of refunds	1,375,000	1,317,000
Supplemental Schedule of Noncash Investing and Financing Activities:
Change in unrealized loss on securities available-for-sale	(68,765)	(57,502)
Loans transferred to OREO	395,108	86,173
Investment in limited partnership, not yet paid	0	975,000
Common Shares Dividends Paid:
Dividends declared	3,212,092	3,172,179
Increase in dividends payable attributable to dividends declared	(565)	(24,847)
Dividends reinvested	(897,560)	(885,243)
Total	$ 2,313,967	$ 2,262,089

1. Significant Accounting Polic

1. Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Note 1. Significant Accounting Policies	The accounting policies of Community Bancorp. and Subsidiary (Company) are in conformity, in all material respects, with accounting principles generally accepted in the United States of America (US GAAP) and general practices within the banking industry. The following is a description of the Company’s significant accounting policies. Basis of presentation and consolidation The consolidated financial statements include the accounts of Community Bancorp. and its wholly-owned subsidiary, Community National Bank (Bank). All significant intercompany accounts and transactions have been eliminated. The Company is considered a “smaller reporting company” under applicable disclosure rules of the Securities and Exchange Commission and accordingly, has elected to provide its audited statements of income, comprehensive income, cash flows and changes in shareholders’ equity for a two year, rather than a three year, period. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810, “Consolidation”, in part, addresses limited purpose trusts formed to issue trust preferred securities. It also establishes the criteria used to identify variable interest entities (VIE) and to determine whether or not to consolidate a VIE. In general, ASC Topic 810 provides that the enterprise with the controlling financial interest, known as the primary beneficiary, consolidates the VIE. In 2007, the Company formed CMTV Statutory Trust I for the purposes of issuing trust preferred securities to unaffiliated parties and investing the proceeds from the issuance thereof and the common securities of the trust in junior subordinated debentures issued by the Company. The Company is not the primary beneficiary of CMTV Statutory Trust I; accordingly, the trust is not consolidated with the Company for financial reporting purposes. CMTV Statutory Trust I is considered an affiliate of the Company (see Note 10). In December 2011, the Company formed a limited liability company (LLC) to facilitate its purchase of federal New Markets Tax Credits (NMTC) under an investment structure designed by a local community development entity. Management has evaluated the Company’s interest in the LLC under the ASC guidance relating to VIEs in light of the overall structure and purpose of the NMTC financing transaction and has concluded that the LLC should not be consolidated in the Company’s financial statements for financial reporting purposes, as the Company is not the primary beneficiary of the NMTC structure, does not exercise control within the overall structure and is not obligated to absorb a majority of any losses of the NMTC structure (see Note 7). Nature of operations The Company provides a variety of deposit and lending services to individuals, municipalities, and business customers through its branches, ATMs and telephone and internet banking capabilities in northern and central Vermont, which is primarily a small business and agricultural area. The Company's primary deposit products are checking and savings accounts and certificates of deposit. Its primary lending products are commercial, real estate, municipal and consumer loans. Concentration of risk The Company's operations are affected by various risk factors, including interest rate risk, credit risk, and risk from geographic concentration of its deposit taking and lending activities. Management attempts to manage interest rate risk through various asset/liability management techniques designed to match maturities and repricing of assets and liabilities. Loan policies and administration are designed to provide assurance that loans will only be granted to creditworthy borrowers, although credit losses are expected to occur because of subjective factors and factors beyond the control of the Company. While the Company has a diversified loan portfolio by loan type, most of its lending activities are conducted within the geographic area where its banking offices are located. As a result, the Company and its borrowers may be especially vulnerable to the consequences of changes in the local economy in northern and central Vermont. In addition, a substantial portion of the Company's loans are secured by real estate, which is susceptible to a decline in value, especially during times of adverse economic conditions. Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions involve inherent uncertainties. Accordingly, actual results could differ from those estimates and those differences could be material. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses (ALL) and the valuation of OREO. In connection with evaluating loans for impairment or assigning the carrying value of OREO, management generally obtains independent evaluations or appraisals for significant properties. While the ALL and the carrying value of OREO are determined using management's best estimate of probable loan and OREO losses, respectively, as of the balance sheet date, the ultimate collectibility of a substantial portion of the Company's loan portfolio and the recovery of a substantial portion of the fair value of OREO are susceptible to uncertainties and changes in a number of factors, especially local real estate market conditions. The amount of the change that is reasonably possible cannot be estimated. While management uses available information to recognize losses on loans and OREO, future additions to the allowance or write-downs of OREO may be necessary based on changes in local economic conditions or other relevant factors. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for losses on loans and the carrying value of OREO. Such agencies may require the Company to recognize additions to the allowance or write-downs of OREO based on their judgment about information available to them at the time of their examination. Mortgage servicing rights (MRSs) associated with loans originated and sold in the secondary market, where servicing is retained, are capitalized and included in other assets in the consolidated balance sheets. MSRs are amortized against non-interest income in proportion to, and over the period of, estimated future net servicing income of the underlying loans. The value of capitalized servicing rights represents the present estimated value of the future servicing fees arising from the right to service loans for third parties. The carrying value of the MSRs is periodically reviewed for impairment based on a determination of estimated fair value as compared to amortized cost, and impairment, if any, is recognized through a valuation allowance and is recorded as a write down. Critical accounting policies for MSRs relate to the initial valuation and subsequent impairment tests. The methodology used to determine the valuation of MSRs requires the development and use of estimates, including anticipated principal amortization and prepayments. Events that may significantly affect the estimates used are changes in interest rates and the payment performance of the underlying loans. Management uses a third party consultant to assist in analyzing the fair value of the Company’s MSRs. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to various factors, including the length of time and the extent to which the fair value has been less than cost; the nature of the issuer and its financial condition and near-term prospects; and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The evaluation of these factors is a subjective process and involves estimates and assumptions about matters that are inherently uncertain. Should actual factors and conditions differ materially from those used by management, the actual realization of gains or losses on investment securities could differ materially from the amounts recorded in the financial statements. Accounting for a business combination that was completed prior to 2009 requires the application of the purchase method of accounting. Under the purchase method, the Company was required to record the assets and liabilities acquired through the LyndonBank merger in 2007 at fair market value, with the excess of the purchase price over the fair value of the net assets recorded as goodwill and evaluated annually for impairment. Management uses various assumptions in evaluating goodwill for impairment. Management utilizes numerous techniques to estimate the carrying value of various other assets held by the Company, including, but not limited to, bank premises and equipment and deferred taxes. The assumptions considered in making these estimates are based on historical experience and on various other factors that are believed by management to be reasonable under the circumstances. Management acknowledges that the use of different estimates or assumptions could produce different estimates of carrying values. Presentation of cash flows For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), federal funds sold (generally purchased and sold for one day periods) and overnight deposits. Investment securities Securities the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity (HTM) and reported at amortized cost. Debt and equity securities not classified as HTM are classified as available-for-sale (AFS). Investments classified as AFS are carried at fair value, with unrealized gains and losses, net of tax and reclassification adjustments, reflected as a net amount in the shareholders’ equity section of the consolidated balance sheets and in the statements of changes in shareholders’ equity. Investment securities transactions are accounted for on a trade date basis. The specific identification method is used to determine realized gains and losses on sales of securities AFS. Premiums and discounts are recognized in interest income using the interest method over the period to maturity or call date. The Company does not hold any securities purchased for the purpose of selling in the near term and classified as trading. Declines in the fair value of individual equity securities that are deemed to be other than temporary are reflected in earnings when identified. For individual debt securities that the Company does not intend to sell and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in the fair value of the debt security related to (1) credit loss is recognized in earnings and (2) other factors is recognized in other comprehensive income or loss. Credit loss is deemed to exist if the present value of expected future cash flows using the interest rates at acquisition is less than the amortized cost basis of the debt security. For individual debt securities where the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost, the other-than-temporary impairment is recognized in earnings equal to the entire difference between the security’s cost basis and its fair value at the balance sheet date. Other investments In December 2011, the Company made an equity investment in a NMTC financing structure (see Note 7). The Company’s investment in the NMTC is amortized using the effective yield method. From time to time, the Company acquires partnership interests in limited partnerships for low income housing projects. New investments in limited partnerships are amortized using the proportional amortization method. All investments made before January 1, 2015 are amortized using the effective yield method. The Company has a one-third ownership interest in Community Financial Services Group, LLC (CFSG), a non-depository trust company (see Note 7). The Company's investment in CFSG is accounted for under the equity method of accounting. Restricted equity securities Restricted equity securities comprise Federal Reserve Bank stock and Federal Home Loan Bank stock. These securities are carried at cost. As a member of the Federal Reserve Bank of Boston (FRBB), the Company is required to invest in FRBB stock in an amount equal to 6% of the Bank's capital stock and surplus. As a member of the Federal Home Loan Bank of Boston (FHLBB), the Company is required to invest in $100 par value stock of the FHLBB in an amount that approximates 1% of unpaid principal balances on qualifying loans, plus an additional amount to satisfy an activity based requirement. The stock is nonmarketable and redeemable at par value, subject to the FHLBB’s right to temporarily suspend such redemptions. Members are subject to capital calls in some circumstances to ensure compliance with the FHLBB’s capital plan. Loans held-for-sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance, adjusted for any charge-offs, the ALL, loan premiums or discounts for acquired loans and any unearned fees or costs on originated loans. Loan interest income is accrued daily on the outstanding balances. For all loan segments, the accrual of interest is discontinued when a loan is specifically determined to be impaired or when the loan is delinquent 90 days and management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest income is generally not recognized on specific impaired loans unless the likelihood of further loss is considered by management to be remote. Interest payments received on impaired loans are generally applied as a reduction of the loan principal balance. Loans are returned to accrual status when principal and interest payments are brought current and the customer has demonstrated the intent and ability to make future payments on a timely basis. Loans are written down or charged off when collection of principal is considered doubtful. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount is amortized as an adjustment of the related loan's yield. The Company generally amortizes these amounts over the contractual life of the loans. Loan premiums and discounts on loans acquired in the merger with LyndonBank are amortized as an adjustment to yield over the life of the loans. Allowance for loan losses The ALL is established through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. Unsecured loans, primarily consumer loans, are charged off when they become uncollectible and no later than 120 days past due. Unsecured loans to customers who subsequently file bankruptcy are charged off within 30 days of receipt of the notification of filing or by the end of the month in which the loans become 120 days past due, whichever occurs first. For secured loans, both residential and commercial, the potential loss on impaired loans is carried as a loan loss reserve specific allocation; the loss portion is charged off when collection of the full loan appears unlikely. The unsecured portion of a real estate loan is that portion of the loan exceeding the "fair value" of the collateral less the estimated cost to sell. Value of the collateral is determined in accordance with the Company’s appraisal policy. The unsecured portion of an impaired real estate secured loan is charged off by the end of the month in which the loan becomes 180 days past due. As described below, the allowance consists of general, specific and unallocated components. However, the entire allowance is available to absorb losses in the loan portfolio, regardless of specific, general and unallocated components considered in determining the amount of the allowance. General component The general component of the ALL is based on historical loss experience, adjusted for qualitative factors and stratified by the following loan segments: commercial and industrial, commercial real estate, residential real estate first (1st) lien, residential real estate junior (Jr) lien and consumer loans. The Company does not disaggregate its portfolio segments further into classes. Loss ratios are calculated by loan segment for one year, two year, three year, four year and five year look back periods. The highest loss ratio among these look-back periods is then applied against the respective segment. Management uses an average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels of and trends in delinquencies and non-performing loans, levels of and trends in loan risk groups, trends in volumes and terms of loans, effects of any changes in loan related policies, experience, ability and the depth of management, documentation and credit data exception levels, national and local economic trends, external factors such as competition and regulation and lastly, concentrations of credit risk in a variety of areas, including portfolio product mix, the level of loans to individual borrowers and their related interests, loans to industry segments, and the geographic distribution of commercial real estate loans. This evaluation is inherently subjective as it requires estimates that are susceptible to revision as more information becomes available. The reserve methodology was modified during the quarter ended June 30, 2015 to eliminate using the higher of the 1999-2001 losses or current losses, by eliminating the use of the 1999-2001 periods. The 1999-2001 information had become dated and the Bank’s credit portfolio management had evolved since that period. The revised methodology now considers the highest annual loss rates for the most recent one to five year look back periods for each segment of the portfolio. This change in methodology resulted in a reduction to required reserves of $529,234 at June 30, 2015. However, that reduction was partially offset by adjustments made to the commercial & industrial and commercial real estate qualitative factors for the impact of the change in methodology, principally in the areas of loan growth, loan policy, and delinquency factors. As a result, the commercial & industrial and commercial real estate factors were each increased a total of 10 basis points, amounting to increases of $171,000 and $70,000, respectively at June 30, 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. The Company has policies, procedures and internal controls that management believes are commensurate with the risk profile of each of these segments. Major risk characteristics relevant to each portfolio segment are as follows: Commercial & Industrial – Commercial Real Estate – Residential Real Estate - 1st Lien – Residential Real Estate – Jr Lien – Consumer – Specific component The specific component of the ALL relates to loans that are impaired. Impaired loans are loan(s) to a borrower that in the aggregate are greater than $100,000 and that are in non-accrual status or are troubled debt restructurings (TDR) regardless of amount. A specific allowance is established for an impaired loan when its estimated impaired basis is less than the carrying value of the loan. For all loan segments, except consumer loans, a loan is considered impaired when, based on current information and events, in management’s estimation it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant or temporary payment delays and payment shortfalls generally are not classified as impaired. Management evaluates the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length and frequency of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis, by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Impaired loans also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that would otherwise not be granted. TDRs may include the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan’s terms, or a combination of the two. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment evaluation, unless such loans are subject to a restructuring agreement. Unallocated component An unallocated component of the ALL is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component reflects management’s estimate of the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Bank premises and equipment Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. The cost of assets sold or otherwise disposed of, and the related accumulated depreciation, are eliminated from the accounts and the resulting gains or losses are reflected in the consolidated statements of income. Maintenance and repairs are charged to current expense as incurred and the cost of major renewals and betterments is capitalized. Other real estate owned Real estate properties acquired through or in lieu of loan foreclosure or properties no longer used for bank operations are initially recorded at fair value less estimated selling cost at the date of acquisition, foreclosure or transfer. Fair value is determined, as appropriate, either by obtaining a current appraisal or evaluation prepared by an independent, qualified appraiser, by obtaining a broker’s market value analysis, and finally, if the Company has limited exposure and limited risk of loss, by the opinion of management as supported by an inspection of the property and its most recent tax valuation. During periods of declining market values, the Company will generally obtain a new appraisal or evaluation. Any write-down based on the asset's fair value at the date of acquisition or institution of foreclosure is charged to the ALL. After acquisition through or in lieu of foreclosure, these assets are carried at the lower of their new cost basis or fair value. Costs of significant property improvements are capitalized, whereas costs relating to holding the property are expensed as incurred. Appraisals by an independent, qualified appraiser are performed periodically on properties that management deems significant, or evaluations may be performed by management or a qualified third party on properties in the portfolio that are deemed less significant or less vulnerable to market conditions. Subsequent write-downs are recorded as a charge to other expense. Gains or losses on the sale of such properties are included in income when the properties are sold. Intangible assets Intangible assets include the excess of the purchase price over the fair value of net assets acquired (goodwill) in the 2007 acquisition of LyndonBank, as well as a core deposit intangible related to the deposits acquired from LyndonBank (see Note 6). The core deposit intangible is amortized on an accelerated basis over 10 years to approximate the pattern of economic benefit to the Company. The Company evaluates the valuation and amortization of the core deposit intangible asset if events occur that could result in possible impairment. Goodwill is reviewed for impairment annually, or more frequently as events or circumstances warrant. Income taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting bases and the tax bases of the Company's assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. Adjustments to the Company's deferred tax assets are recognized as deferred income tax expense or benefit based on management's judgments relating to the realizability of such asset. Mortgage servicing Servicing assets are recognized as separate assets when rights are acquired through purchase or retained upon the sale of loans. Capitalized servicing rights are reported in other assets and initially recorded at fair value, and are amortized against non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are periodically evaluated for impairment, based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying the rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance and is recorded as amortization of other assets, to the extent that estimated fair value is less than the capitalized amount at the valuation date. Subsequent improvement, if any, in the estimated fair value of impaired MSRs is reflected in a positive valuation adjustment and is recognized in other income up to (but not in excess of) the amount of the prior impairment. Pension costs Pension costs are charged to salaries and employee benefits expense and accrued over the active service period. Advertising costs The Company expenses advertising costs as incurred. Comprehensive income US GAAP generally requires recognized revenue, expenses, gains and losses to be included in net income. Certain changes in assets and liabilities, such as the after-tax effect of unrealized gains and losses on available-for-sale securities, are not reflected in the consolidated statement of income, but the cumulative effect of such items from period-to-period is reflected as a separate component of the shareholders’ equity section of the consolidated balance sheet (accumulated other comprehensive income or loss). Other comprehensive income or loss, along with net income, comprises the Company's total comprehensive income. Preferred stock The Company has outstanding 25 shares of fixed-to-floating rate non-cumulative perpetual preferred stock, without par value and with a liquidation preference of $100,000 per share, issued in December 2007. Under the terms of the preferred stock, the Company pays non-cumulative cash dividends quarterly, when, as and if declared by the Board of Directors. Dividends are payable at a variable dividend rate equal to the Wall Street Journal Prime Rate in effect on the first business day of each quarterly dividend period. A variable rate of 3.25% and 3.50% was in effect during 2015 and 2016, respectively. The variable rate then increased by 25 basis points for the dividend payment due in the first quarter of 2017. Earnings per common share Earnings per common share amounts are computed based on the weighted average number of shares of common stock issued during the period, including Dividend Reinvestment Plan (DRIP) shares issuable upon reinvestment of dividends (retroactively adjusted for stock splits and stock dividends, if any) and reduced for shares held in treasury. The following table illustrates the calculation of earnings per common share for the periods presented, as adjusted for the cash dividend declared on the preferred stock: Years Ended December 31, 2016 2015 Net income, as reported $ 5,484,278 $ 4,825,591 Less: dividends to preferred shareholders 87,500 81,250 Net income available to common shareholders $ 5,396,778 $ 4,744,341 Weighted average number of common shares used in calculating earnings per share 5,024,270 4,961,972 Earnings per common share $ 1.07 $ 0.96 Off-balance-sheet financial instruments In the ordinary course of business, the Company is a party to off-balance-sheet financial instruments consisting of commitments to extend credit, commercial and municipal letters of credit, standby letters of credit, and risk-sharing commitments on residential mortgage loans sold through the FHLBB’s Mortgage Partnership Finance (MPF) program. Such financial instruments are recorded in the consolidated financial statements when they are funded. Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Impact of recently issued accounting standards In January 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments A modified version of these requirements also applies to debt securities classified as available for sale, which will require that credit losses on those securities be recorded through an allowance for credit losses rather than a write-down. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the impact In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The Company has goodwill from its acquisition of LyndonBank in 2007 and performs an impairment test annually or more frequently if circumstances warrant (see Note 6). The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements, but does not anticipate any material impact at this time.

