Community Bancorp (CMTV) 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 03, 2018
Document And Entity Information
Entity Registrant Name	Community Bancorp /VT
Entity Central Index Key	718,413
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
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	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		5,126,274
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Assets
Cash and due from banks	$ 12,172,705	$ 10,690,396	$ 17,275,640
Federal funds sold and overnight deposits	29,297,476	31,963,105	15,513,549
Total cash and cash equivalents	41,470,181	42,653,501	32,789,189
Securities held-to-maturity (fair value $47,644,000 at 03/31/18, $48,796,000 at 12/31/17 and $54,853,000 at 03/31/17)	47,899,857	48,824,965	53,879,934
Securities available-for-sale	38,694,065	38,450,653	33,852,571
Restricted equity securities, at cost	1,793,650	1,703,650	2,426,050
Loans held-for-sale	358,500	1,037,287	0
Loans	504,033,558	502,864,651	485,722,245
Allowance for loan losses	(5,341,220)	(5,438,099)	(5,258,440)
Deferred net loan costs	329,244	318,651	321,285
Net loans	499,021,582	497,745,203	480,785,090
Bank premises and equipment, net	10,196,450	10,344,177	10,629,125
Accrued interest receivable	2,212,131	2,051,918	2,062,875
Bank owned life insurance	4,744,512	4,721,782	4,649,557
Core deposit intangible	0	0	204,516
Goodwill	11,574,269	11,574,269	11,574,269
Other real estate owned	284,235	284,235	561,979
Other assets	7,722,318	7,653,955	9,484,895
Total assets	665,971,750	667,045,595	642,900,050
Deposits:
Demand, non-interest bearing	109,656,422	117,245,565	105,880,429
Interest-bearing transaction accounts	131,469,439	132,633,533	121,953,444
Money market funds	106,878,746	93,392,005	86,938,154
Savings	99,528,104	97,516,284	96,883,558
Time deposits, $250,000 and over	16,577,061	18,909,898	19,913,160
Other time deposits	94,119,774	100,937,695	100,850,953
Total deposits	558,229,546	560,634,980	532,419,698
Borrowed funds	3,550,000	3,550,000	11,550,000
Repurchase agreements	30,246,926	28,647,848	27,747,451
Capital lease obligations	353,909	381,807	459,443
Junior subordinated debentures	12,887,000	12,887,000	12,887,000
Accrued interest and other liabilities	2,395,548	3,008,106	2,649,027
Total liabilities	607,662,929	609,109,741	587,712,619
Shareholders' Equity
Preferred stock, 1,000,000 shares authorized, 20 and 25 shares issued and outstanding in 2018 and 2017, respectively ($100,000 liquidation value)	2,000,000	2,500,000	2,500,000
Common stock - $2.50 par value; 15,000,000 shares authorized, 5,335,658 shares issued at 03/31/18, 5,322,320 shares issued at 12/31/17 and 5,283,077 shares issued at 03/31/17	13,339,145	13,305,800	13,207,693
Additional paid-in capital	31,846,397	31,639,189	31,008,521
Retained earnings	14,473,029	13,387,739	11,197,709
Accumulated other comprehensive loss	(726,973)	(274,097)	(103,715)
Less: treasury stock, at cost; 210,101 shares at 03/31/18, 12/31/17 and 03/31/17	(2,622,777)	(2,622,777)	(2,622,777)
Total shareholders' equity	58,308,821	57,935,854	55,187,431
Total liabilities and shareholders' equity	$ 665,971,750	$ 667,045,595	$ 642,900,050
Book value per common share outstanding	$ 10.99	$ 10.84	$ 10.39

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Assets
Securities held-to-maturity, fair value	$ 47,644,000	$ 48,796,000	$ 54,853,000
Shareholder's Equity
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	20	25	25
Preferred stock, shares outstanding (in shares)	20	25	25
Preferred stock liquidation value	$ 100,000	$ 100,000	$ 100,000
Common stock par value (in dollars per share)	$ 2.50	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	15,000,000	15,000,000	15,000,000
Common stock, shares issued (in shares)	5,335,658	5,322,320	5,283,077
Treasury stock (in shares)	210,101	210,101	210,101

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest income
Interest and fees on loans	$ 6,140,544	$ 5,616,867
Interest on debt securities
Taxable	202,885	151,726
Tax-exempt	310,156	324,532
Dividends	67,855	35,796
Interest on federal funds sold and overnight deposits	55,398	27,472
Total interest income	6,776,838	6,156,393
Interest expense
Interest on deposits	687,063	537,789
Interest on borrowed funds	7,483	52,235
Interest on repurchase agreements	31,206	21,527
Interest on junior subordinated debentures	142,997	122,860
Total interest expense	868,749	734,411
Net interest income	5,908,089	5,421,982
Provision for loan losses	180,000	150,000
Net interest income after provision for loan losses	5,728,089	5,271,982
Non-interest income
Service fees	770,082	748,117
Income from sold loans	183,619	190,295
Other income from loans	212,270	185,617
Net realized (loss) gain on sale of securities AFS	(3,860)	2,130
Other income	233,559	244,059
Total non-interest income	1,395,670	1,370,218
Non-interest expense
Salaries and wages	1,615,386	1,711,124
Employee benefits	674,002	641,561
Occupancy expenses, net	674,873	687,433
Other expenses	1,766,855	1,691,001
Total non-interest expense	4,731,116	4,731,119
Income before income taxes	2,392,643	1,911,081
Income tax expense	410,100	496,865
Net income	$ 1,982,543	$ 1,414,216
Earnings per common share	$ 0.38	$ 0.27
Weighted average number of common shares used in computing earnings per share	5,117,009	5,063,128
Dividends declared per common share	$ 0.17	$ 0.17

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 1,982,543	$ 1,414,216
Other comprehensive income (loss), net of tax:
Unrealized holding loss on securities AFS arising during the period	(577,124)	(17,470)
Reclassification adjustment for loss (gain) realized in income	3,860	(2,130)
Unrealized loss during the period	(573,264)	(19,600)
Tax effect	120,388	6,664
Other comprehensive loss, net of tax	(452,876)	(12,936)
Total comprehensive income	$ 1,529,667	$ 1,401,280

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities:
Net income	$ 1,982,543	$ 1,414,216
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, bank premises and equipment	246,582	252,131
Provision for loan losses	180,000	150,000
Deferred income tax	6,667	(17,535)
Loss (gain) on sale of securities AFS	3,860	(2,130)
Gain on sale of loans	(77,698)	(79,128)
Loss on sale of bank premises and equipment	631	1,580
Loss on sale of OREO	0	617
Income from CFSG Partners	(128,183)	(113,179)
Amortization of bond premium, net	33,969	30,075
Proceeds from sales of loans held for sale	2,153,059	3,974,739
Originations of loans held for sale	(1,396,574)	(3,895,611)
Increase in taxes payable	309,062	360,092
Increase in interest receivable	(160,213)	(244,365)
Decrease in mortgage servicing rights	27,446	28,462
Increase in other assets	(257,338)	(4,875)
Increase in cash surrender value of BOLI	(22,730)	(24,151)
Amortization of core deposit intangible	0	68,175
Amortization of limited partnerships	94,371	154,308
Increase in unamortized loan costs	(10,593)	(11,155)
Increase in interest payable	9,073	23,329
Decrease in accrued expenses	(616,259)	(506,924)
Decrease in other liabilities	(5,532)	(21,024)
Net cash provided by operating activities	2,372,143	1,537,647
Cash Flows from Investing Activities:
Investments - held-to-maturity Maturities and pay downs	4,047,473	2,365,271
Purchases	(3,122,365)	(6,358,574)
Investments - available-for-sale Maturities, calls, pay downs and sales	2,190,856	1,300,588
Purchases	(3,045,361)	(1,485,653)
Proceeds from redemption of restricted equity securities	0	329,800
Purchases of restricted equity securities	(90,000)	0
Decrease in limited partnership contributions payable	0	(27,000)
(Increase) decrease in loans, net	(1,469,503)	979,595
Capital expenditures for bank premises and equipment	(99,486)	(52,280)
Proceeds from sales of OREO	0	187,383
Recoveries of loans charged off	23,717	21,402
Net cash used in investing activities	(1,564,669)	(2,739,468)
Cash Flows from Financing Activities:
Net (decrease) increase in demand and interest-bearing transaction accounts	(8,753,237)	5,308,245
Net increase in money market and savings accounts	15,498,561	18,002,237
Net (decrease) increase in time deposits	(9,150,758)	4,374,184
Net increase (decrease) in repurchase agreements	1,599,078	(2,675,744)
Net decrease in short-term borrowings	0	(20,000,000)
Decrease in capital lease obligations	(27,898)	(23,718)
Redemption of preferred stock	(500,000)	0
Dividends paid on preferred stock	(28,125)	(23,438)
Dividends paid on common stock	(628,415)	(585,042)
Net cash provided by financing activities	(1,990,794)	4,376,724
Net (decrease) increase in cash and cash equivalents	(1,183,320)	3,174,903
Cash and cash equivalents:
Beginning	42,653,501	29,614,286
Ending	41,470,181	32,789,189
Supplemental Schedule of Cash Paid During the Period:
Interest	859,676	711,082
Supplemental Schedule of Noncash Investing and Financing Activities:
Change in unrealized loss on securities AFS	(573,264)	(19,600)
Loans transferred to OREO	0	355,979
Common Shares Dividends Paid:
Dividends declared	869,128	859,851
Increase in dividends payable attributable to dividends declared	(160)	(56,886)
Dividends reinvested	(240,553)	(217,923)
Total	$ 628,415	$ 585,042

1. Basis of Presentation and Co

1. Basis of Presentation and Consolidation	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Note 1. Basis of Presentation and Consolidation	The interim consolidated financial statements of Community Bancorp. and Subsidiary are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments necessary for the fair presentation of the consolidated financial condition and results of operations of the Company and its subsidiary, Community National Bank (the Bank), contained herein have been made. The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2017 contained in the Company's Annual Report on Form 10-K. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full annual period ending December 31, 2018, or for any other interim period. Certain amounts in the 2017 unaudited consolidated income statements have been reclassified to conform to the 2018 presentation. Reclassifications had no effect on prior period net income or shareholders’ equity. In addition to the definitions provided elsewhere in this quarterly report, the definitions, acronyms and abbreviations identified below are used throughout this Form 10-Q, including Part I. “Financial Information” and Part II. “Other Information”, and is intended to aid the reader and provide a reference page when reviewing this Form 10Q. AFS: Available-for-sale FRBB: Federal Reserve Bank of Boston Agency MBS: MBS issued by a US government agency or GSE GAAP: Generally Accepted Accounting Principles in the United States ALCO: Asset Liability Committee GSE Government sponsored enterprise ALL: Allowance for loan losses HTM: Held-to-maturity ASC: Accounting Standards Codification ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ASU: Accounting Standards Update IRS: Internal Revenue Service BIC: Borrower-in-Custody JNE: Jobs for New England Board: Board of Directors Jr: Junior BOLI Bank owned life insurance MBS: Mortgage-backed security bp or bps: Basis point(s) MPF: Mortgage Partnership Finance CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network MSRs: Mortgage servicing rights CDs: Certificates of deposit NII: Net interest income CDI: Core deposit intangible OCI: Other comprehensive income (loss) CECL: Current Expected Credit Loss OREO: Other real estate owned CFSG: Community Financial Services Group OTTI: Other-than-temporary impairment CFSG Partners: Community Financial Services Partners, LLC PMI Private mortgage insurance Company: Community Bancorp. and Subsidiary RD: USDA Rural Development CRE: Commercial Real Estate SBA U.S. Small Business Administration DRIP: Dividend Reinvestment Plan SERP Supplemental Employee Retirement Plan Excha nge Act: Securities Exchange Act of 1934 SEC: U.S. Securities and Exchange Commission FASB: Financial Accounting Standards Board TDR: Troubled-debt restructuring FDIC: Federal Deposit Insurance Corporation USDA: U.S. Department of Agriculture FHLBB: Federal Home Loan Bank of Boston VA: U.S. Veterans Administration FHLMC Federal Home Loan Mortgage Corporation 2017 Tax Act: Tax Cut and Jobs Act of 2017 FRB: Federal Reserve Board