2. Investment Securities

2. Investment Securities	12 Months Ended
	Dec. 31, 2016
Investment Securities
Note 2. Investment Securities	Securities available-for-sale (AFS) and held-to-maturity (HTM) consist of the following: Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value December 31, 2016 U.S. Government sponsored enterprise (GSE) debt securities $ 17,365,805 $ 24,854 $ 73,331 $ 17,317,328 Agency mortgage-backed securities (Agency MBS) 13,265,790 3,896 115,458 13,154,228 Other investments 3,221,000 24,947 2,452 3,243,495 $ 33,852,595 $ 53,697 $ 191,241 $ 33,715,051 Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value December 31, 2015 U.S. GSE debt securities $ 12,832,059 $ 22,523 $ 22,139 $ 12,832,443 Agency MBS 10,734,121 0 69,637 10,664,484 Other investments 2,973,000 5,046 4,573 2,973,473 $ 26,539,180 $ 27,569 $ 96,349 $ 26,470,400 Gross Gross Amortized Unrealized Unrealized Fair Securities HTM Cost Gains Losses Value* December 31, 2016 States and political subdivisions $ 49,886,631 $ 1,148,369 $ 0 $ 51,035,000 December 31, 2015 States and political subdivisions $ 43,354,419 $ 788,581 $ 0 $ 44,143,000 *Method used to determine fair value rounds values to nearest thousand. The entire balance under “Securities HTM - States and political subdivisions" consists of securities of local municipalities which are attributable to municipal financing transactions directly with the Company. The reported fair value of these securities is an estimate based on an analysis that takes into account future maturities and scheduled future repricing. The Company anticipates no losses on these securities and expects to hold them until their maturity. Securities AFS with a book value of $33,604,595 and $23,566,180 and a fair value of $33,469,254 and $23,496,927 at December 31, 2016 and 2015, respectively, were pledged as collateral for larger dollar repurchase agreement accounts and for other purposes as required or permitted by law. There were no sales of securities AFS during 2016. Proceeds from sales of securities AFS were $7,019,450 in 2015 with gains of $22,802 and losses of $5,300. The carrying amount and estimated fair value of securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties, pursuant to contractual terms. Because the actual maturities of Agency MBS usually differ from their contractual maturities due to the right of borrowers to prepay the underlying mortgage loans, usually without penalty, those securities are not presented in the table by contractual maturity date. The scheduled maturities of debt securities AFS at December 31, 2016 were as follows: Amortized Fair Cost Value Due in one year or less $ 2,006,027 $ 2,010,287 Due from one to five years 17,335,778 17,329,503 Due from five to ten years 1,245,000 1,221,033 Mortgage-backed securities 13,265,790 13,154,228 $ 33,852,595 $ 33,715,051 The scheduled maturities of debt securities HTM at December 31, 2016 were as follows: Amortized Fair Cost Value* Due in one year or less $ 25,368,725 $ 25,369,000 Due from one to five years 4,030,900 4,318,000 Due from five to ten years 4,013,242 4,300,000 Due after ten years 16,473,764 17,048,000 $ 49,886,631 $ 51,035,000 *Method used to determine fair value rounds values to nearest thousand. Debt securities AFS with unrealized losses as of the balance sheet dates are presented in the tables below. There were no debt securities with unrealized losses of 12 months or more as of the balance sheet dates presented. Less than 12 months Number of Fair Unrealized Debt Securities Value Loss December 31, 2016 U.S. GSE debt securities 4 $ 5,176,669 $ 73,331 Agency MBS 15 10,704,717 115,458 Other investments 2 493,548 2,452 21 $ 16,374,934 $ 191,241 December 31, 2015 U.S. GSE debt securities 6 $ 6,243,373 $ 22,139 Agency MBS 12 10,664,484 69,637 Other investments 6 1,483,427 4,573 24 $ 18,391,284 $ 96,349 Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions, or adverse developments relating to the issuer, warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer's financial condition. As the Company has the ability to hold its debt securities until maturity, or for the foreseeable future if classified as AFS, and it is more likely than not that the Company will not have to sell such securities before recovery of their cost basis, no declines in such securities were deemed to be other-than-temporary at December 31, 2016 and 2015. The Bank is a member of the FHLBB. The FHLBB is a cooperatively owned wholesale bank for housing and finance in the six New England States. Its mission is to support the residential mortgage and community-development lending activities of its members, which include over 450 financial institutions across New England. The Company obtains much of its wholesale funding from the FHLBB. As a requirement of membership in the FHLBB, the Bank must own a minimum required amount of FHLBB stock, calculated periodically based primarily on the Bank’s level of borrowings from the FHLBB. As a result of the Bank’s level of borrowings during 2016, the Bank was required to purchase additional FHLBB stock which in aggregate totaled $2,180,600. No purchases of additional FHLBB stock were required during 2015. As a member of the FHLBB, the Company is also subject to future capital calls by the FHLBB in order to maintain compliance with its capital plan. During 2016 and 2015, FHLBB exercised capital call options totaling $1,866,400 and $890,800, respectively, on the Company’s portfolio of FHLBB stock. As of December 31, 2016 and 2015, the Company’s investment in FHLBB stock was $2,167,700 and $1,853,500, respectively. The Company periodically evaluates its investment in FHLBB stock for impairment based on, among other factors, the capital adequacy of the FHLBB and its overall financial condition. No impairment losses have been recorded through December 31, 2016. The Company’s investment in FRBB Stock was $588,150 at December 31, 2016 and 2015.

3. Loans, Allowance for Loan Lo

3. Loans, Allowance for Loan Losses and Credit Quality	12 Months Ended
	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Note 3. Loans, Allowance for Loan Losses and Credit Quality	The composition of net loans as of the balance sheet dates was as follows: 2016 2015 Commercial & industrial $ 68,730,573 $ 65,191,124 Commercial real estate 201,728,280 178,206,542 Residential real estate - 1st lien 166,691,962 162,760,273 Residential real estate - Junior (Jr) lien 42,927,335 44,720,266 Consumer 7,171,076 7,241,224 Gross Loans 487,249,226 458,119,429 Deduct (add): Allowance for loan losses 5,278,445 5,011,878 Deferred net loan costs (310,130 ) (316,491 ) Net Loans $ 482,280,911 $ 453,424,042 The following is an age analysis of past due loans (including non-accrual), by portfolio segment: 90 Days or 90 Days Total Non-Accrual More December 31, 2016 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 328,684 $ 26,042 $ 354,726 $ 68,375,847 $ 68,730,573 $ 143,128 $ 26,042 Commercial real estate 824,836 222,738 1,047,574 200,680,706 201,728,280 765,584 0 Residential real estate - 1st lien 4,881,496 1,723,688 6,605,184 160,086,778 166,691,962 1,227,220 1,068,083 - Jr lien 984,849 116,849 1,101,698 41,825,637 42,927,335 338,602 27,905 Consumer 53,972 2,176 56,148 7,114,928 7,171,076 0 2,176 Total $ 7,073,837 $ 2,091,493 $ 9,165,330 $ 478,083,896 $ 487,249,226 $ 2,474,534 $ 1,124,206 90 Days or 90 Days Total Non-Accrual More December 31, 2015 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 224,997 $ 168,244 $ 393,241 $ 64,797,883 $ 65,191,124 $ 441,103 $ 13,556 Commercial real estate 888,994 560,439 1,449,433 176,757,109 178,206,542 2,400,757 45,356 Residential real estate - 1st lien 2,875,768 1,408,551 4,284,319 158,475,954 162,760,273 2,009,079 801,241 - Jr lien 521,373 63,031 584,404 44,135,862 44,720,266 386,132 63,031 Consumer 83,343 0 83,343 7,157,881 7,241,224 0 0 Total $ 4,594,475 $ 2,200,265 $ 6,794,740 $ 451,324,689 $ 458,119,429 $ 5,237,071 $ 923,184 For all loan segments, loans over 30 days are considered delinquent. As of the balance sheet dates presented, residential mortgage loans in process of foreclosure consisted of the following: Number of loans Current Balance December 31, 2016 8 $ 322,663 December 31, 2015 5 400,905 The following summarizes changes in the ALL and select loan information, by portfolio segment: As of or for the year ended December 31, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Charge-offs (49,009 ) 0 (244,149 ) 0 (15,404 ) 0 (308,562 ) Recoveries 36,032 0 23,712 240 15,145 0 75,129 Provision (credit) 26,923 343,407 222,166 (51,886 ) 8,543 (49,153 ) 500,000 Ending balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 86,400 $ 6,200 $ 114,800 $ 0 $ 0 $ 207,400 Collectively 726,848 2,409,685 1,363,557 256,376 83,973 230,606 5,071,045 Total $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Loans evaluated for impairment Individually $ 48,385 $ 687,495 $ 946,809 $ 224,053 $ 0 $ 1,906,742 Collectively 68,682,188 201,040,785 165,745,153 42,703,282 7,171,076 485,342,484 Total $ 68,730,573 $ 201,728,280 $ 166,691,962 $ 42,927,335 $ 7,171,076 $ 487,249,226 As of or for the year ended December 31, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 646,719 $ 2,311,936 $ 1,270,766 $ 321,099 $ 118,819 $ 236,535 $ 4,905,874 Charge-offs (200,900 ) (14,783 ) (150,947 ) (66,104 ) (69,632 ) 0 (502,366 ) Recoveries 59,264 0 6,042 240 32,824 0 98,370 Provision (credit) 207,819 (144,475 ) 242,167 167,587 (6,322 ) 43,224 510,000 Ending balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 0 $ 25,100 $ 114,600 $ 0 $ 0 $ 139,700 Collectively 712,902 2,152,678 1,342,928 308,222 75,689 279,759 4,872,178 Total $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Loans evaluated for impairment Individually $ 286,436 $ 2,551,748 $ 1,419,808 $ 234,004 $ 0 $ 4,491,996 Collectively 64,904,688 175,654,794 161,340,465 44,486,262 7,241,224 453,627,433 Total $ 65,191,124 $ 178,206,542 $ 162,760,273 $ 44,720,266 $ 7,241,224 $ 458,119,429 Impaired loans by portfolio segment were as follows: As of December 31, 2016 2016 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded Commercial real estate $ 220,257 $ 232,073 $ 86,400 $ 89,664 Residential real estate - 1st lien 271,962 275,118 6,200 350,709 Residential real estate - Jr lien 224,053 284,342 114,800 241,965 716,272 791,533 207,400 682,338 With no related allowance recorded Commercial & industrial 48,385 62,498 183,925 Commercial real estate 467,238 521,991 1,059,542 Residential real estate - 1st lien 674,847 893,741 877,237 Residential real estate - Jr lien 0 0 15,888 1,190,470 1,478,230 2,136,592 Total $ 1,906,742 $ 2,269,763 $ 207,400 $ 2,818,930 As of December 31, 2015 2015 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded Commercial & industrial $ 0 $ 0 $ 0 $ 37,359 Commercial real estate 0 0 0 40,902 Residential real estate - 1st lien 173,788 182,251 25,100 228,273 Residential real estate - Jr lien 234,004 284,227 114,600 155,207 407,792 466,478 139,700 461,741 With no related allowance recorded Commercial & industrial 286,436 366,387 446,817 Commercial real estate 2,551,748 2,776,729 2,151,713 Residential real estate - 1st lien 1,246,020 1,460,402 973,572 Residential real estate - Jr lien 0 0 113,964 4,084,204 4,603,518 3,686,066 Total $ 4,491,996 $ 5,069,996 $ 139,700 $ 4,147,807 Interest income recognized on impaired loans is immaterial for all periods presented. Credit Quality Grouping In developing the ALL, management uses credit quality grouping to help evaluate trends in credit quality. The Company groups credit risk into Groups A, B and C. The manner the Company utilizes to assign risk grouping is driven by loan purpose. Commercial purpose loans are individually risk graded while the retail portion of the portfolio is generally grouped by delinquency pool. Group A loans - Acceptable Risk Group B loans – Management Involved Group C loans – Unacceptable Risk Commercial purpose loan ratings are assigned by the commercial account officer; for larger and more complex commercial loans, the credit rating is a collaborative assignment by the lender and the credit analyst. The credit risk rating is based on the borrower's expected performance, i.e., the likelihood that the borrower will be able to service its obligations in accordance with the loan terms. Credit risk ratings are meant to measure risk versus simply record history. Assessment of expected future payment performance requires consideration of numerous factors. While past performance is part of the overall evaluation, expected performance is based on an analysis of the borrower's financial strength, and historical and projected factors such as size and financing alternatives, capacity and cash flow, balance sheet and income statement trends, the quality and timeliness of financial reporting, and the quality of the borrower’s management. Other factors influencing the credit risk rating to a lesser degree include collateral coverage and control, guarantor strength and commitment, documentation, structure and covenants and industry conditions. There are uncertainties inherent in this process. Credit risk ratings are dynamic and require updating whenever relevant information is received. The risk ratings of larger or more complex loans, and Group B and C rated loans, are assessed at the time of their respective annual reviews, during quarterly updates, in action plans or at any other time that relevant information warrants update. Lenders are required to make immediate disclosure to the Chief Credit Officer of any known increase in loan risk, even if considered temporary in nature. The risk ratings within the loan portfolio by segments as of the balance sheet dates were as follows: As of December 31, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 67,297,983 $ 191,755,393 $ 164,708,778 $ 42,289,062 $ 7,168,901 $ 473,220,117 Group B 512,329 2,971,364 0 169,054 0 3,652,747 Group C 920,261 7,001,523 1,983,184 469,219 2,175 10,376,362 Total $ 68,730,573 $ 201,728,280 $ 166,691,962 $ 42,927,335 $ 7,171,076 $ 487,249,226 As of December 31, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 59,764,081 $ 168,326,527 $ 158,834,849 $ 44,041,594 $ 7,241,224 $ 438,208,275 Group B 4,724,729 4,529,493 599,516 212,508 0 10,066,246 Group C 702,314 5,350,522 3,325,908 466,164 0 9,844,908 Total $ 65,191,124 $ 178,206,542 $ 162,760,273 $ 44,720,266 $ 7,241,224 $ 458,119,429 Modifications of Loans and TDRs A loan is classified as a TDR if, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. The Company is deemed to have granted such a concession if it has modified a troubled loan in any of the following ways: ● Reduced accrued interest; ● Reduced the original contractual interest rate to a rate that is below the current market rate for the borrower; ● Converted a variable-rate loan to a fixed-rate loan; ● Extended the term of the loan beyond an insignificant delay; ● Deferred or forgiven principal in an amount greater than three months of payments; or ● Performed a refinancing and deferred or forgiven principal on the original loan. An insignificant delay or insignificant shortfall in the amount of payments typically would not require the loan to be accounted for as a TDR. However, pursuant to regulatory guidance, any payment delay longer than three months is generally not considered insignificant. Management’s assessment of whether a concession has been granted also takes into account payments expected to be received from third parties, including third-party guarantors, provided that the third party has the ability to perform on the guarantee. The Company’s TDRs are principally a result of extending loan repayment terms to relieve cash flow difficulties. The Company has only, on a limited basis, reduced interest rates for borrowers below the current market rate for the borrower. The Company has not forgiven principal or reduced accrued interest within the terms of original restructurings, nor has it converted variable rate terms to fixed rate terms. However, the Company evaluates each TDR situation on its own merits and does not foreclose the granting of any particular type of concession. TDRs by segment for the periods presented were as follows: Year ended December 31, 2016 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Residential real estate – 1st lien 8 $ 572,418 $ 598,030 Residential real estate - Jr lien 2 62,819 64,977 Total 10 $ 635,237 $ 663,007 Year ended December 31, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commercial & industrial 2 $ 199,134 $ 204,142 Commercial real estate 3 581,431 616,438 Residential real estate - 1st lien 12 1,229,100 1,303,228 Residential real estate - Jr lien 2 117,746 121,672 Total 19 $ 2,127,411 $ 2,245,480 The TDRs for which there was a payment default during the twelve month periods presented were as follows: Year ended December 31, 2016 Number of Recorded Contracts Investment Residential real estate - 1st lien 2 $ 93,230 Residential real estate - Jr lien 1 54,557 Total 3 $ 147,787 Year ended December 31, 2015 Number of Recorded Contracts Investment Commercial real estate 1 $ 149,514 Residential real estate - 1st lien 4 286,803 Residential real estate - Jr lien 1 69,828 Total 6 $ 506,145 TDRs are treated as other impaired loans and carry individual specific reserves with respect to the calculation of the ALL. These loans are categorized as non-performing, may be past due, and are generally adversely risk rated. The TDRs that have defaulted under their restructured terms are generally in collection status and their reserve is typically calculated using the fair value of collateral method. The specific allowances related to TDRs as of the balance sheet dates presented were as follows: 2016 2015 Specific Allowance $ 92,600 $ 25,100 As of December 31, 2016, the Company was not contractually committed to lend additional funds to debtors with impaired or non-accrual loans. The Company is contractually committed to lend on one Small Business Administration guaranteed line of credit to a borrower whose lending relationship was previously restructured, but is no longer considered impaired for disclosure purposes.

4. Loan Servicing

4. Loan Servicing	12 Months Ended
	Dec. 31, 2016
Transfers and Servicing of Financial Assets [Abstract]
Note 4. Loan Servicing	Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $193,858,201 and $193,994,081 at December 31, 2016 and 2015, respectively. Net gain realized on the sale of loans was $429,480 and $424,240 for the years ended December 31, 2016 and 2015, respectively. The following table summarizes changes in MSRs for the years ended December 31, 2016 2015 Balance at beginning of year $ 1,293,079 $ 1,311,965 MSRs capitalized 176,705 230,818 MSRs amortized (266,603 ) (257,921 ) Change in valuation allowance 7,514 8,217 Balance at end of year $ 1,210,695 $ 1,293,079

5. Bank Premises and Equipment

5. Bank Premises and Equipment	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Note 5. Bank Premises and Equipment	The major classes of bank premises and equipment and accumulated depreciation and amortization at December 31 were as follows: 2016 2015 Buildings and improvements $ 11,213,737 $ 11,176,189 Land and land improvements 2,433,971 2,377,703 Furniture and equipment 9,277,592 8,752,908 Leasehold improvements 1,117,085 1,048,409 Capital lease 991,014 976,907 Other prepaid assets 125,584 514,476 25,158,983 24,846,592 Less accumulated depreciation and amortization (14,328,427 ) (13,386,385 ) $ 10,830,556 $ 11,460,207 The Company is obligated under non-cancelable operating leases for bank premises expiring in various years through 2026, with options to renew. Minimum future rental payments for these leases with original terms in excess of one year as of December 31, 2016 for each of the next five years and in aggregate are: 2017 $ 230,563 2018 233,706 2019 206,470 2020 179,581 2021 97,800 Subsequent to 2021 330,000 $ 1,278,120 Total rental expense amounted to $204,324 and $204,991 for the years ended December 31, 2016 and 2015, respectively. Capital lease obligations The following is a schedule by years of future minimum lease payments under capital leases, together with the present value of the net minimum lease payments as of December 31, 2016: 2017 $ 136,560 2018 141,460 2019 141,460 2020 110,460 2021 39,117 Total minimum lease payments 569,057 Less amount representing interest (85,896 ) Present value of net minimum lease payments $ 483,161

6. Goodwill and Other Intangibl

6. Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Note 6. Goodwill and Other Intangible Assets	As a result of the acquisition of LyndonBank on December 31, 2007, the Company recorded goodwill amounting to $11,574,269. The goodwill is not amortizable and is not deductible for tax purposes. Management evaluated goodwill for impairment at December 31, 2016 and 2015 and concluded that no impairment existed as of such dates. The Company also recorded $4,161,000 of acquired identified intangible assets representing the core deposit intangible, which is subject to amortization as a non-interest expense over a ten year period. The accumulated amortization expense was $3,888,309 and $3,615,614 as of December 31, 2016 and 2015, respectively. The future amortization expense related to the remaining core deposit intangible at December 31, 2016 is $272,691 and will be fully expensed in 2017.

7. Other Investments

7. Other Investments	12 Months Ended
	Dec. 31, 2016
Other Investments [Abstract]
Note 7. Other Investments	In 2011, the Company established a single-member LLC to facilitate the purchase of federal NMTC through an investment structure designed by a local community development entity. The LLC does not conduct any business apart from its role in the NMTC financing structure. The NMTC equity investment generated tax credits of $204,900 for each of the years ended December 31, 2016 and 2015, with an amortization expense of $177,938 and $161,890, respectively. The carrying value of the NMTC equity investment was $196,572 and $374,510 at December 31, 2016 and 2015, respectively, and is included in other assets in the consolidated balance sheets. The Company purchases from time to time interests in various limited partnerships established to acquire, own and rent residential housing for low and moderate income Vermonters located in northeastern and central Vermont. The tax credits from these investments were $448,290 and $431,715 for the years ended December 31, 2016 and 2015, respectively. Additionally, the Company recognized a one-time rehabilitation credit on one limited partnership amounting to $273,843 for 2016. Expenses related to amortization of the investments in the limited partnerships are recognized as a component of income tax expense, and were $731,448 and $403,445 for 2016 and 2015, respectively. The carrying values of the limited partnership investments were $1,731,484 and $2,462,932 at December 31, 2016 and 2015, respectively, and are included in other assets. The Bank has a one-third ownership interest in a non-depository trust company, CFSG, based in Newport, Vermont, which is held indirectly through Community Financial Services Partners, LLC (CFSG Partners), a Vermont LLC that owns 100% of the LLC equity interests of CFSG. The Bank accounts for its investment in CFSG Partners under the equity method of accounting. The Company's investment in CFSG Partners, included in other assets, amounted to $2,016,785 and $1,587,777 as of December 31, 2016 and 2015, respectively. The Company recognized income of $429,008 and $361,044 for 2016 and 2015, respectively, through CFSG Partners from the operations of CFSG.

8. Deposits

8. Deposits	12 Months Ended
	Dec. 31, 2016
Maturities of Time Deposits [Abstract]
Note 8. Deposits	The following is a maturity distribution of time deposits at December 31, 2016: 2017 $ 65,384,502 2018 17,229,272 2019 14,568,044 2020 7,898,848 2021 11,309,263 Total time certificates of deposit $ 116,389,929 Total deposits in excess of the Federal Deposit Insurance Corporation (FDIC) insurance level amounted to $139,897,460 as of December 31, 2016.