2. Recent Accounting Developmen

2. Recent Accounting Developments	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Note 2. Recent Accounting Developments	The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers FASB formed a Transition Resource Group to assist it in identifying implementation issues that may require further clarification or amendment to ASU No. 2014-09. As a result of that group’s deliberations, FASB has issued several amendments, which became effective concurrently with ASU No. 2014-09, including ASU No. 2016-08, Principal versus Agent Considerations In January 2016, the FASB issued ASU 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. In February 2018, FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

3. Earnings per Common Share

3. Earnings per Common Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Note 3. 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 (retroactively adjusted for stock splits and stock dividends, if any), including Dividend Reinvestment Plan shares issuable upon reinvestment of dividends declared, and reduced for shares held in treasury. The following tables illustrate the calculation of earnings per common share for the periods presented, as adjusted for the cash dividends declared on the preferred stock: Three Months Ended March 31, 2018 2017 Net income, as reported $ 1,982,543 $ 1,414,216 Less: dividends to preferred shareholders 28,125 23,438 Net income available to common shareholders $ 1,954,418 $ 1,390,778 Weighted average number of common shares used in calculating earnings per share 5,117,009 5,063,128 Earnings per common share $ 0.38 $ 0.27

4. Investment Securities

4. Investment Securities	3 Months Ended
	Mar. 31, 2018
Investment Securities
Note 4. Investment Securities	Securities AFS and HTM as of the balance sheet dates consisted of the following: Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value March 31, 2018 U.S. GSE debt securities $ 17,272,170 $ 0 $ 386,980 $ 16,885,190 Agency MBS 17,139,115 3,327 460,499 16,681,943 Other investments 5,203,000 0 76,068 5,126,932 $ 39,614,285 $ 3,327 $ 923,547 $ 38,694,065 December 31, 2017 U.S. GSE debt securities $ 17,308,229 $ 0 $ 149,487 $ 17,158,742 Agency MBS 16,782,380 11,144 180,187 16,613,337 Other investments 4,707,000 165 28,591 4,678,574 $ 38,797,609 $ 11,309 $ 358,265 $ 38,450,653 March 31, 2017 U.S. GSE debt securities $ 17,361,110 $ 18,840 $ 69,547 $ 17,310,403 Agency MBS 13,675,605 543 118,625 13,557,523 Other investments 2,973,000 15,327 3,682 2,984,645 $ 34,009,715 $ 34,710 $ 191,854 $ 33,852,571 Gross Gross Amortized Unrealized Unrealized Fair Securities HTM Cost Gains Losses Value* March 31, 2018 States and political subdivisions $ 47,899,857 $ 275,801 $ 531,658 $ 47,644,000 December 31, 2017 States and political subdivisions $ 48,824,965 $ 0 $ 28,965 $ 48,796,000 March 31, 2017 States and political subdivisions $ 53,879,934 $ 973,066 $ 0 $ 54,853,000 *Method used to determine fair value of HTM securities rounds values to nearest thousand. Investments pledged as collateral for repurchase agreements consisted of U.S. GSE debt securities, Agency MBS securities and CDs. These repurchase agreements mature daily. These investments as of the balance sheet dates were as follows: Amortized Fair Cost Value March 31, 2018 $ 39,614,284 $ 38,694,065 December 31, 2017 38,797,609 38,450,653 March 31, 2017 33,265,715 33,112,253 The scheduled maturities of debt securities AFS as of the balance sheet dates were as follows: Amortized Fair Cost Value March 31, 2018 Due in one year or less $ 2,250,000 $ 2,242,195 Due from one to five years 11,766,268 11,548,006 Due from five to ten years 8,458,902 8,221,921 Agency MBS 17,139,115 16,681,943 $ 39,614,285 $ 38,694,065 December 31, 2017 Due in one year or less $ 3,749,956 $ 3,739,512 Due from one to five years 11,275,824 11,168,065 Due from five to ten years 6,989,449 6,929,739 Agency MBS 16,782,380 16,613,337 $ 38,797,609 $ 38,450,653 March 31, 2017 Due in one year or less $ 3,002,965 $ 3,006,801 Due from one to five years 16,086,145 16,070,906 Due from five to ten years 1,245,000 1,217,341 Agency MBS 13,675,605 13,557,523 $ 34,009,715 $ 33,852,571 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 HTM as of the balance sheet dates were as follows: Amortized Fair Cost Value* March 31, 2018 Due in one year or less $ 23,788,327 $ 23,788,000 Due from one to five years 4,638,586 4,575,000 Due from five to ten years 4,450,931 4,331,000 Due after ten years 15,022,013 14,894,000 $ 47,899,857 $ 47,644,000 December 31, 2017 Due in one year or less $ 24,817,334 $ 24,817,000 Due from one to five years 4,494,343 4,487,000 Due from five to ten years 4,338,246 4,331,000 Due after ten years 15,175,042 15,161,000 $ 48,824,965 $ 48,796,000 March 31, 2017 Due in one year or less $ 29,666,554 $ 29,667,000 Due from one to five years 3,905,257 4,148,000 Due from five to ten years 3,950,402 4,194,000 Due after ten years 16,357,721 16,844,000 $ 53,879,934 $ 54,853,000 *Method used to determine fair value of HTM securities rounds values to nearest thousand. Debt securities AFS and HTM with unrealized losses as of the balance sheet dates are presented in the table below. Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Number of Fair Unrealized Value Loss Value Loss Securities Value Loss March 31, 2018 U.S. GSE debt securities $ 12,997,086 $ 275,084 $ 3,888,103 $ 111,896 15 $ 16,885,189 $ 386,980 Agency MBS 10,987,068 298,918 4,237,057 161,581 21 15,224,125 460,499 Other investments 4,146,288 67,711 487,644 8,357 16 4,633,932 76,068 State and political subdivisions 44,235,977 531,658 0 0 121 44,235,977 531,658 $ 72,366,419 $ 1,173,371 $ 8,612,804 $ 281,834 173 $ 80,979,223 $ 1,455,205 December 31, 2017 U.S. GSE debt securities $ 13,223,739 $ 84,490 $ 3,935,003 $ 64,997 15 $ 17,158,742 $ 149,487 Agency MBS 9,251,323 105,063 4,542,446 75,124 21 13,793,769 180,187 Other investments 3,692,571 25,429 244,838 3,162 16 3,937,409 28,591 State and political subdivisions 22,530,141 28,965 0 0 79 22,530,141 28,965 $ 48,697,774 $ 243,947 $ 8,722,287 $ 143,283 131 $ 57,420,061 $ 387,230 March 31, 2017 U.S. GSE debt securities $ 6,179,311 $ 69,547 $ 0 $ 0 5 $ 6,179,311 $ 69,547 Agency MBS 12,018,209 104,677 1,048,513 13,948 3 13,066,722 118,625 Other investments 740,318 3,682 0 0 18 740,318 3,682 $ 18,937,838 $ 177,906 $ 1,048,513 $ 13,948 26 $ 19,986,351 $ 191,854 The unrealized losses for all periods presented were principally attributable to changes in prevailing interest rates for similar types of securities and not deterioration in the creditworthiness of the issuer. Management evaluates securities for OTTI 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 the carrying value, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment 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 or other adverse developments in the status of the securities have occurred, and the results of reviews of the issuer's financial condition. As of March 31, 2018, there were no declines in the fair value of any of the securities reflected in the table above that were deemed by management to be OTTI.