9. Borrowed Funds

9. Borrowed Funds	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Note 9. Borrowed Funds	Outstanding advances for the Company as of the balance sheet dates presented were as follows: 2016 2015 Long-Term Advances(1) FHLBB term advance, 0.00%, due February 26, 2021 $ 350,000 $ 0 FHLBB term advance, 0.00%, due September 22, 2023 200,000 0 FHLBB term advance, 0.00%, due November 22, 2021 1,000,000 0 1,550,000 0 Short-Term Advances FHLBB term advances, 0.77% and 0.48% fixed rate, due February 08, 2017 and February 26, 2016, respectively 10,000,000 10,000,000 FHLBB term advance 0.77% fixed rate, due February 24, 2017 10,000,000 0 FHLBB term advance 0.92% fixed rate, due June 14, 2017 10,000,000 0 30,000,000 10,000,000 Total Advances $ 31,550,000 $ 10,000,000 (1) The Company has borrowed a total of $1,550,000 under the FHLBB’s Jobs for New England (JNE) program, a program dedicated to supporting job growth and economic development throughout New England. The FHLBB is providing a subsidy, funded by the FHLBB’s earnings, to write down interest rates to zero percent on JNE advances that finance qualifying loans to small businesses. JNE advances must support lending to small businesses in New England that create and/or retain jobs, or otherwise contribute to overall economic development activities. Borrowings from the FHLBB are secured by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by 1-4 family residential properties. Qualified collateral for these borrowings totaled $94,744,189 and $100,361,793 as of December 31, 2016 and 2015, respectively. As of December 31, 2016 and 2015, the Company's gross potential borrowing capacity under this arrangement was $68,163,543 and $72,091,633, respectively, before reduction for outstanding advances and collateral pledges. Under a separate agreement with the FHLBB, the Company has the authority to collateralize public unit deposits, up to its available borrowing capacity, with letters of credit issued by the FHLBB. At December 31, 2016, $21,225,000 in FHLBB letters of credit was utilized as collateral for these deposits compared to $14,900,000 at December 31, 2015. Total fees paid by the Company in connection with issuance of these letters of credit were $25,967 for 2016 and $29,535 for 2015. The Company also maintained a $500,000 IDEAL Way Line of Credit with the FHLBB at December 31, 2016 and 2015, with no outstanding advances under this line at either year-end date. Interest on these borrowings is at a rate determined daily by the FHLBB and payable monthly. The Company also has a line of credit with the FRBB, which is intended to be used as a contingency funding source. For this Borrower-in-Custody arrangement, the Company pledged eligible commercial and industrial loans, commercial real estate loans and home equity loans, resulting in an available line of $77,862,708 and $72,345,479 as of December 31, 2016 and 2015, respectively. Credit advances in the FRBB lending program are overnight advances with interest chargeable at the primary credit rate (generally referred to as the discount rate), which was 125 basis points as of December 31, 2016. As of December 31, 2016 and 2015, the Company had no outstanding advances against this line. The Company has an unsecured line of credit with two correspondent banks with available borrowing capacity totaling $7,500,000 at December 31, 2015 and unsecured lines of credit with three correspondent banks with available borrowing capacity totaling $12,500,000 at December 31, 2016. The Company had no outstanding advances against these lines for the periods presented.

10. Junior Subordinated Debentu

10. Junior Subordinated Debentures	12 Months Ended
	Dec. 31, 2016
Junior Subordinated Notes [Abstract]
Note 10. Junior Subordinated Debentures	As of December 31, 2016 and 2015, the Company had outstanding $12,887,000 principal amount of Junior Subordinated Debentures due in 2037 (the Debentures). The Debentures bear a floating rate equal to the 3-month London Interbank Offered Rate plus 2.85%. During 2016, the floating rate approximated 3.51% per quarter compared to 3.13% for 2015. The Debentures mature on December 15, 2037 and are subordinated and junior in right of payment to all senior indebtedness of the Company, as defined in the Indenture dated as of October 31, 2007 between the Company and Wilmington Trust Company, as Trustee. The Debentures first became redeemable, in whole or in part, by the Company on December 15, 2012. Interest paid on the Debentures for 2016 and 2015 was $460,142 and $409,432, respectively, and is deductible for tax purposes. The Debentures were issued and sold to CMTV Statutory Trust I (the Trust). The Trust is a special purpose trust funded by a capital contribution of $387,000 from the Company, in exchange for 100% of the Trust’s common equity. The Trust was formed for the purpose of issuing corporation-obligated mandatorily redeemable Capital Securities (Capital Securities) in the principal amount of $12.5 million to third-party investors and using the proceeds from the sale of such Capital Securities and the Company’s initial capital contribution to purchase the Debentures. The Debentures are the sole asset of the Trust. Distributions on the Capital Securities issued by the Trust are payable quarterly at a rate per annum equal to the interest rate being earned by the Trust on the Debentures. The Capital Securities are subject to mandatory redemption, in whole or in part, upon repayment of the Debentures. The Company has entered into an agreement which, taken collectively, fully and unconditionally guarantees the payments on the Capital Securities, subject to the terms of the guarantee. The Debentures are currently includable in the Company’s Tier 1 capital up to 25% of core capital elements (see Note 20).

11. Repurchase Agreements

11. Repurchase Agreements	12 Months Ended
	Dec. 31, 2016
Securities Sold under Agreements to Repurchase [Abstract]
Note 11. Repurchase Agreements	Securities sold under agreements to repurchase amounted to $30,423,195 and $22,073,238 as of December 31, 2016 and 2015, respectively. These agreements were collateralized by U.S. GSE securities, Agency MBS securities and certificates of deposit with a book value of $33,604,595 and a fair value of $33,469,254 at December 31, 2016 and by U.S. GSE securities and Agency MBS securities with a book value of $23,566,180 and a fair value of $23,496,927 at December 31, 2015. The average daily balance of these repurchase agreements was $25,888,496 and $24,332,366 during 2016 and 2015, respectively. The maximum borrowings outstanding on these agreements at any month-end of the Company were $30,423,195 and $28,229,636 during 2016 and 2015, respectively. These repurchase agreements mature daily and carried a weighted average interest rate of 0.30% during 2016 and 0.29% during 2015.

12. Income Taxes

12. Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Note 12. Income Taxes	The Company prepares its federal income tax return on a consolidated basis. Federal income taxes are allocated to members of the consolidated group based on taxable income. Federal income tax expense for the years ended December 31 was as follows: 2016 2015 Currently paid or payable $ 2,096,474 $ 1,937,004 Deferred tax benefit (172,562 ) (172,374 ) Total income tax expense $ 1,923,912 $ 1,764,630 Total income tax expense differed from the amounts computed at the statutory federal income tax rate of 34 percent primarily due to the following for the years ended December 31: 2016 2015 Computed expense at statutory rates $ 2,518,785 $ 2,240,669 Tax exempt interest and BOLI (471,900 ) (414,855 ) Disallowed interest 13,053 11,523 Partnership tax credits (857,359 ) (566,949 ) Low income housing investment amortization expense 482,756 266,280 NMTC amortization expense 117,439 106,847 Other 121,138 121,116 $ 1,923,912 $ 1,764,630 The deferred income tax benefit consisted of the following items for the years ended December 31: 2016 2015 Depreciation $ 64,758 $ (82,902 ) MSRs (28,011 ) (6,421 ) Deferred compensation (58,194 ) (26,169 ) Bad debts (90,633 ) (36,042 ) Non-accrual loan interest 0 13,731 Limited partnership amortization 7,865 56,890 Investment in CFSG Partners 13,187 20,182 Core deposit intangible (92,716 ) (92,716 ) Loan fair value (7,514 ) (9,951 ) OREO write down 6,460 (10,370 ) Other 12,236 1,394 Deferred tax benefit $ (172,562 ) $ (172,374 ) Listed below are the significant components of the net deferred tax asset at December 31: 2016 2015 Components of the deferred tax asset: Bad debts $ 1,794,672 $ 1,704,039 Deferred compensation 302,166 243,972 Contingent liability - MPF program 45,042 45,042 OREO write down 13,940 20,400 Capital lease 63,228 69,567 Unrealized loss on securities available-for-sale 46,765 23,385 Other 22,837 28,733 Total deferred tax asset $ 2,288,650 $ 2,135,138 2016 2015 Components of the deferred tax liability: Depreciation 219,304 154,546 Limited partnerships 52,109 44,244 MSRs 411,636 439,647 Investment in CFSG Partners 115,035 101,848 Core deposit intangible 92,715 185,431 Fair value adjustment on acquired loans 21,930 29,444 Total deferred tax liability 912,729 955,160 Net deferred tax asset $ 1,375,921 $ 1,179,978 US GAAP provides for the recognition and measurement of deductible temporary differences (including general valuation allowances) to the extent that it is more likely than not that the deferred tax asset will be realized. The net deferred tax asset is included in other assets in the consolidated balance sheets. ASC Topic 740, Income Taxes

13. 401(k) and Profit-Sharing P

13. 401(k) and Profit-Sharing Plan	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Note 13. 401(k) and Profit-Sharing Plan	The Company has a defined contribution plan covering all employees who meet certain age and service requirements. The pension expense was $652,078 and $610,631 for 2016 and 2015, respectively. These amounts represent discretionary matching contributions of a portion of the voluntary employee salary deferrals under the 401(k) plan and discretionary profit-sharing contributions under the plan.

14. Deferred Compensation and S

14. Deferred Compensation and Supplemental Employee Retirement Plans	12 Months Ended
	Dec. 31, 2016
Compensation Related Costs [Abstract]
Note 14. Deferred Compensation and Supplemental Employee Retirement Plans	The Company maintains a directors’ deferred compensation plan and, prior to 2005, maintained a retirement plan for its directors. Participants are general unsecured creditors of the Company with respect to these benefits. The benefits accrued under these plans were $114,014 and $141,857 at December 31, 2016 and 2015, respectively. Expenses associated with these plans were $723 and $779 for the years ended December 31, 2016 and 2015, respectively. The Company also maintains a supplemental employee retirement plan (SERP) for certain key employees of the Company. Benefits accrued under this plan were $774,713 and $575,709 at December 31, 2016 and 2015, respectively. The expense associated with this plan was $199,004 and $114,190 for the years ended December 31, 2016 and 2015, respectively.

15. Financial Instruments with

15. Financial Instruments with Off-Balance-Sheet Risk	12 Months Ended
	Dec. 31, 2016
Financial Instruments With Off-balance-sheet Risk
Note 15. Financial Instruments with Off-Balance-Sheet Risk	The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees, commitments to sell loans and risk-sharing commitments on certain sold loans. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the maximum extent of involvement the Company has in particular classes of financial instruments. The Company's maximum exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual notional amount of those instruments. The Company applies the same credit policies and underwriting criteria in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Company generally requires collateral or other security to support financial instruments with credit risk. At December 31, the following off-balance-sheet financial instruments representing credit risk were outstanding: Contract or Notional Amount 2016 2015 Unused portions of home equity lines of credit $ 25,535,104 $ 25,074,972 Residential construction lines of credit 3,676,176 3,658,037 Commercial real estate and other construction lines of credit 25,951,345 15,586,595 Commercial and industrial commitments 36,227,213 46,197,882 Other commitments to extend credit 42,459,454 19,991,513 Standby letters of credit and commercial letters of credit 2,009,788 1,859,059 Recourse on sale of credit card portfolio 258,555 262,625 MPF credit enhancement obligation, net of liability recorded 748,239 1,051,601 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements. At December 31, 2016 and 2015, the Company had binding loan commitments to sell residential mortgages at fixed rates totaling $832,000 and $3,655,547, respectively (see Note 16). The recourse provision under the terms of the sale of the Company’s credit card portfolio in 2007 is based on total lines, not balances outstanding. Based on historical losses, the Company does not expect any significant losses from this commitment. The Company evaluates each customer's credit-worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit, or a commitment to extend credit, is based on management's credit evaluation of the counter-party. Collateral or other security held varies but may include real estate, accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Standby letters of credit and financial guarantees written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The fair value of standby letters of credit has not been included in the balance sheets as the fair value is immaterial. In connection with its 2007 trust preferred securities financing, the Company guaranteed the payment obligations under the $12,500,000 of capital securities of its subsidiary, the Trust. The source of funds for payments by the Trust on its capital trust securities is payments made by the Company on its debentures issued to the Trust. The Company's obligation under those debentures is fully reflected in the Company's consolidated balance sheet, in the gross amount of $12,887,000 as of the dates presented, of which $12,500,000 represents external financing through the issuance to investors of capital securities by the Trust (see Note 10).

16. Contingent Liability

16. Contingent Liability	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Note 16. Contingent Liability	The Company sells first lien 1-4 family residential mortgage loans under the MPF program with the FHLBB. Under this program the Company shares in the credit risk of each mortgage loan, while receiving fee income in return. The Company is responsible for a Credit Enhancement Obligation (CEO) based on the credit quality of these loans. FHLBB funds a First Loss Account (FLA) based on the Company's outstanding MPF mortgage balances. This creates a laddered approach to sharing in any losses. In the event of default, homeowner's equity and private mortgage insurance, if any, are the first sources of repayment; the FHLBB's FLA funds are then utilized, followed by the participant’s CEO, with the balance of losses absorbed by FHLBB. These loans must meet specific underwriting standards of the FHLBB. As of December 31, 2016 and 2015, the Company had $48,058,235 and $50,374,657, respectively, in loans sold through the MPF program and on which the Company had a CEO. As of December 31, 2016, the notional amount of the maximum CEO related to this program was $870,664 compared to $1,171,787 as of December 31, 2015. The Company had accrued a contingent liability for this CEO in the amount of $122,425 and $120,186 as of December 31, 2016 and 2015, respectively, which is calculated by management based on the methodology used in calculating the ALL, adjusted to reflect the risk sharing arrangements with the FHLBB.

17. Legal Proceedings

17. Legal Proceedings	12 Months Ended
	Dec. 31, 2016
Legal Proceedings
Note 17. Legal Proceedings	In the normal course of business, the Company is involved in various claims and legal proceedings. In the opinion of the Company's management, any liabilities resulting from such proceedings are not expected to be material to the Company's consolidated financial condition or results of operations.

18. Transactions with Related P

18. Transactions with Related Parties	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Note 18. Transactions with Related Parties	Aggregate loan transactions of the Company with directors, principal officers, their immediate families and affiliated companies in which they are principal owners (commonly referred to as related parties) as of December 31 were as follows: 2016 2015 Balance, beginning of year $ 14,017,551 $ 8,593,273 Loans - New Directors 0 7,225,328 New loans to existing Officers/Directors 11,862,375 14,587,380 Retirement/Resignation of Director 0 (1,824,495 ) Repayment* (11,758,440 ) (14,563,935 ) Balance, end of year $ 14,121,486 $ 14,017,551 *Includes loans sold to the secondary market. Total funds of related parties on deposit with the Company were $7,938,810 and $5,713,210 at December 31, 2016 and 2015, respectively. The Company leases 2,253 square feet of condominium space in the state office building on Main Street in Newport, Vermont to its trust company affiliate, CFSG, for its principal offices. CFSG also leases offices in the Company’s Barre and Lyndonville branches. The amount of rental income received from CFSG for the years ended December 31, 2016 and 2015 was $60,660 and $59,343, respectively. The Company utilizes the services of CFSG as an investment advisor for the Company’s 401(k) plan. The Human Resources committee of the Board of Directors is the Trustee of the plan, and CFSG provides investment advice for the plan. CFSG also acts as custodian of the retirement funds and makes investments on behalf of the plan and its participants. In addition, CFSG serves as investment advisor and custodian of funds under the Company’s SERP. The Company pays monthly management fees to CFSG for its services to the 401(k) plan and the SERP based on the market value of the total assets under management. The amount paid to CFSG for the years ended December 31, 2016 and 2015 was $44,065 and $47,448, respectively, for the 401(k) plan and $2,442 and $2,065, respectively, for the SERP.

19. Restrictions on Cash and Du

19. Restrictions on Cash and Due From Banks	12 Months Ended
	Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Note 19. Restrictions on Cash and Due From Banks	In the ordinary course of business, the Company may, from time to time, maintain amounts due from correspondent banks that exceed federally insured limits. However, no losses have occurred in these accounts and the Company believes it is not exposed to any significant risk with respect to such accounts. The Company was required to maintain contracted balances with other correspondent banks of $462,500 at December 31, 2016 and 2015. Of the $462,500 balance, $262,500 was a separate agreed upon “impressed” balance to avoid monthly charges on the Company’s current federal funds liquidity line.

20. Regulatory Capital Requirem

20. Regulatory Capital Requirements	12 Months Ended
	Dec. 31, 2016
Regulatory Capital Requirements [Abstract]
Note 20. Regulatory Capital Requirements	The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on the Company's and the Bank's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Additional prompt corrective action capital requirements are applicable to banks, but not to bank holding companies. The Company and the Bank are required to maintain minimum amounts and ratios (set forth in the table below) of Common equity tier 1, Tier 1 and Total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). The Company’s non-cumulative Series A preferred stock ($2.5 million liquidation preference) is includable without limitation in its Common equity tier 1 and Tier 1 capital. The Company is allowed to include in Common equity tier 1 and Tier 1 capital an amount of trust preferred securities equal to no more than 25% of the sum of all core capital elements, which is generally defined as shareholders’ equity, less certain intangibles, including goodwill and the core deposit intangible, net of any related deferred income tax liability, with the balance includable in Tier 2 capital. Management believes that, as of December 31, 2016, the Company and the Bank met all capital adequacy requirements to which they are currently subject. Beginning in 2016, an additional capital conservation buffer has been added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservation buffer will be fully phased-in on January 1, 2019 at 2.5% of risk-weighted assets. A banking organization with a conservation buffer of less than 2.5% (or the required phase-in amount in years prior to 2019) will be subject to limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The Company’s and the Bank’s capital conservation buffer was 5.52% and 5.42%, respectively, at December 31, 2016. As of December 31, 2016, both the Company and the Bank exceed the required capital conservation buffer of 0.0625% and on a pro forma basis would be compliant with the fully phased-in capital conservation buffer requirement. As of December 31, 2016, the Bank was considered well capitalized under the regulatory capital framework for Prompt Corrective Action and the Company exceeded applicable consolidated regulatory guidelines for capital adequacy. The following table shows the regulatory capital ratios for the Company and the Bank as of December 31: Minimum Minimum To Be Well For Capital Capitalized Under Adequacy Prompt Corrective Actual Purposes: Action Provisions(1): Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) December 31, 2016 Common equity tier 1 capital (to risk-weighted assets) Company $ 55,690 12.34 % $ 20,304 4.50 % N/A N/A Bank $ 55,120 12.23 % $ 20,274 4.50 % $ 29,285 6.50 % Tier 1 capital (to risk-weighted assets) Company $ 55,690 12.34 % $ 27,072 6.00 % N/A N/A Bank $ 55,120 12.23 % $ 27,032 6.00 % $ 36,043 8.00 % Total capital (to risk-weighted assets) Company $ 61,012 13.52 % $ 36,096 8.00 % N/A N/A Bank $ 60,443 13.42 % $ 36,043 8.00 % $ 45,054 10.00 % Tier 1 capital (to average assets) Company $ 55,690 9.17 % $ 24,305 4.00 % N/A N/A Bank $ 55,120 9.08 % $ 24,281 4.00 % $ 30,351 5.00 % December 31, 2015 Common equity tier 1 capital (to risk-weighted assets) Company $ 52,555 12.38 % $ 19,100 4.50 % N/A N/A Bank $ 52,000 12.27 % $ 19,072 4.50 % $ 27,549 6.50 % Tier 1 capital (to risk-weighted assets) Company $ 52,555 12.38 % $ 25,467 6.00 % N/A N/A Bank $ 52,000 12.27 % $ 25,430 6.00 % $ 33,906 8.00 % Total capital (to risk-weighted assets) Company $ 57,610 13.57 % $ 33,956 8.00 % N/A N/A Bank $ 57,056 13.46 % $ 33,906 8.00 % $ 42,383 10.00 % Tier 1 capital (to average assets) Company $ 52,555 9.01 % $ 23,324 4.00 % N/A N/A Bank $ 52,000 8.93 % $ 23,301 4.00 % $ 29,126 5.00 % The Company's ability to pay dividends to its shareholders is largely dependent on the Bank's ability to pay dividends to the Company. The Bank is restricted by law as to the amount of dividends that can be paid. Dividends declared by national banks that exceed net income for the current and preceding two years must be approved by the Bank’s primary banking regulator, the Office of the Comptroller of the Currency. Regardless of formal regulatory restrictions, the Bank may not pay dividends that would result in its capital levels being reduced below the minimum requirements shown above.