5. Loans, Allowance for Loan Lo

5. Loans, Allowance for Loan Losses and Credit Quality	3 Months Ended
	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Note 5. Loans, Allowance for Loan Losses and Credit Quality	The composition of net loans as of the balance sheet dates was as follows: March 31, December 31, March 31, 2018 2017 2017 Commercial & industrial $ 76,968,888 $ 77,110,747 $ 69,064,985 Commercial real estate 210,135,736 207,044,227 205,140,487 Residential real estate - 1st lien 166,435,383 168,184,135 162,929,247 Residential real estate - Jr lien 45,459,718 45,256,862 41,820,775 Consumer 5,033,833 5,268,680 6,766,751 Gross Loans 504,033,558 502,864,651 485,722,245 Deduct (add): Allowance for loan losses 5,341,220 5,438,099 5,258,440 Deferred net loan costs (329,244 ) (318,651 ) (321,285 ) Net Loans $ 499,021,582 $ 497,745,203 $ 480,785,090 The following is an age analysis of loans (including non-accrual) as of the balance sheet dates, by portfolio segment: 90 Days or 90 Days Total Non-Accrual More and March 31, 2018 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 873,514 $ 44,813 $ 918,327 $ 76,050,561 $ 76,968,888 $ 185,012 $ 8,207 Commercial real estate 1,205,289 451,104 1,656,393 208,479,343 210,135,736 1,588,084 0 Residential real estate - 1st lien 3,837,705 961,601 4,799,306 161,636,077 166,435,383 1,518,759 466,704 - Jr lien 181,062 250,399 431,461 45,028,257 45,459,718 345,214 113,578 Consumer 35,090 0 35,090 4,998,743 5,033,833 0 0 $ 6,132,660 $ 1,707,917 $ 7,840,577 $ 496,192,981 $ 504,033,558 $ 3,637,069 $ 588,489 90 Days or 90 Days Total Non-Accrual More and December 31, 2017 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 308,712 $ 0 $ 308,712 $ 76,802,035 $ 77,110,747 $ 98,806 $ 0 Commercial real estate 1,482,982 418,255 1,901,237 205,142,990 207,044,227 1,065,385 0 Residential real estate - 1st lien 4,238,933 2,011,419 6,250,352 161,933,783 168,184,135 1,585,473 1,249,241 - Jr lien 156,101 168,517 324,618 44,932,244 45,256,862 346,912 0 Consumer 80,384 1,484 81,868 5,186,812 5,268,680 0 1,484 $ 6,267,112 $ 2,599,675 $ 8,866,787 $ 493,997,864 $ 502,864,651 $ 3,096,576 $ 1,250,725 90 Days or 90 Days Total Non-Accrual More and March 31, 2017 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 103,900 $ 0 $ 103,900 $ 68,961,085 $ 69,064,985 $ 135,379 $ 0 Commercial real estate 681,654 215,892 897,546 204,242,941 205,140,487 744,989 0 Residential real estate - 1st lien 4,289,551 1,246,520 5,536,071 157,393,176 162,929,247 1,148,848 668,569 - Jr lien 333,625 164,726 498,351 41,322,424 41,820,775 442,960 27,905 Consumer 84,321 1,903 86,224 6,680,527 6,766,751 0 1,903 $ 5,493,051 $ 1,629,041 $ 7,122,092 $ 478,600,153 $ 485,722,245 $ 2,472,176 $ 698,377 For all loan segments, loans over 30 days past due are considered delinquent. As of the balance sheet dates presented, residential mortgage loans in process of foreclosure consisted of the following: Number of loans Balance March 31, 2018 10 $ 694,509 December 31, 2017 10 791,944 March 31, 2017 6 330,548 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 and various qualitative factors and is stratified by the following loan segments: commercial and industrial, CRE, residential real estate 1st lien, residential real estate 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. Management uses an average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment in the current economic climate. During periods of economic stability, a relatively longer period (e.g., five years) may be appropriate. During periods of significant expansion or contraction, the Company may appropriately shorten the historical time period. The Company is currently using an extended look back period of five years. Qualitative factors include the 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 CRE loans. This evaluation is inherently subjective as it requires estimates that are susceptible to revision as more information becomes available. 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. The tables below summarize changes in the ALL and select loan information, by portfolio segment, for the periods indicated. As of or for the three months ended March 31, 2018 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 675,687 $ 2,674,029 $ 1,460,547 $ 316,982 $ 43,303 $ 267,551 $ 5,438,099 Charge-offs (88,894 ) (121,000 ) (33,072 ) (24,000 ) (33,630 ) 0 (300,596 ) Recoveries 5,014 0 8,858 435 9,410 0 23,717 Provision (credit) 74,853 113,675 (28,532 ) (4,125 ) 25,079 (950 ) 180,000 Ending balance $ 666,660 $ 2,666,704 $ 1,407,801 $ 289,292 $ 44,162 $ 266,601 $ 5,341,220 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 3,528 $ 120,264 $ 1,194 $ 0 $ 0 $ 124,986 Collectively 666,660 2,663,176 1,287,537 288,098 44,162 266,601 5,216,234 $ 666,660 $ 2,666,704 $ 1,407,801 $ 289,292 $ 44,162 $ 266,601 $ 5,341,220 Loans evaluated for impairment Individually $ 185,012 $ 1,605,948 $ 4,277,541 $ 272,506 $ 0 $ 6,341,007 Collectively 76,783,876 208,529,788 162,157,842 45,187,212 5,033,833 497,692,551 $ 76,968,888 $ 210,135,736 $ 166,435,383 $ 45,459,718 $ 5,033,833 $ 504,033,558 As of or for the year ended December 31, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Charge-offs (20,000 ) (160,207 ) (159,533 ) (118,359 ) (124,042 ) 0 (582,141 ) Recoveries 27,051 230 26,826 465 37,223 0 91,795 Provision (credit) (58,212 ) 337,921 223,497 63,700 46,149 36,945 650,000 Ending balance $ 675,687 $ 2,674,029 $ 1,460,547 $ 316,982 $ 43,303 $ 267,551 $ 5,438,099 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 69,015 $ 125,305 $ 26,353 $ 0 $ 0 $ 220,673 Collectively 675,687 2,605,014 1,335,242 290,629 43,303 267,551 5,217,426 $ 675,687 $ 2,674,029 $ 1,460,547 $ 316,982 $ 43,303 $ 267,551 $ 5,438,099 Loans evaluated for impairment Individually $ 98,806 $ 1,306,057 $ 4,075,666 $ 300,759 $ 0 $ 5,781,288 Collectively 77,011,941 205,738,170 164,108,469 44,956,103 5,268,680 497,083,363 $ 77,110,747 $ 207,044,227 $ 168,184,135 $ 45,256,862 $ 5,268,680 $ 502,864,651 As of or for the three months ended March 31, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Charge-offs (21,024 ) (160,207 ) (4,735 ) 0 (5,441 ) 0 (191,407 ) Recoveries 7,141 0 6,236 60 7,965 0 21,402 Provision (credit) 6,808 185,243 (58,463 ) (782 ) (25,175 ) 42,369 150,000 Ending balance $ 719,773 $ 2,521,121 $ 1,312,795 $ 370,454 $ 61,322 $ 272,975 $ 5,258,440 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 79,200 $ 3,900 $ 117,500 $ 0 $ 0 $ 200,600 Collectively 719,773 2,441,921 1,308,895 252,954 61,322 272,975 5,057,840 $ 719,773 $ 2,521,121 $ 1,312,795 $ 370,454 $ 61,322 $ 272,975 $ 5,258,440 Loans evaluated for impairment Individually $ 48,385 $ 807,282 $ 466,328 $ 222,080 $ 0 $ 1,544,075 Collectively 69,016,600 204,333,205 162,462,919 41,598,695 6,766,751 484,178,170 $ 69,064,985 $ 205,140,487 $ 162,929,247 $ 41,820,775 $ 6,766,751 $ 485,722,245 Impaired loans, by portfolio segment, were as follows: As of March 31, 2018 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment (1) Recognized(1) Related allowance recorded Commercial real estate $ 83,645 $ 225,681 $ 3,528 $ 183,567 $ 0 Residential real estate - 1st lien 793,881 834,267 120,264 751,122 7,682 - Jr lien 8,182 8,151 1,194 177,100 92 885,708 1,068,099 124,986 1,111,789 7,774 No related allowance recorded Commercial & industrial 185,012 450,039 103,193 0 Commercial real estate 1,523,166 1,658,923 1,316,216 4,064 Residential real estate - 1st lien 3,507,912 3,923,460 2,496,646 31,124 - Jr lien 264,355 438,777 169,390 0 5,480,445 6,471,199 4,085,445 35,188 $ 6,366,153 $ 7,539,298 $ 124,986 $ 5,197,234 $ 42,962 (1) For the three months ended March 31, 2018 In the table above, recorded investment of impaired loans as of March 31, 2018 includes accrued interest receivable and deferred net loan costs of $25,146. As of December 31, 2017 2017 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Related allowance recorded Commercial real estate $ 204,645 $ 225,681 $ 69,015 $ 210,890 $ 0 Residential real estate - 1st lien 798,226 837,766 125,305 646,799 29,262 - Jr lien 146,654 293,351 26,353 220,274 400 1,149,525 1,356,798 220,673 1,077,963 29,662 No related allowance recorded Commercial & industrial 98,806 136,590 75,868 72,426 Commercial real estate 1,102,859 1,226,040 1,105,030 237,792 Residential real estate - 1st lien 3,300,175 3,641,627 1,930,108 133,732 - Jr lien 154,116 154,423 116,519 16,574 4,655,956 5,158,680 3,227,525 460,524 $ 5,805,481 $ 6,515,478 $ 220,673 $ 4,305,488 $ 490,186 In the table above, recorded investment of impaired loans as of December 31, 2017 includes accrued interest receivable and deferred net loan costs of $24,193. As of March 31, 2017 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment(1) Related allowance recorded Commercial real estate $ 346,444 $ 379,243 $ 79,200 $ 283,351 Residential real estate - 1st lien 53,038 57,032 3,900 162,500 Residential real estate - Jr lien 222,080 284,931 117,500 223,067 621,562 721,206 200,600 668,918 No related allowance recorded Commercial & industrial 48,385 62,498 48,385 Commercial real estate 460,838 508,058 464,038 Residential real estate - 1st lien 413,290 485,577 544,069 922,513 1,056,133 1,056,492 $ 1,544,075 $ 1,777,339 $ 200,600 $ 1,725,410 (1) For the three months ended March 31, 2017 Interest income recognized on impaired loans was immaterial for the March 31, 2017 period presented. 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 considered by management to be 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 all the principal and interest amounts contractually due are brought current and future payments are considered by management to be reasonably assured. 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 segment, as of the balance sheet dates were as follows: As of March 31, 2018 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 74,829,100 $ 196,906,148 $ 163,625,382 $ 44,896,784 $ 5,033,833 $ 485,291,247 Group B 1,139,008 4,334,637 210,428 36,429 0 5,720,502 Group C 1,000,780 8,894,951 2,599,573 526,505 0 13,021,809 $ 76,968,888 $ 210,135,736 $ 166,435,383 $ 45,459,718 $ 5,033,833 $ 504,033,558 As of December 31, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 73,352,768 $ 194,066,034 $ 165,089,999 $ 44,687,951 $ 5,267,196 $ 482,463,948 Group B 617,526 4,609,847 282,671 37,598 0 5,547,642 Group C 3,140,453 8,368,346 2,811,465 531,313 1,484 14,853,061 $ 77,110,747 $ 207,044,227 $ 168,184,135 $ 45,256,862 $ 5,268,680 $ 502,864,651 As of March 31, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 66,610,036 $ 194,682,293 $ 160,911,670 $ 41,115,085 $ 6,764,848 $ 470,083,932 Group B 1,709,910 2,423,387 0 167,692 0 4,300,989 Group C 745,039 8,034,807 2,017,577 537,998 1,903 11,337,324 $ 69,064,985 $ 205,140,487 $ 162,929,247 $ 41,820,775 $ 6,766,751 $ 485,722,245 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. New TDRs, by portfolio segment, during the periods presented were as follows: Three months ended March 31, 2018 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Residential real estate - 1st lien 5 $ 682,791 $ 785,309 Year ended December 31, 2017 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Residential real estate - 1st lien 4 $ 256,353 $ 287,385 Three months ended March 31, 2017 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commercial & industrial 1 $ 41,857 $ 57,418 The TDRs for which there was a payment default during the twelve month periods presented were as follows: Twelve months ended March 31, 2018 Number of Recorded Contracts Investment Residential real estate – 1st lien 1 $ 87,696 Twelve months ended December 31, 2017 Number of Recorded Contracts Investment Residential real estate - 1st lien 1 $ 87,696 Twelve months ended March 31, 2017 Number of Recorded Contracts Investment Residential real estate - 1st lien 1 $ 64,218 Residential real estate - Jr lien 1 54,557 2 $ 118,775 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 are presented in the table below. March 31, December 31, March 31, 2018 2017 2017 Specific Allocation $ 124,986 $ 197,605 $ 83,100 As of the balance sheet dates, the Company evaluates whether it is contractually committed to lend additional funds to debtors with impaired, non-accrual or modified loans. The Company is contractually committed to lend on one SBA guaranteed line of credit to a borrower whose lending relationship was previously restructured.

6. Goodwill and Other Intangibl

6. Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Note 6. Goodwill and Other Intangible Assets	As a result of a merger with 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. The Company also initially recorded $4,161,000 of acquired identified intangible assets in the LyndonBank merger, representing the CDI which was subject to amortization as a non-interest expense over a ten year period and was fully amortized in 2017. Management evaluates goodwill for impairment annually. As of the date of the most recent evaluation (December 31, 2017), management concluded that no impairment existed.

7. Fair Value

7. Fair Value	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Note 7. 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 AFS and HTM: 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, repurchase agreements 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 and Liabilities 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: March 31, 2018 Level 2 Assets: (market approach) U.S. GSE debt securities $ 16,885,190 Agency MBS 16,681,943 Other investments 5,126,932 $ 38,694,065 December 31, 2017 Level 2 Assets: (market approach) U.S. GSE debt securities $ 17,158,742 Agency MBS 16,613,337 Other investments 4,678,574 $ 38,450,653 March 31, 2017 Level 2 Assets: (market approach) U.S. GSE debt securities $ 17,310,403 Agency MBS 13,557,523 Other investments 2,984,645 $ 33,852,571 There were no Level 1 or Level 3 assets or liabilities measured on a recurring basis as of the balance sheet dates presented, nor were there any transfers of assets between Levels during 2018 or 2017. Assets and Liabilities Recorded at Fair Value on a Non-Recurring Basis The following table includes assets measured at fair value on a non-recurring 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 5. Assets measured at fair value on a non-recurring basis and reflected in the consolidated balance sheets at the dates presented, segregated by fair value hierarchy, are summarized below: March 31, 2018 Level 2 Assets: (market approach) MSRs (1) $ 1,055,840 Impaired loans, net of related allowance 80,118 OREO 284,235 December 31, 2017 Level 2 Assets: (market approach) MSRs (1) $ 1,083,286 Impaired loans, net of related allowance 135,630 OREO 284,235 March 31, 2017 Level 2 Assets: (market approach) MSRs (1) $ 1,182,233 Impaired loans, net of related allowance 420,962 OREO 561,979 (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 as of the balance sheet dates presented. There were no Level 1 or Level 3 assets or liabilities measured on a non-recurring basis as of the balance sheet dates presented, nor were there any transfers of assets between Levels during 2018 or 2017. The estimated fair values of commitments to extend credit and letters of credit were immaterial as of the dates presented in the tables below. The estimated fair values of the Company's financial instruments were as follows: March 31, 2018 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 $ 41,470 $ 41,470 $ 0 $ 0 $ 41,470 Securities HTM 47,900 0 47,644 0 47,644 Securities AFS 38,694 0 38,694 0 38,694 Restricted equity securities 1,794 0 1,794 0 1,794 Loans and loans held-for-sale, net of ALL Commercial & industrial 76,261 0 0 76,248 76,248 Commercial real estate 207,358 0 80 206,326 206,406 Residential real estate - 1st lien 165,298 0 0 162,774 162,774 Residential real estate - Jr lien 45,147 0 0 44,630 44,630 Consumer 4,987 0 0 5,080 5,080 MSRs (1) 1,056 0 1,453 0 1,453 Accrued interest receivable 2,212 0 2,212 0 2,212 Financial liabilities: Deposits Other deposits 513,029 0 511,229 0 511,229 Brokered deposits 45,201 0 45,154 0 45,154 Long-term borrowings 3,550 0 3,157 0 3,157 Repurchase agreements 30,247 0 30,247 0 30,247 Capital lease obligations 354 0 354 0 354 Subordinated debentures 12,887 0 12,814 0 12,814 Accrued interest payable 110 0 110 0 110 (1) Reported fair value represents all MSRs for loans serviced by the Company at March 31, 2018, regardless of carrying amount. December 31, 2017 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 $ 42,654 $ 42,654 $ 0 $ 0 $ 42,654 Securities HTM 48,825 0 48,796 0 48,796 Securities AFS 38,451 0 38,451 0 38,451 Restricted equity securities 1,704 0 1,704 0 1,704 Loans and loans held-for-sale, net of ALL Commercial & industrial 76,394 0 0 76,799 76,799 Commercial real estate 204,260 0 136 204,697 204,833 Residential real estate - 1st lien 167,671 0 0 169,205 169,205 Residential real estate - Jr lien 44,916 0 0 45,207 45,207 Consumer 5,223 0 0 5,425 5,425 MSRs(1) 1,083 0 1,337 0 1,337 Accrued interest receivable 2,052 0 2,052 0 2,052 Financial liabilities: Deposits Other deposits 509,686 0 508,407 0 508,407 Brokered deposits 50,949 0 50,926 0 50,926 Long-term borrowings 3,550 0 3,191 0 3,191 Repurchase agreements 28,648 0 28,648 0 28,648 Capital lease obligations 382 0 382 0 382 Subordinated debentures 12,887 0 12,832 0 12,832 Accrued interest payable 101 0 101 0 101 (1) Reported fair value represents all MSRs for loans serviced by the Company at December 31, 2017, regardless of carrying amount. March 31, 2017 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 $ 32,789 $ 32,789 $ 0 $ 0 $ 32,789 Securities HTM 53,880 0 54,853 0 54,853 Securities AFS 33,853 0 33,853 0 33,853 Restricted equity securities 2,426 0 2,426 0 2,426 Loans and loans held-for-sale, net of ALL Commercial & industrial 68,306 0 48 68,936 68,984 Commercial real estate 202,504 0 728 203,903 204,631 Residential real estate - 1st lien 161,525 0 462 163,536 163,998 Residential real estate - Jr lien 41,427 0 105 41,822 41,927 Consumer 6,702 0 0 6,953 6,953 MSRs (1) 1,182 0 1,302 0 1,302 Accrued interest receivable 2,063 0 2,063 0 2,063 Financial liabilities: Deposits Other deposits 491,435 0 490,746 0 490,746 Brokered deposits 40,985 0 40,986 0 40,986 Short-term borrowings 10,000 0 9,998 0 9,998 Long-term borrowings 1,550 0 1,389 0 1,389 Repurchase agreements 27,747 0 27,747 0 27,747 Capital lease obligations 459 0 459 0 459 Subordinated debentures 12,887 0 12,846 0 12,846 Accrued interest payable 96 0 96 0 96 (1) Reported fair value represents all MSRs for loans serviced by the Company at March 31, 2017, regardless of carrying amount.

8. Loan Servicing

8. Loan Servicing	3 Months Ended
	Mar. 31, 2018
Transfers and Servicing of Financial Assets [Abstract]
Note 8. Loan Servicing	The following table shows the changes in the carrying amount of the MSRs, included in other assets in the consolidated balance sheets, for the periods indicated: Three Months Ended Year Ended Three Months Ended March 31, 2018 December 31, 2017 March 30, 2017 Balance at beginning of year $ 1,083,286 $ 1,210,695 $ 1,210,695 MSRs capitalized 20,494 109,297 28,466 MSRs amortized (47,940 ) (236,706 ) (56,928 ) Balance at end of period $ 1,055,840 $ 1,083,286 $ 1,182,233

9. Legal Proceedings

9. Legal Proceedings	3 Months Ended
	Mar. 31, 2018
Legal Proceedings
Note 9. Legal Proceedings	In the normal course of business, the Company and its subsidiary are involved in litigation that is considered incidental to their business. Management does not expect that any such litigation will be material to the Company's consolidated financial condition or results of operations.

10. Subsequent Event

10. Subsequent Event	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Note 10. Subsequent Event	The Company has evaluated events and transactions through the date that the financial statements were issued for potential recognition or disclosure in these financial statements, as required by GAAP. On March 14, 2018, the Company declared a cash dividend of $0.17 per common share payable May 1, 2018 to shareholders of record as of April 15, 2018. This dividend has been recorded as of the declaration date, including shares issuable under the DRIP.

1. Basis of Presentation and 17

1. Basis of Presentation and Consolidation (Policies)	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Consolidation	The interim consolidated financial statements of Community Bancorp. and Subsidiary are unaudited. All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments necessary for the fair presentation of the consolidated financial condition and results of operations of the Company and its subsidiary, Community National Bank (the Bank), contained herein have been made. The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2017 contained in the Company's Annual Report on Form 10-K. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full annual period ending December 31, 2018, or for any other interim period. Certain amounts in the 2017 unaudited consolidated income statements have been reclassified to conform to the 2018 presentation. Reclassifications had no effect on prior period net income or shareholders’ equity. In addition to the definitions provided elsewhere in this quarterly report, the definitions, acronyms and abbreviations identified below are used throughout this Form 10-Q, including Part I. “Financial Information” and Part II. “Other Information”, and is intended to aid the reader and provide a reference page when reviewing this Form 10Q. AFS: Available-for-sale FRBB: Federal Reserve Bank of Boston Agency MBS: MBS issued by a US government agency or GSE GAAP: Generally Accepted Accounting Principles in the United States ALCO: Asset Liability Committee GSE Government sponsored enterprise ALL: Allowance for loan losses HTM: Held-to-maturity ASC: Accounting Standards Codification ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ASU: Accounting Standards Update IRS: Internal Revenue Service BIC: Borrower-in-Custody JNE: Jobs for New England Board: Board of Directors Jr: Junior BOLI Bank owned life insurance MBS: Mortgage-backed security bp or bps: Basis point(s) MPF: Mortgage Partnership Finance CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network MSRs: Mortgage servicing rights CDs: Certificates of deposit NII: Net interest income CDI: Core deposit intangible OCI: Other comprehensive income (loss) CECL: Current Expected Credit Loss OREO: Other real estate owned CFSG: Community Financial Services Group OTTI: Other-than-temporary impairment CFSG Partners: Community Financial Services Partners, LLC PMI Private mortgage insurance Company: Community Bancorp. and Subsidiary RD: USDA Rural Development CRE: Commercial Real Estate SBA U.S. Small Business Administration DRIP: Dividend Reinvestment Plan SERP Supplemental Employee Retirement Plan Excha nge Act: Securities Exchange Act of 1934 SEC: U.S. Securities and Exchange Commission FASB: Financial Accounting Standards Board TDR: Troubled-debt restructuring FDIC: Federal Deposit Insurance Corporation USDA: U.S. Department of Agriculture FHLBB: Federal Home Loan Bank of Boston VA: U.S. Veterans Administration FHLMC Federal Home Loan Mortgage Corporation 2017 Tax Act: Tax Cut and Jobs Act of 2017 FRB: Federal Reserve Board
Recent Accounting Developments	The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers FASB formed a Transition Resource Group to assist it in identifying implementation issues that may require further clarification or amendment to ASU No. 2014-09. As a result of that group’s deliberations, FASB has issued several amendments, which became effective concurrently with ASU No. 2014-09, including ASU No. 2016-08, Principal versus Agent Considerations In January 2016, the FASB issued ASU 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. In February 2018, FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

3. Earnings per Common Share (T

3. Earnings per Common Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule Of Earnings Per Share	Three Months Ended March 31, 2018 2017 Net income, as reported $ 1,982,543 $ 1,414,216 Less: dividends to preferred shareholders 28,125 23,438 Net income available to common shareholders $ 1,954,418 $ 1,390,778 Weighted average number of common shares used in calculating earnings per share 5,117,009 5,063,128 Earnings per common share $ 0.38 $ 0.27

4. Investment Securities (Table

4. Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2018
Investment Securities
Schedule Of Available For Sale Securities	Gross Gross Amortized Unrealized Unrealized Fair Securities AFS Cost Gains Losses Value March 31, 2018 U.S. GSE debt securities $ 17,272,170 $ 0 $ 386,980 $ 16,885,190 Agency MBS 17,139,115 3,327 460,499 16,681,943 Other investments 5,203,000 0 76,068 5,126,932 $ 39,614,285 $ 3,327 $ 923,547 $ 38,694,065 December 31, 2017 U.S. GSE debt securities $ 17,308,229 $ 0 $ 149,487 $ 17,158,742 Agency MBS 16,782,380 11,144 180,187 16,613,337 Other investments 4,707,000 165 28,591 4,678,574 $ 38,797,609 $ 11,309 $ 358,265 $ 38,450,653 March 31, 2017 U.S. GSE debt securities $ 17,361,110 $ 18,840 $ 69,547 $ 17,310,403 Agency MBS 13,675,605 543 118,625 13,557,523 Other investments 2,973,000 15,327 3,682 2,984,645 $ 34,009,715 $ 34,710 $ 191,854 $ 33,852,571
Schedule Of Held to Maturity Securities	Gross Gross Amortized Unrealized Unrealized Fair Securities HTM Cost Gains Losses Value* March 31, 2018 States and political subdivisions $ 47,899,857 $ 275,801 $ 531,658 $ 47,644,000 December 31, 2017 States and political subdivisions $ 48,824,965 $ 0 $ 28,965 $ 48,796,000 March 31, 2017 States and political subdivisions $ 53,879,934 $ 973,066 $ 0 $ 54,853,000
Schedule of Maturities of Debt Securities Available for Sale	Amortized Fair Cost Value March 31, 2018 $ 39,614,284 $ 38,694,065 December 31, 2017 38,797,609 38,450,653 March 31, 2017 33,265,715 33,112,253 Amortized Fair Cost Value March 31, 2018 Due in one year or less $ 2,250,000 $ 2,242,195 Due from one to five years 11,766,268 11,548,006 Due from five to ten years 8,458,902 8,221,921 Agency MBS 17,139,115 16,681,943 $ 39,614,285 $ 38,694,065 December 31, 2017 Due in one year or less $ 3,749,956 $ 3,739,512 Due from one to five years 11,275,824 11,168,065 Due from five to ten years 6,989,449 6,929,739 Agency MBS 16,782,380 16,613,337 $ 38,797,609 $ 38,450,653 March 31, 2017 Due in one year or less $ 3,002,965 $ 3,006,801 Due from one to five years 16,086,145 16,070,906 Due from five to ten years 1,245,000 1,217,341 Agency MBS 13,675,605 13,557,523 $ 34,009,715 $ 33,852,571
Schedule Of Maturities of Debt Securities Held to Maturity	Amortized Fair Cost Value* March 31, 2018 Due in one year or less $ 23,788,327 $ 23,788,000 Due from one to five years 4,638,586 4,575,000 Due from five to ten years 4,450,931 4,331,000 Due after ten years 15,022,013 14,894,000 $ 47,899,857 $ 47,644,000 December 31, 2017 Due in one year or less $ 24,817,334 $ 24,817,000 Due from one to five years 4,494,343 4,487,000 Due from five to ten years 4,338,246 4,331,000 Due after ten years 15,175,042 15,161,000 $ 48,824,965 $ 48,796,000 March 31, 2017 Due in one year or less $ 29,666,554 $ 29,667,000 Due from one to five years 3,905,257 4,148,000 Due from five to ten years 3,950,402 4,194,000 Due after ten years 16,357,721 16,844,000 $ 53,879,934 $ 54,853,000
Schedule Of Unrealized Loss	Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Number of Fair Unrealized Value Loss Value Loss Securities Value Loss March 31, 2018 U.S. GSE debt securities $ 12,997,086 $ 275,084 $ 3,888,103 $ 111,896 15 $ 16,885,189 $ 386,980 Agency MBS 10,987,068 298,918 4,237,057 161,581 21 15,224,125 460,499 Other investments 4,146,288 67,711 487,644 8,357 16 4,633,932 76,068 State and political subdivisions 44,235,977 531,658 0 0 121 44,235,977 531,658 $ 72,366,419 $ 1,173,371 $ 8,612,804 $ 281,834 173 $ 80,979,223 $ 1,455,205 December 31, 2017 U.S. GSE debt securities $ 13,223,739 $ 84,490 $ 3,935,003 $ 64,997 15 $ 17,158,742 $ 149,487 Agency MBS 9,251,323 105,063 4,542,446 75,124 21 13,793,769 180,187 Other investments 3,692,571 25,429 244,838 3,162 16 3,937,409 28,591 State and political subdivisions 22,530,141 28,965 0 0 79 22,530,141 28,965 $ 48,697,774 $ 243,947 $ 8,722,287 $ 143,283 131 $ 57,420,061 $ 387,230 March 31, 2017 U.S. GSE debt securities $ 6,179,311 $ 69,547 $ 0 $ 0 5 $ 6,179,311 $ 69,547 Agency MBS 12,018,209 104,677 1,048,513 13,948 3 13,066,722 118,625 Other investments 740,318 3,682 0 0 18 740,318 3,682 $ 18,937,838 $ 177,906 $ 1,048,513 $ 13,948 26 $ 19,986,351 $ 191,854