21. Fair Value

21. Fair Value	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Note 21. Fair Value	Certain assets and liabilities are recorded at fair value to provide additional insight into the Company’s quality of earnings. The fair values of some of these assets and liabilities are measured on a recurring basis while others are measured on a non-recurring basis, with the determination based upon applicable existing accounting pronouncements. For example, securities available-for-sale are recorded at fair value on a recurring basis. Other assets, such as MSRs, loans held-for-sale, impaired loans, and OREO are recorded at fair value on a non-recurring basis using the lower of cost or market methodology to determine impairment of individual assets. The Company groups assets and liabilities which are recorded at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement (with Level 1 considered highest and Level 3 considered lowest). A brief description of each level follows. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as U.S. Treasury, other U.S. Government debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes MSRs, impaired loans and OREO. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. The following methods and assumptions were used by the Company in estimating its fair value measurements and disclosures: Cash and cash equivalents: Securities available-for-sale and held-to-maturity: Restricted equity securities: Loans and loans held-for-sale: The fair value of loans held-for-sale is based upon an actual purchase and sale agreement between the Company and an independent market participant. The sale is executed within a reasonable period following quarter end at the stated fair value. MSRs: OREO: Deposits, federal funds purchased and borrowed funds: Capital lease obligations: Junior subordinated debentures: Accrued interest: Off-balance-sheet credit related instruments: FASB ASC Topic 825 “Financial Instruments”, requires disclosures of fair value information about financial instruments, whether or not recognized in the balance sheet, if the fair values can be reasonably determined. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques using observable inputs when available. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Topic 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Assets Recorded at Fair Value on a Recurring Basis Assets measured at fair value on a recurring basis and reflected in the consolidated balance sheets at the dates presented, segregated by fair value hierarchy, are summarized below: December 31, 2016 Level 2 Assets: (market approach) U.S. GSE debt securities $ 17,317,328 Agency MBS 13,154,228 Other investments 3,243,495 Total $ 33,715,051 December 31, 2015 Level 2 Assets: (market approach) U.S. GSE debt securities $ 12,832,443 Agency MBS 10,664,484 Other investments 2,973,473 $ 26,470,400 There were no Level 1 or Level 3 assets or liabilities measured on a recurring basis as of the balance sheet dates presented. Assets Recorded at Fair Value on a Non-Recurring Basis The following table includes assets measured at fair value on a nonrecurring basis that have had a fair value adjustment since their initial recognition. Impaired loans measured at fair value only include impaired loans with a related specific ALL and are presented net of specific allowances as disclosed in Note 3. Assets measured at fair value on a nonrecurring basis and reflected in the consolidated balance sheets at the dates presented, segregated by fair value hierarchy, are summarized below: December 31, 2016 Level 2 Assets: (market approach) MSRs(1) $ 1,210,695 Impaired loans, net of related allowance 508,872 OREO 394,000 December 31, 2015 Assets: (market approach) MSRs(1) $ 1,293,079 Impaired loans, net of related allowance 268,092 OREO 262,000 (1) Represents MSRs at lower of cost or fair value, including MSRs deemed to be impaired and for which a valuation allowance was established to carry at fair value at December 31, 2016 and 2015. There were no Level 1 or Level 3 assets or liabilities measured on a non-recurring basis as of the balance sheet dates presented. The carrying amounts and estimated fair values of the Company's financial instruments were as follows: December 31, 2016 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 29,614 $ 29,614 $ 0 $ 0 $ 29,614 Securities held-to-maturity 49,887 0 51,035 0 51,035 Securities available-for-sale 33,715 0 33,715 0 33,715 Restricted equity securities 2,756 0 2,756 0 2,756 Loans and loans held-for-sale Commercial & industrial 67,972 0 48 68,727 68,775 Commercial real estate 199,136 0 601 201,560 202,161 Residential real estate - 1st lien 165,243 0 941 166,858 167,799 Residential real estate - Jr lien 42,536 0 109 42,948 43,057 Consumer 7,084 0 0 7,371 7,371 MSRs(1) 1,211 0 1,302 0 1,302 Accrued interest receivable 1,819 0 1,819 0 1,819 Financial liabilities: Deposits Other deposits 470,002 0 469,323 0 469,323 Brokered deposits 34,733 0 34,745 0 34,745 Short-term borrowings 30,000 0 30,000 0 30,000 Long-term borrowings 1,550 0 1,376 0 1,376 Repurchase agreements 30,423 0 30,423 0 30,423 Capital lease obligations 483 0 483 0 483 Subordinated debentures 12,887 0 12,849 0 12,849 Accrued interest payable 73 0 73 0 73 (1) Reported fair value represents all MSRs serviced by the Company at December 31, 2016, regardless of carrying amount December 31, 2015 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 28,852 $ 28,852 $ 0 $ 0 $ 28,852 Securities held-to-maturity 43,354 0 44,143 0 44,143 Securities available-for-sale 26,470 0 26,470 0 26,470 Restricted equity securities 2,442 0 2,442 0 2,442 Loans and loans held-for-sale Commercial & industrial 64,438 0 286 65,399 65,685 Commercial real estate 175,945 0 2,552 178,502 181,054 Residential real estate - 1st lien 162,492 0 1,395 164,959 166,354 Residential real estate - Jr lien 44,270 0 119 44,939 45,058 Consumer 7,161 0 0 7,482 7,482 MSRs(1) 1,293 0 1,497 0 1,497 Accrued interest receivable 1,633 0 1,633 0 1,633 Financial liabilities: Deposits Other deposits 466,859 0 466,524 0 466,524 Brokered deposits 28,627 0 28,630 0 28,630 Short-term borrowings 10,000 0 10,000 0 10,000 Repurchase agreements 22,073 0 22,073 0 22,073 Capital lease obligations 558 0 558 0 558 Subordinated debentures 12,887 0 12,851 0 12,851 Accrued interest payable 53 0 53 0 53 (1) Reported fair value represents all MSRs serviced by the Company at December 31, 2015, regardless of carrying amount The estimated fair values of commitments to extend credit and letters of credit were immaterial at December 31, 2016 and 2015.

22. Condensed Financial Informa

22. Condensed Financial Information (Parent Company Only)	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Note 22. Condensed Financial Information (Parent Company Only)	The following condensed financial statements are for Community Bancorp. (Parent Company Only), and should be read in conjunction with the consolidated financial statements of Community Bancorp. and Subsidiary. Community Bancorp. (Parent Company Only) December 31, December 31, Condensed Balance Sheets 2016 2015 Assets Cash $ 494,086 $ 508,325 Investment in subsidiary - Community National Bank 66,769,241 63,747,517 Investment in Capital Trust 387,000 387,000 Income taxes receivable 269,335 239,394 Total assets $ 67,919,662 $ 64,882,236 Liabilities and Shareholders' Equity Liabilities Junior subordinated debentures $ 12,887,000 $ 12,887,000 Dividends payable 581,145 580,580 Total liabilities 13,468,145 13,467,580 Shareholders' Equity Preferred stock, 1,000,000 shares authorized, 25 shares issued and outstanding ($100,000 liquidation value) 2,500,000 2,500,000 Common stock - $2.50 par value; 15,000,000 shares authorized, and 5,269,053 and 5,204,517 shares issued at December 31, 2016 and 2015, respectively (including 15,022 and 15,430 shares issued February 1, 2017 and 2016, respectively) 13,172,633 13,011,293 Additional paid-in capital 30,825,658 30,089,438 Retained earnings 10,666,782 8,482,096 Accumulated other comprehensive loss (90,779 ) (45,394 ) Less: treasury stock, at cost; 210,101 shares at December 31, 2016 and 2015 (2,622,777 ) (2,622,777 ) Total shareholders' equity 54,451,517 51,414,656 Total liabilities and shareholders' equity $ 67,919,662 $ 64,882,236 The investment in the subsidiary bank is carried under the equity method of accounting. The investment and cash, which is on deposit with the Bank, have been eliminated in consolidation. Community Bancorp. (Parent Company Only) Years Ended December 31, Condensed Statements of Income 2016 2015 Income Bank subsidiary distributions $ 2,940,000 $ 2,842,000 Dividends on Capital Trust 13,818 12,295 Total income 2,953,818 2,854,295 Expense Interest on junior subordinated debentures 460,142 409,432 Administrative and other 345,842 306,962 Total expense 805,984 716,394 Income before applicable income tax benefit and equity in undistributed net income of subsidiary 2,147,834 2,137,901 Income tax benefit 269,335 239,394 Income before equity in undistributed net income of subsidiary 2,417,169 2,377,295 Equity in undistributed net income of subsidiary 3,067,109 2,448,296 Net income $ 5,484,278 $ 4,825,591 Community Bancorp. (Parent Company Only) Years Ended December 31, Condensed Statements of Cash Flows 2016 2015 Cash Flows from Operating Activities Net income $ 5,484,278 $ 4,825,591 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed net income of subsidiary (3,067,109 ) (2,448,296 ) Increase in income taxes receivable (29,941 ) (5,443 ) Net cash provided by operating activities 2,387,228 2,371,852 Cash Flows from Financing Activities Dividends paid on preferred stock (87,500 ) (81,250 ) Dividends paid on common stock (2,313,967 ) (2,262,089 ) Net cash used in financing activities (2,401,467 ) (2,343,339 ) Net (decrease) increase in cash (14,239 ) 28,513 Cash Beginning 508,325 479,812 Ending $ 494,086 $ 508,325 Cash Received for Income Taxes $ 239,394 $ 233,952 Cash Paid for Interest $ 460,142 $ 409,432 Dividends paid: Dividends declared $ 3,212,092 $ 3,172,179 Increase in dividends payable attributable to dividends declared (565 ) (24,847 ) Dividends reinvested (897,560 ) (885,243 ) $ 2,313,967 $ 2,262,089

23. Quarterly Financial Data (U

23. Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Note 23. Quarterly Financial Data (Unaudited)	A summary of financial data for the four quarters of 2016 and 2015 is presented below: Quarters in 2016 ended March 31, June 30, Sept. 30, Dec. 31, Interest income $ 5,818,254 $ 5,963,378 $ 6,254,098 $ 6,212,384 Interest expense 663,262 676,995 691,743 667,299 Provision for loan losses 100,000 150,000 150,000 100,000 Non-interest income 1,237,851 1,318,699 1,483,520 1,461,829 Non-interest expense 4,682,291 4,675,180 4,790,503 4,994,550 Net income 1,169,494 1,295,199 1,515,900 1,503,685 Earnings per common share 0.23 0.25 0.30 0.29 Quarters in 2015 ended March 31, June 30, Sept. 30, Dec. 31, Interest income $ 5,866,800 $ 5,751,184 $ 5,939,735 $ 5,848,970 Interest expense 727,514 672,304 632,470 613,362 Provision for loan losses 150,000 150,000 75,000 135,000 Non-interest income 1,212,787 1,304,481 1,299,995 1,332,892 Non-interest expense 4,696,729 4,779,840 4,531,874 4,802,530 Net income 1,109,841 1,077,704 1,439,822 1,198,224 Earnings per common share 0.22 0.21 0.29 0.24

24. Other Income and Other Expe

24. Other Income and Other Expenses	12 Months Ended
	Dec. 31, 2016
Other Income and Expenses [Abstract]
Note 24. Other Income and Other Expenses	The components of other income and other expenses which are in excess of one percent of total revenues in either of the two years disclosed are as follows: 2016 2015 Income Income from investment in CFSG Partners $ 429,008 $ 361,044 Expenses Outsourcing expense $ 509,345 $ 516,197 Service contracts - administration 389,971 330,563 Marketing 380,753 307,841 State deposit tax 568,549 562,271 ATM fees 382,227 372,609 Telephone 318,059 312,043 FDIC insurance 306,249 365,804

25. Subsequent Events

25. Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Note 25. Subsequent Events	Declaration of Cash Dividend On December 14, 2016, the Company declared a cash dividend of $0.16 per share payable February 1, 2017 to shareholders of record as of January 15, 2017. On March 8, 2017, the Company declared a cash dividend of $0.17 per share payable May 1, 2017 to shareholders of record as of April 15, 2017. These dividends have been recorded as of each declaration date, including shares issuable under the DRIP. For purposes of accrual or disclosure in these financial statements, the Company has evaluated subsequent events through the date of issuance of these financial statements.

1. Significant Accounting Pol33

1. Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of presentation and consolidation	The consolidated financial statements include the accounts of Community Bancorp. and its wholly-owned subsidiary, Community National Bank (Bank). All significant intercompany accounts and transactions have been eliminated. The Company is considered a “smaller reporting company” under applicable disclosure rules of the Securities and Exchange Commission and accordingly, has elected to provide its audited statements of income, comprehensive income, cash flows and changes in shareholders’ equity for a two year, rather than a three year, period. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810, “Consolidation”, in part, addresses limited purpose trusts formed to issue trust preferred securities. It also establishes the criteria used to identify variable interest entities (VIE) and to determine whether or not to consolidate a VIE. In general, ASC Topic 810 provides that the enterprise with the controlling financial interest, known as the primary beneficiary, consolidates the VIE. In 2007, the Company formed CMTV Statutory Trust I for the purposes of issuing trust preferred securities to unaffiliated parties and investing the proceeds from the issuance thereof and the common securities of the trust in junior subordinated debentures issued by the Company. The Company is not the primary beneficiary of CMTV Statutory Trust I; accordingly, the trust is not consolidated with the Company for financial reporting purposes. CMTV Statutory Trust I is considered an affiliate of the Company (see Note 10). In December 2011, the Company formed a limited liability company (LLC) to facilitate its purchase of federal New Markets Tax Credits (NMTC) under an investment structure designed by a local community development entity. Management has evaluated the Company’s interest in the LLC under the ASC guidance relating to VIEs in light of the overall structure and purpose of the NMTC financing transaction and has concluded that the LLC should not be consolidated in the Company’s financial statements for financial reporting purposes, as the Company is not the primary beneficiary of the NMTC structure, does not exercise control within the overall structure and is not obligated to absorb a majority of any losses of the NMTC structure (see Note 7).
Nature of operations	The Company provides a variety of deposit and lending services to individuals, municipalities, and business customers through its branches, ATMs and telephone and internet banking capabilities in northern and central Vermont, which is primarily a small business and agricultural area. The Company's primary deposit products are checking and savings accounts and certificates of deposit. Its primary lending products are commercial, real estate, municipal and consumer loans.
Concentration of risk	The Company's operations are affected by various risk factors, including interest rate risk, credit risk, and risk from geographic concentration of its deposit taking and lending activities. Management attempts to manage interest rate risk through various asset/liability management techniques designed to match maturities and repricing of assets and liabilities. Loan policies and administration are designed to provide assurance that loans will only be granted to creditworthy borrowers, although credit losses are expected to occur because of subjective factors and factors beyond the control of the Company. While the Company has a diversified loan portfolio by loan type, most of its lending activities are conducted within the geographic area where its banking offices are located. As a result, the Company and its borrowers may be especially vulnerable to the consequences of changes in the local economy in northern and central Vermont. In addition, a substantial portion of the Company's loans are secured by real estate, which is susceptible to a decline in value, especially during times of adverse economic conditions.
Use of estimates	The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions involve inherent uncertainties. Accordingly, actual results could differ from those estimates and those differences could be material. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses (ALL) and the valuation of OREO. In connection with evaluating loans for impairment or assigning the carrying value of OREO, management generally obtains independent evaluations or appraisals for significant properties. While the ALL and the carrying value of OREO are determined using management's best estimate of probable loan and OREO losses, respectively, as of the balance sheet date, the ultimate collectibility of a substantial portion of the Company's loan portfolio and the recovery of a substantial portion of the fair value of OREO are susceptible to uncertainties and changes in a number of factors, especially local real estate market conditions. The amount of the change that is reasonably possible cannot be estimated. While management uses available information to recognize losses on loans and OREO, future additions to the allowance or write-downs of OREO may be necessary based on changes in local economic conditions or other relevant factors. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for losses on loans and the carrying value of OREO. Such agencies may require the Company to recognize additions to the allowance or write-downs of OREO based on their judgment about information available to them at the time of their examination. Mortgage servicing rights (MRSs) associated with loans originated and sold in the secondary market, where servicing is retained, are capitalized and included in other assets in the consolidated balance sheets. MSRs are amortized against non-interest income in proportion to, and over the period of, estimated future net servicing income of the underlying loans. The value of capitalized servicing rights represents the present estimated value of the future servicing fees arising from the right to service loans for third parties. The carrying value of the MSRs is periodically reviewed for impairment based on a determination of estimated fair value as compared to amortized cost, and impairment, if any, is recognized through a valuation allowance and is recorded as a write down. Critical accounting policies for MSRs relate to the initial valuation and subsequent impairment tests. The methodology used to determine the valuation of MSRs requires the development and use of estimates, including anticipated principal amortization and prepayments. Events that may significantly affect the estimates used are changes in interest rates and the payment performance of the underlying loans. Management uses a third party consultant to assist in analyzing the fair value of the Company’s MSRs. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to various factors, including the length of time and the extent to which the fair value has been less than cost; the nature of the issuer and its financial condition and near-term prospects; and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. The evaluation of these factors is a subjective process and involves estimates and assumptions about matters that are inherently uncertain. Should actual factors and conditions differ materially from those used by management, the actual realization of gains or losses on investment securities could differ materially from the amounts recorded in the financial statements. Accounting for a business combination that was completed prior to 2009 requires the application of the purchase method of accounting. Under the purchase method, the Company was required to record the assets and liabilities acquired through the LyndonBank merger in 2007 at fair market value, with the excess of the purchase price over the fair value of the net assets recorded as goodwill and evaluated annually for impairment. Management uses various assumptions in evaluating goodwill for impairment. Management utilizes numerous techniques to estimate the carrying value of various other assets held by the Company, including, but not limited to, bank premises and equipment and deferred taxes. The assumptions considered in making these estimates are based on historical experience and on various other factors that are believed by management to be reasonable under the circumstances. Management acknowledges that the use of different estimates or assumptions could produce different estimates of carrying values.
Presentation of cash flows	For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), federal funds sold (generally purchased and sold for one day periods) and overnight deposits.
Investment securities	Securities the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity (HTM) and reported at amortized cost. Debt and equity securities not classified as HTM are classified as available-for-sale (AFS). Investments classified as AFS are carried at fair value, with unrealized gains and losses, net of tax and reclassification adjustments, reflected as a net amount in the shareholders’ equity section of the consolidated balance sheets and in the statements of changes in shareholders’ equity. Investment securities transactions are accounted for on a trade date basis. The specific identification method is used to determine realized gains and losses on sales of securities AFS. Premiums and discounts are recognized in interest income using the interest method over the period to maturity or call date. The Company does not hold any securities purchased for the purpose of selling in the near term and classified as trading. Declines in the fair value of individual equity securities that are deemed to be other than temporary are reflected in earnings when identified. For individual debt securities that the Company does not intend to sell and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in the fair value of the debt security related to (1) credit loss is recognized in earnings and (2) other factors is recognized in other comprehensive income or loss. Credit loss is deemed to exist if the present value of expected future cash flows using the interest rates at acquisition is less than the amortized cost basis of the debt security. For individual debt securities where the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost, the other-than-temporary impairment is recognized in earnings equal to the entire difference between the security’s cost basis and its fair value at the balance sheet date.
Other investments	In December 2011, the Company made an equity investment in a NMTC financing structure (see Note 7). The Company’s investment in the NMTC is amortized using the effective yield method. From time to time, the Company acquires partnership interests in limited partnerships for low income housing projects. New investments in limited partnerships are amortized using the proportional amortization method. All investments made before January 1, 2015 are amortized using the effective yield method. The Company has a one-third ownership interest in Community Financial Services Group, LLC (CFSG), a non-depository trust company (see Note 7). The Company's investment in CFSG is accounted for under the equity method of accounting.
Restricted equity securities	Restricted equity securities comprise Federal Reserve Bank stock and Federal Home Loan Bank stock. These securities are carried at cost. As a member of the Federal Reserve Bank of Boston (FRBB), the Company is required to invest in FRBB stock in an amount equal to 6% of the Bank's capital stock and surplus. As a member of the Federal Home Loan Bank of Boston (FHLBB), the Company is required to invest in $100 par value stock of the FHLBB in an amount that approximates 1% of unpaid principal balances on qualifying loans, plus an additional amount to satisfy an activity based requirement. The stock is nonmarketable and redeemable at par value, subject to the FHLBB’s right to temporarily suspend such redemptions. Members are subject to capital calls in some circumstances to ensure compliance with the FHLBB’s capital plan.
Loans held-for-sale	Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.
Loans	Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance, adjusted for any charge-offs, the ALL, loan premiums or discounts for acquired loans and any unearned fees or costs on originated loans. Loan interest income is accrued daily on the outstanding balances. For all loan segments, the accrual of interest is discontinued when a loan is specifically determined to be impaired or when the loan is delinquent 90 days and management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Any unpaid interest previously accrued on those loans is reversed from income. Interest income is generally not recognized on specific impaired loans unless the likelihood of further loss is considered by management to be remote. Interest payments received on impaired loans are generally applied as a reduction of the loan principal balance. Loans are returned to accrual status when principal and interest payments are brought current and the customer has demonstrated the intent and ability to make future payments on a timely basis. Loans are written down or charged off when collection of principal is considered doubtful. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount is amortized as an adjustment of the related loan's yield. The Company generally amortizes these amounts over the contractual life of the loans. Loan premiums and discounts on loans acquired in the merger with LyndonBank are amortized as an adjustment to yield over the life of the loans. Allowance for loan losses The ALL is established through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. Unsecured loans, primarily consumer loans, are charged off when they become uncollectible and no later than 120 days past due. Unsecured loans to customers who subsequently file bankruptcy are charged off within 30 days of receipt of the notification of filing or by the end of the month in which the loans become 120 days past due, whichever occurs first. For secured loans, both residential and commercial, the potential loss on impaired loans is carried as a loan loss reserve specific allocation; the loss portion is charged off when collection of the full loan appears unlikely. The unsecured portion of a real estate loan is that portion of the loan exceeding the "fair value" of the collateral less the estimated cost to sell. Value of the collateral is determined in accordance with the Company’s appraisal policy. The unsecured portion of an impaired real estate secured loan is charged off by the end of the month in which the loan becomes 180 days past due. As described below, the allowance consists of general, specific and unallocated components. However, the entire allowance is available to absorb losses in the loan portfolio, regardless of specific, general and unallocated components considered in determining the amount of the allowance. General component The general component of the ALL is based on historical loss experience, adjusted for qualitative factors and stratified by the following loan segments: commercial and industrial, commercial real estate, residential real estate first (1st) lien, residential real estate junior (Jr) lien and consumer loans. The Company does not disaggregate its portfolio segments further into classes. Loss ratios are calculated by loan segment for one year, two year, three year, four year and five year look back periods. The highest loss ratio among these look-back periods is then applied against the respective segment. Management uses an average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels of and trends in delinquencies and non-performing loans, levels of and trends in loan risk groups, trends in volumes and terms of loans, effects of any changes in loan related policies, experience, ability and the depth of management, documentation and credit data exception levels, national and local economic trends, external factors such as competition and regulation and lastly, concentrations of credit risk in a variety of areas, including portfolio product mix, the level of loans to individual borrowers and their related interests, loans to industry segments, and the geographic distribution of commercial real estate loans. This evaluation is inherently subjective as it requires estimates that are susceptible to revision as more information becomes available. The reserve methodology was modified during the quarter ended June 30, 2015 to eliminate using the higher of the 1999-2001 losses or current losses, by eliminating the use of the 1999-2001 periods. The 1999-2001 information had become dated and the Bank’s credit portfolio management had evolved since that period. The revised methodology now considers the highest annual loss rates for the most recent one to five year look back periods for each segment of the portfolio. This change in methodology resulted in a reduction to required reserves of $529,234 at June 30, 2015. However, that reduction was partially offset by adjustments made to the commercial & industrial and commercial real estate qualitative factors for the impact of the change in methodology, principally in the areas of loan growth, loan policy, and delinquency factors. As a result, the commercial & industrial and commercial real estate factors were each increased a total of 10 basis points, amounting to increases of $171,000 and $70,000, respectively at June 30, 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. The Company has policies, procedures and internal controls that management believes are commensurate with the risk profile of each of these segments. Major risk characteristics relevant to each portfolio segment are as follows: Commercial & Industrial – Commercial Real Estate – Residential Real Estate - 1st Lien – Residential Real Estate – Jr Lien – Consumer – Specific component The specific component of the ALL relates to loans that are impaired. Impaired loans are loan(s) to a borrower that in the aggregate are greater than $100,000 and that are in non-accrual status or are troubled debt restructurings (TDR) regardless of amount. A specific allowance is established for an impaired loan when its estimated impaired basis is less than the carrying value of the loan. For all loan segments, except consumer loans, a loan is considered impaired when, based on current information and events, in management’s estimation it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant or temporary payment delays and payment shortfalls generally are not classified as impaired. Management evaluates the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length and frequency of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis, by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Impaired loans also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that would otherwise not be granted. TDRs may include the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan’s terms, or a combination of the two. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment evaluation, unless such loans are subject to a restructuring agreement. Unallocated component An unallocated component of the ALL is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component reflects management’s estimate of the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.
Bank premises and equipment	Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. The cost of assets sold or otherwise disposed of, and the related accumulated depreciation, are eliminated from the accounts and the resulting gains or losses are reflected in the consolidated statements of income. Maintenance and repairs are charged to current expense as incurred and the cost of major renewals and betterments is capitalized.
Other real estate owned	Real estate properties acquired through or in lieu of loan foreclosure or properties no longer used for bank operations are initially recorded at fair value less estimated selling cost at the date of acquisition, foreclosure or transfer. Fair value is determined, as appropriate, either by obtaining a current appraisal or evaluation prepared by an independent, qualified appraiser, by obtaining a broker’s market value analysis, and finally, if the Company has limited exposure and limited risk of loss, by the opinion of management as supported by an inspection of the property and its most recent tax valuation. During periods of declining market values, the Company will generally obtain a new appraisal or evaluation. Any write-down based on the asset's fair value at the date of acquisition or institution of foreclosure is charged to the ALL. After acquisition through or in lieu of foreclosure, these assets are carried at the lower of their new cost basis or fair value. Costs of significant property improvements are capitalized, whereas costs relating to holding the property are expensed as incurred. Appraisals by an independent, qualified appraiser are performed periodically on properties that management deems significant, or evaluations may be performed by management or a qualified third party on properties in the portfolio that are deemed less significant or less vulnerable to market conditions. Subsequent write-downs are recorded as a charge to other expense. Gains or losses on the sale of such properties are included in income when the properties are sold.
Intangible assets	Intangible assets include the excess of the purchase price over the fair value of net assets acquired (goodwill) in the 2007 acquisition of LyndonBank, as well as a core deposit intangible related to the deposits acquired from LyndonBank (see Note 6). The core deposit intangible is amortized on an accelerated basis over 10 years to approximate the pattern of economic benefit to the Company. The Company evaluates the valuation and amortization of the core deposit intangible asset if events occur that could result in possible impairment. Goodwill is reviewed for impairment annually, or more frequently as events or circumstances warrant.
Income taxes	The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting bases and the tax bases of the Company's assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. Adjustments to the Company's deferred tax assets are recognized as deferred income tax expense or benefit based on management's judgments relating to the realizability of such asset.
Mortgage servicing	Servicing assets are recognized as separate assets when rights are acquired through purchase or retained upon the sale of loans. Capitalized servicing rights are reported in other assets and initially recorded at fair value, and are amortized against non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. Servicing rights are periodically evaluated for impairment, based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying the rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance and is recorded as amortization of other assets, to the extent that estimated fair value is less than the capitalized amount at the valuation date. Subsequent improvement, if any, in the estimated fair value of impaired MSRs is reflected in a positive valuation adjustment and is recognized in other income up to (but not in excess of) the amount of the prior impairment.
Pension costs	Pension costs are charged to salaries and employee benefits expense and accrued over the active service period.
Advertising costs	The Company expenses advertising costs as incurred.
Comprehensive income	US GAAP generally requires recognized revenue, expenses, gains and losses to be included in net income. Certain changes in assets and liabilities, such as the after-tax effect of unrealized gains and losses on available-for-sale securities, are not reflected in the consolidated statement of income, but the cumulative effect of such items from period-to-period is reflected as a separate component of the shareholders’ equity section of the consolidated balance sheet (accumulated other comprehensive income or loss). Other comprehensive income or loss, along with net income, comprises the Company's total comprehensive income.
Preferred stock	The Company has outstanding 25 shares of fixed-to-floating rate non-cumulative perpetual preferred stock, without par value and with a liquidation preference of $100,000 per share, issued in December 2007. Under the terms of the preferred stock, the Company pays non-cumulative cash dividends quarterly, when, as and if declared by the Board of Directors. Dividends are payable at a variable dividend rate equal to the Wall Street Journal Prime Rate in effect on the first business day of each quarterly dividend period. A variable rate of 3.25% and 3.50% was in effect during 2015 and 2016, respectively. The variable rate then increased by 25 basis points for the dividend payment due in the first quarter of 2017.
Earnings per common share	Earnings per common share amounts are computed based on the weighted average number of shares of common stock issued during the period, including Dividend Reinvestment Plan (DRIP) shares issuable upon reinvestment of dividends (retroactively adjusted for stock splits and stock dividends, if any) and reduced for shares held in treasury. The following table illustrates the calculation of earnings per common share for the periods presented, as adjusted for the cash dividend declared on the preferred stock: Years Ended December 31, 2016 2015 Net income, as reported $ 5,484,278 $ 4,825,591 Less: dividends to preferred shareholders 87,500 81,250 Net income available to common shareholders $ 5,396,778 $ 4,744,341 Weighted average number of common shares used in calculating earnings per share 5,024,270 4,961,972 Earnings per common share $ 1.07 $ 0.96
Off-balance-sheet financial instruments	In the ordinary course of business, the Company is a party to off-balance-sheet financial instruments consisting of commitments to extend credit, commercial and municipal letters of credit, standby letters of credit, and risk-sharing commitments on residential mortgage loans sold through the FHLBB’s Mortgage Partnership Finance (MPF) program. Such financial instruments are recorded in the consolidated financial statements when they are funded.
Transfers of financial assets	Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Impact of recently issued accounting standards	In January 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments A modified version of these requirements also applies to debt securities classified as available for sale, which will require that credit losses on those securities be recorded through an allowance for credit losses rather than a write-down. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company is evaluating the impact In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment The Company has goodwill from its acquisition of LyndonBank in 2007 and performs an impairment test annually or more frequently if circumstances warrant (see Note 6). The Company is currently evaluating the impact of the adoption of the ASU on its consolidated financial statements, but does not anticipate any material impact at this time.