5. Loans, Allowance for Loan 20

5. Loans, Allowance for Loan Losses and Credit Quality (Tables)	3 Months Ended
	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Composition of net loans	March 31, December 31, March 31, 2018 2017 2017 Commercial & industrial $ 76,968,888 $ 77,110,747 $ 69,064,985 Commercial real estate 210,135,736 207,044,227 205,140,487 Residential real estate - 1st lien 166,435,383 168,184,135 162,929,247 Residential real estate - Jr lien 45,459,718 45,256,862 41,820,775 Consumer 5,033,833 5,268,680 6,766,751 Gross Loans 504,033,558 502,864,651 485,722,245 Deduct (add): Allowance for loan losses 5,341,220 5,438,099 5,258,440 Deferred net loan costs (329,244 ) (318,651 ) (321,285 ) Net Loans $ 499,021,582 $ 497,745,203 $ 480,785,090
Past due loans by segment	90 Days or 90 Days Total Non-Accrual More and March 31, 2018 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 873,514 $ 44,813 $ 918,327 $ 76,050,561 $ 76,968,888 $ 185,012 $ 8,207 Commercial real estate 1,205,289 451,104 1,656,393 208,479,343 210,135,736 1,588,084 0 Residential real estate - 1st lien 3,837,705 961,601 4,799,306 161,636,077 166,435,383 1,518,759 466,704 - Jr lien 181,062 250,399 431,461 45,028,257 45,459,718 345,214 113,578 Consumer 35,090 0 35,090 4,998,743 5,033,833 0 0 $ 6,132,660 $ 1,707,917 $ 7,840,577 $ 496,192,981 $ 504,033,558 $ 3,637,069 $ 588,489 90 Days or 90 Days Total Non-Accrual More and December 31, 2017 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 308,712 $ 0 $ 308,712 $ 76,802,035 $ 77,110,747 $ 98,806 $ 0 Commercial real estate 1,482,982 418,255 1,901,237 205,142,990 207,044,227 1,065,385 0 Residential real estate - 1st lien 4,238,933 2,011,419 6,250,352 161,933,783 168,184,135 1,585,473 1,249,241 - Jr lien 156,101 168,517 324,618 44,932,244 45,256,862 346,912 0 Consumer 80,384 1,484 81,868 5,186,812 5,268,680 0 1,484 $ 6,267,112 $ 2,599,675 $ 8,866,787 $ 493,997,864 $ 502,864,651 $ 3,096,576 $ 1,250,725 90 Days or 90 Days Total Non-Accrual More and March 31, 2017 30-89 Days or More Past Due Current Total Loans Loans Accruing Commercial & industrial $ 103,900 $ 0 $ 103,900 $ 68,961,085 $ 69,064,985 $ 135,379 $ 0 Commercial real estate 681,654 215,892 897,546 204,242,941 205,140,487 744,989 0 Residential real estate - 1st lien 4,289,551 1,246,520 5,536,071 157,393,176 162,929,247 1,148,848 668,569 - Jr lien 333,625 164,726 498,351 41,322,424 41,820,775 442,960 27,905 Consumer 84,321 1,903 86,224 6,680,527 6,766,751 0 1,903 $ 5,493,051 $ 1,629,041 $ 7,122,092 $ 478,600,153 $ 485,722,245 $ 2,472,176 $ 698,377
Residential mortgage loans in process of foreclosure	Number of loans Balance March 31, 2018 10 $ 694,509 December 31, 2017 10 791,944 March 31, 2017 6 330,548
Changes in the allowance for loan losses	As of or for the three months ended March 31, 2018 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 675,687 $ 2,674,029 $ 1,460,547 $ 316,982 $ 43,303 $ 267,551 $ 5,438,099 Charge-offs (88,894 ) (121,000 ) (33,072 ) (24,000 ) (33,630 ) 0 (300,596 ) Recoveries 5,014 0 8,858 435 9,410 0 23,717 Provision (credit) 74,853 113,675 (28,532 ) (4,125 ) 25,079 (950 ) 180,000 Ending balance $ 666,660 $ 2,666,704 $ 1,407,801 $ 289,292 $ 44,162 $ 266,601 $ 5,341,220 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 3,528 $ 120,264 $ 1,194 $ 0 $ 0 $ 124,986 Collectively 666,660 2,663,176 1,287,537 288,098 44,162 266,601 5,216,234 $ 666,660 $ 2,666,704 $ 1,407,801 $ 289,292 $ 44,162 $ 266,601 $ 5,341,220 Loans evaluated for impairment Individually $ 185,012 $ 1,605,948 $ 4,277,541 $ 272,506 $ 0 $ 6,341,007 Collectively 76,783,876 208,529,788 162,157,842 45,187,212 5,033,833 497,692,551 $ 76,968,888 $ 210,135,736 $ 166,435,383 $ 45,459,718 $ 5,033,833 $ 504,033,558 As of or for the year ended December 31, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Charge-offs (20,000 ) (160,207 ) (159,533 ) (118,359 ) (124,042 ) 0 (582,141 ) Recoveries 27,051 230 26,826 465 37,223 0 91,795 Provision (credit) (58,212 ) 337,921 223,497 63,700 46,149 36,945 650,000 Ending balance $ 675,687 $ 2,674,029 $ 1,460,547 $ 316,982 $ 43,303 $ 267,551 $ 5,438,099 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 69,015 $ 125,305 $ 26,353 $ 0 $ 0 $ 220,673 Collectively 675,687 2,605,014 1,335,242 290,629 43,303 267,551 5,217,426 $ 675,687 $ 2,674,029 $ 1,460,547 $ 316,982 $ 43,303 $ 267,551 $ 5,438,099 Loans evaluated for impairment Individually $ 98,806 $ 1,306,057 $ 4,075,666 $ 300,759 $ 0 $ 5,781,288 Collectively 77,011,941 205,738,170 164,108,469 44,956,103 5,268,680 497,083,363 $ 77,110,747 $ 207,044,227 $ 168,184,135 $ 45,256,862 $ 5,268,680 $ 502,864,651 As of or for the three months ended March 31, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Unallocated Total Allowance for loan losses Beginning balance $ 726,848 $ 2,496,085 $ 1,369,757 $ 371,176 $ 83,973 $ 230,606 $ 5,278,445 Charge-offs (21,024 ) (160,207 ) (4,735 ) 0 (5,441 ) 0 (191,407 ) Recoveries 7,141 0 6,236 60 7,965 0 21,402 Provision (credit) 6,808 185,243 (58,463 ) (782 ) (25,175 ) 42,369 150,000 Ending balance $ 719,773 $ 2,521,121 $ 1,312,795 $ 370,454 $ 61,322 $ 272,975 $ 5,258,440 Allowance for loan losses Evaluated for impairment Individually $ 0 $ 79,200 $ 3,900 $ 117,500 $ 0 $ 0 $ 200,600 Collectively 719,773 2,441,921 1,308,895 252,954 61,322 272,975 5,057,840 $ 719,773 $ 2,521,121 $ 1,312,795 $ 370,454 $ 61,322 $ 272,975 $ 5,258,440 Loans evaluated for impairment Individually $ 48,385 $ 807,282 $ 466,328 $ 222,080 $ 0 $ 1,544,075 Collectively 69,016,600 204,333,205 162,462,919 41,598,695 6,766,751 484,178,170 $ 69,064,985 $ 205,140,487 $ 162,929,247 $ 41,820,775 $ 6,766,751 $ 485,722,245
Impaired loans by segment	As of March 31, 2018 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment (1) Recognized(1) Related allowance recorded Commercial real estate $ 83,645 $ 225,681 $ 3,528 $ 183,567 $ 0 Residential real estate - 1st lien 793,881 834,267 120,264 751,122 7,682 - Jr lien 8,182 8,151 1,194 177,100 92 885,708 1,068,099 124,986 1,111,789 7,774 No related allowance recorded Commercial & industrial 185,012 450,039 103,193 0 Commercial real estate 1,523,166 1,658,923 1,316,216 4,064 Residential real estate - 1st lien 3,507,912 3,923,460 2,496,646 31,124 - Jr lien 264,355 438,777 169,390 0 5,480,445 6,471,199 4,085,445 35,188 $ 6,366,153 $ 7,539,298 $ 124,986 $ 5,197,234 $ 42,962 (1) For the three months ended March 31, 2018 In the table above, recorded investment of impaired loans as of March 31, 2018 includes accrued interest receivable and deferred net loan costs of $25,146. As of December 31, 2017 2017 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Related allowance recorded Commercial real estate $ 204,645 $ 225,681 $ 69,015 $ 210,890 $ 0 Residential real estate - 1st lien 798,226 837,766 125,305 646,799 29,262 - Jr lien 146,654 293,351 26,353 220,274 400 1,149,525 1,356,798 220,673 1,077,963 29,662 No related allowance recorded Commercial & industrial 98,806 136,590 75,868 72,426 Commercial real estate 1,102,859 1,226,040 1,105,030 237,792 Residential real estate - 1st lien 3,300,175 3,641,627 1,930,108 133,732 - Jr lien 154,116 154,423 116,519 16,574 4,655,956 5,158,680 3,227,525 460,524 $ 5,805,481 $ 6,515,478 $ 220,673 $ 4,305,488 $ 490,186 In the table above, recorded investment of impaired loans as of December 31, 2017 includes accrued interest receivable and deferred net loan costs of $24,193. As of March 31, 2017 Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment(1) Related allowance recorded Commercial real estate $ 346,444 $ 379,243 $ 79,200 $ 283,351 Residential real estate - 1st lien 53,038 57,032 3,900 162,500 Residential real estate - Jr lien 222,080 284,931 117,500 223,067 621,562 721,206 200,600 668,918 No related allowance recorded Commercial & industrial 48,385 62,498 48,385 Commercial real estate 460,838 508,058 464,038 Residential real estate - 1st lien 413,290 485,577 544,069 922,513 1,056,133 1,056,492 $ 1,544,075 $ 1,777,339 $ 200,600 $ 1,725,410 (1) For the three months ended March 31, 2017
Risk ratings	As of March 31, 2018 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 74,829,100 $ 196,906,148 $ 163,625,382 $ 44,896,784 $ 5,033,833 $ 485,291,247 Group B 1,139,008 4,334,637 210,428 36,429 0 5,720,502 Group C 1,000,780 8,894,951 2,599,573 526,505 0 13,021,809 $ 76,968,888 $ 210,135,736 $ 166,435,383 $ 45,459,718 $ 5,033,833 $ 504,033,558 As of December 31, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 73,352,768 $ 194,066,034 $ 165,089,999 $ 44,687,951 $ 5,267,196 $ 482,463,948 Group B 617,526 4,609,847 282,671 37,598 0 5,547,642 Group C 3,140,453 8,368,346 2,811,465 531,313 1,484 14,853,061 $ 77,110,747 $ 207,044,227 $ 168,184,135 $ 45,256,862 $ 5,268,680 $ 502,864,651 As of March 31, 2017 Residential Residential Commercial Commercial Real Estate Real Estate & Industrial Real Estate 1st Lien Jr Lien Consumer Total Group A $ 66,610,036 $ 194,682,293 $ 160,911,670 $ 41,115,085 $ 6,764,848 $ 470,083,932 Group B 1,709,910 2,423,387 0 167,692 0 4,300,989 Group C 745,039 8,034,807 2,017,577 537,998 1,903 11,337,324 $ 69,064,985 $ 205,140,487 $ 162,929,247 $ 41,820,775 $ 6,766,751 $ 485,722,245
Loans modified as TDRs	Three months ended March 31, 2018 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Residential real estate - 1st lien 5 $ 682,791 $ 785,309 Year ended December 31, 2017 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Residential real estate - 1st lien 4 $ 256,353 $ 287,385 Three months ended March 31, 2017 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment Commercial & industrial 1 $ 41,857 $ 57,418
TDRs payment default	Twelve months ended March 31, 2018 Number of Recorded Contracts Investment Residential real estate – 1st lien 1 $ 87,696 Twelve months ended December 31, 2017 Number of Recorded Contracts Investment Residential real estate - 1st lien 1 $ 87,696 Twelve months ended March 31, 2017 Number of Recorded Contracts Investment Residential real estate - 1st lien 1 $ 64,218 Residential real estate - Jr lien 1 54,557 2 $ 118,775
Specific allowances	March 31, December 31, March 31, 2018 2017 2017 Specific Allocation $ 124,986 $ 197,605 $ 83,100

7. Fair Value (Tables)

7. Fair Value (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Schedule Of Fair Value Assets and Liabilities On Recurring Basis	March 31, 2018 Level 2 Assets: (market approach) U.S. GSE debt securities $ 16,885,190 Agency MBS 16,681,943 Other investments 5,126,932 $ 38,694,065 December 31, 2017 Level 2 Assets: (market approach) U.S. GSE debt securities $ 17,158,742 Agency MBS 16,613,337 Other investments 4,678,574 $ 38,450,653 March 31, 2017 Level 2 Assets: (market approach) U.S. GSE debt securities $ 17,310,403 Agency MBS 13,557,523 Other investments 2,984,645 $ 33,852,571
Schedule of Fair Value Assets and Liabilities Non-recurring Basis	March 31, 2018 Level 2 Assets: (market approach) MSRs (1) $ 1,055,840 Impaired loans, net of related allowance 80,118 OREO 284,235 December 31, 2017 Level 2 Assets: (market approach) MSRs (1) $ 1,083,286 Impaired loans, net of related allowance 135,630 OREO 284,235 March 31, 2017 Level 2 Assets: (market approach) MSRs (1) $ 1,182,233 Impaired loans, net of related allowance 420,962 OREO 561,979
Schedule Of Estimated Fair Values Of Financial Instruments	March 31, 2018 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 $ 41,470 $ 41,470 $ 0 $ 0 $ 41,470 Securities HTM 47,900 0 47,644 0 47,644 Securities AFS 38,694 0 38,694 0 38,694 Restricted equity securities 1,794 0 1,794 0 1,794 Loans and loans held-for-sale, net of ALL Commercial & industrial 76,261 0 0 76,248 76,248 Commercial real estate 207,358 0 80 206,326 206,406 Residential real estate - 1st lien 165,298 0 0 162,774 162,774 Residential real estate - Jr lien 45,147 0 0 44,630 44,630 Consumer 4,987 0 0 5,080 5,080 MSRs (1) 1,056 0 1,453 0 1,453 Accrued interest receivable 2,212 0 2,212 0 2,212 Financial liabilities: Deposits Other deposits 513,029 0 511,229 0 511,229 Brokered deposits 45,201 0 45,154 0 45,154 Long-term borrowings 3,550 0 3,157 0 3,157 Repurchase agreements 30,247 0 30,247 0 30,247 Capital lease obligations 354 0 354 0 354 Subordinated debentures 12,887 0 12,814 0 12,814 Accrued interest payable 110 0 110 0 110 (1) Reported fair value represents all MSRs for loans serviced by the Company at March 31, 2018, regardless of carrying amount. December 31, 2017 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 $ 42,654 $ 42,654 $ 0 $ 0 $ 42,654 Securities HTM 48,825 0 48,796 0 48,796 Securities AFS 38,451 0 38,451 0 38,451 Restricted equity securities 1,704 0 1,704 0 1,704 Loans and loans held-for-sale, net of ALL Commercial & industrial 76,394 0 0 76,799 76,799 Commercial real estate 204,260 0 136 204,697 204,833 Residential real estate - 1st lien 167,671 0 0 169,205 169,205 Residential real estate - Jr lien 44,916 0 0 45,207 45,207 Consumer 5,223 0 0 5,425 5,425 MSRs(1) 1,083 0 1,337 0 1,337 Accrued interest receivable 2,052 0 2,052 0 2,052 Financial liabilities: Deposits Other deposits 509,686 0 508,407 0 508,407 Brokered deposits 50,949 0 50,926 0 50,926 Long-term borrowings 3,550 0 3,191 0 3,191 Repurchase agreements 28,648 0 28,648 0 28,648 Capital lease obligations 382 0 382 0 382 Subordinated debentures 12,887 0 12,832 0 12,832 Accrued interest payable 101 0 101 0 101 (1) Reported fair value represents all MSRs for loans serviced by the Company at December 31, 2017, regardless of carrying amount. March 31, 2017 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 $ 32,789 $ 32,789 $ 0 $ 0 $ 32,789 Securities HTM 53,880 0 54,853 0 54,853 Securities AFS 33,853 0 33,853 0 33,853 Restricted equity securities 2,426 0 2,426 0 2,426 Loans and loans held-for-sale, net of ALL Commercial & industrial 68,306 0 48 68,936 68,984 Commercial real estate 202,504 0 728 203,903 204,631 Residential real estate - 1st lien 161,525 0 462 163,536 163,998 Residential real estate - Jr lien 41,427 0 105 41,822 41,927 Consumer 6,702 0 0 6,953 6,953 MSRs (1) 1,182 0 1,302 0 1,302 Accrued interest receivable 2,063 0 2,063 0 2,063 Financial liabilities: Deposits Other deposits 491,435 0 490,746 0 490,746 Brokered deposits 40,985 0 40,986 0 40,986 Short-term borrowings 10,000 0 9,998 0 9,998 Long-term borrowings 1,550 0 1,389 0 1,389 Repurchase agreements 27,747 0 27,747 0 27,747 Capital lease obligations 459 0 459 0 459 Subordinated debentures 12,887 0 12,846 0 12,846 Accrued interest payable 96 0 96 0 96 (1) Reported fair value represents all MSRs for loans serviced by the Company at March 31, 2017, regardless of carrying amount.

8. Loan Servicing (Tables)

8. Loan Servicing (Tables)	3 Months Ended
	Mar. 31, 2018
Transfers and Servicing of Financial Assets [Abstract]
Schedule Of Mortgage Servicing Rights	Three Months Ended Year Ended Three Months Ended March 31, 2018 December 31, 2017 March 30, 2017 Balance at beginning of year $ 1,083,286 $ 1,210,695 $ 1,210,695 MSRs capitalized 20,494 109,297 28,466 MSRs amortized (47,940 ) (236,706 ) (56,928 ) Balance at end of period $ 1,055,840 $ 1,083,286 $ 1,182,233

3. Earnings per Common Share (D

3. Earnings per Common Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income, as reported	$ 1,982,543	$ 1,414,216
Less: dividends to preferred shareholders	28,125	23,438
Net income available to common shareholders	$ 1,954,418	$ 1,390,778
Weighted average number of common shares used in calculating earnings per share	5,117,009	5,063,128
Earnings per common share	$ 0.38	$ 0.27

4. Investment Securities (Detai

4. Investment Securities (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Available for sale Securities
Amortized Cost - Available for sale Securities	$ 39,614,285	$ 34,009,715	$ 38,797,609
Gross Unrealized Gains - Available for sale Securities	3,327	34,710	11,309
Gross Unrealized Losses - Available for sale Securities	923,547	191,854	358,265
Fair Value - Available for sale Securities	38,694,065	33,852,571	38,450,653
U.S. GSE debt securities
Available for sale Securities
Amortized Cost - Available for sale Securities	17,272,170	17,361,110	17,308,229
Gross Unrealized Gains - Available for sale Securities	0	18,840	0
Gross Unrealized Losses - Available for sale Securities	386,980	69,547	149,487
Fair Value - Available for sale Securities	16,885,190	17,310,403	17,158,742
Agency mortgage-backed securities (Agency MBS)
Available for sale Securities
Amortized Cost - Available for sale Securities	17,139,115	13,675,605	16,782,380
Gross Unrealized Gains - Available for sale Securities	3,327	543	11,144
Gross Unrealized Losses - Available for sale Securities	460,499	118,625	180,187
Fair Value - Available for sale Securities	16,681,943	13,557,523	16,613,337
Other investments
Available for sale Securities
Amortized Cost - Available for sale Securities	5,203,000	2,973,000	4,707,000
Gross Unrealized Gains - Available for sale Securities	0	15,327	165
Gross Unrealized Losses - Available for sale Securities	76,068	3,682	28,591
Fair Value - Available for sale Securities	$ 5,126,932	$ 2,984,645	$ 4,678,574

4. Investment Securities (Det25

4. Investment Securities (Details 1) - USD ($)		3 Months Ended		12 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Held-to-Maturity Securities
Fair Value - Held-to-Maturity		$ 47,644,000	$ 54,853,000	$ 48,796,000
States and political subdivisions [Member]
Held-to-Maturity Securities
Amortized Cost - Held-to-Maturity		47,899,857	53,879,934	48,824,965
Gross Unrealized Gains - Held-to-Maturity		275,801	973,066	0
Gross Unrealized Losses - Held-to-Maturity		531,658	0	28,965
Fair Value - Held-to-Maturity	[1]	$ 47,644,000	$ 54,853,000	$ 48,796,000
[1]	Method used to determine fair value of HTM securities rounds values to nearest thousand.

4. Investment Securities (Det26

4. Investment Securities (Details 2) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Investment Securities Details 2
Book value of available for sale securities, pledged as collateral for repurchase agreements	$ 39,614,284	$ 38,797,609	$ 33,265,715
Fair value of available for sale securities, pledged as collateral for repurchase agreements	$ 38,694,065	$ 38,450,653	$ 33,112,253

4. Investment Securities (Det27

4. Investment Securities (Details 3) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Available for sale Securities
Amortized Cost
Due in one year or less, Amortized Cost	$ 2,250,000	$ 3,749,956	$ 3,002,965
Due from one to five years, Amortized Cost	11,766,268	11,275,824	16,086,145
Due from five to ten years	8,458,902	6,989,449	1,245,000
Agency MBS	17,139,115	16,782,380	13,675,605
Amortization Cost of Debt	39,614,285	38,797,609	34,009,715
Fair Value
Due in one year or less, fair value	2,242,195	3,739,512	3,006,801
Due from one to five years, fair value	11,548,006	11,168,065	16,070,906
Due from five to ten years, fair value	8,221,921	6,929,739	1,217,341
Agency MBS	16,681,943	16,613,337	13,557,523
Fair value of debt	38,694,065	38,450,653	33,852,571
Held to maturity Securities
Amortized Cost
Due in one year or less, Amortized Cost	23,788,327	24,817,334	29,666,554
Due from one to five years, Amortized Cost	4,638,586	4,494,343	3,905,257
Due from five to ten years, Amortized Cost	4,450,931	4,338,246	3,950,402
Due after ten years, Amortized Cost	15,022,013	15,175,042	16,357,721
Amortization Cost of Debt	47,899,857	48,824,965	53,879,934
Fair Value
Due in one year or less, fair value	23,788,000	24,817,000	29,667,000
Due from one to five years, fair value	4,575,000	4,487,000	4,148,000
Due from five to ten years, fair value	4,331,000	4,331,000	4,194,000
Due after ten years, fair value	14,894,000	15,161,000	16,844,000
Fair value of debt	$ 47,644,000	$ 48,796,000	$ 54,853,000