1. Significant Accounting Pol34

1. Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Schedule Of Earnings Per Share	Years Ended December 31, 2016 2015 Net income, as reported $ 5,484,278 $ 4,825,591 Less: dividends to preferred shareholders 87,500 81,250 Net income available to common shareholders $ 5,396,778 $ 4,744,341 Weighted average number of common shares used in calculating earnings per share 5,024,270 4,961,972 Earnings per common share $ 1.07 $ 0.96

2. Investment Securities (Table

2. Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Investment Securities
Schedule Of Available For Sale Securities	Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value December 31, 2016 U.S. Government sponsored enterprise (GSE) debt securities $ 17,365,805 $ 24,854 $ 73,331 $ 17,317,328 Agency mortgage-backed securities (Agency MBS) 13,265,790 3,896 115,458 13,154,228 Other investments 3,221,000 24,947 2,452 3,243,495 $ 33,852,595 $ 53,697 $ 191,241 $ 33,715,051 Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value December 31, 2015 U.S. GSE debt securities $ 12,832,059 $ 22,523 $ 22,139 $ 12,832,443 Agency MBS 10,734,121 0 69,637 10,664,484 Other investments 2,973,000 5,046 4,573 2,973,473 $ 26,539,180 $ 27,569 $ 96,349 $ 26,470,400
Schedule Of Held to Maturity Securities	Gross Gross Amortized Unrealized Unrealized Fair Securities HTM Cost Gains Losses Value* December 31, 2016 States and political subdivisions $ 49,886,631 $ 1,148,369 $ 0 $ 51,035,000 December 31, 2015 States and political subdivisions $ 43,354,419 $ 788,581 $ 0 $ 44,143,000
Schedule of Maturities of Debt Securities Available for Sale	Amortized Fair Cost Value Due in one year or less $ 2,006,027 $ 2,010,287 Due from one to five years 17,335,778 17,329,503 Due from five to ten years 1,245,000 1,221,033 Mortgage-backed securities 13,265,790 13,154,228 $ 33,852,595 $ 33,715,051
Schedule Of Maturities of Debt Securities Held to Maturity	Amortized Fair Cost Value* Due in one year or less $ 25,368,725 $ 25,369,000 Due from one to five years 4,030,900 4,318,000 Due from five to ten years 4,013,242 4,300,000 Due after ten years 16,473,764 17,048,000 $ 49,886,631 $ 51,035,000
Schedule Of Unrealized Loss	Less than 12 months Number of Fair Unrealized Debt Securities Value Loss December 31, 2016 U.S. GSE debt securities 4 $ 5,176,669 $ 73,331 Agency MBS 15 10,704,717 115,458 Other investments 2 493,548 2,452 21 $ 16,374,934 $ 191,241 December 31, 2015 U.S. GSE debt securities 6 $ 6,243,373 $ 22,139 Agency MBS 12 10,664,484 69,637 Other investments 6 1,483,427 4,573 24 $ 18,391,284 $ 96,349

3. Loans, Allowance for Loan 36

3. Loans, Allowance for Loan Losses and Credit Quality (Tables)	12 Months Ended
	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Composition of net loans	2016 2015 Commercial & industrial $ 68,730,573 $ 65,191,124 Commercial real estate 201,728,280 178,206,542 Residential real estate - 1st lien 166,691,962 162,760,273 Residential real estate - Junior (Jr) lien 42,927,335 44,720,266 Consumer 7,171,076 7,241,224 Gross Loans 487,249,226 458,119,429 Deduct (add): Allowance for loan losses 5,278,445 5,011,878 Deferred net loan costs (310,130 ) (316,491 ) Net Loans $ 482,280,911 $ 453,424,042
Past due loans by segment	90 Days or 90 Days Total Non-Accrual More December 31, 2016 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 328,684 $ 26,042 $ 354,726 $ 68,375,847 $ 68,730,573 $ 143,128 $ 26,042 Commercial real estate 824,836 222,738 1,047,574 200,680,706 201,728,280 765,584 0 Residential real estate - 1st lien 4,881,496 1,723,688 6,605,184 160,086,778 166,691,962 1,227,220 1,068,083 - Jr lien 984,849 116,849 1,101,698 41,825,637 42,927,335 338,602 27,905 Consumer 53,972 2,176 56,148 7,114,928 7,171,076 0 2,176 Total $ 7,073,837 $ 2,091,493 $ 9,165,330 $ 478,083,896 $ 487,249,226 $ 2,474,534 $ 1,124,206 90 Days or 90 Days Total Non-Accrual More December 31, 2015 30-89 Days or More Past Due Current Total Loans Loans and Accruing Commercial & industrial $ 224,997 $ 168,244 $ 393,241 $ 64,797,883 $ 65,191,124 $ 441,103 $ 13,556 Commercial real estate 888,994 560,439 1,449,433 176,757,109 178,206,542 2,400,757 45,356 Residential real estate - 1st lien 2,875,768 1,408,551 4,284,319 158,475,954 162,760,273 2,009,079 801,241 - Jr lien 521,373 63,031 584,404 44,135,862 44,720,266 386,132 63,031 Consumer 83,343 0 83,343 7,157,881 7,241,224 0 0 Total $ 4,594,475 $ 2,200,265 $ 6,794,740 $ 451,324,689 $ 458,119,429 $ 5,237,071 $ 923,184
Residential mortgage loans in process of foreclosure	Number of loans Current Balance December 31, 2016 8 $ 322,663 December 31, 2015 5 400,905
Changes in the allowance for loan losses	As of or for the year ended December 31, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Charge-offs (49,009 ) 0 (244,149 ) 0 (15,404 ) 0 (308,562 ) Recoveries 36,032 0 23,712 240 15,145 0 75,129 Provision (credit) 26,923 343,407 222,166 (51,886 ) 8,543 (49,153 ) 500,000 Ending balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 86,400 $ 6,200 $ 114,800 $ 0 $ 0 $ 207,400 Collectively 726,848 2,409,685 1,363,557 256,376 83,973 230,606 5,071,045 Total $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Loans evaluated for impairment Individually $ 48,385 $ 687,495 $ 946,809 $ 224,053 $ 0 $ 1,906,742 Collectively 68,682,188 201,040,785 165,745,153 42,703,282 7,171,076 485,342,484 Total $ 68,730,573 $ 201,728,280 $ 166,691,962 $ 42,927,335 $ 7,171,076 $ 487,249,226 As of or for the year ended December 31, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 646,719 $ 2,311,936 $ 1,270,766 $ 321,099 $ 118,819 $ 236,535 $ 4,905,874 Charge-offs (200,900 ) (14,783 ) (150,947 ) (66,104 ) (69,632 ) 0 (502,366 ) Recoveries 59,264 0 6,042 240 32,824 0 98,370 Provision (credit) 207,819 (144,475 ) 242,167 167,587 (6,322 ) 43,224 510,000 Ending balance $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 0 $ 25,100 $ 114,600 $ 0 $ 0 $ 139,700 Collectively 712,902 2,152,678 1,342,928 308,222 75,689 279,759 4,872,178 Total $ 712,902 $ 2,152,678 $ 1,368,028 $ 422,822 $ 75,689 $ 279,759 $ 5,011,878 Loans evaluated for impairment Individually $ 286,436 $ 2,551,748 $ 1,419,808 $ 234,004 $ 0 $ 4,491,996 Collectively 64,904,688 175,654,794 161,340,465 44,486,262 7,241,224 453,627,433 Total $ 65,191,124 $ 178,206,542 $ 162,760,273 $ 44,720,266 $ 7,241,224 $ 458,119,429
Impaired loans by segment	As of December 31, 2016 2016 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded Commercial real estate $ 220,257 $ 232,073 $ 86,400 $ 89,664 Residential real estate - 1st lien 271,962 275,118 6,200 350,709 Residential real estate - Jr lien 224,053 284,342 114,800 241,965 716,272 791,533 207,400 682,338 With no related allowance recorded Commercial & industrial 48,385 62,498 183,925 Commercial real estate 467,238 521,991 1,059,542 Residential real estate - 1st lien 674,847 893,741 877,237 Residential real estate - Jr lien 0 0 15,888 1,190,470 1,478,230 2,136,592 Total $ 1,906,742 $ 2,269,763 $ 207,400 $ 2,818,930 As of December 31, 2015 2015 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded Commercial & industrial $ 0 $ 0 $ 0 $ 37,359 Commercial real estate 0 0 0 40,902 Residential real estate - 1st lien 173,788 182,251 25,100 228,273 Residential real estate - Jr lien 234,004 284,227 114,600 155,207 407,792 466,478 139,700 461,741 With no related allowance recorded Commercial & industrial 286,436 366,387 446,817 Commercial real estate 2,551,748 2,776,729 2,151,713 Residential real estate - 1st lien 1,246,020 1,460,402 973,572 Residential real estate - Jr lien 0 0 113,964 4,084,204 4,603,518 3,686,066 Total $ 4,491,996 $ 5,069,996 $ 139,700 $ 4,147,807
Risk ratings	As of December 31, 2016 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 67,297,983 $ 191,755,393 $ 164,708,778 $ 42,289,062 $ 7,168,901 $ 473,220,117 Group B 512,329 2,971,364 0 169,054 0 3,652,747 Group C 920,261 7,001,523 1,983,184 469,219 2,175 10,376,362 Total $ 68,730,573 $ 201,728,280 $ 166,691,962 $ 42,927,335 $ 7,171,076 $ 487,249,226 As of December 31, 2015 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 59,764,081 $ 168,326,527 $ 158,834,849 $ 44,041,594 $ 7,241,224 $ 438,208,275 Group B 4,724,729 4,529,493 599,516 212,508 0 10,066,246 Group C 702,314 5,350,522 3,325,908 466,164 0 9,844,908 Total $ 65,191,124 $ 178,206,542 $ 162,760,273 $ 44,720,266 $ 7,241,224 $ 458,119,429
Loans modified as TDRs	Year ended December 31, 2016 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Residential real estate – 1st lien 8 $ 572,418 $ 598,030 Residential real estate - Jr lien 2 62,819 64,977 Total 10 $ 635,237 $ 663,007 Year ended December 31, 2015 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commercial & industrial 2 $ 199,134 $ 204,142 Commercial real estate 3 581,431 616,438 Residential real estate - 1st lien 12 1,229,100 1,303,228 Residential real estate - Jr lien 2 117,746 121,672 Total 19 $ 2,127,411 $ 2,245,480
TDRs payment default	Year ended December 31, 2016 Number of Recorded Contracts Investment Residential real estate - 1st lien 2 $ 93,230 Residential real estate - Jr lien 1 54,557 Total 3 $ 147,787 Year ended December 31, 2015 Number of Recorded Contracts Investment Commercial real estate 1 $ 149,514 Residential real estate - 1st lien 4 286,803 Residential real estate - Jr lien 1 69,828 Total 6 $ 506,145
Specific allowances	2016 2015 Specific Allowance $ 92,600 $ 25,100

4. Loan Servicing (Tables)

4. Loan Servicing (Tables)	12 Months Ended
	Dec. 31, 2016
Transfers and Servicing of Financial Assets [Abstract]
Schedule Of Mortgage Servicing Rights	2016 2015 Balance at beginning of year $ 1,293,079 $ 1,311,965 MSRs capitalized 176,705 230,818 MSRs amortized (266,603 ) (257,921 ) Change in valuation allowance 7,514 8,217 Balance at end of year $ 1,210,695 $ 1,293,079

5. Bank Premises and Equipment

5. Bank Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Major classes of bank premises and equipment	2016 2015 Buildings and improvements $ 11,213,737 $ 11,176,189 Land and land improvements 2,433,971 2,377,703 Furniture and equipment 9,277,592 8,752,908 Leasehold improvements 1,117,085 1,048,409 Capital lease 991,014 976,907 Other prepaid assets 125,584 514,476 25,158,983 24,846,592 Less accumulated depreciation and amortization (14,328,427 ) (13,386,385 ) $ 10,830,556 $ 11,460,207
Minimum future rental payments	2017 $ 230,563 2018 233,706 2019 206,470 2020 179,581 2021 97,800 Subsequent to 2021 330,000 $ 1,278,120
Future Minimum Lease Payments for Capital Leases	2017 $ 136,560 2018 141,460 2019 141,460 2020 110,460 2021 39,117 Total minimum lease payments 569,057 Less amount representing interest (85,896 ) Present value of net minimum lease payments $ 483,161