4. Investment Securities (Det28

4. Investment Securities (Details 4)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)integer	Mar. 31, 2017USD ($)integer	Dec. 31, 2017USD ($)integer
Available for sale - Unrealized Loss	$ 923,547	$ 191,854	$ 358,265
Fair Value Less than 12 months	72,366,419	18,937,838	48,697,774
Unrealized Loss Less than 12 months	1,173,371	177,906	243,947
Fair Value 12 months or more	8,612,804	1,048,513	8,722,287
Unrealized Loss 12 months or more	$ 281,834	$ 13,948	$ 143,283
Number of Securities | integer	173	26	131
Fair Value	$ 80,979,223	$ 19,986,351	$ 57,420,061
Unrealized Loss	1,455,205	191,854	387,230
U.S. GSE debt securities
Available for sale - Fair Value Less than 12 months	12,997,086	6,179,311	13,223,739
Available for sale - Unrealized Loss Less than 12 months	275,084	69,547	84,490
Available for sale - Fair Value 12 months or more	3,888,103	0	3,935,003
Available for sale - Unrealized Loss 12 months or more	$ 111,896	$ 0	$ 64,997
Available for sale - Number of Securities | integer	15	5	15
Available for sale - Fair Value	$ 16,885,189	$ 6,179,311	$ 17,158,742
Available for sale - Unrealized Loss	386,980	69,547	149,487
Agency mortgage-backed securities (Agency MBS)
Available for sale - Fair Value Less than 12 months	10,987,068	12,018,209	9,251,323
Available for sale - Unrealized Loss Less than 12 months	298,918	104,677	105,063
Available for sale - Fair Value 12 months or more	4,237,057	1,048,513	4,542,446
Available for sale - Unrealized Loss 12 months or more	$ 161,581	$ 13,948	$ 75,124
Available for sale - Number of Securities | integer	21	3	21
Available for sale - Fair Value	$ 15,224,125	$ 13,066,722	$ 13,793,769
Available for sale - Unrealized Loss	460,499	118,625	180,187
Other investments
Available for sale - Fair Value Less than 12 months	4,146,288	740,318	3,692,571
Available for sale - Unrealized Loss Less than 12 months	67,711	3,682	25,429
Available for sale - Fair Value 12 months or more	487,644	0	244,838
Available for sale - Unrealized Loss 12 months or more	$ 8,357	$ 0	$ 3,162
Available for sale - Number of Securities | integer	16	18	16
Available for sale - Fair Value	$ 4,633,932	$ 740,318	$ 3,937,409
Available for sale - Unrealized Loss	76,068	$ 3,682	28,591
States and political subdivisions [Member]
Held-to-maturity - Fair Value Less than 12 months	44,235,977		22,530,141
Held-to-maturity -Unrealized Loss Less than 12 months	531,658		28,965
Held-to-maturity -Fair Value 12 months or more	0		0
Held-to-maturity - Unrealized Loss 12 months or more	$ 0		$ 0
Held-to-maturity - Number of Securities | integer	121		79
Held-to-maturity - Fair Value	$ 44,235,977		$ 22,530,141
Held-to-maturity - Unrealized Loss	$ 531,658		$ 28,965

5. Loans, Allowance for Loan 29

5. Loans, Allowance for Loan Losses and Credit Quality (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Loans and Leases Receivable Disclosure [Abstract]
Commercial & industrial	$ 76,968,888	$ 77,110,747	$ 69,064,985
Commercial real estate	210,135,736	207,044,227	205,140,487
Residential real estate - 1st lien	166,435,383	168,184,135	162,929,247
Residential real estate -Junior (Jr) lien	45,459,718	45,256,862	41,820,775
Consumer	5,033,833	5,268,680	6,766,751
Gross Loans	504,033,558	502,864,651	485,722,245
Deduct (add):
Allowance for loan losses	5,341,220	5,438,099	5,258,440	$ 5,278,445
Deferred net loan costs	(329,244)	(318,651)	(321,285)
Net loans	$ 499,021,582	$ 497,745,203	$ 480,785,090

5. Loans, Allowance for Loan 30

5. Loans, Allowance for Loan Losses and Credit Quality (Details 1) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
30-89 Days	$ 6,132,660	$ 6,267,112	$ 5,493,051
90 Days or more	1,707,917	2,599,675	1,629,041
Total Past Due	7,840,577	8,866,787	7,122,092
Current	496,192,981	493,997,864	478,600,153
Total Loans	504,033,558	502,864,651	485,722,245
Non-Accrual Loans	3,637,069	3,096,576	2,472,176
90 Days or More and Accruing	588,489	1,250,725	698,377
Commercial and industrial
30-89 Days	873,514	308,712	103,900
90 Days or more	44,813	0	0
Total Past Due	918,327	308,712	103,900
Current	76,050,561	76,802,035	68,961,085
Total Loans	76,968,888	77,110,747	69,064,985
Non-Accrual Loans	185,012	98,806	135,379
90 Days or More and Accruing	8,207	0	0
Commercial Real Estate
30-89 Days	1,205,289	1,482,982	681,654
90 Days or more	451,104	418,255	215,892
Total Past Due	1,656,393	1,901,237	897,546
Current	208,479,343	205,142,990	204,242,941
Total Loans	210,135,736	207,044,227	205,140,487
Non-Accrual Loans	1,588,084	1,065,385	744,989
90 Days or More and Accruing	0	0	0
Residential real estate - 1st lien
30-89 Days	3,837,705	4,238,933	4,289,551
90 Days or more	961,601	2,011,419	1,246,520
Total Past Due	4,799,306	6,250,352	5,536,071
Current	161,636,077	161,933,783	157,393,176
Total Loans	166,435,383	168,184,135	162,929,247
Non-Accrual Loans	1,518,759	1,585,473	1,148,848
90 Days or More and Accruing	466,704	1,249,241	668,569
Residential real estate - Jr lien
30-89 Days	181,062	156,101	333,625
90 Days or more	250,399	168,517	164,726
Total Past Due	431,461	324,618	498,351
Current	45,028,257	44,932,244	41,322,424
Total Loans	45,459,718	45,256,862	41,820,775
Non-Accrual Loans	345,214	346,912	442,960
90 Days or More and Accruing	113,578	0	27,905
Consumer
30-89 Days	35,090	80,384	84,321
90 Days or more	0	1,484	1,903
Total Past Due	35,090	81,868	86,224
Current	4,998,743	5,186,812	6,680,527
Total Loans	5,033,833	5,268,680	6,766,751
Non-Accrual Loans	0	0	0
90 Days or More and Accruing	$ 0	$ 1,484	$ 1,903

5. Loans, Allowance for Loan 31

5. Loans, Allowance for Loan Losses and Credit Quality (Details 2)	Mar. 31, 2018USD ($)integer	Dec. 31, 2017USD ($)integer	Mar. 31, 2017USD ($)integer
Loans Allowance For Loan Losses And Credit Quality Details 2
Residential mortgage loans in process of foreclosure, number of loans | integer	10	10	6
Residential mortgage loans in process of foreclosure, current balance | $	$ 694,509	$ 791,944	$ 330,548

5. Loans, Allowance for Loan 32

5. Loans, Allowance for Loan Losses and Credit Quality (Details 3) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Allowance for loan losses, Beginning balance	$ 5,438,099	$ 5,278,445	$ 5,278,445
Charge-offs	(300,596)	(191,407)	(582,141)
Recoveries	23,717	21,402	91,795
Provisions (credit)	180,000	150,000	650,000
Allowance for loan losses, Ending balance	5,341,220	5,258,440	5,438,099
Allowance for loan losses evaluated for impairment, Individually	124,986	200,600	220,673
Allowance for loan losses evaluated for impairment, Collectively	5,216,234	5,057,840	5,217,426
Allowance for loan losses	5,341,220	5,258,440	5,438,099
Loans evaluated for impairment, Individually	6,341,007	1,544,075	5,781,288
Loans evaluated for impairment, Collectively	497,692,551	484,178,170	497,083,363
Total Loans	504,033,558	485,722,245	502,864,651
Commercial and industrial
Allowance for loan losses, Beginning balance	675,687	726,848	726,848
Charge-offs	(88,894)	(21,024)	(20,000)
Recoveries	5,014	7,141	27,051
Provisions (credit)	74,853	6,808	(58,212)
Allowance for loan losses, Ending balance	666,660	719,773	675,687
Allowance for loan losses evaluated for impairment, Individually	0	0	0
Allowance for loan losses evaluated for impairment, Collectively	666,660	719,773	675,687
Allowance for loan losses	666,660	719,773	675,687
Loans evaluated for impairment, Individually	185,012	48,385	98,806
Loans evaluated for impairment, Collectively	76,783,876	69,016,600	77,011,941
Total Loans	76,968,888	69,064,985	77,110,747
Commercial Real Estate
Allowance for loan losses, Beginning balance	2,674,029	2,496,085	2,496,085
Charge-offs	(121,000)	(160,207)	(160,207)
Recoveries	0	0	230
Provisions (credit)	113,675	185,243	337,921
Allowance for loan losses, Ending balance	2,666,704	2,521,121	2,674,029
Allowance for loan losses evaluated for impairment, Individually	3,528	79,200	69,015
Allowance for loan losses evaluated for impairment, Collectively	2,663,176	2,441,921	2,605,014
Allowance for loan losses	2,666,704	2,521,121	2,674,029
Loans evaluated for impairment, Individually	1,605,948	807,282	1,306,057
Loans evaluated for impairment, Collectively	208,529,788	204,333,205	205,738,170
Total Loans	210,135,736	205,140,487	207,044,227
Residential Real Estate - 1st Lien
Allowance for loan losses, Beginning balance	1,460,547	1,369,757	1,369,757
Charge-offs	(33,072)	(4,735)	(159,533)
Recoveries	8,858	6,236	26,826
Provisions (credit)	(28,532)	(58,463)	223,497
Allowance for loan losses, Ending balance	1,407,801	1,312,795	1,460,547
Allowance for loan losses evaluated for impairment, Individually	120,264	3,900	125,305
Allowance for loan losses evaluated for impairment, Collectively	1,287,537	1,308,895	1,335,242
Allowance for loan losses	1,407,801	1,312,795	1,460,547
Loans evaluated for impairment, Individually	4,277,541	466,328	4,075,666
Loans evaluated for impairment, Collectively	162,157,842	162,462,919	164,108,469
Total Loans	166,435,383	162,929,247	168,184,135
Residential Real Estate Jr Lien
Allowance for loan losses, Beginning balance	316,982	371,176	371,176
Charge-offs	(24,000)	0	(118,359)
Recoveries	435	60	465
Provisions (credit)	(4,125)	(782)	63,700
Allowance for loan losses, Ending balance	289,292	370,454	316,982
Allowance for loan losses evaluated for impairment, Individually	1,194	117,500	26,353
Allowance for loan losses evaluated for impairment, Collectively	288,098	252,954	290,629
Allowance for loan losses	289,292	370,454	316,982
Loans evaluated for impairment, Individually	272,506	222,080	300,759
Loans evaluated for impairment, Collectively	45,187,212	41,598,695	44,956,103
Total Loans	45,459,718	41,820,775	45,256,862
Consumer
Allowance for loan losses, Beginning balance	43,303	83,973	83,973
Charge-offs	(33,630)	(5,441)	(124,042)
Recoveries	9,410	7,965	37,223
Provisions (credit)	25,079	(25,175)	46,149
Allowance for loan losses, Ending balance	44,162	61,322	43,303
Allowance for loan losses evaluated for impairment, Individually	0	0	0
Allowance for loan losses evaluated for impairment, Collectively	44,162	61,322	43,303
Allowance for loan losses	44,162	61,322	43,303
Loans evaluated for impairment, Individually	0	0	0
Loans evaluated for impairment, Collectively	5,033,833	6,766,751	5,268,680
Total Loans	5,033,833	6,766,751	5,268,680
Unallocated
Allowance for loan losses, Beginning balance	267,551	230,606	230,606
Charge-offs	0	0	0
Recoveries	0	0	0
Provisions (credit)	(950)	42,369	36,945
Allowance for loan losses, Ending balance	266,601	272,975	267,551
Allowance for loan losses evaluated for impairment, Individually	0	0	0
Allowance for loan losses evaluated for impairment, Collectively	266,601	272,975	267,551
Allowance for loan losses	$ 266,601	$ 272,975	$ 267,551