8. Deposits (Tables)

8. Deposits (Tables)	12 Months Ended
	Dec. 31, 2016
Maturities of Time Deposits [Abstract]
Maturity distribution of time deposits	2017 $ 65,384,502 2018 17,229,272 2019 14,568,044 2020 7,898,848 2021 11,309,263 Total time certificates of deposit $ 116,389,929

9. Borrowed Funds (Tables)

9. Borrowed Funds (Tables)	12 Months Ended
	Dec. 31, 2016
Borrowed Funds Tables
Outstanding advances	2016 2015 Long-Term Advances(1) FHLBB term advance, 0.00%, due February 26, 2021 $ 350,000 $ 0 FHLBB term advance, 0.00%, due September 22, 2023 200,000 0 FHLBB term advance, 0.00%, due November 22, 2021 1,000,000 0 1,550,000 0 Short-Term Advances FHLBB term advances, 0.77% and 0.48% fixed rate, due February 08, 2017 and February 26, 2016, respectively 10,000,000 10,000,000 FHLBB term advance 0.77% fixed rate, due February 24, 2017 10,000,000 0 FHLBB term advance 0.92% fixed rate, due June 14, 2017 10,000,000 0 30,000,000 10,000,000 Total Advances $ 31,550,000 $ 10,000,000

12. Income Taxes (Tables)

12. Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	2016 2015 Currently paid or payable $ 2,096,474 $ 1,937,004 Deferred tax benefit (172,562 ) (172,374 ) Total income tax expense $ 1,923,912 $ 1,764,630
Schedule of Effective Income Tax Rate Reconciliation	2016 2015 Computed expense at statutory rates $ 2,518,785 $ 2,240,669 Tax exempt interest and BOLI (471,900 ) (414,855 ) Disallowed interest 13,053 11,523 Partnership tax credits (857,359 ) (566,949 ) Low income housing investment amortization expense 482,756 266,280 NMTC amortization expense 117,439 106,847 Other 121,138 121,116 $ 1,923,912 $ 1,764,630
Deferred income tax benefit	2016 2015 Depreciation $ 64,758 $ (82,902 ) MSRs (28,011 ) (6,421 ) Deferred compensation (58,194 ) (26,169 ) Bad debts (90,633 ) (36,042 ) Non-accrual loan interest 0 13,731 Limited partnership amortization 7,865 56,890 Investment in CFSG Partners 13,187 20,182 Core deposit intangible (92,716 ) (92,716 ) Loan fair value (7,514 ) (9,951 ) OREO write down 6,460 (10,370 ) Other 12,236 1,394 Deferred tax benefit $ (172,562 ) $ (172,374 )
Components of the net deferred tax asset	2016 2015 Components of the deferred tax asset: Bad debts $ 1,794,672 $ 1,704,039 Deferred compensation 302,166 243,972 Contingent liability - MPF program 45,042 45,042 OREO write down 13,940 20,400 Capital lease 63,228 69,567 Unrealized loss on securities available-for-sale 46,765 23,385 Other 22,837 28,733 Total deferred tax asset $ 2,288,650 $ 2,135,138 2016 2015 Components of the deferred tax liability: Depreciation 219,304 154,546 Limited partnerships 52,109 44,244 MSRs 411,636 439,647 Investment in CFSG Partners 115,035 101,848 Core deposit intangible 92,715 185,431 Fair value adjustment on acquired loans 21,930 29,444 Total deferred tax liability 912,729 955,160 Net deferred tax asset $ 1,375,921 $ 1,179,978

15. Financial Instruments wit42

15. Financial Instruments with Off-Balance-Sheet Risk (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off balance sheet financial instruments risk	Contract or Notional Amount 2016 2015 Unused portions of home equity lines of credit $ 25,535,104 $ 25,074,972 Residential construction lines of credit 3,676,176 3,658,037 Commercial real estate and other construction lines of credit 25,951,345 15,586,595 Commercial and industrial commitments 36,227,213 46,197,882 Other commitments to extend credit 42,459,454 19,991,513 Standby letters of credit and commercial letters of credit 2,009,788 1,859,059 Recourse on sale of credit card portfolio 258,555 262,625 MPF credit enhancement obligation, net of liability recorded 748,239 1,051,601

18. Transactions with Related43

18. Transactions with Related Parties (Tables)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	2016 2015 Balance, beginning of year $ 14,017,551 $ 8,593,273 Loans - New Directors 0 7,225,328 New loans to existing Officers/Directors 11,862,375 14,587,380 Retirement/Resignation of Director 0 (1,824,495 ) Repayment* (11,758,440 ) (14,563,935 ) Balance, end of year $ 14,121,486 $ 14,017,551

20. Regulatory Capital Requir44

20. Regulatory Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2016
Regulatory Capital Requirements [Abstract]
Regulatory capital ratios	Minimum Minimum To Be Well For Capital Capitalized Under Adequacy Prompt Corrective Actual Purposes: Action Provisions(1): Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) December 31, 2016 Common equity tier 1 capital (to risk-weighted assets) Company $ 55,690 12.34 % $ 20,304 4.50 % N/A N/A Bank $ 55,120 12.23 % $ 20,274 4.50 % $ 29,285 6.50 % Tier 1 capital (to risk-weighted assets) Company $ 55,690 12.34 % $ 27,072 6.00 % N/A N/A Bank $ 55,120 12.23 % $ 27,032 6.00 % $ 36,043 8.00 % Total capital (to risk-weighted assets) Company $ 61,012 13.52 % $ 36,096 8.00 % N/A N/A Bank $ 60,443 13.42 % $ 36,043 8.00 % $ 45,054 10.00 % Tier 1 capital (to average assets) Company $ 55,690 9.17 % $ 24,305 4.00 % N/A N/A Bank $ 55,120 9.08 % $ 24,281 4.00 % $ 30,351 5.00 % December 31, 2015 Common equity tier 1 capital (to risk-weighted assets) Company $ 52,555 12.38 % $ 19,100 4.50 % N/A N/A Bank $ 52,000 12.27 % $ 19,072 4.50 % $ 27,549 6.50 % Tier 1 capital (to risk-weighted assets) Company $ 52,555 12.38 % $ 25,467 6.00 % N/A N/A Bank $ 52,000 12.27 % $ 25,430 6.00 % $ 33,906 8.00 % Total capital (to risk-weighted assets) Company $ 57,610 13.57 % $ 33,956 8.00 % N/A N/A Bank $ 57,056 13.46 % $ 33,906 8.00 % $ 42,383 10.00 % Tier 1 capital (to average assets) Company $ 52,555 9.01 % $ 23,324 4.00 % N/A N/A Bank $ 52,000 8.93 % $ 23,301 4.00 % $ 29,126 5.00 %

21. Fair Value (Tables)

21. Fair Value (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule Of Fair Value Assets On Recurring Basis	December 31, 2016 Level 2 Assets: (market approach) U.S. GSE debt securities $ 17,317,328 Agency MBS 13,154,228 Other investments 3,243,495 Total $ 33,715,051 December 31, 2015 Level 2 Assets: (market approach) U.S. GSE debt securities $ 12,832,443 Agency MBS 10,664,484 Other investments 2,973,473 $ 26,470,400
Schedule of Fair Value Assets Nonrecurring Basis	December 31, 2016 Level 2 Assets: (market approach) MSRs(1) $ 1,210,695 Impaired loans, net of related allowance 508,872 OREO 394,000 December 31, 2015 Assets: (market approach) MSRs(1) $ 1,293,079 Impaired loans, net of related allowance 268,092 OREO 262,000
Schedule Of Estimated Fair Values Of Financial Instruments	December 31, 2016 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 29,614 $ 29,614 $ 0 $ 0 $ 29,614 Securities held-to-maturity 49,887 0 51,035 0 51,035 Securities available-for-sale 33,715 0 33,715 0 33,715 Restricted equity securities 2,756 0 2,756 0 2,756 Loans and loans held-for-sale Commercial & industrial 67,972 0 48 68,727 68,775 Commercial real estate 199,136 0 601 201,560 202,161 Residential real estate - 1st lien 165,243 0 941 166,858 167,799 Residential real estate - Jr lien 42,536 0 109 42,948 43,057 Consumer 7,084 0 0 7,371 7,371 MSRs(1) 1,211 0 1,302 0 1,302 Accrued interest receivable 1,819 0 1,819 0 1,819 Financial liabilities: Deposits Other deposits 470,002 0 469,323 0 469,323 Brokered deposits 34,733 0 34,745 0 34,745 Short-term borrowings 30,000 0 30,000 0 30,000 Long-term borrowings 1,550 0 1,376 0 1,376 Repurchase agreements 30,423 0 30,423 0 30,423 Capital lease obligations 483 0 483 0 483 Subordinated debentures 12,887 0 12,849 0 12,849 Accrued interest payable 73 0 73 0 73 December 31, 2015 Fair Fair Fair Fair Carrying Value Value Value Value Amount Level 1 Level 2 Level 3 Total (Dollars in Thousands) Financial assets: Cash and cash equivalents $ 28,852 $ 28,852 $ 0 $ 0 $ 28,852 Securities held-to-maturity 43,354 0 44,143 0 44,143 Securities available-for-sale 26,470 0 26,470 0 26,470 Restricted equity securities 2,442 0 2,442 0 2,442 Loans and loans held-for-sale Commercial & industrial 64,438 0 286 65,399 65,685 Commercial real estate 175,945 0 2,552 178,502 181,054 Residential real estate - 1st lien 162,492 0 1,395 164,959 166,354 Residential real estate - Jr lien 44,270 0 119 44,939 45,058 Consumer 7,161 0 0 7,482 7,482 MSRs(1) 1,293 0 1,497 0 1,497 Accrued interest receivable 1,633 0 1,633 0 1,633 Financial liabilities: Deposits Other deposits 466,859 0 466,524 0 466,524 Brokered deposits 28,627 0 28,630 0 28,630 Short-term borrowings 10,000 0 10,000 0 10,000 Repurchase agreements 22,073 0 22,073 0 22,073 Capital lease obligations 558 0 558 0 558 Subordinated debentures 12,887 0 12,851 0 12,851 Accrued interest payable 53 0 53 0 53

22. Condensed Financial Infor46

22. Condensed Financial Information (Parent Company Only) (Tables)	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Balance Sheets	Community Bancorp. (Parent Company Only) December 31, December 31, Condensed Balance Sheets 2016 2015 Assets Cash $ 494,086 $ 508,325 Investment in subsidiary - Community National Bank 66,769,241 63,747,517 Investment in Capital Trust 387,000 387,000 Income taxes receivable 269,335 239,394 Total assets $ 67,919,662 $ 64,882,236 Liabilities and Shareholders' Equity Liabilities Junior subordinated debentures $ 12,887,000 $ 12,887,000 Dividends payable 581,145 580,580 Total liabilities 13,468,145 13,467,580 Shareholders' Equity Preferred stock, 1,000,000 shares authorized, 25 shares issued and outstanding ($100,000 liquidation value) 2,500,000 2,500,000 Common stock - $2.50 par value; 15,000,000 shares authorized, and 5,269,053 and 5,204,517 shares issued at December 31, 2016 and 2015, respectively (including 15,022 and 15,430 shares issued February 1, 2017 and 2016, respectively) 13,172,633 13,011,293 Additional paid-in capital 30,825,658 30,089,438 Retained earnings 10,666,782 8,482,096 Accumulated other comprehensive loss (90,779 ) (45,394 ) Less: treasury stock, at cost; 210,101 shares at December 31, 2016 and 2015 (2,622,777 ) (2,622,777 ) Total shareholders' equity 54,451,517 51,414,656 Total liabilities and shareholders' equity $ 67,919,662 $ 64,882,236
Condensed Statements of Income	Community Bancorp. (Parent Company Only) Years Ended December 31, Condensed Statements of Income 2016 2015 Income Bank subsidiary distributions $ 2,940,000 $ 2,842,000 Dividends on Capital Trust 13,818 12,295 Total income 2,953,818 2,854,295 Expense Interest on junior subordinated debentures 460,142 409,432 Administrative and other 345,842 306,962 Total expense 805,984 716,394 Income before applicable income tax benefit and equity in undistributed net income of subsidiary 2,147,834 2,137,901 Income tax benefit 269,335 239,394 Income before equity in undistributed net income of subsidiary 2,417,169 2,377,295 Equity in undistributed net income of subsidiary 3,067,109 2,448,296 Net income $ 5,484,278 $ 4,825,591
Condensed Statements of Cash Flows	Community Bancorp. (Parent Company Only) Years Ended December 31, Condensed Statements of Cash Flows 2016 2015 Cash Flows from Operating Activities Net income $ 5,484,278 $ 4,825,591 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed net income of subsidiary (3,067,109 ) (2,448,296 ) Increase in income taxes receivable (29,941 ) (5,443 ) Net cash provided by operating activities 2,387,228 2,371,852 Cash Flows from Financing Activities Dividends paid on preferred stock (87,500 ) (81,250 ) Dividends paid on common stock (2,313,967 ) (2,262,089 ) Net cash used in financing activities (2,401,467 ) (2,343,339 ) Net (decrease) increase in cash (14,239 ) 28,513 Cash Beginning 508,325 479,812 Ending $ 494,086 $ 508,325 Cash Received for Income Taxes $ 239,394 $ 233,952 Cash Paid for Interest $ 460,142 $ 409,432 Dividends paid: Dividends declared $ 3,212,092 $ 3,172,179 Increase in dividends payable attributable to dividends declared (565 ) (24,847 ) Dividends reinvested (897,560 ) (885,243 ) $ 2,313,967 $ 2,262,089

23. Quarterly Financial Data (T

23. Quarterly Financial Data (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	Quarters in 2016 ended March 31, June 30, Sept. 30, Dec. 31, Interest income $ 5,818,254 $ 5,963,378 $ 6,254,098 $ 6,212,384 Interest expense 663,262 676,995 691,743 667,299 Provision for loan losses 100,000 150,000 150,000 100,000 Non-interest income 1,237,851 1,318,699 1,483,520 1,461,829 Non-interest expense 4,682,291 4,675,180 4,790,503 4,994,550 Net income 1,169,494 1,295,199 1,515,900 1,503,685 Earnings per common share 0.23 0.25 0.30 0.29 Quarters in 2015 ended March 31, June 30, Sept. 30, Dec. 31, Interest income $ 5,866,800 $ 5,751,184 $ 5,939,735 $ 5,848,970 Interest expense 727,514 672,304 632,470 613,362 Provision for loan losses 150,000 150,000 75,000 135,000 Non-interest income 1,212,787 1,304,481 1,299,995 1,332,892 Non-interest expense 4,696,729 4,779,840 4,531,874 4,802,530 Net income 1,109,841 1,077,704 1,439,822 1,198,224 Earnings per common share 0.22 0.21 0.29 0.24

24. Other Income and Other Ex48

24. Other Income and Other Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Other Income and Expenses [Abstract]
Components of other income and other expenses	2016 2015 Income Income from investment in CFSG Partners $ 429,008 $ 361,044 Expenses Outsourcing expense $ 509,345 $ 516,197 Service contracts - administration 389,971 330,563 Marketing 380,753 307,841 State deposit tax 568,549 562,271 ATM fees 382,227 372,609 Telephone 318,059 312,043 FDIC insurance 306,249 365,804

1. Significant Accounting Pol49

1. Significant Accounting Policies (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net income, as reported	$ 1,503,685	$ 1,515,900	$ 1,295,199	$ 1,169,494	$ 1,198,224	$ 1,439,822	$ 1,077,704	$ 1,109,841	$ 5,484,278	$ 4,825,591
Less: dividends to preferred shareholders									87,500	81,250
Net income available to common shareholders									$ 5,396,778	$ 4,744,341
Weighted average number of common shares used in calculating earnings per share									5,024,270	4,961,972
Earnings per common share	$ 0.29	$ 0.3	$ 0.25	$ 0.23	$ 0.24	$ 0.29	$ 0.21	$ 0.22	$ 1.07	$ 0.96

2. Investment Securities (Detai

2. Investment Securities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Available for sale Securities
Amortized Cost - Available for sale Securities	$ 33,852,595	$ 26,539,180
Gross Unrealized Gains - Available for sale Securities	53,697	27,569
Gross Unrealized Losses - Available for sale Securities	191,241	96,349
Fair Value - Available for sale Securities	33,715,051	26,470,400
Held-to-Maturity Securities
Amortized Cost - Held-to-Maturity	49,886,631	43,354,419
Gross Unrealized Gains - Held-to-Maturity	1,148,369	788,581
Gross Unrealized Losses - Held-to-Maturity	0	0
Fair Value - Held-to-Maturity	51,035,000	44,143,000
U.S. GSE debt securities
Available for sale Securities
Amortized Cost - Available for sale Securities	17,365,805	12,832,059
Gross Unrealized Gains - Available for sale Securities	24,854	22,523
Gross Unrealized Losses - Available for sale Securities	73,331	22,139
Fair Value - Available for sale Securities	17,317,328	12,832,443
Agency mortgage-backed securities (Agency MBS)
Available for sale Securities
Amortized Cost - Available for sale Securities	13,265,790	10,734,121
Gross Unrealized Gains - Available for sale Securities	3,896	0
Gross Unrealized Losses - Available for sale Securities	115,458	69,637
Fair Value - Available for sale Securities	13,154,228	10,664,484
Other investments
Available for sale Securities
Amortized Cost - Available for sale Securities	3,221,000	2,973,000
Gross Unrealized Gains - Available for sale Securities	24,947	5,046
Gross Unrealized Losses - Available for sale Securities	2,452	4,573
Fair Value - Available for sale Securities	3,243,495	2,973,473
US States and Political Subdivisions Debt Securities [Member]
Held-to-Maturity Securities
Amortized Cost - Held-to-Maturity	49,886,631	43,354,419
Gross Unrealized Gains - Held-to-Maturity	1,148,369	788,581
Gross Unrealized Losses - Held-to-Maturity	0	0
Fair Value - Held-to-Maturity	$ 51,035,000	$ 44,143,000

2. Investment Securities (Det51

2. Investment Securities (Details 1)	Dec. 31, 2016USD ($)
Available for sale Securities
Amortized Cost
Due in one year or less, Amortized Cost	$ 2,006,027
Due from one to five years, Amortized Cost	17,335,778
Due from five to ten years	1,245,000
Agency MBS	13,265,790
Amortization Cost of Debt	33,852,595
Fair Value
Due in one year or less, fair value	2,010,287
Due from one to five years, fair value	17,329,503
Due from five to ten years	1,221,033
Agency MBS	13,154,228
Fair value of debt	33,715,051
Held to maturity Securities
Amortized Cost
Due in one year or less, Amortized Cost	25,368,725
Due from one to five years, Amortized Cost	4,030,900
Due from five to ten years	4,013,242
Due after ten years, Amortized Cost	16,473,764
Amortization Cost of Debt	49,886,631
Fair Value
Due in one year or less, fair value	25,369,000	[1]
Due from one to five years, fair value	4,318,000	[1]
Due from five to ten years	4,300,000	[1]
Due after ten years, fair value	17,048,000	[1]
Fair value of debt	$ 51,035,000	[1]
[1]	Method used to determine fair value rounds values to nearest thousand.

2. Investment Securities (Det52

2. Investment Securities (Details 2)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Number of securities	21	24
Fair Value Less than 12 months	$ 16,374,934	$ 18,391,284
Unrealized Loss Less than 12 months	$ 191,241	$ 96,349
U.S. GSE debt securities
Number of securities	4	6
Fair Value Less than 12 months	$ 5,176,669	$ 6,243,373
Unrealized Loss Less than 12 months	$ 73,331	$ 22,139
Agency MBS
Number of securities	15	12
Fair Value Less than 12 months	$ 10,704,717	$ 10,664,484
Unrealized Loss Less than 12 months	$ 115,458	$ 69,637
Other investments
Number of securities	2	6
Fair Value Less than 12 months	$ 493,548	$ 1,483,427
Unrealized Loss Less than 12 months	$ 2,452	$ 4,573

2. Investment Securities (Det53

2. Investment Securities (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2016
Investment Securities Details Narrative
Book value of available for sale securities, pledged as collateral for repurchase agreements	$ 23,566,180	$ 33,604,595
Fair value of available for sale securities, pledged as collateral for repurchase agreements	23,496,927	33,469,254
Proceeds from sales of securities	7,019,450
Gains from sales of securities	22,802
Loss from sales of securities	5,300
Investment in FHLBB stock	1,853,500	2,167,700
Investment in FRBB stock	$ 588,150	$ 588,150

3. Loans, Allowance for Loan 54

3. Loans, Allowance for Loan Losses and Credit Quality (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loans and Leases Receivable Disclosure [Abstract]
Commercial & industrial	$ 68,730,573	$ 65,191,124
Commercial real estate	201,728,280	178,206,542
Residential real estate - 1st lien	166,691,962	162,760,273
Residential real estate - Junior (Jr) lien	42,927,335	44,720,266
Consumer	7,171,076	7,241,224
Gross Loans	487,249,226	458,119,429
Allowance for loan losses	5,278,445	5,011,878	$ 4,905,874
Deferred net loan costs	(310,130)	(316,491)
Net loans	$ 482,280,911	$ 453,424,042

3. Loans, Allowance for Loan 55

3. Loans, Allowance for Loan Losses and Credit Quality (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
30-89 Days	$ 7,073,837	$ 4,594,475
90 Days or more	2,091,493	2,200,265
Total Past Due	9,165,330	6,794,740
Current	478,083,896	451,324,689
Total Loans	487,249,226	458,119,429
Non-Accrual Loans	2,474,534	5,237,071
Over 90 Days and Accruing	1,124,206	923,184
Commercial and industrial
30-89 Days	328,684	224,997
90 Days or more	26,042	168,244
Total Past Due	354,726	393,241
Current	68,375,847	64,797,883
Total Loans	68,730,573	65,191,124
Non-Accrual Loans	143,128	441,103
Over 90 Days and Accruing	26,042	13,556
Commercial Real Estate
30-89 Days	824,836	888,994
90 Days or more	222,738	560,439
Total Past Due	1,047,574	1,449,433
Current	200,680,706	176,757,109
Total Loans	201,728,280	178,206,542
Non-Accrual Loans	765,584	2,400,757
Over 90 Days and Accruing	0	45,356
Residential real estate - 1st lien
30-89 Days	4,881,496	2,875,768
90 Days or more	1,723,688	1,408,551
Total Past Due	6,605,184	4,284,319
Current	160,086,778	158,475,954
Total Loans	166,691,962	162,760,273
Non-Accrual Loans	1,227,220	2,009,079
Over 90 Days and Accruing	1,068,083	801,241
Residential real estate - Jr lien
30-89 Days	984,849	521,373
90 Days or more	116,849	63,031
Total Past Due	1,101,698	584,404
Current	41,825,637	44,135,862
Total Loans	42,927,335	44,720,266
Non-Accrual Loans	338,602	386,132
Over 90 Days and Accruing	27,905	63,031
Consumer
30-89 Days	53,972	83,343
90 Days or more	2,176	0
Total Past Due	56,148	83,343
Current	7,114,928	7,157,881
Total Loans	7,171,076	7,241,224
Non-Accrual Loans	0	0
Over 90 Days and Accruing	$ 2,176	$ 0

3. Loans, Allowance for Loan 56

3. Loans, Allowance for Loan Losses and Credit Quality (Details 2)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Loans Allowance For Loan Losses And Credit Quality Details 2
Residential mortgage loans in process of foreclosure, number of loans	8	5
Residential mortgage loans in process of foreclosure, current balance	$ 322,663	$ 400,905

3. Loans, Allowance for Loan 57

3. Loans, Allowance for Loan Losses and Credit Quality (Details 3) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Allowance for loan losses, Beginning balance				$ 5,011,878				$ 4,905,874	$ 5,011,878	$ 4,905,874
Charge-offs									(308,562)	(502,366)
Recoveries									75,129	98,370
Provision (credit)	$ 100,000	$ 150,000	$ 150,000	100,000	$ 135,000	$ 75,000	$ 150,000	150,000	500,000	510,000
Allowance for loan losses, Ending balance	5,278,445				5,011,878				5,278,445	5,011,878
Allowance for loan losses evaluated for impairment, Individually											$ 207,400	$ 139,700
Allowance for loan losses evaluated for impairment, Collectively											5,071,045	4,872,178
Allowance for loan losses	5,278,445			5,011,878	5,011,878			4,905,874	5,278,445	5,011,878	5,278,445	5,011,878
Loans evaluated for impairment, Individually											1,906,742	4,491,996
Loans evaluated for impairment, Collectively											485,342,484	453,627,433
Total Loans											487,249,226	458,119,429
Commercial and industrial
Allowance for loan losses, Beginning balance				712,902				646,719	712,902	646,719
Charge-offs									(49,009)	(200,900)
Recoveries									36,032	59,264
Provision (credit)									26,923	207,819
Allowance for loan losses, Ending balance	726,848				712,902				726,848	712,902
Allowance for loan losses evaluated for impairment, Individually											0	0
Allowance for loan losses evaluated for impairment, Collectively											726,848	712,902
Allowance for loan losses	726,848			712,902	712,902			646,719	726,848	646,719	726,848	712,902
Loans evaluated for impairment, Individually											48,385	286,436
Loans evaluated for impairment, Collectively											68,682,188	64,904,688
Total Loans											68,730,573	65,191,124
Commercial Real Estate
Allowance for loan losses, Beginning balance				2,152,678				2,311,936	2,152,678	2,311,936
Charge-offs									0	(14,783)
Recoveries									0	0
Provision (credit)									343,407	(144,475)
Allowance for loan losses, Ending balance	2,496,085				2,152,678				2,496,085	2,152,678
Allowance for loan losses evaluated for impairment, Individually											86,400	0
Allowance for loan losses evaluated for impairment, Collectively											2,409,685	2,152,678
Allowance for loan losses	2,496,085			2,152,678	2,152,678			2,311,936	2,496,085	2,311,936	2,496,085	2,152,678
Loans evaluated for impairment, Individually											687,495	2,551,748
Loans evaluated for impairment, Collectively											201,040,785	175,654,794
Total Loans											201,728,280	178,206,542
Residential Real Estate 1st Lien
Allowance for loan losses, Beginning balance				1,368,028				1,270,766	1,368,028	1,270,766
Charge-offs									(244,149)	(150,947)
Recoveries									23,712	6,042
Provision (credit)									222,166	242,167
Allowance for loan losses, Ending balance	1,369,757				1,368,028				1,369,757	1,368,028
Allowance for loan losses evaluated for impairment, Individually											6,200	25,100
Allowance for loan losses evaluated for impairment, Collectively											1,363,557	1,342,928
Allowance for loan losses	1,369,757			1,368,028	1,368,028			1,270,766	1,369,757	1,270,766	1,369,757	1,368,028
Loans evaluated for impairment, Individually											946,809	1,419,808
Loans evaluated for impairment, Collectively											165,745,153	161,340,465
Total Loans											166,691,962	162,760,273
Residential Real Estate Jr Lien
Allowance for loan losses, Beginning balance				422,822				321,099	422,822	321,099
Charge-offs									0	(66,104)
Recoveries									240	240
Provision (credit)									(51,886)	167,587
Allowance for loan losses, Ending balance	371,176				422,822				371,176	422,822
Allowance for loan losses evaluated for impairment, Individually											114,800	114,600
Allowance for loan losses evaluated for impairment, Collectively											256,376	308,222
Allowance for loan losses	371,176			422,822	422,822			321,099	371,176	321,099	371,176	422,822
Loans evaluated for impairment, Individually											224,053	234,004
Loans evaluated for impairment, Collectively											42,703,282	44,486,262
Total Loans											42,927,335	44,720,266
Consumer
Allowance for loan losses, Beginning balance				75,689				118,819	75,689	118,819
Charge-offs									(15,404)	(69,632)
Recoveries									15,145	32,824
Provision (credit)									8,543	(6,322)
Allowance for loan losses, Ending balance	83,973				75,689				83,973	75,689
Allowance for loan losses evaluated for impairment, Individually											0	0
Allowance for loan losses evaluated for impairment, Collectively											83,973	75,689
Allowance for loan losses	83,973			75,689	75,689			118,819	83,973	118,819	83,973	75,689
Loans evaluated for impairment, Individually											0	0
Loans evaluated for impairment, Collectively											7,171,076	7,241,224
Total Loans											7,171,076	7,241,224
Unallocated
Allowance for loan losses, Beginning balance				279,759				236,535	279,759	236,535
Charge-offs									0	0
Recoveries									0	0
Provision (credit)									(49,153)	43,224
Allowance for loan losses, Ending balance	230,606				279,759				230,606	279,759
Allowance for loan losses evaluated for impairment, Individually											0	0
Allowance for loan losses evaluated for impairment, Collectively											230,606	279,759
Allowance for loan losses	$ 230,606			$ 279,759	$ 279,759			$ 236,535	$ 230,606	$ 236,535	$ 230,606	279,759
Loans evaluated for impairment, Individually												0
Loans evaluated for impairment, Collectively												0
Total Loans												$ 0

3. Loans, Allowance for Loan 58

3. Loans, Allowance for Loan Losses and Credit Quality (Details 4) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Recorded Investment With no related allowance recorded	$ 1,190,470	$ 4,084,204
Unpaid Principal Balance With no related allowance recorded	1,478,230	4,603,518
Average Recorded Investment With no related allowance recorded	2,136,592	3,686,066
Recorded Investment With an allowance recorded	716,272	407,792
Unpaid Principal Balance With an allowance recorded	791,533	466,478
Related Allowance With an allowance recorded	207,400	139,700
Average Recorded Investment With an allowance recorded	682,338	461,741
Recorded Investment allowance recorded	1,906,742	4,491,996
Unpaid Principal Balance allowance recorded	2,269,763	5,069,996
Related Allowance recorded	207,400	139,700
Average Recorded Investment Allowance recorded	2,818,930	4,147,807
Commercial and industrial
Recorded Investment With no related allowance recorded	48,385	286,436
Unpaid Principal Balance With no related allowance recorded	62,498	366,387
Average Recorded Investment With no related allowance recorded	183,925	446,817
Recorded Investment With an allowance recorded		0
Unpaid Principal Balance With an allowance recorded		0
Related Allowance With an allowance recorded		0
Average Recorded Investment With an allowance recorded		37,359
Related Allowance recorded		0
Commercial Real Estate
Recorded Investment With no related allowance recorded	467,238	2,551,748
Unpaid Principal Balance With no related allowance recorded	521,991	2,776,729
Average Recorded Investment With no related allowance recorded	1,059,542	2,151,713
Recorded Investment With an allowance recorded	220,257	0
Unpaid Principal Balance With an allowance recorded	232,073	0
Related Allowance With an allowance recorded	86,400	0
Average Recorded Investment With an allowance recorded	89,664	40,902
Related Allowance recorded	86,400	0
Residential real estate - 1st lien
Recorded Investment With no related allowance recorded	674,847	1,246,020
Unpaid Principal Balance With no related allowance recorded	893,741	1,460,402
Average Recorded Investment With no related allowance recorded	877,237	973,572
Recorded Investment With an allowance recorded	271,962	173,788
Unpaid Principal Balance With an allowance recorded	275,118	182,251
Related Allowance With an allowance recorded	6,200	25,100
Average Recorded Investment With an allowance recorded	350,709	228,273
Related Allowance recorded	6,200	25,100
Residential real estate - Jr lien
Recorded Investment With no related allowance recorded	0	0
Unpaid Principal Balance With no related allowance recorded	0	0
Average Recorded Investment With no related allowance recorded	15,888	113,964
Recorded Investment With an allowance recorded	224,053	234,004
Unpaid Principal Balance With an allowance recorded	284,342	284,227
Related Allowance With an allowance recorded	114,800	114,600
Average Recorded Investment With an allowance recorded	241,965	155,207
Related Allowance recorded	$ 114,800	$ 114,600

3. Loans, Allowance for Loan 59

3. Loans, Allowance for Loan Losses and Credit Quality (Details 5) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Group A	$ 473,220,117	$ 438,208,275
Group B	3,652,747	10,066,246
Group C	10,376,362	9,844,908
Total Loans	487,249,226	458,119,429
Commercial and industrial
Group A	67,297,983	59,764,081
Group B	512,329	4,724,729
Group C	920,261	702,314
Total Loans	68,730,573	65,191,124
Commercial Real Estate
Group A	191,755,393	168,326,527
Group B	2,971,364	4,529,493
Group C	7,001,523	5,350,522
Total Loans	201,728,280	178,206,542
Residential real estate - 1st lien
Group A	164,708,778	158,834,849
Group B	0	599,516
Group C	1,983,184	3,325,908
Total Loans	166,691,962	162,760,273
Residential real estate - Jr lien
Group A	42,289,062	44,041,594
Group B	169,054	212,508
Group C	469,219	466,164
Total Loans	42,927,335	44,720,266
Consumer
Group A	7,168,901	7,241,224
Group B	0	0
Group C	2,175	0
Total Loans	$ 7,171,076	$ 7,241,224

3. Loans, Allowance for Loan 60

3. Loans, Allowance for Loan Losses and Credit Quality (Details 6)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Number of Contracts modified as TDRs	10	19
Pre-Modification Outstanding Recorded Investment	$ 635,237	$ 2,127,411
Post- Modification Outstanding Recorded Investment	$ 663,007	$ 2,245,480
Commercial and industrial
Number of Contracts modified as TDRs		2
Pre-Modification Outstanding Recorded Investment		$ 199,134
Post- Modification Outstanding Recorded Investment		$ 204,142
Commercial Real Estate
Number of Contracts modified as TDRs		3
Pre-Modification Outstanding Recorded Investment		$ 581,431
Post- Modification Outstanding Recorded Investment		$ 616,438
Residential real estate - 1st lien
Number of Contracts modified as TDRs	8	12
Pre-Modification Outstanding Recorded Investment	$ 572,418	$ 1,229,100
Post- Modification Outstanding Recorded Investment	$ 598,030	$ 1,303,228
Residential Real Estate Jr Lien
Number of Contracts modified as TDRs	2	2
Pre-Modification Outstanding Recorded Investment	$ 62,819	$ 117,746
Post- Modification Outstanding Recorded Investment	$ 64,977	$ 121,672

3. Loans, Allowance for Loan 61

3. Loans, Allowance for Loan Losses and Credit Quality (Details 7)	12 Months Ended
	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)
Number of contracts	3	6
Recorded Investment	$ 147,787	$ 506,145
Commercial Real Estate
Number of contracts		1
Recorded Investment		$ 149,514
Residential real estate - 1st lien
Number of contracts	2	4
Recorded Investment	$ 93,230	$ 286,803
Residential Real Estate Jr Lien
Number of contracts	1	1
Recorded Investment	$ 54,557	$ 69,828

3. Loans, Allowance for Loan 62

3. Loans, Allowance for Loan Losses and Credit Quality (Details 8) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Allowance related to TDRs	$ 92,600	$ 25,100

4. Loan Servicing (Details)

4. Loan Servicing (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Transfers and Servicing of Financial Assets [Abstract]
Balance at beginning of year	$ 1,293,079	$ 1,311,965
Mortgage servicing rights capitalized	176,705	230,818
Mortgage servicing rights amortized	(266,603)	(257,921)
Change in valuation allowance	7,514	8,217
Balance at end of year	$ 1,210,695	$ 1,293,079

4. Loan Servicing (Details Narr

4. Loan Servicing (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loan Servicing Details Narrative
Unpaid principal balances of mortgage loans serviced for others	$ 193,858,201	$ 193,994,081
Net gain realized on the sale of loans	$ 429,480	$ 424,240

5. Bank Premises and Equipmen65

5. Bank Premises and Equipment (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Buildings and improvements	$ 11,213,737	$ 11,176,189
Land and land improvements	2,433,971	2,377,703
Furniture and equipment	9,277,592	8,752,908
Leasehold improvements	1,117,085	1,048,409
Capital lease	991,014	976,907
Other prepaid assets	125,584	514,476
Bank premises and equipment, gross	25,158,983	24,846,592
Less accumulated depreciation and amortization	(14,328,427)	(13,386,385)
Bank premises and equipment, net	$ 10,830,556	$ 11,460,207

5. Bank Premises and Equipmen66

5. Bank Premises and Equipment (Details 1)	Dec. 31, 2016USD ($)
Property, Plant and Equipment [Abstract]
2,017	$ 230,563
2,018	233,706
2,019	206,470
2,020	179,581
2,021	97,800
Subsequent to 2021	330,000
Operating lease due	$ 1,278,120

5. Bank Premises and Equipmen67

5. Bank Premises and Equipment (Details 2)	Dec. 31, 2016USD ($)
Property, Plant and Equipment [Abstract]
2,017	$ 136,560
2,018	141,460
2,019	141,460
2,020	110,460
2,021	39,117
Total minimum lease payments	569,057
Less amount representing interest	(85,896)
Present value of net minimum lease payments	$ 483,161

5. Bank Premises and Equipmen68

5. Bank Premises and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Total rental expense	$ 204,324	$ 204,991

6. Goodwill and Other Intangi69

6. Goodwill and Other Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 11,574,269	$ 11,574,269
Accumulated amortization expense	3,888,309	$ 3,615,614
Intangible Assets Acquired	4,161,000
Total remaining core deposit intangible expense	$ 272,691

7. Other Investments (Details N

7. Other Investments (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
NMTC [Member]
Equity investment generated tax credits	$ 204,900	$ 204,900
Amortization expense	177,938	161,890
Carrying value of equity investment	196,572	374,510
LimitedPartnership [Member]
Amortization expense	731,448	403,445
Carrying Value Limited Partnerships Investment	1,731,484	2,462,932
Tax credits	448,290	431,715
CFSG [Member]
Other assets	2,016,785	1,587,777
Income	$ 429,008	$ 361,044

8. Deposits (Details)

8. Deposits (Details)	Dec. 31, 2016USD ($)
Time Deposits [Line Items]
2,017	$ 65,384,502
2,018	17,229,272
2,019	14,568,044
2,020	7,898,848
2,021	11,309,263
Total time certificates of deposit	$ 116,389,929

8. Deposits (Details Narrative)

8. Deposits (Details Narrative)	Dec. 31, 2016USD ($)
Deposits Details Narrative
Total deposits in excess of the FDIC insurance	$ 139,897,460

9. Borrowed Funds (Details)

9. Borrowed Funds (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Long-term advances	$ 1,550,000	$ 0
Short-term advances	30,000,000	10,000,000
Advances	31,550,000	10,000,000
FHLBB term advance One
Long-term advances	350,000	0
FHLBB term advance Two
Long-term advances	200,000	0
FHLBB term advance Three
Long-term advances	1,000,000	0
FHLBB term advance Four
Short-term advances	10,000,000	10,000,000
FHLBB term advance Five
Short-term advances	10,000,000	0
FHLBB term advance Six
Short-term advances	$ 10,000,000	$ 0

9. Borrowed Funds (Details Narr

9. Borrowed Funds (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Qualified collateral borrowing	$ 94,744,189	$ 100,361,793
Potential borrowing capacity	68,163,543	72,091,633
Letters of credit collateral deposits	21,225,000	14,900,000
Fees paid for issuance of letters of credit	25,967	29,535
Pledged loan	$ 77,862,708	$ 72,345,479
Primary credit rate value	125 basis points	100 basis points
Line of credit with correspondent bank	$ 12,500,000	$ 7,500,000
FHLBB
Line of credit with correspondent bank	$ 500,000	$ 500,000

10. Junior Subordinated Deben75

10. Junior Subordinated Debentures (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Junior Subordinated Notes [Abstract]
Junior Subordinated Debentures	$ 12,887,000	$ 12,887,000
Interest paid on the Debentures	$ 460,142	$ 409,432
Floating rate	3.51%	3.13%

11. Repurchase Agreements (Deta

11. Repurchase Agreements (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Repurchase Agreements [Abstract]
Securities sold under agreements to repurchase	$ 30,423,195	$ 22,073,238
Book value of collateral of agreement	33,604,595	23,566,180
Fair value of collateral of agreement	33,469,254	23,496,927
Average daily balance of repurchase agreements	25,888,496	24,332,366
Maximum borrowings outstanding on repurchase agreement	$ 30,423,195	$ 28,229,636
Weighted average interest rate on repurchase agreement	0.30%	0.29%

12. Income Taxes (Details)

12. Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Currently paid or payable	$ 2,096,474	$ 1,937,004
Deferred tax expense (benefit)	(172,562)	(172,374)
Total income tax (benefit) expense	$ 1,923,912	$ 1,764,630

12. Income Taxes (Details 1)

12. Income Taxes (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Computed expense at statutory rates	$ 2,518,785	$ 2,240,669
Tax exempt interest & BOLI	(471,900)	(414,855)
Disallowed interest	13,053	11,523
Partnership tax credits	(857,359)	(566,949)
Low income housing investment amortization expense	482,756	266,280
New markets tax credit amortization expense	117,439	106,847
Other	121,138	121,116
Total income tax (benefit) expense	$ 1,923,912	$ 1,764,630

12. Income Taxes (Details 2)

12. Income Taxes (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Deferred tax expense (benefit)	$ (172,562)	$ (172,374)
Deferred Income Tax Charges [Member]
Depreciation	64,758	(82,902)
Mortgage servicing rights	(28,011)	(6,421)
Deferred compensation	(58,194)	(26,169)
Bad debts	(90,633)	(36,042)
Non-accrual loan interest	0	13,731
Limited partnership amortization	7,865	56,890
Investment in CFSG Partners	13,187	20,182
Core deposit intangible	(92,716)	(92,716)
Loan fair value	(7,514)	(9,951)
OREO write down	6,460	(10,370)
Other	12,236	1,394
Deferred tax expense (benefit)	$ (172,562)	$ (172,374)

12. Income Taxes (Details 3)

12. Income Taxes (Details 3) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Components of the deferred tax asset:
Bad debts	$ 1,794,672	$ 1,704,039
Deferred compensation	302,166	243,972
Contingent liability - MPF program	45,042	45,042
OREO write down	13,940	20,400
Capital lease	63,228	69,567
Unrealized loss on securities available-for-sale	46,765	23,385
Other	22,837	28,733
Total deferred tax asset	2,288,650	2,135,138
Components of the deferred tax liability:
Depreciation	219,304	154,546
Limited partnerships	52,109	44,244
Mortgage servicing rights	411,636	439,647
Investment in CFSG Partners	115,035	101,848
Core deposit intangible	92,715	185,431
Fair value adjustment on acquired loans	21,930	29,444
Total deferred tax liability	912,729	955,160
Net deferred tax asset	$ 1,375,921	$ 1,179,978

13. 401(k) and Profit-Sharing81

13. 401(k) and Profit-Sharing Plan (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Pension expense	$ 652,078	$ 610,631

14. Deferred Compensation and82

14. Deferred Compensation and Supplemental Employee Retirement Plans (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Directors Deferred Compensation Plan
Benefits accrued with the plan	$ 114,014	$ 141,857
Expenses associated with the plan	723	779
Supplemental Employee Retirement Plan
Benefits accrued with the plan	774,713	575,709
Expenses associated with the plan	$ 199,004	$ 114,190

15. Financial Instruments wit83

15. Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Unused portions of home equity lines of credit	$ 25,535,104	$ 25,074,972
Residential construction lines of credit	3,676,176	3,658,037
Commercial real estate and other construction lines of credit	25,951,345	15,586,595
Commercial and industrial commitments	36,227,213	46,197,882
Other commitments to extend credit	42,459,454	19,991,513
Standby letters of credit and commercial letters of credit	2,009,788	1,859,059
Recourse on sale of credit card portfolio	258,555	262,625
MPF credit enhancement obligation, net	$ 748,239	$ 1,051,601

15. Financial Instruments wit84

15. Financial Instruments with Off-Balance-Sheet Risk (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Binding loan commitments to sell residential mortgages	$ 832,000	$ 3,655,547
Junior subordinated debentures	12,887,000	12,887,000
External financing	$ 12,887,000	$ 12,500,000

16. Contingent Liability (Detai

16. Contingent Liability (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Loans sold through the MPF program	$ 48,058,235	$ 50,374,657
Notional amount of the maximum CEO	870,664	1,171,787
Accrued contingent liability	$ 122,425	$ 120,186

18. Transactions with Related86

18. Transactions with Related Parties (Details) - USD ($)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Balance, beginning of year		$ 14,017,551	$ 8,593,273
Retirement/Resignation of Director		0	(1,824,495)
Repayment	[1]	(11,758,440)	(14,563,935)
Balance, end of year		14,121,486	14,017,551
New Principal Officers/Directors
Loans		0	7,225,328
Existing Officers/Directors
Loans		$ 11,862,375	$ 14,587,380
[1]	Includes loans sold to the secondary market.