5. Loans, Allowance for Loan 33

5. Loans, Allowance for Loan Losses and Credit Quality (Details 4) - USD ($)	3 Months Ended				12 Months Ended
	Mar. 31, 2018		Mar. 31, 2017		Dec. 31, 2017
Recorded Investment With an allowance recorded	$ 885,708		$ 621,562		$ 1,149,525
Unpaid Principal Balance With an allowance recorded	1,068,099		721,206		1,356,798
Related Allowance With an allowance recorded	124,986		200,600		220,673
Average Recorded Investment With an allowance recorded	1,111,789	[1]	668,918	[2]	1,077,963
Interest income recognized With an allowance recorded	7,774	[1]			29,662
Recorded Investment With no related allowance recorded	5,480,445		922,513		4,655,956
Unpaid Principal Balance With no related allowance recorded	6,471,199		1,056,133		5,158,680
Average Recorded Investment With no related allowance recorded	4,085,445	[1]	1,056,492	[2]	3,227,525
Interest income recognized With no related allowance recorded	35,188	[1]			460,524
Recorded Investment allowance recorded	6,366,153		1,544,075		5,805,481
Unpaid Principal Balance allowance recorded	7,539,298		1,777,339		6,515,478
Related Allowance allowance recorded	124,986		200,600		220,673
Average Recorded Investment Allowance recorded	5,197,234	[1]	1,725,410	[2]	4,305,488
Interest income recognized	42,962	[1]			490,186
Commercial and industrial
Recorded Investment With no related allowance recorded	185,012		48,385		98,806
Unpaid Principal Balance With no related allowance recorded	450,039		62,498		136,590
Average Recorded Investment With no related allowance recorded	103,193	[1]	48,385	[2]	75,868
Interest income recognized With no related allowance recorded	0	[1]			72,426
Commercial Real Estate
Recorded Investment With an allowance recorded	83,645		346,444		204,645
Unpaid Principal Balance With an allowance recorded	225,681		379,243		225,681
Related Allowance With an allowance recorded	3,528		79,200		69,015
Average Recorded Investment With an allowance recorded	183,567	[1]	283,351	[2]	210,890
Interest income recognized With an allowance recorded	0	[1]			0
Recorded Investment With no related allowance recorded	1,523,166		460,838		1,102,859
Unpaid Principal Balance With no related allowance recorded	1,658,923		508,058		1,226,040
Average Recorded Investment With no related allowance recorded	1,316,216	[1]	464,038	[2]	1,105,030
Interest income recognized With no related allowance recorded	4,064	[1]			237,792
Residential real estate - 1st lien
Recorded Investment With an allowance recorded	793,881		53,038		798,226
Unpaid Principal Balance With an allowance recorded	834,267		57,032		837,766
Related Allowance With an allowance recorded	120,264		3,900		125,305
Average Recorded Investment With an allowance recorded	751,122	[1]	162,500	[2]	646,799
Interest income recognized With an allowance recorded	7,682	[1]			29,262
Recorded Investment With no related allowance recorded	3,507,912		413,290		3,300,175
Unpaid Principal Balance With no related allowance recorded	3,923,460		485,577		3,641,627
Average Recorded Investment With no related allowance recorded	2,496,646	[1]	544,069	[2]	1,930,108
Interest income recognized With no related allowance recorded	31,124	[1]			133,732
Residential real estate - Jr lien
Recorded Investment With an allowance recorded	8,182		222,080		146,654
Unpaid Principal Balance With an allowance recorded	8,151		284,931		293,351
Related Allowance With an allowance recorded	1,194		117,500		26,353
Average Recorded Investment With an allowance recorded	177,100	[1]	$ 223,067	[2]	220,274
Interest income recognized With an allowance recorded	92	[1]			400
Recorded Investment With no related allowance recorded	264,355				154,116
Unpaid Principal Balance With no related allowance recorded	438,777				154,423
Average Recorded Investment With no related allowance recorded	169,390	[1]			116,519
Interest income recognized With no related allowance recorded	$ 0	[1]			$ 16,574
[1]	For the three months ended March 31, 2018
[2]	For the three months ended March 31, 2017

5. Loans, Allowance for Loan 34

5. Loans, Allowance for Loan Losses and Credit Quality (Details 5) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Group A	$ 485,291,247	$ 482,463,948	$ 470,083,932
Group B	5,720,502	5,547,642	4,300,989
Group C	13,021,809	14,853,061	11,337,324
Total Loans	504,033,558	502,864,651	485,722,245
Commercial and industrial
Group A	74,829,100	73,352,768	66,610,036
Group B	1,139,008	617,526	1,709,910
Group C	1,000,780	3,140,453	745,039
Total Loans	76,968,888	77,110,747	69,064,985
Commercial Real Estate
Group A	196,906,148	194,066,034	194,682,293
Group B	4,334,637	4,609,847	2,423,387
Group C	8,894,951	8,368,346	8,034,807
Total Loans	210,135,736	207,044,227	205,140,487
Residential real estate - 1st lien
Group A	163,625,382	165,089,999	160,911,670
Group B	210,428	282,671	0
Group C	2,599,573	2,811,465	2,017,577
Total Loans	166,435,383	168,184,135	162,929,247
Residential real estate - Jr lien
Group A	44,896,784	44,687,951	41,115,085
Group B	36,429	37,598	167,692
Group C	526,505	531,313	537,998
Total Loans	45,459,718	45,256,862	41,820,775
Consumer
Group A	5,033,833	5,267,196	6,764,848
Group B	0	0	0
Group C	0	1,484	1,903
Total Loans	$ 5,033,833	$ 5,268,680	$ 6,766,751

5. Loans, Allowance for Loan 35

5. Loans, Allowance for Loan Losses and Credit Quality (Details 6)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)integer	Mar. 31, 2017USD ($)integer	Dec. 31, 2017USD ($)integer
Commercial and industrial
Number of Contracts modified as TDRs | integer		1
Pre-Modification Outstanding Recorded Investment		$ 41,857
Post- Modification Outstanding Recorded Investment		$ 57,418
Residential real estate - 1st lien
Number of Contracts modified as TDRs | integer	5		4
Pre-Modification Outstanding Recorded Investment	$ 682,791		$ 256,353
Post- Modification Outstanding Recorded Investment	$ 785,309		$ 287,385

5. Loans, Allowance for Loan 36

5. Loans, Allowance for Loan Losses and Credit Quality (Details 7)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)integer	Mar. 31, 2017USD ($)integer	Dec. 31, 2017USD ($)integer
Number of Contracts | integer		2
Recorded Investment | $		$ 118,775
Residential Real Estate - 1st Lien
Number of Contracts | integer	1	1	1
Recorded Investment | $	$ 87,696	$ 64,218	$ 87,696
Residential Real Estate Jr Lien
Number of Contracts | integer		1
Recorded Investment | $		$ 54,557

5. Loans, Allowance for Loan 37

5. Loans, Allowance for Loan Losses and Credit Quality (Details 8) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Specific Allocation	$ 124,986	$ 197,605	$ 83,100

6. Goodwill and Other Intangi38

6. Goodwill and Other Intangible Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for the core deposit intangible	$ 0	$ 68,175

7. Fair Value (Details)

7. Fair Value (Details) - Fair Value Level 2 - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Assets: (market approach)
U.S. GSE debt securities	$ 16,885,190	$ 17,158,742	$ 17,310,403
Agency MBS	16,681,943	16,613,337	13,557,523
Other investments	5,126,932	4,678,574	2,984,645
Total	$ 38,694,065	$ 38,450,653	$ 33,852,571

7. Fair Value (Details 1)

7. Fair Value (Details 1) - Fair Value Level 2 - USD ($)		Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Assets: (market approach)
MSRs (1)	[1]	$ 1,055,840	$ 1,083,286	$ 1,182,233
Impaired loans, net of related allowance		80,118	135,630	420,962
OREO		$ 284,235	$ 284,235	$ 561,979
[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 as of the balance sheet dates presented.

7. Fair Value (Details 2)

7. Fair Value (Details 2) - USD ($)		Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Carrying Amount
Financial assets: (Dollars in Thousands)
Cash and cash equivalents		$ 41,470	$ 42,654	$ 32,789
Securities HTM		47,900	48,825	53,880
Securities AFS		38,694	38,451	33,853
Restricted equity securities		1,794	1,704	2,426
Loans and loans held-for-sale
Commercial & industrial		76,261	76,394	68,306
Commercial real estate		207,358	204,260	202,504
Residential real estate - 1st lien		165,298	167,671	161,525
Residential real estate - Jr. lien		45,147	44,916	41,427
Consumer		4,987	5,223	6,702
MSRs	[1]	1,056	1,083	1,182
Accrued interest receivable		2,212	2,052	2,063
Deposits
Deposits, Other deposits		513,029	509,686	491,435
Deposits, Brokered deposits		45,201	50,949	40,985
Short-term borrowings				10,000
Long-term borrowings		3,550	3,550	1,550
Repurchase agreements		30,247	28,648	27,747
Capital lease obligations		354	382	459
Subordinated debentures		12,887	12,887	12,887
Accrued interest payable		110	101	96
Fair Value Level 1
Financial assets: (Dollars in Thousands)
Cash and cash equivalents		41,470	42,654	32,789
Securities HTM		0	0	0
Securities AFS		0	0	0
Restricted equity securities		0	0	0
Loans and loans held-for-sale
Commercial & industrial		0	0	0
Commercial real estate		0	0	0
Residential real estate - 1st lien		0	0	0
Residential real estate - Jr. lien		0	0	0
Consumer		0	0	0
MSRs	[1]	0	0	0
Accrued interest receivable		0	0	0
Deposits
Deposits, Other deposits		0	0	0
Deposits, Brokered deposits		0	0	0
Short-term borrowings				0
Long-term borrowings		0	0	0
Repurchase agreements		0	0	0
Capital lease obligations		0	0	0
Subordinated debentures		0	0	0
Accrued interest payable		0	0	0
Fair Value Level 2
Financial assets: (Dollars in Thousands)
Cash and cash equivalents		0	0	0
Securities HTM		47,644	48,796	54,853
Securities AFS		38,694	38,451	33,853
Restricted equity securities		1,794	1,704	2,426
Loans and loans held-for-sale
Commercial & industrial		0	0	48
Commercial real estate		80	136	728
Residential real estate - 1st lien		0	0	462
Residential real estate - Jr. lien		0	0	105
Consumer		0	0	0
MSRs	[1]	1,453	1,337	1,302
Accrued interest receivable		2,212	2,052	2,063
Deposits
Deposits, Other deposits		511,229	508,407	490,746
Deposits, Brokered deposits		45,154	50,926	40,986
Short-term borrowings				9,998
Long-term borrowings		3,157	3,191	1,389
Repurchase agreements		30,247	28,648	27,747
Capital lease obligations		354	382	459
Subordinated debentures		12,814	12,832	12,846
Accrued interest payable		110	101	96
Fair Value Level 3
Financial assets: (Dollars in Thousands)
Cash and cash equivalents		0	0	0
Securities HTM		0	0	0
Securities AFS		0	0	0
Restricted equity securities		0	0	0
Loans and loans held-for-sale
Commercial & industrial		76,248	76,799	68,936
Commercial real estate		206,326	204,697	203,903
Residential real estate - 1st lien		162,774	169,205	163,536
Residential real estate - Jr. lien		44,630	45,207	41,822
Consumer		5,080	5,425	6,953
MSRs	[1]	0	0	0
Accrued interest receivable		0	0	0
Deposits
Deposits, Other deposits		0	0	0
Deposits, Brokered deposits		0	0	0
Short-term borrowings				0
Long-term borrowings		0	0	0
Repurchase agreements		0	0	0
Capital lease obligations		0	0	0
Subordinated debentures		0	0	0
Accrued interest payable		0	0	0
Fair Value
Financial assets: (Dollars in Thousands)
Cash and cash equivalents		41,470	42,654	32,789
Securities HTM		47,644	48,796	54,853
Securities AFS		38,694	38,451	33,853
Restricted equity securities		1,794	1,704	2,426
Loans and loans held-for-sale
Commercial & industrial		76,248	76,799	68,984
Commercial real estate		206,406	204,833	204,631
Residential real estate - 1st lien		162,774	169,205	163,998
Residential real estate - Jr. lien		44,630	45,207	41,927
Consumer		5,080	5,425	6,953
MSRs	[1]	1,453	1,337	1,302
Accrued interest receivable		2,212	2,052	2,063
Deposits
Deposits, Other deposits		511,229	508,407	490,746
Deposits, Brokered deposits		45,154	50,926	40,986
Short-term borrowings				9,998
Long-term borrowings		3,157	3,191	1,389
Repurchase agreements		30,247	28,648	27,747
Capital lease obligations		354	382	459
Subordinated debentures		12,814	12,832	12,846
Accrued interest payable		$ 110	$ 101	$ 96
[1]	Reported fair value represents all MSRs for loans serviced by the Company, regardless of carrying amount.

8. Loan Servicing (Details)

8. Loan Servicing (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Transfers and Servicing of Financial Assets [Abstract]
Balance at beginning of year	$ 1,083,286	$ 1,210,695	$ 1,210,695
Mortgage servicing rights capitalized	20,494	28,466	109,297
Mortgage servicing rights amortized	(47,940)	(56,928)	(236,706)
Balance at end of period	$ 1,055,840	$ 1,182,233	$ 1,083,286