18. Transactions with Related87

18. Transactions with Related Parties (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Total deposits with related parties	$ 7,938,810	$ 5,713,210
Amount of rental income received	60,660	59,343
Amount paid to CFSG	44,065	47,448
Amount paid to SERP	$ 2,442	$ 2,065

19. Restrictions on Cash and 88

19. Restrictions on Cash and Due From Banks (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Restricted Cash and Cash Equivalents Items [Line Items]
Contracted balances with other correspondent banks	$ 462,500	$ 462,500
Balance to avoid monthly charges on the Company current federal funds liquidity line	$ 262,500	$ 262,500

20. Regulatory Capital Requir89

20. Regulatory Capital Requirements (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Company [Member]
Total capital to risk-weighted assets amount	$ 61,012	$ 57,610
Total capital to risk-weighted assets ratio	13.52%	13.57%
Common equity tier 1 capital to risk-weighted assets amount	$ 55,690	$ 52,555
Common equity tier 1 capital to risk-weighted assets ratio	12.34%	12.38%
Tier I capital to risk-weighted assets amount	$ 55,690	$ 52,555
Tier I capital to risk-weighted assets ratio	12.34%	12.38%
Tier I capital to average assets amount	$ 55,690	$ 52,555
Tier I capital to average assets ratio	9.17%	9.01%
Total capital to risk-weighted assets Minimum for capital adequacy purposes amount	$ 36,096	$ 33,956
Total capital to risk-weighted assets Minimum for capital adequacy purposes ratio	8.00%	8.00%
Common equity tier 1 capital to risk-weighted assets Minimum for capital adequacy purposes amount	$ 20,304	$ 19,100
Common equity tier 1 capital to risk-weighted assets Minimum for capital adequacy purposes ratio	4.50%	4.50%
Tier I capital to risk-weighted assets Minimum for capital adequacy purposes amount	$ 27,072	$ 25,467
Tier I capital to risk-weighted assets minimum for capital adequacy purposes ratio	6.00%	6.00%
Tier I capital to average assets Minimum for capital adequacy purposes amount	$ 24,305	$ 23,324
Tier I capital to average assets minimum for capital adequacy purposes ratio	4.00%	4.00%
Total capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions amount	$ 45,054
Total capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions ratio	10.00%
Common equity tier 1 capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions amount	$ 29,285
Common equity tier 1 capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions ratio	6.50%
Tier I capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions amount	$ 36,043
Tier I capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions ratio	8.00%
Tier I capital to average assets minimum to be well capitalized under prompt corrective action provisions amount	$ 30,351
Tier I capital to average assets minimum to be well capitalized under prompt corrective action provisions ratio	5.00%
Bank [Member]
Total capital to risk-weighted assets amount	$ 60,443	$ 57,056
Total capital to risk-weighted assets ratio	13.42%	13.46%
Common equity tier 1 capital to risk-weighted assets amount	$ 55,120	$ 52,000
Common equity tier 1 capital to risk-weighted assets ratio	12.23%	12.27%
Tier I capital to risk-weighted assets amount	$ 55,120	$ 52,000
Tier I capital to risk-weighted assets ratio	12.23%	12.27%
Tier I capital to average assets amount	$ 55,120	$ 52,000
Tier I capital to average assets ratio	9.08%	8.93%
Total capital to risk-weighted assets Minimum for capital adequacy purposes amount	$ 36,043	$ 33,906
Total capital to risk-weighted assets Minimum for capital adequacy purposes ratio	8.00%	8.00%
Common equity tier 1 capital to risk-weighted assets Minimum for capital adequacy purposes amount	$ 20,274	$ 19,072
Common equity tier 1 capital to risk-weighted assets Minimum for capital adequacy purposes ratio	4.50%	4.50%
Tier I capital to risk-weighted assets Minimum for capital adequacy purposes amount	$ 27,032	$ 25,430
Tier I capital to risk-weighted assets minimum for capital adequacy purposes ratio	6.00%	6.00%
Tier I capital to average assets Minimum for capital adequacy purposes amount	$ 24,281	$ 23,301
Tier I capital to average assets minimum for capital adequacy purposes ratio	4.00%	4.00%
Total capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions amount		$ 42,383
Total capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions ratio		10.00%
Common equity tier 1 capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions amount		$ 27,549
Common equity tier 1 capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions ratio		6.50%
Tier I capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions amount		$ 33,906
Tier I capital to risk-weighted assets minimum to be well capitalized under prompt corrective action provisions ratio		8.00%
Tier I capital to average assets minimum to be well capitalized under prompt corrective action provisions amount		$ 29,126
Tier I capital to average assets minimum to be well capitalized under prompt corrective action provisions ratio		5.00%

21. Fair Value (Details)

21. Fair Value (Details) - Fair Value Level 2 - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Assets: (market approach)
Assets Recorded at Fair Value on a Recurring Basis	$ 33,715,051	$ 26,470,400
U.S. GSE debt securities
Assets: (market approach)
Assets Recorded at Fair Value on a Recurring Basis	17,317,328	12,832,443
Agency MBS
Assets: (market approach)
Assets Recorded at Fair Value on a Recurring Basis	13,154,228	10,664,484
Other investments
Assets: (market approach)
Assets Recorded at Fair Value on a Recurring Basis	$ 3,243,495	$ 2,973,473

21. Fair Value (Details 1)

21. Fair Value (Details 1) - Fair Value Level 2 - USD ($)		Dec. 31, 2016	Dec. 31, 2015
Assets: (market approach)
Residential mortgage servicing rights	[1]	$ 1,210,695	$ 1,293,079
Impaired loans, net of related allowance		508,872	268,092
OREO		$ 394,000	$ 262,000
[1]	Represents MSRs at lower of cost or fair value, including MSRs deemed to be impaired and for which a valuation allowance was established to carry at fair value at December 31, 2016 and 2015.

21. Fair Value (Details 2)

21. Fair Value (Details 2) - USD ($)		Dec. 31, 2016	Dec. 31, 2015
Carrying Amount
Financial assets: (in thousands)
Cash and cash equivalents		$ 29,614	$ 28,852
Securities held-to-maturity		49,887	43,354
Securities available-for-sale		33,715	26,470
Restricted equity securities		2,756	2,442
Loans and loans held-for-sale
Commercial & Industrial		67,972	64,438
Commercial real estate		199,136	175,945
Residential real estate - 1st lien		165,243	162,492
Residential real estate - Jr. lien		42,536	44,270
Consumer		7,084	7,161
Mortgage servicing rights	[1]	1,211	1,293
Accrued interest receivable		1,819	1,633
Deposits
Deposits, Other deposits		470,002	466,859
Deposits, Brokered deposits		34,733	28,627
Short-term borrowings		30,000	10,000
Long-term borrowings		1,550
Repurchase agreements		30,423	22,073
Capital lease obligations		483	558
Subordinated debentures		12,887	12,887
Accrued interest payable		73	53
Fair Value Level 1
Financial assets: (in thousands)
Cash and cash equivalents		29,614	28,852
Securities held-to-maturity		0	0
Securities available-for-sale		0	0
Restricted equity securities		0	0
Loans and loans held-for-sale
Commercial & Industrial		0	0
Commercial real estate		0	0
Residential real estate - 1st lien		0	0
Residential real estate - Jr. lien		0	0
Consumer		0	0
Mortgage servicing rights	[1]	0	0
Accrued interest receivable		0	0
Deposits
Deposits, Other deposits		0	0
Deposits, Brokered deposits		0	0
Short-term borrowings		0	0
Long-term borrowings		0
Repurchase agreements		0	0
Capital lease obligations		0	0
Subordinated debentures		0	0
Accrued interest payable		0	0
Fair Value Level 2
Financial assets: (in thousands)
Cash and cash equivalents		0	0
Securities held-to-maturity		51,035	44,143
Securities available-for-sale		33,715	26,470
Restricted equity securities		2,756	2,442
Loans and loans held-for-sale
Commercial & Industrial		48	286
Commercial real estate		601	2,552
Residential real estate - 1st lien		941	1,395
Residential real estate - Jr. lien		109	119
Consumer		0	0
Mortgage servicing rights	[1]	1,302	1,497
Accrued interest receivable		1,819	1,633
Deposits
Deposits, Other deposits		469,323	466,524
Deposits, Brokered deposits		34,745	28,630
Short-term borrowings		30,000	10,000
Long-term borrowings		1,376
Repurchase agreements		30,423	22,073
Capital lease obligations		483	558
Subordinated debentures		12,849	12,851
Accrued interest payable		73	53
Fair Value Level 3
Financial assets: (in thousands)
Cash and cash equivalents		0	0
Securities held-to-maturity		0	0
Securities available-for-sale		0	0
Restricted equity securities		0	0
Loans and loans held-for-sale
Commercial & Industrial		68,727	65,399
Commercial real estate		201,560	178,502
Residential real estate - 1st lien		166,858	164,959
Residential real estate - Jr. lien		42,948	44,939
Consumer		7,371	7,482
Mortgage servicing rights	[1]	0	0
Accrued interest receivable		0	0
Deposits
Deposits, Other deposits		0	0
Deposits, Brokered deposits		0	0
Short-term borrowings		0	0
Long-term borrowings		0
Repurchase agreements		0	0
Capital lease obligations		0	0
Subordinated debentures		0	0
Accrued interest payable		0	0
Fair Value
Financial assets: (in thousands)
Cash and cash equivalents		29,614	28,852
Securities held-to-maturity		51,035	44,143
Securities available-for-sale		33,715	26,470
Restricted equity securities		2,756	2,442
Loans and loans held-for-sale
Commercial & Industrial		68,775	65,685
Commercial real estate		202,161	181,054
Residential real estate - 1st lien		167,799	166,354
Residential real estate - Jr. lien		43,057	45,058
Consumer		7,371	7,482
Mortgage servicing rights	[1]	1,302	1,497
Accrued interest receivable		1,819	1,633
Deposits
Deposits, Other deposits		469,323	466,524
Deposits, Brokered deposits		34,745	28,630
Short-term borrowings		30,000	10,000
Long-term borrowings		1,376
Repurchase agreements		30,423	22,073
Capital lease obligations		483	558
Subordinated debentures		12,849	12,851
Accrued interest payable		$ 73	$ 53
[1]	Reported fair value represents all MSRs serviced by the Company at December 31, 2016, regardless of carrying amount

22. Condensed Financial Infor93

22. Condensed Financial Information (Parent Company Only) (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets
Total assets	$ 637,653,665	$ 596,134,709
Liabilities
Junior subordinated debentures	12,887,000	12,887,000
Total liabilities	583,202,148	544,720,053
Shareholders' Equity
Preferred stock, 1,000,000 shares authorized, 25 shares issued and outstanding ($100,000 liquidation value)	2,500,000	2,500,000
Common stock - $2.50 par value; 15,000,000 shares authorized, and 5,269,053 and 5,204,517 shares issued at December 31, 2016 and 2015, respectively (including 15,022 and 15,430 shares issued February 1, 2017 and 2016, respectively)	13,172,633	13,011,293
Additional paid-in capital	30,825,658	30,089,438
Retained earnings	10,666,782	8,482,096
Accumulated other comprehensive loss	(90,779)	(45,394)
Less: treasury stock, at cost; 210,101 shares at December 31, 2016 and 2015	(2,622,777)	(2,622,777)
Total shareholders' equity	54,451,517	51,414,656	$ 48,995,202
Total liabilities and shareholders' equity	637,653,665	596,134,709
Parent Company [Member]
Assets
Cash	494,086	508,325	$ 479,812
Investment in subsidiary - Community National Bank	66,769,241	63,747,517
Investment in Capital Trust	387,000	387,000
Income taxes receivable	269,335	239,394
Total assets	67,919,662	64,882,236
Liabilities
Junior subordinated debentures	12,887,000	12,887,000
Dividends payable	581,145	580,580
Total liabilities	13,468,145	13,467,580
Shareholders' Equity
Preferred stock, 1,000,000 shares authorized, 25 shares issued and outstanding ($100,000 liquidation value)	2,500,000	2,500,000
Common stock - $2.50 par value; 15,000,000 shares authorized, and 5,269,053 and 5,204,517 shares issued at December 31, 2016 and 2015, respectively (including 15,022 and 15,430 shares issued February 1, 2017 and 2016, respectively)	13,172,633	13,011,293
Additional paid-in capital	30,825,658	30,089,438
Retained earnings	10,666,782	8,482,096
Accumulated other comprehensive loss	(90,779)	(45,394)
Less: treasury stock, at cost; 210,101 shares at December 31, 2016 and 2015	(2,622,777)	(2,622,777)
Total shareholders' equity	54,451,517	51,414,656
Total liabilities and shareholders' equity	$ 67,919,662	$ 64,882,236

22. Condensed Financial Infor94

22. Condensed Financial Information (Parent Company Only) (Details 1) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Expense
Interest on junior subordinated debentures									$ 460,142	$ 409,432
Income tax benefit									1,923,912	1,764,630
Net income	$ 1,503,685	$ 1,515,900	$ 1,295,199	$ 1,169,494	$ 1,198,224	$ 1,439,822	$ 1,077,704	$ 1,109,841	5,484,278	4,825,591
Parent Company [Member]
Income
Bank subsidiary distributions									2,940,000	2,842,000
Dividends on Capital Trust									13,818	12,295
Total income									2,953,818	2,854,295
Expense
Interest on junior subordinated debentures									460,142	409,432
Administrative and other									345,842	306,962
Total expense									805,984	716,394
Income before applicable income tax benefit and equity in undistributed net income of subsidiary									2,147,834	2,137,901
Income tax benefit									269,335	239,394
Income before equity in undistributed net income of subsidiary									2,417,169	2,377,295
Equity in undistributed net income of subsidiary									3,067,109	2,448,296
Net income									$ 5,484,278	$ 4,825,591

22. Condensed Financial Infor95

22. Condensed Financial Information (Parent Company Only) (Details 2) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities
Net income	$ 1,503,685	$ 1,515,900	$ 1,295,199	$ 1,169,494	$ 1,198,224	$ 1,439,822	$ 1,077,704	$ 1,109,841	$ 5,484,278	$ 4,825,591
Adjustments to reconcile net income to net cash provided by operating activities
Net cash provided by operating activities									9,308,462	5,592,615
Cash Flows from Financing Activities
Dividends paid on preferred stock									(87,500)	(81,250)
Dividends paid on common stock									(2,313,967)	(2,262,089)
Net cash used in financing activities									36,672,756	3,571,858
Net (decrease) increase in cash									762,396	3,889,716
Cash Paid for Interest									2,679,369	2,656,688
Dividends paid:
Dividends declared									3,212,092	3,172,179
Increase in dividends payable attributable to dividends declared									(565)	(24,847)
Dividends reinvested									(897,560)	(885,243)
Parent Company [Member]
Cash Flows from Operating Activities
Net income									5,484,278	4,825,591
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed net income of subsidiary									(3,067,109)	(2,448,296)
Increase in income taxes receivable									(29,941)	(5,443)
Net cash provided by operating activities									2,387,228	2,371,852
Cash Flows from Financing Activities
Dividends paid on preferred stock									(87,500)	(81,250)
Dividends paid on common stock									(2,313,967)	(2,262,089)
Net cash used in financing activities									(2,401,467)	(2,343,339)
Net (decrease) increase in cash									(14,239)	28,513
Cash Beginning				$ 508,325				$ 479,812	508,325	479,812
Cash Ending	$ 494,086				$ 508,325				494,086	508,325
Cash Received for Income Taxes									239,394	233,952
Cash Paid for Interest									460,142	409,432
Dividends paid:
Dividends declared									(3,212,092)	(3,172,179)
Increase in dividends payable attributable to dividends declared									(565)	(24,847)
Dividends reinvested									(897,560)	(885,243)
Total common shares dividends paid									$ 2,313,967	$ 2,262,089

22. Condensed Financial Infor96

22. Condensed Financial Information (Parent Company Only) (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	25	25
Preferred stock, shares outstanding (in shares)	25	25
Preferred stock liquidation value	$ 100,000	$ 100,000
Common stock par value (in dollars per share)	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	5,269,053	5,204,517
Treasury stock (in shares)	210,101	210,101
Parent Company [Member]
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	25	25
Preferred stock, shares outstanding (in shares)	25	25
Preferred stock liquidation value	$ 100,000	$ 100,000
Common stock par value (in dollars per share)	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	15,000,000	15,000,000
Common stock, shares issued (in shares)	5,269,053	5,204,517
Treasury stock (in shares)	210,101	210,101

23. Quarterly Financial Data 97

23. Quarterly Financial Data (Unaudited) (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 6,212,384	$ 6,254,098	$ 5,963,378	$ 5,818,254	$ 5,848,970	$ 5,939,735	$ 5,751,184	$ 5,866,800	$ 24,248,114	$ 23,406,689
Interest expense	667,299	691,743	676,995	663,262	613,362	632,470	672,304	727,514	2,699,299	2,645,650
Provision for loan losses	100,000	150,000	150,000	100,000	135,000	75,000	150,000	150,000	500,000	510,000
Non-interest income	1,461,829	1,483,520	1,318,699	1,237,851	1,332,892	1,299,995	1,304,481	1,212,787	5,501,899	5,150,155
Non-interest expense	4,994,550	4,790,503	4,675,180	4,682,291	4,802,530	4,531,874	4,779,840	4,696,729	19,142,524	18,810,973
Net income	$ 1,503,685	$ 1,515,900	$ 1,295,199	$ 1,169,494	$ 1,198,224	$ 1,439,822	$ 1,077,704	$ 1,109,841	$ 5,484,278	$ 4,825,591
Earnings per common share	$ 0.29	$ 0.3	$ 0.25	$ 0.23	$ 0.24	$ 0.29	$ 0.21	$ 0.22	$ 1.07	$ 0.96

24. Other Income and Other Ex98

24. Other Income and Other Expenses (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income
Income from investment in CFSG Partners	$ 429,008	$ 361,044
Expenses
Outsourcing expense	509,345	516,197
Service contracts - administration	389,971	330,563
Marketing	380,753	307,841
State deposit tax	568,549	562,271
ATM fees	382,227	372,609
Telephone	318,059	312,043
FDIC Insurance	$ 306,249	$ 365,804